Water Conservation & Environmental Sustainability

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Connection to UN Sustainable Development Goals The LIXIL Group is committed to conserving water, energy, and other natural resources utilized in our products and services, across the supply chain from procurement through production, distribution, end use and product disposal.

Background

Sustainable use of natural resources is ever more critical for our society, and given the nature of LIXIL's business, there are multiple areas where our actions can make a difference. By 2030, approximately 47% of the world's population is expected to be living in areas of high water stress. Additionally, LIXIL's business is strongly linked to buildings, which account for 32% (24% residential and 8% commercial) of total global final energy use, and without action, energy use by buildings is estimated to more than double by 2050. With regards to other natural resources, aluminum, one of LIXIL's important raw materials, has been identified as one of the priority materials in the metals category and requires urgent attention.

Activities

LIXIL Group Enviromental Strategy

The LIXIL Group considers environmental challenges, such as water conservation and environmental protection, to be one of our most important business initiatives. As a 'Living Technology' company, we are committed to our Environmental Strategy, which pledges that LIXIL will provide environmental solutions through our products and services.

Environmental Vision 2030

To mitigate global climate change, the Paris Agreement set a long-term ambition to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century. In order to contribute to this carbon-neutral future, the LIXIL Group created a new Environmental Vision. By 2030, the positive environmental contribution from our products and services will surpass the environmental footprint from our entire business process, thus, achieving a NETZERO Environmental Footprint. We will achieve this through innovative technologies, such as low-carbon and water-efficient technology, and also by reducing environmental impact in every process of the business, including procurement, production, product use, and disposal.

NETZERO


As a part of our commitment to Environmental Vision 2030, LIXIL received validation from the Science Based Targets (SBT) initiative for its greenhouse gas emissions reduction target. To achieve this ambitious target, LIXIL Group will increase energy efficiency in its operations, and promote energy efficient products and services.


Core Environmental Strategy Themes

To achieve our Environmental Vision, we are focused on three core areas, based on clearly defined targets and actions plans.

  • Climate change mitigation and adaptation
  • Conservation of water resources
  • Sustainable use of resources

Environmental Sustainability Principles

The Environmental Sustainability Principles cover five key areas, as outlined below, and guide the actions of all LIXIL employees. From procurement to production, product use, and disposal, we are committed to creating a sustainable society throughout every aspect of our business, and taking responsible actions to respect our environment.

  • Continually improve environmental management systems and performance
  • Adhere to rigorous compliance
  • Develop and provide environmentally sound products and services
  • Reduce environmental impact in every process of the business operation
  • Proactively communicate with all stakeholders

2020 Mid-term Targets

Targets and KPI Action Plans for Addressing Environmental Issues
Mitigating and adapting to climate change (Greenhouse gas reduction) Water conservation Sustainable use of resources
1. Improve environmental value of products and services

Secure a reduction of CO2 emissions by 40% v. FY2015
R&D
  • Engage in R&D and develop products that help resolve environmental issues
Product development
  • Define what constitutes LIXIL Group's global "product CO2 emissions by products and the decrease in CO2 emissions", establish reporting lines, and set KPI and targets (FY2016)
  • Achieve KPI targets within all technology businesses that are linked to the targeted 40% decrease in product CO2 emissions (FY2017-FY2020)
  • Pursue Design for Environment, taking into account the entire product lifecycle
Sales
  • Focus on sales expansion strategies for eco-friendly products and services
2. Reduce environmental footprint across all operational processes

Reduce CO2 emissions by 8% v. FY2015
Procurement
  • Cooperate with and encourage suppliers to fully embrace responsible procurement, reduce their environmental footprint and disclose information
Manufacturing
  • Reduce CO2 emissions by 8% (reduce energy use by 5%)
  • Improve water use efficiency
    ⇒Assess our water usage, evaluate the risk, identify high-risk facilities, and build action plans starting with high risk facilities
  • Achieve 95% or more recycling of waste
Logistics
  • Improve consigners' CO2 emissions by 5%
Sales
  • Reduce electricity charges or overall cost of utilities by 5%
Product use & disposal *See Product Development in Section 1 above
3. Build an effective environment management system
  -Ensure strict compliance
  -Strengthen risk management
  • Strengthen governance, including the committee framework, reporting lines, and Group-wide rules and regulations etc.
  • Maintain zero compliance violations (requiring administrative guidance or incurring a penalty)
  • Establish and achieve an environmental risk management plan taking into account locality and economic viability

Progress on the LIXIL Environmental Vision 2030 Target (as of FY2016)

Approximately 80% of the environmental impact caused by the LIXIL Group value chain occurs when our products are used, making product and service initiatives the most important aspect in achieving our Environmental Vision 2030. In FY2016, the entire Group united in an effort to gain a better understanding of the environmental impact of our entire value chain and develop global activities to reduce that impact. In FY2016, the Group increased production due to strong global product sales. As a result, product contribution to lower CO2 emissions increased by 1.08 times compared to FY2015, and CO2 emissions from operations increased by 5%.


Environment

With the desire to help people live in harmony with the Earth, we are committed to continuing our efforts to be environmentally sound in every aspect of our businesses activities.

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