Message from CR Committee Chairperson

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Jin Song Montesano
Executive Officer and Senior Managing
Director, Public Affairs, Investor Relations,
External Affairs, Corporate Responsibility,
and Human Resources, Chief Public Affairs
Officer, and Chief People Office

LIXIL’s higher purpose as a company is to make better homes a reality for everyone, everywhere, and Corporate Responsibility (CR) is at the core of this endeavor. We are delighted to report that we have continued to reach new heights through our CR activities in FYE2019, making progress in all three strategic pillars as well as enhancing global recognition of our initiatives.

With regard to improving Global Sanitation & Hygiene, we were excited to see that our SATO social business turned profitable in Bangladesh, providing us with the confidence that social enterprises can be viable and self-sustaining. We also entered into a new partnership with UNICEF called “Make a Splash! Toilets for All,” aiming to transform the lives of children around the world by providing them with access to basic sanitation services. On top of this, we launched a new partnership with the Bill & Melinda Gates Foundation to pilot a new technology in two markets that could become the world’s first “reinvented toilet” for household use.

As for Water Conservation & Environmental Sustainability, we made progress in our contribution to the environment by switching to 100% renewable energy in our showroom in Kyoto and at INAX MUSEUMS, the first step in our journey to achieve zero CO2 emissions from the use of electricity. In our TOSTEM plant in Thailand, we also succeeded in eliminating landfill waste by collaborating with local industrial waste disposal operators.

On the topic of Diversity & Inclusion, FYE2019 marked the launch of a fully remodeled universal kitchen system in Japan called Well Life, designed for people in wheelchairs and those who prefer to sit when cooking. LIXIL’s Universal Design concept is a core part of our diversity agenda, and we continue to focus on making things that matter to the people who use our products, while promoting it through our advocacy initiatives.

I am pleased to report that the consistent progress we have made over the last three years to deliver on our new CR strategy is gaining global recognition. LIXIL won “Innovation of the Year” at the Ethical Corporation’s Responsible Business Awards for our innovative SATO line of products and sanitation initiatives. Similarly, our work to provide innovative, safe, and affordable access to sanitation to communities around the world was recognized at the second Japan SDGs Awards, where LIXIL was awarded the Deputy-Chief’s Award from the Minister of Foreign Affairs. Furthermore, we earned a place in CDP’s prestigious Water Security A List, reflecting our leadership in sustainable water management. We are also proud to be included for the first time in the Dow Jones Sustainability Indices (DJSI) World Index, and for three consecutive years in the DJSI Asia-Pacific Index and FTSE4Good Index. We are also listed on the MSCI Japan Empowering Women (WIN) Select Index.

Alongside this recognition, how LIXIL makes a difference to people around the world continues to be a source of growing pride among our employees. We are pleased to see this pride propel our colleagues’ desire to participate however they can, demonstrated by close to one thousand employees signing up for the “Team Splash!” initiative, which invites employees to make donations to the “Make a Splash! Toilets for All” partnership. Also accelerating in momentum is LIXIL Community Day, inaugurated in FYE2018, which doubled participation in FYE2019 to 6,900 employees across 23 countries. This underscores the strong purpose-driven culture we are building at LIXIL.

Looking ahead, LIXIL has declared its support for the Task Force on Climate-related Financial Disclosures. We are also in the process of updating LIXIL’s environmental vision to contribute to a sustainable global environment in the long term. We look forward to sharing in the coming months how we plan to further our commitments to help protect our planet and contribute to society, including strengthening our disclosure of climate-related financial information as well as our broader efforts to deliver on our CR commitments.

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