Global Sanitation & Hygiene

LIXIL’s Impact Methodology

OVERVIEW:
Global sanitation and hygiene is one of the strategic pillars of LIXIL’s Impact Strategy, and an importantdriver towards realizing our corporate purpose to make better homes a reality for everyone,everywhere.
LIXIL set the target of improving sanitation and hygiene for 100 million people around the world by2025 through the introduction of innovative and affordable toilet and hand hygiene solutions.
Until now, this was primarily achieved by delivering toilet solutions to households, and a simple
calculation was applied to estimate the number of people reached per toilet per household. However,as our portfolio of products and scope of activities has expanded, and the approach to measurement
has evolved in the water, sanitation and hygiene (WASH) sector, we are now updating ourmethodology to more accurately reflect the impact of our activities.
This document aims to clarify in plain language LIXIL’s intent and impact methodology, as we continue
to report progress towards our targets.

1CONTEXT:LIXIL’s target of improving sanitation and hygiene for 100 million people around the world by 2025 is
an intentionally ambitious goal to challenge us to develop innovative business models at scale. By
doing so, we can maximize our impact toward the global Sustainable Development Goal (SDG) 6.
Measuring impact is necessary to ensure transparency and to track progress toward our 100 million
goal. LIXIL’s methodology is designed to be simple and to provide clarity on output, while minimizing
complex first-party verification that would divert important resources from market-building efforts.
LIXIL’s SATO brand, which provides innovative and affordable toilet and handwashing solutions
globally, is the primary driver of the impact. Due to the business model of SATO, LIXIL has limited
visibility into the final purchase and therefore end-user impact verification is limited. As a result, wewere using a simple multiplier, based on an assumption of the number of people using each unit sold.
At the time, SATO’s portfolio was predominantly one product, the original SATO toilet pan, and it wasused almost exclusively by households with only a few known and documented exceptions (e.g.,refugee camp installations.) The average global household size at the time was estimated as 5 people
and therefore impact was determined by:Previous Impact Calculation = the number of units shipped x 5 people
Since 2020, the SATO brand has expanded to a broader portfolio of toilet and hand hygiene solutions
applicable in a range of use situations. The portfolio now includes multiple potential front-end toilets(SATO Pans, SATO Stool); connection systems (e.g., I-trap and V-trap for off-set construction); andaccessories (e.g., adapters, foot rests, etc.) With the broader portfolio, we identified two key issues
requiring a more complex methodology for measurement:
1. The risk of double counting: With the portfolio now including both toilets and connection
systems, simply using the number of units of product shipped would not eliminate cases
where two products were used together for a single installation (e.g. a SATO pan together withan I-Trap connection). In such cases, counting the two units during the impact calculation
would overstate the impact.
2. Undercounting due to varied use cases: Due to the expanded portfolio and scope of SATO
activities, increasingly products have been used in non-household settings, such as schools orhealth care facilities. In such cases, the average number of people using each product, andtherefore the impact, is higher than in household use.
Therefore, benefiting from improvements in internally available shipment data, we undertook aninternal review, engaging our global partners on their methodology as well as collecting andevaluating direct installation data from partners wherever possible. The resulting revised impact
methodology aims to address the risks of double counting and under counting and to account for thelatest reported figures from partners in order to determine impact progress in a robust, consistent, andtransparent way.
Importantly, we will continue to report our impact in terms of people or consumers reached, and notbeneficiaries. LIXIL firmly believes in a market-based approach to addressing the water, sanitation, andhygiene challenges and aims to create a sustainable business to ensure that customers will always
have access to LIXIL products. This is particularly true for SATO through its new markets where theGlobal Sanitation and Hygiene: LIXIL’s Impact Methodology published 25 June 20242

consumer may be experiencing the dignity of choice for the first time. We collaborate with partners for
guidance on best practices for working in new contexts, cultures, and geographies.

UPDATED IMPACT METHODOLOGY:
LIXIL will measure the impact of our global sanitation and hygiene activities and progress towards our
100 million people target using a volume-based approach, identifying the volume of relevant (i.e.,
contributing to impact) SATO toilet and handwashing units shipped and using a use-case appropriate
multiplier to determine reach.
LIXIL now follows a 4-step process:1. Calculate the number of units shipped to the final destination, and adjust the volume touse in the impact calculation to eliminate the risk of over or double counting. Multiple
components may go into a single toilet installation. As we convert from our volume shipped toimpact, we want to adjust the volume by a) removing component parts (e.g., collection boxes)and b) adjusting for known sets shipped together (e.g., Pans sold with V-Traps.) Our total
volume of shipped units reported each year is therefore greater than the number of units thatare used in the calculation of impact.
2. Allocate the units at the final destination by use case to accurately identify the impact
multiplier consistent with sector partners:○ Household use: With the final destination of products increasingly being tracked andknown internally, use the average household size for the final destination country asreported by UN Population.1 If data is not available, or if the final destination is notknown, an average household size of 6 people (per toilet or handwashing station) isused, reflecting the average household size across SATO’s target markets.
○ School: Average students per toilet seat varies significantly by country (observed 18 186, JMP 20202) as do national-level target guidelines (20 - 50+ students per toilet.)School toilets are also used by community members and school staff, and will be usedby different groups of students as students matriculate over an installation lifetime. To
address this wide variation, a multiplier of 100 is used to reflect lifetime reach of thetoilet or handwashing station. As schools are often reached with implementation
partners, the actual data reported from partners is prioritized (see Step 3.)○ Healthcare facility: Average users reached at healthcare facilities varies significantly
by country, type of facility, and geographic location with recommendations foreffective infection prevention and control driving number of toilets recommended byfacility and/or by beds (JMP August 20223). As noted in Step 3, priority is given toactual reported data where available; if actual data is not available, a multiplier of 250
people per toilet or handwashing station is used to reflect staff, outpatient andinpatient capacity, and community reach.

UN Population: Household Size and Composition(https://www.un.org/development/desa/pd/data/household-size-and-composition)2
JMP 2020: Progress on Drinking Water, Sanitation, and Hygiene in Schools, page 32(https://washdata.org/sites/default/files/2020-09/JMP-2020-WASH-schools.pdf)
3
JMP: Progress on WASH in health care facilities 2000–2021: Special focus on WASH and infection prevention and control(IPC) (https://washdata.org/reports/jmp-2022-wash-hcf)
1

Global Sanitation and Hygiene: LIXIL’s Impact Methodology published 25 June 20243

Shared toilets: For example, those used by multiple households in the community.
Based on the approach used by UNICEF, an estimate of 20 people per toilet is used
(UNICEF4), reflecting approximately four households.
○ Community and/or public toilets: For example, toilets used by an entire communityand likely in a public use space. Number of users will vary significantly based on thespecific setting and daily foot traffic. Where actual data is not available, 100 people on
average per toilet is used (higher than shared household toilets and is comparable tocommunity-level use as school.) Note: This is not currently a known common use casefor SATO.
○ Refugee or internally displaced persons (IDP) camp/settlement: The target for toilet
access in emergency settings is less than 50 users per toilet (UNHCR5) while observed
ratios can be significantly higher6. When implementer-reported data is not available toreflect the specific project setting, an estimate of 150 people per installation is used toreflect a) SATO’s deployment early in an emergency with trench toilets, and ultimately
shared toilets and household toilets; and b) the durability of the SATO installation
extending its lifetime reach (as different users enter the refugee or IDP setting.)○ Unknown: If the final use case is not known, household usage figures will be applied(most conservative impact multiplier.)
3. Adjust for confirmed actual reach as reported by implementation partners: Critically,
where confirmed data is provided by partners on exact reach and impact (e.g., as part of
implementing partners’ own data collection or verification), this data would take precedence
and be used in lieu of the standardized multiplier figures provided above. This is most criticalin the highest potential impact areas such as in institutions (schools, healthcare facilities) andin humanitarian contexts.
4. Account for potential for loss: Adjust the estimated impact down by 5% to yield aconservative estimate of final impact. This reduction may capture variability in supply chains,potential damage to products, or other reasons the impact would not be achieved that havenot already been captured in reported numbers, as well as the risk where the solutions areinstalled in overlapping settings.
○IMPLEMENTATION AND ADJUSTMENTS TO REPORTED IMPACT PROGRESSLIXIL annually reports the progress toward our impact target. To account for the improved data andadjustments, the following steps were taken:
For data prior to Fiscal Year Ending 2020 (FYE2020), representing FYE2013 - FYE2019, impact waspreviously predominantly reported by multiplying the number of units shipped by 5 people as themajority of use cases were in households. To improve the accuracy of the impact calculation during
this period, the volume was adjusted to account for known non-household usage as reported by
4

UNICEF: Core Commitments for Children (https://www.corecommitments.unicef.org/ccc-2-3-7)
UNHCR Emergency Handbook: WASH in Emergencies(https://emergency.unhcr.org/emergency-assistance/water-sanitation-and-hygiene/wash-emergencies)
6
Example from Bangladesh: Exploring waste and sanitation-borne hazards in Rohingya refugee camps in Bangladesh.
Chowdhury et al; Journal of Water, Sanitation and Hygiene for Development 1 August 2022
(https://iwaponline.com/washdev/article/12/8/587/89424/Exploring-waste-and-sanitation-borne-hazards-in)
5

Global Sanitation and Hygiene: LIXIL’s Impact Methodology published 25 June 2024

4

partners, and the impact multiplier number was updated to reflect the average household size or use
case reach at the final destination. The resulting difference is a cumulative impact of approximately 21
million people compared to a reported 12 million people through 2019.
FYE2013 - 2016

FYE2017

FYE2018

FYE2019

Total Shipped Volume1,141,166

279,017446,006

811,633Cumulative Volume1,141,166

1,420,183

1,866,189

2,677,822

Cumulative Impact Reported

5,705,830

7,100,915

9,330,945

12,000,000

400

40,080445,606

771,553

29,6288,315

Adjusted Volume: Removing double counting and accessories [units]
Double-counting of I-Traps and V-Traps(Remove where sold with a SATO Pan orStool)

Adjusted Volume1,141,166

279,017

Adjusted Volume: known use cases [units]
Refugee Camp (Donations)

3,600

Healthcare Facilities (Donations)

4,298

Schools (Donations)

1,000

Total Volume: Households

1,136,566

Household (Donations)643,755

Households (Sales)

492,811

13,072
279,017

279,017415,978

745,868

19,534131,415

396,444614,453

4,444,200

1,247,250

Adjusted Impact [people reached]
Refugee Camp (Donations)

540,000

Healthcare Facilities (Donations)

1,074,500

Schools (Donations)

100,000

Total: Households

5,973,861

1,307,200
1,413,717

2,144,724

3,815,421

96,440694,439

Household (Donations)3,200,983

Households (Sales)

2,772,878

1,413,717

2,048,284

3,120,982

Adjusted Total Impact

6,613,861

1,413,717

6,588,924

7,444,371

Cumulative Adjusted Impact6,613,861

8,027,578

14,616,502

22,060,873-330,693-70,686-329,446-372,219

Loss-adjusted Total Impact

6,283,168

1,343,031

6,259,478

7,072,152

Cumulative Loss-adjusted Impact

6,283,168

7,626,199

13,885,676

20,957,829

5% loss

For data FYE2020 - FYE2024, the expanded SATO portfolio includes comprehensive solutions for
multiple toilet configurations (direct pit latrine and off-set installations) as well as now a handwashingstation. Due to the expanded portfolio, the risk of double counting multiple components increased.
However, improvements in internal data validation and partner reporting allowed for understanding ofproduct-specific volumes as well as visibility into products shipping together and their final use.

Global Sanitation and Hygiene: LIXIL’s Impact Methodology published 25 June 20245

As a result, although downward reductions were made to the impact figures due to potential
double-counting, overall impact increased due to more accurate reporting of use cases. The 5% loss
adjustment was also applied in line with the improved methodology. A summary of the adjustments
are below:
FYE2020

FYE2021

FYE2022

FYE2023

FYE2024

Total Shipped Volume1,167,583

1,253,025

1,374,839

1,014,973

1,122,571

Cumulative Volume3,845,405

5,098,430

6,473,269

7,488,242

8,610,813

18,500,000

25,000,000

35,000,000

45,000,000

Cumulative Reported Impact－

Adjusted Volume: Removing double counting and accessories [units]
Double-counting of I-Traps andV-Traps (Remove where sold with a SATO
-51,024-28,132

0-33,985-31,816

adapters, collection boxes)-138,725-109,723-45,313-72,782-36,187

Adjusted Volume (see note)

977,834

1,115,170

1,329,526

908,207

1,054,568

2,421

2,300

Pan or Stool)

Remaining Accessories (foot rests,Adjusted Volume: known use cases [units]
Refugee Camp (Donations)
Healthcare Facilities (Donations)

522

Schools (Donations)

64,000

5,772

90,00022,260Total Volume: Households

861,374

1,268,310

1,037,678

904,942

1,031,658

Household (Donations)

131,025

425,583

238,781

202,798

297,187

Households (Sales)

730,349

842,727

798,897

702,144734,471

121,050

345,000

Adjusted Impact [people reached]
Refugee Camp (Donations)
Healthcare Facilities (Donations)

1,305,000

Schools (Donations)

6,400,000

554,650

9,000,000

Total: Households

4,690,912

8,486,796

5,716,200

4,917,140

5,677,953

Household (Donations)

690,394

3,942,064

1,409,162

1,162,100

1,706,202

Households (Sales)

4,000,518

4,544,732

4,307,038

3,755,040

3,971,751

Adjusted Total Impact

11,090,912

10,467,496

15,061,200

4,917,140

7,903,953

Cumulative Adjusted Impact

33,151,785

43,619,281

58,680,481

63,597,622

71,501,574-554,546-523,375-753,060-245,857-395,198

Loss-adjusted Total Impact

10,536,367

9,944,121

14,308,140

4,671,283

7,508,755

Cumulative Loss-adjusted Impact

31,494,196

41,438,317

55,746,457

60,417,740

67,926,496

5% loss

2,226,000

Note: Due to the changes in data tracking for FYE2020 - FYE2024 for the volume shipped and use cases, total annual volumes may be different
between the adjusted volume and the volume for allocation for use cases, notably for FYE2020 - FYE2022. Data refinement continues.

Global Sanitation and Hygiene: LIXIL’s Impact Methodology published 25 June 2024

6Incorporating the updated impact methodology and based on a review of partner-reported andinternal documentation, LIXIL has reached approximately 68 million people through the end ofFYE2024 (through 31 March 2024).
ONGOING REPORTING AND DATA REVIEW:
LIXIL’s goal is to reach 100 million people by the end of calendar year 2025. We will report our progress
toward this goal through FYE2026 (through 31 March 2026) in order to reflect the impact of ourinvestment in this time period. Volume data, and therefore ultimately our estimate of reach, will bereported within 60 days of each fiscal year half close. Only updates to actuals reported by partners will
be used to update information for the immediately previous fiscal year. Further validation of theFYE2020-2024 volume and use case data remains underway though only minor revisions are expected.
A NOTE ON INDIRECT IMPACT:LIXIL is grateful for the opportunity to engage broadly in the water, sanitation, and hygiene sector tocontribute to the acceleration of progress of achieving the Sustainable Development Goal 6: Ensuring
safe water, sanitation, and hygiene for all. Beyond our SATO brand activities, LIXIL engages in projectwork to improve local area sanitation and hygiene (e.g., supporting Lowndes County Alabama) and topromote SDG awareness education in schools in Japan.
In addition, through partnerships with UNICEF, USAID, Sanitation and Water for All, Toilet Board
Coalition, IAPMO/IWISH, among many others, LIXIL is leveraging our voice to advocate for policies,
local funding, and standards and regulations for an overall stronger enabling environment and arobust sanitation economy. For example, Make a Splash!, LIXIL’s shared-value partnership UNICEF,
began tracking indirect impact based on UNICEF’s guidelines and approach in 2023. For 2023, Make aSplash! reported7 a total of 4.6 million in indirect impact: 2.2 million gaining access to sanitation and2.4 million to hand hygiene through building the capacity of community health volunteers, stimulating
microfinance for low-income individuals, among other systems strengthening activities.
LIXIL aims to contribute to overall gains in access to safe sanitation and hygiene through these
additional paths, even though it is not tracked or reported directly toward our 100 million goal.
CONTACT POINT:
For questions or clarifications on LIXIL’s Impact Methodology and progress, please contact
pr_global@lixil.com.

7

UNICEF and LIXIL Make a Splash! Progress Overview:https://www.unicef.org/reports/make-splash-partnership-progress-report-overview-20222023

Global Sanitation and Hygiene: LIXIL’s Impact Methodology published 25 June 20247