• Situation on the Ground
• Our Strategy
• Defining Our Strategic Approach and Mid-Term Targets

Situation on the Ground

The 2015 Paris Agreement seeks to keep the rise in global average temperature well below 2°C above pre-industrial levels, and aims to limit that rise to 1.5°C. To achieve this, the world must reduce CO₂ and other greenhouse gas emissions to net-zero by 2050.

In addition, approximately 800 million people have to walk more than 30 minutes for safe drinking water and by 2050, 40% of global population is likely to experience water stress. Due to the increase in global population and household water use, total household use of water has increased six-fold since the 1960's.

Furthermore, global resource consumption is expected to more than double by 2050. To help change this situation, the world is gradually shifting from a one-way economy, which mines resources, makes products in large quantities, and eventually discards them, to a circular economy that closes resource loops.

Our Strategy

In order to realize LIXIL’s Purpose of “making better homes a reality for everyone, everywhere,” we have determined Water Conservation & Environmental Sustainability as one of the strategic pillars of our Impact Strategy and positioned the following six areas as priority material issues.

Climate Change Mitigation and Adaptation
Water Sustainability
Circular Economy
Environmental Impact of Product Lifecycle
Environmental Management
Conservation of Biodiversity

Three Focus Areas to Achieve Our Vision

Defining Our Strategic Approach and Mid-Term Targets

We reviewed our strategy in FYE2023 to help further accelerate initiatives designed to achieve our Environmental Vision 2050. LIXIL aims not only to fulfill our social responsibilities, but also to create new value, and maximize the impact of our business. With that in mind, we have divided our three focus areas into three phases: Our Operation, Our Value Chain, and Expanding Our Impact, and have stipulated a comprehensive strategic approach and medium-term targets for each of these phases.

Our Operations: Business processes that include our production sites, office and sales activities, involving our employees and residents in the surrounding areas.

Our Value Chain: Our value chain refers to a series of processes related to procurement of raw materials and production, that are related to the products and services that we sell and are purchased by end-users. This includes packaging during transportation, logistics, and end-user use of our products, interaction and processes that involve external stakeholders, such as our business partners and end-users.

Expanding our Impact: This goes beyond production, user phase of our products in the value chain, and providing solutions that address the environmental challenges of the world. Identifying issues that contribute to the future of the planet that go beyond the framework of our business.

1. Climate Change Mitigation and Adaptation

Buildings account for about 28% of the world's energy-related CO₂ emissions, with residential sections alone accounting for 17%. We are committed to reducing our environmental impact, and at the same time, we help with Mitigation and Adaptation through our environmentally friendly products and services.

In FYE2022, we compiled medium-term targets in the area of climate change mitigation and adaptation. By FYE2031, we aim to reduce CO₂ emissions from our business sites (Scope 1 and 2) by 50.4% (SBT 1.5℃ level) compared to FYE2019 and to reduce CO₂ emissions form supply chains (Scope 3) by 30% (SBT WB-2℃ level) compared to the same year. Meanwhile, we are also working with suppliers to reduce CO₂ emissions from procurement by encouraging suppliers to cut CO₂ emissions during their manufacturing processes and by using low-carbon raw materials and components, fewer resources to make products, and recycled materials.
LIXIL has renewed its certification for Scope 1, 2, and 3 targets in line with the Science Based Targets initiative (SBTi) target to cap global temperature increase at 1.5℃.

We are committed to the reduction of CO₂ emissions, that are not limited to direct reduction of CO₂ emissions from LIXIL's business. To expand our impact, we have actively provided products and services in Japan to help reduce Scope 3 emissions during product use, and we have set a target to increase the sales ratio of energy and water-saving faucets and water-saving toilets to 100% by FYE2031. In order to help promote the transition to a low-carbon society, we have also set a target to increase the sales ratio of high-performance windows for detached houses to 100% by FYE2026.

2. Water Sustainability

As a leading company in the water-related product industry, providing products such as toilets, kitchen systems, prefabricated bathrooms, and faucets, LIXIL strives to help achieve global water sustainability so that people can get the most out of the water they use.

LIXIL is promoting the responsible use of water in its business processes on a global scale. Our mid-term target is to improve water use efficiency at our business sites by 20% by FYE2031. At water-scarce sites, we take appropriate steps to improve water efficiency, recycle water, and manage wastewater.

Through water-saving products and services such as hot water-saving faucets and toilets, we aim to contribute to a global reduction of 2 billion m³ in water consumption FYE2025.
In addition, we are promoting reduction of water consumption through behavioral change and water leakage prevention measures with our IoT solutions.

LIXIL is working to reduce the risk of groundwater contamination by increasing access to safe sanitation facilities and safer water. For homes in areas with access to tap water, our filtration faucets and water purification cartridges contribute to safer, better-tasting water. We are committed to the sustainability of water.

3. Circular Economy

LIXIL uses a variety of resources, including metals, timber, resin, and ceramics. In order to use limited resources more sustainably, we promote circular manufacturing practices that consider the entire product lifecycle, from raw material procurement through to manufacturing, product use, and disposal. We are also pursuing initiatives based on the LIXIL Plastics Action Statement to reduce the amount of plastic used, recycle plastic, and develop alternative materials.

We aim to make effective use of resources by reducing waste in our production processes and improving the recycling rates. Specifically, we have set a target of increasing the recycling rate of waste generated from our business sites to 90% globally by FYE2026.

LIXIL is promoting the use of recycled materials such as recycled aluminum, recycled resin, and recycled wood in order to increase the ratio of recycled and renewable materials used for its products.
LIXIL has set a target to increase the ratio of recycled aluminum used in its housing business to 100% by the fiscal year ending March 31, 2031.

We can not only recycle waste generated by our business processes and recycling for our own products, but also contribute to the realization of a circular economy in cooperation with stakeholders such as governments, municipalities, industry associations, and distributors.

Mid-Term Targets announced in 2023

In 2023, we have updated our strategy by setting mid-term targets qualitatively and quantitatively, and actions for all three focus areas to achieve our environmental vision 2050.