GLOBAL SANITATION SOLUTIONS Investing in a Better Future the ISSUES

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GLOBAL SANITATION SOLUTIONS Investing In A Better Future THE ISSUES

2.3 BILLION PEOPLE LACK ACCESS TO BASIC SANITATION

APPROXIMATELY 900 MILLION

PEOPLE DEFECATE IN THE OPEN © UNICEF/UN055381/Romana ON A DAILY BASIS An estimated 2.3 billion people – one home during their menstrual cycles. Economics, global economic losses 800 CHILDREN UNDER FIVE DIE out of every three in the world today – This often causes girls to drop out of from poor sanitation were estimated at live without access to basic sanitation, education, forming a vicious cycle that US$223 billion in 2015, an increase of EVERY DAY FROM DIARRHEAL of which approximately 900 million still makes it difficult to break out of poverty. over 20 percent from five years earlier. DISEASES defecate in the open on a daily basis. Not only is it embarrassing to In the same year, poor sanitation cost These are figures with a devastating defecate in the open, but having to find the Asia-Pacific region an estimated human cost: an estimated 800 children a place away from school or home to $172 billion, Latin America and the ECONOMIC LOSSES ESTIMATED AT under five years of age die every day relieve themselves also puts women Caribbean $22.2 billion, and Africa from diarrheal diseases caused by a and children at risk of harassment and $19.3 billion. US$223 BILLION IN 2015 lack of hygienic water and sanitary living assault. Global sanitation is an issue we can conditions. This sanitation crisis cripples no longer afford to ignore. Lack of basic sanitation in schools opportunities for growth and can cause girls to fall behind because development in nations across the they do not have anywhere to dispose globe. According to research conducted of sanitary pads, forcing them to stay by LIXIL in collaboration with Oxford

1 LIXIL'S APPROACH

DRIVING SCALE THROUGH STRATEGIC PARTNERSHIP

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 © UNICEF/UN0205847/Sokhin that will contribute to global efforts to improve access to basic sanitation for 250 million people around the world by LIXIL. Both partners bring years of of sanitation markets – involving the 2021. knowledge and expertise to the table: development of enabling environments, Since 2013, the two organizations LIXIL as a maker of pioneering water improving product supply and skills, LIXIL'S APPROACH have collaborated on several projects and housing products, and UNICEF and supporting opportunities for in Africa to provide people in need of with its track record of improving affordable finance. LIXIL and UNICEF Every person on the planet dreams which are currently undergoing field which presents vast potential for global toilets with access to locally-adapted water, sanitation, and hygiene (WASH) encourage other companies and of a better home, and LIXIL’s higher tests; and its Green Toilet System, economic growth while addressing sanitation products designed by practices in over 100 countries. organizations to enter and expand this purpose is to help them achieve that which has been installed in a refugee one of the most urgent and grand This new partnership seeks to market to help improve the future of all dream – whether it is by renovating camp and which LIXIL plans to transfer challenges of our time, achieving provide people with access to quality children, families, and communities. their kitchen in Tokyo or by installing to a local company in East Africa to universal access to improved and sanitation products, putting an end their first toilet in Nairobi. increase its impact and reach even safely-managed sanitation (SDG6). to the health-threatening practice of In response to the global sanitation further. Through these activities, LIXIL The Sanitation Economy monetizes open defecation. Joint programs in crisis, LIXIL has pledged to provide is building sustainable businesses toilet provision, products and services, Ethiopia, Tanzania, and Kenya aim to better sanitation to 100 million rooted in local communities, helping biological resources, and data and showcase the business opportunities people by 2020. As a global leader to solve social problems, all while information to provide benefits across associated with demand for toilets in sanitary products, LIXIL is taking contributing to the long-term growth of the economy and society. and other sanitation products and Note: UNICEF does not endorse any company, the technology and expertise it has the company. According to research by the provide lessons for the development brand, product, or service. developed in global markets and To ensure we can expand scale as Toilet Board Coalition, a Geneva- applying it to the sanitation challenge. quickly as possible and that these based partnership in which LIXIL is SUSTAINABLE DEVELOPMENT GOALS To address the world’s complex, activities are sustainable, LIXIL treats a founding member, the Sanitation multifaceted sanitation problems, SATO like any other business, the Economy in India alone is estimated The United Nations Sustainable like poverty, hunger, sanitation, and LIXIL is providing multiple solutions only difference being that the SATO to be a $62 billion per year market by Development Goals (SDGs) is a concrete gender equality, which lay the path for tailored to the unique circumstances business has both financial and social 2021. plan of action outlined in Transforming sustainable development around the and market needs of individual targets to achieve. Our World: The 2030 Agenda for world. regions. This includes its SATO range This approach of treating SATO Sustainable Development, which was LIXIL reflects the SDGs’ approach in of toilet products, which has been as a business, not as CSR, also adopted by the UN General Assembly its corporate responsibility strategy and commercialized; its Micro Flush Toilet demonstrates LIXIL’s belief in the in 2015. The 17 goals outline over uses the goals as a broad guideline when System and Portable Toilet System, prospects of the Sanitation Economy, 100 global targets for important issues forming management decisions.

2 THE SATO V-TRAP CONNECTION SYSTEM 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 SATO TOILET SYSTEM switch the direction of human waste between the two pits. LIXIL’s new SATO Having to defecate in the open, into To deliver sustained improvements V-Trap has been specially developed to an open pit, or over an inadequate to sanitary conditions for as many meet the needs of the Indian market. pit latrine exposes millions of people people as possible, LIXIL is focused While retaining the original SATO design “People that have actually used our product say to odors and disease. To combat this on developing SATO operations in a with a self-closing trap door, which that they can use the toilet throughout the year problem, LIXIL has developed the tailored way to meet local needs. helps to conserve water, minimize odor, SATO series of products, the first Producing SATO toilets locally keeps as well as keep out disease-carrying because they don’t require as much water, while model created with funding from the costs down and facilitates broader insects, the SATO V-Trap is designed their children can go to the bathroom by themselves Bill and Melinda Gates Foundation and distribution. Selling SATO toilets through so users can switch the flow of human launched in Bangladesh in 2013. local partners creates employment waste between pits easily. now, safely and without fear.” Users pour in a small amount of and more concrete and entrenched Daigo Ishiyama, Director of Marketing and Technology, SATO business water to flush away waste, after which local operations. By establishing a local a counterweighted trap door closes Make, Sell, Use cycle, individual regions to keep insects and odors away. can independently and consistently GREEN TOILET SYSTEM SATO products are safe for children, improve their own sanitary conditions. The Green Toilet System offers a no water to transport human waste, to safely treat human waste and easy to clean, and affordable. Each compost-based system to treat waste. circumventing the need for a traditional recycle it as fertilizer. In October 2018, *This is calculated by assuming an average of five one is designed to suit the needs users for every SATO unit shipped as of March 2018. By separating solid and liquid waste, sewage system while protecting LIXIL announced plans to transfer the and preferences of users in different the toilet enables maintenance workers groundwater from contamination. With technology to a Kenyan company, ACE regions. More than 1.8 million SATO to easily collect waste from tanks and the help of the United Nations Human Environmental Consultancy, to facilitate units have been shipped, enabling transport it to a treatment facility. Settlements Programme (UN-Habitat), its widespread use with local expertise improved sanitation for approximately 9 Once turned into fertilizer and soil LIXIL was able to install the Green Toilet and infrastructure. million people so far.* conditioner, it can be used for farming. System in a refugee camp in Kenya, The Green Toilet System also requires which will enable the local community

4 SATO TOILET SYSTEM SATO TOILET SYSTEM

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

CASE STUDY: infrastructure in place that is more for All project in Japan, to UNHCR to ROHINGYA REFUGEE durable and can support thousands distribute in the refugee settlement of people and meet humanitarian areas where it operates as a focal SETTLEMENTS standards. SATO was chosen as one of agency. This helped to improve sanitary More than 730,000 Rohingya escaped the settlements’ standard toilet models conditions in preparation for the to the Cox’s Bazar area in Bangladesh because of its affordable price and monsoon season. As of August 2018, since violence broke out in Myanmar’s ability to minimize insects and odors. UNHCR and its partners constructed Rakhine State in August 2017. The This allowed humanitarian partners to more than 6,000 latrines, benefiting vast majority reaching Bangladesh create a standardized infrastructure and 125,000 refugees. Each product in the SATO series In September 2017, SATO was “It uses less water and are women and children, and more give the community an efficient way to is designed for the needs and chosen to receive funding through is clean. It has a lid that than 40% are under the age of 12. maintain hygiene and remove waste. In preferences of its local users. Some Grand Challenges Canada’s Urban Now that several months have passed December 2017, LIXIL donated 5,000 toilets are made for regions that Sanitation Challenge. The SATO opens and closes for since the attacks, it is now time to put SATO toilets, raised through its Toilet do not use concrete when building business is currently developing new odor control. That is good latrines, while other toilets are made for production systems in several countries TOILETS FOR ALL cultures that prefer sitting on a toilet to to reach LIXIL’s goal of bringing safe because you don’t mind squatting over one. sanitation to 100 million by 2020. having a toilet in your In 2017, LIXIL began its “Toilets for and Africa—totaling 208,805 toilets. SATO toilets are currently used home.” All” initiative in collaboration with UN The aim of this initiative is not only by local communities in over 20 organizations and international NGOs. to donate SATO products to regions countries, including Haiti, Mauritania, Sanjay Patel, Home owner For every LIXIL shower toilet sold in where there is an urgent need for them Ghana, Nigeria, Zambia, Malawi, Buliya Khedi, Madhya Pradesh, India Japan between April and September but also to raise awareness of global Rwanda, Uganda, Kenya, India, Nepal, 2017, one SATO toilet will be donated to sanitation issues within Japan. Bangladesh, Indonesia, and the developing countries, primarily in Asia Philippines.

6 7 MICRO-FLUSH TOILET SYSTEM

Using far less water per flush than a and accumulated water prevent odors regular toilet, and recycling sewage from entering the room. A steeply water to assist the flow in outside angled pipe connected to the toilet and pipes, the Micro Flush Toilet System sewage water system assists the overall significantly reduces the consumption flow of waste. of precious clean water. It is particularly aimed at mitigating problems related 1L 1L 1L to scarce or unreliable water resources in urban environments where the population is rapidly increasing. Suitable for both stand-alone homes Drain and multi-unit buildings, the system Pump 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 Sanitary sewage Re-uses sewage water to carry waste operated with a handle, and the valve storage tank

The Portable Toilet System is an in- odorless toilet from which human minimize odors and can be easily In response to the global sanitation crisis “Our activities will also demonstrate home sanitation product designed waste can be collected and treated placed in any household. Its removable and its devastating effect on the world’s the business opportunities evident in the for urban slums that lack proper hygienically and efficiently. cartridge can be transported from people, LIXIL will continue leveraging sanitation economy, with the intention sanitation infrastructure. It is now being The system contains a compact individual homes to a designated its scale and expertise to deliver of encouraging more players to enter developed and field-tested to offer stand-alone toilet and a collection collection station, where the waste useful toilet solutions to developing and expand this market, ensuring its disadvantaged households a virtually station. The toilet is designed to inside the cartridge is deposited and communities. sustainability. Most importantly, these the cartridge cleaned. Professional “The challenges are complex, local, activities will demonstrate that innovative waste treatment companies collect and enormous. No single organization partnerships between members of the waste from the station and transport it can solve them alone. What we can public and private sector can and will to an offsite treatment center. achieve with partners is so much greater improve the quality of life for people and The Portable Toilet System was than what we can do alone,” said Jin build safer, happier futures for all.” recently tested in the Philippines with Montesano, Executive Officer and Collection Treatment Station Site the cooperation of local public and Senior Managing Director, Public Affairs, private organizations, and feedback Investor Relations, External Affairs, from people who used the system Corporate Responsibility, LIXIL Group is now being reflected in product Corporation development.

8 9 LIXIL Group Corporation 36F, Kasumigaseki Building, 3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo 100-6036, Japan www.lixil.com

*XW8700 * XW8700 01 December 01. 2018 Printed in Japan