CR Governance Structure

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LIXIL holds quarterly Corporate Responsibility (CR) Committee meetings to ensure strategic action on sustainability issues. In order to ensure a prompt and appropriate response across the whole of LIXIL, CR Committee members comprise executive officers and leaders from corporate functions and our business units.

The executive officer in charge of CR reports the results of CR Committee discussions and deliberations to the Board of Executive Officers, enabling necessary decisions to be made. The executive officers and functional leaders, who are in charge of promoting CR initiatives, also then communicate updates and decisions made in the CR Committee to their respective functions to facilitate action. Information is also shared at the CR Committee from other related committees that are deeply involved in CR activities.

In FYE2022, the structure and function of the CR Committee was rearranged to reflect revisions made by the Tokyo Stock Exchange to Japan’s Corporate Governance Code and ensure ultimate oversight of sustainability issues by our Board of Directors. The position of the CR Committee as a venue for encouraging cross-divisional discussion of policies and measures has been strengthened, with more senior leaders appointed to the committee.

Recent discussion in FYE2022 at the CR Committee included defining the KPI monitoring and tracking processes for material issues that were updated in FYE2021, risk assessment processes, creating a workplace and society that facilitate active participation of people with disabilities, and general progress and policies relating to human rights due diligence and TCFD, etc.

Regarding the compensation system for executive officers, we have introduced stock-linked compensation that helps encourage their contribution to improving the company’s medium- to long-term corporate value, including environmental, social and governance (ESG) factors. For officers who are expected to improve the company’s value over the medium- to long-term, including from an ESG perspective, the ratio of stock-linked compensation to total compensation is set higher based on the deliberation of the Compensation Committee.

CR Governance Structure

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