Preventing global warming | Disclosure of information about climate change

Based on the Paris Agreement adopted at the COP 21 (21st Conference of the Parties to the United Nations Convention on Climate Change), we developed the greenhouse gas emission reduction target by 2030 based on scientific grounds that are consistent with the Paris Agreement and have been promoting the reduction activities under the New Shared Value Creation Strategy TOTO WILL2030 toward the realization of a carbon-neutral and sustainable society by 2050. As for the reduction of CO2 emissions from business sites, we work to improve energy saving/renew large facilities. As for the reduction of emissions, we work to improve energy saving, renew large equipment, expand the introduction of renewable energy and for electricity to use, we aim to use 100% renewable energy by 2040.
In addition, customers use TOTO products in their daily lives for as long as 10 to 20 years, and more than 90% of the CO2 is emitted during the product use phase when we look at the entire product lifecycle. As for the reduction of CO2 emissions during the product use phase, we will further evolve our products' environmental performance and by globally commercializing our Sustainable Products, a bathroom and kitchen product group that is unique to TOTO, that balance cleanliness, comfort, and the environment, we will contribute to the realization of a rich and comfortable society that gives consideration to the global environment.

We agree with the international initiatives toward the realization of a carbon-neutral and sustainable society.

In May 2019, we agreed with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). We disclosed our management strategy for which the TOTO Global Environmental Vision serves as a propulsion engine.

In April 2021, we joined an international initiative RE100. As for electricity used in the TOTO Group around the world, we aim to use 100% renewable energy by 2040.

In June 2021, we acquired the certification of the SBT (Science Based Targets) Initiative. Our greenhouse gas reduction target toward 2030 has been recognized as the level to hold the increase in global temperature to well below 2 degrees C as compared to the pre-Industrial Revolution.

Following the TCFD recommendations, the TOTO Group analyzes the opportunities and risks posed by climate change using multiple scenarios and discloses information on four elements: Governance, Strategy, Risk Management, and Metrics and Targets.

The TOTO Group aims at being an existence that contributes widely and continuously to society and the global environment and has been trying to integrate management and CSR. To realize this goal, we are establishing corporate governance system for executing and　supervising fair and equitable management. The CSR Committee is held annually with the president as the chairperson to discuss and administer CSR issues, including long-term activities related to climate change. The board of directors then supervises the activities.

In the New Shared Value Creation Strategy TOTO WILL2030 announced in April 2021, the TOTO Group announced the acceleration of its initiatives toward the realization of a carbon neutral and sustainable society. We have set cleanliness, comfort, the environment, and relationships as materiality topics, which are the important issues to work toward, and have been promoting the integration of management and CSR. In addition, we newly set sustainable products, a bathroom and kitchen product group that is unique to TOTO and that achieves a balance of cleanliness, comfort, and the environment, and will work to expand the commercialization of such products in order to contribute to the realization of a rich and comfortable society that gives consideration to the global environment.

＜Risks and Opportunities＞
Based on the categories defined by TCFD (transition risks, physical risks, and opportunities), TOTO has identified long-term climate change-related risks and opportunities that may have impact on the business.

The TOTO Group has established the TOTO Group Risk Management Policy for risk management. Under the president, the Risk Management Committee evaluates risks, including climate change related to business. Risks that may significantly impact on the business and the society are mapped out and managed as major risks, which are reported to the board of directors. In addition, individual business departments and offices are also managing environmental risks under the Environmental Management System.

The TOTO Group aims at proceeding our initiatives based on SBT (Science Based Targets), contributing to the realization of a carbon-neutral and sustainable society in 2050, and providing comfortable and healthy lifestyles to all. And by working to solve social issues through our business, we will realize economic growth and contribute to the UN's Sustainable Development Goals (SDGs).

As for the reduction of CO2 emissions from business sites, we have set a target to reduce 30% by 2030 as compared to FY 2018. We will proceed with the reduction of total CO2 emissions by minimizing energy consumption in business activities by improving energy savings and renewing large equipment, positively introduce renewable energy throughout the entire Group, and make and promote the plans to set targets of using 90% renewable energy by 2030 and 100% by 2040.

Water used at home or in facilities are produced using electricity and other energy, for example, in the treatment phase at the water and sewage treatment plants, as well as by pumps during delivery and pumping. If you use hot water, more energy is required for heating, which results in more CO₂ emissions.

TOTO products are characterized by the length of product use in the customers’ daily lives. Therefore, from the perspective of the product life cycle, water and energy saving during the product use phase can make a significant contribution to environmental conservation on the earth. As for the reduction of CO₂ emissions during the product use phase, the TOTO Group has set the greenhouse gas reduction goals based on scientific grounds that are consistent with the Paris Agreement and acquired SBT. To achieve the goal of reducing 15% as compared to 2018 by 2030, we will develop products that have high water-saving performance, and by marketing such products on a global scale, we will work to reduce CO₂ emissions and water consumption during the product use phase.