Background

The 2015 Paris Agreement pledged to limit the increase in the global average temperature to less than 1.5°C above pre-industrial levels. Subsequently, the Glasgow Climate Pact clarified that the 1.5°C figure is no longer a target, but a de facto common goal. To achieve this goal, the world must reduce CO₂ and other greenhouse gas emissions by 45% by 2030 (compared to 2010) and net zero by 2050. Nineteen percent of global energy-related CO₂ emissions are from direct emissions by the building construction and materials industries, and another 18% are due to indirect emissions from buildings and homes in use.^*1

Total household water use has increased six-fold since 1960 due to population growth and other factors.^*2 As of 2024, 2.1 billion people lack access to safely managed drinking water,^*3 and five billion people across the globe are expected to face water shortages by 2050.^*4

Furthermore, the volume of natural resources extracted from the earth has tripled in the past 50 years and is expected to increase by another 60% by 2060.^*5 To help change this situation, the world is gradually shifting from a one-way economy, which mines new resources, makes products in large quantities, and eventually discards them, to a circular economy that closes resource loops.

*1 UNEP (Opens new window) >
*2 World Resource Institute (Opens new window) >
*3  “Progress on household drinking water, sanitation and hygiene 2000-2024” by UNICEF and WHO's Joint Monitoring Programme for Water Supply, Sanitation and Hygiene (Opens new window) >
*4 “2021 State of Climate Services: Water” by WMO (Opens new window) >
*5 “Global Resources Outlook 2024“ by UNEP (Opens new window) >

Our Strategy

Material Issues

LIXIL believes that making better homes a reality for everyone, everywhere is founded on sustainable living in coexistence with nature. Grounded in its purpose, Water Conservation and Environmental Sustainability is one of the core pillars of LIXIL’s Impact Strategy. LIXIL also identifies the following six areas as material issues.

Climate Change
Water Sustainability
Circular Economy
Product Innovation
Environmental Management
Conservation of Biodiversity

Learn more about LIXIL’s Material Issues >

LIXIL Environmental Vision 2050

Determining the Three Focus Areas for Achieving Our Vision

Climate Change

We seek to achieve net-zero CO₂ emissions by 2050 by reducing the environmental footprint of our business processes and providing environmentally sound products and services. Furthermore, we believe in not only cutting CO₂ emissions generated directly by LIXIL’s business processes, but also in contributing to society’s CO₂ emissions reductions through our housing and lifestyle solutions.

At LIXIL, we are expanding our impact to mitigate climate change and are helping in the transition to a low-carbon society. As a manifestation of our commitment, we have set a long-term target to reduce CO₂ emissions to net zero by 2050. Our long-term target was the first in the Japanese building materials industry to receive SBT Net Zero approval in March 2024.

Learn more about SBT Net Zero approval >

In addition, LIXIL is advancing adaptation to climate change by providing products and services that help mitigate the damage related to climate change, such as extreme weather events, including higher rainfall, large-scale typhoons, and other natural disasters, and rising temperatures.

Learn more about Climate Change >

Water Sustainability

As a leading company in water technology products such as toilets, kitchen systems, prefabricated bathrooms, and faucets, LIXIL is advancing efforts towards global water sustainability today to ensure the maximum benefits of water and for tomorrow.

To this end, we pursue responsible water use by improving water efficiency in our operations, reducing water withdrawal at water- stressed sites and driving water savings through conservation-focused products and services.
We collaborate with governments and the public sector to improve access to safe and clean water. For regions with access to tap water, we deliver purification technology to improve both taste and safety.

Learn more about Water Sustainability >

Circular Economy

LIXIL uses various resources, including metals, timber, resin, and ceramics. LIXIL pursues sustainable resource use and company-wide circularity initiatives throughout all stages of the product lifecycle: from procurement to manufacturing, product use, and responsible disposal. We are moving towards recycle-oriented manufacturing, including the use of recycled materials and reuse-conscious design. Guided by the LIXIL Plastics Action Statement, our initiatives include reducing the amount of and closing the loop for the plastics we use, and developing alternative materials.

Learn more about Circular Economy >
Learn more about Addressing Environment-related Laws and Regulations (Japanese only) >
LIXIL Plastics Action Statement (Opens new window) PDF: 1.3MB >

Conservation of Biodiversity

Conservation of Biodiversity is a material issue that forms the common foundation for our three focus areas in our environmental priorities, which is also vital to LIXIL’s sustainable growth. LIXIL’s business activities are reliant on water, minerals, forests, and other natural resources, all of which are supported by natural capital and its biodiversity. Today, the world’s precious biodiversity is disappearing at an unprecedented rate. Biodiversity plays an important role in ensuring stable and healthy natural resources through carbon and water recycling, water purification and climate adjustments. It also helps prevent or mitigate the damage caused by flooding, drought, and other natural disasters.

We are developing comprehensive measures to avoid and mitigate the negative effects of our business. To understand and identify LIXIL’s impact and dependencies on nature, we have applied the LEAP approach recommended by the Taskforce on Nature-related Financial Disclosures (TNFD) and assessed our value chain activities, including upstream.

LIXIL’s Green Procurement Guidelines include established policies for conserving biodiversity. We also conduct supplier outreach to seek their understanding and support of LIXIL’s procurement activities.

Disclosure report in response to the TCFD and TNFD recommendations (Opens new window) PDF: 283KB >

Defining Our Strategic Approach and Mid-Term Targets

We have set specific mid-term targets and are accelerating our efforts to achieve the LIXIL Environmental Vision 2050. We aim not only to fulfill our corporate responsibility by reducing the negative environmental impact of our business activities, but also to create new value and maximize our positive impact. We pursue this through a comprehensive and strategic approach that addresses the three focus areas through three phases: Our Operations, Our Value Chain, and Expanding Our Impact. By setting mid-term targets by phase, we are advancing efforts to create greater impact, while reducing environmental risks and seizing business opportunities for sustainable growth.

LIXIL Environmental Vision 2050 and Mid-Term Targets

Three Phase Approach

1. Our Operations
   Business processes at our production sites, offices, and sales bases, involving our employees and residents in the surrounding areas.
2. Our Value Chain
   Processes including activities related to products and services that we procure, such as mining and processing of raw materials, as well as activities related to products and services that we sell, such as packaging for transportation, logistics, and end use of our products. This involves interaction with external stakeholders, such as our business partners and end users across our whole value chain.
3. Expanding Our Impact
   This goes beyond the production and end-use phase of our products in the value chain, and extends to providing solutions that address the environmental challenges of the world. It also means contributing to the future of the planet by going beyond the framework of our existing business.

Governance Structure

LIXIL has an established governance system in which the Board of Directors oversees the company’s overall sustainability. We have also formed an Environmental Strategy Council (ESC), chaired by the Chief Environmental Impact Officer (CEIO) who is appointed by the Board of Executive Officers. Composed of members appointed by executive officers, the ESC meets six times a year in principle, to formulate rules and policies related to environmental governance. The council also deliberates measures to address environmental issues, including risks and opportunities related to climate change, natural capital and biodiversity losses. Additionally, the ESC develops environmental strategy and manages and monitors company-wide targets.

The results of ESC discussions and resolutions are referred to the Impact Strategy Committee for a vote and are reported quarterly to the Board of Executive Officers, ensuring robust oversight and transparency. The Board of Executive Officers discusses and approves targets and action plans related to LIXIL’s material issues, including environmental priorities. Progress on these matters is reported semi-annually to the Board of Directors for effective implementation and oversight. Matters related to climate change, loss of natural capital and biodiversity, among other environmental topics, are also reported to and discussed at the Governance Committee, which is composed of all members of the Board of Directors who monitor and oversee corporate governance.

In FYE2025, the ESC discussed and further incorporated LIXIL’s environmental strategy based on the assessment of progress towards targets in the three focus areas: Climate Change; Water Sustainability and Circular Economy. Additionally, the ESC deliberated on the establishment of regulations and policies related to environmental governance necessary to promote LIXIL’s environmental priorities.

Environmental Management Structure

As of April 2025

Targets and Progress

*1 By FYE2031

*2 Excluding products used for hot tub filling or full-body bathing that are not intended for use as energy- and water-saving faucets

*3 Excluding products designed for housing complexes

*4 By FYE2026

*5 Our initial FYE2025 target was not met. We have extended our efforts towards a new target year of FYE2031.

*6 Aluminum alloy 6063

We have established action plans for achieving our targets in each focus area and promoting relevant initiatives. Please refer to the following items for more details.

Learn more about Climate Change >
Learn more about Water Sustainability >
Learn more about Circular Economy >

Environmental Management

The goal of LIXIL Environmental Vision 2050 is to reduce environmental risks and enhance environmental value we create for society. To achieve this, we continuously strengthen company-wide environmental management activities.

LIXIL Environmental Sustainability Principles

LIXIL strives to help people live in harmony with the planet. We pursue a broad range of activities to protect the global environment throughout all processes from product development, conscious design, raw material procurement, production, distribution and logistics, product use, and end-of-life disposal. The LIXIL Environmental Sustainability Principles covers five elements to foster our commitment. These principles apply to all employees, including executive officers and directors, and serve as our policy for collaborating with external stakeholders, including suppliers and other key business partners. Revision of the principles is determined by the resolution of the Board of Executive Officers.

• Continually improve environmental management systems and performance
• Adhere to rigorous compliance
• Develop and provide environmentally sound products and services
• Reduce environmental impact in every process of the business operation
• Promote stakeholder engagement

LIXIL Environmental Sustainability Principles (Opens new window) PDF: 189KB >

Environmental Auditing

Internal Auditing

We have established an internal audit system to integrate our environmental policy into our business operations. Audits cover all our manufacturing and non-manufacturing sites and consolidated subsidiaries in Japan. We regularly assess the effectiveness of Environmental Management Systems (EMS) and its compliance to laws and regulations at our production plants through audits based on ISO 14001 standards. The ISO 14001 management system encompasses initiatives such as improved energy and water efficiency, waste reduction and recycling, and effective management of hazardous waste and air pollutants.
Internal audits at non-manufacturing sites and consolidated subsidiaries in Japan are conducted using our in-house EMS and ISO standards. We are steadily broadening the scope of these audits. When internal audits identify exceptions, we implement and verify remedial measures, ensuring the effective operation of our management system. The headquarters environmental department also conducts audits for environmental managers in our business units.

Acquiring ISO 14001 Certification

We are strengthening environmental governance by expanding ISO 14001 certification at production sites. In FYE2025, ISO 14001 certified sites reached 97.1% and the remaining 2.9% are also guided by ISO 14001 standards in their environmental management.

ISO 14001-Certified Sites (FYE2025)

List of ISO-certified sites (Opens new window) PDF: 44KB >

Environmental Education

We actively engage with employees to improve their understanding and build awareness of LIXIL’s environmental strategy and priorities, which include but are not limited to our efforts to address climate change, reduce energy and water consumption and waste through the circular use of resources. We explore and introduce appropriate educational training programs and awareness-raising campaigns that are tailored for the intended target group. We provide basic environmental training opportunities for new recruits on LIXIL’s environmental strategy, its overall approach, and our strategic targets and vision. We also distribute annual environmental education content for all employees via e-learning channels to inform on our core initiatives and the trends surrounding environmental issues for the given year. We provide more specialist environmental training to implement EMS by educating all EMS managers and operators on laws and regulations to be upheld at each site. We also distribute monthly reports on environmental trends and activities to directors, executive officers, and other senior managers, which are also available for all employees to read on our internal social media.

Internal Evaluation

Regarding compensation for executive officers, we have introduced a stock-linked compensation system that helps encourage their contribution to improving the company’s mid- to long-term corporate value, including environmental, social and governance (ESG) factors. For officers who are expected to improve the company’s value over the medium- to long-term, including from an ESG perspective, the ratio of stock-linked compensation to total compensation is set higher based on the deliberation of the Compensation Committee.

At LIXIL, incorporating our robust environmental strategy into our business strategy is a management priority, as outlined in the LIXIL Playbook. This sets out the path for achieving our medium- to long-term management indicators. The annual LIXIL AWARDS recognizes employee contributions to LIXIL Playbook goals. In June 2025, LIXIL AWARDS recognized over 850 projects, including those awarded for their environmental dimension to push efforts that reduce CO₂ emissions, improve energy efficiency, or commence the implementation of more environmentally sound production processes.

Learn more about Internal Awards Program >

Separately, we hold award campaigns in our technology departments in Japan to recognize business sites and units that contribute to addressing environmental issues. Every year awards go to activities that reduce environmental burden at production sites in pursuit of the LIXIL Environmental Vision 2050, and initiatives that promote the development of products and services to help address environmental issues.

Reducing Environmental Burden across the Product Lifecycle Through Product Innovation

LIXIL operates in over 150 countries, and our products are used by more than one billion people, every day. Reducing our environmental burden across the product lifecycle is essential, and product innovation—from raw materials procurement through manufacturing, consumer use, and disposal—propels our efforts to further contribute to the conservation of the global environment.

Environmentally Conscious Design

Product-Related Environmental Assessment

In Japan, we conduct an environmental assessment at each stage of the product development process to ensure compliance with environmental laws, and to help reduce the environmental burden in all three product lifecycle stages: production, product use, and end-of-life recovery.

Product-Related Environmental Assessment Steps

Evaluation Criteria for Product-Related Environmental Assessment

* F☆☆☆☆ (four-star) is the highest rating in the formaldehyde emissions level rating scheme.

Acquiring EPD and Introducing LCA in Each Region

The Environmental Product Declaration (EPD) is a third-party verified report issued following a quantitative calculation of environmental effects, including CO₂ emissions, during a product’s lifecycle based on ISO 14025 – Type III Environmental Declarations. LIXIL is working to obtain EPD certification in each region to serve as third-party verification of life cycle assessment (LCA) results that quantify environmental impact through accumulated inputs and outputs across the product lifecycle: from the procurement of raw materials through production, consumer use, disposal, and end-of-life recovery.

With increasing regulations for the calculation of CO₂ emissions for buildings in the EU, in FYE2025, the GROHE brand acquired International EPD certification for 18 groups of products (including 738 SKUs). In Japan, we acquired the SuMPO EPD for two sash windows for buildings and our PremiAL series of low-carbon recycled aluminum profiles. LIXIL currently has a total of 54 EPDs for GROHE, American Standard, and LIXIL branded products (as of March 2025). We have also set up guidelines to calculate CO₂ emissions for other products by measuring the amount of emissions generated by the consumption of energy, water, and raw materials during each stage of the product creation process. Based on the GHG protocol, LIXIL’s LCA has been streamlined to reflect the characteristics of its business and is being applied to calculate CO₂ emissions in the supply chain for procurement, production, sales, distribution, and consumption.

Management of Chemical Substances

LIXIL is advancing efforts to help contribute to mitigating environmental pollution, while pursuing comfort and improved lifestyles. This includes appropriately managing chemicals and reducing substances of concern that can affect human health and the environment, across all of our business processes and our products by 2030. This goal represents a key milestone to support our Environmental Vision 2050.

Learn more about Management of Chemical Substances (Opens new window) PDF: 107KB >

In Japan, LIXIL’s Environment, Procurement, and Quality corporate functions partner with technology functions under the direction of the CEIO to encourage appropriate management and operation of chemical substances in products. We have also established chemical substance management systems at sites and businesses in countries outside Japan to pursue relevant initiatives in establishing a management platform to further strengthen our governance to help maintain and enhance compliance within the organization.

Management of Chemical Substances in Our Business Operations

LIXIL is committed to the appropriate management of any chemical substance contained in its products based on the laws and regulations of each market in which it operates (EU RoHS Directive, REACH Regulation, etc.) and based on our own guidelines.

In Japan, the environmental management department and procurement department work together to ensure suppliers’ compliance with the LIXIL Chemical Substances Management Rank Guidelines, which stipulate substances that are not allowed to be included in our products. We require our suppliers to provide information on material composition to prove the non-use of chemical substances in our guidelines. We regularly gather data and information on legal and regulatory trends both inside and outside Japan which are reflected as revisions to our Chemical Substances Management Rank Guidelines when applicable to LIXIL. To facilitate understanding, relevant departments are informed of the latest legal and regulatory developments. A dedicated management system for chemical substances has been introduced in Japan which is used to appropriately manage information for collecting details of the chemicals in the products from our suppliers and internal data accumulation, and for disclosing such information to customers.

LIXIL’s Chemical Substances Management Rank Guidelines (Opens new window) PDF: 2.0MB >

GROHE brand discloses its proof of compliance with legal standards for substances that are not allowed to be included in its products, or for those that require special management in the GROHE Sustainability Position Paper which is published on its website and available for customers and other stakeholders.

Reducing Substances of Concern

We prioritize the reduction of substances of concern in our products to meet strong societal demands for new product development. We also collaborate with our suppliers to find alternatives to any substances of concern in our existing products.

Environmental Communications

To support and contribute to the Paris Agreement’s goal of limiting the increase in global temperature to 1.5ºC, LIXIL engages in public policy advocacy including industry association memberships and collaboration with our business partners. Whenever we join a new industry association, we assess whether the organization supports the Paris Agreement through its advocacy initiatives and policy engagements, and continue to review regularly to ensure alignment with our policy supporting the Paris Agreement. Should we identify any significant differences between LIXIL and the organization’s positions on climate initiatives, we would engage them in dialogue. If the misalignment could not be resolved in any form, we will discuss whether we continue or discontinue our membership.

We endeavor to maintain a proactive and cooperative dialogue with Japanese government authorities. When requested, we provide information leveraging our unique strengths and expertise. As an example of climate change-related public policy engagement, we have participated and engaged in discussions regarding policy ideas aimed at increasing awareness of products and services that support green transformation (GX). These efforts aim to address climate change and to enhance understanding of relevant policies in Japan. We also seek to strengthen collaboration among companies within industry associations to develop policy recommendations for the Japanese government.

The executive officer and senior managers in charge of government relations receive and review regular updates from each division on the alignment of our advocacy and public policy engagement activities with our environmental strategy ensuring consistency with the Paris Agreement. Any issues that could significantly affect our progress towards environmental strategy and targets are deliberated within the Environmental Strategy Council, chaired by the Chief Environmental Impact Officer (CEIO), and the Impact Strategy Committee, overseen by the executive officer in charge of Impact Strategy. Subsequently, the agenda is reported and deliberated in both the Board of Executive Officers and the Board of Directors.

Participating in Japan and Global Initiatives

LIXIL has declared its commitment to environmental conservation and is actively participating in initiatives in Japan and around the world to contribute to solving issues faced by the industry as a whole.

*1 A network of stakeholders that contribute to TNFD guidance development
*2 Companies and organizations that intend to start making disclosures aligned with the TNFD Recommendations in FYE2024 or 2025, and have registered on the TNFD website

Environmental Disclosures

To gain long-term trust from our stakeholders, we are committed to timely and transparent information disclosure.

External Evaluations & Awards

External Evaluations & Awards ＞