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 aims at being an entity that contributes widely and continuously to society and the global environment and has been trying to work on sustainability management. To realize this goal, we are establishing a corporate governance system for executing and supervising fair and equitable management.

The TOTO Group discusses and administers sustainability issues, including activities related to conserving natural resources , which is one of the important business issues, in the Sustainability Committee chaired by the president. The Board of Directors then supervises the activities.

Also, the TOTO Group has established the TOTO Group Risk Management Policy for risk management. Under the president, the Risk Management Committee evaluates risks, including conserving natural resources related to business. Risks that may significantly affect 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 that include the conserving natural resources under the Environmental Management System.

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.

In fiscal 2025, the TOTO Group’s water consumption decreased, and water consumption per unit of sales also improved.  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.

Changes in water use

Water withdrawals

Water consumption

Water recycled/reused

Water discharges

* In 2025, we retrospectively revised the figures for wastewater discharge and water consumption following a review of the calculationmethodologies applied in prior periods.