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FY2014 FY2013
TOTO has been holding yearly stakeholder dialogues since 2004 with the aim of facilitating two-way communication with customers. In fiscal 2013, we engaged in dialogue with customers on a theme of "Future Initiatives by the TOTO WATER ENVIRONMENT FUND," and we engaged in dialogue with experts on a theme of "Human Rights Issues to be Tackled by TOTO." We intend to use the valuable feedback and suggestions to improve our future activities, and will pursue initiatives aimed at making TOTOa truly global company.

Dialogue with Customers Dialogue with Experts

Dialogue with Customers

Status of responses to opinions given in 2012

We hope TOTO will proactively share information about the corporation's efforts regarding issues such as energy conservation during the manufacturing process, recycling of used products, etc., in addition to environmental contributions through product water-saving functions.

We discuss all of our efforts towards realizing the TOTO Green Challenge in corporate reports and on the "Our Environmental Initiatives" page. We also introduce in detail specific figures and examples of TOTO initiatives in terms of energy conservation in the manufacturing process (manufacturing initiatives), used product recycling (conserving natural resources) and other important areas. In addition, we also share various kinds of information to educate private customers about water and the environment. For example, our "environmental communication page for customers" includes "A story that starts with water: Connecting, and being connected," which conveys in an easy-to-understand way the connection between water used in our daily activities and the global environment. This page also features "Saving water to save electricity," which conveys in a readily understandable way how water conservation contributes to power conservation, and "Green story," which talks about the ideas of developers and the stories behind product development.

We hope TOTO will share information about things such as product designs so that consumers can actually complete simple part replacements and repairs on their own.

We make various kinds of readily understandable information publicly available on the TOTO website in connection to after-sales support so that customers can carry out minor repairs and adjustments, regular maintenance and cleaning, and purchase supplies and parts, etc.

We would like instruction manuals that are easy to understand, containing only the information that people really need to know in order to use our products.

TOTO endeavors to create instruction manuals that are easy to understand from the point of view of TOTO product users. Our activities in this regard are highly regarded, and at the Japan Manual Awards 2013, were awarded the "Manual of the Year," the highest award there is for user manuals, for our manuals including the manual for the "Sazana" system bathroom released in August 2012.

Dialogue Hosting Outline

February 24, 2014 (Monday) TOTO Headquarters (Kitakyushu, Fukuoka)

February 24, 2014 (Monday) TOTO Headquarters (Kitakyushu, Fukuoka)
Theme Future Activities for the TOTO Water Environment Fund
Participants Seven people (four private customers, and three NPO-related individuals)
Facilitator Mr. Kastuhiko Sawa
EPO Kyushu Coordinator
Kyushu Environment Partnership Office, Ministry of the Environment
Participants from TOTO Three people (persons in charge of divisions related to CSR and environmental contribution activities)
Event details Participants visited the plant and TOTO History Museum: 10:00 - 12:00
TOTO and participants exchange opinions: 13:00 - 15:00

Evaluations and Proposals Received during the Dialogue

Evaluations of TOTO

  1. We are really grateful that the TOTO Water Environment Fund includes not only subsidization but also volunteer activities, in which numerous employees and their families participate.
  2. The plant was also very clean and the employees greeted us with a smile. It's a very welcoming and pleasant plant.
  3. There were more manufacturing processes done by hand than expected, which showed us the importance of manufacturing.
  4. There was a strong feeling of the scale of the founder's concept and vision. The employees were also very warm and made a positive impression. It would be good to convey this more fully to the public.

Proposals to TOTO

<Strengthening ties with NPOs>
  1. In addition to financial assistance, NPOs require presentation skills and knowhow and communication ability. We hope TOTO will consider providing support from these angles.
  2. Could there be some opportunities for a frank exchange of opinions between NPOs and businesses?
<Training the next generation>
  1. It would be good to use the environmental protection knowhow of TOTO to develop environmental education tools such as school materials.
  2. TOTO could consider cooperating more with students. Students would be able to show their abilities more if they could participate from the planning stage.
  3. We hope TOTO will also consider such support for student surveys and research from the viewpoint of next generation training activities.
<Potential for contributions other than environmental contributionsn>
  1. We would like you to consider, in addition to environmental activities, a worldwide toilet cleaning project unique to TOTO as an activity that can reach through to hygienic lifestyles.

Comments on the event

Mr. Katsuhiko Sawa
Mr. Katsuhiko Sawa
EPO Kyushu Coordinator
Kyushu Environment Partnership Office, Ministry of the Environment
We promoted an exchange of opinions and discussions from a partnership perspective on the theme "Strengthening connections between the business and the region, increasing activities and reporting them". The dialog started with participants from environmental NPOs, students, the media, public bodies and intermediary organizations for support sharing daily activities of participants and contact points and concerns of participants about TOTO from their standpoints and generations. They next proposed ideas and plans for wider communication and stronger cooperation.
In particular, the TOTO Water Environment Fund is fulfilling a great role in terms of a structure that supports local activities both financially and with the solid engagement of human power (employees). There is a strong sense of expectation about cooperation towards regional and organizational problem resolution in the future.
Specifically, it is considered essential to build upon the processes and various main components of TOTO's role as a global company with close ties to the region in terms of personnel training (experience interchange and skills improvement), development of town planning, activation of local events, cooperation with young people (project planning and implementation), and developing teaching materials, which are based on the TOTO Water Environment Fund management basis.
Also, above all, the presence and value of TOTO can be increased by conveying these activities from Kokura, Kyushu.
Mr. Yoshimi Sigenaga
Mr. Yoshimi Sigenaga
General Manager
ESG Promotion Department
TOTO Ltd.
In terms of results up to fiscal 2012, the Water Environment Fund, which began in fiscal 2005, has also shown a great increase, with a total of 133 organizations receiving assistance, and 36 prefectures in Japan and seven countries overseas receiving assistance. In the dialogue this year, we had a lively exchange of ideas with the stakeholders about the direction and growth of the Water Environment Fund in the future. We would like to thank all those who took part.
We came to realize many things from the new proposals and possibilities for cooperation with TOTO that the participants provided from their own points of view. Their opinions and proposals will be reflected in future activities, which will contribute to the continuous growth of the company.

Dialogue with Experts

Dialogue Hosting Outline

March 5, 2014 (Wed) TOTO Tokyo Shiodome office

March 5, 2014 (Wed) TOTO Tokyo Shiodome office
Theme TOTO Group Human Rights Due Diligence Initiatives
Participants
Kaori Kuroda
Kaori Kuroda
Executive Director
CSO Network Japan
Facilitator
Hiroshi Ishida
Hiroshi Ishida
Executive Director
Caux Round Table Japan
Participants from TOTO 4 people (CSR department chief, personnel management and planning)
Event details
  • Explanation of from TOTO (TOTO Group Human Rights Due Diligence Initiatives)
  • TOTO and participants exchange opinions

Endorsement (Statement of Human Rights Due Diligence Status Check)

CRT-Japan
Caux Round Table Japan herewith confirms that TOTO Ltd. has understood a holistic approach to human rights due diligence, shown as the framework of Sustainable Navigation (for details, see: http://www.crt-japan.jp/EN/files/Holistic_Approach/intro.html), and undertook the following activities. Based on the Human Rights Issues by Sector (2013) formulated through Human Rights Due Diligence Workshop at the Nippon CSR Consortium, TOTO mapped potential and actual human rights impacts in its value chain and existing initiatives within the company. Subsequently, TOTO selected three themes in accordance with their levels of materiality, and had a dialogue with experts on these themes including measures to be taken for the future.
I look forward to seeing how TOTO Ltd. will determine the highest-priority issues from the perspective of significance of impacts and business relevance, and develop concrete action plans and programs.

The holistic approach to human rights due diligence and TOTO's current status of implementation:

The holistic approach to human rights due diligence and TOTO's current status of implementation:

Identifying relevant human rights issues through dialogue with experts

Identifying relevant human rights issues through dialogue with experts

Comments made by the outside experts during the dialogue

In the dialogue with outside experts, we received the following comments on three selected themes. We will benefit from their advice in our future human rights initiatives.
  1. CSR procurement in the supply chain
    Soil and stone, which are the major materials of TOTO's sanitary ware, are raw materials potentially involving a high risk of human rights violation especially in terms of labour practices. For the next step, TOTO should identify regions at high risk, and take appropriate measures to identify and address potential and actual adverse human rights impacts.
  2. Labour practices in TOTO's factories
    When it comes to labour practices, TOTO's factories and supplier's sites need not necessarily be distinguished; it is also effective to review labour practices by focusing on soil and stone which are a potential high risk area.
  3. Consumer issues
    Since there is already a well-established system for customer response services (reflection of customers' opinions in product development and response to customers' inquiries), it would be good to focus on activities that would make a positive impact on human right conditions.