Group-Wide Compliance and Risk Management

「In January 2022, we transitioned to a new structure and aim to further strengthen the Group's compliance culture and framework and improve risk management by streamlining and standardizing compliance policies, procedures and programs at the global, company-wide level.」

「The company has translated the “LIXIL Code of Conduct,” the common rules to be followed by all officers and employees, into 19 languages and reviews it regularly.」

「We identify risks that could affect achievement of the medium-term plan, define as key risks those requiring particularly focused management based on our assessment, appoint risk owners responsible for risk responses, and manage risks by sharing and reporting on the status of those responses.」

「We take this matter seriously. We have already formulated and are implementing specific measures to prevent recurrence based on the recommendations of the Special Investigation Committee, and will continue working to reinforce compliance awareness and further strengthen internal controls across the Group.」

「At LIXIL Renewal, a consolidated subsidiary of the Company, we are conducting an investigation to clarify the facts, including the details of the events and their impact on the Company's consolidated financial statements, after establishing a Special Investigation Committee in response to the possibility that appropriate reports were not made to the Company and that improper accounting treatment may have been used to recognize part of revenue earlier than appropriate. We are also considering measures to prevent recurrence.」

「The common LIXIL Group code of conduct has been translated into 17 languages and disseminated and reinforced through training and awareness activities. For high-risk areas covered by the code-of-conduct policies, we issue policies and guidelines that specify basic principles and procedures, translate them and provide training. We have also strengthened the framework for appropriately investigating reported matters by establishing a Compliance Investigations Department and implementing processes for raising concerns, including internal reporting.」

「We established a global compliance policy, conduct training and awareness activities, and regularly review the effectiveness of compliance measures and activities through the Compliance Committee.」

「The Group has established a code of conduct as a common ethical standard across the Group, and all employees, including officers, undergo annual training and make a commitment to comply with it.」