LIXIL Group
Corporate Responsibility Report 2016

Contents
LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
Environment

03 Our Approach

35 Environment

51 Customers & Supply Chain

04 Message

36 Environmental Management

52 Responsible Supply Chain Management

06 Corporate Responsibility (CR) Strategy

38 Greenhouse Gas Reduction

54 Product Safety & Quality

07 CR Management Structure

40 Sustainable Use Of Resources

57 Customer Satisfaction

08 Material Issues

42 Performance

10 Key Performance Indicators

15 Three Strategic Pillars
16 Global Sanitation & Hygiene

46 Society

58 Reporting
59 Scope Of Reporting

47 Human Rights

60 CR Library

48 Stakeholder Engagement

61 Global Reporting Initiative (GRI) Index

18 Water Conservation &Society
Customers & Supply Chain
Reporting

Environmental Sustainability
20 Diversity & Inclusion

22 Our People
23 A Fair & Rewarding Workplace

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

26 Work Safety & Well-being
28 Talent Development
30 Diversity & Equal Opportunity
32 Performance
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LIXIL Group Corporate Responsibility Report 2016

■ Reporting period■ Applicable organizations

FY2015 (April 1, 2015 to March 31, 2016)

CR activities of LIXIL Group Corporation, as well as LIXIL Corporation andother consolidated subsidiaries are covered in the report.
The scope is provided in footnotes for matters that have narrower
coverage.

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Message
Corporate Responsibility (CR) Strategy
CR Management Structure
Material Issues
Key Performance Indicators

Three Strategic Pillars
Our People
Environment
Society
Customers & Supply Chain
Reporting

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03

LIXIL Group Corporate Responsibility Report 2016

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

Messagebalance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in thesecond half of this century.
In order to contribute to this carbon-neutral future, LIXIL Group created a new Environmental
Vision. By 2030, the positive environmental contribution from our products and services will surpass the

LIXIL Group

Corporateenvironmental footprint from our entire business process, thus achieving a NETZERO environmental
footprint. We will achieve this through innovative technologies, such as low-carbon and water-efficient

Responsibility

Message from the CEO

Report 2016

As a global citizen, we are committed to creating positive impact
to the society through our responsible business operations andOur Approachsustainable innovations.
I have always been motived by the opportunity to make acontribution to society, and it was this passion that moved me to

Message
Corporate Responsibility (CR) Strategy
CR Management Structure
Material Issues
Key Performance Indicators

Three Strategic Pillars
Our People
Environment
Society

become an entrepreneur and corporate leader. I believe that astrong commitment to corporate responsibility is core to LIXIL's
long-term success, and therefore that our CR strategy be inReporting

The LIXIL Group has been a signatory of the United Nations
Global Compact (UNGC) initiative since July 2013. In addition to
supporting and implementing the ten principles of the UNGC
in the areas of human rights, labor, the environment and anti-

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engaging on global issues leveraging our global network, expertise and experience, and contributing to
improving people's comfort and lifestyles.
Director, Representative Executive Officer, President & Chief Executive Officer (CEO),LIXIL Group Corporation
Kinya Seto

Message from the Corporate Responsibility (CR)Committee Chairperson
As a global citizen, we are more engaged on social andgoals include aims such as to "ensure healthy lives and promote wellbeing for all at all ages" and "ensure

environmental issues today than ever before, and we areaccess to sanitation for all".

committed to creating a positive impact on society through our

For example, we have been working to tackle the global sanitation and hygiene crisis. Even today, 2.4

responsible business operations and sustainable innovations.
In the fiscal year ended March 2016, we updated our

globally. To help resolve this issue, we developed our innovative SATO (safe toilet) products in 2013

corporate responsibility (CR) strategy to ensure that it is truly

and have provided access to safe and hygienic sanitation to over 5 million people in over 10 countries.

global in scope, covers broader issues, and includes bolder

To accelerate our efforts, we launched a dedicated business unit in 2016 with the target of enablingcommitments. The new strategy was developed, and material

improved access to sanitation and hygiene for 100 million people by the year 2020.

CR issues were selected, by evaluating current global needs andprotection, to be critical to today's business agenda. As a 'Living Technology' company, ourand services.

LIXIL Group Corporate Responsibility Report 2016

experience, and contributing to improving people's comfort and lifestyles. We are committed to

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

environmental strategy pledges that LIXIL will provide environmental solutions through our products
04

We are committed to engaging on global issues leveraging our global network, expertise andcorruption, we are also taking action towards accomplishing

We also consider environmental challenges, such as water conservation and environmental
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procurement, production, product use and disposal.

alignment with our business strategy.

billion people - one in every three people - are estimated to be living without access to proper sanitation
Customers & Supply Chaintechnology, and also by reducing environmental impact in every process of the business, including

To mitigate global climate change, the Paris Agreement set a long-term ambition to achieve a

stakeholders' expectations and identifying the areas where thoseneeds intersect with LIXIL's expertise and business strategy.
We believe that corporate responsibility is core to LIXIL's
long-term success, and therefore our CR strategy must align withour business strategy. With this belief, our CR committee

structure has been renewed to reflect the operating model established in the previous fiscal year. Under
the new structure, CR priority issues are owned by their respective executive leaders, which ensures

The Ten Principles

swifter action and tighter integration of business and CR strategy.

LIXIL Group

Corporate
Responsibility
Report 2016

Principle 1: Businesses should support and respect theprotection of internationally proclaimed
human rights; andAs we strive to become the world's most valued, innovative and trusted living technology company,
there is still more that we can and must do to make positive, lasting contributions to the global
community. Under our revamped CR strategy, we will demonstrate our long-term commitment toPrinciple 2: make sure that they are not complicit inhuman rights abuses.

tackling global issues.

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

Executive Officer and Senior Managing Director, Public Affairs, Investor Relations, External Affairs,
Corporate Responsibility,
LIXIL Group Corporation

Our Approach
Message
Corporate Responsibility (CR) Strategy
CR Management Structure
Material Issues
Key Performance Indicators

Three Strategic Pillars

Principle 4: the elimination of all forms of forced andcompulsory labour;

Jin Song Montesano

Principle 5: the effective abolition of child labour; andCommitment to the UN Global Compact

Principle 6: the elimination of discrimination in respectof employment and occupation.

The LIXIL Group signed the United Nations Global Compact (UNGC) in

Principle 7: Businesses should support a precautionary
approach to environmental challenges;

July 2013 in full support with the principles set out in the framework.
Our corporate philosophy is to contribute to improving people's

Principle 8: undertake initiatives to promote greater
environmental responsibility; andcomfort and lifestyles. To fulfill that aim through our operational
activities, we are driving a range of R&D and various initiatives to help

Our People

Principle 9: encourage the development and diffusion ofenvironmentally friendly technologies.

resolve global sanitation and hygiene problems as well as other social andenvironmental issues.

Environment

To meet and exceed society's expectations for the LIXIL Group,

Principle10: Businesses should work against corruption in
all its forms, including extortion and bribery.

we must take active leadership as a comprehensive living and housing
Societysolutions company. We will not only put the UNGC's 10 Principles into
practice, but also assist the UN efforts towards achieving the Sustainable Development Goals by

Customers & Supply Chain

providing our expertise in areas of sanitation to help create a safe living space for all.

United Nations Global Compact >United Nations Sustainable Development Goals >Reporting

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LIXIL Group Corporate Responsibility Report 2016

Corporate Responsibility (CR) Strategy

3.Diversity & Inclusion
Embrace the diversity of people in society and within LIXIL. This includes enhancing
quality of life and wellbeing for the elderly and the physically disabled through LIXIL

LIXIL Group

Corporate
Responsibility
Report 2016

products and services, as well as harnessing the intelligence and perspectives of LIXIL's
LIXIL is committed to enhancing living spaces through innovative responsible engagements andinitiatives around the world.

diverse workforce, as an engine for growth and innovation.
more >At LIXIL, we believe that our living spaces - the environment where we live, work and play - arecritical to our daily lives and wellbeing. As a result, we are committed to ensuring that the growth ofour businesses contributes to improving the quality of people's lives, by delivering safe and comfortable

Our Approachproducts and services through responsible and sustainable innovations. Leveraging the scale andexpertise of our four core technology business units, we are focused on making a positive impact in the

Message
Corporate Responsibility (CR) Strategy

communities in which we operate and on matters that require urgent action:
Process of identifying the Three Strategic Pillars >CR Management Structure
Material Issues
Key Performance Indicators

Three Strategic Pillars
Our People

1.Global Sanitation & Hygiene
Promote and enable access to safe and hygienic sanitation practices, especially for
women and girls, while preventing the harmful transmission of diseases for children.
more >

Environment
Society
Customers & Supply Chain
Reporting

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2.Water Conservation & Environmental Sustainability
Conserve water, energy, and other natural resources utilized in and by LIXIL products
and services, including in the supply chain, production, distribution and during end use.
more >

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LIXIL Group Corporate Responsibility Report 2016

View PDF >CR Management Structure
LIXIL Group

Corporate
Responsibility
Report 2016

LIXIL's Corporate Responsibility (CR) Committee was established to align with the technology business
operating model that was established in June 2015. The CR Committee succeeds the CSR Promotion
Committee, which had been in place since 2012, and works to ensure swifter action in response to
economic, environmental and social sustainability issues.
Management leadership and coordination with the technology businesses is critical to achieve

Our Approach

prompt and appropriate actions. Accordingly, Executive Officers in charge of the corporate functions,
namely HR, Legal, Public Affairs, Finance, Quality, Environment, Technology, and R&D, as well as

Message
Corporate Responsibility (CR) Strategy
CR Management Structure
Material Issues
Key Performance Indicators

Three Strategic Pillars
Our People
Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

representatives from each of the technology businesses have been appointed as members of the CR
Committee.
The outcomes from CR Committee meetings are presented to LIXIL Group's Board of Directors andExecutive Officers Committee for final approval, and decisions are immediately communicated downfrom the Executive Officers to the respective functional divisions and swiftly executed.

Material Issues

Category

LIXIL Group

Corporate
Responsibility
Report 2016

List of LIXIL Group's Material Issues

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

Corporate Responsibility (CR) Strategy
CR Management Structure
Material Issues

As a global company, maintaining strong corporate

Compliance*is also an issue that has become of increased interest to
our shareholders with the adoption of Japan's Corporate

Risk management*

Governance Code in 2015.
While expanding our global reach, our corporate

Information security

Material Issues Selection Process

our efforts to strengthen our corporate governance,compliance, and risk management systems.

Transparent political relations

Human rights due diligence*

Our People
Diversity and equal opportunity*

Environment

Occupational health and safety*

Society

Employee hiring and retention
Labor Practice

Customers & Supply Chain

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LIXIL Group Corporate Responsibility Report 2016

Labor-management relationshipWorking environment
Talent development

ReportingLocal job creation

Quality andSatisfaction

accounting irregularities at an overseas subsidiary.

Intellectual property strategy

Three Strategic Pillars
Human Rights

governance was put to test in 2015, when we discovered
To prevent recurrence of such incident and solidify
our operating foundation, we must further advance

Fair business

Key Performance Indicators

governance practices is of critical importance to LIXIL. It

Taxation strategy

Anti-corruption*
Fair Business
Practices

Background and Reason

Corporate governance*

Governance

Our Approach
Message

Material Issues*Highlights issues that require focusedpriority action

Product safety*
Customer satisfaction

Corruption is detrimental to the development of asustainable society. Global scrutiny towards bribery andfraud is intensifying, and extraterritorial application ofpenalties is increasing rapidly.
With the UN's adoption of Guiding Principles on
Business and Human Rights clarifying the responsibilityof companies to uphold human rights, protecting andrespecting human rights both within the LIXIL Group andacross its entire sphere of business influence have becomea greater priority.
With global expansion, our business and organizational
structure have become more complex and diverse. We
therefore need to grasp and manage appropriately risks
related to occupational health and safety across theGroup.
Diversity is vital to innovation. Companies worldwide are
increasingly focused on attracting and retaining highcaliber employees. We are actively promoting diversity inline with the LIXIL Diversity Declaration, but we need topush ahead further in pursuing this cause.
Product safety is a top priority for the LIXIL Group asa manufacturer. Serious product defects can cause
customer anxiety and greatly affect the reliability andreputation of our products.

Category

Greenhouse gas reduction*

LIXIL Group

Corporate

Material Issues*Highlights issues that require focusedpriority action

Water conservation*
Environment

Responsibility

Sustainable use of raw materials*

Report 2016

Environmental management

Background and Reason
The adoption of the Paris Agreement to combat
climate change by 196 parties has shaped a clear
direction towards future decarbonization. Global
water shortage is intensifying and we need to do
more to protect water, energy and other natural
resources throughout the LIXIL Group value chain,from procurement to production, distribution, productuse and disposal.
Stakeholder interest in responsible suppliermanagement has grown in line with the developmentof international standards on sustainable procurement.

Our Approach
Supply Chain

Supply chain management*

Message

Europe, North and South America, and the Middle
East, and we need to do more to promote responsible
supplier management.

Corporate Responsibility (CR) Strategy
CR Management Structure
Material Issues

Stakeholder engagement andcollaboration*

Key Performance Indicators

Three Strategic Pillars
Our People
Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

The LIXIL Group's manufacturing footprint expands
across Japan, China and the Asia-Pacific, as well as,

Stakeholder
Engagement

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

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

Key Performance Indicators

2. Strengthen training by regions and corporate positions
・KPI

LIXIL Group

Corporate
Responsibility
Report 2016

Action plans, KPIs and targets for specific material issues are determined as below. We will report ourprogress and results on each issue on this website. The below provides an overview of the main issues.
For more details, please see the report pages for each activity.

Group-wide:
1. Basic training and commitment to Group Code of Conduct (%)
2. Implementation of training by regions and corporate positions (%)

Target for FY2016

Target for FY2017

・Inspect high-risk regions and implement a

・Build a system for compliance education andcompliance system and training plan, based on the・Develop training programs by regions andcorporate positions, and a mechanism to monitor
the training record.

Our Approach
Message
Corporate Responsibility (CR) Strategy

Enhance group governance to maximize our corporate values.

Corporate governance

Key Performance Indicators

Three Strategic Pillars

・TargetEstablish global-standard governance・Action plan

Establish a Group governance system

・KPI

Coverage of improved governance rules and procedures (%)

Our People
Environment

Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

regions and corporate positions.

Risk management
・TargetEstablish and operate a Group-wide enterprise risk management system

・Action plan

stablish a risk management system to prevent crises

・KPI

Coverage of the risk management system across Group companies (%)

Target for FY2016

Target for FY2017

・Clarify risk definitions to ensure common

・Establish a set of systems, processes and rules tounderstanding throughout the Group.

Target for FY2016

Target for FY2017

・Implement Corporate Governance Guidelines and・Set clear rules and procedures for business boards

commitments.

Societyand commitment to Group Code of Conduct.
・Ensure 100% implementation rate for training by

Governance

CR Management Structure
Material Issues

training.
・Ensure 100% implementation rate for basic training

observations.

identify, analyze, evaluate and respond to significant
risks (Boundary: all Group companies.) .

and other committee groups.

・Appoint independent outside directors as chairsof the Nomination, Compensation and Audit

・Ensure 100% coverage of improved governancerules and procedures.

Committees.

Compliance・TargetDevelop comprehensive and effective compliance structure across the Group・Action plan

Strengthen compliance-related education and training
1. Develop training for Group Code of Conduct and ensure each employees'commitment

Intellectual property (IP) strategy
・TargetMaximize the value of the Group's intellectual property by operating a
streamlined global IP governance system

・Action plan

Extend the global reach and functionality of the IP Committee (IPC)・KPI

Plan and implement ways to reduce risks relating to our competitors, by
evaluating and quantifying the risk to our IP from competitor IP rights, andevaluating the LIXIL Group IP portfolio

LIXIL Group

Target for FY2016

Target for FY2017

・Convene IPC meetings to decide how to drive

・Build a system to monitor IP creation, maintenanceforward the Group-wide IP management.

Report 2016
Our Approach
Message

Detailed action plan, KPI and target for :Governance >Fair Business Practices
Engage all employees and officers in our business operations with a high standard of corporate ethics.

Corporate Responsibility (CR) Strategy
CR Management Structure
Material Issues

Anti-corruption

Our People
Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

Human rights due diligence・TargetAppropriately manage human rights considerations that fall within the scope of ouroperational influence across our entire value chain

・Action plan

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

・KPI

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

Target for FY2016

Target for FY2017

・Ensure full implementation across the Group.

・Ensure full implementation across the Group.

Detailed activities for :Key Performance Indicators

Three Strategic Pillars

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

as well as external IP disputes and IP contractual
relationships.

Corporate
Responsibility

and application at individual technology businesses,

Human Rights

・TargetDevelop an effective anti-corruption mechanism across the Group・Action plan・Establish a Group Compliance Policy and Group Compliance Guideline
・Introduce education and training on compliance

・KPI

Group-wide:・Compliance-related education and training ratio (%)

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

Target for FY2016

Target for FY2017

・Under Group Code of Conduct, create Group-wide

・Reduce number of compliance violation incidents topolicies and guidelines on fair business.

Detailed activities for :Compliance >zero.

Working environment
・TargetBuild a worker-friendly environment for all employees

・Action plan

Conduct a regular employee awareness survey across the Group・KPI

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

Target for FY2016

Target for FY2017

・Ensure full implementation of action plans derived

・Ensure full implementation of action plans derived

from the 2015 global employee awareness survey

from the 2017 global employee awareness survey

across the Group (100%).

across the Group (100%).

Diversity and equal opportunity

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Message
Corporate Responsibility (CR) Strategy
CR Management Structure
Material Issues

Quality and Satisfaction

・TargetSecure highly competent people by respecting diversity across the Group・Action plan

Promote the active participation of women in the workplace

・KPI

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

Target for FY2016

Target for FY2017

・Over 30% of hires. (As of March 2016)

・Over 30% of hires. (As of March 2016)

Occupational health and safety
・TargetEstablish an occupational health and safety management system across the Group・Action plan

Build a common Group Environment, Occupational Health and Safety (EHS)
management system

・KPI

Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

・TargetEradicate product accidents

・Action plan

Make continuous improvements to the product quality management system

・KPI

Number of serious product accidents across the Group (#)

Target for FY2016

Target for FY2017

・Zero cases of serious product accidents across the・Maintain the number of serious product accidentsGroupacross the Group at zero・Extend product safety strategy by setting specific
KPI for each technology business

Detailed activities for :Target for FY2016

Target for FY2017

・Formulate Group-wide operational rules (EHS

・Extend the implementation of EHS management

manual, EHS emergency response guidelines, EHS

Our People

Product safety & Quality

Group-wide coverage of EHS management system (%)

Key Performance Indicators

Three Strategic Pillars

Strengthen relationships with customers through our products and services.

system to 95% across the Group.

governance inspection guidelines).

Detailed activities for :A Fair & Rewarding Workplace > Work Safety & Well-being > Talent Development > Diversity &Equal Opportunity > Performance >Product Safety & Quality > Customer Satisfaction >Environment
Contribute to a sustainable society through innovative products and services, and improving theenvironmental efficiencies over all operational processes.

Greenhouse gas reduction
・TargetPromote reduction in greenhouse gas emissions across the Group・Action plan

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

・KPI

Group-wide:
1. Benefits from CO2 emissions reduction achieved from the products and services
2. Levels of CO2 emissions across all operational processes

LIXIL Group

Corporate

Target for FY2016

Target for FY2017

・Target -1.6% compared to FY2015, in FY2016 to・In line with the CO2 emissions target for FY2016-20

achieve our new mid-term CO2 emissions target for(1.4 times more efficient than in FY2015), achieve

FY2016-20 (-8% v. FY2015).
*Above includes water resource conservation data (indirect
avoided emissions and actual emissions related to water use).

FY2016-20 (-8% v. FY2015).

Corporate Responsibility (CR) Strategy
CR Management Structure

Water conservation
・TargetPromote efficient use of water resources across the Group・Action plan

・Pursue more environment-conscious product design and sales expansion
strategies, taking into account the entire lifecycle of both products and services
・Improve efficient use of water resources

Material Issues
Key Performance Indicators

Three Strategic Pillars
Our People
Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

Promote sustainable use of resources across the Group, from procurement throughdisposal of raw materials

・Action plan

・Pursue more environment-conscious product design and sales expansion
strategies, taking into account the entire lifecycle of both products and services
・Improve waste recycling ratio

・KPI

Group-wide:
1. Benefits from CO2 emissions reduction achieved from the products and services
2. Levels of CO2 emissions across all operational processes*Above includes water resource conservation data (indirect avoided
emissions and actual emissions related to water use).

Report 2016

Message・Target・Target -3.2% compared to FY2015, in FY2017 toachieve our new mid-term CO2 emissions target for

Responsibility

Our Approach

our goal for FY2017 (1.14 times more efficient thanin FY2015).

Sustainable use of raw materials

・KPI

Group-wide:
1. Benefits from CO2 emissions reduction achieved from the products and services
2. Levels of CO2 emissions across all operational processes

Target for FY2016

Target for FY2017

・Target -1.6% compared to FY2015, in FY2016 to・In line with the CO2 emissions target for FY2016-20

achieve our new mid-term CO2 emissions target for(1.4 times more efficient than in FY2015), achieve

FY2016-20 (-8% v. FY2015).
*Above includes water resource conservation data (indirect
avoided emissions and actual emissions related to water use).

our goal for FY2017 (1.14 times more efficient thanin FY2015).
・Target -3.2% compared to FY2015, in FY2017 toachieve our new mid-term CO2 emissions target for
FY2016-20 (-8% v. FY2015).
*Above includes water resource conservation data (indirect avoided
emissions and actual emissions related to water use).

Target for FY2016

Target for FY2017

・Target -1.6% compared to FY2015, in FY2016 to・In line with the CO2 emissions target for FY2016-20

achieve our new mid-term CO2 emissions target for(1.4 times more efficient than in FY2015), achieve

FY2016-20 (-8% v. FY2015).
*Above includes water resource conservation data (indirect
avoided emissions and actual emissions related to water use).

our goal for FY2017 (1.14 times more efficient thanin FY2015).
・Target -3.2% compared to FY2015, in FY2017 toachieve our new mid-term CO2 emissions target for
FY2016-20 (-8% v. FY2015).
*Above includes water resource conservation data (indirect avoided
emissions and actual emissions related to water use).

Detailed activities for :Environmental Management > Greenhouse Gas Reduction > Sustainable Use Of Resources >Performance >Supply Chain
Through responsible management of the overall supply chain, deliver a stable portfolio of products

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Message
Corporate Responsibility (CR) Strategy
CR Management Structure
Material Issues
Key Performance Indicators

Three Strategic Pillars

and fulfill stakeholder accountability.

Supply chain management

Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

・Extend the reach of currently implemented

・Hold at least ore annual dialogue with each groupmechanisms and encourage more sophisticated andof stakeholders (stakeholders, employees, business

effective engagement initiatives.

partners, local residents, end users, suppliers, etc)

・TargetIdentify supplier's CR risk, and establish a mechanism to respond accordingly・Action plan

Extend our Japanese CR procurement process across the Group・TargetCreate products that contribute to the environment

・KPI

Supplier monitoring coverage ratio (based on purchased amount) (%), andpercentage of suppliers which satisfy CR management standards (%)

・Action plan

Pursue product R&D to help resolve environmental issues

・KPI

Assessment of business plans for recycling timber waste

Target for FY2016

Target for FY2017

Target for FY2016

Target for FY2017

・Promote Group-wide awareness of the LIXIL Group's・Achieve supplier monitoring coverage ratio (based・Complete product quality and other technology

・Start building a pilot plant in preparation for

procurement strategy.
・Implement existing CR procurement process acrossthe Group.

on purchased amount) to 80% in Japan and 60%
outside Japan; ensure that 100% of suppliers satisfy
CR management standards.

verification.

commercialization.

・Conduct market research, and determine
commercialization strategy.

Detailed activities for :Our People

Society

Target for FY2017

R&D for solving social problems

Responsible Supply Chain Management >Environment

Target for FY2016

Stakeholder Engagement

Contribution to Global Sanitation & Hygiene
・TargetHelp improve global hygiene and sanitation through our business・Action plan

Launch and develop a business

・KPI

・Number of beneficiaries

Proactively engage with LIXIL's key stakeholders for better business management.

Stakeholder engagement and collaboration

Target for FY2016

Target for FY2017

・Form a solid operational platform for legal affairs,

・Generate 10.9 million beneficiaries by the end of

intellectual property, etc.

FY2017 in order to achieve our 2020 target of 100
million beneficiaries.

・TargetProactively engage with LIXIL's key stakeholders for better business management

・Action plan

Hold regular stakeholder engagement meetings, and disclose the content of thesemeetings

・KPI

Number of stakeholder meetings held across the Group (#). Meeting quality basedon meeting content

CR Activities (FY2012-2015):
Targets and Results >LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

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

Global Sanitation & Hygiene(JICA) and WaterAid. LIXIL is also a member of the Toilet Board Coalition, a wide-ranging global alliancethat aims to develop sustainable, scalable measures to tackle the sanitation crisis.
Given the immense size and complexity of the global sanitation issue, LIXIL is developing a
number of products to fit different markets, infrastructure and income levels, as well as deal with

LIXIL Group

Corporate
Responsibility

environmental constraints. Our primary solutions are the SATO (Safe Toilet) product series, alreadycommercially available, and the Micro Flush Toilet System and Green Toilet System, both currently under
LIXIL is committed to promoting and enabling access to safe and hygienic sanitation practices, especiallyfor women and girls, while preventing the harmful transmission of diseases for children.

Report 2016
Our Approach
Three Strategic Pillars

development. Each represents LIXIL's dedication to improving the quality of people's daily lives.
LIXIL has also established the Social Toilet Department to strengthen the framework behind
our commitment to resolving the global sanitation crisis through revolutionary products andsustainable businesses.

Background

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

An estimated 2.4 billion people – one out of every three in theworld today – live without access to proper sanitation. 950 million
still defecate in the open on a daily basis. These are figures with a

Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain
Reporting

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16

LIXIL Group Corporate Responsibility Report 2016devastating human cost: 800 children under five years of age are
estimated to die every day from diarrheal diseases caused by alack of clean water and sanitary living conditions.
The absence of safe, clean toilets is a particular threat towomen. Not only is it embarrassing for women and girls to
defecate outside, having to leave home or school to relieve
themselves increases the risk of assault. As a result, the lack ofsanitary toilets is one of the primary reasons young girls drop out of school when they reach puberty.
The impact of the sanitation crisis is felt throughout entire nations and regions, crippling
opportunities for growth and development. According to an Oxford Economics report on behalf of"Global Sanitation Solution" brochure >LIXIL, global economic losses from poor sanitation were estimated at US$223 billion in 2015, an increaseof more than 20 percent from five years earlier.

SATO:

The True Cost Of Poor Sanitation >Preventing the transmission of disease and odors,
and reducing open defecation

Activities

Having to defecate in the open, into a pit or over a pit latrine, exposes millions of people to odors and

LIXIL has pledged to provide better sanitation to 100 million people by 2020. In addition to committing

model created with funding from the Bill and Melinda Gates Foundation and launched in Bangladesh in

our own substantial corporate resources to this goal, we are at the forefront of public-private

2013.

partnership, teaming with such organizations as UNICEF, the Japan International Cooperation Agency

disease. To combat this problem, LIXIL has developed the SATO (Safe Toilet) series of products, the first

Users pour in less than 500 milliliters of water to flush away waste, after which an airtight,

counterweighted trap door quickly seals to block

How "Micro Flush Toilet System" Works

smells and flying insects. SATO products are safe forchildren, easy to clean and affordable. Each one is

LIXIL Group

Corporate
Responsibility

designed to suit the needs and preferences of users
in different regions. Already more than 1 million are
in place around the world, improving the lives of 5
million people.

Report 2016
How "SATO" Works

Our Approach

Green Toilet System:
Safety processing human waste into fertilizer

Three Strategic Pillars

The Green Toilet System safely processes human excrement into fertilizer and provides that value

Global Sanitation & Hygiene

to farmers through the creation of a viable business model. Solid and liquid wastes are separated toWater Conservation & Environmental
Sustainability

prevent odors and prepared for their subsequent conversion into fertilizer, with maintenance workers

Diversity & Inclusion

collecting the waste from different tanks behind the toilet and transporting it to a compost facility.
The Green Toilet System is aimed at communities with no water and sewage infrastructure, or

Our People
Environment
Society
Customers & Supply Chain
ReportingMicro Flush Toilet System:
Better management of water resources in urban environments
Using far less water per flush than a regular toilet, and recycling sewage water to assist the flow in
outside pipes, the Micro Flush Toilet System significantly reduces the consumption of precious cleanwater. It is particularly aimed at mitigating problems related to scarce or unreliable water resources inthat are too spread out to justify a large sewage system. No water is used to transport the waste,circumventing the need for a traditional sewage system. Additionally, the proper treatment of
human wastes protects groundwater and other resources from contamination. The system also
creates employment for collection services and compost facilities, providing a financial incentive toprevent dumping.
How "Green Toilet System" Worksurban environments where the population is rapidly increasing.
Suitable for both stand-alone homes and multi-unit buildings, the system avoids clogging of the
sewage system and features a comfortable sitting-type toilet that is easy to clean and maintain. A
flapper valve in the toilet bowl is operated with a handle, and the valve and accumulated water prevent
odors from entering the room. A steeply angled pipe connected to the toilet and sewage water system

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17

LIXIL Group Corporate Responsibility Report 2016

assists the overall flow of waste.
LiquidSolid

Fertilizer

Soil Conditioner

Water Conservation &Environmental Sustainability

Our Approach
Three Strategic Pillars
Global Sanitation & Hygiene

In order to contribute to this carbon-neutral future, LIXIL Group created a new Environmental
environmental footprint from our entire business process, thus, achieving a NETZERO Environmental

Corporate
Report 2016

half of this century.
Vision. By 2030, the positive environmental contribution from our products and services will surpass the

LIXIL Group

Responsibility

between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second

Footprint. We will achieve this through innovative technologies, such as low-carbon and water-efficienttechnology, and also by reducing environmental impact in every process of the business, including
LIXIL is committed to conserving water, energy, and other natural resources utilized in and by LIXIL

procurement, production, product use and disposal.

products and services, including in the supply chain, production, distribution and during end use.

Background
Sustainable use of natural resources is ever more critical for our society, and given the nature of LIXIL's
business there are multiple areas where our actions can make a difference. By 2030, approximately
47% of the world's population is expected to be living in areas of high water stress. Additionally, LIXIL's

Water Conservation & Environmental
Sustainability

business is strongly linked to buildings, which account for 32% (24% residential and 8% commercial)

Diversity & Inclusionof total global final energy use, and without action, energy use by buildings is estimated to morethan double by 2050. With regards to other natural resources, aluminum, one of LIXIL's important raw

Our People

materials, has been identified as one of the priority material in the metals category and requires urgent
attention.

Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

Activities
LIXIL Group Enviromental Strategy

Core Environmental Strategy Themes

LIXIL Group considers environmental challenges, such as water conservation and environmental

To achieve our Environmental Vision, we are focused on three core areas, based on clearly definedprotection, to be one of the most important business agendas. As a 'Living Technology' company, wetargets and actions plans.

are committed to our Environmental Strategy, which pledges that LIXIL will provide environmental

1. Climate change mitigation and adaptation

solutions through our products and services.

2. Conservation of water resources
3. Sustainable use of resources

Environmental Vision 2030
To mitigate global climate change, the Paris Agreement set a long-term ambition to achieve a balance

Environmental Sustainability Principles
Procurement

The Environmental Sustainability Principles cover five key areas as outlined below and guide the actions

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approachand disclose informationof all LIXIL employees. From procurement, production, product use and disposal, we are committed tocreating a sustainable society throughout every aspect of our business, and taking responsible actions
to respect our environment.

2. Reduce

Manufacturing

environmental
footprint across

LIXIL Group Environmental Sustainability Principle (PDF) >by 5%)

processes

1. Continually improve environmental management systems and performance

Logistics
Reduce CO2 emissions

2. Adhere to rigorous compliance3. Develop and provide environmentally sound products and services
4. Reduce environmental impact in every process of the business operation

2020 Mid-term Targets

Diversity & Inclusion

Action Plans for Addressing Environmental Issues
Targets and KPI

Our People

gas reduction)

Environment
R&D

Society
Customers & Supply Chain
Reporting

1. Improve
environmental
value of products
and services

Product
development

Secure a reduction of
CO2 emissions by 40%

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LIXIL Group Corporate Responsibility Report 2016

Water conservation

Sustainable
use ofresources

・Engage in R&D and develop products that help resolve
environmental issues
・Define what constitutes LIXIL Group's global "product CO2
emissions by products and the decrease in CO2 emissions",
establish reporting lines, and set KPI and targets (FY2016)
・Achieve KPI targets within all technology businesses that arelinked to the targeted 40% decrease in product CO2 emissions(FY2017-FY2020)
・Pursue Design for Environment, taking into account the entire
product lifecycle

v. FY2015

Prev.

Mitigating andadapting to climatechange (Greenhouse

Sales

・Focus on sales expansion strategies for eco-friendly products
and services

3. Build an effective
environment
management
system-Ensure strict
compliance-Strengthen risk
management

・Improve consigners'
CO2 emissions by5%

by 8% v. FY2015

・Improve water use
efficiency⇒ Assess our water
usage, evaluate therisk, identify highrisk facilities, andbuild action plans
starting with highrisk facilities

・Achieve
95% ormore
recycling of
waste

Sales

・Reduce electricity charges or overall cost ofutilities by 5%

Product use &disposal*See Product Development in Section 1 above

R&D

・Strengthen governance, including the committee framework,
reporting lines, and Group-wide rules and regulations etc.
・Maintain zero compliance violations (requiring administrative
guidance or incurring a penalty)
・Establish and achieve an environmental risk management plantaking into account locality and economic viability

5. Proactively communicate with all stakeholders

Global Sanitation & Hygiene

・Reduce CO2
emissions by 8%(reduce energy use

all operational

Three Strategic Pillars

Water Conservation & Environmental
Sustainability

・Cooperate with and encourage suppliers to fully embrace
responsible procurement, reduce their environmental footprint

Diversity & Inclusion
LIXIL Group

Corporate
Responsibility
Report 2016

LIXIL is committed to embracing the diversity of people in society and within our firm. This includes
enhancing quality of life and wellbeing for the elderly and the physically disabled through LIXIL products
and services, as well as harnessing the intelligence and perspectives of LIXIL's diverse workforce, as anengine for growth and innovation.

Toilets

Bathroom

Dressing room

Dim light

Push-type faucet

Wash-stand for wheelchairs

Our Approach
Three Strategic Pillars

BackgroundBy 2050, more than one in every five people around the world are projected to be over the age of 60,

Global Sanitation & Hygienewith many living either alone or with their spouse only. Approximately 15% of the world's population

Water Conservation & Environmental
Sustainability

today has some sort of disability, and this rate is increasing every year. In Japan, female participation in

Diversity & Inclusion

the workforce is still low compared to other countries, despite the fact that multiple researches suggestthat gender diversity correlates with less volatile and improved financial performance of corporations.

Our People
Environment
Society
Customers & Supply Chain

Kitchen

Living room

Stairs, corridors, entrance halls

Touch-less faucet

No-rail window sash

Stairs with slipping prevention mechanism

Activities
Universal Design by LIXIL
LIXIL engages in research and development for products and services factoring in various points ofview, to help create comfortable and fruitful lives for people of all ages.

Reporting

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LIXIL Group Corporate Responsibility Report 2016

Entrance porch / exterior

Public toilets

Public spaces

Linear sliding system

Large remote controls

Support rail UD

Facilitating the development of next-generation solutions to
support the greying society

LIXIL Diversity Declaration
The corporate culture of LIXIL is marked by a commitment to become a company that utilizes energy

LIXIL Group

LIXIL has signed an agreement with the Stanford Center on Longevity in the U.S. to support "Theand innovation generated by diversity for its businesses. We also aim to create an environment where

Corporate

Stanford Center on Longevity Design Challenge", a global competition aimed at encouraging students

people are always looking forward and will achieve better results by continuously clearing self-imposed

to design products and services to improve the lives of older adults.

hurdles.

Responsibility
Report 2016
Our Approach

Currently in its third year, the Stanford Center on Longevity Design Challenge invites university
students from all over the world to submit designs for new products and services that encourage
everyone to live longer, fuller lives. Under the contest theme of this year, "Using Happiness to Optimize
Longevity", the design challenge is divided into three categories; Mind, Mobility and Financial Security.

We will welcome differences among genders, ages, races,

LIXIL will participate in the Design Award as a judge as well as an advisor to finalists that will be selected

cultures, nationalities, beliefs, and backgrounds. Energy andduring the judging period of December 2015 through January 2016.
LIXIL has long been a leader in Japan in the development of practical housing and building solutions

Three Strategic Pillars

creativity generated by open and passionate discussion can beused as a source of competitiveness.

to support the lives of Japan's fast-aging society. By engaging with the Stanford Center on Longevity
on this competition, LIXIL aims to leverage its technologies and solutions to inspire even greater

Global Sanitation & Hygiene

1. Respect Diversity

2. Provide Equal Opportunity

innovations to empower older adults to lead safer, healthier and more active lifestyles, both inside theirWater Conservation & Environmental
Sustainability

homes and in their community.

We will provide equal opportunities and occasions to anyone

Diversity & Inclusion

Promoting Diversity

regardless of background.

LIXIL Group has made a "LIXIL Diversity Declaration" and promised to promote diversity among all

3. Implement Meritocracy

Our People

that tries to demonstrate a positive and proactive attitude,

employees. As we seek to achieve true globalization and increase the strength of the Group, it isEnvironment

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

Society
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Reporting

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21

LIXIL Group Corporate Responsibility Report 2016

Opportunities" and a "Implement Meritocracy"

We will fairly evaluate how much one puts "LIXIL VALUES" into practice and how much one performs.

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity
Performance

Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

Our People
We are committed to respecting the individuality of
all employees and offering a rewarding working environment.

A Fair & Rewarding Workplacerewarding for a diverse workforce and respects human rights.
In recruiting employees, we ensure a fair and equitable selection process and focus on seeking
talents who share and can act on the LIXIL Values. To enhance the competitiveness and efficient
execution of our global businesses, we actively recruit employees from diverse nationalities, as well as

LIXIL Group

Corporate
Responsibility
Report 2016

offer opportunities to talents in our various overseas subsidiaries.
The LIXIL Group strives to be a company that is trusted by society and which our employees areproud of by promoting a rewarding working environment, developing a strong corporate culture, andfostering an open atmosphere between the union and the company.

Action plan

Our Approach
Three Strategic Pillars

Target for FY2016

Target for FY2017

・Implementation ofaction plans derived

・Ensure full
implementation of action

・Ensure full
implementation of action

survey across thefrom the global

plans derived from theplans derived from theGroup.

employee awarenesssurvey across theGroup (%)

2015 global employee
awareness survey acrossthe Group (100%)2017 global employee
awareness survey acrossthe Group (100%)

・The percentage of paid
leave taken at LIXIL
Corporation (Japanonly) (%)

・Over 50% of paid leave
taken at LIXIL Corporation(Japan only)・Over 55% of paid leave
taken at LIXIL Corporation(Japan only)

・Number of meetingsof the Central Labor
Relations Committee
at LIXIL Corporation(Japan only)

・Hold 10 meetings of theCentral Labor Relations
Committee annually,
to facilitate regularcommunication between
the union and company(LIXIL Corporation, Japan
only)

・Hold 10 meetings of theCentral Labor Relations
Committee annually,
to facilitate regularcommunication between
the union and company
at LIXIL Corporation(Japan only)

Conduct a regular
employee awareness

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

Environment
Society

Hold regular
discussions between
the union and thecompany.

KPI

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LIXIL Group Corporate Responsibility Report 2016

・Embrace meritocracy

・Exert ownership of human resources within line management・Respect diversity

・Motivate employees through effective resource management

・Provide equal opportunities

・Develop employee potential with stretch goals
・Motivate employees to tackle new challenges

The LIXIL Group strives to be a company that is trusted by society and which our employees are proud of

Employee Opinion Surveys
increasingly important to understand our current situation and actively incorporate employees' viewsin building new frameworks and improving working environments. Accordingly, from FY2015, we havecombined the employee awareness surveys that were previously conducted separately within eachgroup subsidiary into one global survey. We are now collecting comprehensive data on the level of theemployees' understanding of our corporate vision, day-to-day work-related issues, satisfaction, as wellas engagement. Over 66,000 employees around the world responded to the first survey, providing
feedback from 90% of our global workforce. Based on the survey results, each business function
identified its own issues and are implementing and following-up on action plans. Also, we have set up a

Our Approach to Personnel Management
To fulfill our corporate vision "to be the world's most valued, innovative and trusted living technology
company by 2020", the LIXIL Group is focused on nurturing a globally competitive corporate culturethat champions meritocracy, diversity, and equal opportunities, and promoting management that23

Enhance Employee’s Engagement to Strengthen Performance

In order for the rapidly evolving LIXIL Group to achieve further growth as One LIXIL, we believe it is

Customers & Supply Chain
Reporting

Foster a Strong Corporate Culture

invigorates employees. To foster such culture, we strive to create a working environment that is

global cross-functional project to address Group-wide issues.

Supporting a Healthy Work-Life Balance

Number of Nursing-Care Leave Users ★

The LIXIL Group seeks to build a rewarding working environment in which each and every employee

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach

can perform to one's full potential. Holding active Work-Life Flexibility (WLF) Advisory Discussions
between the union and the company, LIXIL Corporation is committed to enhancing the necessary
systems and cultivating the right atmosphere. We will support employees in maintaining a healthy
work-life balance throughout various life events (childbirth, childcare, nursing care, etc.), and facilitate
employees to continue performing optimally at each stage of their lives.

Number of Maternity Leave
Users ★

Number of Child-Care Leave
Users ★

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

Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

Preventing Overwork
The LIXIL Group seeks to optimize working hours to ensure that employees can work in efficientand productive ways. To encourage employees to actively reduce overtime, LIXIL Corporation has
designated Wednesdays to be a no-overtime day and has implemented an advance declaration policy
for overtime. From FY2015, managers, as well as staff, are required to carefully manage their working
hours. Employees who consistently work long hours are interviewed by an industrial physician toprevent mental / physical health issues. We aim to increase paid-leave usage to 50% or more, and haveintroduced measures such as memorial leave for personal anniversaries to help encourage employees
to take time off. In FY2015, paid-leave usage was 45%.

Paid Leave Days Taken per
Employee ★

Average Monthly Overtime
Hours per Employee ★

LIXIL Group

Related principles:

Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development
Performance

Environment
Society

Labor-Management Relationship
The LIXIL Group believes that building mutual trust between the union and the company basedon an equal relationship that helps create a rewarding workplace and leads to improved businessperformance.
LIXIL Labor Union, which adopts a union shop system for original permanent employees of LIXIL
Corporation, is comprised of 13,973 registered members as of March 31, 2016. Labor-management

Customers & Supply Chain

consultations take place in the form of regular discussions and information sharing on business status,
working conditions, health and safety issues, etc., and the union and the company work together toReportingresolve issues. When there are changes to working conditions and/or other systems being introduced
or revised through labor-management consultation, the union and the company cooperate to

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ensure employee awareness of the changes. This is facilitated through posting the information on
the corporate intranet, cascading down by the relevant general affairs department, and the union
distributing its own Union Guide to all union members.

25
LIXIL Group Corporate Responsibility Report 2016

Scope and details >・LIXIL VALUES >Corporate

Diversity & Equal Opportunity

FY2015 data indicated with a ★ has recieved the independent practitioner's assurance.

Work Safety & Well-being
LIXIL Group

Corporate
Responsibility

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

Report 2016
Our Approach
Three Strategic Pillars

Action plan

KPI

Build a common
Group Environment,

・Group-wide
coverage of EHS

Occupational Healthmanagement

and Safety (EHS)
management system.

system (%)

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

Target for FY2016
・Set up a Group EHS
Committee
・Formulate Group-wide
operational rules (EHS manual,
EHS emergency response
guidelines, EHS governanceinspection guidelines)
・Start collecting and disclosing
Group-wide EHS performancedata

Target for FY2017
・Extend theimplementation of EHS
management system to
95% across the Group

Severity Rate and Lost Time Injuries Frequency Rate ★

Talent Development
Diversity & Equal Opportunity
Performance

Environment

Our Approach & Structure
The LIXIL Group, in our Group Charter of Corporate Behavior, commits to "promoting the mental
and physical well-being of all workers by prioritizing safety to realize an ideal accident-free working

Societyenvironment." To this aim, we have introduced an occupational health and safety management system

Customers & Supply Chain

Safety Committee in each business segment, which discusses health and safety issues on a regular basis

and implemented a PDCA approach to help prevent accidents at work. We also have a Health and

OIFR (FY2015) ★

to help generate continuous improvements.
Reporting

We have also focused on building and expanding an effective Group-wide management systemfor occupational health and safety. In July 2015, we appointed health and safety administrators andPrev.

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implementation managers within each of our business units in Japan (each technology businesses, LIXIL
Japan Company, Distribution & Retail Business and Housing & Services Business) and the headquarters,
and set up the Japan Health and Safety Committee. In April 2016, the committee's scope was broadened toincorporate environmental areas and became the Group Environment, Health and Safety (EHS) Committee,

26
LIXIL Group Corporate Responsibility Report 2016chaired by the Executive Officer in charge of Technology, Quality and Manufacturing Environment.

OIFR ＊*Directly hired employees in Japan only
*OIFR：Occupational Illness Frequency Rate

0.00

Working to Eradicate Work-Related Accidents

Number of Seminar Participants

LIXIL Corporation conducts safety training in each

LIXIL Group

plant to improve workers' awareness of safety issues,

Corporate

and the safety research groups at the plants conduct

Mental health seminars

regular inspections of machinery and facilities andMental health management

Responsibility

risk assessments to identify and eradicate any risk

training for managers

Report 2016

training sessions (Anzen Dojo) in which staff at all

factors. In addition, the production division provides
levels experience simulations of actual past accidents.

Our Approach
Three Strategic Pillars

Participants learn the importance of safe behavior

Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity
Performance

Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

FY2014FY2015230 (10 seminars)

311 (12 seminars)

413 (19 seminars)

125

96

139

*LIXIL Corporation only

FY2015 data indicated with a ★ has recieved the independent practitioner's assurance.
Scope and details >by gaining first-hand experience of the dangers ofgetting caught or rolled-in by production machineries that are in actual use. So far, 2,600 employees
have participated in these training sessions.

Our People
A Fair & Rewarding Workplace

FY2013

Employee Health Management
Working with the LIXIL Health Insurance Society, LIXIL Corporation seeks to ensure the wellness of
employees by promoting health awareness and providing opportunities to prevent illnesses andimprove fitness.
All employees undergo annual medical check-ups, and employees with high risk of lifestyle-relateddiseases are encouraged to visit a doctor to prevent their symptoms from worsening. The LIXIL Health
Insurance Society covers basic medical examination fees for both employees and their dependents.
We are also focused on caring for mental health, which is important in ensuring overall wellnessof employees. We have specialist industry physicians at our major business sites, and offer mental
health management training for managers to help create a working environment conducive to early
detection and early treatment. We also conduct seminars and stress checks to ensure all employees
have the correct knowledge to help themselves, and offer a Workplace Reinstatement Program to help
employees who have been on sick leave to facilitate their return to the workforce.

Related principles:
・LIXIL Group Occupational Health and Safety Principles >Talent Development

1.Global Leadership Institute
Focused development of next-generation corporate leaders and enhancing their presence

LIXIL Group

Corporate
Responsibility
Report 2016

2.Professional College

As part of our quest to be a company that is trusted by society and which our employees are proud of,
the LIXIL Group is committed to providing each and every employee with development opportunities

Three Strategic Pillars
Our People

3.Basic School

focused on leadership potential.
Basic skills training based on the needs of employees
Action plan

Our Approach

Improving the overall capability and expertise of business units and functional divisions

・Hold regular leadershiptraining programs, bothin Japan and across theGroup.
・Optimize training
programs, both in Japanand across the Group.

KPI
・Number of
employees
participatingin leadershiptraining

Target for FY2016

Target for FY2017

・Increase the number of
employees participating

・Increase the number of
employees participatingin leadership training to:-Group-widein leadership training to
210 employees

G-ELT (32 employees）-Japan ELT/SLT/JLT/FLT(200 employees in total)

Fostering Next-generation Corporate Leaders
LIXIL Corporation's Executive Leadership Training (ELT) is designed to strengthen the leadership skillsof potential future corporate leaders. The one-year course offers employees at the senior manager
level the opportunity to learn about leadership, business strategy and global business in residential

A Fair & Rewarding Workplace

workshops and personal coaching sessions. To encourage employees to think about leadership from an

Work Safety & Well-being

early stage, we also provide leadership training programs for managers and junior staff. In addition, weTalent Development
Diversity & Equal Opportunity

Our Approach to Talent Development

Performance

LIXIL Corporation's talent development policy is to foster professionals with strong leadership skills who
Environment

can operate effectively anywhere in the world. To this aim, we focus on three key areas: 1) developmentof next-generation leaders by selecting candidates from across all levels of our business; 2) professional

Society
Customers & Supply Chain
Reportingdevelopment to boost the overall capability and expertise required within specific business groups anddivisions; and 3) learning basic business skills as part of the fundamental training for next-generation
corporate leaders and professionals.

Training System
LIXIL Corporation fosters next-generation corporate leaders and professionals through our unique

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LIXIL Group Corporate Responsibility Report 2016

educational system, the LIXIL Academy (Internal). The LIXIL Academy is comprised of three closely interlinked training institutions:offer opportunities for junior staff to enroll in MBA programs to develop leadership and management
skills and acquire an international mind-set.
In FY2015, we held our first Global-Executive Leadership Training (G-ELT) program to develop nextgeneration of global corporate leaders. We will monitor the effectiveness of G-ELT and facilitate future
improvements.

Leadership Training StructureEvaluation Framework

Training and education support programs conductedin FY2015 (including overseas businesses)

LIXIL Corporation evaluates all employees based on merit. Employees are required to assess their own

LIXIL Group

Corporate
Responsibility
Report 2016

Item
New employee training

Basic training for employees newly entering the company

Training by corporate

Training to develop skills and capabilities required at each position

positionslevel

Global Executive
Leadership Training

Our Approach
Three Strategic Pillars
Our People(G-ELT)*

Talent Development
Diversity & Equal Opportunity
Performance

Environment
Society
Customers & Supply Chain
Reporting

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Target: Senior managers/Executives across the Group globally
Objective: Fostering global corporate leaders

316
697

achievements against objectives set at the beginning of the year, to which managers provide feedback
in appraisal meeting based on the result assessed in the performance evaluation process. We nurturedevelopment by reviewing annual performance and sharing expectations for the year ahead.

Performance Evaluation Flow

31

Executive Leadership

Target: Senior managers (candidates to become executive officers)

Training (ELT)*

Objective: Pursuing global leadership

Senior Leadership
Training (SLT)*

Target: Managers
Objective: Cultivating deeper understanding of values andacquiring management skills

47

Junior Leadership
Training (JLT)*

Target: Assistant managers
Objective: Nurturing determination and basic skills required to bea future leader

88

Fresh Leadership
Training (FLT)*

Target: Junior employees
Objective: Developing young leaders

47

Management training

Training for employees being promoted to management positions

138

Division training

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

10,168A Fair & Rewarding Workplace
Work Safety & Well-being

Number ofparticipants

Training summary

48*Includes LIXIL Corporation and its subsidiaries

Annual training hours and costs per employee (FY2015) ★
Overall training :*Directly hired employees in Japan only

Training hours 15.7 hours

Training costs 66,718 Yen
FY2015 data indicated with a ★ has recieved the independent practitioner's assurance.
Scope and details >29
LIXIL Group Corporate Responsibility Report 2016

Diversity & Equal Opportunity

Empowering Women in the Workplace
The LIXIL Group believes the active participation of female employees is vital to promoting diversity.

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars

LIXIL Corporation has set up the Diversity Promotion Office to further advance careers for women.
As a member of "Male Leaders General Meeting (to promote the active role of women)", an initiative
The LIXIL Group is committed to respecting diversity and recruiting and developing high caliber talentacross the Group. We believe that harnessing the intelligence and perspectives of our diverse workforce
is critical to driving growth and innovation. We will also continue to expand local hiring and develop
leaders at each of our business locations.

Action plan
Promote the active
participation of womenin the workplace.

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

Create a staffing
plan that encourages
employment anddevelopment of people
in local communities.

KPI
・Percentage of women among
regularly recruited new hires (LIXIL
Corporation, Japan only) (%)
・Percentage of women participatingin leadership development programs(LIXIL Corporation, Japan only) (%)
・Fulfillment of recruitment plans toincrease the number of local factory
employees (LIXIL manufacturingsubsidiaries)

Customers & Supply Chain
Reporting

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30

LIXIL Group Corporate Responsibility Report 2016

more appointment of female directors / officers and managers. In 2015, the LIXIL Group was selectedjointly by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE) as aNadeshiko Brand** in 2014 and 2015, and in their Diversity Management Selection 100 in 2015.
* WeDo: Women Empowerment in a Diversified Organization** An initiative jointly launched by METI and TSE to select and publicize companies that promote the empowerment of female employees

Target for FY2016

Target for FY2017

・Over 30% of hires
・Over 20%
(As of March
2016)

・Over 30% of hires
・Over 20%
(As of March2016)

LIXIL Corporation promotes flexible working to ensure employees demonstrate their full potential at
every stage of their lives, and offers childcare and nursing care systems to help employees achieve agood work-life balance. We also encourage employees who left the company for child / family carereasons to rejoin the workforce. As of March 2016, we had 167 female managers (7.0% of all managers),
representing growth of approximately 7.6 times in absolute number and 7.8 times in manager ratio
from 22 female managers (0.9%) in March 2012. Of these 167 female managers, 17 (3.2%) are senior・Achieve 100% of
the recruitment
plan・Achieve 100% of
the recruitment
planmanagers or higher, and 150 (8.0%) are managers or equivalent.
Furthermore, while we had 1 female senior executive (1.0%) across the Group in March 2012, thenumber has risen to 9 (7.6%) as of March 2016, representing 2 directors, 2 senior managing executive
officers and 5 managing executive officers. We are committed to continuing to expand opportunities
for female employees.
*(): The ratio of women in all management positions

Environment
Societybacked by the Cabinet Office, we declared a WeDo Action* plan in August 2014, and are facilitating*1 female director and 1 female senior managing executive officer are from countries other than Japan.

Our Approach to Diversity*Data excludes Senior Life Company of LIXIL Corporation

WeDo Action Targets and Results (March 2016)

United under the LIXIL Diversity Declaration, the LIXIL Group embraces diversity of gender, age, race,
nationality, values, background, etc., and turns the energy and creativity generated by open discussions
into sources of strength. We aim to provide all employees with a fair and equitable environment, inPercentage of female managers

Ensure at least 30% of newly appointed
managers to be female

Graduate recruitment

Ensure at least 30% of new graduates hired to
be female

Personnel training

Ensure at least 20% of leadership training
participants to be womenwhich they challenge to meet stretch goals and are fairly evaluated with the results.

FY2015: 30.1%

April 2016 joiners: 37.4%

FY2015: 22.5%

Number and Composition Ratio of Female Managers ★

Number and Percentage of Disabled Employees ★

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity
Performance

Environment
Society

Employing Persons with Disabilities
The LIXIL Group adapts working environments to ensure employees with disabilities can work to theirfull potential in broad areas from R&D or production to office work. Across the Group, the number
and percentage of employees with disabilities are 743 and 2.36%, respectively (420 and 2.22% for LIXIL
Corporation). LIXIL Corporation is especially active in the employment of persons with mental disabilities
and has received certification from the Ministry of Health, Labour and Welfare as a leading company inthe employment of persons with mental disabilities and other disabilities in May 2016.

Creating Local Employment Opportunities
LIXIL Corporation supports the growth of employment opportunities in the regions where we operate,by employing technical college and high-school graduates as local permanent employees at our plants
in Japan.
FY2015 data indicated with a ★ has recieved the independent practitioner's assurance.
Scope and details >Customers & Supply Chain
Reporting

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31

LIXIL Group Corporate Responsibility Report 2016

Related principles:
・LIXIL Diversity Declaration >Performance

Housing Products (Qingdao) Co., Ltd., LIXIL Sanitary Fitting Manufacturing (Suzhou) Corporation, LIXIL
Building Materials Manufacturing (Suzhou) Corporation, LIXIL Korea Inc, Star Alubuild Private Limited,
LIXIL SUZUKI Shutter Manufacturing Corporation, PT LIXIL ALUMINIUM INDONESIA, LG-TOSTEM BM
Co., Ltd, Taiwan INAX Corporation, LIXIL Philippines Ltd., Co, LIXIL International Pte.,Ltd, LIXIL India

LIXIL Group

Corporate

Private Limited, ASD Americas Holding Corp., A-S CHINA PLUMBING PRODUCTS Ltd.

Subsidiaries of LIXIL Living Solution Corporation*4

Responsibility

Scope of Data Collection

Report 2016

The LIXIL Group employee-related data covers: LIXIL Group Corporation, its 5 operating companies*1,
LIXIL Corporation's 38 major subsidiaries (15 companies in Japan*2 and 23 groups/companies outside

Our Approach
Three Strategic Pillars

Japan*3), LIXIL Living Solution Corporation's 4 major subsidiaries*4. LIXIL Group Finance Corporation's
1 major subsidiaries*5 and The number of groups and companies covered is 48 in total. While
the majority of LIXIL Group Corporation's major subsidiaries as of March 31, 2016 are covered,please note that the scope of employee related data differs from the scope of subsidiaries for the

LIXIL REALTY, Corp., JAPAN HOME SHIELD CORPORATION, LIXIL Housing Research Institute, Ltd.,CLASSIS Corporation

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

consolidated financial report.
Our People

・Consolidated subsidiaries in Japan:*LIXIL Group Corporation and its consolidated subsidiaries and second-tier subsidiaries (sub-subsidiaries) are covered.

LIXIL Home Finance Corporation
A Fair & Rewarding Workplace

1

Operating companies of LIXIL Group Corporation*Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity
Performance

Environment
Society
Customers & Supply Chain
Reporting

LIXIL Corporation, LIXIL VIVA CORPORATION, JIO Corporation,
LIXIL Group Finance Corporation and LIXIL Living Solution Corporation

Major subsidiaries of LIXIL Corporation

Contents Next

LIXIL Group Corporate Responsibility Report 2016

March 31, 2016.

2

LIXIL Total Service Corporation, Kawashima Selkon Textiles Co., Ltd., LIXIL Total Hanbai Corporation,
LIXIL SUZUKI SHUTTER CORPORATION, HIVIC CO., LTD., G TERIOR Corporation, Asahi Tostem

Employee Composition

Exterior Building Materials Co., Ltd., LIXIL Toyo Sash Shoji Co., Ltd., LIXIL RENEWAL Corporation, TM.S

In recruiting and hiring employees, the LIXIL Group respects human rights and is committed to ensuring

Corporation, Ltd., Kuwata Co., Ltd., Dinaone Corporation, Oita Tostem Co., Ltd., Nishi Kyushu Tostema fair selection process, recruiting diverse talent irrespective of social group, and building a platformCo., Ltd., and LIXIL ENERGY CO., Ltd.

which allows diverse set of employees to contribute to their full potential.

・Consolidated subsidiaries outside Japan* :Grohe Group, Permasteelisa Group、
TOSTEM THAI Co., Ltd., LIXIL Manufacturing (Dalian) Corporation,
LIXIL Vietnam Corporation, LIXIL GLOBAL MANUFACTURING VIETNAM Co., Ltd., LIXIL (Thailand) Public

32

The number of employees is calculated on an original registration basis for each company, mainly as of・Consolidated subsidiaries in Japan* :

3

Prev.

Data Collection Method and Period

Co., Ltd., PT AMERICAN STANDARD INDONESIA, AMERICAN STANDARD VIETNAM Co.Ltd., LIXIL-HaierNumber of Employees by Type of Employment ★

Number of Employees by Country ★

Number

LIXIL GroupCountry

Ratio (%)

NumberCountry

NumberMale

18,220

24.7%

Japan

34,064

Indonesia

581

Female

5,708

7.8%

Thailand

8,922

Hong Kong

522

Responsibility

Total

23,928

32.5%

China

6,245

India

462

Report 2016

Male

2,604

3.5%

Mexico4,012

Netherlands

397

Female

7,478

10.2%

Vietnam

3,931

Singapore

254

Total

10,082

13.7%

Germany

3,534

Other European Region

768

Male total

20,824

28.3%

USA

2,798

South Africa

1,951

Corporate

Our Approach

Permanent staff*1

Japan

Directly
employed

Non-permanent
staff*2

Three Strategic Pillars
Our People
A Fair & Rewarding Workplace

17.9%

Directly employed total

34,010

46.2%

2,512

3.4%

36,522

49.6%

37,08650.4%

73,608100.0%

Japan total

Talent Development
Performance

13,186

Indirectly employed*3

Work Safety & Well-being
Diversity & Equal Opportunity

Female total

Outside Japan

Directly employed total
Grand total

Environment
Society*1 Permanent employees: employees under a labor contract without a fixed period of employment*2 Non-permanent employees: employees under a labor contract with a fixed period of employment

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LIXIL Group Corporate Responsibility Report 2016

Other Asian Region

354
208

883

Other American Region

Portugal

627

Total

71,096* Directly employed* Data collected according to location of employment or base region* Other Asian Region cover Australia.
* Other European Region cover Russia.

Number of New Hires ★

*3 Indirectly employed: Temporary sub-contracted staff

FY2013

FY2014

LIXIL Corp.

FY2015

LIXIL Corp.

LIXIL Corp.

950

443

818

418

898

472

（376）

（241）

（495）

（326）

（517）

（323）

Non-permanent staff

2,758

643

2,182

386

561

360

Total

3,708

1,086

3,000

804

1,459

832

Permanent staff(new graduates)*Directly hired employees in Japan only

33

583

RegionItaly

Customers & Supply Chain
Reporting

Other Middle Eastern & AfricanTurnover Rate ★
FY2013

LIXIL Group

Corporate

LIXIL Corp.
Permanent staff

FY2015

LIXIL Corp.

LIXIL Corp.

778

385

814

427

624

290

3.32%

2.29%

3.41%

2.52%

2.60%

1.71%

Non-permanent staff

2,372

729

2,473

542

1,818

330

Total

3,150

1,114

3,287

969

2,442

620

Responsibility
Report 2016

FY2014

Turnover rate*1

Our Approach*Directly hired employees in Japan only
*Turnover rate calculation method

Three Strategic Pillars
Our People

The turnover rate uses the number of employees as of April 1 of the fiscal year as a basis for comparison with the number of retirees through March 31 of thesame fiscal year.

FY2015 data indicated with a ★ has recieved the independent practitioner's assurance.
Details >A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity
Performance

Environment
Society
Customers & Supply Chain
Reporting

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LIXIL Group Corporate Responsibility Report 2016

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Use Of Resources
Performance

Society
Customers & Supply Chain
Reporting

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35

LIXIL Group Corporate Responsibility Report 2016

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

Environmental Management

Promoting EHS
In April 2016, the LIXIL Group launched the Group EHS Committee, chaired by the Technology, Quality

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars

and Manufacturing Environment Officer, covering all businesses, including our four technology
businesses, LIXIL Japan Company, Distribution & Retail Business, Housing & Services Business, andIn order to achieve our Environmental Vision 2030, the LIXIL Group has committed to reducing theenvironmental footprint of our business operations through launching a Group-wide Environment,
Occupational Health and Safety (EHS) management system.

reporting lines, collaborating with LIXIL Group Executive Officers, the LIXIL Group Board, and the
Corporate Responsibility Committee.

Action plan

KPI

Target for FY2016

Build a common
Group EHS

・Group-wide
coverage of EHS

・Set up a Group EHS Committee
・Formulate Group-wide operational

・Extend theimplementation of EHS

management

management

rules (EHS manual, EHS emergency

management system tosystem.

system (%)

response guidelines, EHS governanceinspection guidelines)
・Start collecting and disclosing
Group-wide EHS performance data

95% across the Group

Our People

the headquarters. Going forward, we plan to develop and broaden the scope of the Group EHS
management system by driving our environmental strategy and building effective management andTarget for FY2017

Environment
Environmental Management
Greenhouse Gas Reduction

Our Approach

Sustainable Use Of Resources
Performance

In 2016, the LIXIL Group announced its Environmental Vision 2030 medium to long-term targets,and established the LIXIL Group Environmental Sustainability Principles to define our environmental

Society
Customers & Supply Chain
Reportingphilosophy and code of conduct. By 2030, we aim to secure an overall net zero balance between theenvironmental footprint of our business and the positive environmental contribution we make throughtechnological innovations and the development of low-carbon, water-saving products and services.
To date, the LIXIL Group has worked proactively to implement an effective environmental
management system mainly in Japan to reduce environmental footprints across the entire supply chain
from raw materials procurement through to product disposal. Going forward, we plan to extend thiseffort across the Group to further reduce our environmental impact. In April 2016, we established the
EHS Performance Data Reporting Guidelines to strengthen our monitoring processes and management

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36

LIXIL Group Corporate Responsibility Report 2016of our targets, and shared them among all Group companies.

External and Internal Audits
The LIXIL Group conducts internal audits of its manufacturing factories according to ISO14001 standards
and checks the effectiveness and compliance of the environmental management systems. With regard
to non-manufacturing divisions and Group operating companies, we perform internal audits basedon the standards set in our own environmental management system and are gradually expanding thescope to Group subsidiaries. We work to ensure the effective operation of our management system byfollowing up on all audit points and confirming the implementation of appropriate improvements.

Major ISO14001-certified operations
・LIXIL Housing Technology (Japan-based production and logistics facilities)

LIXIL Group

Corporate
Responsibility
Report 2016

・LIXIL Water Technology SC Japan (Japan-based production facilities)
・LIXIL Kitchen Technology Japan SC (Japan-based production facilities)
・Kawashima Selkon Textiles Co., Ltd.
・Asahi Tostem Exterior Building Materials Co., Ltd.
・LIXIL Housing Research Institute, Ltd.
・TOSTEM THAI Co., Ltd.
・LIXIL Vietnam Corporation
・LIXIL Manufacturing (Dalian) Corporation

Our Approach

・LIXIL Vietnam Corporation
・LIXIL Sanitary fitting Manufacturing (Suzhou) Corporation

Three Strategic Pillars

・LIXIL BUILDING MATERIALS MANUFACTURING (SUZHOU) CORPORATION
・American Standard Asia Pacific

Our People
Related principles:
Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Use Of Resources
Performance

Society
Customers & Supply Chain
Reporting

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37

LIXIL Group Corporate Responsibility Report 2016

・LIXIL Group Environmental Sustainability Principles >Greenhouse Gas Reduction

windows account for 70% or more of our total share of windows by 2020.

GROHE SilkMove® ES
LIXIL Group

Corporate
Responsibility

The GROHE SilkMove® ES single-lever mixer not only offers
GROHE's renowned smooth handling, but is environmentally
The LIXIL Group is focused on developing products and services that can help realize a low-carbon or
decarbonized society, as well as actively reducing greenhouse gas emissions in its operational processes.

Report 2016
Action plan

Our Approach
Three Strategic Pillars
Our People
Environment
Environmental Management
Greenhouse Gas Reduction

・Pursue moreenvironmentconscious productdesign andsales expansion
strategies, taking
into account theentire lifecycle ofboth products andservices.
・Improve CO2
emissions/units

KPI

Target for FY2016

Target for FY2017

Group-wide:
1. Benefits fromCO2 emissions

1. Create a guideline forcalculating the decrease
in CO2 emissions, to help

1. In line with the CO2
emissions target for
FY2016-20 (1.4 times more

reductionachieved fromus achieve our mid-termtarget for FY2016-20 (1.4

efficient than in FY2015),

the products andservices
2. Levels of CO2

times more efficient than in
FY2015), and monitor the
FY2015 result
2. Target -1.6% compared to
FY2015, to achieve our midterm CO2 emissions target foremissions acrossall operational
processes

achieve our goal for
FY2017 (1.14 times more
efficient than in FY2015)
2. Target -3.2% comparedto FY2015, to achieve our
mid-term CO2 emissions

FY2016-20 (-8% v. FY2015)

target for FY2016-20 (-8%v. FY2015)*1 and 2 include water conservation data on indirect CO2 emissions and the decrease in CO2 emissions when using water.

Sustainable Use Of Resources

Customers & Supply Chain
Reporting

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Improving Energy Efficiency of Products and Services
LIXIL's high-performance LEGARIS sash windows

LIXIL Group Corporate Responsibility Report 2016of Single-leyer mixers with GROHE SilkMove® ES technology
allows cold water flow in mid-lever position and hot water bymoving the lever up to 90 degrees left of the mid position,
thereby saving energy through reduced unconscious use of

Cold water flows in mid-lever position, hot water
when turned to the left.

hot water.

Permasteelisa mfree-SCCF
Introduced by Permasteelisa in 2008, mfree-SCCF (moisture free Sustainable Close Cavity Façade)curtain walls feature double-skin glass walls with compressed-air internal cavity. The Permasteelisa
Group proprietary technology offer outstanding performance from the perspectives of ecologicalsensitiveness, comfort, and aesthetic appeal. Many buildings with these curtain wall exteriors havereceived acclaim and certification by green building rating systems such as Leadership in Energy andEnvironmental Design (LEED) and the Building Research Establishment Environmental Assessment

Promoting Energy Creation and Saving
Establishing a solar power system

LEGARIS five-layer glass sash windows are designed to provide
thermal insulation that is almost as efficient as walls. The

LIXIL Corporation is promoting the creation and use of

window's structure of encapsulating high-performance gas

renewable energy by turning idle land and factory roofs into

between special thin sheets of glass keeps the window clear

mega solar power plants at five of its sites in Japan. The LIXIL

while achieving a record-breaking insulation efficiency of 0.55

Chita Solar Power facility, which began operating in April

W/m2·K, and weighing the same as a regular triple-layer glass

2016, is expected to generate approximately 6,000MWh

window. We will actively develop products using this superior38

hot and cold at mid-lever position, the cold-water start design

Method (BREEAM).

Performance

Societyfriendly as well. While most single-lever mixers release mixed

performance window technology derived from consistenttechnical innovation, and aim to make high-performance

High-performance LEGARIS window

annually, enough to power 1,200 households.

Energy savings at manufacturing sites
GROHE improved its energy efficiency by 3% year-on-year through 2014 by modernizing factory

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Use Of Resources
Performance

Society
Customers & Supply Chain
Reporting

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39

LIXIL Group Corporate Responsibility Report 2016

equipment, streamlining manufacturing processes, appointing energy officers and introducing
cogeneration systems. In 2015, GROHE's Hemer factory in central Germany managed to supply 13% of
its energy requirements through its cogeneration system and reduce CO2 emissions by 10%. GROHE will
promote further energy savings and seek ISO 50001 certification on Energy Management Systems.

Climate Change 2016 Information Request
From 2011, LIXIL has been participating in the CDP questionnaire and actively disclosing ournon-financial information to investors. For the latest report, please see the link. >Sustainable Use Of Resources

considerably reducing the amount of water and cleanser needed for cleaning.

Water-saving faucet technology
LIXIL Group

Corporate
Responsibility

GROHE developed the EcoJoy® technology to help reducewater and energy consumption in all its products including
The LIXIL Group promotes the sustainable use of water and raw materials across the entire lifecycle ofshower-heads, toilets, water faucets, etc. The EcoJoy®

our products from procurement through disposal.

technology reduces the amount of water used by up to 50%
without compromising the user experience by employing, for

Report 2016
Our Approach
Three Strategic Pillars
Our People
Environment
Environmental Management
Greenhouse Gas Reduction

Action plan

KPI

・Pursue moreenvironment-conscious

Group-wide:
1. Benefits fromproduct design andsales expansion
strategies, taking into
account the entire
lifecycle of bothproducts and services.
・Improve efficient use
of water resources.
・Improve waste
recycling ratio.

Target for FY2016

Target for FY2017

CO2 emissions

1. Create a guideline forcalculating the decrease
in CO2 emissions, to help

1. In line with the CO2
emissions target for
FY2016-20 (1.4 times more

reductionachieved fromus achieve our mid-termtarget for FY2016-20 (1.4

efficient than in FY2015),

the products
and services
2. Levels of CO2
emissions
across all
operational
processes

times more efficient than in
FY2015), and monitor the
FY2015 result
2. Target -1.6% comparedto FY2015, to achieve our
mid-term CO2 emissions

achieve our goal for FY2017(1.14 times more efficientthan in FY2015)
2. Target -3.2% comparedto FY2015, to achieve our
mid-term CO2 emissions

target for FY2016-20 (-8% v.
FY2015)

Sustainable Use Of Resources
Performance

Society
Customers & Supply Chain
Reporting*1 and 2 include water conservation data on indirect CO2 emissions and the decrease in CO2 emissions when using water.

target for FY2016-20 (-8%v. FY2015)

example, integrated flow limiters, EcoButtons, spray dimmers ordual flush technology.
Water-saving faucet technology >Recycling Resources in Operational Activities
Based on the 3R principles, Reduce, Reuse, Recycle, LIXIL Corporation is committed to reducing
industrial waste products generated from manufacturing processes, collecting and sorting waste, andrecycling. Going forward, we plan to expand our efforts by recycling resources at the raw material
procurement and product disposal stages as well, and to extend the system globally.

Waste Materials and Recycling Rates ★

Enhancing the Water-saving Featuresin Products and Services
LIXIL single-unit SATIS G-type toilet
SATIS G-type water-saving toilet, released in April 2016, uses only

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4 litres of water per flush to clean the toilet bowl completely.
The newly developed AQUA CERAMIC technology also prevents
the bowl from being stained by waste, hard water, scuffing

40
LIXIL Group Corporate Responsibility Report 2016

and scratching and build-up of bacteria. The technology makes
the toilet easy to maintain its shine with basic regular care,

50% water-saving with
EcoJoy™ technology*The scope of the data from fiscal 2012 onward has been expanded annually.
*Data excludes JIO Corporation.

Using recycled material in product manufacture

List of Major River Basin

At GROHE's faucet producting Hemer plant in central Germany, about 80% of 5,000 metric tons of

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
Environment

brass used annually is now collected from internally and externally collected recycled material, making

Regionuse of the plant's in-house alloy smelting blast furnace.

Hokkaido

Protecting and Conserving Water
in Business Activities
LIXIL Corporation uses large amounts of water for aluminum product surface finishing and other

Kanto

Ishikari River

Northern
China

Abukuma River
China

OverseasSouthern
China

Yahagi River

Water Usages ★
Kinki

Environmental Management
Greenhouse Gas Reduction

Yodo River /Yamato River
Kumozu River

Sustainable Use Of Resources
Performance

Chugoku

Yoshii River

KyushuChikugo River

Lake Tai

Pearl River

Red River

Chubu
Oyabe River /Sho RiverHai River

Huai River

Kiso River /Japanmeasures. We also conduct strict wastewater management to protect and maintain water quality.

CentralChina

Tsurumi River
Ara Riverincluding water intake, water usage per process and the installation of water circulation systems, andBiliuhe River

Yangtze River

Tone River

processes. In order to conserve water, we thoroughly study the level of water usage per factory,

Major Water
SystemRegionMogami River
Tohokupromote efficient use of water by building circulation systems and engaging in other conservation

Major Water
SystemVietnamHan River
Mekong River

Thailand

Chao Phraya River*Major water systems in our overall water usage framework

Society
Customers & Supply Chain

Preventing Pollution Through Strict Control ofChemical Substances

Reporting*Data excludes LIXIL Total Service Corporation, JIO Corporation, and the tenants in the building that we cannot assess the water intake data.
*There were significant reductions in FY2013 and FY2014 due to the closure of a major water-using plant in FY2013.
*The scope of the data from fisical 2012 onward has been expanded annually.

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LIXIL Corporation has set rules on substances that are forbidden or require strict control for use inproducts and/or during production processes. We manage and monitor our factories in compliance

Water 2016 Information Request

with the Soil Contamination Countermeasures Act and other environmental laws and regulations toensure the soil and waterways around our manufacturing facilities are not affected by our operations.

41
LIXIL Group Corporate Responsibility Report 2016

LIXIL has been participating in the CDP questionnaire and actively disclosing our non-financial
information to investors. For the latest report, please see the link. >FY2015 data indicated with a ★ has recieved the independent practitioner's assurance.
Scope and details >Performance

・Consolidated subsidiaries outside JapanTOSTEM THAI Co., Ltd., LIXIL Manufacturing (Dalian) Corporation, LIXIL GLOBAL MANUFACTURING
VIETNAM Co., Ltd., LIXIL AS Sanitary Manufacturing (Shanghai) Co., Ltd, LIXIL AS Sanitary Manufacturing

LIXIL Group

Corporate(Tianjin) Co., Ltd., Jiangmen LIXIL AS Sanitary Fitting Manufacturing Co., Ltd, HUA MEI SANITARY WARE
Co., Ltd., LIXIL Vietnam Corporation, LIXIL-Haier Housing Products (Qingdao) Co., Ltd., LIXIL BUILDING

Responsibility

Scope of Data Collection

Report 2016

In principle, environmental footprint data covers all operating companies and their consolidated
subsidiaries as of March 31 2016, with the exclusion of some consolidated subsidiaries considering their

Our Approach
Three Strategic Pillars

business size and content. With regard to non-consolidated subsidiaries, only one logistics company(LIXIL Logistics Corporation) has been included in the scope of reporting. (Subsidiaries operating inbuildings owned and managed by an operating company of the LIXIL Group are treated as being partof the LIXIL Group.) Please note that the scope of environmental footprint data differs from the scopeof subsidiaries for the consolidated financial report. Where scope of data is different to those stated

Our People

above, details are specified in the footnotes.

Environment

Operating companies of the LIXIL Group

Environmental Management

LIXIL Corporation, LIXIL VIVA CORPORATION, LIXIL Living Solution Corporation, JIO Corporation, LIXIL

Greenhouse Gas Reduction

Group Finance Corporation

Sustainable Use Of Resources
Performance

Society
Customers & Supply Chain
ReportingMajor subsidiaries of LIXIL Corporation

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LIXIL Group Corporate Responsibility Report 2016

PT AMERICAN STANDARD INDONESIA
Note: Data for Permasteelisa Group, ASD Americas Holding Corp., and GROHE Group S.à r.l. are not included.

Major subsidiaries of LIXIL Living Solution Corporation
・Consolidated subsidiaries in Japan:
LIXIL Housing Research Institute, Ltd., LIXIL REALTY, Corp., CLASSIS Corporation

Procurement and Logistics Data
Procurement:
The scope of data calculation includes all manufacturing sites under the environmental management
systems of the LIXIL Group. All raw materials, parts, and packaging materials used for products areincluded in the calculations, and manufacturing equipments and office supplies are excluded from the

Kawashima Selkon Textiles Co., Ltd., HIVIC CO., LTD., LIXIL Total Hanbai Corporation, Asahi Tostem

subsidiaries in Japan and 14 consolidated subsidiaries outside Japan.)

Exterior Building Materials Co., Ltd., G TERIOR Corporation, LIXIL SUZUKI SHUTTER CORPORATION, LIXIL
Toyo Sash Shoji Co., Ltd., Dinaone Corporation, TM.S Corporation, Kuwata Corporation, Oita Tostem
Corporation, Nishi Kyushu Tostem Corporation, LIXIL Total Service Corporation, LIXIL ENERGY Co., Ltd.,・Non-consolidated subsidiaries in Japan
LIXIL Logistics Corporation

42

Corporation, LIXIL Korea Inc, LIXIL (Thailand) Public Co. Ltd., AMERICAN STANDARD VIETNAM Co.Ltd.,・Consolidated subsidiaries in Japan

LIXIL RENEWAL Corporation, LIXIL INFORMATION SYSTEMS CORPORATION

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MATERIALS MANUFACTURING (SUZHOU) CORPORATION, LIXIL Sanitary Fitting Manufacturing (Suzhou)

calculations. (The data covers the supply division for each technology business in Japan, 3 consolidated

Logistics:
The scope of data calculation covers only the 16 sites of LIXIL Logistics Corporation which aredesignated as Specified Consigner by the Act on the Rational Use of Energy.

Material Balance (INPUT）★
LIXIL Group

Manufacture/sales

Procurement

Corporate

Energy usage

Material usage

FY 2014

Responsibility

164,461t

155,441t

Report 2016

Other metals

80,417

t78,730t

Plastics raw materials

37,090t

47,597t

Wood raw materials

235,817t

232,716t

Ceramics raw materials

379,384t359,949

t

168

t

129

t

Metal parts

104,018

t

99,671t

Plastic parts

134,744t

97,645t

Wood parts

86,540t

95,444t

Ceramic parts

249,026t

225,235t

Packaging materials

17,298t

12,443t

Others37,086t129,172t

147,108t

1,534,170t

38,092

thousandGJ

Our Approach
Three Strategic Pillars

OthersOur People
Environment
Environmental Management

Parts/
materials

Greenhouse Gas Reduction
Sustainable Use Of Resources
Performance

Customers & Supply Chain
Reporting

Total

Energy consumption

Volume reduced-1,084 thousand GJ

Year on year

* The weight of parts / materials is calculated based on purchase costs.
* Data covers the manufacturing sites of LIXIL Corporation and its overseas subsidiaries,

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43

LIXIL Group Corporate Responsibility Report 2016

925,966

thousand kWh

931,870

thousand kWh

City gas

93,388thousand ㎡

77,459thousand ㎡

LNG

14,931t

13,257t

LPG

13,364t13,135t

Kerosene

3,232

kL

2,814

kL

Fuel oil

6,548

kL

7,175

kL

Diesel

2,925

kL

3,114

kL

Gasoline

8,773

kL

9,317

kL

Steam

142,673GJ

144,076

GJ

Photovoltaic power generation *Energy consumption

Society

Kawashima Selkon Textiles Co., Ltd., and HIVIC CO., LTD.
* We have corrected some of the number of FY2014.

39,175thousandGJ

2.8% increase

FY 2015

Electricity
FY 2015

Aluminum raw materials

Rawmaterials

FY 201424

thousand kWh

24thousand kWh

15,649thousand GJ

14,925thousand GJ* Data only covers facilities within the premises of our factories (in-house use only).

Volume reduced

725 thousand GJ

Year on year

4.6 % decrease

Water intake

FY 2014

FY 2015

Material Balance (OUTPUT) ★

Potable water

1,547

thousand m3

1,521

thousand m3

LIXIL Group

Industrial water

4,808

thousand m3

4,560

thousand m3

Corporate

Ground water

4,233

thousand m3

4,863

thousand m3

10,588thousand m3

10,944thousand m3

Aluminum raw
materials

951

thousand t-CO2

962

thousand t-CO2

16.1

thousand GJ

15.6

thousand GJ

Other metals

153

thousand t-CO2

153

thousand t-CO2

Plastics raw materials

84

thousand t-CO2

150

thousand t-CO2

Wood raw materials

194

thousand t-CO2

190

thousand t-CO2

Ceramics raw
materials

76

thousand t-CO2

81

thousand t-CO2

Others1.7

thousand t-CO2

1.4

thousand t-CO2

Metal parts495

thousand t-CO2

501

thousand t-CO2

Plastic parts

303

thousand t-CO2

304

thousand t-CO2

Wood parts

72

thousand t-CO2

79

thousand t-CO2

Ceramic parts

48

thousand t-CO2

47

thousand t-CO2

Packaging materials

37

thousand t-CO2

37

thousand t-CO2

Others243

thousand t-CO2

227

thousand t-CO2

2,656

thousand t-CO2

2,732

thousand t-CO2

Responsibility
Report 2016
Our Approach

Total
Energy consumption

Volume reduced

0.6 thousand GJ

Year on year

3.4 % decrease

Procurement (Scope 3)CO2 emissions

Rawmaterials* Data excludes LIXIL Total Service Corporation, JIO Corporation, and the tenants in the building that we cannot assess the water intake data.

Three Strategic Pillars

Logistics
Our People
Environment
Environmental Management

Energy usage

FY 2014

FY 2015

Fuel (Crude oil equivalent)

46,886kL

44,909kL

Energy consumption

1,817

thousand GJ

1,741

thousand GJ

Greenhouse Gas Reduction
Sustainable Use Of Resources
Performance

Volume reduced

76 thousand GJ

Year on year

Parts/
materials

FY 2014

FY 2015

4.2 % decrease* Data covers the services , which LIXIL Corporation was identified as the consigner.

Society

Total

Customers & Supply Chain
Reporting

Volume reduced-76 thousand t-CO2

Year on year

*1. Data covers the manufacturing sites of LIXIL Corporation and its overseas subsidiaries,
Kawashima Selkon Textiles Co.,Ltd., and HIVIC CO., LTD.

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44

LIXIL Group Corporate Responsibility Report 2016

2.9 % increaseManufacture/sales (Scope 1 and 2)
CO2 emissions

LIXIL Group

Volume reduced

FY 2014

Year on year

3.9% increase* Data excludes LIXIL Total Service Corporation, JIO Corporation, and the tenants in the building that we cannot assess the wastewater data.

FY 2015

Electricity

420

thousand t-CO2

430

thousand t-CO2

City gas

197

thousand t-CO2

163

thousand t-CO2

Responsibility

LNG

40

thousand t-CO2

36

thousand t-CO2

Report 2016

LPG

40

thousand t-CO2

39

thousand t-CO2

Kerosene

8

thousand t-CO2

7

thousand t-CO2

Fuel oil18

thousand t-CO2

19

thousand t-CO2

Diesel8

thousand t-CO2

8

thousand t-CO2

Gasoline

20

thousand t-CO2

22

thousand t-CO2

Steam

9

thousand t-CO2

9thousand t-CO2

16.1

thousand t-CO2

15.6

thousand t-CO2

Corporate-381 thousand m3

Logistics (Scope 3)CO2 emissions
Fuel (Crude oil equivalent)

FY 2015125

thousand t-CO2

FY 2015
119

thousand t-CO2* Data covers the services , which LIXIL Corporation was identified as the consigner.

Our Approach
Three Strategic Pillars
Our People
Environment
Environmental Management

Total

Volume reduced

26 thousand t-CO2

Year on year

3.5 % decrease

Greenhouse Gas Reduction
Sustainable Use Of Resources
Performance

Societycoefficient*2) + (Cost of purchasing parts/materials) × (Energy conversion coefficient*3)
4・Energy consumption (manufacture/sales)* = (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 includingtransport to Japan. Energy consumption in manufacturing parts/materials includes energy consumed in mining, refining and other raw material processing
including transport to Japan and assembly/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

Waste products emissions

FY 2014

Recycled

103,946t

109,007t

Land filled

54,553t47,199t

158,499t

156,206t

FY 2015

conversion coefficient*2*5: Electricity, fuel: heat value per unit per energy source as specified in the Act of 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 Act ofRational Use of Energy (Measures Pertaining to Consigners)

Customers & Supply Chain
Reporting[Total Energy Consumption Calculation Method]
1・Energy consumption (procurement)* = (Amount of purchased raw materials) × (Energy conversion

Total[CO2 Conversion Coefficients Used to Convert CO2 Emissions]
Volume reduced

2,293 tYear on year

1.4 % decrease・Purchased electricity: Japan 0.378, China 0.764, Korea 0.489, Thailand 0.567, Vietnam 0.427, and Indonesia
0.653(kg-CO2/kWh)* 1. Data excludes JIO Corporation.

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Wastewater volume
Wastewater

45
LIXIL Group Corporate Responsibility Report 2016

・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/
FY 2015
9,729

thousand m3

FY 2015
10,110thousand m3

・Sources: Guidelines for Calculating Greenhouse Gas Emissions for Businesses (Ministry of the Environment),
2005, GHG emissions from purchased electricity. Version 4.4 (World Resources Institute), 2012
FY2015 data indicated with a ★ has recieved the independent practitioner's assurance.
Details >LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
Environment
Society
Human Rights
Stakeholder Engagement

Customers & Supply Chain
ReportingSociety
We engage in continual dialogue with our stakeholders andPrev.

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46

LIXIL Group Corporate Responsibility Report 2016

various activities with the society and local communities.

Human Rights* Due diligence on human rights: To put in place measures that identify, prevent, reduce or respond to any negative impact on human rights caused by theactivities of a company or its related companies, and to regularly monitor their effectiveness.

Related principles:

LIXIL Group

Corporate
Responsibility

LIXIL Group Human Rights Principles >We aim to sustainability operate as a responsible corporate citizen that respects human rights acrossthe entire value chain.

Report 2016
Action plan

Our Approach
Three Strategic Pillars

Target for
FY2016

KPI

Create a LIXIL Group
Human Rights Principles

・Implementationof Human Rights

・Ensure full
implementationand promote awarenessPrinciples learning

across the Groupamongst all LIXIL Groupacross the Group (%)

Target for FY2017
・Ensure full implementation
across the Group

employees.

Our People
Environment

Create a framework fordue diligence of humanrights.

(To be determined in
FY2017)-Society・Create an execution plan withour compliance department forhuman rights due diligence inall Group companies, suppliers
and other business partners

Human Rights
Stakeholder Engagement

Customers & Supply Chain

LIXIL's framework for respecting human rights
The LIXIL Group strives to uphold stakeholders' human rights in all of its operations, whether it be
our end-users, business partners or other suppliers, residents living near our factories and facilities,

Reportingor our employees. In March 2016, we published the LIXIL Group Human Rights Principles, which alignwith a number of international guidelines, including United Nations Universal Declaration of Human
Rights, International Labour Organization Declaration on Fundamental Principles and Rights at Work,and UN Guiding Principles on Business and Human Rights. Furthermore, We will adhere to the higher
commitment if there are any discrepancies between the internationally recognized human rights

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standards and the laws and regulations of individual countries or regions.
We will promote awareness of the LIXIL Group Human Rights Principles to all employees. Moreover,as a global company, we will be following through on reinforcing due diligence on human rights and on

47
LIXIL Group Corporate Responsibility Report 2016transparent reporting.

Stakeholder Engagement

Our Approach
Our success depends on the support of a broad range of stakeholders. We are committed to proactively

LIXIL Group

Corporate
Responsibility

engaging with our stakeholders (including customers, business partners, community members where
our operational facilities are located, shareholders, our employees and their families) to collect opinions
The LIXIL Group proactively engages with stakeholders to help improve the quality of people's daily
lives and resolve social issues.

Stakeholders

Report 2016
Action plan

Our Approach
Three Strategic Pillars
Our People
Environment
Society
Human Rights
Stakeholder Engagement

Customers & Supply Chain

KPI

and incorporate their voices in our business operations and social contribution activities.

Target for FY2016

Target for FY2017

Hold regular
top-level

Number of toplevel meetings

・Plan and execute top-levelmeeting with external experts

・Establish a system to facilitate
at least one top-level meeting

meetings withheld acrossexternal experts
and disclose

the Group (#);
Meeting quality

・Establish a system to ensure
timely communication of thecontent of the top-level meeting

・Communicate the content of
the top-level meeting with thethe content ofthese meetings

based on meeting
content

Hold regularstakeholder
engagement
meetings anddisclose thecontent of thesemeetings

Number of
stakeholder
meetings held
across the Group(#); Meeting
quality based on
meeting content

with the Board

each year

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

Suppliers

Contents Next48

LIXIL Group Corporate Responsibility Report 2016

We build and maintain strong relationships with our suppliers by facilitating two-way
communication. In response to recent Responsible Procurement Surveys, we share our
procurement policies, recognize current circumstances and follow through on promised
improvements. We also hold regular meetings with suppliers to share information on
regulatory trends and new corporate purchasing strategies. More

Local communities

The LIXIL Group operates 93 factories worldwide. As a responsible corporate citizen, on
top of respecting local culture and customs and create responsible products and jobs, we
also contribute to the development of the surrounding community in which we operate.
We hold community dialogues at factories and sales offices in Japan to encouragecommunication with local residents. More

Shareholders andinvestors

We hold approximately 800 discussions every year with investors around the world tohelp promote sustainable growth and enhance corporate value. We disclose timely
and transparent information in English and Japanese via our Annual Report (Integrated
Report from FY2015), our Investor Relations web pages and the Tokyo Stock Exchange
website. More

Employees

The LIXIL Group boasts approximately 80,000 employees. We strive to create an inspiring
working environment that encourages diversity and incorporates employee opinion
expressed via systematic global employee satisfaction surveys or discussions between theunion and the company. MoreNPOs, NGOs,
government anduniversities

We partner with NPOs/NGOs, governments and universities in the research anddevelopment related to global sanitation, and support environmental education for nextgeneration leaders.

Reporting

Prev.

We incorporate customer opinions as well as providing timely and appropriate disclosure
on our products and services. We offer customer support via telephone, email, and at 95
showrooms globally. More

Board
・Disclose the content of the
top-level meeting

・Extend the reach of currently
implemented mechanisms andencourage more sophisticatedand effective engagement
initiatives
・Encourage the sharing andadaptation of successful
engagement initiatives acrossthe Group

Customers

Type of Engagement

Examples of LIXIL Stakeholder Engagement

plumbing, as well as computer and English-language skills. Students are sent on placements with local
firms, resulting in a nearly 100% placement rate upon graduation. GROHE benefits from a great pool of

LIXIL Group focuses on making a positive social impact in priority areas such as global sanitation and

LIXIL Grouphygiene, water conservation and environmental sustainability, and diversity and inclusion, as well

Corporate

Review Committee", which our CEO serves as a member of, is held on regular basis to screen, assess

Responsibility
Report 2016

Three Strategic Pillars
Our People
Environment

by its overwhelming success, GROHE is looking to extend the training program to Egypt.

as areas where our expertise can make the biggest difference. The "Endowments and Consulting
and prioritize significant donations and sponsorships to ensure our profits contribute to society
appropriately and effectively.

Natural Disaster Aid and Recovery Support
Disaster recovery Initiatives in Japan

FY2014

Our Approachthese skilled plumbers to install its premium products at the highest professional standard. Spurred on

FY2015

Charitable donations

170,880,765

130,596,544

Community investments

613,395,842

856,842,636

Commercial initiatives

629,900,000

600,000,000

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

LIXIL Corporation has supported various recovery
efforts following the March 2011 earthquake andtsunami in Northeast Japan and the April 2016
earthquake in Kumamoto. These activities include
donations of basic daily necessities such as toilets
and hand-washing facilities, monetary donations,
sponsoring recovery projects, and employee-driven
charity events.
Employees are encouraged to offer their time

Donated windows and toilets to the "Playground-for-All" in
Minamisoma as part of a recovery support projectand expertise to help local communities which often proves to be a valuable experience that improves
Society
Human Rights
Stakeholder Engagement

Customers & Supply Chain
Reporting

Youth Empowerment

their engagement level. More (Japanese only)

Plumbing skills for a more secure future

Providing safe sanitation for communities in need

Underprivileged young people in many emerging

The innovative SATO ("Safe Toilet") is a life-saving,

countries often lack the skills to secure stablelow-cost solution that provides safe and hygienic

employment, while at the same time the local society

sanitation. In addition to its growing businesssuffers a chronic shortage of skilled workers. GROHE

operations reaching more people in Asia and Africa,

addresses this issue through GROHE Dual Tech,we also have been working with NGOs to support

conducted in conjunction with Don Bosco Mondo e.V.,

communities with urgent needs. (More informationa non-profit organization committed to supportingon SATO business)
Poor sanitary conditions on the poverty-stricken

disadvantaged youth.

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49

LIXIL Group Corporate Responsibility Report 2016

The German-modelled, dual-track training

Caribbean island of Haiti were exacerbated by the

program, has been underway in Mumbai-Kurla in2010 earthquake, with open latrines increasing theIndia since 2009, and has been expanded to New

GROHE Dual Tech students at the training facility in Mumbai

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

risk of the spread of disease by airborne insects. American Standard engineers worked with Plumbers

Delhi, as well as Manila-Tondo in the Philippines. To

without Borders (PWB) to teach students at Haiti Tec plumbing skills and how to improve hygiene. Withdate, GROHE has helped over 800 young people gain practical and classroom-based education on

the help of NGOs like PWB and Food for the Poor, American Standard donated 7,900 SATO products totowns and villages in Haiti, as well as other parts of the Caribbean and Central America.
SATO products were also delivered to survivors of the 2015 devastating earthquakes in Nepal withthe help of WaterAid. We are committed to helping ensure a safe and sanitary environment in disaster

LIXIL Group

Corporate
Responsibility
Report 2016relief efforts.

Local Community Engagement
Holding community dialogues in factories, sales and retail bases
LIXIL Corporation regularly holds community

Our Approach
Three Strategic Pillars
Our People

UNICEF

Working together to promote safe sanitary facilities in Africa.

Japan International
Cooperation Agency(JICA)

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

WaterAid

government officials, business owners, residents etc)
on how we can contribute back to the community.

NIJIIRO DIVERSITY

These are held at factories, sales and retail bases

member of the multi-industry group. More
Conducting awareness surveys with the non-profit organization to identify the issues
LGBT and other sexual minorities encounter when using public toilets, with the aimof providing a comfortable toilet space for all. More (Japanese only)

In fiscal 2015, LIXIL Corporation held community
over 300 participants. Over the past three years,

Community dialogue with the Kitami Sales Office of Dohoku Sales
Branch, Hokkaido Branch OfficeEnvironmental, Cultural and Social Programs

residents and authorities by implementing initiatives based on the conversations during community

Forest preservation

Encouraging our employees and their families to participate in voluntary activities toprotect forest and mountain environments in cooperation with government, NPOs
and forestry cooperatives. More (Japanese only)

Water and environment
related education
activities

Offering educational classes at primary schools on the global water and sanitation
challenge. More (Japanese only)

Cultural activities

Promoting cultural activities in areas related to our history, such as ceramic andtextile museums, gallery management and publishing. Moredialogues, and ensure consistent communication and follow up after the initial dialogue.
Human Rights

For example, our Handa Factory in Aichi Prefecture started to help local day-care centers with

Stakeholder Engagement

emergency evacuation procedures after a Principal voiced concern that the predominately female staff
might not be physically capable of evacuating all the children safely on their own. The same factory

Customers & Supply Chain

Helping develop sustainable, large-scale potential sanitation solutions as a foundingaround Japan.

we have held roughly 90 community dialogues in total. We cultivate meaningful relations with local
Society

Cooperating to improve the lives of people living in areas without hygienic toilets, inaddition to collaborating on a white paper that analyzes the socioeconomic losses
associated with underdeveloped sanitary environments. More

Toilet Board Coalition

dialogues with local stakeholders (such as local

dialogues at 19 new locations in Japan, attracting
Environment

Partnerships

is also participating in a range of community-inspired activities, including road accident prevention
initiatives, accepting internships, factory visits, and providing classes on product safety.

Reporting
Click here to see more detail on other Japan-based activities (Japanese only.)

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LIXIL Group Corporate Responsibility Report 2016

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
Environment
Society
Customers & Supply Chain
Responsible Supply Chain Management
Product Safety & Quality
Customer Satisfaction

Reporting

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51

LIXIL Group Corporate Responsibility Report 2016

Customers & Supply Chain
We are committed to delivering customer-focused products and services
and promoting responsible supply chain management.

Responsible Supply Chain Management

Respect for Human Rights and Consideration for Working Environment
We respect internationally declared standards of human rights, and pay due attention on ensuring anappropriate working environment.

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People

Care for the Environment
The LIXIL Group seeks to guarantee a stable supply of products through an overall management systemthat identifies supply chain risks and implements countermeasures when necessary, while fulfillingstakeholder accountability.

We will preferentially procure raw materials that have low environmental impact.
Promotion of Mutual Prosperity with Our Suppliers

Action plan

KPI

Target for FY2016

Extend ourJapanese CR

・Supplier monitoringcoverage ratio (based

・Promote Group-wideawareness of the LIXIL

・Achieve supplier monitoringcoverage ratio (based on

procurementon purchased amount)Group's procurement

purchased amount) to 80% inprocess
across theGroup.

(%), and percentage ofsuppliers which satisfy
CR management
standards (%)

strategy

Japan and 60% outside Japan;
ensure that 100% of suppliers
satisfy CR management
standards

・Implement existing CR
procurement processacross the Group

Target for FY2017

Environment

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

Promoting Responsible Procurement
The LIXIL Group promotes responsible procurement based on supplier assessment criteria whenselecting new business partners. These criteria include quality, cost and delivery (QCD), technologicalprowess, and capacity to deliver stable supplies, as well as sustainable use of resources and proper
control of chemical substances. The supplier assessment criteria are applied when selecting newSociety
Customers & Supply Chain
Responsible Supply Chain Management
Product Safety & Quality
Customer Satisfaction

Reporting

Procurement Policy

partners and during regular subsequent checks. We have also included additional criteria such as human

The LIXIL Group has established a Procurement Policy to develop healthy business partnerships withmergers and acquisitions.

counterparts worldwide. This policy forms the basis of our overall supply chain management.

Procurement Policy
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 CR
aspects such as environmental management, human rights, and workplace safety in addition to quality,

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cost, and delivery.
Adherence to Social Norms

52
LIXIL Group Corporate Responsibility Report 2016

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

rights and labor safety, to ensure responsible procurement globally. We are looking to strengthen
supply chain management of our network of overseas business partners, which has expanded following

Approach to Responsible Procurement

Management of Chemical Substances

Overseas

LIXIL Corporation has set rules on chemical substances that are forbidden or require strict control for

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach

use in products and/or during production processes.
LIXIL's list of controlled substances can be downloaded from the links below:
English version (updated on November 17, 2016) >14 questions

8 questions

7. Regional Contribution

5 questions

2 questions

Total

66 questions

46 questions

To suppliers overseas (English) >Supply Chain Management

To suppliers in Japan (English) >We have been improving our supply chain management framework through our procurement groups
Procurement Policy with suppliers, and conduct responsible procurement surveys to grasp the actual
status, and follow up with specific improvements to be implemented based on the results.

Our People

6. Environmental Conservation of the Planet

Survey sheets

ever since the five-company merger in April 2011. Aiming for a sustainable supply chain, we share ourThree Strategic Pillars

Japan

To ensure responsible procurement, we have been strengthening supplier monitoring, adding CR

Building a Supply Chain with Decent Working Conditions andResource Allocation
Important Topic : Build a supply chain taking into consideration labor conditions and resource allocation

operations, human rights, labor, health and safety and social contribution to our supplier assessment
Environment

criteria in FY 2013, bringing the total number of questions to 66 (46 for Japan where low-risk items havebeen removed).

Society

Tasks

Responsible Supply Chain Management
Product Safety & Quality
Customer Satisfaction

achieved 85% conformity in procurement survey responses. We subsequently engaged in follow up
visits to over 100 suppliers, which had performed poorly in the survey, and are also ensuring that new
affiliated Group companies fully embrace our Procurement Policy. Procurement survey results are taken

Responsible Procurement Survey (FY2015)
Overseas

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53

LIXIL Group Corporate Responsibility Report 2016

Share
Procurement
Policy andGuidelines

into account when selecting suppliers.

ReportingPrev.

FY2015 Targets

FY2015 Results

FY2016 Targets

Japan

Overseas

Japan

Overseas

Japan

Overseas

Japan

Overseas

Percentageof transaction
amount

72%

82%

80%

60%

82%

81%

80%

60%

Percentage ofcompanies

15%

43%

15%

40%

27%

42%

15%

40%

93%

91%

85%

85%

94%

85%

90%

90%

In FY2014 and FY2015, we provided our Procurement Policy and guidelines to 80% of our suppliersin Japan and 60% outside Japan, both in terms of overall procurement transaction amount, andCustomers & Supply Chain

FY2014 Results
KPI

Japan

Conduct
surveys andfollow-up
activities

Conformity
rate ofsurveyed
items

1. CR Operations

10 questions

6 questions

2. Fair Business

8 questions

8 questions*Excluding GROHE Group S.a r.l., American Standard Brands, PERMASTEELISA GROUP

3. Human Rights

7 questions

6 questions

Japan: Procurement by operating sites in Japan

4. Labor

13 questions

9 questions

5. Health & Safety

9 questions

7 questions[Scope of application] Suppliers to LIXIL Corporation and its subsidiaries

Overseas: Procurement by operating sites overseas*FY2014 data have been revised

Product Safety & Quality

LIXIL Corporation Quality Policy
・LIXIL strives for high quality in all processes, pursuing customer satisfaction, and contributes toimproving people's comfort and lifestyles.

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
Environment
Society

・We generate the world's best quality, listening sincerely to the voice of the customer and striving
for excellence through KAIZEN activities, specifically going and seeing for ourselves and thoroughly
The LIXIL Group is committed to maintaining and strengthening our ties with our customers by
ensuring superior quality in manufacturing and services, and consistently improving our product quality

Product Safety & Quality
Customer Satisfaction

Reporting・We develop the management system that continuously improves the quality of our employees,
products and processes, and aim for business expansion.

management system to eradicate product-related accidents.

LIXIL Product Safety Principles

Action plan

KPI

Target for FY2016

Target for FY2017

Make continuous
improvements

・Serious product accidents
across the Group (number)・Zero cases of serious productaccidents across the Group

Maintain the numberof serious productInnovation

・Extend product safety
strategy by setting specific
KPIs for each technology
business

accidents across the・Build a global top level system in the field of product safety

・Disclose instruction manuals
online, for all main products
in Japan・Disclose instruction
manuals online, forall main products
across the Groupto the productquality
management
system.
Increaseawareness of
how to safely use
our products.

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

Group at zero・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

Customers & Supply Chain
Responsible Supply Chain Management

understanding the situation.

Our Approach

Integrity

LIXIL Group firmly believes that product quality is the key to earning the trust of customers and society

・Work honestly and sincerely on product safety activities in order to obtain the trust of each andand the source of corporate profitability. To ensure that this belief is shared among all employees, wehave published the LIXIL Corporation Quality Policy in 14 languages and are continuously pursuing
excellence in product manufacturing and services around the world. As significant product defects leadevery customer
・Promptly disclose clear product safety information, with customers’ safety and peace of mind as our
top priority

to customer anxiety and damage corporate reputation, our cross-functional teams work together toresolve any issues in accordance with the LIXIL Product Safety Principles.
The LIXIL Group will continue to improve its product quality management system and provide clear
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guidance on the safe use of products.

Management Structure
Our Quality & Six Sigma Division, which reports directly to the CEO, develops effective group-wide
product quality management systems and resolves quality issues across the Group, under the leadership

54
LIXIL Group Corporate Responsibility Report 2016of the Chief Technology Officer (CTO). In addition, quality assurance and issues management of each

product and service are managed under the guidance of the respective Chief Quality Officers (CQO) ateach of LIXIL's four technology businesses and LIXIL Japan Company, our distribution arm in Japan.

LIXIL Stage gate system
LIXIL Corporation incorporates check-point "gates" at five stages of product development. Specificevaluation criteria are assigned to each stage, and our internal gate keepers assess products at each

LIXIL Groupstage gate to ensure a superior end product. Regular reviews of the evaluation criteria for each gate

Corporate

also contribute to our quest for ultimate quality.

Responsibility
Report 2016
Our Approach*Each business includes subsidiaries of LIXIL Corporation.

Three Strategic Pillars
Our People
Environment
SocietyEnhancing Quality Across Entire Product Lifecycle
To ensure customer safety, LIXIL Corporation is focused on enhancing quality across the full lifecycleof a product from development through design, procurement, manufacture, distribution, and after-

Responding to Serious Product-related Accidents

sales support.
At LIXIL Corporation in Japan, whenever a product-related accident occurs, information is gathered in

Customers & Supply Chain

Design & development

Responsible Supply Chain Management

We incorporate customer opinion in the development stage and use LIXIL stagegate system to verify product quality attainment as well as LIXIL’s safety standards,
covering legal and industry standards.

Materials & partsprocurement

For procurement of materials and parts, we require our suppliers to fulfil a certain setof criteria. We cooperate with the suppliers to resolve and improve on any issues.

Commercialization,
production, sales

We only commercialize products that have gone through and passed vigorous stresstests and quality checks for durability, weather resistance, etc. Products that require
specific safety and quality labelling are clearly marked in our catalogues and othersales materials as meeting those criteria.

Preparing for productdefects & issues

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

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55

LIXIL Group Corporate Responsibility Report 2016

and disclosure procedures on product accidents under the Consumer Product Safety Act. To preventa reoccurrence, we incorporate any lessons learned into future designs, and proactively improve oursafety technology.

Reporting

Prev.

with other departments to implement on-site response and investigation of the accident. A report
is submitted to the relevant authorities within 10 days as stipulated by the government's reporting

Product Safety & Quality
Customer Satisfaction

the Quality & Six Sigma Division within 24 hours from the receipt of notification, and an emergency
notice is sent out to relevant departments. The division in charge of customer services coordinates

Information Disclosure and Communication
The LIXIL Group publishes product-specific instructions on the website to ensure safe product use.

LIXIL Group

LIXIL Corporation holds dialogues with product safety experts every year to promote product safety

Corporate

The LIXIL Group publishes product-specific instructions (Japanese only) >activities that serve social needs.

Responsibility
Report 2016

External Recognition
In FY2014, LIXIL Corporation won the Excellence Award in the large manufacturer and importer

Our Approach

category for the Best Contributors to Product Safety Awards program run by Japan's Ministry of
Economy, Trade and Industry (METI). METI commended the company for its innovative 10-year

Three Strategic Pillars
Our People
Environment
Society
Customers & Supply Chain
Responsible Supply Chain Management
Product Safety & Quality
Customer Satisfaction

Reporting

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56

LIXIL Group Corporate Responsibility Report 2016

Number of serious product-related accidents in FY2015

guarantee services and its efforts to nurture a strong product-safety culture.

2 incidents, which includes one incident with a small kitchen stove recalled in 2007.

Nurturing a Culture forEnhanced Quality Management
LIXIL Corporation holds "LIXIL Quality Month" campaigns to enhance awareness of product quality,
expand quality management systems, and encourage improvements. At the fourth LIXIL Quality
Month in 2015, selected staff from 161 divisions worldwide came together to compete on bestpractices for improvements.

FY2014 Best Contributors to Product Safety

Customer Satisfaction

Professional User Satisfaction of Products and Support Services

LIXIL Group

Corporate
Responsibility

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

Report 2016
Action plan

Our Approach
Three Strategic Pillars

Monitor customer
satisfaction levels and

KPI・Customer
satisfaction

Target for FY2016

Target for FY2017

・Establish a mechanism formeasuring and disclosing

・Continue initiative
to improve customer

reevaluate collected

towards all Groupcustomer satisfaction, andsatisfaction across thedata to help improvesatisfaction levels.

products andservices (%)

implement it across the
Group

Group

Our People
Environment
Society

LIXIL Corporation's customer service and repair centers receive approximately 290,000 inquiries each

Our Approach
To ensure that our customers enjoy great experiences in all aspects of their living spaces, the LIXILGroup is focused on developing products and services that satisfy both the end customer andCustomers & Supply Chain

construction-related professional users, and communicating with them effectively.
LIXIL Corporation engages in customer satisfaction surveys. We are committed to continuing the

Responsible Supply Chain Management
Product Safety & Quality
Customer Satisfaction

Reporting

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57

LIXIL Group Corporate Responsibility Report 2016

Enhancing Customer Satisfaction

surveys and plan to establish systems for measuring and disclosing customer satisfaction and implement
it across the Group.

month. We are working to enhance customer satisfaction by using our customer opinion databaseto visualize problems from a customer perspective and improve products and services with a PDCA
approach.
Our customer service center conducts customer satisfaction surveys twice a year. We listen carefully
to customer opinion to help improve our communications and ultimately enhance customer satisfaction.

Customer Inquiries

LIXIL Group

Corporate

ReportingResponsibility
Report 2016

Details of how we report on
our Corporate Responsibility activities and milestones.

Our Approach
Three Strategic Pillars
Our People
Environment
Society
Customers & Supply Chain
Reporting
Scope Of Reporting
CR Library
Global Reporting Initiative(GRI) Index

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58

LIXIL Group Corporate Responsibility Report 2016

Scope Of Reporting

Independent Practitioner's Assurance Report
LIXIL Group Corporation has received independent practitioner's assurance from Deloitte Tohmatsu

LIXIL Group

Corporate
Responsibility
Report 2016

Evaluation and Certification Organization Co.,Ltd. regarding a portion of its environmental performanceand employee-related information.
The LIXIL Group is committed to providing prompt and transparent disclosure, seeking to build longterm trust of our stakeholders while achieving sustainable growth that complements society. We
advance our CR activities by establishing lasting relationships with our stakeholders through appropriate
disclosure, reporting, and dialogue.
Details of our CR activities and related information are disclosed on our website. We also provide an

Our Approach

update of CR activities in our annual report. Please also see the Corporate Governance section of thiswebsite for information on our corporate governance policies.

Three Strategic Pillars
Our People

Reporting Period

Environment

Updated CR related information for FY2015 (April 1, 2015 to March 31, 2016) has been published on
August 8, 2016. We plan to update the report for the next fiscal year in August 2017.

Society
Customers & Supply Chain
Reporting

Coverage
CR activities of LIXIL Group Corporation, as well as LIXIL Corporation and other consolidated subsidiaries
are covered in the report.

Scope Of Reporting
CR Library

The scope is provided in footnotes for matters that have narrower coverage.
Please click below for further information on the scope of coverage:

Global Reporting Initiative(GRI) Index

Employee-related Information (scope, method and period)(36 KB) >Environmental performance information (scope, method and period) (35 KB) >Prev.

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59

LIXIL Group Corporate Responsibility Report 2016

Independent Practitioner's Assurance Report (185 KB) >CR Library
LIXIL Group

Corporate
Responsibility
Report 2016

Please access the PDF files below for past reports:

FY 2014
CSR Management 2015 English version (published September 2015) (5.4MB) >Our Approach
Three Strategic Pillars

FY 2013
CSR Management 2014 English version (published August 2014) (6.8MB) >Our People
Environment
Society
Customers & Supply Chain
Reporting
Scope Of Reporting
CR Library
Global Reporting Initiative(GRI) Index

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60

LIXIL Group Corporate Responsibility Report 2016

Global Reporting Initiative(GRI) Index

G4-11

a. Report the percentage of total employees covered by collective bargaining agreements.

・A Fair & Rewarding Workplace >Labor-Management Relationship

G4-12

a. Describe the organization's supply chain.

－a. Report any significant changes during the reporting period regarding the organization's
size, structure, ownership, or its supply chain, including:

LIXIL Group

Corporate
Responsibility

G4-13This report contains Standard Disclosures from the GRI G4 Sustainability Reporting Guidelines.

Report 2016
Our Approach

GENERAL STANDARD DISCLOSURES
Item

Three Strategic Pillars

Customers & Supply Chain
Reporting
Scope Of Reporting

Related Page

G4-15

G4-2

as CEO, chair, or equivalent senior position) about the relevance of sustainability to theorganization and the organization's strategy for addressing sustainability.

a. Provide a description of key impacts, risks, and opportunities.

G4-16
・Annural Report 2016/ Main risks andrisk management measures related
to business strategies (P.58-59)

G4-3

a. Report the name of the organization.

・Corporate Information

G4-4

a. Report the primary brands, products, and services.

・About Us > LIXIL at a Glance

G4-5

a. Report the location of the organization's headquarters.

・Corporate Information

G4-6

a. Report the number of countries where the organization operates, and names ofcountries where either the organization has significant operations or that are specifically
relevant to the sustainability topics covered in the report.

・Worldwide Presence

G4-7

a. Report the nature of ownership and legal form.

・Corporate Information

G4-8

a. Report the markets served (including geographic breakdown, sectors served, and typesof customers and beneficiaries).

・About Us > LIXIL at a Glance

・Net sales (for private sector organizations) or net revenues (for public sector
organizations)・Total capitalization broken down in terms of debt and equity (for private sector
organizations)

G4-17

G4-18

G4-10

61
LIXIL Group Corporate Responsibility Report 2016

・Message > Commitment to the UN
Global Compact－

equivalent documents.
b. Report whether any entity included in the organization's consolidated financial

・有価証券報告書／事業の内容 (P.8-14)(Available in Japanese)
・Annural Report 2016 / The LIXIL

statements or equivalent documents is not covered by the report.
The organization can report on this Standard Disclosure by referencing the information in
publicly available consolidated financial statements or equivalent documents.

・Annural Report 2016 / Principal
Group companies (P.74-75)

a. Explain the process for defining the report content and the Aspect Boundaries.
b. Explain how the organization has implemented the Reporting Principles for Defining
Report Content.

G4-19

a. List all the material Aspects identified in the process for defining report content.

Group in a snapshot (P.4-5)

・Material Issues > Material Issues
Selection Process・Material Issues > List of LIXIL Group's
Material Issues

a. For each material Aspect, report the Aspect Boundary within the organization, as
follows:

・Corporate Information

G4-20

c. Report the total workforce by employees and supervised workers and by gender.
d. Report the total workforce by region and gender.
e. Report whether a substantial portion of the organization's work is performed by workers ・Performance
who are legally recognized as self-employed, or by individuals other than employees orsupervised workers, including employees and supervised employees of contractors.
f. Report any significant variations in employment numbers (such as seasonal variations in
employment in the tourism or agricultural industries).

・Report whether the Aspect is material within the organization
・If the Aspect is not material for all entities within the organization (as described in G417), select one of the following two approaches and report either:–The list of entities or groups of entities included in G4-17 for which the Aspect is notmaterial or

・Scope Of Reporting > Coverage–The list of entities or groups of entities included in G4-17 for which the Aspects ismaterial
・Report any specific limitation regarding the Aspect Boundary within the organization

a. Report the total number of employees by employment contract and gender.
b. Report the total number of permanent employees by employment type and gender.

Contents Next

・Holds a position on the governance body・Participates in projects or committees
・Provides substantive funding beyond routine membership dues

a. List all entities included in the organization's consolidated financial statements or・Quantity of products or services provided

Prev.

a. List externally developed economic, environmental and social charters, principles, orother initiatives to which the organization subscribes or which it endorses.

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

a. Report the scale of the organization, including:・Total number of employees
・Total number of operations
G4-9

Chemical Substances
・Sustainable Use Of Resources >Preventing Pollution Through Strict

・Views membership as strategic
This refers primarily to memberships maintained at the organizational level.

ORGANIZATIONAL PROFILE

Global Reporting Initiative(GRI) Indexorganization.

・Environmental Management・Responsible Supply Chain
Management > Management ofinternational advocacy organizations in which the organization:

・Message > Message from the CEO

・Annural Report 2016/ Business risks(P.72-73)

CR Librarya. Report whether and how the precautionary approach or principle is addressed by the－a. List memberships of associations (such as industry associations) and national ora. Provide a statement from the most senior decision-maker of the organization (suchOur People

Society

Indicator

・Changes in the share capital structure and other capital formation, maintenance, andalteration operations (for private sector organizations)
・Changes in the location of suppliers, the structure of the supply chain, or in relationships
with suppliers, including selection and termination

Control of Chemical Substances

STRATEGY AND ANALYSIS
G4-1

Environment

G4-14・Changes in the location of, or changes in, operations, including facility openings,
closings, and expansions

G4-21

a. For each material Aspect, report the Aspect Boundary outside the organization, as
follows:
・Report whether the Aspect is material outside of the organization
・If the Aspect is material outside of the organization, identify the entities, groups ofentities or elements for which the Aspect is material. In addition, describe the geographicallocation where the Aspect is material for the entities identified
・Report any specific limitation regarding the Aspect Boundary outside the organization－

G4-22
G4-23

LIXIL Group

Corporate
Responsibility

－
G4-38

a. Provide a list of stakeholder groups engaged by the organization.

G4-25

a. Report the basis for identification and selection of stakeholders with whom to engage.

－a. Report the organization's approach to stakeholder engagement, including frequency of
G4-26

engagement by type and by stakeholder group, and an indication of whether any of theengagement was undertaken specifically as part of the report preparation process.

・これまでのステークホルダーダイア
ログについて (Available in Japanese)and how the organization has responded to those key topics and concerns, including
through its reporting. Report the stakeholder groups that raised each of the key topics
and concerns.

G4-39

G4-29
G4-30

a. Reporting period (such as fiscal or calendar year) for information provided.
a. Date of most recent previous report (if any).

・Scope Of Reporting > Reporting
Perioda. Reporting cycle (such as annual, biennial).

・Scope Of Reporting > Reporting
Perioda. Provide the contact point for questions regarding the report or its contents.

・Contact Us

Societyc. Report the reference to the External Assurance Report, if the report has been externallyassured. GRI recommends the use of external assurance but it is not a requirement to be'in accordance' with the Guidelines.
a. Report the organization's policy and current practice with regard to seeking external
assurance for the report.
b. If not included in the assurance report accompanying the sustainability report, report

G4-33

the scope and basis of any external assurance provided.
c. Report the relationship between the organization and the assurance providers.

a. Report processes for the highest governance body to ensure conflicts of interest are
avoided and managed. Report whether conflicts of interest are disclosed to stakeholders,
including, as a minimum:

G4-41

CR Library
Global Reporting Initiative(GRI) Index

G4-34

a. Report the governance structure of the organization, including committees of thehighest governance body. Identify any committees responsible for decision-making on
economic, environmental and social impacts.

G4-35

a. Report the process for delegating authority for economic, environmental and social
topics from the highest governance body to senior executives and other employees.
a. Report whether the organization has appointed an executive-level position or positions

G4-36

G4-37

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62

LIXIL Group Corporate Responsibility Report 2016

with responsibility for economic, environmental and social topics, and whether post
holders report directly to the highest governance body.
a. Report processes for consultation between stakeholders and the highest governancebody on economic, environmental and social topics. If consultation is delegated, describe
to whom and any feedback processes to the highest governance body.

・Cross-board membership
・Cross-shareholding with suppliers and other stakeholders
・Existence of controlling shareholder
・Related party disclosures

・有価証券報告書／役員の状況 (P.5358) (Available in Japanese)a. Report the highest governance body's and senior executives' roles in the development,
G4-42

approval, and updating of the organization's purpose, value or mission statements,

・Governance Framework

strategies, policies, and goals related to economic, environmental and social impacts.
G4-43
・Scope Of Reporting > Independent
Practitioner's Assurance Report－－self-assessment.
b. Report actions taken in response to evaluation of the highest governance body's
performance with respect to governance of economic, environmental and social topics,－

including, as a minimum, changes in membership and organizational practice.

・Governance Structure
・Governance Framework

・Governance Structure
・Climate Change 2016 Information
Requestcollective knowledge of economic, environmental and social topics.
respect to governance of economic, environmental and social topics. Report whether such
evaluation is independent or not, and its frequency. Report whether such evaluation is a

G4-44

・Governance Structure

a. Report the measures taken to develop and enhance the highest governance body'sa. Report the processes for evaluation of the highest governance body's performance with

GOVERNANCE

Scope Of Reporting

・Governance Frameworksocial topics are considered－

d. Report whether the highest governance body or senior executives are involved inseeking assurance for the organization's sustainability report.

Reporting・Whether and how diversity is considered・Whether and how independence is considered・Whether and how expertise and experience relating to economic, environmental and・Whether and how stakeholders (including shareholders) are involved

b. Report the GRI Content Index for the chosen option (see tables below).
G4-32

・Commitment to Corporate
a. Report whether the Chair of the highest governance body is also an executive officer (and,Governanceif so, his or her function within the organization's management and the reasons for this・LIXIL Group Board & Executive
arrangement).
Officers
committees, and the criteria used for nominating and selecting highest governance bodymembers, including:a. Report the 'in accordance' option the organization has chosen.

Environment

・Governance Frameworka. Report the nomination and selection processes for the highest governance body and its

G4-40
・Scope Of Reporting > Reporting
Periodof the commitments

・Membership of under-represented social groups
・Competences relating to economic, environmental and social impacts
・Stakeholder representation

・これまでのステークホルダーダイア
ログについて (Available in Japanese)

REPORT PROFILE

・Executive or non-executive
・Independence
・Tenure on the governance body・Number of each individual's other significant positions and commitments, and the nature
・Gendera. Report key topics and concerns that have been raised through stakeholder engagement,

G4-31

Customers & Supply Chain

Boundaries.

G4-24

G4-28

Our People

a. Report significant changes from previous reporting periods in the Scope and Aspect

a. Report the composition of the highest governance body and its committees by:－・ステークホルダーエンゲージメン
ト＞ステークホルダーについて(Available in Japanese)

G4-27

Three Strategic Pillars

the reasons for such restatements.

STAKEHOLDER ENGAGEMENT

Report 2016
Our Approacha. Report the effect of any restatements of information provided in previous reports, anda. Report the highest governance body's role in the identification and management of
G4-45

economic, environmental and social impacts, risks, and opportunities. Include the highest
governance body's role in the implementation of due diligence processes.
b. Report whether stakeholder consultation is used to support the highest governance・Governance Framework

body's identification and management of economic, environmental and social impacts,
risks, and opportunities.
G4-46
G4-47

a. Report the highest governance body's role in reviewing the effectiveness of theorganization's risk management processes for economic, environmental and social topics.
a. Report the frequency of the highest governance body's review of economic,
environmental and social impacts, risks, and opportunities.

・Governance Framework
・Risk Management
－

G4-48

a. Report the highest committee or position that formally reviews and approves theorganization's sustainability report and ensures that all material Aspects are covered.

－

G4-49

a. Report the process for communicating critical concerns to the highest governance body.

－

G4-50

a. Report the nature and total number of critical concerns that were communicated to thehighest governance body and the mechanism(s) used to address and resolve them.

－CATEGORY: ECONOMIC

a. Report the remuneration policies for the highest governance body and senior executives
for the below types of remuneration:

・Fixed pay and variable pay:
–Performance-based pay–Equity-based pay

LIXIL Group

G4-51

Corporate–Bonuses–Deferred or vested shares・Sign-on bonuses or recruitment incentive payments
・Termination payments

・Corporate Officer Compensation
・有価証券報告書／役員報酬等 (P.6971) (Available in Japanese)・Clawbacks
・Retirement benefits, including the difference between benefit schemes and contribution
rates for the highest governance body, senior executives, and all other employees
b. Report how performance criteria in the remuneration policy relate to the highest
governance body's and senior executives' economic, environmental and social objectives.

Responsibility
Report 2016
G4-52

a. Report the process for determining remuneration. Report whether remuneration
consultants are involved in determining remuneration and whether they are independentof management. Report any other relationships which the remuneration consultants have・Corporate Officer Compensation

G4-53

a. Report how stakeholders' views are sought and taken into account regarding
remuneration, including the results of votes on remuneration policies and proposals, if－

Three Strategic Pillars
G4-54

Our People

a. Report the ratio of the annual total compensation for the organization's highestpaid individual in each country of significant operations to the median annual totalcompensation for all employees (excluding the highest-paid individual) in the same－a. Report the ratio of percentage increase in annual total compensation for theorganization's highest-paid individual in each country of significant operations to theCustomers & Supply Chain
Reportingmedian percentage increase in annual total compensation for all employees (excluding thehighest-paid individual) in the same country.

G4-56

a. Describe the organization's values, principles, standards and norms of behavior such ascodes of conduct and codes of ethics.

G4-57

a. Report the internal and external mechanisms for seeking advice on ethical and lawful
behavior, and matters related to organizational integrity, such as helplines or advice lines.
a. Report the internal and external mechanisms for reporting concerns about unethical

G4-58

Financial implications and other risks and opportunities for the organization's activities
due to climate change

・Climate Change 2016 Information
Request

G4-EC3Coverage of the organization's defined benefit plan obligations

・有価証券報告書／確定給付制度(P.124-127) (Available in Japanese)

G4-EC4

Financial assistance received from government

Not applicable

Aspect: Market Presenceor unlawful behavior, and matters related to organizational integrity, such as escalation
through line management, whistleblowing mechanisms or hotlines.

Ratios of standard entry level wage by gender compared to local minimum wage atsignificant locations of operation
Proportion of senior management hired from the local community at significant locationsof operation－－

G4-EC7Development and impact of infrastructure investments and services supported

・Global Sanitation & Hygiene

G4-EC8Significant indirect economic impacts, including the extent of impacts

・Global Sanitation & Hygiene
・About Us > LIXIL at a Glance

G4-EC9・Our Values

・Compliance・Code of Contact
・Compliance > Internal Concernraising System
・Compliance > Internal Concernraising System
・Compliance > Receiving Compliance
Information from Business Partners

Proportion of spending on local suppliers at significant locations of operation－

CATEGORY: ENVIRONMENTAL
Item

Indicator

Related Page

Aspect: Materials
G4-EN1

Materials used by weight or volume

・Performance > Material Balance(INPUT)

G4-EN2

Percentage of materials used that are recycled input materials－

Aspect: Energy
・Environmental Management

Scope Of Reporting

DMA

CR Library

G4-EN3

Energy consumption within the organization

・Performance > Material Balance(INPUT)

G4-EN4

Energy consumption outside of the organization

・Climate Change 2016 Information
Request

G4-EN5

Energy intensity

・Climate Change 2016 Information
Request

G4-EN6

Reduction of energy consumption

・Performance > Material Balance(INPUT)

G4-EN7

Reductions in energy requirements of products and services－

G4-EN8

Total water withdrawal by source

・Sustainable Use Of Resources > Listof Major River Basin

G4-EN9Water sources significantly affected by withdrawal of water－

G4-EN10Percentage and total volume of water recycled and reused－

Global Reporting Initiative(GRI) Index

SPECIFIC STANDARD DISCLOSURES
Item

Indicator

Related PageDISCLOSURES ON MANAGEMENT APPROACH

Prev.

G4-EC2

Aspect: Procurement Practices－

ETHICS AND INTEGRITY

Society・About Us > LIXIL at a Glance
・LIXIL グループの概略 (Available inJapanese)

Aspect: Indirect Economic Impacts

country.

G4-55

Related Page

Direct economic value generated and distributed

G4-EC6applicable.

Indicator

G4-EC1

G4-EC5

with the organization.

Our Approach

Environment

Item
Aspect: Economic PerformanceContents Next
63

LIXIL Group Corporate Responsibility Report 2016

G4-DMAa. Report why the Aspect is material. Report the impacts that make this Aspect material.
b. Report how the organization manages the material Aspect or its impacts.
c. Report the evaluation of the management approach, including:・The mechanisms for evaluating the effectiveness of the management approach
・The results of the evaluation of the management approach・Any related adjustments to the management approach・Material Issues Selection Process・Key Performance Indicators

Aspect: Water

Aspect: Overall

Aspect: Biodiversity

LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach

G4-EN11

Operational sites owned, leased, managed in, or adjacent to, protected areas and areas ofhigh biodiversity value outside protected areas－

G4-EN12

Description of significant impacts of activities, products, and services on biodiversity inprotected areas and areas of high biodiversity value outside protected areas－

G4-EN13

Habitats protected or restored－

G4-EN14

Total number of IUCN Red List species and national conservation list species with habitats
in areas affected by operations, by level of extinction risk－

DMA

G4-EN15

Direct greenhouse gas (GHG) emissions (Scope 1)

G4-EN16

Energy indirect greenhouse gas (GHG) emissions (Scope 2)

G4-EN17

Other indirect greenhouse gas (GHG) emissions (Scope 3)

Our People

Society

Reporting

CR Library
Global Reporting Initiative(GRI) Index

・Responsible Supply Chain
Management

DMA

G4-EN32

Percentage of new suppliers that were screened using environmental criteria

・Greenhouse Gas Reduction
・Environmental Management

G4-EN33

・Performance > Material Balance(OUTPUT)

Aspect: Environmental Grievance Mechanisms

・Climate Change 2016 Information
Request

G4-EN34

・Performance > Material Balance(OUTPUT)・Climate Change 2016 Information
Request・Performance > Material Balance(OUTPUT)・Climate Change 2016 Information
Request

G4-EN18

Greenhouse gas (GHG) emissions intensity

・Climate Change 2016 Information
Request

G4-EN19

Reduction of greenhouse gas (GHG) emissions

・Climate Change 2016 Information
Request

G4-EN20

Emissions of ozone-depleting substances (ODS)－

G4-EN21

NOx, SOx, and other significant air emission－

Significant actual and potential negative environmental impacts in the supply chain andactions taken

Number of grievances about environmental impacts filed, addressed, and resolved throughformal grievance mechanisms

Item

Indicator

G4-LA1
G4-LA2G4-LA3

Total number and rates of new employee hires and employee turnover by age group,
gender and region
Benefits provided to full-time employees that are not provided to temporary or part-time
employees, by significant locations of operation
Return to work and retention rates after parental leave, by gender

G4-EN23

Total weight of waste by type and disposal method

・Performance > Material Balance(OUTPUT)

G4-LA4G4-EN24

Total number and volume of significant spills

Not applicable

Aspect: Occupational Health and Safety

G4-EN25

Weight of transported, imported, exported, or treated waste deemed hazardous under
the terms of the Basel Convention2 Annex I, II, III, and VIII, and percentage of transported
waste shipped internationally

Not applicable

G4-LA5

Identity, size, protected status, and biodiversity value of water bodies and related habitats
significantly affected by the organization's discharges of water and runoff－

Minimum notice periods regarding operational changes, including whether these are
specified in collective agreements

Percentage of total workforce represented in formal joint management–worker healthand safety committees that help monitor and advise on occupational health and safety

Contents Next

Aspect: Products and Services

LIXIL Group Corporate Responsibility Report 2016－

・A Fair & Rewarding Workplace

・Work Safety & Well-being

G4-LA7

Workers with high incidence or high risk of diseases related to their occupation

・Work Safety & Well-being

・環境配慮設計・エコ商品 (Available
in Japanese)

G4-LA8

Health and safety topics covered in formal agreements with trade unions

・A Fair & Rewarding Workplace >Labor-Management Relationship

Extent of impact mitigation of environmental impacts of products and services－

Aspect: Training and Education

Percentage of products sold and their packaging materials that are reclaimed by category－

DMA

Not applicable

Aspect: Transport

64

・A Fair & Rewarding Workplace

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, andtotal number of work-related fatalities, by region and by gender

G4-EN28

G4-EN30－

G4-LA6

G4-EN27

G4-EN29－

programs

・Talent Development

Aspect: Compliance

Prev.

Related Page

・A Fair & Rewarding Workplace

DMA

Aspect: Labor/Management Relations

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations－

Aspect: Employment－

DMA・Responsible Supply Chain
Management > Supply Chain
Management

SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK

Total water discharge by quality and destination

G4-EN26

・Responsible Supply Chain
Management > Building a Supply
Chain with Decent Working

CATEGORY: SOCIAL

G4-EN22

Scope Of Reporting－

Conditions and Resource Allocation

Aspect: Effluents and Waste

Customers & Supply Chain

Total environmental protection expenditures and investments by type

Aspect: Supplier Environmental Assessment

Aspect: Emissions

Three Strategic Pillars

Environment

G4-EN31

Significant environmental impacts of transporting products and other goods and materials ・Performance > Material Balance
for the organization's operations, and transporting members of the workforce(OUTPUT)

G4-LA9Average hours of training per year per employee by gender, and by employee category

・Talent Development > Annual
training hours and costs per

G4-LA10Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings

・Talent Development > Our Approachto Talent Development

G4-LA11Percentage of employees receiving regular performance and career development reviews,
by gender and by employee category

・Talent Development > Evaluation
Framework

employeeAspect: Diversity and Equal Opportunity

Aspect: Indigenous Rights
・Diversity & Equal Opportunity

DMA
Composition of governance bodies and breakdown of employees per employee category
G4-LA12LIXIL Group

Corporate
Responsibility
Report 2016
Our Approach
Three Strategic Pillars
Our People
Environment

according to gender, age group, minority group membership, and other indicators ofdiversity

G4-LA13

Ratio of basic salary and remuneration of women to men by employee category, by
significant locations of operation

G4-LA14

G4-LA15Significant actual and potential negative impacts for labor practices in the supply chain
and actions taken

Customers & Supply Chain
Reporting・Responsible Supply Chain
Management > Building a Supply
Chain with Decent Working
Conditions and Resource Allocation
・Responsible Supply Chain
Management > Supply Chain
Management

Aspect: Labor Practices Grievance Mechanisms

G4-LA16

Number of grievances about labor practices filed, addressed, and resolved through formal
grievance mechanisms

Significant actual and potential negative human rights impacts in the supply chain andactions taken

Indicator

Related Page

G4-HR1

Total number and percentage of significant investment agreements and contracts that
include human rights clauses or that underwent human rights screening－

DMA
Number of grievances about human rights impacts filed, addressed, and resolved throughformal grievance mechanisms

G4-HR2

Total hours of employee training on human rights policies or procedures concerning
aspects of human rights that are relevant to operations, including the percentage of
employees trained－

G4-HR3

Total number of incidents of discrimination and corrective actions taken

G4-HR4

Operations and suppliers identified in which the right to exercise freedom of associationand collective bargaining may be violated or at significant risk, and measures taken to
support these rights－

Related Page－

G4-HR6

Operations and suppliers identified as having significant risk for incidents of forced orcompulsory labor, and measures to contribute to the elimination of all forms of forced orcompulsory laborassessments, and development programs
Operations with significant actual and potential negative impacts on local communities

Percentage of security personnel trained in the organization's human rights policies orprocedures that are relevant to operations－

側面：腐敗防止Total number and percentage of operations assessed for risks related to corruption andthe significant risks identified－

G4-SO4

Communication and training on anti-corruption policies and procedures・Compliance > Compliance Training

G4-SO5

Confirmed incidents of corruption and actions taken－

G4-SO6

Total value of political contributions by country and recipient/beneficiary－

G4-SO7

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly
practices and their outcomes－

Not applicable

Aspect: Compliance
G4-SO8

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations

Not applicable－

Aspect: Supplier Assessment for Impacts on Society－

G4-SO9Percentage of new suppliers that were screened using criteria for impacts on society

・Responsible Supply Chain
Management > Building a Supply
Chain with Decent Working
Conditions and Resource Allocation－

G4-SO10Significant actual and potential negative impacts on society in the supply chain andactions taken・Responsible Supply Chain
Management > Supply Chain
Management

Aspect: Security Practices
G4-HR7－

Aspect: Anti-competitive Behavior－
and measures taken to contribute to the effective abolition of child labor－
Percentage of operations with implemented local community engagement, impact

Aspect: Public Policy

Aspect: Child Labor

Operations and suppliers identified as having significant risk for incidents of child labor,

G4-SO2

G4-SO3

Aspect: Non-discrimination

DMA

LIXIL Group Corporate Responsibility Report 2016－

Indicator

DMA
G4-SO1－

Aspect: Forced or Compulsory Labor

65

・Responsible Supply Chain
Management > Supply Chain
Management

Aspect: Human Rights Grievance Mechanisms

Item

Aspect: Investment

G4-HR5

Contents Next

G4-HR11

Chain with Decent Working
Conditions and Resource Allocation

Aspect: Local Communities

DMA

Prev.

Percentage of new suppliers that were screened using human rights criteria

SUB-CATEGORY: SOCIETY

SUB-CATEGORY: HUMAN RIGHTS

Scope Of Reporting
Global Reporting Initiative(GRI) Index

G4-HR10・Responsible Supply Chain
Management > Building a Supply－

Aspect: Freedom of Association and Collective Bargaining

CR Library－・Responsible Supply Chain
Management

G4-HR12－DMA

reviews or impact assessments

DMA・Responsible Supply Chain
Management

Percentage of new suppliers that were screened using labor practices criteria

Total number and percentage of operations that have been subject to human rights

Aspect: Supplier Human Rights Assessment－

Aspect: Supplier Assessment for Labor Practices
DMA－

Aspect: Assessment
G4-HR9Aspect: Equal Remuneration for Women and Men

Item

Society・Diversity & Equal Opportunity

Total number of incidents of violations involving rights of indigenous peoples and actions
taken

G4-HR8Aspect: Grievance Mechanisms for Impacts on Society
G4-SO11

LIXIL Group

Corporate
Responsibility
Report 2016

Number of grievances about impacts on society filed, addressed, and resolved throughformal grievance mechanisms

SUB-CATEGORY: PRODUCT RESPONSIBILITY
Item

Indicator

・Product Safety & Quality

DMA
G4-PR1

Percentage of significant product and service categories for which health and safety
impacts are assessed for improvement
Total number of incidents of non-compliance with regulations and voluntary codes
concerning the health and safety impacts of products and services during their life cycle,
by type of outcomes

Our People－

DMA
G4-PR3G4-PR4G4-PR5

Environment
Society－
・Product Safety & Quality >Responding to Serious Productrelated Accidents

Aspect: Product and Service LabelingType of product and service information required by the organization's procedures for

Three Strategic Pillars

Related Page

Aspect: Customer Health and Safety

G4-PR2

Our Approach－product and service information and labeling, and percentage of significant product andservice categories subject to such information requirements
Total number of incidents of non-compliance with regulations and voluntary codes
concerning product and service information and labeling, by type of outcomes
Results of surveys measuring customer satisfaction

・環境配慮設計・エコ商品＞エコ訴求
マーク (Available in Japanese)－・Customer Satisfaction > Enhancing
Customer Satisfaction

Aspect: Communications Marketing
G4-PR6

Sale of banned or disputed products

Not applicable

Total number of incidents of non-compliance with regulations and voluntary codes
G4-PR7concerning marketing communications, including advertising, promotion, and sponsorship,by type of outcomes

Not applicable

Aspect: Privacy Customer

Customers & Supply Chain
Reporting
Scope Of Reporting
CR Library
Global Reporting Initiative(GRI) Index

Prev.

Contents Next
66

LIXIL Group Corporate Responsibility Report 2016

G4-PR8

Total number of substantiated complaints regarding breaches of customer privacy andlosses of customer data

Not applicable

Aspect: Compliance
G4-PR9

Monetary value of significant fines for non-compliance with laws and regulations
concerning the provision and use of products and services

Not applicable

LIXIL Group Corporation
36F, Kasumigaseki Building, 3-2-5, Kasumigaseki,
Chiyoda-ku, Tokyo 100-6036, Japanwww.lixil.com