LIXIL makes pioneering water and housing products that solve everyday, real-life challenges, making better homes a reality for everyone, everywhere.
We are operating a Group-wide management system to reduce environmental risks and realize Environmental Vision 2050.
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 new 2050 vision, we aim to reduce carbon emissions from our business processes, products, and services to net-zero, and to be a leader in the field of preserving water and limited resources for future generations.
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 Performance Data Reporting Guidelines in 2016 and have been implementing them based on LIXIL Environmental Sustainability Principles. By developing this framework and foundation, we are uniting the entire Group in reducing environmental risks and realizing the Environmental Vision.
In order to promote Group-wide environmental activities, we established the Group Environmental Committee chaired by the Group’s 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 Group Environment Committee enlists the cooperation of LIXIL executive officers and the 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.
The Group Environmental Committee holds a regular meeting once a year, which is attended by the Group CTO supervising environmental activities, and employees responsible for environmental management from each business organization. At the meeting, participants confirm the Group’s environmental 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 Group’s overall vision and medium-term targets.
Group Environmental Committee
Internal TCFD study session during an environmental Committee meeting
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 operates an internal audit system covering the entire Group. Our factories conduct internal audits in strict accordance with ISO 14001 standards and check the effectiveness and compliance of environmental management systems. With regard to non-manufacturing departments and Group operating companies, we perform internal audits based on the standards set in our own environmental management system and are gradually expanding the scope to include Group subsidiaries. We work to ensure the effective operation of our management system by following up on all audit points and confirming the implementation of improvements. From FYE 2018, the head office environmental management department started auditing employees responsible for environmental management in all business organizations.
We are promoting ISO 14001 certification of all production sites to strengthen environmental governance across the Group. Already, 71 sites have obtained certification, and 13 sites in North America are on track, which will bring the ratio of certified sites to 91.3%
LIXIL Corporation conducts 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 Environmental Vision 2050, we analyzed the projected impacts of climate change on our business in the year 2030. In FYE 2020, we applied this analysis to our sash and door businesses and our ZEH business.
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 LIXIL.