Stakeholder Engagement

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The LIXIL Group proactively engages with stakeholders to help improve the quality of people's daily lives and resolve social issues.

Action plan Hold regular top-level meetings with external experts and disclose the content of these meetings
KPI Number of top-level meetings held across the Group (#); Meeting quality based on meeting content

Target / ProgressOPEN or CLOSE

  • Target for FY2016

  • ・Plan and execute top-level meeting with external experts

    ・Establish a system to ensure timely communication of the content of the top-level meeting with the Board

  • Progress as of 2016

  • ・Invited human rights experts for top-level meetings

    ・Held workshops on human rights, and discussions at the executive officer level

  • Target for FY2017

  • ・Establish a system to facilitate at least one top-level meeting each year

    ・Communicate the content of the top-level meeting with the Board

    ・Disclose the content of the top-level meeting

Action plan Hold regular stakeholder engagement meetings and disclose the content of these meetings
KPI Number of stakeholder meetings held across the Group (#); Meeting quality based on meeting content

Target / ProgressOPEN or CLOSE

  • Target for FY2016

  • ・Extend the reach of currently implemented mechanisms and encourage more sophisticated and effective engagement initiatives

    ・Encourage the sharing and adaptation of successful engagement initiatives across the Group

  • Progress as of 2016

  • ・Engaged at least once with each stakeholder

    ・Collected and shared information on stakeholder engagement across the Group

  • Target for FY2017

  • ・Establish a system for disclosing our engagement activities and resulting outcomes, for internal and external audiences

    ・Hold at least one annual dialogue with each group of stakeholders (shareholders, employees, business partners, local residents, end users, suppliers, etc.)

Our Approach

Our success depends on the support of a broad range of stakeholders. We are committed to proactively engaging with our stakeholders (including customers, business partners, community members where our operational facilities are located, shareholders, our employees and their families) to collect opinions and incorporate their voices in our business operations and social contribution activities.

Stakeholders Type of Engagement
Customers We incorporate customer opinions as well as providing timely and appropriate disclosure on our products and services. We offer customer support via telephone, email, and at 128 showrooms globally. More
Suppliers We build and maintain strong relationships with our suppliers by facilitating two-way communication. In response to recent Responsible Procurement Surveys, we share our procurement policies, recognize current circumstances and follow through on promised improvements. We also hold regular meetings with suppliers to share information on regulatory trends and new corporate purchasing strategies. More
Local communities The LIXIL Group operates 99 factories worldwide. As a responsible corporate citizen, on top of respecting local culture and customs and create responsible products and jobs, we also contribute to the development of the surrounding community in which we operate. We hold community dialogues at factories and sales offices in Japan to encourage communication with local residents. More
Shareholders and investors We hold approximately 625 discussions every year with investors around the world to help promote sustainable growth and enhance corporate value. We disclose timely and transparent information in English and Japanese via our Annual Report (Integrated Report from FY2015), our Investor Relations web pages and the Tokyo Stock Exchange website. More
Employees The LIXIL Group boasts approximately 70,000 employees. We strive to create an inspiring working environment that encourages diversity and incorporates employee opinion expressed via systematic global employee satisfaction surveys or discussions between the union and the company. More
NPOs, NGOs and universities We partner with NPOs/NGOs and universities in the research and development related to global sanitation, and support environmental education for next-generation leaders.
Government, industrial association Engaging in vigorous but transparent dialogue with government authorities is a necessary process to help shape a sustainable society. We are involved in several industrial associations whose mission includes engaging with government on behalf of their respective industry, such as plumbing, business, metals and electrical, and manufacturing. (Total political contributions (FY2013-2016): less than JPY 1 million per year. Total industrial association fees*: JPY 11.9 million (FY2013); JPY 26.4 million (FY2014); JPY 29.5 million (FY2015); JPY 55 million (FY2016))

* Total fees from FY2014 and FY2016 include ASD Americas Holding Corp.(American Standard) and GROHE Group S.à r.l.(Grohe), respectively.

Examples of LIXIL Stakeholder Engagement

LIXIL Group focuses on making a positive social impact in priority areas such as global sanitation and hygiene, water conservation and environmental sustainability, and diversity and inclusion, as well as areas where our expertise can make the biggest difference. The "Endowments and Consulting Review Committee", which our CEO serves as a member of, is held on regular basis to screen, assess and prioritize significant donations and sponsorships to ensure our profits contribute to society appropriately and effectively.

Monetary and other contribution (in JPY)

  FY2015 FY2016
Charitable donations 130.6 Million 122.8 Million
Community investments 856.8 Million 880.8 Million
Commercial initiatives 600.0 Million 600.6 Million

Scope: LIXIL Group (non-consolidated) and LIXIL Corporation (non-consolidates), and some of the subsidiaries of LIXIL Corporation (Grohe and American Standard)
* Monetary and other contributions have been collected and categorized in accordance to the London Benchmarking Group Guidance Manual (June 2015).

Youth Empowerment

Plumbing skills for a more secure future

GROHE Dual Tech students at the training facility in MumbaiUnderprivileged young people in many emerging countries often lack the skills to secure stable employment, while at the same time the local society suffers a chronic shortage of skilled workers. GROHE addresses this issue through GROHE Dual Tech, conducted in conjunction with Don Bosco Mondo e.V., a non-profit organization committed to supporting disadvantaged youth.

The German-modelled, dual-track training program, has been underway in Mumbai-Kurla in India since 2009, and has been expanded to New Delhi, as well as Manila-Tondo in the Philippines. To date, GROHE has helped over 850 young people gain practical and classroom-based education on plumbing, as well as computer and English-language skills. Students are sent on placements with local firms, resulting in a nearly 100% placement rate upon graduation. GROHE benefits from a great pool of these skilled plumbers to install its premium products at the highest professional standard. Spurred on by its overwhelming success, GROHE is looking to extend the training program to Kenya.

Natural Disaster Aid and Recovery Support

Disaster recovery Initiatives in Japan

Donated windows and toilets to the "Playground-for-All" in Minamisoma as part of a recovery support projectLIXIL Corporation has supported various recovery efforts following the March 2011 earthquake and tsunami in Northeast Japan and the April 2016 earthquake in Kumamoto. These activities include donations of basic daily necessities such as toilets and hand-washing facilities, monetary donations, sponsoring recovery projects, and employee-driven charity events.

Employees are encouraged to offer their time and expertise to help local communities which often proves to be a valuable experience that improves their engagement level. More (Japanese only)

Providing safe sanitation for communities in need

Teaching plumbing skills and how to improve hygiene to students in Haiti.SATO products are innovative, life-saving, and low-cost solutions that provides safe and hygienic sanitation. In addition to growing the SATO business to reach more people in Asia and Africa, LIXIL have been working with NGOs to support communities with urgent needs. (More information on SATO products)

We are committed to helping ensure a safe and sanitary environment in disaster relief efforts. Poor sanitary conditions on the poverty-stricken Caribbean island of Haiti were exacerbated by the 2010 earthquake, with open latrines increasing the risk of the spread of disease by airborne insects. American Standard engineers worked with Plumbers without Borders (PWB) to teach students at Haiti Tec plumbing skills and how to improve hygiene. With the help of NGOs like PWB and Food for the Poor, American Standard donated 7,900 SATO products to towns and villages in Haiti, as well as other parts of the Caribbean and Central America. SATO products were also delivered to survivors of the 2015 devastating earthquakes in Nepal with the help of WaterAid.

Through private and public partners, we are also helping rural communities with difficulties accessing adequate sanitation. In FY2016, few thousand SATO products were delivered to Bangladesh with the help of BRAC, an international NGO. We will continue to work alongside International NGOs such as WaterAid and Habitat for Humanity, to help ensure a safe and sanitary environment for communities in need.

Local Community Engagement

Holding community dialogues in factories, sales and retail bases

Community dialogue with the Kitami Sales Office of Dohoku Sales Branch, Hokkaido Branch OfficeLIXIL Corporation regularly holds community dialogues with local stakeholders (such as local government officials, business owners, residents etc) on how we can contribute back to the community. These are held at factories, sales and retail bases around Japan.

In fiscal 2016, LIXIL Corporation held community dialogues at 11 new locations in Japan, attracting over 160 participants. Over the past five years, we have held over 100 community dialogues in total. We cultivate meaningful relations with local residents and authorities by implementing initiatives based on the conversations during community dialogues, and ensure consistent communication and follow up after the initial dialogue.

For example, our Handa Factory in Aichi Prefecture started to help local day-care centers with emergency evacuation procedures after a Principal voiced concern that the predominately female staff might not be physically capable of evacuating all the children safely on their own. The same factory is also participating in a range of community-inspired activities, including road accident prevention initiatives, accepting internships, factory visits, and providing classes on product safety.

Partnerships

UNICEF Working together to promote safe sanitary facilities in Africa.
Japan International Cooperation Agency (JICA) Promoting field trials of the no-water Green Toilet System and water-saving Micro Flush Toilet System in Kenya.
WaterAid Cooperating to improve the lives of people living in areas without hygienic toilets, in addition to collaborating on a white paper that analyzes the socioeconomic losses associated with underdeveloped sanitary environments. More (PDF:10.2MB)
Toilet Board Coalition Helping develop sustainable, large-scale potential sanitation solutions as a founding member of the multi-industry group. More
NIJIIRO DIVERSITY Conducting awareness surveys with the non-profit organization to identify the issues LGBT and other sexual minorities encounter when using public toilets, with the aim of providing a comfortable toilet space for all. More (Japanese only)

Environmental, Cultural and Social Programs

Forest preservation Encouraging our employees and their families to participate in voluntary activities to protect forest and mountain environments in cooperation with government, NPOs and forestry cooperatives. More (Japanese only)
Water and environment related education activities Offering educational classes at primary schools on the global water and sanitation challenge. More (Japanese only)
Cultural activities Promoting cultural activities in areas related to our history, such as ceramic and textile museums, gallery management and publishing. More

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