Environmental Management

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In order to achieve our Environmental Vision 2030, the LIXIL Group is developing and operating a Group-wide Environment, Occupational Health and Safety (EHS) management system.

Our Approach

In 2016, the LIXIL Group announced its Environmental Vision 2030 medium to long-term targets, and established the LIXIL Group Environmental Sustainability Principles to define our environmental philosophy and code of conduct. By 2030, we aim to achieve an overall net zero balance between the environmental footprint of our business and the positive environmental contribution we make through technological innovations and the development of low-carbon, water-saving products and services. We are now also developing a long-term vision that envisages how by 2050 LIXIL Group will contribute to solving the increasingly serious environmental issues that we have witnessed in recent years. We aim to announce this strategy in FYE2020.

To achieve our Environmental Vision, it is vital that we operate an effective environment management system and work to reduce the environmental impact of our entire supply chain, from raw materials procurement through product disposal. In 2016, we started operating under our newly established EHS Performance Reporting Guidelines to help strengthen Group-wide target management and monitoring systems. We are looking to actively reduce our environmental impact across the Group by extending activities implemented primarily in Japan to all global operations.

Our System

In order to promote Group-wide EHS activities, the Group EHS Committee was established under senior managing executive officers. The Quality and EHS departments for the LIXIL Group and LIXIL Corporation serve as Committee secretariats, overseeing all our business organizations, head office departments, and consolidated subsidiaries. The Group EHS Committee enlists the cooperation of the LIXIL Group Executive Officers Committee, LIXIL Corporation Board of Directors, the Internal Audit Committee, the Risk Management Committee, and the CR Committee for its activities. These activities focus primarily on establishing a Group-wide EHS management system, including promoting environmental strategies, organizing effective management structures and reporting lines, and sharing and expanding organizational and regional measures.

The Group EHS Committee holds a regular meeting once a year, which is attended by Group senior managing executive officers supervising EHS activities, and employees responsible for EHS from individual business organizations. At the meeting, participants confirm the Group’s EHS policy, strategy, and emergency response process, which they then share and implement in each of their individual jurisdictions as a means of strengthening corporate governance and improving performance.

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 company’s overall vision and medium-term targets.

Group EHS Committee

Internal TCFD study session during the second part of the EHS Committee meeting

Environmental Sustainability Principles

Philosophy

Striving to help people live in harmony with the earth, LIXIL Group is committed to continuing its environmentally sound efforts in every aspect of our businesses activities.

Code of Conducts

• 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

Environmentally Conscious Design

LIXIL Corporation conducts an environmental assessment at each stage of the product development process to help reduce the environmental impact of products in all three lifecycle stages: produce, use, dispose.

Product-Related Environmental Assessment Steps
Evaluation Criteria for Product-Related Environmental Assessment

Environmental Disclosures

We are establishing systems to assist environmental management decision-making by appropriately evaluating risks and opportunities and clearly understanding the financial impact of the effects of climate change on our future business operations. Our head office environment department provides information to senior managers derived from various analyses regarding the calculated financial impact of CO2 emissions on the Group, which are based on national carbon taxes, carbon prices in the emissions trading market, forecasts of energy prices, the potential cost-saving benefits to be derived from capital investment and environmental measures, etc. In order to further promote environmental investment, calculating the CO2 reduction of equipment investments is required for processing any request for approval (RFA) of investment.

In March 2019, the LIXIL Group announced its support for the Task Force on Climate-related Financial Disclosures(TCFD), and reorganized its existing information under recommended TCFD disclosure items. Going forward, we will continue to help solve social issues through our business activities, and work to further enhance our information disclosure that will enable us to build a stronger relationship of trust with our stakeholders.

We also participate in the survey conducted by an international non-profit CDP. We were recognized as an A List company in the CDP Water Security 2018 for our outstanding water resource management initiatives.

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