LIXIL’s Material Issues



At LIXIL, we pursue our corporate purpose to “make better homes a reality for everyone, everywhere.” To that end, we have determined material issues that we, our stakeholders, and society in general consider to be of the highest importance for achieving our company’s sustainable growth and improving corporate value for driving progress on sustainable development. We are working to resolve these issues through our business activities while monitoring the progress against our goals.

LIXIL’s material issues are determined by selecting and evaluating issues from both a risk and opportunity perspective using the process below, taking into consideration LIXIL’s Purpose, Value Creation Process (VCP), management direction, Impact Strategy, stakeholder needs and expectations as well as current social circumstances and issues. We review these material issues to accommodate any changes in LIXIL’s immediate environment or society at large.

Positioning of the Material Issues

Our material issues are deeply linked to our VCP, which creates value for stakeholders and broader society based on LIXIL’s Purpose and available resources, as well as to our business strategies and Impact Strategy. To learn more about the connection between the Impact Strategy and our material issues, please follow the link below.

Impact Strategy >

Material Issues

In FYE2021, we reviewed the material issues selected in FYE2016 and newly set 20 material issues based on the process below. From FYE2023, we expanded our material issues to include “Conservation of Biodiversity.” We consider biodiversity to serve as the common foundation for our three focus areas in the environment domain and believe that it is vital to address the issue of biodiversity in order to ensure LIXIL’s sustainable growth. Company-wide efforts that include sustainable raw material procurement and the effective use of resources will contribute to biodiversity at an enterprise level.

We categorized these issues into priority levels in terms of degree of risk as weighted by the criteria of ESG-rating organizations and their impact on LIXIL, our stakeholders, and society at large.

LIXIL prioritizes areas that significantly impact our stakeholders and society at large and where we can make a considerable contribution to solving relevant issues by leveraging our strengths and taking proactive measures. We also prioritize areas where we need to strengthen our initiatives based on stakeholder needs. “Priority” material issues are deeply related to the three pillars of our Impact Strategy, and we continue to progress various initiatives with a focus on these material issues. In FYE2023, we also changed the priority levels of our material issues from "priority," "high," and "medium" to only “priority” in order to clarify the display of priority items.

Material Issues Selection Process

Material Issues

* From April 2023, our Corporate Responsibility (CR) Committee has been replaced by the Impact Strategy Committee.

Material Issues

Priority Level

Global Sanitation & Hygiene

We seek to promote and enable access to safe and hygienic sanitation practices, especially for women and girls, while preventing the harmful transmission of diseases for children. The SATO brand is LIXIL’s primary driver of R&D and business operations to tackle this challenge as it is tailored to the characteristics and needs of individual markets, including infrastructure, income levels, and environmental restrictions.

Climate Change Mitigation and Adaptation

To address climate change, we will (further) promote practices toward zero emission of CO2 from our business processes, products and services and provide solutions for adaptation to climate change.

Water Sustainability

As a leading company in the water-related product industry, we help achieve global water sustainability by tackling issues such as the scarce access to safe drinking water and the depletion of water resources so that people can get the most out of the water they use.

Circular Economy

To use limited resources more sustainably, we promote circular manufacturing practices that consider the entire product lifecycle, from raw material procurement through to manufacturing, product use and after use, and minimize waste emission.

Environmental Impact of Product Lifecycle

LIXIL products are used in people's daily lives for a long period. We promote environment-conscious product design to reduce environmental burden across the product lifecycle and the effects of any chemical substances that the products contain, while also helping to improve the environment for our customers and society at large.

Environmental Management

We will maintain compliance and improve environmental performance through continuous improvement of appropriate governance and environmental management.

Diversity & Inclusion

We promote a culture of diversity and inclusion. We are seeking to leverage the knowledge and perspectives of a diverse employee base as the driving force for growth and innovation and to develop products and services that contribute to improving the quality of life for everyone, everywhere.

Conservation of Biodiversity

LIXIL’s business activities depend on and affect biodiversity, so we will minimize losses where possible and promote business activities and solutions that contribute to nature positive.

Talent & Development

Employees are the driving force behind the value creation. With that in mind, we will engage in systematic human resource development and support proactive career development of individual employees.
Product Safety We will improve product quality and safety throughout their lifecycle based on the belief that quality is the key to earning the trust of customers and society.
Customer Satisfaction We will pursue customer satisfaction from the perspectives of both professional users and end users so that our customers enjoy amazing experiences in every aspect of their lives.
Employee Safety & Wellbeing We promote health management for greater corporate value by prioritizing the safety of all employees.
Ethics & Integrity We will build and maintain a culture of compliance where all employees and executives are proud to engage in daily business activities based on high corporate ethics.
Human Rights We position the respect for human rights as a fundamental requirement for business continuity. We are committed to promoting business activities that consider the human rights of all stakeholders, following international human rights principles.
Supply Chain Management We identify risks during procurement and promote responsible procurement of products and stable supply through cooperation with suppliers.
Corporate Governance We will continue to enhance our corporate governance structure. We expressly separate the functions of business execution and supervision to enable executive officers to make management decisions quickly and decisively while securing management transparency.
Risk Management We identify risks that affect business activities, and define particularly important risks as those to be managed with priority. We then manage risks for the entire company by having risk owners share and report the status of responses.
Stakeholder Engagement LIXIL believes that its business activities are supported by a large number of stakeholders. We will contribute to improving the quality of life and solving social issues through active engagement with each stakeholder.
Information Security To ensure the efficient and stable execution of business activities, we will update core systems, strengthen the management of personal information, and establish a system to ensure cyber security.
Tax Transparency We strive to ensure tax transparency and implement appropriate tax payments.
Responsible Marketing & Advertising We seek to provide appropriate information about our products and services.