Natural Capital Strategies

Our lives and livelihood are supported in various ways by the benefits that natural capital provides. If we are to continue to enjoy the blessings of natural capital in the future, all of us—every member of society—will need to work together to protect natural capital and use it sustainably. Business enterprises have an important role to play here as well in their capacity as corporate citizens. The TOTO Group has placed environmental issues, which is a common global challenge, as an issue to be resolved through business, and has established the Global Environmental Policy to contribute to the creation of a sustainable society. By conducting business activities in accordance with this Policy, we will conserve and sustainably use natural capital and refrain from engaging in activities that may lead to the extinction of endangered species.

[ Global Environmental Policy ]
4.We promote the conservation and sustainable use of biodiversity.
　・We will minimize the negative impact of our business activities on the natural environment and work to conserve biodiversity.
　・We will procure raw material sustainably, taking into consideration the impact on the environment and biodiversity in the places of origin.
　・We will collaborate and cooperate with stakeholders to contribute to the creation of a society that fosters biodiversity. 

Efforts to address water resources

The TOTO Group assessed its dependence and impact on natural capital in accordance with the LEAP Approach recommended by the Taskforce on Nature-related Financial Disclosures (TNFD). As a result, we identified strong relationships between the business and natural capital, in sanitary ware production’s dependence on water resources, sanitary ware’s dependence on earth and stone raw materials, and earth and stone raw materials procurement’s impact on terrestrial ecosystems. TOTO is working to improve its relationship with natural capital, primarily with regard to the procurement of water resources and earth and stone raw material. The details regarding the assessment of the relationship between TOTO’s business and natural capital are disclosed on the following page.

In order to preserve water resources, the TOTO Group works to reduce the water consumption and promote water preservation activities throughout the product lifecycle. Many of our products have a long lifecycle of around 20 years, and more than 90% of the water use occurs during the product use phase when we look at the entire product lifecycle. By actively working to reduce the water use in this stage of the lifecycle, we aim to realize both comfortable everyday lifestyles and the sustainability of water resources. We also promote water resource preservation at production sites by recycling and reusing water used in the production phase.

Response to water risks

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.  

Six 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.


Measures to Reduce Water Consumption

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 2025 was 1.64 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. For example, in the field of sanitary ware manufacturing, we compile and share the water conservation best practices with employees every year. This includes the cases of water savings and reuse at each site. By sharing not only water-saving methods but also the key points of these initiatives, we aim to enhance employees’ knowledge and awareness of water savings.  

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 .

Water-related indicators and targets, such as water intake volume, are disclosed on the following page.

Water discharges management

While endeavoring to prevent pollution relying on our environmental management system, we also make every effort to minimize environmental loads by setting our own strict standards in addition to complying with the law. And wet also strictly manages water discharges by reusing wastewater after being reprocessed within each site and introducing monitoring system and closure system to prevent any external discharge of wastewater in order to prevent water contamination by discharged water.

We also manage the number of cases of violations of environmental laws and regulations  in the Pollution Prevention. 

Contribution by improvement in water-saving features and the widespread use of water-saving products

The TOTO Group is promoting efforts to reduce water consumption during product use and thus conserve water resources in the region by expanding the sales of water-saving products on a global scale. We defined the Avoided Emissions of water during product use as the amount of reduction in water use compared to the case where we have been spreading the use of the then product range in 2005. we set specific targets and manage their progress.

The amount of Avoided Emissions of water during product use will expand as more customers use products with high water-saving performance,We are aiming to achieve the target of Avoided Emissions of water during product use by improving water-saving performance and further promoting the use of water-saving products.

The Group reduced 900 million m³ in fiscal 2025 and is targeting a reduction of 950 million m³ in fiscal 2026 under WILL 2030 STAGE 2.

Transition of Avoided Emissions of water during product use
* For more information on Avoided Emissions during product use, click here, and for the calculation conditions of main products, click here.

Shipment rate by quantity of water per flush(Japan,overseas)

Water-saving Initiatives for Toilets

･Advancing the water efficiency of toilets

The TOTO Group has achieved a further enhancement of the water-saving performance of toilets, which use more water than any other plumbing equipment in the home for maximized contribution to the environment by saving water.

In Japan, TOTO released a new toilet that uses 13 liters per each large flush in 1976, achieving water savings of 35% compared to earlier toilets. Since then, we have continued to increase water-saving efficiency by Tornado Cleansing, developed for the first time anywhere in the world in 2002 and other products, subsequently releasing a toilet using 4.8 liters per flush in 2009, and a super water-saving toilet using 3.8 liters per flush in 2012.

Overseas too, we similarly released a 4.8-liter toilet in the United States and Mainland China in 2006, even before its release in Japan.

Since then, we have released a 3.8-liter water-saving toilet intended for the US and Chinese markets, as well as our 3.8-liter NEOREST toilets featuring Washlet equipped with a toilet bowl cleaning function “EWATER+” and our new photocatalytic technology “ACTILIGHT” intended for markets in the Americas, Mainland China, Asia/Oceania and Europe.

Evolution of water-saving performance (in Japan)

Evolution of water-saving performance (Overseas)

･Developing and expanding the use of water-saving toilets

In countries around the world, strict regulations on the volume of water used per flush have been instituted as a measure to combat water shortage problems.
Since even before these regulations, the TOTO Group has been committed to making positive contributions to the environment through its business activities, by making our 4.8-liter toilets the global standard, and by globally promoting the use of water-saving toilets that use less than 4.8 liters per flush.

Example of regulations and standards for full flush volumes by country（As of April 2026）

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 FY2025

･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 2025

･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 2025, 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 2026. 

FY2026 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 2026 as well.

FY2026 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.