For Immediate Release
July 15, 2020
LIXIL Group Corporation

LIXIL Included In FTSE4Good Index Series and MSCI Japan Empowering
Women Index for a Fourth Consecutive YearTokyo, Japan – LIXIL Group Corporation (“LIXIL”, TSE Code: 5938), maker of pioneering water and housing
products, announced today that it has been included in this year’s FTSE4 Good Index Series, a key index forsocially responsible investment (SRI) , and the MSCI Japan Empowering Women Index of Japanesecompanies, demonstrating exceptional measures in the area of gender diversity. This is the fourth year in arow LIXIL Group has been selected for inclusion in these indices.

The FTSE4Good Index Series comprises firms recognized for their performance in all aspects of ESG(environmental, social, and governance), selected based on investment decision and risk analysis. Candidates
are evaluated by an independent committee in more than 300 categories encompassing each of the three
ESG pillars in order to determine the company’s risk exposure level and performance. LIXIL Group was also
selected for inclusion in the FTSE Blossom Japan Index1 of Japanese stocks.
The MSCI Japan Empowering Women Index (WIN) focuses on the “social” aspect of ESG, comprising
companies with high proportions of female managers and employees. Companies that encourage theparticipation of women in the workplace, and actively recruit and promote women, are considered better
placed to adapt to the challenges of Japan’s shrinking workforce.
Jin Montesano, Chief People Officer of LIXIL Group, said, “I am extremely pleased that LIXIL Group has beenrecognized again, for a fourth consecutive year. Our inclusion in these international indices reflects theprogress LIXIL Group has made in advancing ESG activities and embedding this within our business
operations. We believe that these ESG initiatives not only benefit our customers, business partners,communities, and other stakeholders, but also help employees take pride in LIXIL and enhance engagement.
Going forward, by pursuing responsible corporate management and sustainable innovation, LIXIL Group willcontinue to make better homes a reality for everyone, everywhere.”
LIXIL Group’s Main ESG Measures
Interest is ESG investing is rising. Through its business activities, LIXIL is actively pursuing measures forcorporate responsibility that help solve the issues facing society.
1|P a g eOne of LIXIL’s three strategic pillars for corporate responsibility is “Water Conservation & Environmental
Sustainability.” Based on its Environmental Vision 2050, LIXIL is working to reduce the environmental load inits business activities, offer environmentally responsible products and services, and help realize the transition
to a circular economy.
One of its initiatives is the substantial reduction in factory waste volume: LIXIL Group has achieved a waste
recycling rate of more than 95% in Japan and Europe. LIXIL’s Nabari Plant in Mie Prefecture put in place asystem to eliminate wood waste by selling the leftover wood scraps that had previously been processed aswaste as biomass fuel. Furthermore, the Rayong Plant and Rangsit Plant in Thailand successfully began
recycling the sludge, mold excess and ceramic waste they had been burying in landfills as raw material forconcrete, achieving a recycling rate of 90.5% in the fiscal year ended March 2020. In addition to efforts suchas these to reduce the waste generated directly from business activities, LIXIL is also promoting the use ofsustainable materials. In 2018, GROHE began replacing the material used in its packaging with a moresustainable alternative, and by 2021 expects to eliminate up to 35 million units of plastic packaging.
In the area of Governance, LIXIL Group has appointed an outside director as chairperson of the Board ofDirectors. The company operates a governance structure with a Nomination Committee, Audit Committee,and Compensation Committee under the Board of Directors, and last year also additionally established aGovernance Committee as a permanent committee to monitor and supervise corporate governance.
Members and the Chairperson of each of these committees are Outside Directors. The Nomination
Committee also announced details of strengthened processes for the selection of candidates for the Board ofDirectors and Executive Officers. In addition, the merger between LIXIL Group and LIXIL Corporation isscheduled to be completed in December 2020 to enhance the company’s agility by enabling faster decisionmaking and improve group governance.
LIXIL Group also embraces Diversity & Inclusion, working to create an environment in which all people canthrive. The company is proactively shifting towards remote working and flexi-time systems, enabling
employees to choose the working style that best fits their responsibilities and lifestyle. In addition, LIXILGroup’s digital transformation is strengthening ties among employees around the world. In 2011, when LIXILGroup was created through the merger of major Japanese building material and equipment manufacturers,
the proportion of female managers was just 0.9%. That has now been increased to 5.7% 2. The company set a
goal of increasing the ratio of female graduate recruits at least 30% and have achieved this goal every year
since 20143, as well as focusing on training women to be leaders for the next generation.
Further, with many companies currently taking steps to reform their corporate activities from a human rights
perspective, LIXIL Group has launched a new measure in cooperation with human rights NGOs andconsultants to identify seven particular areas on which to focus with regard to human rights, and pursue
business activities that respect such rights. By fiscal 2021, the company plans to conduct a human rights risk
assessment of all employees in an effort to mitigate latent risks.
LIXIL has also made significant progress in its contribution to improving Global Sanitation & Hygiene, one of
the company’s Corporate Responsibility focuses. SATO, its innovative and affordable brand of toilet
components, entered more than 10 new markets over the last 6 months, with a global presence in over 38
countries, providing basic sanitation for more than 18 million. The brand’s latest innovation, SATO Tap is a2|P a g e

simple and affordable hand washing solution that was developed in response to the COVID-19 pandemic
that continues to impact many of the underserved communities in the developing world. LIXIL has
committed $1M to support immediate and sustained hand-hygiene practices through the solution, toaccelerate product roll-out while expanding partnerships such as Make a Splash! with UNICEF. The first SATO
Taps will be manufactured in India, and will be available for partners in September 2020, with ramp up ofproduction and retail availability through early 2021.
Learn more about LIXIL’s sustainability and corporate governance practices on our global website.
Notes
1. The FTSE Blossom Japan Index is designed to measures the performance of Japanese companies withsuperior ESG practices. The proportion by industry type is the same as that of the Japanese stock market.
The makeup of stocks is based on rules established according to existing international standards,
including the UN’s Sustainable Development Goals (SDGs).
2, 3. Data for LIXIL Corporation’s operations in Japan
The inclusion of LIXIL Group Corporation in any MSCI Index, and the use of MSCI logos, trademarks, service
marks or index names herein, do not constitute a sponsorship, endorsement or promotion of LIXIL Group
Corporation by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI andthe MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.
-EndsAbout LIXIL
LIXIL makes pioneering water and housing products that are designed to solve everyday, real-life challenges, making better homes a
reality for everyone, everywhere. Drawing on our Japanese heritage, we create world-leading technology and innovate to make highquality products that transform homes. But the LIXIL difference is how we do this; through meaningful design, an entrepreneurial spirit, adedication to improving accessibility for all, and responsible business growth. Our approach comes to life through industry leading
brands, including INAX, GROHE, American Standard, and TOSTEM. Over 70,000 colleagues operating in more than 150 countries areproud to make products that touch the lives of more than a billion people every day.
LIXIL Group Corporation (TSE Code: 5938) is the listed holding company for LIXIL’s portfolio of businesses.

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