LIXIL makes pioneering water and housing products that solve everyday, real-life challenges, making better homes a reality for everyone, everywhere.
LIXIL holds quarterly Impact Strategy Committee (formerly the Corporate Responsibility Committee*) meetings to ensure strategic action on sustainability issues.
In order to ensure a prompt and appropriate response across the whole of LIXIL, Impact Strategy Committee members comprise executive officers and leaders from corporate functions and our business units. The executive officer in charge of the Impact Strategy reports the results of committee discussions and deliberations to the Board of Executive Officers, enabling necessary decisions to be made. The executive officers and functional leaders, who are in charge of promoting initiatives under the strategy, also then communicate updates and decisions made in the Impact Strategy Committee to their respective functions to facilitate action. Information is also shared between the Impact Strategy Committee and other related committees that are deeply involved in activities linked to the strategy.
In FYE2023, our Corporate Responsibility Committee received progress reports on ongoing initiatives from the SATO Advisory Board, the Environmental Strategy Committee, and the D&I Committee at each meeting in accordance with our governance framework, and also discussed items relating to the determination of the Impact Strategy, updates to our environmental strategies, the disclosure of sustainability information, and the review of our material issues.
Regarding the compensation system for executive officers, we have introduced stock-linked compensation that helps encourage their contribution to improving the company’s medium- to long-term corporate value, including environmental, social and governance (ESG) factors. For officers who are expected to improve the company’s value over the medium- to long-term, including from an ESG perspective, the ratio of stock-linked compensation to total compensation is set higher based on the deliberation of the Compensation Committee.
* From April 2023, our Corporate Responsibility (CR) Committee has been replaced by the Impact Strategy Committee.