A Rewarding Workplace | Diversity & Inclusion | Impact

Our Approach

LIXIL strives to create an environment that inspires pride in the company and enables each employee to maximize their productivity and potential. To support this aim, we are developing various measures to ensure employee wellbeing and striving to foster a comfortable and rewarding work environment.

We also aim to increase employee engagement by focusing on Employee Experience, namely any value that employees experience when working in our organization. Part of this focus involves strengthening the Employee Listening strategy.

In Japan, we have been gradually revising its qualifications and job grade systems, personnel evaluation systems, and compensation systems, etc. since FYE2023 with the aim of fostering a growth-oriented mindset and firmly established meritocracy, and pursuing Diversity & Inclusion (D&I) so employees can continue to feel inspired and enthused by their work.

LIXIL’s Purpose and Behaviors

LIXIL’s Purpose is the North Star that guides LIXIL’s employees in performing their daily work with enthusiasm and pride, and it inspires us to become more agile and entrepreneurial for sustainable growth. We have established the LIXIL Behaviors that guide how each employee should think and act in their daily work, regardless of the nature of their work or its location, and incorporated them into our personnel evaluation element.

In order to promote the LIXIL Behaviors, we hold workshops, display posters and stickers in our offices and factories, and actively incorporate discussions of the LIXIL Behaviors at meetings and other occasions to encourage greater awareness on a daily basis.

These activities give employees the opportunity to share their own ideas about LIXIL Behaviors along with specific stories, and to learn how to best incorporate those behaviors into their own actions.

Learn more about LIXIL’s Purpose and Behaviors >

LIXIL's Purpose and Behaviors

Ensuring the Wellbeing of Each and Every Employee

LIXIL is committed to creating an environment where every employee can enhance their wellbeing and lead a rich and fulfilling life. To enhance employee wellbeing, we are implementing the following initiatives to help foster a comfortable and rewarding work environment.

Company-wide Initiatives

Japan Initiatives

In addition to the above, we have revised systems for employees in Japan, including introducing a cafeteria plan to support employee wellbeing, revising various systems for safety and security in the workplace, and establishing asset-building programs like our retirement plan.

In FYE2025, we introduced "Karada-Shiru", LIXIL’s unique health indicator. This was implemented to help employees understand their own health status and proactively engage in their health management. This index encompasses eight key elements essential for maintaining a healthy mind and body, encouraging employees to prioritize their wellbeing and cultivate healthy habits.

The Eight Elements of "Karada-Shiru"

System/Measures	Eligible Employees	Overview
Introduced a cafeteria plan	Regular and contract employees of LIXIL Corporation and its subsidiaries	Introduced a point system that employees can put toward various welfare programs, including travel, self-learning, and comprehensive medical checkups.
Expanded our Bereaved Family Compensation System	Regular employees of LIXIL Corporation and its subsidiaries	Reorganized our Bereaved Family Compensation System and expanded survivor compensation in the event of the death of an employee.
Introduced Group Long-Term Disability (GLTD) Income Compensation insurance		Reorganized income compensation systems in the event of injury or illness and introduced Group Long-Term Disability (GLTD) Income Compensation insurance.
Revised our retirement allowance system		Ensured the system was easy to understand, was linked to basic salary, and reflected employee roles and contributions. Changed the system to a 100% defined contribution (DC) pension plan.

Sharing Information and Promoting Dialogue

In addition to asking managers for their understanding and support in relation to these initiatives, we have also established an information platform called the Wellbeing Knowledge Library to help raise awareness among all employees. The library introduces company-wide wellbeing initiatives, regional activities, consultation services, and recommended work styles.

We have designated the 14th of each month as Wellbeing Day, in which we share various information to help create an environment that supports the open discussion of wellbeing-related issues.

Global Wellbeing Knowledge Library

Formulating Initiatives and Measuring Their Impact

The opinions of our employees are crucial to the formulation and development of measures for ensuring wellbeing. LIXIL analyzes the results of our LIXIL Voice employee opinion survey and reflects those opinions in future policies. We have also specified wellbeing as one of the key metrics in the survey, and measure the effectiveness of any measures that are introduced.

Enhancing Employee Experience

LIXIL has been introducing specific measures around its Employee Experience initiatives with the aim of enhancing employee engagement. To better understand the processes and experiences that make employees like our company and feel job satisfaction, we are developing an Employee Listening strategy to actively gather employee opinions. Part of that strategy includes conducting our annual LIXIL Voice employee opinion survey of all employees^*1.

We have determined the following outcome metrics for the survey to measure whether we are indeed providing an excellent employee experience^*2.

LIXIL Voice employee opinion survey: Response rate

Employee Experience Outcome Metrics in Our Employee Opinion Survey

Engagement
Inclusion
Wellbeing

*1 Scope: Directly hired employees of LIXIL Corporation and its subsidiaries (including part-time employees).

*2 We define engagement, inclusion, and wellbeing based on the percentage score calculated from the proportion of employees who choose 4 or 5 on a response scale of 1 to 5 for the relevant statements. The following four statements are used to measure engagement:
1) I would recommend LIXIL to people I know as a great place to work
2) My work gives me a feeling of personal accomplishment
3) LIXIL motivates me to contribute more than is normally required to complete my work
4) I am proud to work for LIXIL

FYE2025 Survey: Key Findings

Response rate: 90%
Engagement: 72%
Inclusion: 71%
Wellbeing: 77%

Please see below for survey response rates and engagement figures over the past four years.

Scope and details of our social data >

Please visit the following links for more information on inclusion and wellbeing.

Learn more about working to establish an inclusive culture >
Learn more about ensuring the wellbeing of each and every employee >

Formulating and Implementing Action Plans

In Japan, we develop and implement action plans in response to the respective result of LIXIL Voice for each division.

Action Plan Creation and Submission According to Each Division

Background: Following the survey conducted in June 2023, a company-wide in-depth investigation was carried out, and an action plan was created.The survey of the following year indicated an upward trend in the company’s overall engagement score. Based on these results, we decided to place significant emphasis on developing actions tailored to the results of each division for the following FYE2025.

Action: A total of 23 action plans have been created across all divisions. Many of the plans that were created focused on career development and communication. Specifically, numerous divisions created plans to provide more opportunities for employees to speak with leaders and to foster interaction among colleagues.

Case Study 1: "Connect with Kinya"

Background: Our June 2024 survey highlighted a clear need to enhance employees' understanding of our management and strategy, and to boost communication with leadership. In response, we established a forum for employees to engage directly with CEO Kinya Seto.

Action: The inaugural "Connect with Kinya" session was held in December 2024. Over 900 people participated in the hybrid (in-person and online) session.Employees posed numerous questions during the CEO's message and Q&A session. A similar event was held in Germany in March 2025 for our employees in Europe, attended by approximately 300 individuals.

Effect: We successfully provided a platform for employees to directly hear messages from the CEO and engage in dialogue through a Q&A session, all within an event designed for easy participation by anyone. By offering the hybrid format with Japanese and English interpretation, we successfully reduced the perceived distance between our global employees and top management.

Case Study 2: LIXIL Water Technology Japan (LWTJ)

Background: The June 2024 survey showed an increase in LWTJ's overall engagement score. However, many organizations still identified the need for action plans focused on improving understanding of management policies, strategies, and initiatives, and clarifying the connection between these and individual employees' work and goals.

Action: A new company intranet page was launched to help LWTJ management and employees share a common understanding of goals, challenges, and current conditions.In addition to publicizing information, we also provided materials that leaders could use to explain strategies and policies during team meetings and other gatherings.

Effect: Everyone at LWTJ can now share the same understanding of our goals and challenges. We also consolidated and simplified the presentation of management policies, performance, and activities to facilitate understanding.

Award System

LIXIL believes that employees experiencing a sense of satisfaction and achievement through tackling challenges together to shape the future of living will lead to fresh innovation and further growth for the company. We have introduced the company-wide LIXIL AWARDS^*, a program to create a working environment where employees around the world can recognize each other’s daily efforts and contributions and celebrate achievements together.

To strengthen the link with our management strategy, we have adopted the strategic initiatives of the LIXIL Playbook as evaluation criteria for this award. Each time, initiatives are nominated from each division for consideration. Then, executive officers and senior managers select initiatives that contribute most to the strategic initiatives for special commendation. The winners are also presented with a monetary reward. We have also introduced an interactive framework where award recipients are interviewed after the announcement of the results and teams selected by an employee voting system get to share more details about their activities with the entire company.

LIXIL Playbook >

At the LIXIL AWARDS held in June 2024, over 850 projects were commended and 4,300 winners received a monetary reward. Award-winning projects included initiatives to promote the Impact Strategy that underpins the LIXIL Playbook, and help achieve its relevant targets. We continue to create a working environment that inspires all employees, the ultimate drivers of value creation, to work together toward the same goals with the aim of enhancing corporate value through business activities and growth and having a positive impact on social and environmental issues.

* For all employees (including part-time employees). In Japan, the awards have been presented annually since FYE2018. In FYE2021, we expanded the scope to cover LIXIL International.

Encouraging Individual Employee Growth

In Japan, we have been reforming our human resources systems since April 2022 with an emphasis on developing qualifications and job grade systems that drive people to challenge themselves, personnel evaluation systems that encourage personal and organizational growth, and performance-linked compensation systems. Through these systems, we aim to create an environment that enables everyone to demonstrate their full potential, regardless of age, gender, and other factors and supports the individual growth of all employees.

Overview of Reform of Human Resource Systems

System/Measure	Eligible Employees	Overview
Revised job grades and remuneration system	Regular employees (managers only) of LIXIL Corporation and its subsidiaries	Revised the grade system based on duties and responsibilities. Aiming to eliminate personal factors, increase transparency of grade setting, and promote the active appointment of young talent and female talent. Introduce a system that more strongly reflects individual contributions and business performance in compensation decisions.
Abolished our work location-specific employment system (regional wages)		Eliminate wage differences that reflect the possibility of future job transfers or regions where employees work, and focus on building a merit-based remuneration system based on individual duties and responsibilities.
Abolished our housing allowance	Regular employees of LIXIL Corporation and its subsidiaries	Eliminate personal factors and ensure remuneration more strongly reflects individual job responsibilities and contribution to business performance.
Expanded child allowance	Regular employees (excluding managers) of LIXIL Corporation and its subsidiaries	Expand support for employees with children to accelerate our efforts to promote D&I.

Labor-Management Relationship

LIXIL believes that efforts to build a relationship of trust between the union and the company and to establish good working environments help create a fair and rewarding workplace and lead to improved business performance. LIXIL Corporation has established a labor union which adopts a union shop system for regular employees of the company and achieved a membership rate of 100% (as of March 31, 2024).

The fundamental labor-management agreement includes items relating to health and safety and working environments. Labor-management consultations are conducted in the form of regular discussions and information-sharing on business status, working conditions, health and safety issues, etc., and we work to resolve any issues.

The union and the company are working together on issues related to the reform of human resources systems that LIXIL Corporation is promoting by setting up a dedicated committee consisting of select labor and management representatives and holding repeated discussions. When working conditions and/or other systems are newly introduced or revised as a result of labor-management consultations, the union and the company cooperate to ensure employees are aware of the changes. This is facilitated by posting the information on the company intranet, sharing the information through the Human Resources Department, and distributing copies of the Union Guide compiled by the union to all members.

Creating Local Employment, Nurturing Local Talent

To help revitalize local communities, LIXIL employs graduates from technical colleges and high schools in the areas in which we operate to work in our Japanese plants. Encouraging employees to contribute to local communities through their work gives them a sense of fulfillment and pride, which then boosts motivation. They can also help with passing on manufacturing technology, expertise, and other skills to future generations when they continue to work in the same region for a long time. In recent years, we have expanded these initiatives to include sales and professional positions as we seek to actively secure and nurture local human resources.

Local Employment in Japan

ESG Data

Please see below for the scope and details of our social data.

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