Climate Change Data

TOTO LTD.

Climate Impact & Sustainability Data (2018, 2021, 2021-04 to 2022-03, 2022, 2023)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:19,573 thousand tons CO2e
Scope 1 Emissions:179 thousand tons CO2e
Scope 2 Emissions:176 thousand tons CO2e
Scope 3 Emissions:19,216 thousand tons CO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,259,844 MWh
Water Consumption:2,968 thousand m3
Waste Generated:107.7 thousand tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Cleanliness and Comfort
  • Environment
  • Relationships

Environmental Achievements

  • Total CO2 emission reductions due to measures implemented: 9 thousand tons (FY2017) to 22 thousand tons (FY2022 target)
  • Total CO2 emission reductions during product use: 3.23 million tons (FY2018) to 3.7 million tons (FY2022 target)
  • Reduction of water consumption during product use: 860 million m3 (FY2018) to 1,100 million m3 (FY2022 target)

Social Achievements

  • Customer satisfaction from after-sales services (Japan): 91.5% (FY2018)
  • Ratio of repairs completed within two days of reception (overseas): 75.7% (FY2018)
  • Volunteer activity participation rate: 100% or more (FY2018)
  • Reduction of employee turnover rate due to life events (Japan): 3.4% (FY2018) to 0% (FY2022 target)

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Total CO2 emissions from business sites: 351 thousand tons (FY2018) to 450 thousand tons (FY2022)
  • Total CO2 emission reductions due to measures implemented: 9 thousand tons (FY2017) to 22 thousand tons (FY2022)
  • Total CO2 emission reductions during product use: 3.23 million tons (FY2018) to 3.7 million tons (FY2022)
  • Reduction of water consumption during product use: 860 million m3 (FY2018) to 1,100 million m3 (FY2022)
  • Number of projects contributing to solve regional issues: 38 cases (FY2018) to 100 cases (FY2022)
  • Customer satisfaction from after-sales services (Japan): 91.5% (FY2018) to 90% (FY2022)
  • Ratio of repairs completed within two days of reception (overseas): 75.7% (FY2018) to 80% (FY2022)
  • Volunteer activity participation rate: 100% or more (FY2018)
  • Annual paid leave usage rate (Japan): 80.8% (FY2018) to 100% (FY2022)
  • Ratio of female managers (Japan): 10.5% (FY2018) to 20% (FY2022)
  • Employee turnover rate due to life events (Japan): 3.4% (FY2018) to 0% (FY2022)
Short-term Goals:
  • CEFIONTECT shipment ratio (overseas): 71% (FY2018) to 79% (FY2022)
  • TORNADO FLUSH shipment ratio (overseas): 36% (FY2018) to 53% (FY2022)
  • WASHLET shipment volume (overseas): 0.58 million units (FY2018) to 2 million units (FY2022)

Environmental Challenges

  • Not disclosed
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: Null

Certifications: ISO 14001, ISO 9001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:35.2万t
Scope 1 Emissions:188千t-CO2
Scope 2 Emissions:164千t-CO2
Scope 3 Emissions:19,638千t-CO2
Total Energy Consumption:1,350GWh
Water Consumption:2,675千m3
Waste Generated:142.5千t

ESG Focus Areas

  • きれいと快適
  • 環境
  • 人とのつながり

Environmental Achievements

  • 商品使用時のCO2排出量削減：335万t（2005年当時の商品を普及し続けた場合と比べた削減効果)
  • 商品使用時の水消費削減量：10億m3（2005年当時の商品を普及し続けた場合と比べた削減効果)
  • 事業所からのCO2総排出量：35.2万t
  • 施策によるCO2排出削減量：1.0万t

Social Achievements

  • 社員満足度（日本）：75pt
  • ショールーム満足度（日本）：75pt
  • アフターサービスお客様満足度：93pt
  • 女性管理職比率（日本）：16%
  • ライフイベントによる離職率（日本）：1.4%

Governance Achievements

  • 監査等委員会設置会社への移行

Climate Goals & Targets

Long-term Goals:
  • 2050年度：カーボンニュートラルで持続可能な社会の実現
Medium-term Goals:
  • 2030年度：事業所からのCO2総排出量2018年度比30％削減、再生可能エネルギー導入率90％、商品使用時のCO2排出量2018年度比15％削減、サスティナブルプロダクツ商品構成比78％
Short-term Goals:
  • 2023年度：事業所からのCO2総排出量29.4万t

Environmental Challenges

  • 新型コロナウイルス感染症拡大の影響
  • 原材料価格の高騰
  • 部品・材料の調達影響
  • サプライチェーンの混乱
  • 自然災害の多発
  • 中国大陸における不動産市況の悪化
  • 米州における物流費高騰
Mitigation Strategies
  • サプライチェーンの見える化強化
  • サプライチェーンの強靭化（BCP対応の在庫確保、代替品の選定、事前検証）
  • 生産性向上、適正在庫運用
  • 米国国内工場の生産性向上、アジア拠点の生産能力増強や調達拡大
  • 複数フォワダーの利用や積載率向上
  • CO2排出量削減に向けたサプライヤーとの協業
  • サプライチェーンにおける人権監査

Supply Chain Management

Responsible Procurement
  • CSR調達
  • サプライヤー様行動規範

Climate-Related Risks & Opportunities

Physical Risks
  • 大規模地震、異常気象の風水害や火災などによる事業活動継続のリスク
  • 自然災害の影響による工場の操業停止や保険料の増大
Transition Risks
  • 炭素価格の高騰
  • 環境や気候変動に関する規制強化による工場の移転・停止や設備投資
Opportunities
  • 購入支援制度や規制による、節水・省エネ商品の需要拡大
  • 水需要の拡大による、節水商品による貢献の機会拡大

Reporting Standards

Frameworks Used: IIRC（国際統合報告評議会）国際統合報告フレームワーク, GRI（Global Reporting Initiative）GRIスタンダード, TCFD, 国連グローバル・コンパクト

Certifications: ISO 14001, ISO 45001, SBT

UN Sustainable Development Goals

  • 3：すべての人に健康と福祉を
  • 6：安全な水とトイレを世界中に
  • 7：エネルギーをみんなにそしてクリーンに
  • 13：気候変動に具体的な対策を
  • 17：パートナーシップで目標を達成しよう

Sustainable Products & Innovation

  • サスティナブルプロダクツ

Awards & Recognition

  • レッドドット・デザイン賞
  • iFデザイン賞
  • GREEN GOOD DESIGN AWARDS
  • 日本セラミックス大賞
  • ワールドスター賞

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:352 thousand tons/year
Scope 1 Emissions:188 thousand tons/year
Scope 2 Emissions:164 thousand tons/year
Scope 3 Emissions:19,638 thousand tons/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,350,455 MWh/year
Water Consumption:2,675 thousand m3/year
Waste Generated:142.5 thousand tons/year
Carbon Intensity:0.29 tons CO2/million yen in FY2021

ESG Focus Areas

  • Cleanliness and Comfort
  • Environment
  • Relationships

Environmental Achievements

  • Reduced CO2 emissions from business sites to 352 thousand tons in FY2021 from 307 thousand tons in FY2020
  • Reduced CO2 emissions during product use by 3.35 million tons in FY2021
  • Reduced water consumption during product use by 1.0 billion m3 in FY2021

Social Achievements

  • Achieved record-high results in fiscal 2021 with consolidated net sales of ¥645.3 billion and operating profit of ¥52.2 billion
  • Employee satisfaction (Japan) increased to 75 points in FY2021
  • Showroom satisfaction (Japan) increased to 75 points in FY2021
  • Customer satisfaction in after-sales service increased to 93 points in FY2021

Governance Achievements

  • Adopted the organizational structure of a company with an Audit & Supervisory Committee in June 2022
  • Received high evaluations from global ESG evaluation institutions

Climate Goals & Targets

Long-term Goals:
  • Achieve a carbon-neutral and sustainable society by 2050
Medium-term Goals:
  • Achieve clean, comfortable, and healthy lifestyles and contribute to society and the global environment by 2030
  • Achieve a carbon-neutral and sustainable society by 2050
Short-term Goals:
  • Increase net sales to ¥710.0 billion and operating profit to ¥54.0 billion in FY2022
  • Increase percentage of sustainable products to 73% (Japan) and 61% (International) in FY2023
  • Reduce total CO2 emissions from business sites to 294 thousand tons in FY2023

Environmental Challenges

  • Impact of COVID-19 on production, sales, logistics, and services
  • Rising raw material costs
  • Supply chain disruptions
  • Rising geopolitical tensions
  • Worsening natural disasters
Mitigation Strategies
  • Prioritized the safety of all Group employees
  • Implemented risk examinations and risk simulations regarding large-scale earthquakes
  • Responded to environmental issues by promoting the TOTO Global Environmental Vision
  • Carried out long-term scenario analysis based on the TCFD
  • Formulated business continuity plan (BCP) in consideration of the impact of large-scale disasters on the supply chain

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • CSR procurement initiatives
  • Sustainable Raw Material Procurement Standards
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Impacts from natural disasters
Transition Risks
  • Steep rises in carbon prices
Opportunities
  • Increase in opportunities to contribute to the environment through water-saving products

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation, GRI Standards

Certifications: Science Based Targets (SBT)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 3
  • Goal 6
  • Goal 17

The TOTO Group aims to contribute to the SDGs through its initiatives in Cleanliness and Comfort, Environment, and Relationships.

Sustainable Products & Innovation

  • WASHLET
  • SMART TOILET NEOREST Series
  • TOUCHLESS FAUCETS
  • Water-saving toilets
  • Eco-friendly plants

Awards & Recognition

  • Red Dot Design Award (10 consecutive years)
  • iF Design Award (9 consecutive years)
  • GREEN GOOD DESIGN AWARDS 2021
  • Japan Ceramics Award 2022
  • World Star Award 2022

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:19,990 thousand tons CO2
Scope 1 Emissions:267 thousand tons CO2
Scope 2 Emissions:352 thousand tons CO2
Scope 3 Emissions:18,166 thousand tons CO2
Renewable Energy Share:46.8%
Total Energy Consumption:1,224,689 MWh
Water Consumption:2,407 thousand m3
Waste Generated:116.4 thousand tons
Carbon Intensity:0.24 tons CO2/million yen

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions during product use by 3.35 million tons compared to 2005 products.
  • Reduced water consumption during product use by 0.95 billion m3 compared to 2005 products.
  • Achieved 46.8% renewable energy introduction rate.

Social Achievements

  • Improved customer satisfaction in after-sales service (94.0 points in 2022).
  • Improved employee satisfaction in Japan (74.9 points in 2022).
  • Reduced employee turnover rate due to life events to 0.0% in 2022.

Governance Achievements

  • No violations of Anti-Monopoly Act, Anti-Corruption Law, or legal violations related to import and export management.

Climate Goals & Targets

Short-term Goals:
  • Increase percentage of sustainable products to 80% (Overseas) and 75% (Japan) by FY2023.
  • Reduce CO2 emissions during product use to 3.45 million tons by FY2023.
  • Reduce water consumption during product use to 1.0 billion m3 by FY2023.

Supply Chain Management

Supplier Audits: 531

Responsible Procurement
  • TOTO standards

Climate-Related Risks & Opportunities

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:16760 thousand tons CO2
Scope 1 Emissions:141 thousand tons CO2
Scope 2 Emissions:113 thousand tons CO2
Scope 3 Emissions:16506 thousand tons CO2
Renewable Energy Share:36.8%
Total Energy Consumption:1224689 MWh
Water Consumption:2017 thousand m3
Waste Generated:94.1 thousand tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions from business sites (Scope 1 and 2) from 267 thousand tons in FY2022 to 254 thousand tons in FY2023
  • Avoided Emissions of water during product use: 0.91 billion m3
  • Avoided Emissions during product use: 3.16 million tons
  • Increased renewable energy introduction rate to 36.8%

Social Achievements

  • Improved customer satisfaction in after-sales service (Japan) to 94.2 points
  • Improved showroom satisfaction (Japan) to 76.5 points
  • Increased percentage of female managers in Japan to 20.4%
  • Reduced employee turnover rate due to life events in Japan to 0.0%

Governance Achievements

  • Zero violations of Anti-Monopoly Act, Anti-Corruption Law, and legal violations related to import and export management

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Achieve 60% renewable energy introduction rate by FY2026
Short-term Goals:
  • Reduce water consumption during product use to 1.14 billion m3 by FY2026
  • Reduce CO2 emissions during product use to 3.60 million tons by FY2026
  • Reduce CO2 emissions from business sites (Scope 1 and 2) to 229 thousand tons by FY2026

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: 518

Responsible Procurement
  • TOTO standards

Climate-Related Risks & Opportunities

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

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: ISO 14001, ISO 9001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed