Circular Economy

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Page image: Circular Economy

Progress in FYE2026 (as of March 31, 2026)

Waste recycling rate
93.5%
Use of recycled aluminum
86%

Our Approach

The volume of natural resources extracted from the earth has tripled in the past 50 years and is expected to increase by approximately 60% from 2020 levels by 2060.*1 LIXIL has designated the circular economy as one of our focus areas to achieve the LIXIL Environmental Vision of “Zero Carbon and Circular Living.” We will ensure the sustainable use of limited resources and reduce waste by promoting circular production throughout the entire product lifecycle, from the procurement of raw materials, including metals, wood, resin, and ceramics, to manufacturing, consumer use, disposal, and recycling. We do so by prioritizing resource efficiency and informed product designs that facilitate recovery through recycling and reuse.
While the amount of plastic waste has more than doubled worldwide in the two decades since 2000, the recycling rate remains at just 9%.*2 Fueled by the LIXIL Plastics Action Statement, we are reducing the amount of plastics we use, closing the loop for these plastics, and developing alternative materials.

LIXIL Plastics Action Statement (Opens new window) PDF: 1.3MB >

To achieve our goals, we take a comprehensive strategic approach and pursue mid-term targets through all three phases: Our Operations, Our Value Chain, and Expanding Our Impact. Beyond simply fulfilling our corporate responsibility to minimize the environmental footprint of our business and products, we work in collaboration with all our stakeholders to create new value in the environmental field to deliver an even greater positive impact on the environment and society.

*1 “Assessing Global Resource Use” by UNEP (Opens new window) >
*2 “Global Plastics Outlook: Economic Drivers, Environmental Impacts and Policy Options” by OECD (Opens new window) >

Defining Our Strategic Approach and Mid-Term Targets

Defining Our Strategic Approach and Mid-Term Targets

Our Operations

To ensure the sustainable use of limited resources and to reduce waste, LIXIL is reducing its raw material consumption and improving its recycling rates by optimizing its designs and production processes. We achieved our global target of increasing the recycling rate of waste generated from our business sites to 90%, ahead of our FYE2026 target year. Striving for even more ambitious goals, we have updated the target year to FYE2031 and raised the target to 95%. We promote higher-quality resource circulation beyond simple recycling through initiatives such as reusing plant-generated scraps in our own manufacturing and valorizing industrial waste that was once difficult to recycle.

Waste Recycling Rates from Business Sites

Waste Recycling Rates from Business Sites

Waste Reduction and Recycling at Production Sites

We are improving manufacturing processes for raw material use and waste reduction and promoting the recycling of waste generated at production sites. Initiatives at our plants in Mexico have significantly increased the recycling rate in North America. At our Aguascalientes Plant, recycling gypsum molds used for sanitaryware manufacturing boosted the recycling rate from 49.6% in FYE2022 to 93.5% in FYE2026.
LIXIL Housing Technology is working to reduce the sludge generated in our Vietnam Plant. We have obtained detoxification certification, enabling the use of all the sludge generated as a raw material through internal recycling. Since FYE2024, we have successfully maintained a recycling rate of over 99% for waste generated at the plant, including sludge—a major improvement over the 63.3% recycling rate when we began implementing initiatives in FYE2022.

LIXIL Water Technology Japan successfully valorized ceramic kitchen scraps, previously destined for landfills, as shot blasting material for boiler cleaning.

To further promote such initiatives implemented at each site, we have enhanced activities conducted across multiple plants and systems for permanent resource circulation management. We also hold in-person meetings for employees responsible for waste management at each plant, enabling us to share best practices, discuss challenges, and formulate solutions across our plants. This collaborative approach has enabled us to address a common issue by converting metal-attached cardboard tubes into sellable resources, thereby eliminating industrial waste generation from these materials at our plants.

In-plant Recycling of Resin Scraps

To realize "window-to-window" material recycling, LIXIL promotes the effective and circular use of resin by establishing dedicated recycling systems and installing sorting equipment for scrap generated at our domestic plants. In FYE2024, the Kurisawa Plant achieved a 100% recycling rate for in-plant resin window scrap. This was accomplished through key initiatives, including sorting scrap and off-spec products by color to grind them into raw materials, utilizing technology to reuse resin shavings as feedstock, and repurposing materials unsuitable for products into pallet spacer boards.

・100% Recycling of Ceramic Scrap from the Sanitaryware Production Process
LIXIL's Enokido Plant, our primary sanitaryware manufacturing site, has established and fully implemented a technology to recycle 100% of production-generated ceramic scrap back into raw materials for high-quality ceramic sanitaryware. Previously, limitations on reusing ceramic scrap that did not meet strict quality standards meant that approximately 200 tons of this material annually were downcycled for other uses, such as roadbed material. By leveraging our long-accumulated expertise, we developed a production method with an optimized raw material mix, enabling high-quality, "ceramic-to-ceramic" closed-loop recycling that preserves the full value of the resources. This technology not only conserves limited natural resources like clay and feldspar—the main ingredients in ceramics—but also minimizes our environmental footprint while advancing sustainable, circular manufacturing.

・Valorization of Byproducts Generated in the Aluminum Manufacturing Process
While LIXIL is actively promoting the use of recycled aluminum, increasing its usage naturally leads to a higher volume of aluminum dross—an oxide byproduct generated during the melting process. Traditionally, dross that could not be reprocessed was disposed of as industrial waste. Because aluminum dross generates heat and gases upon contact with moisture, its volatile properties meant only a limited number of waste processors could handle it safely, making stable, long-term disposal a persistent challenge. To address this, LIXIL established a pioneering technology to extract high-purity aluminum hydroxide from aluminum dross, which has been verified for reuse as a high-value raw material for our Ecocarat interior wall tiles.
Furthermore, we partnered with other companies to build a system for valorizing aluminum sludge from the surface treatment process, which was previously treated as industrial waste. This valorized material is now effectively utilized as an environmental remediation agent to neutralize harmful substances generated in incineration facilities and other industrial processes.

Our Value Chain

LIXIL is driving efforts to ensure the sustainable use of resources and reduce waste across its entire value chain. We are minimizing the use of virgin resources by increasing the ratio of recycled and renewable materials used in our products, including recycled aluminum, recycled resin, and recycled wood. These efforts include reaching the goal of using 100% recycled aluminum for aluminum extrusions in our housing business by FYE2031. We are also reducing single-use plastic packaging, expand working to building our supply of resource-efficient products designed for durability and reuse, and a circular system that encourages product-to-product recycling.

Ratio of Used Recycled Aluminum

Ratio of Used Recycled Aluminum

Minimizing the Use of Virgin Resources

LIXIL plants in Japan are promoting product development utilizing market-sourced recycled aluminum to reduce the energy required to manufacture aluminum products, such as smelting virgin ingots. LIXIL International’s faucet manufacturing sites also have insourced the alloy refining process in their smelting furnaces. Up to 80% of the brass used in GROHE brand products is recycled material collected from internal and external sources.

Feeding raw materials into the aluminum smelter

Feeding raw materials into the aluminum smelter

• PremiAL Low-Carbon Recycled Aluminum Profile Series
LIXIL has been developing aluminum recycling technologies for decades, achieving an industry-leading recycled aluminum usage ratio of 86%. In FYE2024, we launched "PremiAL R100" for commercial building extrusions. Made from 100% recycled aluminum, this series reduces CO₂ emissions by approximately 80% compared to products made from virgin ingots. In October 2025, we expanded this initiative by rolling out our standard "PremiAL"—which reduces CO₂ emissions by approximately 50% compared to virgin-ingot products—across all LIXIL products utilizing aluminum extrusions, at no additional cost. By establishing mass production systems at all our domestic and overseas aluminum extrusion plants, the PremiAL series has grown into a robust lineup of three offerings: the standard "PremiAL," and the made-to-order "PremiAL R70" and "PremiAL R100." Every product in this series has obtained third-party SuMPO EPD (Environmental Product Declaration) verification, visualizing the environmental footprint of building materials during construction.

PremiAL R100

PremiAL (Japanese only, opens new window) >

• Artificial Wood Decking
LIXIL’s artificial wood decking features an eco-conscious design utilizing 100% recycled materials. The boards are made from wood dust and chips generated in our manufacturing processes, along with recycled plastics recovered by local governments. Furthermore, focusing on plastic waste that was previously considered non-recyclable, we leveraged our proprietary technologies to develop "revia," an innovative new circular material. In 2026, we expanded our product lineup by introducing a version of our wood-grain Kirara decking that incorporates this revolutionary material.

Products made with recycled resources (Japanese only, opens new window) >

Decking DC

Decking DC

• Reducing Single-Use Plastic Packaging
At LIXIL, we are working to reduce the amount of plastic packaging discarded by end users and are transitioning to environmentally friendly alternatives. For example, our GROHE brand has been transitioning from plastic to sustainable alternative materials for product packaging since 2018 as a part of its Less Plastic Initiative. Consequently, all unnecessary plastic has been eliminated from these packaging materials as of FYE2023. In Japan, we are also successively switching the packaging of instruction manuals for end users from petroleum-based virgin plastics to biomass-based and recycled plastics.

Expanding Our Supply of Resource-Efficient Products

• Replaceable Functional Unit for Integrated Shower Toilets
Some of LIXIL’s integrated shower toilets are designed for easy replacement of only the toilet functional unit with the latest features, while continuing to use the existing ceramic bowl. Given the long lifespan of ceramic sanitaryware, extending the use of the bowl reduces waste generation, thereby minimizing the raw materials and CO₂ emissions required to manufacture new products.

Upgradable products (Japanese only, opens new window) >

Replaceable Functional Unit for Integrated Shower Toilets

Replaceable Functional Unit for Integrated Shower Toilets

• Replaceable Spout with Built-in Water Purifier
Some LIXIL kitchen faucets are designed with replaceable spouts that can be easily upgraded with built-in water purifiers at a later date, reducing the unnecessary disposal of entire faucets.

Upgradable products (Japanese only, opens new window) >

Upgradable faucet with water purifier

Upgradable faucet with water purifier

• EW Resin Windows (TOSTEM Brand)
With high insulation performance, EW Resin Windows improve home heating and cooling efficiency, thereby contributing to reducing CO₂ emissions during occupancy. Furthermore, by utilizing production scrap, LIXIL has tripled the recycled material content in these sliding windows* compared to our conventional models. The product is designed for high recyclability: it employs a glazing bead structure instead of adhesives to make resin and glass easily separable, and utilizes wrapping materials that can be recycled directly alongside the resin profiles. These sustainable design features minimize waste and reduce the consumption of virgin resources.

* For S Specification

Products made through circular production (Japanese only, opens new window) >
GREEN WINDOW (Japanese only, opens new window) >

Cross section of EW with easily detachable and recoverable resin frame and glass

Cross section of EW with easily detachable and recoverable resin frame and glass

• withCUBE Mobile Bathroom Booth
This mobile bathroom booth can be installed in as little as a day* and removed easily without requiring major construction, providing improved toilet solutions that effectively address the challenges faced by distribution centers and other locations. Providing toilet spaces that can be easily installed and removed at various locations through purchase and lease agreements reduces resources and energy consumption, as well as the waste generated over the product’s lifecycle.

* Preparatory plumbing, electricity, and other work are required separately.

withCUBE (Japanese only, opens new window) >

withCUBE

withCUBE

Creating a Circular, Product-to-Product Recycling System

Aiming to recycle end-of-life products back into the same high-quality products, LIXIL is working to realize a sustainable resource circulation system. By collaborating with diverse stakeholders—including national and local governments, industry associations, and business partners—we are building a comprehensive circular ecosystem that spans procurement, production, sales, installation, and recovery.

Expanding Our Impact

LIXIL is working to develop circular materials that make effective use of waste plastics, aiming to reduce the amount of those that are difficult to recycle.

• revia, a New Circular Material
revia is LIXIL’s new circular material that fuses wood waste from building demolition and renovation with almost all types of plastic waste, including composite plastics previously deemed unrecyclable. By recycling waste plastics that were traditionally destined for incineration, landfills, or thermal recovery, revia actively contributes to reducing CO₂ emissions. LIXIL initiated mass production of revia in FYE2025 and signed a partnership agreement with Tsu City in Mie Prefecture, Japan, to promote plastic resource circulation, marking a significant step toward establishing localized circular economies. Additionally, LIXIL supplied various products for Expo 2025 Osaka, Kansai, Japan, including "revia pave," a sustainable paving material utilizing this innovative resource.

revia (Japanese only, opens new window) >

revia wood decking panels installed

revia wood decking panels installed

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