GLOBAL SANITATION SOLUTIONSInvesting In A Better Future

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2.3 BILLION PEOPLE LACK ACCESS TO BASIC SANITATION

APPROXIMATELY 900 MILLION PEOPLE DEFECATE IN THE OPEN ON A DAILY BASIS

800 CHILDREN UNDER FIVE DIE EVERY DAY FROM DIARRHEAL DISEASES

ECONOMIC LOSSES ESTIMATED AT US$223 BILLION IN 2015

An estimated 2.3 billion people – one

out of every three in the world today –

live without access to basic sanitation,

of which approximately 900 million still

defecate in the open on a daily basis.

These are figures with a devastating

human cost: an estimated 800 children

under five years of age die every day

from diarrheal diseases caused by a

lack of hygienic water and sanitary living

conditions.

Lack of basic sanitation in schools

can cause girls to fall behind because

they do not have anywhere to dispose

of sanitary pads, forcing them to stay

home during their menstrual cycles.

This often causes girls to drop out of

education, forming a vicious cycle that

makes it difficult to break out of poverty.

Not only is it embarrassing to

defecate in the open, but having to find

a place away from school or home to

relieve themselves also puts women

and children at risk of harassment and

assault.

This sanitation crisis cripples

opportunities for growth and

development in nations across the

globe. According to research conducted

by LIXIL in collaboration with Oxford

Economics, global economic losses

from poor sanitation were estimated at

US$223 billion in 2015, an increase of

over 20 percent from five years earlier.

In the same year, poor sanitation cost

the Asia-Pacific region an estimated

$172 billion, Latin America and the

Caribbean $22.2 billion, and Africa

$19.3 billion.

Global sanitation is an issue we can

no longer afford to ignore.

THE ISSUES

© UNICEF/UN055381/Romana

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LIXIL'S APPROACH

Every person on the planet dreams

of a better home, and LIXIL’s higher

purpose is to help them achieve that

dream – whether it is by renovating

their kitchen in Tokyo or by installing

their first toilet in Nairobi.

In response to the global sanitation

crisis, LIXIL has pledged to provide

better sanitation to 100 million

people by 2020. As a global leader

in sanitary products, LIXIL is taking

the technology and expertise it has

developed in global markets and

applying it to the sanitation challenge.

To address the world’s complex,

multifaceted sanitation problems,

LIXIL is providing multiple solutions

tailored to the unique circumstances

and market needs of individual

regions. This includes its SATO range

of toilet products, which has been

commercialized; its Micro Flush Toilet

System and Portable Toilet System,

which are currently undergoing field

tests; and its Green Toilet System,

which has been installed in a refugee

camp and which LIXIL plans to transfer

to a local company in East Africa to

increase its impact and reach even

further. Through these activities, LIXIL

is building sustainable businesses

rooted in local communities, helping

to solve social problems, all while

contributing to the long-term growth of

the company.

To ensure we can expand scale as

quickly as possible and that these

activities are sustainable, LIXIL treats

SATO like any other business, the

only difference being that the SATO

business has both financial and social

targets to achieve.

This approach of treating SATO

as a business, not as CSR, also

demonstrates LIXIL’s belief in the

prospects of the Sanitation Economy,

which presents vast potential for global

economic growth while addressing

one of the most urgent and grand

challenges of our time, achieving

universal access to improved and

safely-managed sanitation (SDG6).

The Sanitation Economy monetizes

toilet provision, products and services,

biological resources, and data and

information to provide benefits across

the economy and society.

According to research by the

Toilet Board Coalition, a Geneva-

based partnership in which LIXIL is

a founding member, the Sanitation

Economy in India alone is estimated

to be a $62 billion per year market by

2021.

SUSTAINABLE DEVELOPMENT GOALS

The United Nations Sustainable

Development Goals (SDGs) is a concrete

plan of action outlined in Transforming

Our World: The 2030 Agenda for

Sustainable Development, which was

adopted by the UN General Assembly

in 2015. The 17 goals outline over

100 global targets for important issues

To effectively tackle the sanitation

crisis and contribute to the SDGs, LIXIL

is focused on driving scale through

building partnerships around shared

goals with governments, NGOs, and

other types of organizations.

In July 2018, LIXIL and UNICEF

announced “Make a Splash! Toilets for

All,” a new, international partnership

that will contribute to global efforts to

improve access to basic sanitation for

250 million people around the world by

2021.

Since 2013, the two organizations

have collaborated on several projects

in Africa to provide people in need of

toilets with access to locally-adapted

sanitation products designed by

LIXIL. Both partners bring years of

knowledge and expertise to the table:

LIXIL as a maker of pioneering water

and housing products, and UNICEF

with its track record of improving

water, sanitation, and hygiene (WASH)

practices in over 100 countries.

This new partnership seeks to

provide people with access to quality

sanitation products, putting an end

to the health-threatening practice of

open defecation. Joint programs in

Ethiopia, Tanzania, and Kenya aim to

showcase the business opportunities

associated with demand for toilets

and other sanitation products and

provide lessons for the development

of sanitation markets – involving the

development of enabling environments,

improving product supply and skills,

and supporting opportunities for

affordable finance. LIXIL and UNICEF

encourage other companies and

organizations to enter and expand this

market to help improve the future of all

children, families, and communities.

DRIVING SCALE THROUGH STRATEGIC PARTNERSHIP

LIXIL'S APPROACH

like poverty, hunger, sanitation, and

gender equality, which lay the path for

sustainable development around the

world.

LIXIL reflects the SDGs’ approach in

its corporate responsibility strategy and

uses the goals as a broad guideline when

forming management decisions.

© UNICEF/UN0205847/Sokhin

Note: UNICEF does not endorse any company,

brand, product, or service.

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Having to defecate in the open, into

an open pit, or over an inadequate

pit latrine exposes millions of people

to odors and disease. To combat this

problem, LIXIL has developed the

SATO series of products, the first

model created with funding from the

Bill and Melinda Gates Foundation and

launched in Bangladesh in 2013.

Users pour in a small amount of

water to flush away waste, after which

a counterweighted trap door closes

to keep insects and odors away.

SATO products are safe for children,

easy to clean, and affordable. Each

one is designed to suit the needs

and preferences of users in different

regions. More than 1.8 million SATO

units have been shipped, enabling

improved sanitation for approximately 9

million people so far.*

SATO TOILET SYSTEM

To deliver sustained improvements

to sanitary conditions for as many

people as possible, LIXIL is focused

on developing SATO operations in a

tailored way to meet local needs.

Producing SATO toilets locally keeps

costs down and facilitates broader

distribution. Selling SATO toilets through

local partners creates employment

and more concrete and entrenched

local operations. By establishing a local

Make, Sell, Use cycle, individual regions

can independently and consistently

improve their own sanitary conditions.

*This is calculated by assuming an average of five

users for every SATO unit shipped as of March 2018.

“People that have actually used our product say that they can use the toilet throughout the year because they don’t require as much water, while their children can go to the bathroom by themselves now, safely and without fear.”

Daigo Ishiyama, Director of Marketing and Technology, SATO business

THE SATO V-TRAP CONNECTION SYSTEM

GREEN TOILET SYSTEMThe Green Toilet System offers a

compost-based system to treat waste.

By separating solid and liquid waste,

the toilet enables maintenance workers

to easily collect waste from tanks and

transport it to a treatment facility.

Once turned into fertilizer and soil

conditioner, it can be used for farming.

The Green Toilet System also requires

In November 2017, LIXIL launched

the SATO V-Trap Connection System

(SATO V-Trap), a new product specially

developed to meet the needs of the

Indian market. The Indian government’s

Swachh Bharat Mission policy aims

to eliminate open defecation in India

by 2019, and approximately 80,000

toilets are being constructed across

the country every day to reach this

goal. Particularly in areas that lack

underground sewage systems, the

Indian government is promoting the

adoption of Twin-Pit Pour-Flush (TPPF)

latrine systems. However, traditional

systems can be prone to clogging, and

masonry work is required in order to

switch the direction of human waste

between the two pits. LIXIL’s new SATO

V-Trap has been specially developed to

meet the needs of the Indian market.

While retaining the original SATO design

with a self-closing trap door, which

helps to conserve water, minimize odor,

as well as keep out disease-carrying

insects, the SATO V-Trap is designed

so users can switch the flow of human

waste between pits easily.

no water to transport human waste,

circumventing the need for a traditional

sewage system while protecting

groundwater from contamination. With

the help of the United Nations Human

Settlements Programme (UN-Habitat),

LIXIL was able to install the Green Toilet

System in a refugee camp in Kenya,

which will enable the local community

to safely treat human waste and

recycle it as fertilizer. In October 2018,

LIXIL announced plans to transfer the

technology to a Kenyan company, ACE

Environmental Consultancy, to facilitate

its widespread use with local expertise

and infrastructure.

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SATO TOILET SYSTEM SATO TOILET SYSTEM

More than 730,000 Rohingya escaped

to the Cox’s Bazar area in Bangladesh

since violence broke out in Myanmar’s

Rakhine State in August 2017. The

vast majority reaching Bangladesh

are women and children, and more

than 40% are under the age of 12.

Now that several months have passed

since the attacks, it is now time to put

infrastructure in place that is more

durable and can support thousands

of people and meet humanitarian

standards. SATO was chosen as one of

the settlements’ standard toilet models

because of its affordable price and

ability to minimize insects and odors.

This allowed humanitarian partners to

create a standardized infrastructure and

give the community an efficient way to

maintain hygiene and remove waste. In

December 2017, LIXIL donated 5,000

SATO toilets, raised through its Toilet

CASE STUDY: ROHINGYA REFUGEE SETTLEMENTS

for All project in Japan, to UNHCR to

distribute in the refugee settlement

areas where it operates as a focal

agency. This helped to improve sanitary

conditions in preparation for the

monsoon season. As of August 2018,

UNHCR and its partners constructed

more than 6,000 latrines, benefiting

125,000 refugees.

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MORE THAN 1.8 MILLION SATO PRODUCTS WERE SHIPPED FOR USE AROUND THE WORLD, ENABLING IMPROVED SANITARY CONDITIONS FOR APPROXIMATELY 9 MILLION PEOPLE.

In 2017, LIXIL began its “Toilets for

All” initiative in collaboration with UN

organizations and international NGOs.

For every LIXIL shower toilet sold in

Japan between April and September

2017, one SATO toilet will be donated to

developing countries, primarily in Asia

and Africa—totaling 208,805 toilets.

The aim of this initiative is not only

to donate SATO products to regions

where there is an urgent need for them

but also to raise awareness of global

sanitation issues within Japan.

TOILETS FOR ALL

“It uses less water and is clean. It has a lid that opens and closes for odor control. That is good because you don’t mind having a toilet in your home.”

Sanjay Patel, Home owner

Buliya Khedi, Madhya Pradesh, India

© UNHCR/Roger Arnold

Each product in the SATO series

is designed for the needs and

preferences of its local users. Some

toilets are made for regions that

do not use concrete when building

latrines, while other toilets are made for

cultures that prefer sitting on a toilet to

squatting over one.

SATO toilets are currently used

by local communities in over 20

countries, including Haiti, Mauritania,

Ghana, Nigeria, Zambia, Malawi,

Rwanda, Uganda, Kenya, India, Nepal,

Bangladesh, Indonesia, and the

Philippines.

In September 2017, SATO was

chosen to receive funding through

Grand Challenges Canada’s Urban

Sanitation Challenge. The SATO

business is currently developing new

production systems in several countries

to reach LIXIL’s goal of bringing safe

sanitation to 100 million by 2020.

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PORTABLE TOILET SYSTEM

MICRO-FLUSH TOILET SYSTEM

The Portable Toilet System is an in-

home sanitation product designed

for urban slums that lack proper

sanitation infrastructure. It is now being

developed and field-tested to offer

disadvantaged households a virtually

In response to the global sanitation crisis

and its devastating effect on the world’s

people, LIXIL will continue leveraging

its scale and expertise to deliver

useful toilet solutions to developing

communities.

“The challenges are complex, local,

and enormous. No single organization

can solve them alone. What we can

achieve with partners is so much greater

than what we can do alone,” said Jin

Montesano, Executive Officer and

Senior Managing Director, Public Affairs,

Investor Relations, External Affairs,

Corporate Responsibility, LIXIL Group

Corporation

Using far less water per flush than a

regular toilet, and recycling sewage

water to assist the flow in outside

pipes, the Micro Flush Toilet System

significantly reduces the consumption

of precious clean water. It is particularly

aimed at mitigating problems related

to scarce or unreliable water resources

in urban environments where the

population is rapidly increasing.

Suitable for both stand-alone homes

and multi-unit buildings, the system

avoids clogging of the sewage system

and features a comfortable sitting-type

toilet that is easy to clean and maintain.

A flapper valve in the toilet bowl is

operated with a handle, and the valve

odorless toilet from which human

waste can be collected and treated

hygienically and efficiently.

The system contains a compact

stand-alone toilet and a collection

station. The toilet is designed to

minimize odors and can be easily

placed in any household. Its removable

cartridge can be transported from

individual homes to a designated

collection station, where the waste

inside the cartridge is deposited and

the cartridge cleaned. Professional

waste treatment companies collect

waste from the station and transport it

to an offsite treatment center.

The Portable Toilet System was

recently tested in the Philippines with

the cooperation of local public and

private organizations, and feedback

from people who used the system

is now being reflected in product

development.

CollectionStation

TreatmentSite

and accumulated water prevent odors

from entering the room. A steeply

angled pipe connected to the toilet and

sewage water system assists the overall

flow of waste.

“Our activities will also demonstrate

the business opportunities evident in the

sanitation economy, with the intention

of encouraging more players to enter

and expand this market, ensuring its

sustainability. Most importantly, these

activities will demonstrate that innovative

partnerships between members of the

public and private sector can and will

improve the quality of life for people and

build safer, happier futures for all.”

PLANNING FOR THE FUTURE

Pump

1L 1L 1L

Drain

Sanitary sewagestorage tank

Re-uses sewage water to carry waste

© WaterAid/ Tom Greenwood

XW8700 01 December 01. 2018

LIXIL Group Corporation36F, Kasumigaseki Building, 3-2-5 Kasumigaseki,Chiyoda-ku, Tokyo 100-6036, Japanwww.lixil.com

Printed in Japan*XW8700 *