Our Approach

At LIXIL, supply chain management forms part of the foundation of our Impact Strategy. We are committed to responsible procurement, stable product supply, and ultimately expanding our positive impact across the entire supply chain. We conduct our procurement activities under sound partnerships with global suppliers, guided by our Procurement Principles and our Global Policy on Third Party Compliance for Suppliers. These activities are carried out in alignment with the Ten Principles of the United Nations Global Compact, covering the four areas of human rights, labor, environment, and anti-corruption. The LIXIL Code of Conduct also outlines the ethical behavior that is required of all employees and officers, including prohibition of bribery. Based on the LIXIL Human Rights Principles, we conduct business activities that respect the human rights of our suppliers and other business partners.

We clearly state our expectation that suppliers also support the principles set out in our Human Rights Principles and adopt similar policies. Furthermore, we distribute the Supplier Code of Conduct in multiple languages, expecting that suppliers respect human rights, comply with international labor standards, protect the environment, and engage in fair business practices. In FYE2023, we revised the Supplier Code of Conduct to strengthen our risk management system by adding stipulations related to human rights, labor, and the environment, and by clearly outlining the reporting hotline for violations and other concerns. The Code states our expectation that both direct suppliers and their upstream suppliers adhere to the same standards.

Additionally, we have established the Green Procurement Guidelines outlining our policy and standards for procuring parts and materials with minimal environmental impact. We collaborate with our environmental management department to request that suppliers understand and support our environmental initiatives and procurement activities in accordance with these guidelines.

The Role of Suppliers in LIXIL's Green Procurement Initiatives

① Establishment of Environmental Management System
② Abidance by Environmental Compliance
③ Thorough Management of Chemical Substances
④ Reduction of Greenhouse Gas Emissions
⑤ Conservation of Water Resources
⑥ Promotion of Resource Recycling
⑦ Conservation of Biodiversity

We continuously review our procurement practices and policies to meet the expectations of society and respond to changes in our supply chain. We ensure that revisions to the Procurement Principles remain consistent with the Supplier Code of Conduct and the Green Procurement Guidelines, which set clear expectations for supplier action on sustainability issues.

In Japan, we have endorsed the objectives of the Council on Promoting Partnership Building for Cultivating the Future, an initiative led by the Cabinet Office and the Small and Medium Enterprise Agency under the Ministry of Economy, Trade and Industry, and have issued our Declaration for Building Partnerships. We ensure that all employees and business partners are aware of this declaration, through which we aim to build a sustainable, mutually beneficial relationship with our partners throughout the supply chain. Following guidelines set by the Japan Fair Trade Commission and other government agencies, we also established our Policy on Arrangements for Appropriate Transaction Prices in January 2024 to share with our business partners and throughout the company. Furthermore, LIXIL is committed to ensuring the proper implementation of the policy through regular and ongoing monitoring.

Human Rights >
LIXIL Procurement Principles (Opens new window) PDF: 46KB >
Supplier Code of Conduct (Opens new window) PDF: 116KB >
Green Procurement Guidelines (Opens new window) PDF: 137KB >
Declaration for Building Partnerships (Updated February 2025) (Japanese only, opens new window) PDF: 165KB >
Policy on Arrangements for Appropriate Transaction Prices (Japanese only, opens new window) PDF: 418KB >

Management Framework for Responsible Procurement

Working With New Suppliers

LIXIL has established supplier assessment criteria to select new suppliers. In addition to quality, cost, delivery, technical capabilities, and stable supply capacity, we assess environmental factors including sustainable resource use and chemical substance management, as well as human rights and occupational safety. At the same time, we conduct compliance risk assessments. Based on the results of initial risk assessments that take into account business characteristics and other factors, we also verify the status of initiatives for anti-bribery, labor management, health and safety, and respect for human rights.

Before starting business with new suppliers, we share our Supplier Code of Conduct and require them to accept and follow the Code. We then evaluate their products before proceeding with any business relationship.

At LIXIL International, to comply with the German Supply Chain Act (GSCA)^*1, which took effect in January 2023, we have introduced the third-party assessment platform Integrity Next.^*2 This platform is used to conduct human rights and environmental due diligence during the selection of new suppliers. When initiating business relationships, suppliers are required to meet the minimum standards set by our company. In addition, after the start of transactions, we continue to use this system as a monitoring tool to track existing suppliers’ efforts on sustainability issues. Through this, we strive to identify, assess, mitigate, and prevent direct and indirect negative impacts on human rights and the environment across the entire supply chain.
In certain regions, including Europe, laws and regulations have been introduced that require companies to manage risks across their entire supply chain. Additional checks and the use of tools implemented by LIXIL in certain regions are intended to ensure compliance with these laws and regulations and are not measures that require the same response from all business partners.

*1 A law in Germany that mandates companies to ensure proper compliance with human rights and environmental due diligence within their supply chains

*2 Integrity Next (in English; Opens new window) >

A comprehensive risk management system aligned with guidelines published by the Federal Office for Economic Affairs and Export Control in Germany, designed to comply with the requirements of the GSCA

Working With Existing Suppliers

In Japan, we hold annual meetings for major suppliers to explain our Procurement Principles, Supplier Code of Conduct, and supply chain management strategy. We also present awards to outstanding suppliers at these meetings.

FYE2026 Annual Meeting for Suppliers

• Number of participating companies: 911 (Including 729 online participants)
• Number of awarded companies: 12

In addition, we prioritize important suppliers identified through the following criteria for monitoring, including responsible procurement surveys, remedial actions, and support initiatives.

Identifying Important Suppliers

LIXIL identifies important suppliers according to the following flow, based on criteria such as (1) whether they handle critical items, the difficulty of substitution, and transaction value, and (2) whether they handle items with high human rights, environmental, or product-specific risks.

Addressing High-Risk Areas

LIXIL has identified wood as a raw material with a high risk of inflicting negative impacts on human rights and the environment. We take steps to prevent and mitigate these risks.

High-risk areas are identified based on the risk factors listed below. After discussions by the Human Rights Due Diligence Task Force and relevant departments, they are approved by the Impact Strategy Committee.

• Human rights risks: Forced labor, child labor, low wages, excessive working hours, occupational health and safety issues
• Environmental risks: Impact on global warming, water resources, and ecosystems
• Legal risks: Domestic and international regulatory trends related to specific materials and human rights due diligence
• Business risks: Purchase value and relevance to key products

Looking ahead, we will gradually implement similar initiatives for other raw materials identified as having high risks of negative impacts on human rights or the environment.

Disclosure report in response to TCFD and TNFD recommendations >

Responsible Procurement Survey, Remediation, and Support

LIXIL conducts and follows up on responsible procurement surveys to identify supply chain risks at an early stage and engage in dialogue with business partners when issues arise.

Details of the process are outlined below:

1) Select suppliers to be surveyed in accordance with our established flows for identifying important suppliers, considering prior-year transaction value and other relevant indicators.

2) Conduct a responsible procurement survey for selected suppliers, covering CSR management, fair business practices, human rights, labor, occupational health and safety, global environment conservation, and community contribution.

3) Aggregate survey results and identify suppliers below the evaluation threshold as high-risk suppliers.

4) Manage high-risk suppliers individually for improvement.

Responsible Procurement Survey Results

Scope: Suppliers of LIXIL Corporation and its subsidiaries

Japan: Procurement at operating sites in Japan

Overseas: Procurement at operating sites outside Japan

*1 Coverage ratio: the share of total purchases made from surveyed suppliers 

*2 Figures in parentheses for each fiscal year represent the number of surveyed suppliers / the total number of suppliers across all business divisions

Supplier Engagement

LIXIL provides its global suppliers with a variety of information to address issues and risks identified through the responsible procurement survey. We also offer ongoing support through dialogue conducted via on-site visits and online interviews.

Building on these collaborative efforts, we also focus on supporting suppliers’ proactive activities, including providing advice on the disclosure and communication of their sustainability information.

Number of Suppliers Visited and Interviewed Online in FYE2026

• Japan: 14
• Overseas: 14

Training Our Buyers

Our employees in the procurement departments select suppliers and conduct purchasing in compliance with our Procurement Principles and Global Policy on Third Party Compliance for Suppliers. These employees play an important role in addressing sustainability issues across the supply chain.

To maintain global consistency and share best practices, our headquarters procurement department actively supports compliance and capacity-building initiatives. We also provide procurement compliance training led by members of the headquarters procurement department to buyers at global operating sites three times a year. At least one of these training sessions is focused on human rights. In addition, as part of more practical training, headquarters personnel visit suppliers with local buyers. Through company-wide efforts to promote responsible procurement, we also provide the necessary support to suppliers.

Examples of procurement compliance training topics

• Revised Logistics Efficiency Act in Japan (Act on the Efficiency of Distribution of Goods)
• Appropriate practices for providing order forecasts to suppliers
• Handling of technology and intellectual property rights
• Revision of the Promotion Standards under the Proper Transactions Act in Japan (Act on Preventing Delay in Payment to Small and Medium-Sized Entrusted Business Operators in Relation to Manufacturing Consignment)

Concern-Raising System (Whistleblower System)

We accept reports of potential compliance violations involving LIXIL from external stakeholders, including material suppliers and contractors, through the LIXIL Compliance Hotline – Speak Up!, an online system available in 15 languages. In Japan, an additional reporting channel is provided via an external law firm. Anonymous reporting is possible through all channels. By receiving concerns from suppliers through these channels, we work to mitigate risks and enable corrective and remedial actions.

LIXIL Compliance Hotline – Speak Up! (Opens new window) >
Submit information via an external law firm (Japanese only, opens new window) >