LIXIL Achieves Top Level Evaluation in Global ESG Indices
Tokyo – LIXIL Corporation (“LIXIL”, TSE Code: 5938), maker of pioneering water and housing products, has achieved top level evaluation in recognition of its ongoing work on ESG (Environmental, Social, and Governance). Highlights of recent updates include:
› LIXIL has been selected for the first time for all five ESG indexes adopted by the Government Pension Investment Fund (GPIF) of Japan, including the MSCI Japan ESG Select Leaders Index1.
› LIXIL received the highest AAA “Leader” rating in the MSCI ESG Ratings assessment for the first time in recognition of its ESG initiatives and highly-transparent disclosure2
› LIXIL has been selected as a Nadeshiko Brand for its excellence in advocating the empowerment of women in the workplace.
The MSCI Japan ESG Select Leaders Index consists of companies from among the Japanese stocks by market capitalization that have relatively superior ESG ratings within their industries4. Due to its inclusion in this index, LIXIL has also been selected for inclusion in all five major indexes3 used by the Government Pension Investment Fund (GPIF) for ESG investment in Japanese companies.
The MSCI’s ESG ratings are based on its research into and analysis of how each company appropriately manages ESG-related risks and opportunities, Companies are rated according to seven ranks, from AAA (leader) to CCC (laggard). Within LIXIL’s industry of Building Products, around 15% of companies acquired a AAA rating. LIXIL received particularly high ratings in Corporate Governance and Corporate Behaviors5
LIXIL has also been promoting comprehensive initiatives in areas of Diversity and Inclusion (D&I). In recognition of this, and as a company that demonstrates excellence in advocating the empowerment of women in the workplace, LIXIL was selected as a FY2023 Nadeshiko Brand by the Ministry of Economy, Trade and Industry and The Tokyo Stock Exchange. This is the seventh time that LIXIL has been selected. The selection criteria for the Nadeshiko Brands were even tighter than usual this year, placing a new level of criteria not only on the number of initiatives, but also on whether each company had established a system of advocating the empowerment of women in the workplace that was linked to its management strategy, and was implementing the initiatives in line with that strategy. This year, 17 companies, including LIXIL, have been selected for the Nadeshiko Brands, which have been significantly reduced from approximately 50 companies in the past. LIXIL has introduced various measures in order to achieve its company wide strategic D&I goals, which are to by 2030 achieve and equal the ratio of male and female directors and executive officers, and to increase the ratio of women in management positions to 30%. We have also set a regional goal for Japan of maintaining at least an equal ratio of male/female new graduate hires by 2030. In the fiscal year ended March 31, 2022, 53.8% of new hires were female. We are also promoting efforts to create and inclusive environment for all employees. This includes placing emphasis on D&I during all processes from when employees join the company to when they leave, working to correct gender imbalances in training and promotion processes, and strengthening connections between employees through global employee resource groups.
LIXIL President and CEO Kinya Seto commented as follows:
“We are delighted to have received these positive evaluations from MSCI and other ESG index providers, reflecting the progress that LIXIL is making on our ESG commitments. To achieve long-term sustainable growth, it is crucial that we incorporate ESG into our business strategies, then grasp growth opportunities while appropriately dealing with risk. I believe this external recognition is a result of our progress in strengthening governance and addressing environmental and social issues, as well as our track record of communicating with stakeholders via transparent disclosure. LIXIL will continue to pursue its purpose of “making better homes a reality for everyone, everywhere,” and strengthen our positive environmental and social impact, today and for future generations.
Please see below for detailed information on LIXIL’s ESG related activities.
LIXIL’s Corporate Responsibility (CR) Strategy:
External Evaluations & Awards
1 As of December 2022
2 As of February 2023
3 The indicators used by GPIF for ESG investment in Japanese stocks are:
FTSE Blossom Japan Index, FTSE Blossom Japan Sector Relative Index, MSCI Japan ESG Select Leaders Index, S&P/JPX Carbon Efficient Index, MSCI Japan Empowering Women Index ("WIN")
4 MSCI is a leading provider of critical decision support tools and services for the global investment community
With over 50 years of expertise in research, data and technology, MSCI enables its clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios.
5 Based on data as of February 2023
THE INCLUSION OF LIXIL CORPORATION IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF LIXIL CORPORATION BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
THE USE BY LIXIL CORPORATION OFANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF LIXIL CORPORATION BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.