The global spread of COVID-19 in 2020 has triggered a rise in worldwide interest in environmental and social issues such as sanitation, climate change, economic disparity, and human rights. The continuation of such momentum is providing a tailwind toward efforts to meet the objectives of the Paris Agreement, where governments have signed up to limit global warming. It is also drawing attention to the United Nations Sustainable Development Goals (SDGs), targeted to be achieved by 2030. In Japan, the revised Corporate Governance Code came into effect this June. Against this backdrop, proactively engaging in all elements of ESG (Environment, Social, and Governance) will become increasingly critical for corporations in achieving sustainable growth and enhancing medium- to long-term corporate value. In the rapidly changing global business environment, we sense there are great expectations for LIXIL to contribute to society.

Operating Under the New Normal

The spread of COVID-19 has had a profound impact on the way people live and work around the world. However, I believe unprecedented environmental changes present new opportunities. As people spend more time at home, they are re-evaluating the importance of a comfortable living environment. There is also increased interest in health and hygiene. At LIXIL, we have responded rapidly to needs under the New Normal and are focusing on delivering on our corporate mission to support healthy and comfortable living around the world.

The COVID-19 pandemic has placed a spotlight on the importance of handwashing as a measure to reduce the spread of infection. However, approximately 2.3 billion people in the world do not have access to daily handwashing at home. While the availability of water supply and other basic facilities for sanitation is a given in developed countries, to achieve SDG 6 of ensuring clean water and sanitation for all, the speed of improvement in global water and sanitation needs to quadruple its current pace. To support the achievement of this goal, LIXIL has been offering the affordable SATO Toilet Solutions to developing economies as a social business. As the world faces the threat of COVID-19, we have developed a new handwashing station, SATO Tap, to improve hand hygiene for people without access to necessary facilities.

Upon Celebrating our 10th Anniversary

This year marks our 10th anniversary as LIXIL, which was formed through the merger of five Japanese building materials and housing companies. Over the past ten years, the world around us and our lifestyles have evolved significantly. While the pace of change continues to accelerate, the one constant is that everyone, regardless of the country or region of residence, dreams of a better home, and LIXIL is making that a reality through its water and housing products.

LIXIL’s purpose is to make better homes a reality for everyone, everywhere. At LIXIL, we engage in a circular Value Creation Process (VCP), with our corporate purpose being the starting point. Employees are the driving force behind our value creation. By enabling them to implement business strategies with a sense of purpose in a swift and agile manner, we can create value for our stakeholders and deliver on our purpose. Contributing to society through our business activities is also essential for our sustainable growth. Corporate Responsibility (CR) is at the heart of our VCP. It motivates our employees, and we incorporate CR in all our core business strategies to support long-term business growth.

Contributing to the SDGs

To leverage our expertise and address the most urgent issues relevant to the regions in which we operate, LIXIL has established three strategic pillars: Global Sanitation & Hygiene, Water Conservation & Environmental Sustainability, and Diversity & Inclusion. We contribute to the achievement of the SDGs by focusing on solving issues within these pillars through our business activities. LIXIL operates in over 150 countries around the world, and our products touch the lives of more than one billion people every day. In delivering products and services, we focus our efforts on improving lives and the environment for future generations by leveraging all our resources, including technology, expertise, talent, information, and financial resources.

We have been strengthening our efforts to help reach the SDGs and hope to further accelerate our contribution by encouraging as many people as possible, including end-users and children, to become interested in social and environmental issues. In December 2020, we launched the LIXIL x SDGs NEXT STAGE project and welcomed former Japan national team football player Atsuto Uchida as LIXIL’s SDGs ambassador. Driving societal change is never easy, and it is essential to collaborate with various stakeholders. With the support of Uchida, we hope to nurture a positive impact by informing more people about what is required and what we should do to realize a sustainable society.

At LIXIL, we remain committed to contributing to society through our business activities. Partnering with various stakeholders, we will continue to help enable healthy and comfortable living around the world.