LIXIL Group CSR Management 2013 · and the Group has continued to work hard to tackle global...

LIXIL Group CSR Management 2013Reporting Period: FY2012 (April 1, 2012 to March 31, 2013)

CSR Policy

CSR Policy ・・・・・・・・・・・・・・・・・・・ 02CSR Promotion Structure ・・・・・・・・・・・ 03CSR Targets by Category and Results in the Fiscal YearEnded March 31, 2013 ・・・・ 06

Stakeholder DialogueStakeholder Dialogue ・・・・・・・・・・・・・14Top Dialogue ・・・・・・・・・・・・・・・・・16Outline of Dialogues with Local Communities (FY2012) ・・・・・・・19

For Our CustomersIncreasing Customer Satisfaction ・・・・・・・25Showroom Initiatives ・・・・・・・・・・・・・30Product Safety Initiatives ・・・・・・・・・・・32

In Partnership with Our SuppliersProcurement Philosophy ・・・・・・・・・・・35CSR Procurement ・・・・・・・・・・・・・・ 38Communicating with Our Suppliers ・・・・・・39

In Partnership with Society vand Local Communities

Water Resources Conservation Activities ・・・40Forest Ecosystem Conservation Activities・・・42Participation in Local Communities ・・・・・・ 45

In Partnership with Our Employees

Basic Philosophy on Human Resources・・・・49Internal Communication・・・・・・・・・・・・52Promoting Diversity ・・・・・・・・・・・・・・55Occupational Health and Safety ・・・・・・・・58Creating a Better Workplace ・・・・・・・・・・61Fostering Human Resources ・・・・・・・・・65Labor Relations・・・・・・・・・・・・・・・・69

Compliance ・・・・・・・・・・・・・・・ 72

Risk Management ・・・・・・・・・・・74

Information Security ・・・・・・・・・・76

Intellectual Property Activities・・・・・77

Environmental ActivitiesEnvironmental Principles ・・・・・・・・・・ 79Environmental Vision ・・・・・・・・・・・・80Environmental Strategy ・・・・・・・・・・・81Environmental Management・・・・・・・・・86

LIXIL Corporation Eco-First CommitmentMedium-term Targets ・・・・・・・・・・・・ 90Material Balance ・・・・・・・・・・・・・・94Products and Services

　Development Systems ・・・・・・・・・・97　Proposals to Our Customers ・・・・・・・ 98Business Activities

　Reducing Global Warming ・・・・・・・・99　Recycling Resources ・・・・・・・・・・・ 102　Preventing Pollution・・・・・・・・・・・・106

Editorial Policy・・・・・・・・・・・・・・108

Corporate GovernanceSee the Corporate Governance section on the LIXIL

Corporation website

(http://www.lixil-group.co.jp/e/about/governance/system.htm)for information on the Corporate Governance Framework,

the Group Management Philosophy, Group Charter of

Corporate Behavior and Internal Control Systems.

Applicable organizations: Activities of affiliated companies, including LIXIL Group Corporation and LIXIL Corporation.When the scope of application is limited for a particular item, this is pointed out in the notes, etc.

INDEX

This content was made publically available on September 10, 2013.1

http://www.lixil-group.co.jp/e/about/governance/system.htm

Innovation

Work to increase efficiency in the use of energy and water resources1.

Work to build a senior-friendly, cooperation-based society, focusing on healthy, safe, and secure living

conditions

2.

Sustainability

Contribute to conservation of the global environment and development of local communities3.

Ensure an appropriate work environment and resource allocation in supply chain operations4.

Integrity

Maximize customer satisfaction in cooperation with business partners5.

Develop a corporate culture characterized by superb leadership and diversity6.

Promote speedy and transparent disclosure and share social contribution visions with our stakeholders7.

To address the challenge of global climate change and declining water resources, we will pursue innovation in developing

products and services that will help achieve a net zero energy balance in houses and buildings as well as facilitate efficient

use of water resources.

1.

To address concerns over healthy, safety and secure living conditions around the world, we will pursue innovation in

developing products and services that will improve sanitary conditions, mainly related to plumbing systems, as well as help

build a society that is senior-friendly and supportive of mutual assistance.

2.

To contribute to conservation of the global environment and biodiversity as well as the development of local society, we will

work to facilitate communication and cooperation with local communities, NGOs and other organizations.

3.

To ensure proper and fair operations of our supply chain, we will work to facilitate communication and cooperation with our

suppliers, with a focus on creating an appropriate work environment and proper resource allocation as well as human rights

protection.

4.

To ensure the safety and hygiene of our products and services and maximize satisfaction of end users, we will promote

communication with customers and cooperation with business partners.

5.

To help accommodate various social challenges, we will develop a corporate culture that can foster strong leadership,

respect diversity in terms of nationality, gender, race, age, values, and others, and leverage our strengths linked to

personnel diversity.

6.

To win and maintain the trust of our shareholders and investors and achieve sustainable growth in society, we will promote

speedy and transparent disclosure of information and share our visions and plans for social contributions with our

stakeholders to facilitate mutual understanding on this issue.

7.

2

LIXIL Group formulated its Group Environment Principles in June 2011. In December 2011 we published our Environmental Vision

and the Group has continued to work hard to tackle global environmental issues. Since April 2012, under the guidance of the

LIXIL Group CSR Promotion Committee we have promoted activities that contribute to the development of a sustainable society

in response to society’s demands and expectations.

In July 2012, we established the CSR Policy, including “Priority Themes” and “Planned Activities”. In July 2013, the Management

Meeting approved the Group’s signing of the United Nations Global Compact (UNGC) and announced that the Group would

exercise leadership through responsible corporate behavior.

Please see the following link for information on LIXIL’s membership of the United Nations Global Compact（http://www.lixil-

group.co.jp/e/sustainability/ungc/default.htm）

The LIXIL Group realizes its CSR through efforts to realize its corporate philosophy, which aims to have “The Group’s supe-rior

products and services contribute to improving people’s comfort and lifestyles.”

To become a global leader in the living and housing solu-tions industry, we believe being customer oriented and strate-gically

incorporating social issues into the purpose and importamt issues of our business is important. The creation of progressive,

innovative products and services while implementing business management that meets a range of demands from

society―including those related to the environment and human rights―will contribute to the Group’s sustainable growth.

With this in mind, our basic approach is to earn society’s trust by instilling the LIXIL VALUES in each employee and engaging in

dialogue with stakeholders consistently to ensure we maintain our integrity as a company. The LIXIL Group’s business comprises

relationships with a diverse range of stakeholders, including shareholders, other investors, business partners, customers, local

communities, and employees. Through dialogue and cooperation with these stakeholders, we will accurately identify the

expectations and tasks and continue to respond to society’s ever changing demands.

Please see the following link for more information on LIXIL VALUES（http://www.lixil-group.co.jp/e/about/governance

/default.htm）

3

http://www.lixil-group.co.jp/e/sustainability/ungc/default.htm

http://www.lixil-group.co.jp/e/about/governance/default.htm

In April 2012, we established the LIXIL Group CSR Promotion Committee, chaired by the president and with executive officers

serving as committee members. Under this committee, we have created the CSR Promotion Secretariat Meeting, tasked with

managing targets and planning and preparing measures. Furthermore, we have established four groups dedicated to specific

stakeholders. The meeting and groups advance initiatives through PDCA management cycles. In addition, to respond to diverse

social issues on a global scale, in February 2013 LIXIL Corporation created committees and groups in its Global Company that

coordinate the initiatives of the whole Group.

CSR Promotion Structure

4

CSR Initiatives in the Fiscal Year Ended March 2013

In the fiscal year ended March 2013, we established a system of CSR groups, set out specific categories and key performance

indicators, and launched initiatives.

Main Initiatives of the Environmental Group

Tackling environmental issues is a key responsibility for companies and an urgent issue for humanity. By building a Group-wide

management system, the entire Group has been tasked with taking on environmental challenges, such as reducing the Group’s

energy use and environmental burden in compliance with environmental laws and regulations.

Established and implemented environmental management regulations applicable to entire Group

Contributed further to reductions in energy use and reduced the Group’s total energy consumption

Achieved water use target (maintaining water use at level of previous fiscal year)

Achieved CO2 emissions target (reduction of 48% against 1990 level) (a reduction of 48.3% was achieved)

Held discussions with local communities at three model bases

Main Initiatives of the Procurement Group

We have used quality, cost, delivery times, and environmental initiatives as benchmarks for evaluating materials suppliers. In the

fiscal year ended March 2013, we began additional initiatives to identify and resolve social issues in the overall supply chain,

including labor and human rights issues. Initially, we are studying precedents and confirming the extent of CSR awareness at our

major suppliers, and working to instill the concept of “CSR procurement”.

Formulated and announced a Procurement Policy incorporating our approach to CSR

Conducted questionnaire survey of suppliers accounting for more than 80% of procurement in Japan on a purchase amount

basis; established a common “CSR procurement” approach

Main Initiatives of the Customer Relations Group

As a manufacturer of products that support consumers’ safety and peace of mind, we have taken the lead in product safety

initiatives. We have established a structure for promoting product safety and created systems and a culture focused on providing

safe products, as well as accurately communicating appropriate information to consumers to promote understanding of product

safety. We have also built a product safety culture as a company that allows us to respond in the event of accidents.

Promoted product safety initiatives to enable customers to use products safely and confidently over the long-term

Held discussions (with three experts) on the theme of product safety and confirmed the direction and appropriateness of

current initiatives with a view to improving future initiatives

Main Initiatives of the Human Resource Group

Our employees are key stakeholders who support the Group’s activities. We have established the promotion of diversity as a key

goal with the aim of creating a vibrant workplace for the employees and cultivating a corporate culture of energy and innovation.

Based on analysis of the current composition of our workforce and utilization of human resources, we will concentrate efforts on

developing leaders, with a particular emphasis on encouraging female employees in Japan.

Encouraged the work performance of diverse personnel

Promoted the development of a Work-Life-Flexibility (WLF) platform to enable employees to perform to their full potential

Please see here for CSR Targets by Category and Results in the Fiscal Year Ended March 31, 2013（see P6）

5

See here for the targets and scope of the below data（see P94）

Category: Improve environment management system

Task FY2012 Targets FY2013 Targets FY2015 Targets

KPI FY2012 Results

Apply environmental

management regulations

to entire Group*1

100％ -

(Implementation completed in

FY2012)

-

(Implementation completed in

FY2012)

Percentage of divisions to

which regulations have been

applied

100％

Category: Enhance environmental performance (LIXIL Group’s medium-term environmental goals)


KPI FY2012 Results

Contribute to reduction in

Japanese private sector

energy use through improved

performance and

popularization of products*2

Establish energy reduction

contribution

calculation method

Standardize evaluation

methods for energy-saving

products

Increase by 2.0 times against

FY2010 level (7,460,000 GJ)

Energy reduction

contribution (reduction of

energy use for products

against 1990 level × sales

volume)

See “Medium-term

Targets”（see P90）

・Calculation method

established

・1.1 times the FY2010 level

(4,090,000 GJ)

6


KPI FY2012 Results

Reduce total energy

consumption in

procurement, manufacturing,

sales,

and waste disposal*1

・Establish energy

consumption calculation

method

・Set out energy reduction

priority tasks

・Achieve challenge to

reduce procured energy

・Reduce energy

consumption in

manufacturing and sales by

1% against FY2012 level

Reduce total energy

consumption by 10% against

FY2010

Energy consumption ・Calculation methods

established

・Priority tasks set out

・Reduced by 9.0% against

FY2010 level (56,700,000

GJ)


KPI FY2012 Results

Reduce CO2 emissions at

operating

bases in Japan*2

Reduce by 48% against

FY1990 level

(emissions of 419,000 tons)


FY1990 level


FY1990

CO2 emissions Reduced by 48.3% against

FY1990 level

(emissions of 417,000 tons)


KPI FY2012 Results

Reduce water use in

manufacturing

activities*1

Maintain FY2011 usage

volume

(15,727,000 m3)


FY2012 level


FY2012

Level of water use Reduced by 3.2% against

FY2011 level

(15,217,000 m3)

7

*3

See “In Partnership with Our Suppliers” for details（see P35）

　

Category: Build a supply chain taking into consideration labor conditions and resource allocation


KPI FY2012 Results

Establishment of rocurement

Policy　Guidelines

・Japan: 85%

(Percentage of companies:

15%)

・Overseas: 35%


15%)

・Japan: 85%


15%)

・Overseas: 60%


15%)

・Japan: 90%


20%)

・Overseas: 90%


20%)

Percentage of transactions ・Japan: 85% (Percentage of

companies: 15%)

・Overseas: 35% (Percentage

of companies: 15%)

[Scope of application]

Suppliers to all consolidated companies within the LIXIL Group, with the exceptions of LIXIL Corporation and group companies merged within the past

two years.

Japan…Procurement carried out at workplaces located within Japan

Overseas…Procurement carried out at workplaces located overseas


KPI FY2012 Results

Conduct questionnaire

survey and follow-up

activities

100％ 100％ 100％

Percentage of surveyed

items

complied with

100％

8

*2

See “For Our Customers” for details（see P25）

Category: Establish system to promote product safety


KPI FY2012 Results

Establish and operate

system to promote product

safety

・Incorporate regulations into

quality management system

・Preparation of regulations

completed

・Achieve 100% operation at

LIXIL Corporation

・Establish promotional

system for LIXIL Group

Achieve 100% operation in

LIXIL Group

Operational percentage of

product safety

related regulations

Prepare regulations

Category: Establish system for development of safe products


KPI FY2012 Results

・Reflect accident

information in designs to

prevent recurrences

・Develop safety technology

as a preventative measure

0 accidents/year 0 accidents/year 0 accidents/year

Number of new major

accidents involving

products (accidents caused

by or suspected of being

caused by products)

3 accidents/year

9

Category: Build product safety culture


KPI FY2012 Results

Conduct basic training on

product safety

Prepare two e-learning

programs

・Implementation percentage

30%

・Prepare one e-learning

program

Implementation percentage

60%

Implementation percentage

for product safety e-learning

Completed preparation of

two e-learning programs


KPI FY2012 Results

Hold dialogues with experts

and continue product safety

initiatives and reform of

systems

Once per year Once per year Once per year

Hold product safety

dialogues

Held product safety dialogue

in January 2013

Category: Strengthen dissemination of information


KPI FY2012 Results

Strengthen dissemination of

information about product

safety and accident

prevention

Once per year Twice per year Twice per year

Number of times information

disseminated to customers

Information disseminated via

website and pamphlets

concerning accident

prevention for bidet-

equipped shower toilets and

safety checks

10

*2

See “In Partnership with Our Employees” for more details （see P49）

Category: Encourage performance of diverse personnel


KPI FY2012 Results

Identify and actively utilize

talented diverse personnel

Double number of female

managers in Japan

(benchmark: 22 female

managers at end of March

2012)

・Continue actively promoting

female employees to

managerial positions

・Increase percentage of

”Diverse Talents” hired

during periodic recruitments

・Create environment in

which ”Diverse Talents” can

contribute

no target

Management team’s

identification of personnel

through POD (People and

Organization Discussion)

・Number of female managers

as of March 31, 2013: 47

(including 2 non-Japanese

personnel)

・Percentage of female

managers: 2.15%

・Appoint talented ”Diverse

Talents” through POD


KPI FY2012 Results

Develop talented”Diverse

Talents”

11％ Increase ratio of ”Diverse

Talents” participation in

leadership training programs

and company-sponsored

MBA programs

no target

Increase ratio of female

employees’ participation in

leadership training programs

12％


KPI FY2012 Results

Raise awareness of

personnel about

emphasis on diversity

・Hold round-table

discussions

・Establish intranet website

・Manage LIXIL Women’s

Network

・Hold ”Diversity Dialogue”,

including the top

management

・Implement measures to

encourage career

advancement

no target

Improve results of LIXIL

Sunrise Survey

(employee awareness

survey)

・Prepared LIXIL Diversity

Declaration

・Established LIXIL Diversity

website on intranet

・Completed LIXIL Women’s

Network and began initiatives

・Conducted LIXIL Sunrise

Survey: response

percentage 91%

11

Category: Develop platform to enable employees to perform to their full potential and advance Work-Life-

Flexibility (WLF)


KPI FY2012 Results

Upgrade personnel systems

and regulations

Complete establishment of

WLF Committee comprising

labor and management and

introduce systems

・Raise awareness within the

company and encourage use

of newly introduced systems

・Identify and resolve issues

in promoting WLF

no target

・Improve results of LIXIL

Sunrise Survey (employee

awareness survey)

・Improve evaluations from

external bodies

・Encourage taking of paid

leave: introduced memorial

paid leave system

・Encourage reemployment

after retirement: introduced

career reestablishment

system

・Childcare support: extended

childcare leave period to age

of three, introduced later

work start times for targeted

employees, and provided

supplementary payment for

extended childcare at

nurseries

・Nursing care support:

provided supplementary

payment equivalent to social

insurance premiums during

leave periods and applied

accumulated annual

vacations

12

*1

See “Paricipation in Local Communities” for more details（see P45）

Category: Promote communication with local communities


KPI FY2012 Results

Hold dialogues Hold dialogues at a total of 4

bases: 2 plants, 1 sales

base and 1 store

Hold at 40 plants, 8 sales

bases, and 2 stores

no target

Number of dialogues held Held at 3 bases: Shimotsuma

Plant, Yokohama Kohoku

Showroom, and Super Viva

Home Iwatsuki Store

[Scope of Activities]

*1…Excludes companies merged within the past three years.

*2…LIXIL Corporation only.

*3…Suppliers of LIXIL Corporation and its consolidated subsidiaries (excludes companies merged within the past two years).

13

The LIXIL Group’s social mission is to build and expand worldwide “bonds” that lead

to a good living and good life. Three experts were invited to hold an opinion exchange

discussing the question of what society’s demands are in relation to the promotion

of CSR management and what challenges LIXIL needs to take on.

LIXIL has strengthened its initiatives in product safety activities with the aim of

achieving “superstar” LIXIL Quality. Experts were invited to hold an opinion

exchange to discuss LIXIL’s product safety initiatives and the future of consumer

education.

LIXIL Group emphasizes the importance of discussions with a variety of stakeholders and holds two-way dialogues. By answering

the demands and expectations of society learned through these discussions we aim to contribute to the development of a

sustainable society.

In order to promote general CSR management at LIXIL Group, we host dialogues between the management and relevant

stakeholders.

Expectations for LIXIL Group as it Seeks to Become a Global Leader in Living and Housing Solutions and the

Purpose of Promoting CSR (Held on June 20, 2012)

Dialogues were held on each of the tasks LIXIL Group needs to tackle. The dialogues were held under the guidance of each CSR

Promotion Committee group.

Product Safety Dialogue - LIXIL Initiatives and Consumer Education (Held on January 9, 2013)

14

As the first year in which dialogues with local communities were held, for FY2012 we

decided to hold one dialogue each at a branch, store and factory. We invited a variety

of active stakeholders from local communities to attend and held lively debates.

Dialogues with representatives of local government, residents’ associations and stakeholders who work and live locally were held

at a LIXIL Group factory, showroom and store, based on themes such as local exchange and local contributions.

Outline of Dialogues Hosted in FY2012

15

Date June 20, 2012

LocationLIXIL Corporation Head

Office

External

Stakeholders

Takejiro SueyoshiUnited Nations Environment Programme Finance Initiative -

Senior Advisor

Toshihiko FujiiResearch Institute of Economy, Trade and Industry -

Consulting Fellow

Mariko KawaguchiDaiwa Institute of Research - Chief Researcher, Research

Division

LIXIL

Corporation

Participants

Harumi MatsumuraSenior Managing Executive Officer, CSR and Environmental

Strategy / Director of the CSR Promotion Secretariat

Hiroshi Tanji

Executive Officer and Managing Director, General Manager of

Personnel & General Affairs Division / Chairman of Personnel

Group

Junichi YamanakaGeneral Manager of Quality Assurance Department, Six Sigma

Division / Chairman of Customer Relations Group

Toshiyuki Kimura

General Manager of Business Management Department,

Purchasing & Logistics Division / Chairman of Procurement

Group

Haruyuki MizunoGeneral Manager of CSR and Environmental Promotion

Department / Chairman of Environmental Group

10 other observers

*Department names and positions are those held at the time of each dialogue.

16

LIXIL　LIXIL is currently building a system to promote CSR and is in the process of

developing discussions on the tasks that we need to tackle as a Group through

“products and services” and “business activities”. Could we please have your

opinions on the CSR challenges that a company seeking to become a global leader

needs to take on and the expectations for such a company?

Mr. Sueyoshi　Japanese companies think in terms of “appearances”. If you place

too much emphasis on appearances from the crucial first stage of laying the

foundations there is a risk of missing opportunities or forgetting the basics. Now

might be a good opportunity to take your time and hold thorough discussions on what

LIXIL truly values and the nature of the CSR that the company wants to pursue. I

think you need to value the true purpose of this debate and consider the issues in

your own words.

For example, what value standards do you use to assess the word “superior” in the

corporate management philosophy? There is also a possibility that the nature of

concepts such as “richness” and “comfort” will change after the Great East Japan

Earthquake of March 11, 2011. If you are aiming to become a global leader, surely

LIXIL has a responsibility to pursue the living and housing solutions required in the

21st century?

Mr. Fujii　Corporate philosophies should not be changed too frequently, but I believe

that CSR policies have a different nature in that they need to be revised in

accordance with the changing demands of society. If LIXIL is aiming to become the

number one global company, it will be faced with a series of new challenges from a

CSR perspective. Accordingly, I think it is acceptable for LIXIL to make frequent

revisions to its CSR Policy.

The CSR Expected of LIXIL

Mr. Fujii　The philosophy that you are currently developing can be interpreted however you want, so although it’s not possible to

disagree with this philosophy I get the impression that you have failed to set out a specific direction. The CSR policy set out by a

company should be judged by the extent to which it provides a specific direction to the abstract corporate philosophy.

The original purpose of CSR is to meet the demands of others. To use a baseball analogy, you need to be able to swing a bat in

such a way that you can hit back any ball that the pitcher throws at you. You cannot simply take the pitcher’s role and choose

which balls you want to throw, or in other words choose which CSR issues you want to tackle as a company.

Ms Kawaguchi　I think the key phrase here is “consumer perspective”. To what extent do the employees themselves have the

same attitude as ordinary consumers in a way that includes a perspective on the communities existing in the background to

people’s everyday lives? It’s a problem if the employees providing products that are closely linked to people’s everyday lives are

spending so much time at work that they themselves are not going home and spending time at home. For example, one idea might

be to make an “Employee Lifestyle Declaration” describing the lifestyles of the employees and linking this to the living solutions

the company provides.

CSR Themes and Policies the Company Needs to Tackle

Mr. Sueyoshi　A CSR philosophy affects even simple business discussions, such as how to go about increasing sales. Rather

than having a separate business policy and CSR policy, I want LIXIL’s CSR to be an embodiment of its business policy.

I believe it would be better to look into CSR from a completely new perspective to existing business. As a company involved in

living and housing solutions, LIXIL needs to set out clearly what global environmental issues and social issues it is affected by and

to show an attitude of using this as the basis for developing its business.

17

Japanese companies tend to express their CSR policies in the briefest language

possible, but overseas it is often the case that your intentions will not be

communicated unless you explain yourself using specific examples. For this reason, I

believe it is better to provide detailed explanations as necessary and to avoid

pursuing simplicity.

Ms. Kawaguchi　I think it would be better to revise the philosophy of pursuing “Link

to the Earth”. In terms of the bigger picture, people are in the position of living in the

global environment and nature has this incredible energy, and we saw this in last

year’s earthquake and tsunami, as well as things like hurricanes, flooding and

tornadoes. For this reason I find phrases such as “Link to the Earth” strange. Seeing

the global environment as a threat may lead to ideas about new product needs, for

example.

LIXIL　Having completed the 5-company merger, LIXIL is now putting everything into a new corporate philosophy as a united

company.

We will hold debates on the meaning of each of the highlighted concepts, such as “richness” and “comfort”, and use the results

in future product development, production and sales activities. Business domains are something that we experience and feel for

ourselves, and for this reason we need to go about this work in a “heartfelt” way. We will look into ways of increasing our

understanding of CSR and clarifying the challenges faced by the LIXIL Group.

●Follow-up Measures (as of March 31, 2013)

１．LIXIL Declaration

At the time the dialogs were held, making sure that everyone at the company was heading in the same direction as a united LIXIL team was one

of the major challenges facing the management. From May 2012, members of the executive team held a series of new discussions on the value

that LIXIL should seek to provide. On July 2012, we announced the LIXIL Declaration within the company, declaring that LIXIL is a

“comprehensive living and housing solutions company” and clarifying three visions for achieving LIXIL’s goal of “good living”.

In order to achieve “good living” for each and every customer we will: seek to utilize LIXIL’s unique strengths in order to “create complete

housing solutions”; “provide value for life” as a partner to our customers; and reduce our environmental impact in order to “enable customers to

live in harmony with nature”. Since February 2013, our employees have met in eight locations throughout Japan for internal company events at

which we seek to share our values.

２．Examining our CSR Policy

We have used suggestions by stakeholders from a “bigger picture” perspective to hold discussions on what we need to do in society in terms of

our CSR policies and priority themes, and used this to set about creating our CSR Policy. (Details on specific measures will be provided later.)

See here for CSR Policy（see P2）

The CSR Required of a Global Leader

Mr. Fujii　To become the “global leader” that LIXIL aspires to, it is important that LIXIL is seen as a “global leader” not only from

a Japanese perspective but also for people throughout the world. If LIXIL is to set out on the path to becoming a global leader it is

essential that LIXIL’s CSR Policy provides a clear direction for any overseas companies that become LIXIL subsidiaries in the

future.

It is also doubtful that once you become a global leader you will be able to imagine all of the content demanded by external parties.

For example, once you become a global leader it is inevitable that the question of global poverty will be asked of the company.

Would it really be possible to gain the understanding of stakeholders that you have not had to deal with in the past, such as

international NGOs, if you tell them you are not going to deal with the question of poverty”?

Mr. Sueyoshi　Deciding to become a global leader requires a great deal of preparation. You will need to assume that carrying out

18

Ms. Kawaguchi　Regarding the supply chain, it is important to show an attitude of

wanting to listen to the opinions of external stakeholders. There is no need to give an

immediate response to all opinions, but it might be a good idea to provide contact

details for collecting opinions.

I also think this would be a good way of preparing for the likelihood of unanticipated

future risks that the company will have to tackle. It would be better to assume that

there will be an increase in the number of times when unexpected criticisms are

made by external parties when the company is taking something for granted.

The important thing in this case is to respond to the parties making these comments

as quickly as possible. There is no need to give a detailed reply immediately. The

important thing is to ask if there is a problem and show an attitude of wanting to start

dialog.

Mr. Sueyoshi　For a company with a “number one” or “number two” share of the

market, the question of what to tackle and what to say as part of CSR is extremely

important.

your responsibilities as a global leader brings with it the risk of losing competitiveness in the short-term. However, I believe that

companies that set about preparing to become a global leader in future generations will win the competitive battle in the medium

to long-term.

You mustn’t make generalizations. It’s essential to think about what social challenges are important for your company. Once you

have a “sense of crisis” the things you need to do and don’t need to do become clear.

Ms. Kawaguchi　If you’re going to call yourself a global leader you will be required to take on leadership responsibilities and there

is a need to make preparations from a different perspective to the past.

For example, when Aeon set out a policy of aiming to become a global top-10 company it sought opinions from a wide variety of

external stakeholders. Some of these opinions called for fair-trade products, which were almost entirely unknown in Japan at that

time. In response, Aeon began selling fair-trade products. Once you’ve decided to become a global leader, the important thing is

that you are prepared to be at the vanguard of implementing new initiatives.

What’s more, on the global stage the fact that almost all of the company’s executives are men is a problem. From an investor’s

perspective, having female investors is better in terms of risk management. When you consider the types of products handled by

LIXIL, surely there is an urgent need to increase the number of female executives.

LIXIL　We gained a strong impression of just how tough it is to become a global leader. Handling risk is also a responsibility for

industry leaders. The discussion on global poverty and other issues was extremely informative.

We will continue to hold discussions on how to go about changing activities that we are currently pursuing from the “Galapagos”

of Japan and how to go about adapting our values from a more global perspective.


Regarding healthy, safe and secure living conditions (the foundation of living and housing solutions), we have established “health initiatives”

(which is closely related to the issue of poverty) as one of the “Planned Activities” of our CSR Policy. In addition to providing solutions to water

resources problems, such as pollution and drought, we intend to investigate themes with a focus on medium to long-term innovation.

Regarding the gender ratio of our executives, no improvements have yet been made but we have incorporated into our CSR Policy the goal of

“building a corporate culture brimming with diversity” and set ourselves the challenges of respecting diversity of nationalities, genders, races,

age groups and beliefs. In January 2013 we made the LIXIL Diversity Declaration, and made internal and external announcement about our goal

to increase the ratio of diverse talents, including women, hired as managers and employees. We will continue to promote a culture of respecting

diversity and building a global corporate culture.

Responding to Global Demands concerning Our Supply Chain

19

For example, I would like to see LIXIL set out a clear policy of not trading with suppliers who do not pursue green policies and

encouraging suppliers to work together towards new goals using different methods from those of the past.

Mr. Fujii　There are almost no Japanese companies that have established a position as a global leader in their industry segment,

and for this reason it is difficult to imagine the level of supply chain management required of a global leader.

For example, I believe there would be a need to set out clearly what social problems the company will be able to solve when

tackling each of the proposed priority themes.

LIXIL　LIXIL possess a diverse value chain from upstream through to downstream. The question of how far to become involved in

new issues related to the supply chain, such as human rights, is an extremely challenging one.

Firstly, we will set out a clear policy on procurement. We will start out by developing communication even further and learning

more about our suppliers, including the status of upstream suppliers.


After holding dialogs, in July 2012 LIXIL Group established a Procurement Policy based on “fair and impartial transactions”, “upholding

society’s expectations” and “consideration for the environment”

Our procurement group, which is one of the CSR groups, has been actively holding interviews with leading companies and promoting specific

measures in addition to carrying out a questionnaire survey of suppliers, including overseas suppliers.

In January 2013, we set up a reporting system and published this on our website. The system allows direct reporting to an external legal office,

and is used to promote fair transactions.

See here for the Procurement Policy（see P35）

Lastly - CSR with a View to Transforming Values

Mr. Fujii　CSR can be viewed as a way of revising an organization’s existing values. When carrying out global business, there are

times when you carry out preparations in ways that conflicts with the values your company has possessed in the past. This is

because becoming a global player requires the acceptance of new values.

This is an extremely difficult thing to do, but I want you to accept that holding on too strongly to the values you have learned

through past experiences leads to a risk of closing your ears to society.

Mr. Sueyoshi　The world is undergoing a period of dramatic change. People have caused so many problems in the past and made

these problems so bad that there is now a need for completely new methods and an urgent need to review our values.

For LIXIL, this represents a huge opportunity. I want LIXIL to hold thorough discussions on what you need to do in this climate of

ongoing change. I have huge expectations for the new living and housing solutions business that LIXIL can develop.

Ms. Kawaguchi　The 20th Century was a period of non-stop growth, but the 21st Century will not be a century of growth. I

believe there is a need for us to redefine and pursue the meaning of “richness” in the context of numerous constraints. I feel

that companies are being asked to review their relationships with society and this is what is meant by CSR.

Merging five companies in the field of living and housing solutions, which is something that affects all people, and then going one

step further by deciding to develop globally, is a huge challenge. However, I want each and every employee to reconsider the

consumer’s perspective and work hard towards their goals.

LIXIL　Thank you very much. We have learned so much from the valuable opinions we received today.

In addition to gaining a strong impression of just how tough it is to become a global leader, we have been reminded of the need to

change the values of existing organizations when pursuing CSR.

In pursuing housing-related business, there is clearly a need to change the nature of housing, both in Japan and around the world.

We will make use of your opinions as we set about earnestly pursuing our CSR activities.

20


The dialog helped to bring about change in the attitudes of the participants, and has been a great help in promoting CSR.

Since the dialog was held, efforts were made to examine the CSR Policy while confirming the philosophies of top managers including the

President, and to set out specific challenges for the LIXIL Group from a global social perspective. At the end of July 2012, the CSR Promotion

Committee, which is chaired by the President, decided upon the CSR Policy and published the policy externally on August 3.

In terms of our CSR promotion system, we have established four groups for each category of stakeholders and we will work on different

challenges based on the opinions received during the dialog. We will continue to release details of CSR activities in our annual reports.

Profiles

Takejiro Sueyoshi

After graduating from the University of Tokyo’s Faculty of Economics in 1967, he joined The Mitsubishi Bank.

After working as the General Manager of the New York Branch, Director and then President of Bank of Tokyo-Mitsubishi

Trust Company (New York), he became Vice President of Nikko Asset Management. During his time at Nikko Asset

Management he was appointed as a member of the United Nations Environment Programme Finance Initiative (UNEPFI)

Steering Committee, and is now a UNEPFI Senior Advisor.

Toshihiko Fujii

Born in 1964, he joined the Ministry of International Trade and Industry (now the Ministry of Economy, Trade and Industry) in

1987.

After working in international trade policy at G7 Summit negotiations etc., in 2000 he was appointed Secretary General of the

Japan Business Council in Europe. In 2004, he returned to the Ministry of Economy, Trade and Industry and worked in roles

such as Principal Director of the Multilateral Trade System Department. He is currently a Consulting Fellow at the Research

Institute of Economy Trade and Industry, in addition to holding the post of Visiting Professor at Saitama University’s

Graduate School of Economic Science.

Mariko Kawaguchi

After completing her Master’s Course at Hitotsubashi University’s Faculty of Economics Graduate School, she joined Daiwa

Securities.

After transferring to Daiwa Institute of Research, she carried out research into environmental economics, SRI (Socially

Responsible Investment) and CSR. Since 2010, she has worked as General Manager of the CSR Promotion Department at

Daiwa Securities Group Inc., and. General Manager of the Environment CSR Research Department at Daiwa Institute of

Research. Currently she works as a Senior Analyst at the CSR Promotion Department at Daiwa Securities Group Inc.

21

Profiles

Takejiro Sueyoshi

After graduating from the University of Tokyo’s Faculty of Economics in 1967, he joined The Mitsubishi Bank.

After working as the General Manager of the New York Branch, Director and then President of Bank of Tokyo-Mitsubishi

Trust Company (New York), he became Vice President of Nikko Asset Management. During his time at Nikko Asset

Management he was appointed as a member of the United Nations Environment Programme Finance Initiative (UNEPFI)

Steering Committee, and is now a UNEPFI Senior Advisor.

Toshihiko Fujii

Born in 1964, he joined the Ministry of International Trade and Industry (now the Ministry of Economy, Trade and Industry) in

1987.

After working in international trade policy at G7 Summit negotiations etc., in 2000 he was appointed Secretary General of the

Japan Business Council in Europe. In 2004, he returned to the Ministry of Economy, Trade and Industry and worked in roles

such as Principal Director of the Multilateral Trade System Department. He is currently a Consulting Fellow at the Research

Institute of Economy Trade and Industry, in addition to holding the post of Visiting Professor at Saitama University’s

Graduate School of Economic Science.

Mariko Kawaguchi

After completing her Master’s Course at Hitotsubashi University’s Faculty of Economics Graduate School, she joined Daiwa

Securities.

After transferring to Daiwa Institute of Research, she carried out research into environmental economics, SRI (Socially

Responsible Investment) and CSR. Since 2010, she has worked as General Manager of the CSR Promotion Department at

Daiwa Securities Group Inc., and. General Manager of the Environment CSR Research Department at Daiwa Institute of

Research. Currently she works as a Senior Analyst at the CSR Promotion Department at Daiwa Securities Group Inc.

22

Shimotsuma Plant (hosted on March 26, 2013)

It was decided that LIXIL’s Shimotsuma Plant would host the

first of the dialogues with local communities to be held at a

LIXIL Group factory and a variety of stakeholders from

Shimotsuma City gathered to take part. An introduction was

given of the environmental and local community initiatives

being implemented at Shimotsuma Plant and after giving a tour

of the factory the participants were asked to give opinions or

make requests. A lively debate was held.

Yokohama Kohoku Showroom (held on March 13, 2013)

An opinion exchange was held at Yokohama Kohoku

Showroom, which celebrated its third anniversary this year.

Local residents (from Tsuzuki Ward, Yokohama City) were

invited to take part with the aim of creating a showroom with

strong local roots.

Date March 26, 2013

Location Shimotsuma Plant

External Stakeholders

A total of 12 participants, including city school teachers and

representatives from Shimotsuma City Hall, Shimotsuma

Chamber of Commerce and Industry, local residents’

associations and local groups

LIXIL Corporation Participants

A total of 9 participants from Shimotsuma Plant and LIXIL

Corporation Head Office, CSR & Environmental Promotion

Department

Dialogue Themes

Disaster preparation measures, the provision of learning

opportunities to neighboring elementary schools and junior

high schools, and regional exchange

Date March 13, 2013

Location Yokohama Kohoku Showroom


A total of 9 participants from Tsuzuki Ward Office,

neighborhood associations, trade promotion associations and

regional groups


A total of 8 participants from the Kanagawa Branch and LIXIL

Corporation Head Office, CSR & Environmental Promotion

Department

Dialogue ThemesContribution to regional revitalization and town planning, and

cooperation with disaster preparation initiatives

23

Super Viva Home * Iwatsuki Store (held March 21, 2013)

Super Viva Home Iwatsuki Store opened as recently as

December 2012 and we decided to invite local stakeholders to

the store for a dialogue. Discussions were held on a variety of

themes, with a focus on the relationships between Iwatsuki

Store and local communities.

*The home center which LIXIL Viva Corporation manages.The store offers an extensive selection of products aimed at helping to

create comfortable homes and living environments.

Date March 21, 2013

Location Super Viva Home Iwatsuki Store


A total of 15 participants from the Saitama City’s Department

of Economic Affairs, Bureau of Economic Affairs,

environmental NPOs, residents’ associations and local

businesspeople


A total of 8 participants from Super Viva Home Iwatsuki Store,

LIXIL Viva Corporation Head Office and LIXIL Corporation

Head Office, CSR & Environmental Promotion Department

Dialogue ThemesCollection of waste materials, local clean-up activities,

response to large-scale natural disasters, etc.

24

LIXIL Group seeks to provide products and services designed

from the customer’s perspective and to improve customer

satisfaction through communication, based on its corporate

philosophy “LIXIL CORE” and shared Group values “LIXIL

VALUES”.

*CS (Customer Satisfaction)

See here for “LIXIL CORE” and “LIXIL VALUES”

（http://www.lixil-group.co.jp/e/about/governance

/default.htm）

In April 2013, we merged the functions of the Quality

Assurance Department and Customer Support Division to

create a new CS Division with the aims of improving product

quality and providing a high level of customer support. The CS

Division uses the customer opinions it collects to provide

feedback to the relevant departments from the dual

perspectives of “products” and “services”, with the aim of

increasing customer satisfaction.

25


We have collected data using a monthly average of approximately 280,000 inquiries made by our customers to our service

centers, including the Customer Service Center, Repair Center and General Product Information Support Center, and shared this

information with the relevant departments with the aim of implementing improvements and providing better products and services.

In FY2012 we received a monthly average of more than 280,000 inquiries, including questions or requests from customers who

were using or thinking about using our products, requests for repairs, and inquiries from our suppliers. Moreover, the Customer

Service Center carries out a Customer Satisfaction Survey every six months to check whether or not we are dealing with

customers properly and verifies the effects of our day to day attempts to improve our levels of service.

26

LIXIL　Corporation regards improving customer satisfactio regards improving customer satisfaction as a priority challenge for its

business activities and promotes better manufacturing and services while always remembering to listen to the voice of customers

(VOC). We introduced and developed the Six Sigma system with the aims of promoting ongoing activities in this field and firmly

establishing appropriate systems and corporate culture.

Six Sigma starts by listening to customers’ opinions and establishing themes for improvement. The next step is to use facts

backed up by numerical analysis, instead of making judgments based on instinct or experience, to limit variation in the quality of

work or services, and to use this to improve quality. When carrying out these improvement activities, we will build cross-functional

teams across companies and departments and implement improvement projects aimed at tackling each challenge.

Through Six Sigma, in addition to visualizing the areas of our work that require improvements from the customer’s perspective

and improving the quality of our products, we will implement innovations in all our activities, from services through to everyday

administration.

27

[Product training]

Using a sash window during training to increase

product knowledge

[Installation training]

Fitting a sash window as part of installation

training

[Award system]

Winners of the regularly held customer service

contest

Here we introduce examples of improvements implemented after listening to the “voice of customers” collected at our service

centers.

●Voice of customers

I called the Customer Service Center several times all day, starting in the morning, but I couldn’t get through.

It’s extremely annoying that I can’t get through when I’m in a hurry. Can you do something about this?

●Improvements implemented

We reviewed the product team composition at the Customer Service Center and allocated staff in accordance with the number of inquiries

received.

Moreover, improving the specialisms and skills of service staff has made it easier for customers to get through (implemented in February 2013).

Regular training sessions are held to increase work knowledge and product knowledge so that service staff are able to solve

customers’ problems more smoothly.

Prizes are awarded in accordance with the skill levels of service staff in order to increase motivation.

29

The showroom is one of the few places where we get to communicate directly with our customers. LIXIL Corporation has

showrooms in 98 locations throughout Japan (as of August 2013). At the showrooms, in addition to allowing customers to view

physical products we host events such as Exhibition for Lifestyles new product exhibitions to encourage a wider range of

customers to visit the showrooms.

At our LIXIL showrooms, we put LIXIL Showroom Values into practice so that all showroom staff continue striving to pursue

activities that increase customer satisfaction.

LIXIL showrooms are visited by a variety of different people, including our patrons, suppliers and people from the local community.

For this reason, we work hard to train showroom coordinators capable of identifying the best way of treating each and every

visitor to our showrooms and guiding them in a way that best suits their needs. Moreover, mergers have led to a major increase in

the types and numbers of our products, so we also equip our coordinators with the knowledge required to explain every type of

product.

In FY2013 we established a “Status System” as part of our training system in order to strengthen initiatives aimed at increasing

customer satisfaction. Under the Status System, we have established four “statuses” (Bronze, Silver, Gold and Platinum) based

on 220 targets that our showroom coordinators need to aim for. The system aims to increase motivation, techniques and

knowledge by providing a curriculum for achieving status promotions and through regular status assessments.

Furthermore, we have appointed showroom promotion officers with responsibility for training showroom staff at 13 branches

throughout Japan. They provide basic in-store training with a focus on role-play.Basic training is provided in four steps depending

on the knowledge and experience of staff-“knowledge of product names”, “using catalogues to give explanations”, “proposing

products to match needs” and “proposing solutions using our products”. Staff begin at the level of “being able to use a catalogue

to give explanations” for every product and continue training as they aim to become showroom coordinators. Furthermore, all

branches host customer service role-playing competitions and host presentations of successful case studies.

30

Customers who visit our showrooms are asked to fill in a

customer service survey with the aim of improving our

approach to showroom customer service and our ability to

explain products clearly. The content of customer service

surveys are communicated to showroom coordinators and

used in the operation of showrooms. Since FY2013, we have

used the survey results to carry out “talk training” with the

aim of clearly communicating the advantages of our products

to customers.

Results of FY2012 Customer Survey

Held at all 13 branches and 110 showrooms. Total number of valid

responses: 42,608

Furthermore, in order to ensure the satisfaction of free

customers who do not talk to our showroom coordinators, we

observe customer behavior with a focus on free customers

and implement improvements in areas such as product layout

within the showroom. We also try to use “Living Proposal

Sheets” by compiling proposal sheets for products offered by

LIXIL and to install “easy to see, easy to understand” panels in

line with customers’ needs.

▲Living proposals sheets

▲“Showroom Coordinator Customer Service Role-playing Competition” held at Kanagawa Branch.

In addition, we examine improvement measures at each showroom in response to the “voice of customers” collected from

customer service surveys. Concrete measures are planned and a “Happy Project” information exchange is held at each branch

as a way of exchanging information, and reporting and sharing information on the progress made and ways of implementing

improvements. Undercover surveys (Mystery Shopper Research) are implemented regularly in each showroom in order to check

up on whether or not improvement measures are being fully utilized in actual operation.

31

In October 2012, LIXIL Corporation established the CSR Quality Promotion Section at the Quality Assurance Department as a

specialist organization for promoting product safety and we have strengthened our product safety initiatives.

Every six months, LIXIL Corporation asks a third party to create a “Product Safety Report Card”. We assess 147 items in the five

categories of “Building a Product Safety System”, “Supplying Safe Products”, “Communication with Consumers”, “Dealing with

Accidents” and “Building a Product Safety Culture”. The results of the assessments are used to set activities targets for the

company and to pursue product safety activities. Once every year, we draft a “Product Safety Activities Report” to share

information across the company and in the future we plan to disclose and publish the report outside the company.

32

At LIXIL Corporation, in order to ensure our customers’ safety we implement measures from product development through to

after-sales so that our customers are able to purchase and use our products with safety and peace of mind at every stage,

including product development, design, manufacture, distribution and after-sales support.

33

In order to strengthen our product safety measures, LIXIL

Corporations holds dialogues with experts on the topic of

“product safety”. In FY2012, we invited Professor Sakamoto of

Hitotsubashi University Graduate School, Professor Tsuru of

the University of Tokyo, and Ms. Furuya, a Board Member at

Nippon Association of Consumer Specialists to give their

opinions on the topics of “LIXIL Corporation's Product Safety

Activities” and “Consumer Education of the Future”.

At LIXIL Corporation, within 24 hours of information being received on a product accident occurring, information is collected by

the CS Division’s Risk Management Team and an emergency notice is sent to the relevant departments. A system is in place to

implement a workplace response in close collaboration with the customer service centers and to carry out accident surveys, etc.

Moreover, under the serious product accident reporting and disclosure system based on the Consumer Products Safety Act, we

make a report to the relevant authorities within ten days of receiving accident information. In FY2012, three new serious product

accidents occurred. To prevent any recurrence, we have promoted safety technology to reflect accident information at the point

of design and prevent accidents in advance.

Important messages for customers using LIXIL products（http://www.lixil.co.jp/warnings/）

34

http://www.lixil.co.jp/warnings/

The LIXIL Group’s business is supported by its relationships

with the suppliers that constitute its business partners. To

build healthy relationships with our suppliers around the world,

we have drawn up our LIXIL Procurement Policy, focusing on

the specifi c areas of ensuring fair and impartial trade practices,

compliance with social norms, protection of the environment,

and promotion of mutual prosperity with our suppliers.

35

Since the five-company merger of April 2011, LIXIL Group has developed the scope of its supply chain management. In order to

achieve sustainable development alongside our suppliers, we have promoted the development of a system to include CSR

Procurement through our domestic and overseas procurement groups. In order to promote thorough understanding by our

suppliers, we have established standard LIXIL Procurement Policy Guidelines for suppliers in agreement with our policy. As the

next step, we have used a CSR Procurement Survey to identify the current situation and implement follow-up improvement

activities.

In FY2012, we set a target of establishing the Procurement Policy Guidelines at 85% of our Japanese suppliers and 35% of our

overseas suppliers, and achieving a 100% compliance ratio with our CSR Procurement Survey at these companies, and we

succeeded in reaching this target. The survey items included questions on “fair and impartial transactions”, “upholding society’s

expectations” and “consideration for the environment”, and we implemented follow-up improvement activities at suppliers with

poor survey results. In FY2013, we will make a major revision to the questions contained in the CSR Procurement Survey with

the aim of achieving further improvements, and we will strengthen implementation at overseas suppliers.

See here for details on the CSR Questionnaire Survey（see P38）

Progress made in FY2012 (LIXIL Group as a whole)

Priority Theme Measures

Tackled

KPI FY2012 Targets FY2012 Results FY2013 Targets

Japan Overseas Japan Overseas Japan Overseas

Construction of a

supply chain that

gives sufficient

consideration to

the labor

environment and

allocation of

resources

1.Establishment

of Procurement

Policy Guidelines

Percentage

of

transactions

85％ 35％ 85％ 35％ 85％ 60％

(Percentage

of

companies)

（15％）（15％）（15％）（15％）（15％）（15％）

2.Questionnaire

survey and

activities

follow-up

Ratio of

compliance

with

assessed

items

100％ 100％ 100％ 100％ 100％ 100％

e

Priority themes of the Procurement Group with the goal of achieving further improvements from FY2013 onwards (LIXIL Group as a

whole)

1. Procurement within Japan

(suppliers: Japanese and overseas companies)

Selection of tasks and activities that promote further

development of measures at suppliers

2. Procurement at overseas bases (suppliers: overseas

and Japanese companies)

Develop activities to the ASEAN region, including China, South

Korea, Thailand and Vietnam.

36

LIXIL Group provides fair trading opportunities and seeks suppliers from a broad base. When selecting suppliers, we have

established a system for deciding our suppliers by assessing the content of CSR activities, such as environmental conservation,

human rights and occupational safety, in addition to QCD (Quality, Cost and Delivery).

Moreover, in order to contribute to the local economies of our production bases, we are promoting an increase in the local

procurement ratio for raw materials and parts at our leading overseas bases.

FY2012 local procurement ratio at leading overseas bases (total amount basis)

China Approx. 70%

Thailand Approx. 70%

Vietnam Approx. 30%

Collection of compliance information from suppliers (suppliers of materials and subcontractors)

LIXIL Group aims to carry out corporate activities with the aim of being a useful company that is trusted widely by society. For this reason, we

have established an external legal office to receive information related to compliance violations within the LIXIL Group.

See here for more details (http://www.lixil.co.jp/corporate/csr/client/compliance_info.htm)

The flooding that occurred in Thailand during FY2011 led to a suspension of factory operations for approximately six months at

our overseas manufacturing subsidiary TOSTEM THAI Co., Ltd. There were delays in finding alternative suppliers for some items

and the molds used by our suppliers to make parts were submerged in water. These problems led to delays in restarting

production. In response, we have strengthened our procurement system as a key pillar of our Business Continuity Management

(BCM) to prepare for any future problems. We have put together priority policies, including “diversified purchasing” of procured

items and “reserve holdings of molds”, which are essential manufacturing equipment, on the assumption of building a supplier-led

BCM system. Moreover, during product development we now build supply chains that take BCM into consideration.

37

http://www.lixil.co.jp/corporate/csr/client/compliance_info.htm

LIXIL Corporation has established “supplier assessment standards” for our suppliers and carried out overall assessments of the

reliability of companies, not only from the perspective of QCD (Quality, Cost and Delivery), technological capability and steady

supply capabilities, but also in consideration of compliance and the environment.

Furthermore, since FY2012 we have made regular checks on our suppliers’ environmental measures and legal compliance by

developing more specific environment conservation questions and adding new CSR-related questions from the perspective of

promoting CSR procurement. In the future, we will continue to strengthen our supply chain management by adding further targets

to our supplier assessment standards in relation to human rights and occupational safety, so that we are able to implement CSR

procurement activities on a global level.

Approach to CSR Procurement

We believe it is essential to obtain sufficient understanding and cooperation from our suppliers in order to “build a supply chain

taking into consideration labor conditions and resource allocation”, which is one of the priority challenges of the Procurement

Group. We use a CSR Procurement Survey based on our Procurement Policy to investigate matters such as environmental

conservation, human rights, occupational safety measures and consideration for the local community. We carry out fair

assessments of each question, and when a supplier scores poorly in the survey we strengthen support measures in order to

promote improvements and use the results to decide on which suppliers to use. For the FY2013 survey, we have added new

questions in fields such as CSR management, human rights, labor conditions, health and safety, and regional contribution (66

questions in total), as we seek to identify real conditions in the pursuit of concrete measures aimed at CSR procurement.

CSR Procurement Survey Questions (FY2012)

①Fair and impartial trading 5questions

②Upholding society’s expectations 12questions

③Consideration for the environment 6questions

total 23questions

Download FY2012 Survey Table [in Japanese] for more details (61KB) （http://www.lixil.co.jp/corporate/csr/client/pdf

/question_2012_j.pdf）

38

http://www.lixil.co.jp/corporate/csr/client/pdf/question_2012_j.pdf

In order to contribute to society through the supply of highly reliable products, it is essential that we build strong partnerships

with our suppliers. At LIXIL Corporation. we work hard to improve quality control in collaboration with our suppliers. We carry out

quality maintenance audits of existing suppliers as a way of maintaining and improving a system that allows us always to provide a

steady supply of high-quality products. During the audits, we ask questions on topics such as process management and facilities

management, the development of check-sheets and testing. We implement improvements in collaboration with our suppliers when

corrective measures are necessary.

Other initiatives include quality improvement seminars, the provision of support for launching new parts business, and the

promotion of quality assurance activities for items procured overseas. Thanks to these measures, in FY2012 we succeeded in

achieving a major reduction of 30% against the previous year in cases of malfunctions or trouble attributable to our suppliers.

We hold policy briefings for our suppliers and partners with the goal of increasing their understanding of LIXIL Corporation's

Policies. The 2nd LIXIL Corporation Supplier Policy Briefing was held in Tokyo on June 19, 2013, and 397 representatives

attended from 229 companies in the fields of supply and logistics. At the policy briefing, we explained our overall policy,

Procurement Policy and quality improvement measures and presented prizes and letters of thanks to the suppliers who made

significant contributions in reducing costs and improving quality during FY2012 (suppliers - two companies; logistics - two

companies).

39

As an enterprise dealing in home plumbing products, we endeavor to communicate

the importance of water to children both in Japan and overseas, and carry out

activities aimed at raising awareness of local water issues.

Activities in Vietnam

Although numerous plumbing products are manufactured in Vietnam, many parts of the country still lack proper sanitation and

environmental awareness is also at a low level. Accordingly, we are working with local governments and international NPOs Bridge

Asia Japan (“BAJ”) and Seed to Table (“STT”) to educate Vietnamese children about water environment issues to allow them to

think and act for themselves. In FY2012, the 6th year of the program, we carried out activities in locations such as Hòa Bình

Province in the north of Vietnam, Huế in central Vietnam and Hồ Chí Minh in the south. We gave presentations on the results of

the program at local factories, and carried out factory tours and exchange activities.

Background

Time of Activities Details of Activities

2007 ‐ Launched activities with BAJ and Save the Children (3 year agreement)

April Created unique educational textbooks

June to

August

Environmental education activities in Yên Bái (north of Hanoi) and Huế

2008 March Invited children from Yên Bái and Huế to the Eco-Products exhibition in Hanoi and gave a tour of

VINAX

June Environmental education activities in Yên Bái and Huế

December Environmental education activities in Yên Bái, Huế and Qui Nhơn

2009 June Environmental education activities in Yên Bái, Huế and Hồ Chí Minh

2010 ‐ Launched activities with BAJ and STT

January Environmental education activities in Huế and Qui Nhơn. Factory tour of INAX VIETNAM TILE Co.,

Ltd.

July Environmental education activities in Nam Sơn commune, Hòa Bình Province, Huế and Hồ Chí Minh

2011 January Environmental education activities in Nam Sơn commune, Hòa Bình Province, Huế and Hồ Chí Minh

July to

August

Environmental education activities in Phu Vinh commune, Hòa Bình Province, Huế and Hồ Chí Minh

and tour of the VINAX factory

2012 February Environmental education activities in Phu Vinh commune, Hòa Bình Province and Huế

July Environmental education activities in Dich Giao commune, Hòa Bình province and Huế

Activities report by residents of Phu Vinh commune, Hòa Bình Province, and tour of LIXIL INAX

VIETNAM Corporation factory

2013 March Environmental education activities in Dich Giao commune, Hòa Bình province and Huế

Activities report by children of Hồ Chí Minh, and tour of LIXIL INAX Saigon Manufacturing Co., Ltd.

factory

*Between FY2007 and FY2010, activities were carried out by our predecessor INAX Corporation.

See the following news release “Learning from Water” (activities in Vietnam) for more details（http://global.lixil.co.jp/pdf

/20131003_vietnam_E.pdf）

40

http://global.lixil.co.jp/pdf/20131003_vietnam_E.pdf

Employees from our regional sales departments make visits to

elementary schools to give lessons over two periods. They use

original educational materials to raise children’s awareness

that water is a limited resource, using the examples of the

earth’s water circulation and water problems. The lessons give

the children the opportunity to reconsider their own lifestyles.

Over the three-year period between 2010 and 2012, 71

lessons were given by 27 branches, and approximately 3,700

students took part. The participating children offered numerous

honest thoughts and opinions, including surprise at just how

much water each of us uses without realizing, shock at the

water situation in other countries, and a desire to be more

careful about how they use water in the future. The employees

who gave the lessons enjoyed the children’s enthusiastic

responses and the serious approach they took to the lessons.

The experience gave our employees a great deal of

satisfaction and helped their development.

Activities in Japan

41

We work with government, NGOs and NPOs to conduct

volunteer activities such as thinning forests and woodlands,

planting trees and other environmental improvements. We are

currently working with local communities in Mie, Nagano and

Ibaraki prefectures, where we carry out activities twice each

year, in the spring and autumn.

In support of the corporate forest-building activities promoted

by Mie Prefecture, in 2008 we entered into a forest

preservation agreement with Iga City, and began activities in

the Kamiawa area. By 2014 we had planted approximately

0.76ha of mountain forest in the Kamiawa area, and we plan to

carry out thinning and pruning on a site of approximately 0.5ha.

Between 2008 and April 2013, we held a total of ten activities

sessions.

139 participants helped with the bucking of logs thinned in the

autumn of FY2012, building arbors, creating work paths, and

making Christmas trees for children. In April we carried our

thinning, tree-planting, installation of protective netting, and

carpentry for children.

See the following news release for more

details（http://newsrelease.lixil.co.jp/news/2013

/110_eco_0424_01.html）

Activities in Mie Prefecture

42

http://newsrelease.lixil.co.jp/news/2013/110_eco_0424_01.html

In 2009, we launched activities in Achi Village, Shimoina

District as part of Nagano Prefecture’s “Adopt a Forest”

forest promotion project. By 2013, we had thinned and cleared

approximately 16ha of forests in West Ward, Achi Village, and

we now plan to clear a 1,200 m work path. Between 2009 and

June 2013, we held a total of nine activities sessions.

During FY2012, 97 people took part in the spring and autumn

activities, trying their hand at sawing, clearing work paths, and

using chain-saws to thin the forest. The children who took

part used the materials collection from thinning to try out

woodwork. They gained valuable experience of coming into

contact with nature and learned the importance of our forests.



/110_eco_0606_01.html）

In 2009, we launched conservation activities to support

mountain villages in Shishitsuka, Tsuchiura City, Ibaraki in

partnership with the Certified NPO for Nature preservation and

History Transmission of Shishitsuka Satoyama. We carried out

nature observation in mountain village areas, maintained water

resources and carried out maintenance on water channels for

wetland areas known as yato, and removed foreign plants

known to be harmful to native species. Between 2009 and the

end of July 2013, we held a total of nine activities sessions.

During FY2012, 120 people took part in the spring and autumn

activities, helping to remove foreign species such as Canada

goldenrod, Salix chaenomeloides and yellow flag in an effort to

preserve preservation native species. By the end of the

activities the foreign species, which had proliferated before the

activities, had been so well cleared that they were nowhere to

be seen and the benefits of the activities were clear for all to

see.

See the following news release for more details

（http://newsrelease.lixil.co.jp/news/2013

/110_eco_0725_01.html）

Activities in Nagano Prefecture

Activities in Ibaraki Prefecture

43



Number of participants since FY2011

Base Date of activities Number of participants Total

Local community and local

government

Employees Employees’

families

Mie Prefecture October 29, 2011 23 93 35 151

November 3, 2012 28 92 19 139

April 20, 2013 47 60 17 124

Nagano

Prefecture

June 11, 2011 35 28 12 75

November 3, 2011 13 23 17 53

June 2, 2012 9 29 15 53

November 3, 2012 5 22 17 44

June 1, 2013 10 34 10 54

Ibaraki Prefecture June 18, 2011 13 66 7 86

November 5, 2011 10 58 7 75

July 7, 2012 7 53 3 63

November 10,

2012

12 45 0 57

July 20, 2013 13 45 5 63

Total 225 648 164 1,034

44

Since 2009, our employees and their families have been

planting trees within factory perimeters with the help of local

residents, community organizations, and local governments.

Preliminary surveys of the potential natural vegetation at

groves in neighboring shrines etc. have been carried out with

the aim of planting species that match the local environment.

So far, 19,471 trees and around 50 different varieties have

been planted in an area of 5,620m2 and the cumulative number

of participants has reached 2,503.

See the following news release for more details “Bringing

Forests to Factories – Hisai Plant”


/110_eco_0916_01.html）

See the following news release for more details “Bringing

Forests to Factories – Chita Office”


/110_eco_1108_01.html）

▲Activities in Hisai factory

We host dialogues with representatives of local government, residents’ associations and stakeholders who work and live locally at

LIXIL Corporation's factories and showrooms, on themes such as regional exchange and regional contributions. In FY2012, we

held dialogues at three locations - Shimotsuma Plant, Yokohama Kohoku Showroom and Super Viva Home Iwatsuki Store. In

FY2013, we intend to increase the number of bases hosting dialogues and promote activities that strengthen the bonds between

our workplaces and local communities.

45



Our Noda Office and Nanakodai Office in Chiba Prefecture

hosted six sessions of the “Noda Rice Field Wildlife School”

between June and September at Chiba Prefecture and Noda

City’s citizens’ rice field allotments at Egawa, Noda City,

Chiba. The aim was to teach the importance of biodiversity by

growing rice. At the first session on April 28, 2013, a total of 37

employees and family members took part in rice-planting.

In December 2012, Noda City received a pair of oriental storks

free of charge from Tama Zoological Park with the aim of

helping the species (designated as a special natural monument

in Japan) to recover in the wild, and Noda City has begun

breeding the birds at facilities located within the city. Over the

next few years, the aim is to train chicks born to the pair to

feed themselves and then to release them into the wild.

Noda Office and Nanakodai Office agree with the objectives of

Noda City’s project, and the aim of the Noda Rice Field Wildlife

School is to grow rice in fields using limited agrichemicals

which provide habitats for the diverse range of creatures (such

as sludge worms, frogs, snakes, pond loaches and Japanese

[Schedule for FY2013]

June 16 First weeding session (Usage of agrichemicals

during cultivation is restricted and as a result

it was hard work to clear the proliferation of

weeds.)

July 21 Nature-watching session

July 27 Second weeding session and firefly

observation

Past activities

Name of Office Date of Activities Number of trees

planted

Number of

varieties

Planted

area

Number of

participants

Shimotsuma

Plant

October 3, 2009 6,000 42 2,000㎡ 460

Maebashi Plant June 19, 2010 5000 45 1,100㎡ 530

Chita Office June 12, 2010 1500 31 500㎡ 377

October 29, 2011 240 10 240㎡ 145

Hisai Plant September 10,

2011

6731 48 1,780㎡ 991

Total 19,471 - 5,620㎡ 2,503

Expenditure (Grants) on Social Contributions - FY2012

Ratio by category Amount %

Philanthropic donations 48,313,981 yen 85%

Community investments 8,516,530 yen 15%

Commercial initiatives 0 yen 0%

Total 56,830,511 yen

LIXIL Corporation makes donations to local government bodies, associations, regional groups and educational institutions carrying

out regional activities both in Japan and overseas. The donations are used to revitalize local communities, prevent crime and

maintain safety locally, and to support people with disabilities and the elderly.

Hosting “Noda Rice Field Wildlife School”

46

common catfish) needed for the oriental stork to survive as a

creature at the top of the food chain, and in doing so to learn

the importance of protecting these environments.

September

1

Rice harvest

September

29

Harvest Festival

LIXIL Corporation cosponsored the 27th Shorenji Lake

Long-Distance Relay Race, held on February 24, 2013 in

Nabari City, Mie Prefecture, with the aim of supporting local

communities through sport. Eighty-one teams took part on the

day, from Nabari City and beyond. Many people look forward to

the race each year and the event receives entries from jogging

and marathon groups and high school athletics clubs in the

Nabari area. Approximately 700 runners are involved in the

race, including substitutes.

Every year we act as main sponsor for the “IRONMAN 70.3

Centrair Chita Tokoname Japan” race with the aim of

supporting local communities through sport. In FY2013, 180

employees took part as competitors and as race operation and

support volunteers.

See here for the official website of IRONMAN 70.3

（http://ironman703.jp/e/）



/070_company_0516_01.html）

Co-sponsorship of the 27th Shorenji Lake Long-Distance Relay Race

Sponsorship of International Triathlon Event

47

http://newsrelease.lixil.co.jp/news/2013/070_company_0516_01.html

As part of our support activities, since 2011 we have

cosponsored the IPPO IPPO NIPPON Project, which is

promoted by 334 companies (as of June 2013) throughout

Japan with the cooperation of the Japan Association of

Corporate Executives. The project supports children in

disaster-affected areas through the donation of practical

teaching equipment to specialist schools, etc., and promotes

specific projects aimed at training people and revitalizing

industry according to the needs of disaster-affected areas.

IPPO IPPO NIPPON Project（http://www.doyukai.or.jp

/ippo/）

▲Practical lessons at a specialist school using teaching materials

donated by LIXIL Corporation

On March 11, 2013, exactly two years after the Great East

Japan Earthquake, a voluntary charity concert was held at

LIXIL Corporation's Takamatsu Showroom. Customers ranging

from children to the elderly gathered on the day of the concert

to express their hopes for recovery through music. Donations

totaling 48,818 yen were collected on the day, and the full

amount was donated to the Japanese Red Cross Society.

Since the Great East Japan Earthquake Disaster in 2011, LIXIL Group has been involved in a variety of activities aimed at helping

the Tohoku Region to recover as quickly as possible. These have included the donation of products to the “Minna No Ie” Toyo

Ito Project and volunteering programs such as the IPPO IPPO NIPPON Project. Other initiatives have included ongoing

sponsorship of Tohoku Rokkonsai, in which the six major festivals of the Tohoku Region are brought together to mark the

region’s recovery, recovery support activities in which the employees volunteer their time, and activities that make use of LIXIL

products and services.

Minna No Ie” Toyo Ito Project（http://www.biz-lixil.com/news/article/goodliving/web/1212/minnano_ie/）

See the following news release for more details on the Tohoku Rokkonsai（http://newsrelease.lixil.co.jp/news/2013

/070_company_0510_01.html）

IPPO IPPO NIPPON Project

Charity Concert Held to Support Disaster Recovery

48

http://www.biz-lixil.com/news/article/goodliving/web/1212/minnano_ie/

http://newsrelease.lixil.co.jp/news/2013/070_company_0510_01.html

http://www.doyukai.or.jp/ippo/

LIXIL Group pays close attention to respect for human rights

when employing and recruiting employees, and works hard to

establish fair selection, employment of diverse human

resources irrespective of social group, and a labor platform that

allows diverse human resources to display their full potential.

In our recruiting activities, we look to hire people who agree

with the values defined in our “LIXIL VALUES” and who are

capable of showing this through their behavior. Specifically this

means “people who deliver on their commitments”, “people

with the passion to improve and take on new challenges”,

“people capable of open and honest communication” and

“people who are capable of thinking from the customer’s

perspective and acting with integrity and fairness”.

We also actively pursue the recruitment of external human

resources to increase the global competitiveness of our

business, utilize human resources affiliated to our overseas

subsidiaries when carrying out our global operations, and

recruit and utilize diverse talents, including foreign employees

and women, in order to promote diversity.

Gender Ratio of LIXIL Employees in Japan and Overseas

*The number of employees working at Japanese workplaces and overseas

workplaces.

In order to achieve our Management Vision of “becoming a global leader in the living and housing solutions industry”, LIXIL Group

believes it is necessary to create a corporate culture that is superior to our global competitors and to build a human resources

platform that increases the vitality of our employees.

For this reason, we have defined the corporate culture pursued by the LIXIL Group as “Meritocracy”, “Respect Diversity” and

“Equal Opportunity”, and promoted the development of human resource platforms and operational improvements with the aim of

establishing an advantage over our competitors in the field of human resources.

49

See here for more details on LIXIL

VALUES（http://www.lixil-group.co.jp/e/about/governance

/default.htm）

Composition of LIXIL Workforce by Employment Contract and Gender

Gender LIXIL Group Total Ratio

LIXIL Corporation

Employees in Japan Permanent

employees*1

Male 16,526 12,554 34.8％

Female 4,882 3,833 10.3％

Total 21,408 16,387 45.0％

Non-permanent

employees*2

Male 2,512 798 5.3％

Female 7,442 2,274 15.7％

Total 9,954 3,072 20.9％

Japan total 31,362 19,459 66.0％

Employees overseas Male 11,479 24.1％

Female 4,700 9.9％

Total 16,179 34.0％

Total employees Male 30,517 64.2％

Female 17,024 35.8％

Total 47,541 100.0％

*1 Permanent employees: Employees hired on labor contracts with no fixed period.

*2 Non-permanent employees: Employees hired on labor contracts with a fixed period.

Changes in the Number of Employees

Number of Newly Hired Employees

FY2011 FY2012

Japan

(new graduates*)

Overseas Japan

(new graduates*)

Overseas

LIXIL

Corporation

LIXIL

Corporation

Permanent 492 （319） 186 （167） 3,591 452（325） 237（207） 3,578

Non-permanent 2,714 383 2,517 758

Subtotal 3,206 569 2,969 995

Total 6,797 6,547

*“New graduates” refers to employees who graduated from high school or university in March and joined the company in April of the same year.

50


Number of Employees Leaving LIXIL

FY2011 FY2012

Japan Overseas Japan Overseas

LIXIL

Corporation

LIXIL

Corporation

Permanent 1,148 848 3,421 2,024 1,611 3,716

Non-permanent 658 2,393 521

Subtotal 1,806 848 4,417 2,132

Total 5,227 8,133

*Data was not collected on the number of non-permanent employees leaving LIXIL Corporation in FY2011.

Please See　here for "Supplementary Data Book"from the site here.

（http://www.lixil-group.co.jp/e/ir/library/annual.htm）

Scope and Targets of Data Collection

A total of 44 companies and groups have been targeted for reporting, including LIXIL Group Corporation, nine subsidiaries of LIXIL Group

Corporation*1, and major LIXIL subsidiaries (8 Japan-based companies*2 and 26 overseas-based companies and groups*3).

The targeted employees are the 47,541 employees (37,587 permanent employees) directly employed by the above organizations (excluding

officers). We intend to expand the scope of organizations targeted for reporting.

*1　LIXIL Corporation, LIXIL VIVA CORPORATION, Kawashima Selkon Textiles Co., Ltd., LIXIL Housing Institute, HIVIC CO., LTD., JIO

Corporation, LIXIL REALTY, Corp., CLASSIS Corporation and LIXIL Group Finance Corporation

*2　LIXIL Total Service Corporation, Asahi Tostem Exterior Building Materials Co., Ltd., LIXIL SUZUKI SHUTTER CORPORATION, JAPAN

HOME SHIELD CORPORATION, LIXIL Online Corporation, LIXIL ENERGY CO., Ltd., LIXIL RENEWAL Corporation and LIXIL INFORMATION

SYSTEMS CORPORATION

*3　Nine countries and regions, including A-S (China) Co., Ltd., American Standard Asia Pacific, TOSTEM THAI Co., Ltd. and LIXIL INAX

VIETNAM Corporation. Excludes The Permasteelisa Group.

Data Collation Methods and Period

In order to avoid duplication of employees on temporary assignments between Group companies, data has been collated using the registrations

of employees at each company.

Information on the number of employees using systems has been collected based on usage between April 1 and March 31 the following year.

Data on the number of employees and employees’ ages are recorded as of March 31, 2013 in the case of employees based in Japan and May 31

in the case of employees based overseas.

The scope of reporting differs from item to item in accordance with the characteristics of some countries and regions, and this is clearly stated

in each case.

51

http://www.lixil-group.co.jp/e/ir/library/annual.htm

LIXIL Group believes it is important for our employees to communicate openly with an awareness of the issues, and to continue

trying to adapt and take on new challenges. For this reason, we actively promote internal communication within the Group.

In December 2012, the LIXIL Sunrise Survey (a survey of employee awareness) was carried out at LIXIL Corporation and 16 LIXIL

Group operating companies and subsidiaries. This was the first survey since LIXIL’s merger and 60 questions were set with the

aim of measuring employees’ understanding of management strategy and employee satisfaction. Answers were received from

21,556 employees (23,592 employees were targeted: response rate of 91.4%). The aims of the survey were to check the “level of

understanding of the executives’ top vision”, the “level of awareness of the corporate culture LIXIL is pursuing (respect

diversity, equal opportunities and meritocracy)”, the “extent to which LIXIL VALUES (shared values) are put into practice” and

the “level of engagement” (links between employees and the company) and to use this as a reference point for future human

resources policies and systems.

In terms of the survey results, we performed relatively well on LIXIL VALUES such as “deliver on commitments” and “integrity

and fairness”. However, we performed relatively poorly on “human resource training and education opportunities” and

“establishing a work-life balance and taking paid leave”. Areas in which we scored poorly will be tackled by the Personnel Division

as priority challenges and we have already launched reforms to our internal systems to promote a better corporate culture.

Concerning the promotion of human resource training and education, we have held leadership training with the aim of identifying

next-generation leaders in each age group at an early stage, and developing their potential. To encourage employees to take paid

leave, we have launched active reforms to the system, including promotion of the “easy leave” system (3 days per year), and the

introduction of a memorial leave system (2 days per year), and established a system for employees’ opinions to be reflected in the

operation of the company.

We have compiled a list to allow us to compare the average score for each question across the company and the average score

at each department. We have given feedback to all surveyed employees, held a series of discussions on the results and

challenges facing each department, and used the results to create action plans.

See here for more details on LIXIL VALUES（http://www.lixil-group.co.jp/e/about/governance/default.htm）

52


With the aim of fostering a sense of unity at LIXIL Corporation through exchange with our top executives, from February 2013 to

April 2013 we held eight “One LIXIL Look’n Talk in LIXPO2013”* sessions throughout Japan, attended by the executives and

the employees. In total 2,641 employees took part. At the events, an interactive session was held at which the employees were

able to look, touch and try out new LIXIL products. This was followed by a talk session at which company presidents, including the

CEO, took to the stage to answer a variety of questions from the employees and talk about their own personal experiences. The

events gave a rare glimpse of the personalities of our top executives. The sessions were transmitted on the company intranet for

the benefit of employees unable to attend in person, and the events were used as a way of invigorating the organization beyond

the barriers of organization and position, and to raise awareness of our efforts to promote a more open organization.

*1 The events were held after LIXPO 2013 events at which new products were announced to customers.

Area Schedule Venue Number of Participants

Hokkaido February 5 (Tuesday) Sapporo Convention Center 322

Shikoku February 27 (Wednesday) Sun Messe Kagawa 203

Kyushu March 6 (Wednesday) Fukuoka Convention Center 172

Chugoku March 13 (Wednesday) Fukuyama Big Rose 246

Tohoku March 20 (Wednesday and national holiday) Yume Messe Miyagi 231

Tokyo March 30 (Saturday) Tokyo Big Sight 489

Chubu April 5 (Friday) Nagoya International Exhibition Hall 519

Kansai April 10 (Wednesday) Intex Osaka 459

53

▲Company newsletter “LINK” ▲E-mail bulletin “LIXIL　Monthly”

Group activities, news and topics are communicated internally via e-mail bulletins and booklets as a ways of helping our

employees learn more about LIXIL Group. The e-mail bulletins include “LIXIL Today” (sent daily) and a monthly bulletin “LIXIL

Monthly”.“LIXIL Today” provides timely information about other workplaces and businesses, such as the opening of new

showrooms and opening ceremonies at new factories, etc., whereas “LIXIL Monthly” provides information aimed at increasing

understanding of the LIXIL brand, culture and organization. Company newsletter Rinku is published quarterly as a booklet.“LINK”

is used to communicate Group trends and to pass on messages from the CEO for the benefit of employees without regular

access to the intranet, such as production line workers. We also try to encourage our employees to take the company newsletter

home with them as a way of communicating with family members about LIXIL activities and our workplace environment.

In FY2013, the April edition focused on increasing awareness of the brand within the company as well as providing updates on

recovery efforts at our factories and offices in the Tohoku Region. In addition, special intranet websites have been set up for

LIXIL Group activities to support the recovery from the Great East Japan Earthquake and the promotion of diversity. These

websites have been used to share information at the company on activities carried out by voluntary groups, such as the LIXIL

Women’s Network.

After successful implementation in FY2012, the CEO once again held round-table sessions both in Japan and overseas to listen

to the suggestions and honest opinions of the employees. He has also actively sought opportunities to hold meetings with the

employees during his visits to factories, branches and offices for tours and various events. In FY2011, the total number of

meetings held was ten, and in FY2012 a total of 27 meetings were held.

54

1. Respect Diversity

We will welcome differences among genders, ages, races, cultures, nationalities,

beliefs, and backgrounds. Energy and creativity generated by open and passionate

discussion can be used as a source of competitiveness.

2. Provide Equal Opportunity

We will provide equal opportunities and occasions to anyone that tries to

demonstrate a positive and proactive attitude, regardless of background.

3. Implement Meritocracy

We will fairly evaluate how much one puts “LIXIL VALUES” into practice and how

much one performs.

LIXIL Group has made a "LIXIL Diversity Declaration" and promised to promote diversity among all employees. As we seek to

achieve true globalization and increase the strength of the Group, it is essential that we build a corporate culture that possesses

creativity and energy. At LIXIL Group, we promote diversity across the entire Group with the aim of achieving “respect for

diversity”, “equal opportunities” and a “meritocracy”.

As part of our corporate culture, LIXIL Corporation aims to be a company that utilizes the energy and innovation generated by

diversity for the benefit of our business. We also aim to create an environment where people are not content with the status quo,

where we continuously set and clear self-imposed targets to produce results, and where this is fairly recognized.

In order to achieve this corporate culture, we have made a Diversity Declaration and promise to carry out the

following.

Implement Human Resources Measures

We will increase the ratio of talented ”Diverse Talents” among the newly promoted managers.

We will increase the ratio of talented ”Diverse Talents” among the newly hired employees.

We will establish teams and task forces with diversity in order to create the opportunity to develop their talents.

1.

Accelerate Human Resources Development

The leadership development programs should include a higher ratio of ”Diverse Talents”.

2.

Improve the Environment

To promote Work-Life-Flexibility*and performance by ”Diverse Talents”,we will establish programs such as child-care.

3.

Promote Our Corporate Culture

LIXIL Women’s Network will be established.

The president and the management team will lead ”Diversity Dialogue” to discuss diversity issues.

4.

*Work-Life-Flexibility: Policy of aiming to be flexible about work to allow achieve continuous high performance during a person’s

life stages.

55

At LIXIL Corporation, we believe that it is essential for our female employees to play active roles as we promote diversity. In order

to encourage more active roles by women, we have established the Diversity Promotion Group at the Personnel & General Affairs

Division LIXIL Corporation. LIXIL actively encourages its female employees. For example, in FY2011 there were 22 female

managers at LIXIL Corporation, but in FY2012 this had risen to 47.

Number and ratio of female managers - LIXIL Group

FY2012

Japan Overseas Total

LIXIL Corporation

Female managers 77 47 165 242

Total managers 2.847 2.189 561 3,408

Ratio 2.7％ 2.1％ 29.4％ 7.1％

*“Managers” are defined as follows: in Japan - “managers” recognized by the grading system; overseas - managers of “section chief” level of higher.

As part of our attempts to support work-life balance, at LIXIL Corporation we aim to achieve “flexible ways of working” so that

our employees can maintain high performance levels as their lifestyles change. In September 2012, we launched the WLF (Work

Life Flexibility) Committee, which includes members of the LIXIL Corporation Labor Union. We have held discussions between

labor and management and in September 2013 we introduced the following new systems.

See here for more details on measures supporting work-life balance（see P61）

Aims Changes to systems

Encourage employees to take paid leave Introduced “Memorial Leave” system

Encouraged employees to use “easy leave”

Rehire employees who have left the company for childbirth,

childcare or nursing care

Introduced “Career Return” system

Childcare support Extended childcare leave from a maximum of 18 months old

to a maximum of 3 years old

Introduced later work start times/earlier finishing times

Trial introduction of supplementary payment for extended

childcare at nurseries

Support for nursing Provided supplementary payment equivalent to social

insurance premiums during leave periods

Accumulated annual leave (unused paid leave) used to cover

non-attendance for bonus calculation purposes

*Applied at LIXIL Corporation and some operating companies and subsidiaries.

56

There are 233 employees working at LIXIL Corporation with disabilities, and the points calculation-based employment rate* is

1.90%. From the perspective of creating employment opportunities, we also work hard to create workplace environments in which

everyone can enjoy active work and promote job opportunities according to the characteristics of employees with disabilities in a

wide variety of fields, including research and development, production and our many offices.

In FY2013, we extended these opportunities and made greater efforts promoted the recruitment of employees with disabilities.

Number and ratio of employees with disabilities - LIXIL Group in Japan Only

FY2011 FY2012

Japan Japan

LIXIL Corporation LIXIL Corporation

Number of employees 433 229 450 233

Ratio of employees with

disabilities (points calculation)

1.78％ 1.89％ 1.83％ 1.90％

*Employment rate based on the Disabilities Employment Rate System set out by the Ministry of Health, Labour and Welfare of Japan

At LIXIL Corporation, we operate a system to allow rehiring of employees who have reached retirement age. We encourage

rehiring of employees aged 60 and older who wish to continue working so that they can make full use of their abundant

experience, skills and know-how and pass on their skills to the junior employees.

Ratio of rehiring employees who reach retirement age - LIXIL Group

FY2011 FY2012

Japan Overseas Total Japan Overseas Total

LIXIL

Corporation

LIXIL

Corporation

Number of

employees

reaching

retirement age

264 206 46 310 212 178 41 253

Number of

employees rehired

136 97 1 137 130 103 3 133

Rehiring ratio 51.5％ 47.1％ 2.2％ 44.2％ 61.3％ 57.9％ 7.3％ 52.6％

57

After the LIXIL Corporation merger in April 2011, our

production departments were divided into the Metal and

Architectural Materials Company and the Kitchen & Plumbing

Fixtures Company, but in April 2013 these organizations were

merged into the Products Company. Up until now, each

company has built its own individual occupational health and

safety systems (unique systems based on OSHMS and

OHSAS), but these were merged on October 1, 2013 and

in-house developments were implemented. At each of our

seven integrated factories in Japan, we have held two

“Practical Seminars” in order to check and inspect real

conditions at our factories, and we have shared information

and developed measures horizontally in order to eliminate all

risk factors in machinery and equipment.

In the unlikely event that an accident does occur, the safety

managers at each factory carry out a thorough investigation of

the causes and take appropriate countermeasures, and this

information is shared among all factories within two business

days of an accident occurring. The shared information is used

to check for similar risks of disasters or accidents at each

factory, and efforts are made to prevent recurrence across all

factories.

Ratio of accidents by type of work: LIXIL Corporation

Japan-based production departments

*Short-time breakdowns: simple recovery processes from a state of

equipment suspension caused by temporary trouble (not malfunctions) or

trial operation without production

At LIXIL Group, the Group Charter of Corporate Behavior states that we will “Prioritize safety for all workers and build a

workplace with no work accidents where it is easy to work, and promote health in mind and body”, and we promote measures to

protect the health and safety of our employees.

LIXIL Group has introduced an occupational health and safety management system and actively promotes measures to prevent

workplace disasters and accidents. Each workplace has established a Health and Safety Committee to share information and hold

discussions on occupational health and safety, and to promote management based on a PDCA cycle.

Ratio of work accidents: Japanese workplaces -LIXIL Group

FY2011 FY2012

Japan Japan

LIXIL Corporation LIXIL Corporation

Number of employees killed

or injured in work accidents

89 17 85 15

Ratio of work accidents 1.30% 0.49% 1.04% 0.35%

Scope of data: LIXIL Corporation, four subsidiaries and seven Group operating companies

*Figures for LIXIL Corporation also include employees not directly hired by the company.

58

Health and Safety Management System Diagram (The example of one factory)

At LIXIL Corporation, we actively support our employees’ health in partnership with the LIXIL Corporation Health Insurance

Society. We promote measures alongside the Health Insurance Society based on the following basic approach to maintaining and

promoting health.

Raise awareness of the importance of health among each and every employee and promote an attitude of maintaining your own

health

Provide opportunities for as many people as possible to prevent disease and promote good health

Develop comfortable workplace environments that take into consideration the health of each and every employee

In terms of specific measures, we have held regular annual health checks for all employees. Any employees identified as having a

high risk of developing diabetes or high blood pressure have been encouraged by the Personnel Department and Health Insurance

Society to undergo further examination at a medical institution to prevent aggravation of their condition. In FY2012, 84 employees

were given recommendations to see specialists and we have steadily succeeded in creating a route to further examinations at

medical institutions. In FY2013, we plan to promote activities that expand the scope of targeted employees.

For employees who work long hours, we have steadily promoted check-ups by industrial physicians and worked hard to ensure

physical or mental health problems are not caused. In addition, the Health Insurance Society encourages insured employees and

their dependents to undergo comprehensive health checks, uterine and breast cancer screening, and dental check-ups, and pays

supplements towards the cost of check-ups. In FY2012, special health advice was given to 883 employees aged 40 and over.

The number of people who received

FY2011 FY2012

Comprehensive health check received 3,527 6,426

Uterine and breast cancer screening received 629 1,082

Dental check-ups received 161 285

Special health advice received 757 883

We have introduced a “Health Points System” to encourage our employees to be active in promoting their health. The system

allows employees to obtain points by taking on challenges such as walking, dieting or giving up smoking, and to exchange a certain

number of points for prizes. In FY2012, 5,504 employees and family members took part.

59

The number of people who participated

FY2011 FY2012

Health points system 2,760 5,504

LIXIL Corporation believes that it is important to implement mental health initiatives as part of our health promotion activities. We

offer mental health seminars and stress checks at each workplace, and encourage each and every employee to obtain correct

knowledge of mental health and to prevent mental health problems by understanding their own situation. We also implement

mental health management for managers, as a pillar of line management care, and work to build a workplace environment that

allows early identification and early treatment of any problems.

The number of people who participated

FY 2011 FY 2012

Mental health seminars 187(7 sessions) 204(8 sessions)

Stress check participants 2,867 3,731

Mental health management education for managers 111 129

Employees on leave for mental illness are supported in their return to work under the Workplace Return Program. The program is

designed to give tailored support to employees on leave, including support (follow up) after they have returned to work. We have

appointed industrial physicians who specialize in mental health at five bases throughout Japan, and established a system that

allows employees to return gradually to work. We encourage employees to ask questions about their own mental health

management.

60

LIXIL Corporation promotes the development of an environment that allows our employees to enjoy both work and life as we go

about building a workplace environment in which each and every employee is able to display his or her full potential and continue

to enjoy work.

LIXIL Corporation has developed systems to support our employees’ work-life balance, no matter what life throws at them.

Major systems for supporting work-life balance

Name of system Details

Leave Easy leave 3 days per year (can be taken after weekends or national holidays)

Memorial leave 2 days per year

Long continuous service leave Leave and a present are given to employees after long periods of

continuous service (10 years, 20 years and 30 years)

Childbirth Childbirth leave 6 weeks before birth and 8 weeks after birth (childbirth allowance paid

through health insurance)

Spouse childbirth leave 3 days per year (can be split)

Childcare Childcare leave Up to the time the child is 3 years old (payment of childcare leave

supplement from employment insurance up until the child is 18 months old)

Reduced working hours Employees caring for children of elementary school age or younger can

shorten working hours by one hour per day or two hours per day

Later work start times/ earlier

finishing times

Employees caring for children of elementary school age or younger can

start/finish work 30 minutes/1 hour earlier or later

Supplementary payments for

extended childcare at nurseries

Employees caring for children yet to join elementary school who require

extended childcare at nurseries for work purposes are given supplementary

payments

Child nursing leave 5 days per year for each child younger than elementary school age

(maximum of ten days for employees with two or more children of eligible

age)

Nursing Nursing leave When a family member requires nursing, up to a total of 93 days may be

granted for each condition requiring care (can be split)

Reduced working hours Working hours can be reduced by one hour or two hours per day

Monthly salary supplement Supplementary payment equivalent to social insurance premiums during

periods of leave

Bonus supplement Accumulated annual leave (unused paid leave) treated as worked days for

bonus calculation purposes to cover for days missed

Nursing leave 5 days per year per family member requiring nursing (maximum of 10 days

when two or more family members are eligible)

*Operated at LIXIL Corporation and some operating companies and subsidiaries.

61

Usage of Various Systems -LIXIL Group

Usage of childbirth leave system

FY2011 FY2012

Japan Overseas Total Japan Overseas Total

LIXIL

Corporation

LIXIL

Corporation

Employees

obtaining leave

228 169 316 544 212 157 360 572

Return to work

ratio

86.8％ 99.4％ 97.2％ 92.8％ 84.9％ 100.0％ 94.7％ 91.1％

Usage of childcare leave system

FY2011

Japan Overseas

LIXIL Corporation

Male Female Male Female Male Female

Number of employees taking

childcare leave

5 220 4 168 83 192

Return to work ratio* 83.3％ 99.4％ 100.0％ 100.0％－－

FY2012

Japan Overseas

LIXIL Corporation



childcare leave

1 251 1 199 80 245

Return to work ratio* － 93.2％－ 95.4％－－

*Return to work ratio = Number of employees returning to work ÷ Number of employees scheduled to return to work in the current fiscal year (%)

Note: In FY2012, the return to work ratio for male employees in Japan is not given because no male employees were scheduled to return to work under

the system.

Note: Overseas, only the number of employees taking leave is listed because childcare leave systems differ by base and country.

62

Usage of nursing leave system

FY2011

Japan Overseas

LIXIL Corporation



nursing leave

2 8 1 8 0 4

Return to work ratio* 100.0％ 100.0％ 100.0％ 100.0％－－

FY2012

Japan Overseas

LIXIL Corporation



childcare leave

2 11 1 9 2 10

Return to work ratio* 100.0％ 100.0％ - 100.0％－－

*Return to work ratio = Number of employees returning to work ÷ Number of employees scheduled to return to work in the current fiscal year (%)

Note: In FY2012, the return to work ratio for male employees at LIXIL Corporation is not given because no male employees were scheduled to return to

work under the system.

Note: Overseas, only the number of employees taking leave is listed because nursing leave systems differ by base and country.

LIXIL Corporation promotes balanced working hours and encourages efficient and productive working methods. In an attempt to

reduce overtime work, Wednesday has been designated “no overtime day” and employees are encourage to leave work at the

appointed time each day as a general rule. In addition, a prior application system for overtime has been introduced and efforts are

made to allow employees to make conscious reductions in overtime.

The Personnel & General Affairs Division works in partnership with each employee’s affiliated department to follow up on any

employees who work excessively long hours.

For more details see Occupational Health and Safety（see P59）

To encourage our employees to take paid leave, we have introduced the “easy leave” system, which allows employees to take

three consecutive days of paid leave once per year, and the “memorial leave” system.

Overtime work - average hours of overtime worked per month -LIXIL Group

FY2011 FY2012

Japan Overseas Overall

average


averageLIXIL

Corporation

LIXIL

Corporation

Hours of overtime

per month per

employee

19.2 19.7 29.2 23.5 19.3 19.9 24.8 21.7

63

Usage of paid leave - average number of days of paid leave taken per employee

FY2011 FY2012


average


averageLIXIL

Corporation

LIXIL

Corporation

Days per month

per employee

5.3 5.9 6.0 5.6 6.2 7.1 7.2 6.7

*Average figures include employees not working full-time.

LIXIL Corporation works in partnership with our Labor Union, Health Insurance Society and the LIXIL Smile Club* to improve our

employees’ lifestyles, support different life stages, and develop a welfare program that provides a platform for mutual assistance.

Specifically, we implement group insurance, property accumulation, employee stock holding and pension systems. We also operate

the “long continuous service system”, which provides leave and congratulatory payments after 10, 20 and 30 years of

continuous service and the “congratulations and condolences payment system”, which makes payments to our employees upon

certain life events, such as marriage, the birth of a child or a child’s entry to school or university. We also operate a variety of

employee consultation services.

*LIXIL Smile Club: A benefit club that supports the welfare of labor union members and their families

Main Consulting Services －LIXIL Corporation

Details of Service Organization

Consulting service for sexual harassment and power harassment Personnel Department, Personnel & General Affairs

Division

Consultations about workplace concerns LIXIL Labor Union

Legal consultations LIXIL Labor Union

Consumer finance consultations LIXIL Labor Union

Legal, tax and health consultations LIXIL Smile Club/ General Affairs Section at each

workplace

Loans and savings consultations LIXIL Smile Club

Health insurance consultations LIXIL Smile Club

Concerns about nursing, health, etiquette, customs or human

relations

LIXIL Smile Club/ General Affairs Section at each

workplace

64

LIXIL Corporation's policy is to put the “LIXIL VALUE（shared

values）” into practice and foster human resources brimming

with the desire to take on challenges.

Specific targets are as follows:

Foster leaders capable of taking responsibility for

globalized management

1.

Promote the spread of “LIXIL VALUE” and build a new

culture

2.

The tackled themes can be seen on the right.

See here for the LIXIL VALUES（http://www.lixil-

group.co.jp/e/about/governance/default.htm）

At LIXIL Corporation, in order to pursue our target of “meritocracy” and assess work and processes fairly, we have established

targets for all employees and operate open systems, including the participation of employees in each stage of the assessment

process, and the provision of thorough feedback on results through discussions with bosses.

Aims of Feedback

Increase employees’ understanding of assessments and maintain fairness by providing thorough feedback on assessments1.

Develop employees’ abilities by looking back on their activities over the previous year and sharing with them expectations

for the future

2.

65


Merit-rating Flow

LIXIL Corporation's traning systems can be divided into two main categories. Firstly, we develop the basic skills needed by all

employees across our departments, and secondly we offer training in the specialist skills unique to each company. These training

systems are overseen by a company-wide training committee, which promotes activities, raises awareness of challenges, and

seeks solutions.

LIXIL Corporation works hard to foster the next generation of leaders capable of leading the company to the future. In 2011, we

launched the Executive Leadership Training (ELT) system for general managers with the aim of strengthening the leadership skills

of executive management candidates. During the program, executive candidates (a total of 66 candidates in 2011) trained over a

period of eight months from a variety of stimulating perspectives, including workshops at specialist facilities and a workshop held

at the Great Wall of China in Beijing. Candidates studied leadership, business strategy and global business. They gained a genuine

sense of the expectations held for them by the executive team, including the President, and they tackled the program with

passion and enthusiasm. In FY2013, in addition to the ELT system we launched the Senior Leadership Training (SLT) program for

middle-ranking employees and the Junior Leadership Training (JLT) program for younger employees to create opportunities for

the employees to think about their own leadership potential at an earlier stage.

We have also set about implementing leadership training to encourage global roles, including sessions for leadership candidates

selected from among employees completing the ELT course and from overseas Group companies. This included sending

employees to overseas business schools and a workshop held in Italy.

66

▲ ELT training ▲ Participants at overseas business school

Types and usage of seminars and training support systems

Type of training Outline Number of

participants

New employee training Basic training for all employees upon joining the company 3,912

Training by job grade Training for each job rank and grade to develop the

necessary skills and abilities

3,390

Executive Leadership Training (ELT)* Strengthening leadership among executive candidates 66

Management training Training for employees promoted to management positions 378

Departmental training Training at each department to develop the required skills

and abilities, including product development, production and

sales

15,317

Other Skills acquisition, etc. Unique training by industry and job type, including the

acquisition of public qualifications

3,349

*LIXIL Corporation only

In addition, Japan-based companies also recommend distance learning and have introduced a system to pay for some of the costs

of employees who complete distance learning courses.

As part of our efforts to support our employees’ career development, LIXIL Corporation has introduced a system that allows

younger employees to obtain an MBA. The system aims to provide opportunities to obtain leadership and management skills and

an international outlook, and to foster passionate young employees who “display the passion to improve themselves and

contribute to the development of LIXIL business”. In FY2011 ten participants were recruited in-house and in FY2012 the number

of recruits was eight. The recruits are currently working towards obtaining their MBAs.

67

Significant career development systems and voluntary self-development systems at major companies

Type of system Organizations where systems have been introduced Number of

participants

In-house recruitment system LIXIL VIVA CORPORATION

American Standard (Thailand) PCL

American Standard Vietnam

PT American Standard Indonesia

LIXIL-Haier Housing Products (Qingdao) Co., Ltd.

61

FA system American Standard (Thailand) PCL


3

Job challenge American Standard Vietnam

LIXIL INAX DANANG Manufacturing Co.,Ltd

12

Overseas exchange program American Standard Vietnam

LIXIL INAX DANANG Manufacturing Co.,Ltd

6

Recommendations for obtaining qualification LIXIL Total Service Corporation

CLASSIS Corporation

LIXIL REALTY, Corp.

American Standard (Thailand) PCL

American Standard Philippines Ltd., Co.


TOSTEM HOUSING PRODUCTS (DALIAN) CO., LTD

715

MBA system LIXIL Corporation 8

Self-declaration system* Kawashima Selkon Textiles Co., Ltd.


TOSTEM THAI

936

*In FY2013, a self-declaration system was introduced at LIXIL Corporation.

68

LIXIL Group believes that building a fair and responsible relationship of trust between labor and management is essential as we

seek to achieve the development of the company and stability and improvements in the lives of our employees.

At LIXIL Corporation, along with the five-company merger of April 2011 (Tostem Corporation, Inax Corporation, Shin Nikkei

Company, Ltd., Toyo Exterior Co., Ltd. and Sun Wave Corporation), the labor unions of the former companies were also merged to

create the LIXIL Labor Union (membership restricted to permanent employees at Japanese workplaces). LIXIL Labor Union has

adopted a union shop system, and 14,142 permanent employees based in Japan (86.3% of the total) are union members (as of

March 31, 2013). Labor management meetings and collective bargaining meetings are held regularly to give an opportunity for labor

management discussions, and labor and management work together to overcome challenges by sharing information on working

conditions and working environments, etc.

In FY2012, the Labor and Management Committee was formed from labor and management representatives of the former

companies to hold sufficient investigations and discussions and to make decisions on important topics, such as major revisions to

working conditions. During standardization of working conditions along with the LIXIL Corporation merger, the Labor and

Management Committee held repeated discussions to build a consensus and on March 26, 2012 all working conditions were

standardized. Operation of the integrated personnel system requires prompt sharing of accurate information, including sufficient

awareness and understanding of the new system and an appropriate response when any issues arise. Materials explaining the new

system were posted on the intranet and the controlling general affairs departments have followed up on any issues experienced

by the employees in order to achieve greater understanding of working conditions and the various systems after the merger. The

Labor Union independently created a “Union Guide”, which sets out the main points of the new system, and distributed this to all

union members. It also offers regular education sessions to union members and provides a telephone and e-mail consultation

service.

LIXIL Corporation will work to strengthen the relationship of trust built thus far so that labor and management can work together

to improve the company’s results and improve working conditions in a way that is befitting for a leading company in the housing

materials industry with sales of 1 trillion yen.

Labor Management Agreement (Extracts)

Chapter 1 General Provisions

(Article 5 Rights of the Company and the Union)

The Company and the Union shall respect working rights and management rights, and shall not hinder fair execution of said rights.

Chapter 4 Collective Bargaining

(Article 34 Principle of Collective Bargaining)

Collective bargaining shall be carried out in sincerity and good faith from a position of equality between the Company and the

Union it order to achieve the peaceful and smooth settlement of negotiated matters.

Chapter 5 Resolution of Disputes

(Article 48 Duty of Peaceful Resolution)

The Company and Union shall resolve all labor-management questions peacefully and smoothly through discussions, from a

position of mutual trust.

(Article 49 Mediation of Labor Disputes)

In the event that the Company and the Union remain unable to reach a smooth resolution to a dispute after holding discussions

and collective bargaining in good faith, an application shall be made to the Labour Relations Commission for arbitration or

mediation, and efforts shall be made to reach a peaceful resolution to said dispute through said arbitration or mediation.

69

Major Meetings for Labor-Management Discussions and Labor Union Meetings

End of year negotiations/collective bargaining on lump-sum payments

Discussion of lump sums payments only, held four times

Spring wage negotiations/ collective bargaining

Discussion of wages, lump sums payments and working conditions, held four times

Central Labor Relations Committee (nine meetings/year)

Sharing information on company policies and union activities

Central Executive Committee (ten meetings/year)

Confirms progress in union activities, examines policies, and shares information on company policies

Central Committee (nine meeting/year)

Approves union activities, and shares information on company policies

Health and Safety Committee (twelve meetings/year)

Exchanges information and examines measures at each workplace

In May 2011, the LIXIL Labor Union was established, with the labor unions of the former individual companies adopting the role of

“chapters” of the new union, and preparations were made by representatives of each chapter to merge the various unions. As a

result, in April 2012 the chapter system was abolished and a reorganized LIXIL Labor Union was inaugurated under a bloc and

branch system.

Over a four-month period between September and December 2012, the WLF (Work Life Flexibility) Committee was established as

a labor and management committee, and after holding discussions between labor and management new systems were established,

including the memorial leave system (two days per year), the career return system, and an extension to childcare leave. Operation

of these new systems was launched in April 2013.

See here for more details on support for work life balance（see P61）

Concerning the “ongoing improvements to an environment that allows systematic improvements” raised at the spring labor

negotiations of 2013, the Labor Union is currently collecting the opinions of union members and intends to examine along with the

company the establishment of a new Labor and Management Committee. The Labor Union aims to identify and meet the

increasingly diverse needs of its members.

Union Activities “Mission” for FY2013

Respect workplace opinions and collect opinions from the perspective of overall optimization – rapid information collection and

response

Build an environment in which employees can work with peace of mind – supporting health in mind and body, and creating

comfortable workplace environments

Stand up for the opinions of union members as a counterpart to company policy

Increase understanding of company policies and measures, and promote information-sharing with union members

Aim to achieve a “work life balance” that facilitates the enjoyment of life outside the company

Foster a sense of unity as a union organization

Promote improvements in the skills of officers capable of leading union activities

Social contribution activities – provide support for donations in times of disaster, etc.

70

In FY2012, LIXIL Labor Union used the opportunity provided by the establishment of a

new union system to carry out a renewal of the joint union newsletter “ALL LIXIL”

(which was published up until FY2011) under the new title “TUNE”. The new

newsletter was distributed to all union members with the aim of promoting harmony

between union members after the merger and increasing the understanding of union

members in relation to new working conditions.

The newsletter will continue to provide information on exchange events and

functions carried out by union members and to explain the new LIXIL personnel

systems. Efforts have been made to develop the content through articles with a

focus on branch activities and other new sections, with the aim of increasing the

sense of unity at LIXIL Labor Union.

LIXIL Smile Club aims to promote the overall welfare of union members and their families through mutual assistance between

union members. Membership fees and business profits are used to fund the provision of a well-developed welfare system.

Introduction of main systems

Congratulations and condolence payments – payments for marriage, births, children’s entry to school or university, condolence

payments, celebrating recovery from illness and in sympathy for housing disasters, etc.

Mutual aid and insurance – payments to the National Federation of Workers and Consumers Insurance Cooperatives, postal life

insurance and life insurance

Savings and finance – property holdings, mortgages and car financing

Other life support –important family occasions, leisure use and shopping discounts (Benefit One, My Car Support System, etc.)

71

LIXIL Group believes that the word “compliance” means more than just observing laws, internal regulations and social rules; it

also includes behaving in a moral way that considers other people’s points of view.

In order to put this form of compliance into action in a thorough way, we have enacted “Group Principles” and worked hard to

spread awareness so that all employees continue to uphold this approach. We have established a Compliance Committee at the

Group with the aim of increasing the awareness and implementation of compliance. We give advice on the construction and

operation of compliance systems at Group companies and implement measures such as the monitoring of legal compliance.

LIXIL Group provides training based on our Group Principles so that each and every employee increases his or her understanding

of compliance. Specifically, all employees are given an A4-sized and pocket-sized booklet containing the Group Principles and

asked to keep these in an accessible location. In addition, every October all workplaces are asked to read the Group Principles

aloud together and all employees are asked to make an oath that they will uphold the Group Principles. In this way we aim to

increase awareness of the content of the Group Principles.

Other initiatives include compiling case studies showing correct behavior in the many situations employees are faced with in their

day-to-day work and making these case studies available on the intranet.

LIXIL Group has established an internal reporting system with the aims of collecting information on compliance violations and

acting promptly to prevent improper or illegal behavior.

In addition to building systems that allow direct reporting to managers via the intranet, a reporting system is also operated using

external lawyers as a consultation service. Both routes protect the privacy of the reporter and are managed so as to prevent

reporters from receiving adverse treatment.

72

Through our corporate activities, LIXIL Group aims to be a useful company that is trusted by society at large. For this reason, we

collect information from our suppliers (materials suppliers and subcontractors) about compliance violations committed by LIXIL

Group. We have established a consultation service at an external legal office and we try to prevent any additional violations by

collecting information and acting appropriately.

See here for more information (http://www.lixil.co.jp/corporate/csr/client/compliance_info.htm)

73

http://www.lixil.co.jp/corporate/csr/client/compliance_info.htm

LIXIL Group regards all uncertain factors with the potential to hinder the achievement of our management goals as risks. For this

reason, we have built a risk management system at each Group company. In order to promote this system we have established

the LIXIL Group Risk Management Committee chaired by the LIXIL Group President as the highest decision-making body. Each

Group company is managed under the same system. We have established a controlling department at LIXIL Group Head Office

with the aim of carrying out centralized management of risk across the Group, and we have established risk management offices

at each company. When major risks arise, the LIXIL Group Risk Management Council handles the situation and provides

instructions.

In addition to establishing a controlling department at the Head Office, LIXIL has set up risk management offices at our internal

companies - LIXIL Japan Company, Global Company and Products Company - and we have built a system capable of providing a

carefully-tailored response. Our Global Company supervises individual overseas regions and has overall control of risk

management activities at our overseas offices. Head Office department risks are managed horizontally through 20 risk

management groups set up at each line department with responsibility for handling risks at Head Office. As part of our risk

management promotion activities, risks are selected on a yearly basis and assessments are carried out (assessments of impact,

frequency and any weaknesses in prevention and follow-up measures), targets are set, measures are proposed and an

implementation schedule is formulated. PDCA management is carried out quarterly with the aim of implementing measures, making

assessment and giving feedback.

In the light of the Great East Japan Earthquake, the flooding in Thailand, and the increased risk of future natural disasters, we will

continue to promote the formulation and development of business continuity plans across all Group companies.

74

Reference: Annual Report “Latest Annual Report”（http://www.lixil-group.co.jp/e/ir/library/annual.htm）

75

http://www.lixil-group.co.jp/e/ir/library/annual.htm

Furthermore, in November 2005, LIS obtained Privacy Mark accreditation from the

Japan Information Processing Development Corporation (JIPDEC) as proof to our

operating companies and suppliers of its ability to provide a reliable service. As part of

its ongoing management activities, LIS later passed its biannual renewal inspection

without any problems, and continues to maintain Privacy Mark accreditation. Privacy Mark that LIS obtained

LIXIL Group places particular importance on the protection of information assets as part of our risk management, and with this

goal in mind we have prescribed the Information Security Management Rules and promoted proper information management.

We have centralized our information systems administration and management functions at the IT Promotion Division and Group

company LIXIL INFORMATION SYSTEMS CORPORATION (“LIS”).

LIXIL Group possesses a diverse range of businesses and companies. We carry out self-assessments on the information security

challenges we are likely to face as part of our information management using check-sheets based on the Information Security

Management System (ISMS), and we use this as the basis for implementing improvement activities. We have built a management

system that includes monitoring by the IT Promotion Division and LIS.

In the unlikely event that a problem arises, the IT Promotion Division, LIS, the Risk Management Promotion Division, and the

general affairs departments at each business and company work together to minimize the damage, carry out a company-wide

inspection to identify the cause of the problem, and promote improvements to ensure the same problem does not happen again.

In order to protect information assets, we have implemented technological measures, such as security measures on our networks

and automatic updates for anti-virus software. In order to prevent leaks of information from the iPads distributed to our sales

representatives for use outside the company, we have developed a system for the remote deletion of data contained in iPads in

order to prepare for any possible leaks.

Furthermore, in order to ensure full compliance by our employees with information management rules, all employees are obliged to

undergo test-based training through an annual e-learning program and to sign a “Pledge to Uphold Information Security

Management Rules”. In FY2012, these measures were successfully implemented for 100% of eligible employees.

LIXIL Group believes that the protection of personal information is an important responsibility, and we have disclosed our

philosophy and policies in relation to the protection of personal information under the Privacy Policy on our website. By adhering

to this policy and our internal rules, we seek to ensure that all our employees handle personal information safely and appropriately.

76

LIXIL’s Group Charter of Corporate Behavior, which acts as a code of conduct for LIXIL Group companies, sets out that “The

Group protects and makes appropriate use of its intellectual property as well as respects the intellectual property rights of

others” and LIXIL Corporation has set out its Intellectual Property Management Rules based on this goal. The aim of the rules is

to “Contribute to the development of the business and improvements in results at the same time as encouraging creative work at

the company and preventing infringements of the intellectual property rights of third parties” and these rules form the basis for all

intellectual property activities at LIXIL Corporation.

LIXIL Corporation has established an Intellectual Property Division at its Head Office corporate divisions and appointed specialist

organizations (intellectual property staff) for the protection of intellectual property rights at the Products Company’s strategic

business units. We hold a twice-yearly regular meeting and work to promote company-wide intellectual property activities in our

day-to-day work in partnership with the Intellectual Property Division.

77

LIXIL Corporation investigates whether there is prior art in the inventions created at its development departments and then

makes a judgment on whether there is value in submitting a patent application from a business point of view. This process has

been set out under the Internal Rules on Patent Applications. We aim to create high-quality intellectual property rights through

the thorough operation of these rules.

If the intellectual property rights of third parties are infringed during the process of carrying out our business, there is a risk of

lawsuits from third parties resulting in the suspension of sales or claims for compensation for damages. In order to prevent this

risk, LIXIL Corporation has set out internal rules for carrying out surveys and investigating third party intellectual property rights

when starting out a new business, and we implement these rules thoroughly.

In addition to the thorough operation of rules, as part of the intellectual property activities described in the above sections

(“Promoting the Acquisition of Intellectual Property Rights” and “Preventing the Infringement of Our Intellectual Property Rights

by Third Parties”), LIXIL Corporation actively pursues education that improves the intellectual property knowledge and skills of

employees whose work involves intellectual property. The curriculum focuses on “patents and design” in the case of developers

and researchers, and on “trademarks” in the case of product planning staff. Training is also given to newly-hired employees.

78

We the LIXIL Group believe in achieving harmony between how humankind lives and the earth that we live on. We will

conscientiously apply our environmental awareness across the entirety of what we do: what, how, and for whom we create a

better living setting.

We the LIXIL Group are committed to achieving this vision.We will continuously improve our environmental management systems,

we will employ ecologically responsible practices throughout our operations, and we will embrace vigorous communication with all

of our direct and potential stakeholders.

Each of us, for our customers, undertakes to provide products and services that reflect and optimize the full bounty of nature.

We will fully evaluate and explore, along with our customers, what should be the appropriate living setting for the times ahead.

Each of us, in the regular course of business, accepts a duty to uphold environmental regulations and prevent pollution. We will

pursue actions to reduce carbon emission, enhance recycling of resources, and promote harmonious coexistence with nature.

Each of us, as part of a given area or society, seeks a deeper mutual understanding with the individual, civic, nongovernmental

and nonprofit entities that are among us. We will, by emphasizing cooperation and dialogue, advance together our own unique

activities for preserving the environment.

79

We the LIXIL Group seek by 2050 the net zero balance between a full, bountiful way of living and an acceptable burden on the

earth’s environment, leading the world in the housing and living amenities industry.

We will introduce technical innovations that will achieve net zero balance energy use in residences and buildings as

a total provider of housing and living requirements, and contribute to global energy conservation and CO2 reduction.

As a global leader in our industry, for the products that we offer to all peoples of the world, we must be relentless in reducing the

direct or indirect environmental burden of all our business activities. And we will also implement activities for the preservation and

recovery of water resources and forestry ecosystems throughout the world.

80

In direct LIXIL business activities, we will focus on raising production efficiency and launching renewable forms of energy, to

reduce CO2 emissions below 2010 levels (prior to corporate integration).

Moreover, in areas that we impact indirectly, such as the procurement of raw materials and the use and disposal of products,

we will work on technical innovations for reducing, extending and conserving resources, and for the conservation and creation

of energy, insulation and passive technologies. By doing so we will help to reduce energy consumption throughout the entire

product lifecycle to below 2010 levels (prior to corporate integration).

81

We will make widespread a product line that reduces energy

consumption per residence or building to a zero-sum balance,

through control technologies that enable a comfortable living

environment.

Residences and buildings in the future will demand high-performance

insulating window sashes and doors, in tandem with other products with

enhanced energy-saving functionality, we can significantly reduce energy

consumed in housing, including air conditioning and heating energy. And by

combining this with solar power generation systems, we are offering a

product line-up that reduces overall energy consumed per residence or

building to a net of zero.

Our product line, incorporating control technologies for water

needed in daily living, greatly reduces the amount of water used

per residence or building.

Residences and buildings use vast amounts of water daily in baths, toilets,

kitchens and the like. We have a wealth of proven experience in developing

and selling toilets, baths, showers and other items with advanced water-

saving functionalities. Building even further on this base, we are committed

to a product line with even more advanced water control technologies, to

protect our precious water resources.

We will also introduce proprietary technologies related to

renewable energy, and launch new environmental projects.

To achieve a low-carbon society, we must reduce the dependency on

fossil energy sources, and work proactively on the introduction of

renewable energies, including that generated by wind and solar power, as

well as solar and geothermal heat. Furthermore, we will introduce

proprietary, state-of-the-art technologies for next-generation residential

solar power generation and wind power generation - technologies that go

beyond current technical boundaries. We will broadly popularize these

82

among the general public as new environmental projects.

We will increase the number of self-sufficient plants that adopt

environmentally-friendly ‘green’ power by introducing renewable

energy into the manufacturing process.

A great deal of the energy used at manufacturing sites to date has been

supported by fossil energy. By proactively introducing renewable energy

into our production activities, we aim to reduce to zero the amount of

fossil energy consumed. When introducing such energies, we will consider

the possibility of wind power generation, solar power generation and

geothermic power generation, taking account of regional characteristics.

By establishing power storage systems concurrently, we will also realize

stable self-sufficiency for power generation.

We will reduce the amount of virgin raw materials used in

procurement through advanced recycling systems for the disposal

of products.

Using our experience in the regeneration and reuse of waste materials

produced when renovating residences and other buildings, we will

accelerate closed recycling processes, in which products made mainly

from metals such as aluminium and copper are disposed by returning them

as is to the original production process. This will reduce the energy

required for the procurement of raw materials.

We will reduce the amount of water resources used in

manufacturing processes by establishing a recycling system for

water used in factories.

Large amounts of water of varying levels of purity are used at

manufacturing sites. At the same time, there are global concerns that

water resources will be depleted. We are working on the construction of

83

water recycling systems and more efficient use of water in manufacturing

processes to reduce the amount of water used.

We will optimize our utilization of forestry resources, preserving

forestry ecosystems by creating guidelines and developing

technologies for procurement.

We use large amounts of timber resources as materials for kitchens,

interiors and other products, thus we will develop guidelines for their

procurement and use, and ensure that we use timber from forestry

resources that are recycled in a sustainable manner. We will also develop

technologies for material modification and substitution.

We will raise the environmental literacy level of all employees

through an environment awareness training program for employees.

With the set of common values based on our Environmental Principles and

Environmental Vision, we are building a corporate culture where each

employee transcends job boundaries and takes personal action for the

benefit of society. Employees will also be proactive in regional communities

in Japan and overseas. The mark for our training program shown here

symbolizes this spirit.

We promote environmental contribution activities that lead to

cleaner water through on-site employee classes and workshops.

LIXIL conducts educational activities for children in Japan and Asian

nations to communicate the importance of water in our daily life. In Japan,

employees will visit elementary schools to communicate directly with

children in on-site classes using original teaching materials. Overseas, we

collaborate with local NPOs to provide educational support to children so

that they can understand, think and take action themselves.

84

We implement activities that will lead to the creation of beautiful

forests through preservation of local mountainous regions and

tree-planting by employees.

At LIXIL, we understand the importance of preserving our ecosystems and

the multi-faceted functions of forests including water conservation. We

work together with local NPOs and municipalities through a volunteer

program that promotes forestry awareness and conservation activities.

And at our manufacturing sites in Japan and overseas, we have a

tree-planting program where our employees and their families work

together with neighboring communities, authorities and others.

85

As the second year after the LIXIL Corporation merger, in FY2012 we established a medium-term target of 2015 for achieving the

mission set out in the LIXIL Environmental Vision announced in December 2011. In July 2012, the Environmental Management

Rules were enacted and applied to all companies including subsidiaries as we expanded the scope of applicability and strengthened

management. We have also promoted internal communication at all LIXIL Group companies to improve the environmental

awareness of all employees.

See here for the medium-term targets（see P90）

In July 2012, the LIXIL Group Environmental Strategy Committee (chaired by the President and CEO and composed of all

executive officers) was reorganization into the CSR Promotion Committee, and environmental management has been promoted at

all Group companies, including associated companies, under the new system.

Please see here for CSR Promotion Structure（see P3）

Internal Auditing

The production facilities of LIXIL Corporation's Products Company and Global Company have maintained environmental

management systems under ISO14001 and carry out internal audits of the effectiveness and legal compliance of the respective

systems. At all departments other than its production facilities, LIXIL Corporation has built unique environmental management

systems and carries out internal audits. In FY2012 there were no significant nonconforming items at either the production plants

or the other departments, and for all advisory items we carried out follow-up and improvement activities. In FY2013, we have

expanded the scope of subsidiaries at which internal auditing is carried out.

86

In January 2012, in recognition of our efforts to reduce CO2

emissions, generate renewable energy through mega-solar

plants and other initiatives, recover resources from housing

renovation waste materials and actively promote biodiversity,

the Development Bank of Japan (DBJ) granted LIXIL Group the

highest environmental rating for our “particularly progressive

environmental initiatives” and provides financing based on this

rating.

With the aim of improving the environmental literacy of all LIXIL Group employees, we endeavor to raise awareness of and share

information on the eco-friendly initiatives being implemented by workplaces and individual employees through the use of posters

and an intranet website titled Our Eco Actions on which all employees may post messages. During FY2012, the intranet website

received a total of 136,887 visits and 1,760 messages. By promoting the intranet website as a forum where our employees can

learn about the activities of LIXIL Corporation facilities in distant regions and share their thoughts and actions regarding the

environment, we aim to increase the scope of internal communication and build a corporate culture that encourages employees to

act for themselves on environmental issues. We have also worked to raise awareness by distributing a pamphlet to all employees

explaining the LIXIL Group’s Environmental Vision.

Highest Financing Rating Obtained, Resulting from Environmental Ratings System

See the following news release on the Environmental Ratings System for more details.

（http://v4.eir-parts.net/v4Contents/View.aspx?template=announcement&sid=8437&code=5938）

87

http://v4.eir-parts.net/v4Contents/View.aspx?template=announcement&sid=8437&code=5938

Under the Eco-First program, companies make a commitment to the Minister of the

Environment to promote independent environmental conservation initiatives in

relation to global warming, waste and recycling etc., with the aim of promoting

initiatives by industry-leading companies in the field of environmental conservation.

See the Eco-First System section on the Ministry of the Environment website

for more details

（http://www.env.go.jp/guide/info/eco-first/index.html）

LIXIL Corporation has committed itself to actively promoting

detailed initiatives and activities with clear targets based on the

priority themes for our environmental strategy set out in the

LIXIL Environmental Vision, and accordingly been accredited by

the Ministry of the Environment as an “Eco-First Company”.

Minister of the Environment, Hiroyuki Nagahama (left) with Representative

Executive Officer & Vice President of Lixil Corporation and Lixil Japan

Company President, Toshio Ohtake at the Eco-First Accreditation

Ceremony held on October 29, 2012

LIXIL Corporation and its subsidiaries shall implement the following activities with the goals of minimizing the consumption of

energy through our business activities, aspiring to net zero balance energy use in the residential and commercial sector, and

contributing to future improvements in people’s comfort and lifestyles.

1 As we offer products and service that reflect and optimize the full bounty of nature, we will also consider future

ways and standards of living, together with our customers

By developing and selling highly effective heat-proof sashes and doors and products with enhanced power saving and hot water

saving functions, we will contribute to reductions in CO2 emissions in the residential and commercial sector, including homes

and office buildings, etc. In addition to maximizing energy use reductions in Japan through LIXIL products, we shall promote

reductions in CO2 emissions and reduce emissions by 50% by FY2015 compared with FY2010

2 We will conduct regular business activities in a manner that will reduce carbon emissions, enhance recycling of

resources, and promote harmonious coexistence with nature

In order to promote a low-carbon society, we will work to minimize energy consumption in all business activities from

procurement through to production and disposal and by FY2020 we will reduce CO2 emissions at our Japanese offices by 60%

in comparison to FY1990.

In order to promote the recycling of resources, we will promote the commercialization of advanced sorting technology for metal

resources, such as aluminum found in disposed products, through participation in industry-academic-government joint

developments and promote technological innovations in the product manufacturing process. We will increase the ratio of

recycled raw materials used in our raw materials overall, an area where we are already an industry leader. As part of our

responsibility as a large-scale manufacturer, in FY2012 we launched an Eco-Center in the Tohoku Region for collecting

housing renovation waste to recover resources to complement the centers already opened in the Chubu and Kanto regions,

and by FY2015 we will handle an annual 5,000m3 of waste materials in the Tohoku Region.

88

http://www.env.go.jp/guide/info/eco-first/index.html

In order to promote harmonious coexistence with nature, by FY2015 we will increase to 80% the ratio of procured wood

materials accounted for by processed materials made using raw wood materials accredited by Japanese and overseas third

party accreditation organizations, materials produced through afforestation, Japanese wood materials and wood offcuts and

waste. We have contributed to reductions in forest clearing by promoting the effective use of wood resources through the

commercialization of advanced technologies for wood materials, including “bagasse board” (made using the fibrous remains of

sugarcane after it has been crushed), which we have made compatible with stringent quality specifications and spread from

Japan to other parts of Asia, “reinforced wood”, which is made through the combined molding of wood flour with resin, and

wood material modifications with aim of promoting use of underutilized materials and fast-growing trees, etc.

3 As a member of local communities and society, we will work to further mutual understanding with our stakeholders

and collaborate with them to take actions in our own, original way

We will promote “Learning from Water” activities with the aim of teaching children both in Japan and overseas the import role

of water in our lives. In Japan, our employees will travel to elementary schools to give lessons using original teaching materials

in various regions, and overseas we will work in partnership with local NPOs to support education while communicating with

local children. By 2015, we will add one new overseas bases to expand the scope of these activities.

In order to conserve biodiversity and forests in the regions where our production bases are located, we will promote “Caring for

Forests” and “Bringing Forests to Factories” projects in which we carry out environmental projects and the thinning and

planting of forests in partnership with our employees, their family members, local residents, local government and NPOs. By

FY2015 we will add one new base to expand the scope of these activities.

LIXIL Corporation will check the progress of the above initiatives and make regular public announcements of the results, in

addition to reporting to the Ministry of the Environment.

Ecofirst was established as an organization on December 9, 2009 with the aim of encouraging “Eco-First Companies” (officially accredited by

the Ministry of the Environment as leaders in the field of environmental conservation) to make steady progress in the implementation of

individual Eco-First Commitments made to the Minister of the Environment and to work in strong partnerships with other Eco-First Companies in

order to develop and strengthen leading and unique environmental conservation activities.

The organization was established a little over a year after the creation of the “Eco-First System” with the aim of promoting the development of

the system by encouraging ongoing environmental initiatives by Eco-First Companies and strong partnerships both with the environmental

authorities and between Eco-First Companies.

Ecofirst （http://www.eco1st.jp/）

89

http://www.eco1st.jp/

To achieve the mission that we set forth in our Environmental Vision, we switched from reducing carbon dioxide emissions to

reducing our energy consumption itself, setting ourselves the goal of reducing energy consumption across the entire life cycle of

our products. In other words, we will strive to reduce not only the energy consumed directly by our business activities, but also

the energy consumed indirectly across the entire spectrum of influence of our products, from procurement of raw materials for

manufacturing to the use and eventual disposal of our products by our customers. Leading up to 2015, we have set ourselves the

following three medium-term environmental targets.

Product and Service Life Cycle

Target 1

To achieve zero energy balance in the residential and commercial sector, we have set ourselves the target of

boosting our contribution to energy consumption reduction in Japan’s homes, offices and commercial buildings for

fiscal 2015 to double the level of fiscal 2010.

Energy consumption in the residential and commercial sector in Japan has risen steadily, reaching 4.837 billion GJ in 2009. Poorly

insulated houses with older fittings and equipment make up the majority of Japan’s estimated 58 million existing houses, and are

thought to account for most of the energy consumed by the residential sector.

Based on our assumption that the average energy efficiency of such houses stands at the 1990 level, we have defined the

amount of energy that could be saved by replacing the products fi tted in 1990 with the latest of our products as “energy

reduction contribution,” and use this as a measure of our efforts to reduce energy in the household sector. We aim to boost our

energy reduction contribution for fiscal 2015 to double the fiscal 2010 level through further raising product performance and

broader use of those products in the market. Our energy reduction contribution for fiscal 2011 was 3.96 million GJ, a 6% increase

from the fiscal 2010 level.

Our energy reduction contribution in fiscal 2012 was 4.09 million GJ compared to a target of 4.29 million GJ, a 110% increase

against fiscal 2010. The main reason for failing to reach the target was our failure to reach our sales target.

Moreover, since energy generation/saving products and water-conserving products continue to reduce energy consumption until

they are replaced or decommissioned, we estimate that our cumulative energy reduction contribution for the years from fiscal

2010 to fiscal 2015 will eventually reach 30 million GJ. By applying our technologies to our growing overseas products business,

we will also help to reduce energy consumption on a global scale.

90

Energy Consumption and Our Energy Reduction Contribution in Japan’s Residential and Commercial Sector

The LIXIL Group’s Energy Reduction Contribution Calculation Method

Energy reduction contribution = (annual electricity/gas/water consumption reduction derived from all energy generation/saving products and

water saving products*1 sold in Japan each year compared with 1990 products) × (energy conversion coeffi cient*2) × (number of each

product type sold) 〈For Windows〉

Window product energy reduction contribution = (reduction in annual HVAC electricity consumption through improved window insulation

compared with 1990 windows*3) × (energy conversion coeffi cient) × (number of windows sold annually (per home))

*1 Applicable products: Detached home sashes, entrance doors (excluding those for prefabs), apartment/condominium sashes, house insulation

panels, solar power systems, kitchen units, bathroom units, washstands, toilets, plumbing fi xtures, humidity control building materials

*2 Electricity, gas: heat value per unit per energy source as specifi ed in Law Concerning the Rational Use of Energy Water: conversion coeffi

cient calculated from Japan Environmental Management Association for Industry (JEMAI) Carbon Footprint Database Ver.1

*3 Annual heating and cooling load for a standard home converted into electricity using a home heat load calculation program, called SMASH

(Simplifi ed Analysis System for Housing Air Conditioning Energy) for Windows, developed by Institute for Building Environment and Energy

Conservation(IBEC)

Target 2

We will reduce our total domestic and overseas energy consumption related to procurement, manufacture/sales, and

disposal by 10% from the fi scal 2010 level by fi scal 2015.

We will implement policies to manage the energy consumed at each product life cycle stage, including improving the ratio of

recycled raw materials at the procurement stage, improving production efficiency and making greater use of renewable energy at

the production and sales stages, improving the efficiency of the transportation stage through the use of returnable packaging and

compact packaging and improving product recycling at the disposal stage. We aim to reduce our total energy consumption by 10%

from the fiscal 2010 level by fiscal 2015. Our total energy consumption for fiscal 2012 was 56.7 million GJ, a 9% reduction from

fiscal 2010.

91

Total Domestic and Overseas Electricity Consumption Breakdown of Total Energy Consumption

Total Energy Consumption Calculation Method

Energy consumption (procurement)*1 = (amount of purchased raw materials) × (energy conversion coeffi cient*2) +

(cost of purchasing parts/materials) × (energy conversion coeffi cient*3)

Energy consumption (manufacture/sales)*4 = (electricity/fuel consumption, water intake) × (energy conversion coeffi

cient*5)

Energy consumption (disposal) = (landfi lled/incinerated quantity when products are disposed) × (energy conversion

coeffi cient*2)

Energy consumption (transport) = (transported weight) × (transportation distance) × (energy conversion coeffi

cient*6)

*1 Energy consumption in procuring raw materials includes energy consumed in mining, sorting, blending, refi ning and other raw material

processing including transport to Japan. Energy consumption in manufacturing parts/materials includes energy consumed in mining, refi ning and

other raw material processing including transport to Japan and assembly/processing in Japan

*2 Conversion coeffi cient calculated from Japan Environmental Management Association for Industry (JEMAI) Carbon Footprint Database Ver.1

*3 Architectural Institute of Japan (AIJ) LCA Database (1995 Input-Output Table)

*4 Manufacture/sales energy consumption includes energy calculated by multiplying quantity of waste products processed during

manufacture/sales by energy conversion coeffi cient*2

*5 Electricity, fuel: heat value per unit per energy source as specifi ed in Law Concerning the Rational Use of Energy

Water: conversion coeffi cient calculated from Japan Environmental Management Association for Industry (JEMAI) Carbon Footprint

Database Ver.1

*6 Conversion coeffi cient calculated from unit fuel consumption and unit calorifi c value using improved tons x distance method as specifi ed in

the Law Concerning the Rational Use of Energy (Measures Pertaining to Consigners)

Scope of Data Coverage

LIXIL Group operating companies in Japan and overseas, together with their consolidated subsidiaries and non-consolidated subsidiaries under

the management of operating companies, as of April 2011

Target 3

We will reduce the CO2 emissions of our Japanese sites to 50% of their fi scal 1990 level by the end of fi scal 2015.

Reducing our energy consumption to achieve Target 2 will also help to reduce the direct CO2 emissions from our business

activities in Japan. Our total CO2 emissions from Japanese sites in fi scal 2011 amounted to 418,000 t-CO2, a reduction of 48%

from fiscal 1990 emissions.

92

Total CO 2 Emissions from the LIXIL Group’s Japanese Sites

93

Information Collection Criteria and Scope

As of April 2012, the scope of the organization for which environmental impact data is reported comprises, in principle, most of the

major operating companies and their consolidated subsidiaries and the non-consolidated subsidiaries and affiliates operating under

them. The scope differs from the group of companies that are consolidated for financial reporting purposes.

Subsidiaries of LIXIL Group Corporation

LIXIL Corporation, LIXIL VIVA CORPORATION, Kawashima Selkon Textiles Co., Ltd. LIXIL Housing Institute, Ltd., HIVIC CO., LTD.,

JIO Corporation LIXIL REALTY, Corp., CLASSIS Corporation, and LIXIL Group Finance Corporation

Subsidiaries of LIXIL Corporation

LIXIL Total Service Corporation, SUN WAVE CORPORATION, Asahi Tostem Exterior Building Materials Co., Ltd., LIXIL SUZUKI

SHUTTER CORPORATION, LIXIL Toyo Sash Shoji Co., Ltd., JAPAN HOME SHIELD CORPORATION, Tostem Management

Systems Co., Ltd., LIXIL ENERGY Co., Ltd., LIXIL INFORMATION SYSTEMS CORPORATION, JAXSON CORP., LIXIL Logistics

Corporation, American Standard Asia Pacific, TOSTEM HOUSING PRODUCTS (DALIAN) CO., LTD. (China), LIXIL BUILDING

MATERIALS MANUFACTURING (SUZHOU) CORPORATION (China), LIXIL Sanitary Fitting Manufacturing (Suzhou) Corporation

(China), LIXIL TAIWAN Corporation (Taiwan), TOSTEM THAI Co., Ltd.(Thailand), and LIXIL INAX VIETNAM Corporation(Vietnam)

Environmental Impact Data of Newly Integrated Companies

Data on newly integrated companies such as The Permasteelisa Group will be reported as of the third year following integration,

taking into consideration an analysis of the data collected before group integration and the preparation period for the introduction

of environmental management systems.

Reporting Period

April 1, 2012 to March 31, 2013 Differing reporting periods are so indicated.

Information Disclosure on Website

The details of environmental activities details are disclosed on the LIXIL Corporation website in the corporate data and CSR

sections.

94

[Total Energy Consumption Calculation Method]

Energy consumption (procurement)*1 = (Amount of purchased raw materials)×(Energy conversion coefficient*2) ＋ (Cost of purchasing

parts/materials)× (Energy conversion coefficient*3) Energy consumption (manufacture/sales)*4 = (Electricity/Fuel consumption, water

intake)×(Energy conversion coefficient*5) Energy consumption (disposal) = (Land filled/incinerated quantity when products are

disposed)×(Energy conversion coefficient*2)

Energy consumption (transport) = (Transported weight)×(Transportation distance)×(Energy conversion coefficient*6)

*1 Energy consumption in procuring raw materials includes energy consumed in mining, sorting, blending, refining and other raw material

processing including transport to Japan Energy consumption in manufacturing parts/materials includes energy consumed in mining, refining and

other raw material processing including transport to Japan and assembly/processing in Japan

*2 Conversion coefficient calculated from Japan Environmental Management Association for Industry (JEMAI) Carbon Footprint Database Ver.1

*3 Architectural Institute of Japan (AIJ) LCA Database (2005 Input-Output Table)

*4 Manufacture/sales energy consumption includes energy calculated by multiplying quantity of waste products processed during

manufacture/sales by energy conversion coefficient*2

*5 Electricity, fuel: heat value per unit per energy source as specified in the Law Concerning the Rational Use of Energy Water: conversion

coefficient calculated from Japan Environmental Management Association for Industry (JEMAI) Carbon Footprint Database Version 1

*6 Conversion coefficient calculated from unit fuel consumption and unit calorific value using improved tons × distance method as specified in

the Law Concerning the Rational Use of Energy (Measures Pertaining to Consigners)

[CO 2 Conversion Coefficients Used to Convert CO 2 Emissions]

Purchased electricity: Japan 0.378, China 0.764, Korea 0.489, Thailand 0.567, Vietnam 0.427, and Indonesia 0.653(kg-CO2/kWh),

Natural gas: 2.108 (kg-CO2/m3), LPG: 3.002 (kg-CO2/kg), Kerosene: 2.492 (kg-CO2/L),Fuel oil: 2.71 (kg-CO2/L),

Diesel:2.624 (kg-CO2/L), Gasoline: 2.322 (kg-CO2/L),Purchased steam: 0.06 (kg-CO2/MJ)

Sources: Guidelines for Calculating Greenhouse Gas Emissions for Businesses (Ministry of the Environment)

: GHG-emissions-from-purchased-electricity (Version-4_4_Aug-2012)

95

At LIXIL Corporation, in order to reduce the burden on the environment at all stages of a product’s lifecycle, we carry out

“product environmental assessments” on new products.

As part of the product environmental assessment we use a “product environmental assessment checklist” which incorporates

the “Reduce, Extend, Conserve” perspective on daily living into the manufacturing perspective of “Make, Use, Return” as part of

our planning process during the product development stage and our comprehensive assessment at the stage of mass production

design. The assessment process includes an LCA assessment to evaluate the impact on the environment at all stages of a

product’s lifecycle, and we carry out a quantitative assessment of our environmental impact (LCCO2).

All products whose overall rating meets the criteria for each product family is given an Eco Product designation and identified as

such in catalogs and other materials by the display of Eco Marks to draw attention to the eco-friendly features of the product.

Moving forward, we plan to incorporate evaluation indices for life cycle energy consumption reduction into our product

environmental assessments to help reduce energy consumption in the residential and commercial sector and in our business

activities.

97

Launch of New “Living Solutions” Service

We have launched a new service (Tsufu-Sofu Design Support Service*2) through which we use comfort index PMV*1 to make

optimum window size, type and layout proposals to builders across Japan based on the design blueprints and locations of the

planned buildings with the aim of making summertime more energy-efficient and comfortable. We regard wind as part of nature’s

bounty and make proposals for more comfortable living in a way that makes full use of wind in order to achieve energy savings.

The energy-saving effects and innovative initiatives offered by this service have been recognized outside the company, and at

the 9th Eco Products Awards (hosted by the Eco-Products Awards Steering Committee) we were awarded the Minister's Prize,

which is one of the top prizes (Eco-Services Category).

　

See “Tsufu-Sofu Design Support Service” for more details（http://tostem.lixil.co.jp/iedukuri/tsufu/）

*1 PMV (Predicted Mean Vote): a well-known index for measuring cool temperature sensation in order to assess comfort in

spaces. The level of comfort (PMV value) can be identified through a combination of six elements related to the temperature

environment (air temperature, mean radiation temperature, wind speed, relative humidity, volume of clothing worn and metabolic

rate).

*2 Sofu stands for “wind generation”; temperature differences in the air are utilized to generate the natural movement of air even

when there is no air current.

Development of Energy Savings and Water Savings Simulation Tool

We have released a web application containing an energy-saving and water-saving simulator which allows people to make simple

simulations of the savings in heating and lighting costs and CO2 reductions they can achieve by upgrading their windows, doors

and plumbing to the latest models. By making this available on our website, we have made the facility available to all customers. We

make use of the application on tablet computers in our showrooms during sales discussions and proposals with our customers.

See here for more details on our energy-saving and water-saving simulator（http://sv1.lixil.co.jp/eco_simulation/）

98

http://tostem.lixil.co.jp/iedukuri/tsufu/

http://sv1.lixil.co.jp/eco_simulation/

We have teamed up with local authorities (Nagasu-machi in

Kumamoto Prefecture and Bando-shi in Ibaraki Prefecture) to

build solar power generation facilities on idle land at our Ariake

and Iwai factories. Each site is equipped with 500 kW power

conditioners and can generate 3.75 MW, making them among

the largest such facilities in Japan. The generated electricity is

used in the factories, with any surplus, including output

generated during holidays when the factories are closed, being

sold to the local power utility.

As part of our efforts to improve ceramics production

technology, we have carried out testing of a system for

utilizing waste heat from ceramics industry kilns to generate

electricity. The aim is to use the device to convert unused

heat emitted from ceramics production processes into

electricity in order to reduce CO2 emissions and make more

efficient use of energy. Under the Ministry of the

Environment’s Challenge 25 Community Development

Program, in July 2011 we began to test the use of this device

at our main tile production factory in Iga Ueno, Mie Prefecture,

and we plan to carry out testing for a period of approximately

three years up to March 2014.

We strive to carry out our daily business activities in a way that reduces carbon emissions, recycles resources, and protects the

environment. The entire company works hard to make improvements, including reductions in CO2 emissions, in every process

from procurement through to manufacturing and disposal.

Generating Solar Power at Our Factories

Improving the Energy-Efficiency of Our Production Facilities

At our main production facilities we have introduced a co-generation system using natural gas, and introduced large-scale

facilities for making major overall reductions in CO2 emissions, including heat recovery and water reuse systems.

Testing Our Power Generation System that Utilizes Waste Heat

Introduction of Systems for Reducing Energy Consumption

We installed a system for time-controlling the operation of large-scale dust collectors at our Dalian Plant in China, with the aim of

reducing idle operation. This has reduced electricity consumption and contributed to a 30 t/year reduction in CO2 emissions.

99

After similar measures in the summer of 2011, once again we

prioritized the implementation of electricity-saving measures.

We made thorough efforts to save electricity by setting air

conditioning to 28°C at all our sites (except for certain

showrooms, etc.), cutting lighting by 50%, switching factories to

nighttime operation, installing generators, and other measures.

We also teamed up with the Cool Summer Campaign, which

targets our customers, under the banner of 2012 Summer

LIXIL Electricity Saving Action, promoting electricity savings at

the company and promoting energy-saving products.

Furthermore, we encouraged workplaces throughout Japan to

participate in our LIXIL Green Curtain Project by growing green

curtains. In FY2011 more than 20 of our sites responded to

this call, and in FY2012 the number of participating sites rose

to 57. We also held an in-house competition.

▲Tsukuba Factory: emergency generator for water supply

Eco-friendly Stores and Showrooms

We are fitting new showrooms, including our Kanazawa showroom that opened in November 2011, with insulated glazing in all

windows, the latest water-conserving toilets, high-effi ciency HVAC systems, solar panels (outdoor, rooftop) LED base and

spotlights (c), motion sensor-controlled lighting in toilets, and other eco-friendly equipment. Our Super Viva Home chain of home

centers are also being similarly equipped with mist-cooling systems, waterless urinals, water-saving toilets, gas air conditioners

that do not consume

electricity, electricity demand monitors, solar panels, wind turbines (d), LED lighting, and

other equipment to create even more eco-friendly stores.

Saving Electricity in the Summer of 2012

100

▲Green curtains at our Otani Factory (left) and Tokyo Exterior Showroom (right) (winners of the FY2012 in-house competition)

101

The manufacturing process for aluminum parts and materials

used in products such as sash windows is what uses most

energy in LIXIL Group business. We are implementing thorough

initiatives aimed at reducing energy consumption and we work

hard to recycle resources so as to reduce energy

consumption from the procurement of raw materials. LIXIL

actively seeks to use as raw materials the recycled aluminum

materials collected from items such as sash windows disposed

of when dismantling housing, etc. In an attempt to

commercialize this advanced sorting technology, LIXIL has

participated in a joint industry-academia-government

development project to develop energy-saving innovation

technology in partnership with the New Energy and Industrial

Technology Development Organization (NEDO). We have

carried out testing and assessment of pilot plants and made

preparations with a view to commercialization, while seeking to

achieve further reductions in our impact on the environment

by realizing technological innovations in the field of aluminum

resource recycling.

▲ The pilot plant jointly developed through the industry-academia-

government project

At LIXIL Corporation, we collect and sort all industrial waste products generated in our production processes according to the 3R

principle. Our development departments lead efforts to promote the recovery of resources from waste, and reduce waste product

generation at the manufacturing stage. In the future, we plan to pursue resource recycling on a global scale from the procurement

of raw materials through to disposal of the product.

Waste materials recycling volume and landfill volume

FY2011 FY2012

Recycling 102,611t 88,985t

Landfill 44,132t 50,184t

Total 146,742t 139,169t

Ratio of waste materials recycled

FY2011 FY2012

Reduction volume (year on year) 3,114t (2.2% increase in reductions) 7,573t (5.2% increase in reductions)

Recycling rate 81.0％

(LIXIL’s Japanese factories only:

98.8%)

77.3％

(LIXIL’s Japanese factories only:

98.9%)

*The recycling rate is the ratio of waste material volume turned back into resources, including valuable materials.


Use of Recycled Aluminum Materials

102

LIXIL Eco Centers

Following on from the launch of housing renovation waste collection with the goal of recovering resources at our Eco-Center

Tokoname in 2007 and Eco-Center Ibaraki in 2011, we recently launched a new business in Sendai City, Miyagi Prefecture. We

have received the cooperation of housing renovation businesses in the areas surrounding Aichi Prefecture, Tokyo City, Chiba

Prefecture, Kanagawa Prefecture, Ibaraki Prefecture and Miyagi Prefecture, and promoted the recycling of household equipment

such as bidet toilets and water faucets, in addition to window sashes, doors and carpets, etc.

Background to the Launch of LIXIL Eco Centers

In recent years, there has been an increase in efforts to recycle waste materials arising from the new construction of housing or

renovation work. However, scrapped household equipment often combines glass, waste plastic and wood waste, making it difficult

to dismantle and sort. For this reason, it has often been sent to landfill or thermal recycling (through which heat energy is

collected) and initiatives in material recycling (through which waste materials are recycled as resources) have been slow to

develop. In an attempt to find a solution to this challenge, we were the first housing equipment manufacturer to obtain a business

permit for paying to collect waste materials from housing renovations and using this to recycle materials.

In May 2007, we launched an industrial waste materials processing business in Aichi Prefecture at our INAX Eco-Center

Tokoname (now LIXIL Eco-Center Tokoname). In January 2011, we opened LIXIL Eco-Center Ibaraki and in December 2012 we

opened LIXIL Eco-Center Sendai, with the goal of accelerating measures aimed at building a recycling society.

Role of LIXIL Eco Centers

We pay to collect waste materials, such as used products from new construction or renovation work, and transport these to our

LIXIL Eco-Centers. At the Eco-Centers we utilize the know-how we have accumulated as manufacturers of housing equipment

and building materials, such as plumbing products and sash windows. Our experienced employees work by hand to dismantle and

sort the wide variety of waste materials we collect. The manual work carried out at LIXIL Eco Centers prevents materials from

being sent to thermal recycling or landfill sites and we have achieved a materials recycling rate of more than 90%.

The flow of housing renovation waste at LIXIL Eco-Cente

103

History of Our Eco-Centers

April 2005 Launched initiatives aimed at construction and commercialization of recycling systems for waste materials from

renovations

May 2006 Acquired permit from Aichi Prefecture for collecting, transshipping and storing industrial waste materials

June 2006 Started demonstration tests recycling renovation waste materials at a pilot facility

April 2007 Relocated from the pilot facility to a single plot at the former Tokoname factory

May 2007 Opened INAX Eco-Center Tokoname (now LIXIL Eco-Center Tokoname). Started full-scale collection of

renovation waste materials from outside the company.

September

2007

Selected by Aichi Prefecture as a “business that promotes the formation of a recycling society” (a status

awarded to leading recycling operators)

February

2008

Introduced volume reduction facilities for waste plastics

March 2008 Our housing renovation waste materials recycling business received “Ecotown Business” accreditation

July 2008 Acquired a waste disposal business permit from Aichi Prefecture

January

2011

Opened LIXIL Eco-Center Ibaraki

June 2011 Acquired a waste disposal business permit from Ibaraki Prefecture. Started business as INAX Eco-Center

Ibaraki.

April 2012 Changed name from INAX Eco-Center to LIXIL Eco-Center

December

2012

Opened LIXIL Eco-Center Sendai. Acquired a waste disposal business permit from Sendai City, Miyagi

Prefecture. Acquired a waste transportation business permit from Sendai City, Miyagi Prefecture.

January

2013

Opened LIXIL Eco-Center Sendai.

105

At LIXIL Corporation, we manage and monitor our factories in strict compliance with the Soil Contamination Countermeasures

Law and other environmental laws and regulations to ensure that soil and waterways in the vicinity of our factories are not

affected by our operations. No infringements of laws and regulations occurred in fiscal 2012.

Preventing Soil Contamination

We continue to manage our sites autonomously in strict compliance with the Soil Contamination Countermeasures Law as our

constituent businesses did before merging to create LIXIL Corporation. In conjunction with the revision of the Soil Contamination

Countermeasures Law, we have ensured legal compliance at sites entailing preparation of over 3000m2 of land for the purposes

of reconstruction and new construction. No cases of soil contamination were found in FY2012.

Reducing Water Usage and Maintaining Water Quality

LIXIL Corporation's factories use a great amount of water in aluminum product surface finishing and other processes. In order to

reduce overall usage, we promote efficient use of water by carrying out detailed water usage surveys at each factory (water

intake, usage per process and water circulation system deployment), installing water circulation systems, and implementing various

other water conservation measures. We also strictly manage wastewater, and are implementing various measures to minimize the

impact of wastewater on the natural environment.

Water usage in our production activities

Water intake FY2011 FY2012

Tap water 1,125,000㎥ 1,103,000㎥

Industrial water 8,796,000㎥ 8,589,000㎥

Groundwater 5,932,000㎥ 5,657,000㎥

Energy consumption (GJ) 20,800GJ 20,400GJ

Energy consumption year on year (GJ) ― -500 GJ （2.3%）

*Excludes sales divisions and stores.


106

List of Major Water Systems

Region Major Water System

Japan Hokkaido Ishikari River

Tohoku Mogami River

Abukuma River

Kanto Tone River

Tsurumi River

Ara River

Chubu Kiso River/ Yahagi River

Oyabe River/ ShŌ River

Kinki Yodo River/ Yamato River

Kumozu River

Chugoku Yoshii River

Kyushu Echigo River

Overseas China Northern China Biliuhe River

Hai River

Central China Yangtze River

Lake Tai

Huai River

Southern China Pearl River

Vietnam Red River

Hàn River

Mekong River

Thailand Chao Phraya River

107

LIXIL Group has set out a CSR Policy that incorporates “Priority Themes” and “Planned Activities” in the field of CSR, and we

promote activities that contribute to the development of a sustainable society. We have established the following priority theme -

“Promote speedy and transparent disclosure and share social contribution visions with our stakeholders”, and planned activities -

“To win and maintain the trust of our shareholders and investors and achieve sustainable growth in society, we will promote

speedy and transparent disclosure of information and share our visions and plans for social contributions with our stakeholders to

facilitate mutual understanding on this issue.”

LIXIL Group believes that contributing to the solution of social challenges through our business is our most important social

responsibility. We also recognize the great importance of holding dialogs and cooperating with our stakeholders as we seek to

resolve these social challenges. The entire Group will provide appropriate and proper disclosures and reports, both within and

outside the company, and build up a track record of dialog in order to construct ongoing relationships with our stakeholders and

use this as a way of achieving progress in our CSR activities.

In 2013, we have decided to release information online only, and we will not be publishing a booklet. To replace the booklet we

have set up a CSR activities report page as part of the annual report provided to institutional investors and we have merged our

financial report with our non-financial report. Disclosures of information made on this website will be used as the main tool for

disclosing information so that we are able to communicate information to a broad range of stakeholders. In addition to annual

updates we will publish up-to-date information as necessary.

See here for the FY2013 annual report（http://www.lixil-group.co.jp/e/ir/ar2013/index.html）

Structure and Reporting Scope of the LIXIL CSR Management Website

As a general rule, CSR initiatives are carried out across LIXIL Group. When designing our websites, we report to our priority

stakeholders on the CSR activities promoted by LIXIL Group and our operating companies, including LIXIL Corporation. Significant

information and activities related to the corporate governance of LIXIL Group as a whole are reported on the LIXIL Group

Corporation website.

See here for the CSR and environmental activities of LIXIL Corporation Group（http://www.lixil-group.co.jp/e/sustainability

/default.htm）

The websites of LIXIL and our operating companies focus on reports and articles about specific activities.

On this website, we report on activities under the following headings: For Our Customers, In Partnership with Our Suppliers, In

Partnership with Local Communities, In Partnership with Our Employees and Environmental Activities.

Activities and up-to-date information will be posted as appropriate.

Organizations Covered in This Report

Activities of affiliated companies, including LIXIL Group Corporation and LIXIL Corporation.

When the scope of application is limited for a particular item, this is pointed out in the notes, etc.

Period Covered by This Report

Information relating to the period from April 1, 2012 to March 31, 2013 has been updated and announced as of August 12, 2013.

The report for next fiscal year is scheduled for August 2014.

Major Organizational Changes in the Reporting Period (April 2012 to March 31, 2013).

The company name changed from JS Group Corporation to LIXIL Group Corporation on July 1, 2012.

In December 2011, Permasteelisa Group was welcomed as a new member of LIXIL Group as a subsidiary of LIXIL Corporation.

Financial information has been merged, but non-financial data, including the Permasteelisa Group’s global environmental impact,

108

http://www.lixil-group.co.jp/e/ir/ar2013/index.html

http://www.lixil-group.co.jp/e/sustainability/default.htm

has not been included in the FY2012 report.

Reference Guidelines

GRI Sustainability Reporting Guidelines Version 3.1 - Comparative Chart (242KB)（http://www.lixil.co.jp/corporate/csr

/editorial/pdf/GRI_reference2013.pdf）

Inquiries on the Content of CSR Reports

LIXIL Corporation, Corporate Communications Division (Group Public Relations Department)

E-Mail: [email protected]

See here for the LIXIL Group inquiries form

（https://www.lixil-group.co.jp/e/contact.htm）

Please enter “CSR Reporting Inquiry” in the question field.

A questionnaire survey is carried out in related to the content disclosed on this website.

Please feel free to provide any opinions or impressions you have in relation to the CSR management and CSR activities of the LIXIL Group. We

will refer to your opinions in our future corporate activities and when disclosing information.

109

http://www.lixil.co.jp/corporate/csr/editorial/pdf/GRI_reference2013.pdf

https://www.lixil-group.co.jp/e/contact.htm

LIXIL Group CSR Management 2013 · and the Group has continued to work hard to tackle global...

Documents

Transcript of LIXIL Group CSR Management 2013 · and the Group has continued to work hard to tackle global...