LIXIL makes pioneering water and housing products that solve everyday, real-life challenges, making better homes a reality for everyone, everywhere.
Here is an overview of our key initiatives and their results for FYE2021.
We review material issues to accommodate any changes in LIXIL’s immediate environment or society at large.
LIXIL has identified material issues that we, our stakeholders, and society in general consider to be of the highest importance for improving our company’s sustainable growth and corporate value for driving progress on sustainable development. We are working to resolve these issues through our business activities. We also review these material issues to accommodate any changes in LIXIL’s immediate environment or society at large.
In FYE2021, we reviewed the material issues selected in FYE2016. Based on the process outlined on page 20, we determined 20 new material issues by selecting and evaluating issues from both a risk and opportunity perspective, taking into consideration LIXIL’s Purpose, Value Creation Process (VPC), Medium-Term Plan, Corporate Responsibility (CR) Strategy and other business strategies, stakeholder needs and expectations as well as current social circumstances and issues.
The priority of each material issue was determined following examination and discussion by the CR Committee, the officers in charge of individual functions, and the Board of Executive Officers, considering the degree of risk as weighted by ESG-rating organizations and their impact on LIXIL, our stakeholders, and society at large (see right). Material issues that are labeled as “Priority” are deeply related to the three pillars of our CR Strategy. We will continue to accelerate our CR activities with a focus on these material issues. See the below link for more information on how material issues are selected.
Areas in which LIXIL is able to proactively exploit its unique strengths to greatly help solve issues and have a significant positive impact on stakeholders and society. Areas where initiatives should be strengthened in view of stakeholder needs.
Areas that should be addressed from the perspective of responding to stakeholder needs and appropriately managing risks to ensure business continuity.
Areas requested by stakeholders and that should be appropriately addressed as the basis for our business activities.
LIXIL’s Purpose is to “make better homes a reality for everyone, everywhere.” We do this by striving to understand our customers and other stakeholders around the world and provide products and services that meet their diverse needs. Promoting diversity and inclusion (D&I) — an inclusive cultural and organizational environment that embraces diversity — is the cornerstone of a customer-centric organization. It also drives the type of innovation and sustainable corporate growth that is only possible through the open and free exchange of opinions from varied perspectives.
In FYE2018, LIXIL published its Diversity and Inclusion (D&I) Declaration. This document outlines priority areas for D&I, including gender, age, race, nationality, ability and disability, and sexual orientation, and is now guiding action on relevant issues in each country and region. In FYE2020, we established our Global D&I Department to implement common global D&I initiatives.
In FYE2021, we issued our D&I Statement and set up a D&I Committee, both of which were prompted by the global spread of anti-discrimination protests starting in the US. Staffed by our CEO and executive officers, the committee is tasked with strengthening our organizational structure by placing D&I at the very core of LIXIL’s corporate culture, business processes, and day-to-day operations management.
In FYE2021, we conducted a D&I awareness survey of all employees to further promote D&I across the organization. The survey helped us to understand the current situation and issues and update our D&I Strategy.
The D&I Strategy sets goals and measures focused particularly on correcting gender inequality. To do this, we considered current gender imbalances across society and in our organization, the important role that women play in consumers’ purchasing decisions, and the fact that female talent bring views and ideas to the table that are critical to the type of innovation we need. We seek to strengthen D&I in a wider area of our organization by promoting these initiatives.
Going forward, we will set and implement more specific plans at each of our bases and pursue D&I measures that promote diversity in all its forms.
As a company that prides ourselves on supporting sanitary environments and healthy living, LIXIL was quick to establish a global team to help combat the COVID-19 pandemic and put various countermeasures in place to protect our customers, employees, and local communities.
We are also pursuing initiatives that encourage the ongoing transformation in working styles, digitalization, product development, and globalization in order to help shape our new normal post-COVID world. To that aim, in FYE2021 we developed a global framework that sets out some guiding principles for our organization in the new normal.
Handwashing is an effective way of preventing the spread of COVID-19. However, this can be problematic primarily for emerging markets that do not have sufficient access to water or soap, sufficient handwashing facilities, or an ingrained handwashing culture. Approximately 2.3 billion people, or one in three people in the world, do not have basic handwashing facilities in the home.
Our SATO Tap handwashing station, developed in 2020, can generate a stable but frugal flow with minimal water using water contained in a PET bottle and gravity. To facilitate use in emerging markets and other underprivileged regions, we designed a handwashing station that can use PET bottles of various shapes and sizes and is simple to design and manufacture with only two plastic parts to keep both costs and prices low.
We are now preparing to start production in Africa to complement our existing production facility in India. We are also using SATO Tap as a tool to raise awareness of hygienic practices in various regions.
To help fulfill one of our three strategic pillars, Global Sanitation & Hygiene, LIXIL will invest approximately JP¥100 million in encouraging the broader use of handwashing solutions, and we are working with UNICEF and other organizations to help prevent the spread of COVID-19 through initiatives that advocate handwashing and other sanitary practices.
SATO Tap handwashing station using a plastic bottle
• We adopted various digital tools to deliver services to customers safely. Examples include providing showroom services and seminars online, conducting sales activities virtually, and introducing an automated enquiry response system that utilizes AI-powered chatbots.
• To prevent the spread of COVID-19 and prepare for the new normal, we are strengthening our range of touchless faucets and IoT-driven products. We are also focusing on the development of products with superior ventilation capabilities and solutions designed to satisfy people choosing to work from home.
• As part of our emergency preparedness, we distributed our global production system to multiple sites and promoted supply chain integration and coordination.
• We issue informative advice on how to ventilate homes, etc.
Navish Hands-Free touchless faucet
• We were able to shift smoothly to remote work thanks to the solid digital technology base that we have been gradually introducing for some time. That digital base also enables us to hold town hall meetings with managers and employees all over the world and conduct online training.
• To help forge a new normal, we are using digital tools to progress our flextime and remote-working systems and to promote even better internal communication.
• At manufacturing sites, we introduced a flexible shift system, created a scheme that enables people to commute without using public transport, and further strengthened hygiene management.
• We are using internal social media and other channels to distribute information on topics such as preventing infection spread, mental health care, and remote work communication.
• We published guidelines for COVID-19 vaccinations.
• We paid a special COVID-19 allowance to all employees worldwide (one-time payments equivalent to JP¥50,000 in FYE2020 and US$200 in FYE2021).
• Within Japan, we provided digital teaching materials on sanitation and hygiene issues to help support employees who have children.
Digital teaching materials on sanitation and hygiene issues for employees with children
• We established a working group of employee volunteers to brainstorm and create products and services that help prevent the spread of COVID-19.
• We donated sanitary products and equipment worldwide:
- We manufactured medical masks and face shields using 3D printing technology as part of our #LIXILShields employee volunteer initiative and donated more than 70,000 units to healthcare workers and teachers (North America).
- We produced foot-operated sanitizer pumps and donated them to local schools (Japan).
- We donated sanitary products such as sanitizers, soap, masks, and handwashing equipment to local communities (China, India, Ethiopia, etc.)
• We raised awareness on good handwashing habits (China, etc.).
• We are helping to prevent the spread of COVID-19 by installing more of our SATO Toilet Solutions for emerging markets and accompanying handwashing facilities in order to improve sanitation and encourage more widespread handwashing.
Employee volunteers worldwide create and donate sanitary products