LIXIL Earns Place on CDP Supplier Engagement Leaderboard for Second Consecutive Year

Tokyo – LIXIL Corporation (“LIXIL”, TSE Code: 5938), maker of pioneering water and housing products, has earned a place for the second consecutive year on the Supplier Engagement Leaderboard published by the CDP:1, a global non-profit organization in charge of a leading environmental disclosure platform.

With the rising importance of Environmental, Social, and Governance (ESG) disclosure, the CDP works with a large number of institutional investors to collect and analyze information related to business risks and opportunities for major companies, disclosing its assessments every year. This includes climate change, water resources, and forest conservation.

For its Supplier Engagement Rating, the CDP conducts a survey of companies’ efforts to reduce greenhouse gas emissions. It then evaluates each company in four key areas (governance, targets, management of scope 3 emissions, and cooperation with suppliers) while factoring in their overall climate change score. LIXIL was one of over 500 companies worldwide and 105 companies in Japan selected as a CDP Supplier Engagement Leader, recognizing its ongoing efforts to mitigate climate change across its supply chain. In December last year, LIXIL’s efforts were also recognized in the CDP’s survey of water resources management, earning a place on the CDP’s 2021 Water Security A List.

“LIXIL is honored to be recognized as a Supplier Engagement Leader by the CDP. We aim to reduce CO₂ emissions from our business processes, products and services to net zero by 2050, and become a leader in the field of preserving water and limited resources for future generations. We have newly established an enterprise-wide Environmental Strategy Committee (ESC) to ensure environmental sustainability is integrated into the company’s core business strategy and further accelerate our efforts to help solve environmental issues. The energy consumed by LIXIL products during their end-use phase accounts for over 90% of CO₂ emissions of the entire lifecycle of LIXIL’s products and services, from raw material procurement through to product disposal. For this reason, we are working with suppliers, business partners, and customers to minimize the environmental impact of homes, offices and other living spaces. This recognition is a testament to our continued efforts in leading the way on sustainability and reporting transparently on our progress,” says Jin Montesano, the chair of LIXIL’s Corporate Responsibility (CR) Committee and oversees the company’s CR.

LIXIL’s Efforts to Mitigate Climate Change Through its Supply Chain
LIXIL Environmental Vision 2050 aims to achieve net-zero carbon emissions and “Climate Change Mitigation and Adaptation” is one of our focus areas. Together with our business partners, including suppliers and customers, we are promoting environmental initiatives, from raw material procurement and manufacturing to the use and disposal of our products.

These initiatives include:
› All of LIXIL International’s fittings production has achieved 100% use of renewable energy-derived electricity for their operations. In Japan, four LIXIL factories, seven distribution centers, six offices, and 84 sales offices have completed the switchover to 100% renewable energy-derived electricity.
› LIXIL has created Green Procurement Guidelines, which outline our policy and standards for procuring parts and materials with the least environmental impact.
› LIXIL supports its business partners and suppliers’ initiatives. Tostem Thailand has made use of its own expertise to conduct continuous environmental activities in the supply chain, and has been awarded the highest Level 5 of the Green Industry Project, which is sponsored by Thailand’s Ministry of Industry.
› LIXIL has reduced CO₂ emissions by approximately 40 tons per year through a new round-trip shipping container program that has achieved better logistics efficiency by allowing other companies to use for export empty containers that held LIXIL’s imported exterior goods.

Tostem Thailand receives the top Level 5 of the Green Industry Project

The Fukaya Distribution Center (Saitama Prefecture) is working to reduce CO2 emissions through better efficiency.

In the areas of corporate responsibility and sustainability, LIXIL is also listed on the international Dow Jones Sustainability World Index, FTSE4Good Index Series, FTSE Blossom Japan Index, MSCI Japan Empowering Women Index, and S&P/JPX Carbon Efficient Index. For more information on similar ratings please see here. https://www.lixil.com/en/about/evaluation.html

See list of CDP Supplier Engagement Leaders:
https://www.cdp.net/en/research/global-reports/engaging-the-chain#supplier-engagement-2021

Notes
1. CDP is a non-profit organization representing more than 590 institutional investors with more than US $110 trillion in assets under management, and the purchasing organizations of 200 companies. It sends questionnaires to companies to assess their measures for climate change, water conservation, and other issues, and discloses the responses to investors. Website: https://www.cdp.net/en

For details on LIXIL’s policies and measures for sustainability, see:
https://www.lixil.com/en/sustainability/