Preserving Biodiversity

Over the millions of years since the earth first came into being, an enormous variety of living creatures have evolved on the planet, including human beings, and have formed links and connections with one another. This biodiversity and the manifold benefits that it has brought support our lives and lifestyles. If we are to continue to enjoy the blessings of biodiversity in the future, all of us-every member of society-will need to work together to protect biodiversity. Business enterprises have an important role to play here too in their capacity as corporate citizens.

TOTO Group has placed the common global challenge of environmental problems distinctly as an issue to be resolved through business and have established Global Environmental Policy to contribute in creating a sustainable society. Through conducting business activities in line with the policy, we take care to preserve biodiversity, and a sustainable use of them, and at the same time not to engage in activities that may lead to the extinction of endangered species.

[ Global Environmental Policy ]
4.We promote the conservation and sustainable use of biodiversity.

• The destruction of nature resulting from business activities is avoided and biodiversity is preserved.
• We procure raw materials in each country in such a way that we do not harm the local environment and biodiversity.
• Collaborating and cooperating with stakeholders, we contribute to building society that cultivates biodiversity.

･Participation in the Keidanren Initiative for Biodiversity Conservation 

The TOTO Group agrees with the Keidanren Declaration on Biodiversity (revised version), which expresses the commitment to biodiversity conservation, and participates in the Keidanren Initiative for Biodiversity Conservation.

･Toward the Realization of a Society in Harmony with Nature

･Assessing the relationship between natural capital, biodiversity and business

The TOTO Group is promoting visualization the relationship between natural capital and biodiversity and its business activities, and to link this to sustainability management.

Based on the LEAP Approach recommended by the Task Force on Nature-related Financial Disclosures (TNFD), we are working to assess our dependence on and impact on natural capital and the risks and opportunities arising from this dependence.

In order to clarify the relationship with natural capital for the production of Sanitary ware , which is the TOTO Group's main business, we created a heat map using the recommended tool (ENCORE).


Initiatives in the heat map items with high dependence and impact on natural capital are as follows

• Dependence on water resources: In the production of Sanitary ware, water is mixed with raw materials such as soil and stone to form slurry into sanitary ware. We are working to conserve and Recycling this water in the production process and to use it efficiently.
• Dependence on mineral resources , Impact on terrestrial ecosystems: With regard to soil and stone raw materials, we are working on sustainable procurement together with our suppliers to minimize our dependence on and impact on natural capital as much as possible.
• Impact of GHG emissions: We are promoting reductions in GHG emissions based on the SBT 1.5℃ reduction target.
  
  

The TOTO Group evaluates water-related risks for sustainable business activities.

We conduct risk assessments for floods and water contaminations and specifically make efforts to grasp the details of water stress (the degree of tightness between water supply and demand) because we believe that it has a strong impact on business continuity. 

As a large quantity of water is used in the production processes, we strive to capture water stress of all the production site regiones to lead to effective responses. The evaluation method complies with the GRI (Global Reporting Initiative). We assess the water stress and water depletion of each production site regiones using Aqueduct, which was developed by the World Resources Institute and Water Risk Filter by the World Wildlife Fund (WWF), to identify those under water stress.  

Seven production site regiones, which are in Mexico, mainland China, India, and Thailand, were assessed as extremely high water stress regiones. We work on investigating further and coming up with measures for those site regiones based on the results.

In response to water Risk, we have assessed each site, selected areas that are less susceptible to flooding, and constructed production plants based on design standards that anticipate emergency situations. In operations, we have installed emergency equipment and conducted training for anticipated situations, and will continue to implement measures going forward.

The global-scale climate change and expanding water demand by population growth have caused serious shortage and depletion of water resources in various regions, possibly leading to an impact on water consumption in our business activities.

The water consumption of the TOTO Group in fiscal 2024 was 1.78 million cubic meters. Focused on the importance of conservation and effective use of water resources, TOTO sets goals for continuous water consumption reduction and has implemented strategic measures to reduce water consumption through water-saving activities and the increased use of recycled water at each business sites. 

We have introduced water-saving fixtures at all our bases, strive to conserve water in our production processes, and promote the reduction of water usage.

To further increase water efficiency, our Sanitary ware manufacturing plants recycle wastewater from production at on-site wastewater treatment plants and reuse it in the production process and for Flush toilets. (Head Office, Kokura First Factory, TOTO India Industries Pvt. Ltd., TOTO (Thailand) Co. Ltd., and TOTO Mexico, SA de.CV)

In addition, our Faucet manufacturing plants have introduced a water circulation system that recycles wastewater from the plating process. (TOTO Aquatechno Kokura Plant and TOTO (Dalian) Co., Ltd.)

We will continue to expand the use of Recycling water at each Production factory.

･Procurement Respecting Biodiversity

Sustainable Raw Material Procurement Standards were established in 2010. The procurement of earth and stone raw materials and wood materials, from which our staple products are made, is regarded as an critical issue to consider. These standards are specified and published in the Guidelines for Green Procurement. In addition to human rights, labor and compliance, we take into consideration the effects on the environment and ecosystem in the places where our raw materials are produced, as we pursue the appropriate balance between the sustainable use of resources and stable procurement and push forward with sustainable procurement in cooperation with suppliers.

Standards for Sustainable Raw Material Procurement:
(i) Raw materials produced in compliance with the laws and regulations of the place of origin.
(ii) Raw materials produced in a working environment where safety and hygiene are properly provided.
(iii) Raw materials whose impacts on the local environment and biodiversity are taken into consideration.
(iv) Respect for the human rights of workers and local residents at the source.

･Earth and Stone Raw Materials

For earth and stone raw materials used to produce ceramic sanitary ware, we confirm the legality and sustainability at all mines by conducting a questionnaire survey or an interview through trading companies that includes questions asking about compliance with the standards specified by TOTO at least once every three years. The questions include whether forests are restored after completion of mining and whether efforts are made to prevent mining and tailings from polluting rivers and lakes. In 2024, it was confirmed that all surveyed mines met TOTO’s standards.
We will aim at maintaining 100% achievement of compliance with the TOTO standards in fiscal 2025. 

FY2024 Target : Achievement rate of compliance with the TOTO standards 100%

･Wood Materials

Illegal logging and excessive logging of forests is a major cause of loss of forests, leading to loss of biodiversity.
The TOTO Group basically handles timber and timber products that have been certified as legal. Based on the Japanese Forestry Agency's "Guidelines for certifying legality and sustainability of timber and timber products,"we survey information necessary for traceability regarding the wood materials to be procured (country of origin, commercial distribution, legality certification, etc.) every year. In addition, we have set a target value for the ratio of legal materials and recycled materials to the amount of wood materials used for the products we produce, and confirm the actual values.
Since 2017, we have maintained the ratio of legal and recycled lumber at 100% and aim at maintaining it in fiscal 2025 as well.

FY2025 Target : Composition of Legal materials + recycled materials 100%

Recycle materials：Wood based materials that are made from wood that has been used once, wood that has not been used, or that has been discarded.

TOTO aims to be a company that contributes to the development of society by creating an enriched and more comfortable lifestyle and culture built on its plumbing products. Conservation of the natural environmental, including the water environment, is essential for both the sustainable development of society and the business continuity of a company. For this reason, we promote environmental contribution activities involving communities and society from a biodiversity standpoint. For example, we implement water resource recycling and conservation, as well as activities for the preservation of forests, which are the sources of water.

･The TOTO Water Environment Fund

Result in FY2024

･Initiatives at Overseas Group Companies

The TOTO Group promotes social contribution activities by the overseas Group companies. Tree-planting activities are regularly conducted, which not only contributes to protection of the environment but also to raising employees’ and their family members’ awareness of the protection.

Activities in fiscal 2024