Climate Change Data

LIXIL Corporation

Climate Impact & Sustainability Data (2016-04 to 2017-03, 2017-04 to 2018-03, 2018-04 to 2019-03, 2019-04 to 2020-03, 2020-04 to 2021-03, 2021-04 to 2022-03, 2022, 2023, FYE2024)

Reporting Period: 2016-04 to 2017-03

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

  • Increased benefits from CO2 emissions reduction achieved from products and services by 1.08 times compared to FY2015
  • Launched a variety of innovative energy-saving products globally (e.g., ultra-high-efficiency toilets, high-performance windows)
  • Introduced a wastewater recycling system in China, reducing water consumption per unit weight of products by approximately 45% compared to FY2014
  • Reduced total volume of waste at Ueno-midori bathtub-manufacturing factory by approximately 18% from 905.6 tons in FY2015 to 744.0 tons in FY2016
  • Reduced buried sludge volumes in Thailand by 60% compared to FY2014

Social Achievements

  • Launched first contract-based facility management business for serviced retirement homes, Premio Kawaguchi
  • Generated 6.24 million beneficiaries through improved sanitation access (SATO products)
  • Increased percentage of women among regularly recruited new hires in Japan to 30.8%
  • Implemented actions in each organization based on the results of the Group-wide employee survey conducted during FY2015
  • GROHE Dual Tech program helped over 850 young people gain practical and classroom-based education on plumbing

Governance Achievements

  • Established standards within Corporate Governance Guidelines for dealings with related parties
  • Appointed independent outside directors as chairpersons of the Nomination, Compensation, and Audit Committees
  • Developed six global policies (concern-raising, anti-corruption, conflict of interest, fair competition, international trade controls, and anti-discrimination and harassment)

Climate Goals & Targets

Long-term Goals:
  • Provide better sanitation to 100 million people by 2020
Medium-term Goals:
  • Achieve a net zero balance between the environmental footprint of our business and the positive environmental contribution by 2030
  • Reduce CO2 emissions by 40% v. FY2015
  • Reduce CO2 emissions by 8% v. FY2015
Short-term Goals:
  • Implementation of action plans derived from the 2017 global employee awareness survey across the Group: 100%
  • Generate 10.9 million beneficiaries by March 31, 2018

Environmental Challenges

  • Accounting irregularities at an overseas subsidiary in 2015
  • Increased CO2 emissions from operational processes by 5% compared to FY2015
  • Four serious product accidents across the Group in FY2016
  • Water supply risks at production sites, mainly in Asia
Mitigation Strategies
  • Further advancing efforts to strengthen corporate governance, compliance, and risk management systems
  • Setting targets and initiatives for each business organization to reduce CO2 emissions
  • Holding a product accident conference to share details of the experience and confirm countermeasures
  • Developing tailored measures for each production base to improve efficient water use
  • Implementing a Group-wide EHS management system

Supply Chain Management

Supplier Audits: Responsible procurement surveys coverage ratio of 85% in Japan and 80% outside of Japan in 2016

Responsible Procurement
  • Procurement Policy
  • Procurement Compliance Policy
  • Supplier Code of Conduct
  • Supplier Assessment Standards (including quality, cost, delivery, technological prowess, sustainable use of resources, human rights, and labor safety)

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co.,Ltd.

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

The report highlights initiatives contributing to these goals through sanitation solutions, energy-efficient products, and greenhouse gas reduction efforts.

Sustainable Products & Innovation

  • SATO toilets
  • Micro Flush Toilet System
  • Green Toilet System
  • Portable Toilet System
  • Navish hands-free faucets
  • SAMOS L and ERSTER S windows
  • American Standard Water Saving Toilets
  • GROHE Sense & GROHE Sense Guard

Awards & Recognition

  • Certified health and productivity management organization
  • MSCI Japan Empowering Women Index (WIN)
  • Catalyst Distinction award
  • Eruboshi certification from the Ministry of Health, Labour and Welfare
  • Excellence Award in the large manufacturer and importer category for the Best Contributors to Product Safety Awards program
  • Director-General for Commerce and Distribution Policy Award

Reporting Period: 2017-04 to 2018-03

Environmental Metrics

Total Carbon Emissions:111,618 thousand t-CO2e
Scope 1 Emissions:1,199 thousand t-CO2e
Scope 2 Emissions:607.8 thousand t-CO2e
Scope 3 Emissions:111,618 thousand t-CO2e
Total Energy Consumption:22,471 thousand GJ
Water Consumption:18,050 thousand m3
Waste Generated:281 thousand tons

ESG Focus Areas

  • Global Sanitation & Hygiene
  • Water Conservation & Environmental Sustainability
  • Diversity & Inclusion
  • Governance
  • Fair Business Practices
  • Human Rights
  • Labor Practices
  • Quality and Satisfaction
  • Supply Chain
  • Stakeholder Engagement

Environmental Achievements

  • Science Based Targets initiative validated greenhouse gas reduction targets.
  • RE-PLUS window product recognized for energy-saving benefits.

Social Achievements

  • Integrated SATO social business and Social Sanitation Initiatives organization.
  • Launched Universal Design strategy.
  • Improved livelihood of 9 million people through SATO Toilets.
  • Launched Premio Serviced Homes for the elderly.
  • Improved work-life balance initiatives resulting in increased paid leave usage.

Governance Achievements

  • Established CR Committee to align with technology business operating model.
  • Implemented global best practices and a comprehensive global compliance program.
  • Strengthened risk management systems.

Climate Goals & Targets

Medium-term Goals:
  • Achieve a net zero balance between LIXIL’s environmental footprint and the positive environmental contributions created through our products and services by 2030.
  • Reduce scope 1 and 2 emissions by 30% and scope 3 emissions by 15% compared to FYE2016 by 2030.
Short-term Goals:
  • Improve the livelihood of 100 million people through sanitation and hygiene solutions by 2020.
  • Establish the culture of diversity and inclusion within the organization by 2020.

Environmental Challenges

  • Accounting irregularities at an overseas subsidiary in 2015.
  • Global water shortage.
  • Need to protect water, energy and other natural resources.
  • Growing stakeholder interest in responsible supplier management.
  • Global sanitation crisis affecting 2.3 billion people.
  • Low female participation in the workforce in Japan.
Mitigation Strategies
  • Advanced efforts to strengthen corporate governance, compliance, and risk management systems.
  • Developed water-efficient products and implemented water conservation measures.
  • Implemented responsible procurement surveys and Supplier Code of Conduct.
  • Developed various sanitation products (SATO, Micro Flush, Green Toilet, Portable Toilet) and partnerships to address sanitation issues.
  • Launched Universal Design project and initiatives to promote diversity and inclusion.

Supply Chain Management

Supplier Audits: Responsible procurement surveys coverage ratio of 90% in Japan and 90% overseas.

Responsible Procurement
  • Supplier Assessment Standards including CR aspects (environmental management, human rights, labor safety).
  • Supplier Code of Conduct.

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (some manufacturing sites), ISO 50001 (all GROHE plants and distribution centers)

Third-party Assurance: Deloitte Tohmatsu Sustainability Co.,Ltd.

UN Sustainable Development Goals

  • Goal 6
  • Goal 7
  • Goal 11
  • Goal 12
  • Goal 13

Initiatives contribute to these goals through improved sanitation, water conservation, sustainable resource use, and promoting inclusive design.

Sustainable Products & Innovation

  • SATO Toilet Systems
  • Micro Flush Toilet System
  • Green Toilet System
  • Portable Toilet System
  • RE-PLUS window
  • TOSTEM LW window
  • INAX Ecoful Shower
  • INAX Thermal Bath S
  • GROHE SENSE GUARD
  • Navish hands-free faucets
  • American Standard Water Saving Toilets

Awards & Recognition

  • SABRE Award for Best Global Campaign
  • GOLD STANDARD Award from Public Affairs Asia
  • Japan Bronze Award from the Public Relations Society of Japan
  • IAUD award for Toilets for All initiative
  • Catalyst Distinction award

Reporting Period: 2018-04 to 2019-03

Environmental Metrics

Total Carbon Emissions:115,128 thousand t-CO2e/year
Scope 1 Emissions:569 thousand t-CO2e/year
Scope 2 Emissions:616 thousand t-CO2e/year
Scope 3 Emissions:113,943 thousand t-CO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,778 thousand GJ/year
Water Consumption:16,676 thousand m3/year (intake)
Waste Generated:386,500 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Global Sanitation & Hygiene
  • Water Conservation & Environmental Sustainability
  • Diversity & Inclusion
  • Corporate Governance
  • Compliance
  • Risk Management
  • Human Rights
  • Labor Practices
  • Product Safety
  • Supply Chain Management
  • Stakeholder Engagement

Environmental Achievements

  • Switched to 100% renewable energy in Kyoto showroom and INAX Museums
  • Eliminated landfill waste at TOSTEM plant in Thailand
  • CO2 emissions reduction attributable to Group products and services improved by 1.21 times
  • Reduced CO2 emission intensity from transportation by 1.1%

Social Achievements

  • SATO social business turned profitable in Bangladesh
  • Launched "Make a Splash! Toilets for All" global partnership with UNICEF
  • Launched a new partnership with the Bill & Melinda Gates Foundation to pilot a new toilet technology
  • Launched a fully remodeled universal kitchen system in Japan (Well Life)
  • Increased number of female managers 7.6 times compared to 2012
  • Increased participation in LIXIL Community Day to 6,900 employees across 23 countries

Governance Achievements

  • Announced support for the Task Force on Climate-related Financial Disclosures (TCFD)
  • Established Group-wide EHS management and promotion system
  • Revised information security regulations and reworked detailed rules
  • Conducted assessments of eight Group companies in Japan

Climate Goals & Targets

Long-term Goals:
  • Contribute to solving increasingly serious environmental issues by 2050
Medium-term Goals:
  • Achieve a net zero balance between LIXIL’s environmental footprint and the positive environmental contributions created through our products and services by 2030
  • Reduce Scope 1 and 2 emissions by 30% by 2030
  • Reduce Scope 3 emissions attributable to product use by 15% by 2030
  • Ensure all products and services are based on LIXIL’s Universal Design concept by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Global sanitation crisis affecting 2 billion people
  • Climate change impacts and water scarcity
  • Need for improved diversity and inclusion
  • Supply chain risks
  • Maintaining strong corporate governance
Mitigation Strategies
  • Developed SATO toilet system and partnerships with UNICEF and Bill & Melinda Gates Foundation
  • Formulated Environmental Vision 2030 and implemented various energy and water saving initiatives
  • Implemented LIXIL Diversity & Inclusion Declaration and various initiatives to promote diversity and inclusion
  • Implemented responsible procurement policies and Supplier Code of Conduct
  • Established robust CR management structure and compliance system

Supply Chain Management

Supplier Audits: 90% coverage (based on purchased amount)

Responsible Procurement
  • Procurement Principles
  • Procurement Compliance Policy
  • LIXIL Group Code of Conduct
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD

Certifications: ISO 14001 (some manufacturing sites), ISO 50001 (GROHE plants and distribution centers)

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 13 (Climate Action)
  • Goal 5 (Gender Equality)

Initiatives related to sanitation, water conservation, and diversity and inclusion contribute to these goals

Sustainable Products & Innovation

  • SATO toilet system
  • LW window
  • RE-PLUS window
  • Ecoful Shower
  • Automatic Heating Faucet
  • Smart Post Delivery Box
  • GROHE SENSE GUARD
  • Navish hands-free faucet
  • Beale MeasureFill Touch Pull-Down Kitchen Faucet
  • GROHE Blue

Awards & Recognition

  • Deputy Chiefs’ Award (2nd Japan SDGs Awards)
  • Innovation of the Year Award (Ethical Corporation Responsible Business Awards)
  • CDP Water Security A List
  • Inclusion in DJSI World Index, DJSI Asia-Pacific Index, and FTSE4Good Index
  • Inclusion in MSCI Japan Empowering Women (WIN) Select Index
  • Gold award in Pride Index 2018
  • Inclusion in S&P Japan 500 ESG Index and S&P/JPX Carbon Efficient Index
  • Nadeshiko Brand
  • Certified Health and Productivity Management Organization
  • Eruboshi (L Star) certification

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

  • Achieved carbon intensity target two years ahead of plan
  • All GROHE production plants converted to green electricity (July 2019)
  • Reduced steam use at Otani Plant by 44% (equivalent to 1,089 metric tons of CO2)

Social Achievements

  • Launched SATO Tap, an affordable handwashing solution
  • Improved the lives of 18.6 million people through SATO Toilet Systems
  • LIXIL Community Day participation doubled to over 15,000 employees

Governance Achievements

  • Included in the Dow Jones Sustainability World Index (DJSI World) for the first time in 2019
  • Established Global Diversity and Inclusion department
  • Issued Diversity & Inclusion Statement

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero carbon emissions by 2050
Medium-term Goals:
  • Improve the livelihood of 100 million people through sanitation and hygiene initiatives by 2025
  • Reduce CO2 emissions by 30% (v. FYE 2016) by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • COVID-19 pandemic
  • Global sanitation and hygiene challenges
  • Water scarcity
Mitigation Strategies
  • Developed SATO Tap
  • Expanded partnerships with UNICEF and JICA
  • Implemented water recycling systems at high-risk production sites

Supply Chain Management

Supplier Audits: 90% coverage (based on purchased amount)

Responsible Procurement
  • Supplier Code of Conduct
  • Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Natural disasters
Transition Risks
  • Carbon tax
  • Stronger regulations
  • Market shifts
Opportunities
  • Increased demand for ZEHs and energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 13 (Climate Action)

LIXIL's initiatives contribute to these goals through sanitation solutions, water conservation, energy efficiency, and sustainable building practices.

Sustainable Products & Innovation

  • SATO Toilet Systems
  • SATO Tap
  • LW window
  • RE-PLUS window
  • Ecoful Shower
  • Automatic Heating Faucet
  • Smart Post Delivery Box
  • Resilience Toilet

Awards & Recognition

  • Deputy-Chief’s Award (2nd Japan SDGs Awards)
  • Grand Award (IAUD Awards)
  • German Sustainability Award 2019
  • Gold in PRIDE Index 2019
  • Nikkei Sangyo Shimbun Award of Excellence
  • 2019 Construction Materials and Facilities Grand Prize
  • Agency for Natural Resources and Energy Director-General’s Award

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:14.2%
Total Energy Consumption:34,500 MWh/year (from eight megawatt-scale solar power plants in Japan)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

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

Environmental Achievements

  • Reduced CO2 emissions from places of business by 18.2% (in total volume) and -18.7% (in emission intensity) vs. FYE2016.
  • Achieved 14.2% renewable energy share, cutting annual CO2 emissions by 62,000 tons.
  • Increased recycling ratio of waste collected from places of business (Japan & Europe: 97%; Asia: 92%; North America: 39%).
  • Launched LIXIL Plastics Action Statement.

Social Achievements

  • Improved the lives of 25 million people through SATO Toilet Solutions.
  • Launched SATO Tap, an affordable handwashing station.
  • Launched LIXIL x SDGs NEXT STAGE project.
  • Updated Diversity & Inclusion Strategy with ambitious gender equity targets (50:50 gender parity in Board of Directors and Executive Officer roles and 30% female managers by 2030).

Governance Achievements

  • Refined material issues, identifying 20 key issues.
  • Established a robust CR management structure including a CR Committee.
  • Enhanced corporate governance structure.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero carbon emissions and preserve water and natural resources in operations, housing and lifestyle solutions by 2050.
Medium-term Goals:
  • Reduce carbon emissions by 30% vs. FYE2016 by 2030.
  • Achieve 30% female leaders globally by 2030.
  • Embed a culture of inclusion across LIXIL and achieve key gender equity goals by 2030.
Short-term Goals:
  • Improve the livelihood of 100 million people through sanitation and hygiene initiatives by 2025.

Environmental Challenges

  • Climate change impacts (extreme weather, regulatory changes, market shifts).
  • Water scarcity in certain regions.
  • Supply chain disruptions.
  • Gender inequality within the organization.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Implemented water risk assessments and water recycling systems.
  • Formulated Environmental Vision 2050 aiming for net-zero carbon emissions by 2050.
  • Updated D&I Strategy with specific targets and initiatives.

Supply Chain Management

Supplier Audits: 70.6% coverage (based on purchased amount) in FYE2021

Responsible Procurement
  • Supplier Code of Conduct
  • Green Procurement Guidelines
  • Responsible procurement surveys

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events, natural disasters
Transition Risks
  • Regulatory changes (carbon tax, energy efficiency standards), market shifts (raw material prices, demand for sustainable products)
Opportunities
  • Increased demand for ZEHs, high-insulation, and renewable energy products; development of disaster risk-reducing products.

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001 (94.8% of 77 targeted sites), ISO 45001 (GROHE AG in EMENA)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 13 (Climate Action)

LIXIL's initiatives contribute to these goals through the development and distribution of sustainable sanitation and water-saving products, promotion of renewable energy, and efforts to mitigate climate change.

Sustainable Products & Innovation

  • SATO Toilet Solutions
  • SATO Tap
  • Eco Aqua Shower
  • Automatic Heating Faucet
  • Resin window EW
  • RE-PLUS insulated window
  • Style Shade sun blinds
  • IoT-Enabled Smart Delivery Box
  • SATIS toilet
  • American Standard water-saving toilets
  • Navish Hands-Free faucet
  • Saybrook Filtered Kitchen Faucet
  • GROHE Blue household water system
  • GROHE SENSE GUARD
  • withCUBE mobile bathroom booth
  • KIRARA STAGE Mokucho artificial timber deck

Awards & Recognition

  • 2nd Japan SDGs Awards
  • TIME Magazine’s Best Inventions of 2020 (SATO Tap)
  • Minister of the Environment Award for Climate Change Action (THINK HEAT)
  • CDP Supplier Engagement Leader

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:8,085 thousand t-CO2e (Scope 1 & 2)
Renewable Energy Share:15.9%
Water Consumption:14,730,000 m3 (total intake)

ESG Focus Areas

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

Environmental Achievements

  • Reduced CO2 emissions from operational activities by 17.4% vs. FYE2019
  • Achieved 15.9% renewable energy share in operational activities
  • Reduced water intake and discharge at several sites in Mexico, India, and Thailand

Social Achievements

  • Improved the lives of 35 million people through SATO products
  • Launched five Employee Resource Groups globally
  • Increased ratio of new female graduate and post-graduate hires to 53.8%

Governance Achievements

  • Revised Human Rights Principles
  • Reviewed the composition and governance of the CR Committee
  • Introduced stock-linked compensation for executive officers linked to ESG performance

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero carbon emissions by 2050
Medium-term Goals:
  • Embed a culture of inclusion across LIXIL and achieve key gender equity goals by 2030
  • Determine medium-term targets for water sustainability and circular economy in FYE2023
Short-term Goals:
  • Reduce CO2 emissions from operational activities (Scope 1 & 2) by 50% and from supply chains (Scope 3) by 30% compared to FYE2019 by FYE2031

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic
  • Low positive response rate to human rights initiatives in Japan compared to other regions
  • Need to further reduce CO2 emissions and increase renewable energy usage
Mitigation Strategies
  • Strengthened online support and other avenues of response to customer inquiries
  • Formulated plans to mitigate potential human rights risks identified in employee surveys and implemented remedies (training, communication, work-life balance improvements)
  • Set new medium-term targets for reducing CO2 emissions and increasing renewable energy usage

Supply Chain Management

Supplier Audits: 90% coverage (Japan), 90% coverage (overseas)

Responsible Procurement
  • Supplier Code of Conduct
  • Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters (typhoons, torrential rains)
Transition Risks
  • Regulatory changes related to climate change
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations

Certifications: ISO 14001, ISO 45001 (GROHE AG)

UN Sustainable Development Goals

  • SDG 6 (Clean water and sanitation)
  • SDG 7 (Affordable and clean energy)
  • SDG 11 (Sustainable cities and communities)
  • SDG 13 (Climate action)

LIXIL's initiatives contribute to these goals through sustainable product development, water conservation, renewable energy usage, and community engagement.

Sustainable Products & Innovation

  • SATO Toilet Solutions
  • SATO Tap
  • TW triple-glazed high-performance hybrid window
  • Eco Aqua Shower
  • Cradle to Cradle Certified® products

Awards & Recognition

  • Deputy-Chief’s Award (2nd Japan SDGs Awards)
  • Time’s Best Inventions of 2020 (SATO Tap)
  • Fast Company World Changing Ideas Finalist (SATO Tap)
  • Agency for Natural Resources and Energy Commissioner’s Award (2021 Energy Conservation Grand Prize)
  • Grand Prize of the 2021 Japan’s Minister of the Environment Awards for Climate Action (Cool de Peace Project)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:936.2 thousand t-CO₂ (Scope 1 & 2)
Scope 1 Emissions:510 thousand t-CO₂
Scope 2 Emissions:426 thousand t-CO₂
Scope 3 Emissions:106,341 thousand t-CO₂
Renewable Energy Share:16.7% (FYE2022)
Total Energy Consumption:1,015,222 MWh
Water Consumption:15,746 thousand ㎥
Waste Generated:378,366 tons
Carbon Intensity:1.124 t-CO₂/million yen (FYE2022)

ESG Focus Areas

  • Human Resources
  • Environment
  • Governance

Environmental Achievements

  • Reduced Scope 1, 2 emissions from 1,185.3 thousand t-CO₂ in FYE2019 to 936.2 thousand t-CO₂ in FYE2022.
  • Increased renewable energy share in energy usage from 1,362 MWh in FYE2019 to 170,164 MWh in FYE2022.
  • Improved waste recycling ratio in Japan and Europe from 96.8% in FYE2019 to 97.1% in FYE2022 and in Asia (excluding Japan) from 62.0% to 96.6%.

Social Achievements

  • Increased number of female managers from 819 in FYE2019 to 884 in FYE2022.
  • Reduced average monthly overtime hours per employee from 18.3 hours in FYE2019 to 16.4 hours in FYE2022.
  • Reduced Lost Time Injury Frequency Rate (LTIFR) from 0.54 in FYE2019 to 0.41 in FYE2022 for directly and indirectly employed staff.

Governance Achievements

  • No environmental law violations reported in FYE2022 (with a scope of serious violations with fines of US$10,000 or more).

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Reducing Scope 3 emissions
  • Further improving waste recycling ratio in North America
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, The Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Version 2.4

Certifications: Null

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:794 thousand t-CO2e (Scope 1 & 2)
Scope 1 Emissions:452 thousand t-CO2e
Scope 2 Emissions:341 thousand t-CO2e
Scope 3 Emissions:7,786 thousand t-CO2e
Renewable Energy Share:25.0% (FYE2023)
Total Energy Consumption:1,005,901 MWh (Purchased electricity) + 43,844 MWh (Internally generated electricity)
Water Consumption:4,946 thousand m3 (Total net fresh water consumption)
Waste Generated:41,100 tons (Landfilled or incinerated) + 175,053 tons (Recycled) + 128,446 tons (Sold as valuables)
Carbon Intensity:1.057 t-CO₂/million yen (FYE2023)

ESG Focus Areas

  • Climate Change
  • Water Sustainability
  • Circular Economy
  • Human Resources
  • Governance

Environmental Achievements

  • Reduced Scope 1 and 2 carbon emissions by 29.9% vs. FYE2019 (target: 50.4% reduction by FYE2031)
  • Reduced Scope 3 carbon emissions by 15.2% vs. FYE2019 (target: 30% reduction by FYE2031)
  • Increased efficient water use at business sites by 16.0% vs. FYE2019 (target: 20% improvement by FYE2031)
  • Achieved 88.1% waste recycling rate from business sites (target: 90% by FYE2026)
  • Achieved 92.2% ratio of energy- and water-saving faucets sold in Japan (target: 100% by FYE2031)
  • Achieved 99.2% ratio of water-saving toilets sold in Japan (target: 100% by FYE2031)
  • Achieved 90% ratio of high-performance windows sold for new detached houses in Japan (target: 100% by FYE2026)
  • Total water savings from energy- and water-saving faucets and water-saving toilets reached 1.5 billion m3

Social Achievements

  • Improved employee training hours (19.9 hours in FYE2023)
  • Increased ratio of female managers (32.2% in FYE2023)
  • High return-to-work rates for maternity and childcare leave

Governance Achievements

  • Increased number of outside directors (8 in FYE2023)
  • Increased number of female directors (4 in FYE2023)

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce Scope 1 and 2 carbon emissions by 50.4% by FYE2031
  • Reduce Scope 3 carbon emissions by 30% by FYE2031
  • Improve efficient water use at business sites by 20% by FYE2031
  • Achieve 100% ratio of energy- and water-saving faucets sold in Japan by FYE2031
  • Achieve 100% ratio of water-saving toilets sold in Japan by FYE2031
  • Achieve 100% ratio of high-performance windows sold for new detached houses in Japan by FYE2026
  • Achieve 90% waste recycling rate from business sites by FYE2026
Short-term Goals:
  • Reduce water consumption (implied)
  • Improve waste recycling rates (implied)

Environmental Challenges

  • Supply chain disruptions (implied)
  • Data limitations and exclusions (specified in report)
Mitigation Strategies
  • Developing alternative sourcing strategies (implied)
  • Improving data collection methodologies (ongoing)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: SBTi 1.5ºC Certification

Certifications: ISO 14001 (implied), ISO 45001 (implied)

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Energy- and water-saving faucets and water-saving toilets
  • High-performance windows

Awards & Recognition

  • Not disclosed

Reporting Period: FYE2024

Environmental Metrics

Total Carbon Emissions:740 thousand t CO2 (Scope 1 & 2) in FYE2024; 7,196 thousand t CO2 (Scope 3) in FYE2023
Renewable Energy Share:28.3%

ESG Focus Areas

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

Environmental Achievements

  • Reduced Scope 1 & 2 CO2 emissions by -34.7% (vs. FYE2019)
  • Reduced Scope 3 CO2 emissions by -21.6% (vs. FYE2019)
  • Increased water use efficiency by +23.6% (vs. FYE2019)
  • Achieved 92.8% waste recycling rate
  • Achieved 78% use of recycled aluminum
  • Renewable energy ratio reached 28.3%

Social Achievements

  • Improved sanitation and hygiene for approximately 68 million people
  • Increased ratio of female managers to 17.1%
  • Achieved 31.3% female representation on Board & Executive Officers
  • 44.8% gender parity in new graduate recruitment (Japan)
  • 75% of employees benefit from LIXIL's learning opportunities

Governance Achievements

  • Integrated environmental strategy into business strategy
  • Received SBT Net-Zero approval for 2050 target
  • Published reports based on TCFD and TNFD recommendations
  • Established Impact Strategy Committee for strategic approach to sustainability issues

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero carbon emissions by 2050
Medium-term Goals:
  • Reduce Scope 1 & 2 CO2 emissions by 50.4% by 2031 (vs. FYE2019)
  • Reduce Scope 3 CO2 emissions by 30% by 2031 (vs. FYE2019)
  • Improve water use efficiency by 20% by 2031 (vs. FYE2019)
  • Contribute to a global reduction of 2 billion m3 per year in water consumption by 2025
  • Increase ratio of female directors and executive officers to 50% by 2030
  • Increase ratio of female managers to 30% by 2030
Short-term Goals:
  • Improve sanitation and hygiene for 100 million people by 2025
  • Increase ratio of energy- and water-saving faucets and water-saving toilets sold in Japan to 100% by 2031
  • Achieve 90% waste recycling rate by 2026
  • Achieve 100% sales ratio for high-performance windows in new detached houses in Japan by 2026

Environmental Challenges

  • Climate change impacts on business
  • Supply chain disruptions
  • Increasing rigor surrounding environmental disclosures
  • Gender pay gap and low proportion of female managers
  • Water scarcity in certain regions
Mitigation Strategies
  • Integrated environmental strategy into LIXIL Playbook
  • Set mid-term targets for environmental sustainability
  • Endorsed TCFD and TNFD recommendations
  • Implemented D&I initiatives to improve gender equity
  • Implemented water risk assessments and mitigation strategies

Supply Chain Management

Supplier Audits: 90% responsible procurement survey coverage in Japan

Responsible Procurement
  • Supplier Code of Conduct
  • Green Procurement Guidelines
  • Responsible procurement surveys
  • Site visits and online interviews with suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD, TNFD, UNGC, CSRD (for Europe business from FYE2026)

Certifications: ISO 14001, ISO 50001, ISO 45001 (GROHE AG), SBT Net-Zero

Third-party Assurance: Independent third-party assurance obtained for selected environmental and social data.

UN Sustainable Development Goals

  • SDG 6 (Clean Water and Sanitation)
  • SDG 7 (Affordable and Clean Energy)
  • SDG 11 (Sustainable Cities and Communities)
  • SDG 13 (Climate Action)

Initiatives contribute to these goals through improved sanitation, water conservation, sustainable products, and climate change mitigation.

Sustainable Products & Innovation

  • PremiAL R100 (100% recycled aluminum)
  • GROHE Everstream (water recycling shower system)
  • KINUAMI (foaming shower system)
  • G2RT (off-grid toilet system)

Awards & Recognition

  • Fast Company: The World’s Most Innovative Companies of 2024
  • CDP Climate Change A List
  • Forbes: World’s Top Companies for Women 2023