Here is an overview of our key initiatives and their results for FYE2022.

Accelerating Initiatives for Upholding Human Rights

Respect for human rights forms the foundation of LIXIL business and sits at the very core of our activities. Based on the LIXIL Human Rights Principles, we have identified seven key issues as focus areas for mitigating potential human rights risks in order to promote initiatives to uphold human rights.

Revised Human Rights Principles

In FYE2022, we revised the Human Rights Principles that we had formulated in FYE2016 to strengthen our efforts to uphold human rights. We conducted the revisions by considering the global trends, international standards, and the criteria used by ESG-rating agencies, as well as the key human rights issues, current conditions, and challenges within LIXIL itself. Our Human Rights Due Diligence Task Force led the examination of the elements that need to be included in our Human Rights Principles. The revised principles have been approved by the Board of Executive Officers and signed by the CEO. Please refer to the following item for more details on the revision process and content.

Human Rights ＞

Conducting Human Rights Risk Assessments of All Employees

LIXIL is using several methods in our human rights due diligence to identify and mitigate potential human rights risks. In FYE2021, we conducted a human rights risk survey of all staff at leader level or higher in departments closely linked to the key human rights issues. Then, in FYE2022, we conducted a survey of all global employees (including indirect employees).

Survey Outline

・Timing: November 2021
・Scope: All employees working at LIXIL Corporation and its group companies (including indirect employees)
・Survey items: 23 items relating to LIXIL’s key human rights issues
・Method: Online survey (response rate: 57%)

Main Analysis Results

The rate of positive responses*1 to our human rights initiatives was very high at an overall average of 85%. Meanwhile, we also received a few negative responses*2 in some areas. The following trends were identified as issues that could result in potential human rights risks.

・By region: Japan exhibited a lower positive response rate than in other markets
・By age group: The older the employee and the longer they have been working for the company, the lower the positive response rate
・By job position: The positive response rate was lower among general staff compared to management staff
・By employment type: Business operations with a greater number of non-permanent employees showed a lower positive response rate

*1 When respondents selected “Agree” or “Slightly agree.”

*2 When respondents selected “Disagree” or “Strongly disagree.”

Plans to Remediate Risk

We have formulated plans to mitigate potential human rights risks identified in the survey and are implementing the following remedies. Please refer to the following item for more details.

Remediation ＞

Future Plan

We will continue to monitor LIXIL’s key human rights issues through our biannual LIXIL VOICE employee opinion survey. We also plan to conduct additional assessments to facilitate a more detailed analysis of any issues identified as potentially high risk in the employee survey. Through these efforts, we aim to enhance our understanding of the issues and formulate a solid response.

Further Strengthening Relationships with Stakeholders

We aim to achieve LIXIL’s Purpose of “making better homes a reality for everyone, everywhere,” and we know that working together with many different kinds of stakeholders is essential if we are to help solve various social issues. In FYE2022, we strove to strengthen our relationship with stakeholders through the following initiatives. Please refer to the following item for more details about our collaboration with stakeholders.

ESG Briefing

Following our first briefing focused on ESG in April 2021, we held our second ESG Briefing online in May 2022, with our CEO, Chairperson of the CR Committee, and two independent outside directors taking the stage. Entitled “Transformation for Impact,” we explained the paradigm shift in our business strategy and reform-focused initiatives.

Regarding the environment, we explained our governance system, the results of scenario analysis in line with the TCFD recommendations, our targets and progress updates, and initiatives to reduce environmental impact, all of which are aimed at addressing various risks and opportunities posed by climate change and other external changes. Regarding social aspects, we explained our initiatives and human resources strategies for building a more inclusive culture, and the achievements of our SATO business in the global sanitation and hygiene field. On the governance front, we explained how the supervisory frameworks and functions of the Board of Directors had evolved and how the Nomination Committee had enhanced its governance. We also engaged in dialogue with stakeholders by responding to questions during the Q&A session.

2022 ESG Briefing ＞
Stakeholder Engagement ＞

Expanding Our Partnership with UNICEF

In 2018, LIXIL and UNICEF formed the MAKE A SPLASH! global partnership to help advance Global Sanitation & Hygiene, one of LIXIL’s strategic pillars. The partnership combines the two organizations’ complementary strengths to build viable sanitation and hygiene markets serving more people by expanding the availability, affordability, and quality of goods and services. In addition to developing market-driven programs designed to help children and families stop open defecation and access affordable and appealing solutions, we are offering sanitation education, building supply chains, nurturing talent, and conducting advocacy with government bodies.

So far, we have reached 2.9 million people in communities in Ethiopia, Kenya, and Tanzania. Building on these achievements, in November 2021, we announced our expansion to reach children and families living in India, Indonesia, and Nigeria, three of the most populous countries. In addition, the scope of activities of the partnership will also expand, focusing on:

・Sanitation and hygiene demand generation activities, design and supply of solutions based on user needs and preferences
・Leveraging financing for local suppliers and consumers and ultimately supporting the growth of sanitation economies in emerging markets
・Supporting the formation of policies and regulations based on national targets and strategies

Leveraging Global and Local Partnerships to Maximize Community Value ＞

Strengthen Information Disclosure Based on TCFD Recommendations

LIXIL strives to ensure the prompt and transparent information disclosure to earn the long-term trust of our stakeholders and continue to grow sustainably together with society.

We announced our support for the Task Force on Climate-related Financial Disclosures (TCFD) in March 2019, and we now disclose environmental information based on the TCFD’s recommended disclosures. In FYE2020, we conducted scenario analysis of LIXIL Housing Technology (LHT) window sash/door and zero-energy house (ZEH) promotion businesses based on the 2019 support program provided by Japan’s Ministry of the Environment to help companies performance scenario analysis of climate-related business risks and opportunities in line with TCFD recommendations.

In FYE2022, we worked to strengthen information disclosure based on TCFD recommendations. We extended the scope of our scenario analysis to include LIXIL Water Technology (LWT) Japan and LXIL International, conducted risk and opportunity analysis, and devised countermeasures. We also launched a web page in June 2022 to disclose more detailed information on this analysis and the countermeasures.

Disclosure based on TCFD recommendations ＞

Protecting People from COVID-19

As a company that prides ourselves on supporting sanitary environments and healthy living, LIXIL was quick to establish a global team to help overcome the COVID-19 pandemic and put various countermeasures in place to protect our customers, employees, and local communities.

In FYE2021, we formulated a global framework that outlines organizational guidelines in a new normal environment, and are updating it as appropriate.

We are also pursuing initiatives that relate to the transformation in working styles, digitalization, product development, and globalization based on the various needs that have emerged during the pandemic.

Developed SATO Tap Handwashing Station

Protecting the Safety of Our Customers

We provide products with touchless functions and high ventilation performance, products that support teleworking, online showroom customer services, and information on how to improve housing ventilation.

• We adopted various digital tools to deliver services to customers safely. Examples include providing showroom services and seminars online and conducting sales activities virtually.
• To prevent the spread of COVID-19, we are strengthening our range of touchless faucets and IoT-driven products. We are also focusing on the development of products with superior ventilation capabilities and solutions designed to satisfy people choosing to work from home.
• As part of our emergency preparedness, we distributed our global production system to multiple sites and promoted supply chain integration and coordination.
• We issue informative advice on how to ventilate homes, etc.

LIXIL Online Showroom (Japanese only / A new page will open) ＞

Protecting the Safety of Our Employees

We are promoting work-from-home and other flexible working systems, encouraging the use of digital tools to improve internal communication, and conveying advice and guidance on how to prevent the spread of infections. Our manufacturing sites also introduced flexible working systems and enhanced hygiene management. We also pay a COVID-19 allowance to employees. In FYE2022, the allowance was granted to front-line employees who work in plants or other premises or interact directly with customers.

• We were able to shift smoothly to remote work thanks to the solid digital technology base that we have been gradually introducing for some time. That digital base also enables us to hold town hall meetings with managers and employees all over the world and conduct online training.
• We are expanding our flextime and remote-working systems and using digital tools to promote even better internal communication.
• At manufacturing sites, we introduced a flexible shift system, created a scheme that enables people to commute without using public transport, and further strengthened hygiene management.
• We are using internal social media and other channels to distribute information on topics such as preventing infection spread, mental health care, and remote work communication.
• We held COVID-19 vaccination clinics and published guidelines for vaccinations.
• We paid a special COVID-19 allowance to all employees worldwide.
- FYE2020: One-time payments equivalent to ¥50,000 to all global employees
- FYE2021: Special allowances equivalent to US$200 to all global employees
- FYE2022: Special allowances equivalent to ¥30,000 to front-line employees who work in plants or other premises or interact directly with customers
• Within Japan, we provided digital teaching materials on sanitation and hygiene issues to help support employees who have children.

Protecting the Safety of Our Communities

We are working to develop products that help prevent the spread of COVID-19 around the world as well as donating hygiene products and equipment to local communities and raising awareness of hygiene habits.

• We established a working group of employee volunteers to brainstorm and create products and services that help prevent the spread of COVID-19.
• We donated hygiene products and equipment worldwide:
- Donated hygiene products such as sanitizers, soap, masks, and handwashing equipment to local communities (China, India, Ethiopia, etc.)
- Donated daily essential and hygiene products to patients being treated for COVID-19 (Thailand)
• We raised awareness on good handwashing habits (China, India, etc.).
• We are helping to prevent the spread of COVID-19 by installing more of our SATO Toilet Solutions for emerging markets and accompanying handwashing facilities in order to improve sanitation and encourage more widespread handwashing.