LIXIL makes pioneering water and housing products that solve everyday, real-life challenges, making better homes a reality for everyone, everywhere.
We are strengthening group-wide management systems to reduce environmental risks that we seek to address in our Environmental Vision 2050 and expand the environmental benefits that we offer to society.
In 2019, LIXIL updated its Environmental Vision to contribute to improving people’s comfort and lifestyles and a better future for our global environment. We will do this by reducing environmental impacts in all business processes from raw materials procurement through the end-of-life of products. Based on the 2050 vision, we aim to achieve net-zero carbon emissions and preserve water and natural resources in operations, housing and lifestyle solutions for future generations to become a leading company in environmental sustainability.
Realizing the Environmental Vision will require building an effective group-wide framework, which includes an environmental philosophy, code of conduct, and a management system. To lay the foundation for environmental target setting, monitoring, and information disclosure, we established and began implementing LIXIL Environmental Sustainability Principles and Performance Data Reporting Guidelines in 2016. By developing these frameworks and foundations, we are uniting the entire group of companies in reducing environmental risks and realizing the Environmental Vision.
In order to promote group-wide environmental activities, we established the Environmental Committee chaired by our chief technology officer (CTO). The head office environmental management department serves as the committee’s secretariat, overseeing all our business organizations, head office departments, and consolidated subsidiaries.
The Environmental Committee enlists the cooperation of LIXIL’s Board of Executive Officers and Board of Directors, the Risk Management Committee, and the Corporate Responsibility (CR) Committee for its activities. These activities focus primarily on establishing a group-wide environmental management system, including promoting environmental strategies, organizing effective management structures and reporting lines, and sharing and expanding organizational and regional measures.
Our CTO and environment managers from each business hold regular, biannual Environmental Committee meetings where they establish and revise environmental strategies, deliberate and decide on important measures, and monitor and review implementation plans. The FYE2021 meetings were held online due to COVID-19 restrictions. In the first half of the business year, the meeting reviewed our performance against key goal indicators in our focus areas, and discussed what needs be done going forward to achieve our vision.
At the end of each business year, committee members meet for a management review session where they look back on the past year’s activities, formulate plans for the coming business year, and revise the group’s overall vision and medium-term targets. We then execute these measures within each organization to help strengthen governance and improve performance.
Environmental Committee (2019 face-to-face meeting)
Internal TCFD study session during an Environmental Committee meeting (held in 2019)
Striving to help people live in harmony with the earth, LIXIL is committed to continuing our environmentally sound efforts in every aspect of our business activities.
• 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
LIXIL is working hard to achieve ISO 14001 certification at targeted production sites in order to strengthen environmental governance at all relevant locations including group companies. In FYE2021, 94.8% of the 77 targeted sites (see ISO-certified site list below) acquired the certification, including four new scheduled certifications.
We also have an internal environmental auditing system that covers all our production bases as well as nonproduction bases and group companies in Japan. We conduct internal audits at production bases based on ISO 14001 to check that environmental management systems are effective and law-abiding. At non-production bases and group operating companies, we conduct internal audits according to our own ISO-based environmental management systems and are gradually expanding the number of companies covered.
We follow up on any matters highlighted by the internal audits and confirm that improvements are being implemented to ensure the effective operation of our management systems. Our head office environmental management department also started auditing the environment managers at individual businesses in FYE2018.
For all LIXIL products destined for the Japan market, we conduct an environmental assessment at each stage of the product development process to ensure compliance with environmental laws, and to help reduce the environmental impact of products in all three lifecycle stages: produce, use, and dispose.
In light of LIXIL’s aspirations set forth in our Environmental Vision for 2050, we analyzed the projected impacts of climate change on our business in the year 2030. In FYE2020, we conducted scenario analysis of our window sash/door and ZEH businesses using the IEA’s World Energy Outlook (WEO) and other analysis tools.
Going forward, we intend to expand the scope of our scenario analysis to help us evaluate the medium- to long-term risks and opportunities relating to the achievement of the LIXIL Environmental Vision and clearly grasp any relevant financial impact. We will continue to review our environment-related goals and revise our business planning based on the analysis results.
We organized risks and opportunities by identifying the business impacts of climate change and climate measures and assessing the size of those impacts qualitatively.
Given the significant financial impacts of a carbon tax and associated rise in fuel and material prices from a move toward decarbonization, we find it crucial to minimize such impacts by investing in environmental technologies and driving manufacturing innovation. Because natural disaster impacts are expected to intensify in a scenario of worsening climate change, we reaffirmed the need to conduct risk management at each business site and build a resilient supply chain.
Our results also suggested a potential rise in demand for ZEH-related products. An increase in energy retrofits of existing housing, in addition to new construction, is needed to realize a 2ºC scenario. Thus, it is important that we seize this business opportunity by increasing promotional communications to customers and responding to public policy changes. Growing disaster risks may increase demand for products that reduce these risks, making the contribution of our business to safer homes and lifestyles even more important.
We will use these scenario analysis results to draft response measures and formulate action plans. We also plan to apply this scenario analysis process to other businesses in the group.