LION
Integrated Report

2020
Sustainability

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

Editorial Policy and Lion’s Disclosure
Editorial Policy
Lion views this report as an important tool for presenting its sustainability initiatives and drawing on stakeholder opinions whilefurthering corporate activities.
Lion Integrated Report 2020: Sustainability Editorial Policy

Referenced Guidelines:• Since 2011, we have systematized our initiatives for sustainability• The Environmental Reporting Guidelines (2018) issued by thein accordance with ISO 26000, an international standard
concerning corporate social responsibility. This report is

Ministry of the Environment• GRI Sustainability Reporting Standards issued by the Global

structured to reflect this.

Reporting Initiative• This report discloses our Sustainability Material Issues and our• ISO 26000: 2010 Guidance on social responsibility issued by
the Japanese Standards Association

progress toward the medium-term sustainability objectives

Comparative Tables for Referenced Guidelines

corresponding to Lion’s management plan.

https://www.lion.co.jp/en/csr/report/#sec03• For ease of access, links to key Lion webpages are marked by a
icon.

Scope of Coverage:• GRI Sustainability Reporting Standards were used as a reference
for producing this report.

Lion Corporation and all of its consolidated subsidiaries arecovered, in principle.

• L ion’s sustainability activities, including some information notprovided in this report, are comprehensively presented on
our website.

* Where the scope of coverage of reported activities or data differs from theabove, a description is provided.

Period Covered:
From January 1, 2019 to December 31, 2019
*Some parts also include information about 2020

Published:
June 2020

Lion’s Disclosure
Investor Relations
IR news, quarterly
financial statements,
shareholders
meetings, securities
reports, etc.

Information not included in
the integrated report isavailable on Lion’s website.

Company overview,
management vision,
message frommanagement,
corporate governance,
corporate compliance,
research &development, etc.

https://www.lion.co.jp/en/company/

1

Lion Integrated Report 2020: Sustainability

Lion’s approach tosustainability, social
contribution activities,
SDG-related
initiatives, etc.

LION
Integrated Report

2020
Sustainability

Lion Integrated Report 2020: Sustainability is published tohttps://www.lion.co.jp/en/ir/

About Us

Sustainability

supplement the Integrated Report as a tool for reporting in
LION
Integrated Report

greater detail Lion’s activities aimed at achieving sustainability.

2020

https://www.lion.co.jp/en/csr/

Products

Lion
Integrated Report
2020

Products offered by
Lion, presented bycategory
https://www.lion.co.jp/en/products/

Consumer Issues

Community Involvement
and Development

Organizational
Governance

CONTENTS
Lion’s Sustainability

Core Subjects of ISO 26000

3The Lion Group’s History of Addressing Social Issues

E 17 The Environment

5Lion’s Sustainability

7

Sustainability Material Issues and Objectives for 2030

23 Human Rights

25 Labor Practices• Promoting Environmental Initiatives for a
Sustainable Planet

S 30 Fair Operating Practices• Creating Healthy Living Habits
32 Consumer Issues
132 020 Sustainability Material Issues andProgress toward Objectives

36 Community Involvement and Development

G 39 Organizational Governance
42 External Evaluations / Participation in External Groups

Lion Integrated Report 2020: Sustainability

2Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

The Lion Group’s History of Addressing Social Issues

Oral Care
From 1896

From 1913

Cavity prevalence amongchildren at 96% /Promoting oral care

Started educational activities tofoster healthy tooth brushing habits

From the 1960s
Expanding the market anddeveloping world-class products

Addressing diverse
oral health issues

White Lion

Established the Lion Foundation
for Dental Health (LDH)

Front
Held the first Lion oral hygiene lecture(The start of promotional and educational activities)

Lion Toothpowder(Japan’s first toothpaste with calcium phosphate,
which is highly effective for whitening teeth)(Promoting oral healthcare through LDH)

Back

Lion Toothpowder packets
printed with charity coupons

Held the first Oral Health Event ofTooth Brushing for Children(The starting point of Lion’s social contribution activities)

Teaching correct tooth brushing methods to children

Dentor Lion toothpaste

CLINICA Lion cavity prevention toothpaste(The first in Japan formulated to prevent pyorrhea)(The world’s first toothpaste formulated withthe enzymes that break down dental plaque)Cleanliness and Comfort
From 1891

From the 1950s

From the 1960s

Start of soap manufacturing andpromotion of correct laundry methods

Addressing healthproblems caused byparasites on vegetables

Addressing diverse lifestyle needs

Kohyo Soap
(Beauty soap produced in Lion’s early days)

Lipon F
Laundry lecture held by Lion Laundry
Science Laboratories(Japan’s first kitchen detergent
for washing fruits,
vegetables and tableware)

Mama Lemon

CHARMY Green(Dish and vegetable detergent thatis gentle on the hands)(Kitchen detergent that is gentle on the hands
and strong against grease)

Environmental Conservation
From the 1920s

From the 1960s

Use of plant-derived ingredients

Addressing foaming in rivers, eutrophication in lakes and marshes and otherwater environment issues with advanced technology

Plant-derived Lion Laundry Soap
(Japan’s first plant-derived household
laundry soap)

3

Lion Integrated Report 2020: Sustainability

Dash

Murin TOP

(Laundry detergent formulated with thehighly biodegradable surfactant AOS)

(A phosphate-free laundry detergent formulatedwith enzymes to be environmentally friendly
while maintaining high detergency)

Community Involvement
and Development

Consumer Issues

Organizational
Governance

Lion’s origins lie in soap and toothpaste. Since our founding in 1891, we have strived to adhere to our
founding spirit of “benefitting society though business activities,” seeking to help consumers enjoy healthyliving through the provision of products while engaging in communication and educational activities aimed atpromoting better living habits. We recognized long ago that global environmental protection is an issue thatthe whole world shares and have taken environmental measures accordingly, such as developing
environmentally friendly products. To address evolving social issues and help bring about a better society, as
Lion’s founder
Tomijiro Kobayashi

well as to realize our management vision, we are moving forward with sustainability initiatives.

From the 1990s

From the 2000s

Addressing gum disease through the systematic
combination of products with clear functions

From oral care to whole-body health
Promoting oral health care

Dentor Systema Lion Series

CLINICA Advantage Series(Gum disease prevention)(Preventive dentistry promotion)

Activities to promote good oral
health care habits in Asia

From the 1990s

From the 2000s

Promoting good hand washing habits andrelated products, helping raise cleanliness andhygiene awarenessContributing to clean and comfortable living in Asia

TOP NANOX(now TOP SUPER NANOX)TOP SUPER NANOX overseas(Super-concentrated liquid laundry detergent)

KireiKirei Medicated Hand Soaps(With antibacterial agents)

KireiKirei overseas

Activities to promote the practice ofhand-washing in Asia

From the 1990s

From the 2000s

Reducing CO2 emissions by using primarily
plant-based washing ingredients

Addressing environmental issues through products and communication

The “eco Lion” Mark

Emeron Shokubutsu-Monogatari(Plant Story) beauty soap

(Mark printed on environmentallyfriendly Lion products)

1

Realizing a Low Carbon Society

2

Realizing a Sound Material-Cycle Society

3

Harmonizing with Nature

4(Beauty soap made with 100%plant ingredients)

Awareness and Education in Society
Promotion of Eco Vision 2020

(Implemented in three-year phases beginning 2012)Natera(Dish and vegetable detergent madeprimarily from natural coconut oil)

Environmental education
through events

Spark(Laundry detergent made from palm oil)

Development of
eco-friendly products(Participation in EcoPro)

Eco Vision 2020
p.22

Lion Integrated Report 2020: Sustainability

4Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

Lion’s Sustainability
Basic Approach
Companies are members of society, and their businessactivities have an impact on both society and the environment.
As such, companies have a corporate social responsibility(CSR) to contribute to the creation of a sustainable society fromthe perspectives of the environment, society and the economy.
Upholding its founding spirit of “benefiting society through its
business activities,” Lion, in addition to pursuing economic
development, has long considered its impact on theenvironment and society and worked to address related issues
through its business activities.

Today, “Becoming an advanced daily healthcare company” is
Lion’s management vision. To achieve this vision, Lion is
implementing its LIVE Plan Medium-term Management Plan
(2018-2020), and advancing management aimed at sustainablesocial development and business growth. Lion is working toaddress material issues in its management to reduce risks while
seeking to realize healthy minds and bodies for all through thepromotion of oral healthcare, cleanliness and hygiene habits.
Sustainability Management (Japanese)

https://www.lion.co.jp/ja/csr/management/

Contributing to the Achievement of the SDGs
The Sustainable Development Goals (SDGs) are a set ofcommon goals for 2030 established by the United Nations(UN) aimed at the realization of a sustainable world.
As an advanced daily healthcare company, the Lion Group’s
contribution will mainly be to the realization of SDG 3, “Ensure
healthy lives and promote well-being for all at all ages,” throughits products and services. At the same time, by pursuing
initiatives aimed at accomplishing the LIVE Plan, Lion willcontribute to the creation of a sustainable world, the ultimate
goal of the SDGs.
Lion’s SDG-Related Initiatives• Promoting oral healthcare• Establishing cleanliness and hygiene habits

https://www.lion.co.jp/en/csr/sdgs/

Risks and Opportunities Related to the Sustainability Material Issues in the Value Chain
Lion has comprehensively considered the entire value chain and its stakeholders to classify the Sustainability Material Issues as
either risks or opportunities.
Value Chain Stage

Raw Material Procurement

Lion’s Activities
Business partners

Sustainability Material Issues

Key stakeholders

Opportunities

Employees• Promoting Diversity• Promoting Work-Life Balance• Developing Human Resources• Reinforcement of Health and Productivity Management• Enhancing the Occupational Safety Management System

Risks• Building Responsible Supply Chain Management• Embedding Compliance• Enhancing Group Governance5

Lion Integrated Report 2020: Sustainability

Community Involvement
and Development

Consumer Issues

Organizational
Governance

Identifying Material Issues
Through the steps shown at right, Lion established a set of
Sustainability Material Issues to address in the years leading up
to 2020 based on its vision for society in 2030, including its
management vision and the SDGs. Lion’s Sustainability
Material Issues are for both Lion and society and, with the goalof helping to realize a healthy future for people and the planet,
the choice of these issues was informed by the broad
perspectives of business, environmental and social
sustainability. In identifying these issues, we comprehensively
considered the entire value chain and Lion’s stakeholders tounderstand the risks and opportunities they represent.
In 2020, we set new the Sustainability Material Issues andobjectives for 2030 as a vision for the Lion Group in 2030. In
particular, we have positioned “Promoting Environmental
Initiatives for a Sustainable Planet” and “Creating Healthy
Living Habits” as issues of top priority, and they represent
areas in which we must invest management resources tosecure a competitive advantage.
Our approach to identifying Sustainability Material Issues

Steps for identifying Sustainability Material Issues

Identify social issues

Step

1
Step

2
Step

3

Degree of impact on society

Extremely high

The Lion Group’s
Sustainability Material Issues

Degree of impact on businesses

Use by Consumers

Extremely
high

High

Step

4

Based on ISO 26000, the SDGs, the GRI
Standards and the ten principles of the UN Global
Compact, 39 social issues were identified.

Consider their degrees of impact onsociety and businesses
The issues identified in Step 1 were evaluated interms of their impact on society and businesses andreviewed by related departments, the director in
charge of sustainability and the Board of Directors.

Investigate the soundness of thematerial issues
The soundness of each item was investigated inlight of the viewpoints of third-party institutions
and the issues were revised as necessary.

Obtain approval from the Executive
Committee and Board of Directors
The Sustainability Material Issues identified wereapproved by the Executive Committee and
Board of Directors.

Disposal by Consumers

Customers
Shareholders and investors
Local communities• Pursuing Customer Trust and Satisfaction• Creating Healthy Living Habits• Promoting Environmental Initiatives for a Sustainable Planet• Respecting Human Rights• Promoting Risk Management

Lion Integrated Report 2020: Sustainability

6Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

Sustainability Material Issues and Objectives for 2030
With an eye to achieving its management vision of “Becoming an
advanced daily healthcare company” by 2030 and contributing
to the Sustainable Development Goals (SDGs), a set of sharedglobal goals for 2030, in 2018 the Lion Group established theLion Group Sustainability Material Issues. We are working toward
objectives based on these issues by the end of 2020.
The Lion Group believes that it is crucial to take a longer-term
perspective in order to ensure that it can continue to meet theneeds of society and customers and grow its businesses.
Accordingly, we have reexamined the material issues the Groupwill face in the period leading up to 2030 and set new objectives.
The 2030 objectives are based on previously identified material
issues but aim for a higher level of achievement and set
quantitative indicators for evaluating such achievement.

The world today faces enormous social problems, fromdemographic graying and declining birthrates to climatechange, marine plastics and pandemics.
The Lion Group has designated as top-priority material issues“Promoting Environmental Initiatives for a Sustainable Planet”
and “Creating Healthy Living Habits,” the latter of which
contributes to the realization of everyday happiness and has
been a constant focus of the Group since its founding. We areadvancing initiatives aimed at solving social issues through ourbusiness activities accordingly. Some of the innovative new
initiatives we are implementing in these areas are showcasedin this section.

Promoting Environmental Initiatives fora Sustainable Planet

Creating Healthy Living Habits

pp. 9-10

pp. 11-12

Lion’s Approach

Lion’s Approach

Reduce environmental impact over the entire life cycle“ReDesign” everyday rituals to realize healthy mindsof products, including during customer use

and bodies for all

Contribute toContribute toContribute to

the realization of athe realization of adecarbonizedresource-circulating

societysociety

everyday health andcomfort andlonger healthy life
expectancy

Related SDGs

Related SDGs

Lion’s Value Creation Foundation and Risk Management

PromotingDiversity

7

PromotingWork-Life
Balance

Developing
Human
Resources

Reinforcementof Health andProductivity
Management

Lion Integrated Report 2020: Sustainability

Enhancing the
Occupational
SafetyManagement
SystemRespecting
Human
RightsBuilding
Responsible
Supply Chain
Management

Pursuing
PromotingCustomer
Embedding
Risk
Trust andComplianceManagement
Satisfaction

EnhancingGroup
GovernanceConsumer Issues

Community Involvement
and Development

Organizational
Governance

Basic Approach
Through sustainable business activities that adhere to its corporate motto and management philosophy, the Lion Group is working
to address the Sustainability Material Issues with the aim of contributing to a healthy future for people and the planet.
The Sustainability Material Issues and 2030 Objectives
Material issues

Objective

Indicator

Reduce CO2 emissions throughout
business activities and product life cycles.

• CO2 emissions Down 30% comparedwith 2017 levels

3

6

7

9

Promote the 3Rs (reduce, reuse, recycle)
and renewable activities.

• Recycled plastic and biomass plastic
usage Double 2017 levels

12

13

14

15

Reduce water usage throughout productlife cycles.

• Water usage Down 30% compared with2017 levels (per unit of net sales)

Creating Healthy
Living Habits

Provide opportunities for everyone topractice oral healthcare whenevernecessary, regardless of living environment,
physical condition, economic status,
education or access to information, etc.

• Persons provided with oral healthcare
opportunities 1 billion

3

4

6

10

12

17

Promoting Diversity

Enable human resources with diverse
values and ideas to fully express theirindividuality and abilities and succeed
professionally, regardless of such factors as
nationality or gender.

• Employees who understand the necessityof diverse values 80% or more

58PromotingWork-Life Balance

Enable employees in all countries andregions to achieve high productivity andprofessional fulfilment in their work.

• Employees who feel a sense of
professional fulfilment 80% or more
• Productivity (profit per employee)
Increase from the 2019 level

3

8Developing Human
Resources

Foster human resources who think
independently and create value.

• Employees who are taking action tocreate new value 80% or more

5

8

10

Reinforcement of
Health andProductivity
Management

Increase the health awareness of and foster
healthy living habits among employees andtheir families.

• Employees and their family members who
get regular dental checkups
80% or more
• All employees are working toward
personal health goals

3

8

17

Enhancing the
Occupational Safety
Management
SystemEnhance systems to ensure compliancewith occupational health and safety in eachcountry and region, thoroughly enforce
safety awareness and facility safety andensure employee occupational safety,
healthy and comfort.

• Serious health and safety legal violations
Zero• Serious accidents and serious incidents
Zero

3

8

Respecting Human
RightsReinforce systems for preventing humanrights problems in line with the LION
Human Rights Policy.

• Serious human rights-related issues at theLion Group and suppliers Zero

5

8

10

16

Implement sustainable procurement withzero tolerance for child labor, forced labor orenvironmental destruction in line with the
Sustainable Material Procurement Policy andLion Group Supplier CSR Guidelines.

• Procurement of third-party certified paper,
pulp, palm oil and palm kernel oil 100%
• Procurement of third-party certified palm
oil and palm kernel oil from suppliers that
support efforts aimed at zero deforestation
100%

5

6

7

8

10

12

13

14

Reinforce systems for preventing corruption
and bribery in line with the LION AntiBribery Principles• Serious problems related to corruption orZerobribery at suppliers

15

16

17

Pursuing Customer
Trust and
Satisfaction

Promote and reinforce consumer-oriented
management by improving customer
support quality and the value of products
and services.

• Products in which consumer opinions arereflected 100%

3

10

12

Promoting Risk
Management

Implement comprehensive, extensive
management of risk-related initiatives andreinforce security systems to prevent
information leakage, etc.

• Risk incidents that significantly impact
management Zero
• Disclosure of information about serious
future risks At least once a year

8

12

Reinforce effective compliance initiatives.

• Serious compliance violations

5

10

Reinforce management transparency andmanagement systems in line with the Basic
Corporate Governance Policy.

• Disclosure in line with the Basic
Corporate Governance Policy
At least once a year

E

The
Environment

Community
Involvement
andDevelopment

Labor
PracticesS

Human Rights

Top priority material issues

Core Subjects

Promoting
Environmental
Initiatives for a
Sustainable
PlanetBuilding
Fair Operating
Responsible Supply
Practices
Chain Management

ConsumerIssuesG

Organizational
EmbeddingGovernanceCompliance
Enhancing Group
Governance

Related SDGs

Zero

17

10

17

16

16

Lion Integrated Report 2020: Sustainability

8Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

Sustainability Material Issues and Objectives for 2030
Promoting Environmental Initiatives for a Sustainable Planet
In 2019, the Lion Group established the LION Eco Challenge
2050, a set of long-term environmental objectives, toc o n t r i b u t e t h ro u g h i t s b u s i n e s s a c t i v i t i e s t o t h eaccomplishment of worldwide goals related to addressing
global-scale environmental problems, such as those identified

by the Paris Agreement and the Sustainable Development
Goals (SDGs). Aiming to realize a decarbonized, resourcecirculating society, we are putting into practice initiatives aimed
at solving issues related to decarbonization, plastics andwater resources.

LION Eco Challenge 2050
Healthy future for people and the planet

While striving for business growth, the Lion Group is working to contribute to global environmental sustainability,
aiming to realize decarbonized, resource-circulating society by 2050.
T hrough all of its businesses, the Lion Group will address the issues of decarbonization (climate change) and resource circulation(plastics, water resources) to contribute to the realization of a healthy future for people and the planet.
B y offering products and services based on an environment-conscious design, the Lion Group will reduce the environmental
burden attributable to the household use stage of its products’ life cycles.

Realizing a ResourceCirculating Society

Realizing a
DecarbonizedSocietyT he Lion Group will provide products that contribute naturally to environmental conservation without entailing user inconvenienceor sacrifice and promote the formation of eco-friendly living habits by engaging in interactive communication with consumers.

Challenge

1

Challenge

2

Lion will reduce CO2 emissions to zero throughout business activities by 2050.
2030 objective: 3
 0% CO2 emission reduction in comparison with 2017 levels in absolute quantity

Lion will reduce CO2 emissions by half throughout the life cycle of its products
by 2050.
2030 objective: 3
 0% CO2 emission reduction in comparison with 2017 levels in absolute quantity

Lion will realize advanced plastics recycling by 2050.
Challenge

32030 objectives: Promote the 3Rs (Reduce, Reuse, Recycle) and Renewable (use of sustainable resources)• Double the usage of recycled and biomass plastics in comparison with2017 levels in absolute quantity

Challenge

4

Lion will optimize water usage for sustainability by 2050.
2030 objective: 3
 0% water usage reduction per unit of net sales across product life cycles incomparison with 2017 levels

Related SDGs

Making Daily Living Environmentally Friendly
Through innovation and coordination with diverse
stakeholders, the Lion Group aims to provide consumers withproducts and services that “ReDesign” everyday habits and,through interactive communication, create effortless ways for
consumers to be more environmentally friendly just by living

comfortably. We hope to expand
these endeavors from theindividual lifestyle to the local
community and global levels.

Realizing a Decarbonized Society
Climate change due to global warming is causing extreme
weather around the world and greatly affecting all our lives.
Lion’s products help make consumers’ lives more comfortable
and convenient. However, each stage of our business
9

Lion Integrated Report 2020: Sustainability

activities, from raw material procurement to production anddistribution, creates environmental burden. The stages of
product use in households and disposal afterward represent
an especially large part of the environmental burden.

Consumer Issues

Community Involvement
and Development

Organizational
Governance

Aiming for Innovation and Providing New Value to Consumers
The use of Lion’s super-concentrated liquid laundry detergents(such as TOP SUPER NANOX) by consumers as part of their
daily lives helps them realize clean, comfortable living while
contributing to the reduction of CO2 emissions, plastic use andwater use.

By expanding our lineup of products like this that make dailyliving environmentally friendly, we aim to achieve businessgrowth while reducing the environmental burden.

CO2 reduction:

Making Daily Living Environmentally Friendly

High detergency, plant-based raw materials

Super-concentrated liquid
laundry detergents

53%(Product emissions,compared with
1990 levels)

Water saving• High detergency with less detergent• Carbon neutral thanks to plant-based raw materials1• Foam washes away easily, for one-rinse washing• Saves water,2 electricity and time

Super-concentrated detergent andcompact packaging

Refill products• Container size:• Transport efficiency:• Reduced plastic use (approx. 81% less than a bottle)• Use of biomass plastics3 reduces petroleum derived
plastic use

Approx. 40%
2.5 timesthat of conventional detergents

1. Carbon neutral: In which the CO2 emission and absorption over the product life cycle cancel each other out.
2. Water savings of 23 l (the equivalent of forty-six 500 ml water bottles) per wash when using a horizontal drum washing machine with a 9 kg capacity to wash 3 kg of clothing.
3. Biomass plastics are polymer materials that are produced by synthesizing, either chemically or biologically, materials which contain renewable organic materials.
(Source: Website of the Japan BioPlastics Association).

Realizing a Resource-Circulating Society
Because Lion manufactures and sells plastic products, it has asignificant responsibility regarding plastic-related problems.
To help fulfill this responsibility, since 2015, we have been
implementing an initiative to collect and recycle used

toothbrushes in cooperation with TerraCycle Japan. Many
municipal governments and schools across Japan have taken
part in this initiative. Through the Toothbrush Recycling Program,as a leader in oral care, Lion is also promoting good oral care
habits, aiming to help maintain and improve consumer health.

Focus

Toothbrush Recycling in Coordination with Municipal Garbage Collection
In April 2020, based on an agreement with Sumida-ku,
Tokyo, where its headquarters is located, the Sumida-ku
government set up toothbrush collection boxes at public
facilities and schools and other educational facilities (in atotal of 85 locations). As part of this initiative, in addition tocollecting and recycling used toothbrushes, Lion isproviding instruction on correct tooth brushing to children at
non-profit children’s facilities in the area, helping spread andfirmly establish healthy oral care habits.

Respond to the TCFDIn May 2019, Lion endorsed the recommendations of the Task
Force on Climate-Related Financial Disclosures (TCFD) andbegan evaluating the financial impact on its operations ofclimate-related risks and opportunities (scenario analyses*).

Going forward, we will leverage insights gleaned thus far while
enhancing our scenario analyses, considering response measuresand advancing disclosure based on the TCFD framework.
* Conducted with support from the Ministry of the Environment.

	The “Practical guide for Scenario Analysis in line with the TCFD
recommendations 2nd edition” was published on the Ministry of theEnvironment’s website in March 2020. Lion’s analysis results are on pp. 136-142.
http://www.env.go.jp/policy/policy/tcfd/TCFDguide_ver2_0_E.pdf
Lion Integrated Report 2020: Sustainability

10Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

Sustainability Material Issues and Objectives for 2030
Creating Healthy Living Habits
For more than a century, the Lion Group has been carrying out
educational activities aimed at spreading healthy oral care
habits. Today, these activities extend beyond Japan to other
Asian countries. In line with the Group’s purpose, the “ReDesign”
of everyday rituals, we are now launching ambitious new
initiatives to help create healthy living habits for even more
people by working to solve issues ranging from the personal to
the societal.

New Business Initiatives for 2030
Health is influenced not only by individual factors, such as genetics and living habits, butalso the culture and value of a person’s living environment, their socioeconomic status andother social factors.

Reducing Health
Disparities

Going forward, health disparities* caused by socioeconomic disparities are expected toworsen, becoming a greater issue around the world.
We aim to become an advanced daily healthcare company. Accordingly, we will createshared value for our businesses and for society and contribute to the realization of healthy
minds and bodies for all by addressing the social issue of health disparities.
As a first step, we are rolling out new business initiatives in oral care, an area that
contributes greatly to creating healthy living habits.

New Business Initiative: Inclusive Oral Care
Inclusive oral care refers to activities aimed at eliminating disparities in oral care

What Is Inclusive
Oral Care?

opportunities due to such factors as living environment, physical condition,
economic status, education and access to information and sustainably providing
oral care opportunities to all people, without exception, so that they can nurture
their natural capacity to live in good health through oral care.

Approach to Initiatives and Our 2030 Objective

Initiatives
Going
Forward• Expand business opportunities and help reduce
health disparities by eliminating disparities in oral
care opportunities

2030 Objective for Creating
Healthy Living Habits
Provide opportunities for everyone to• Provide a wide variety of products and services thatleverage IoT, AI and other advanced technologies

practice oral healthcare whenever necessary, regardless of living environ-

Current
Initiatives• Firmly establishing healthy oral care habits• Help increase oral care awareness through efforts to spread
preventive dentistry habitsment, physical condition, economic
status, education oraccess to information, etc.

* A concept put forth by Chiba University’s Professor Katsunori Kondo,
an expert in health disparities due to socioeconomic differences.

11

Lion Integrated Report 2020: Sustainability

Consumer Issues

Community Involvement
and Development

Organizational
Governance

Promoting Cleanliness and Hygiene Habits
In response to the worldwide spread of the novel coronavirus,
the World Health Organization (WHO) and Japan’s Ministry of
Health, Labour and Welfare recommend hand washing withsoap as a means of preventing infection. The Lion Group sells
hand soaps and disinfectants.

As such, to fulfil our corporate social responsibility, we not only
provide products, but conduct educational activities to spreadcorrect hand washing habits in Japan and across Asia.

Lion Daily Necessities Chemicals(Qingdao) Co., Ltd.

Lion Corporation (Korea)

An employee
teaching children
correct hand washing

Teaching correct hand washing at nurseryschools, hospitals and parks

Lion Corporation(Thailand) Ltd.

Lion Corporation

Students learning
correct hand washing at
an event

Children enjoying
practicing correct handwashing while learning

Southern Lion Sdn. Bhd.

Lion Corporation(Singapore) Pte Ltd

Lion Corporation(Hong Kong) Ltd.

An employee using
creative ways to teachchildren correct
hand washing

Lion Home
Products (Taiwan)Co., Ltd.
Nursery school students
enjoying learning about
hand washing througha quiz with theLion mascot

Related SDGs

The Lion Group’s Goals
The Lion Group has long worked to create better living habits,
such as practicing preventive dentistry and correct hand washing,in coordination with its business activities in the areas of oral careand cleanliness and hygiene. We believe that such efforts carryon our founding spirit of “benefitting society though businessactivities,” and that by sincerely working to solve evolving social
issues, we can achieve ongoing business development andcontribute to the realization of healthy minds and bodies for all.

Japan is said to be one of the first countries to face certain
challenges, such as severe demographic graying, and countries
across Asia are forecast to face similar issues in the near future.
In addition, globalization has created the conditions for infectious
diseases to spread rapidly around the world. Aiming tocontribute to everyday health and comfort and longer healthy life
expectancy, the entire Lion Group will continue to work as one
to create everyday happiness by creating healthy living habits.
Lion Integrated Report 2020: Sustainability

12Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

2020 Sustainability Material Issues and Progress toward Objectives
Overview
The Lion Group has implemented activities aimed at theresolution of the 2020 Sustainability Material Issues identified in
2018. We manage initiatives that address these material issues
using a PDCA cycle, and have confirmed that, overall, activities
focused on achieving our objectives were implemented

throughout the Group. In particular, our global activities
advanced through close collaboration with our overseas Group
companies, and we will continue to undertake further
measures going forward.

Environment

SocialAssessment Metrics
Achieved: Achieved 2020 Objectives.
In progress: Underway toward 2020 Objectives.

Governance

P (Plan)Core
Subjects

Sustainability Material Issues(Related SDGs)

The
Environment 1 Promoting Environmental

Initiatives for a Sustainable
Planet

E
p. 7

6

7

9

14

15

17

12

13

Basic Approach for Initiatives
Aimed at the 2020 Objectives•	Promotion of environmental business management
1) Promote and achieve the Eco Vision 2020 environmental targets (Global)
2) Establish the New Environmental Objectives 2030 to minimize environmental impacts over the entire life cycle of products, ­including at theWork together with consumers andstage of their use in customer households (Global)
local communities to actively promote3) Promote the appropriate use and management of chemical ­substances
environmental conservation activities,(Global)aiming for both a sustainable society
and the development of ourbusinesses.
4) Confirm and review the progress of environmental management
through top environmental audits and the Sustainability Promotion
Meeting*1 (Domestic)•	Enhancement of initiatives for promoting respect for human rights basedon the Group philosophy 1) Formulate a Group-wide human rights policy (Global)

Human
Rights2 Respecting Human Rights

5

8

10

16

17

Build a Group structure that respects
human rights.
•	Expansion of internal and external contacts for reportingand consultation1) 100% recognition of the AL Heart Hotline (Domestic)p. 23

3 Promoting Diversity

S

5

8

10

Expand creative business activities
through the application of diverse
human resources.

• Promotion of participation by women at the management level1) Develop female employees to drive the next generation of ­management(Global)2) Increase proportion of female employees at the management level to
20% (Domestic)

Create an uplifting feeling among
employees through work stylereforms.

•	Realization of “smart work”*2 to harmonize productive work and personal
lives1) Implement employee awareness and behavior surveys (Domestic)2) 70% usage rate of annual paid leave (Domestic)

Create personal dynamism by­developing human resources withdiverse and abundant ideas about
how to meet the expectations ofglobal stakeholders.

Creation of human resource development systems to cultivate personnel
who can learn and act independently

Labor
Practices
4 Promoting Work-Life Balance

382020 Objectives and KPI

p. 25
5 Developing Human Resources

5

8

10

*1 Held as the Environmental Conservation Committee until 2018
*2 Highly concentrated work styles aimed at improving productivity

13

Lion Integrated Report 2020: Sustainability

Community Involvement
and Development

Consumer Issues

Organizational
Governance

The Contribution of the Lion Group’s Initiatives to the Achievement of the SDGs
The Lion Group has identified 13 sustainability material issues
and is advancing initiatives toward their resolution. The chart
below shows the Sustainable Development Goals (SDGs) towhich our efforts to solve each of these issues contribute.

In particular, through our products, services and educational
initiatives, we are working toward the achievement of SDG 3,“Ensure healthy lives and promote well-being for all at all ages.”

The Lion Group’s 13 Sustainability Material Issues and the SDGs They Help Achieve
Sustainability
Material Issues

Core Subjects

E

1
2
3
4
5
6
7
8
9

The Environment
Human Rights

Labor Practices

S
Fair Operating Practices
Consumer IssuesG ommunity Involvement andC
Development

10

Organizational Governance

11
12
13

P

P

P
P
P
P
P
P
P

P

P

P
P

P

P
P
P
P
P
P
P
P

P

P

P
P

P
P

P

P
P

P

P
P

P
P

P

P
P

P
P

P

P

P

P
P

P
P
P

D (Do)C (Check)A (Action)

Achievements in 2019 (mid-term report)

Assessment

Measures and Challenges to Address in 2020

1) Continued activities aimed at achieving Eco Vision 20202)	Established the LION Eco Challenge 2050 long-term environmental objectives following
approval by the Board of Directors in May 20193)	Introduced a chemical substance information management system to efficiently promote
the appropriate use and management of chemical substances (Domestic)
Continued to promote the appropriate use and management of chemical substances bycomplying with country-specific laws and regulations (Global)4)-(1) Implemented top environmental audits by directors to promote management improvement and understanding of good example initiatives (Chiba, Osaka and Akashi Plant)4)-(2) Promoted environmental management and bolstered awareness at related divisions
through the Sustainability Promotion Meeting1)	Established the LION Human Rights Policy for both the domestic and overseas LionGroup and disclosed it on our website in January 2019
	Visited overseas Group companies to promote awareness and understanding of the LION
Human Rights Policy	Implemented e-learning about Lion’s human rights initiatives (100% participation) (Domestic)1)	AL Heart Hotline recognition rate: 98.6%
	Promoted awareness internally through the Compliance Awareness Survey and e-learning
about work environments and compliance (100% participation) (Domestic)	Promoted awareness of the AL Heart Hotline at overseas Group companies to foster
understanding of the hotline’s importance1) In progress2) Achieved1) Continue activities aimed at achieving the objectives of thevision2) Determine measures and KPIs to achieve the objectives of
LION Eco Challenge 2050

3) In progress3) Continue promoting the appropriate use and management ofchemical substances4)-(1) In progress4)-(1) Reduce risk through top environmental audits4)-(2) In progress4)-(2) Review progress through the Sustainability Promotion
Meeting

Achieved1)	Disseminate and confirm the status of human rights initiatives
at overseas Group companies
	Continue e-learning about Lion’s human rights initiatives

In progress1)	Continue to implement the Compliance Awareness Survey
and compliance education
	Promote awareness of and reinforce the functions of the AL
Heart Hotline at overseas Group companies1)	Halted Human Resources Development Training for Next-Generation Management torebuild the program. Appointed previous female participants as directors at overseas
Group companies (two individuals)
2) Proportion of female employees at the management level: 17.1%

1) In progress1)	Improve human resource development systems at the global
level2) In progress2) Continue promoting1)	Implemented the Lion Internal Awareness and Behavior Survey for all domestic employees, including those of domestic Group companies2)	Increased planned annual paid leave days from three to five days. Annual paid leave
usage rose to 73.7%, reflecting understanding of the importance of work-life balanceamong both managers and their subordinates.
	Increased number of users of the telecommuting system by amending it. The proportionof employees who had used the telecommuting system at least once came to 49.2%,
with regular users registering at 15%. The establishment of the system is contributing towork style reforms.

1) In progress•	Held the 2nd term of the ReDesign FORUM, which aims to generate new proposals
for resolving Company-wide issues through direct discussion between employees
and management•	Launched Lion Career Village (LCV) (online educational content usage: Over 60%)
	Held group case discussions 57 times. Participation among online content users: Over 20%

2) In progress

In progress1)	Continue the Lion Internal Awareness and Behavior Survey2)	Encourage planned annual paid leave usage
	Promote efficient work by expanding the number of employees trying the telecommuting system as well as regular users•	Hold the 3rd term of ReDesign FORUM to foster ReDesign
mindsets•	Enhance LCV content and promote continued usage as avenue for learning

Lion Integrated Report 2020: Sustainability

14

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

P (Plan)Core
Subjects

Labor
Practicesp. 25

Sustainability Material Issues(Related SDGs)

Basic Approach for Initiatives
Aimed at the 2020 Objectives

6 Enhancing the Occupational
Safety Management System

Enhance and thoroughly enforce
the Occupational Health and
Safety Management System
across the entire Group.

•	Thorough enforcement of occupational safety and the safetyof facilities
Zero serious accidents and zero serious incidents (Global)

Build a Lion health and productivity
management model appropriate
for an advanced daily healthcarecompany.

•	Expansion of support programs to aid employees in forming good
healthcare habits
1) 100% rate of receiving health checkups (Domestic)2) 100% rate of receiving dental checkups (Domestic)3) 100% rate of receiving age-specific cancer screenings (Domestic)

3

8

7 Reinforcement of Health andProductivity Management

3

8

17

Fair Operating 8 Building Responsible Supply
Chain Management
Practices
5

6

7

8

10

13

14

15

16

17

12

p. 30

S

ConsumerIssues9 Pursuing Customer Trustand Satisfaction

3

10

12

•	Build more advanced and sustainable supply chains
1) Implement supplier sustainability self-checks related toPromote highly effective manageprocurement (Global)
ment practices in the supply chain.
2) 100% implementation of supplier sustainability self-checks related
to procurement (Domestic)

Thoroughly enforce corporate
activities that earn and maintaincustomer trust across the entire
Group and further develop customer-oriented management.

•	Enhancement of reliability assurance systems covering the entire
supply chain•	Improvement of customer satisfaction through enhancement ofcustomer support quality•	Enhancement of security system through system construction andsupervisory management enhancement

Contribute to the creation ofhealthy living habits such as oral
healthcare, cleanliness andhygiene practices and habits inorder to extend healthy life expectancy and ensure people’s everyday well-being.

•	Implementation of activities to establish good healthcare habits suchas preventive dentistry and hand washing, in coordination withbusiness activities•	Contribution to the resolution of social issues based on co-existencewith communities, involvement of employees and enhancementof partnerships

Enhance the risk management
system for the entire Group.

Promotion of comprehensive and extensive risk management acrossthe entire Group

Enhance the effectiveness of compliance activities across the entire
Group.

•	Construction of a compliance management system	1) Expand familiarity with the Lion Group Charter for Corporate
Behavior and the Behavioral Guidelines (Global)
	2) 100% participation in compliance-related training (Domestic)

Engage in enhancing governancefor the entire Group.

Improvement of the Group governance system in accordance with the
Basic Policy for Corporate Governancep. 32

Community
Involvement andDevelopment 10 Creating Healthy Living
Habits

3

4

6

12

17

p. 36

11 Promoting Risk
Management

Organizational
Governance 12 Embedding Compliance

G

5

10

16

2020 Objectives and KPI

p. 39

13 Enhancing Group
Governance

16

15

Lion Integrated Report 2020: Sustainability

Consumer Issues

Community Involvement
and Development

Organizational
Governance

D (Do)C (Check)A (Action)

Achievements in 2019 (mid-term report)

Assessment

Measures and Challenges to Address in 2020•	Zero serious accidents and zero serious incidents (Global)•	Held the Safety, Hygiene and Disaster Prevention Meeting twice a year andcontinued to implement PDCA
•	The director in charge of safety implemented top safety audits to achieve zeroIn progressserious accidents and incidents (Odawara, Akashi and Chiba plants)•	Implemented e-learning for all employees to increase safety awareness (Participation:
99.8%)•	Hold the Safety, Hygiene and Disaster Prevention
Meeting twice a year and continue to implement PDCA
• Reduce risk through top safety audits• Implement e-learning about safety

Launched Lion-Style Health Support “GENKI” Action, increasing employee healthawareness and providing support for self-directed healthy behavior
1)	Rate of receiving health checkups: 100%2)	Rate of receiving dental checkups: 91.8%. Health guidance was provided bydental hygienists.
• Provided a subsidy program for professional care at dental clinics to promote thepractice of preventive dentistry (rate of receiving professional care: 58.4%)
3)	Rate of receiving age-specific cancer screenings: N/A (not implemented due totransition to “GENKI” Action)

Implement Lion-Style Health Support “GENKI” Action
Key measures:
1.	Build and implement an individual health management
system2.	Expand the practice of preventive dentistry byimplementing Professional Care 100% Action
3.	Implement programs aimed at the early detection of
three common types of cancer
Expanding the scope of cancer screenings
4.	Completely ban smoking inside Company buildings at all
times, including outside of work hours

1) In progress2) In progress3) In progress1)	Participated in the Supplier Ethical Data Exchange (Sedex) to reinforce supplier CSR 1) In progress­activity implementation2)	Implementation of supplier sustainability self-checks: 99.7%. Provided evaluation
results to suppliers as feedback (annual)2) In progress•	Held a second Asia QA Meeting to enhance the quality assurance capabilities of staff
in charge of quality at overseas Group companies by having such staff share
information. In addition to conventional quality management, participants discussed
customer support challenges in their respective countries, building a common
awareness of such issues at the Group level, and examined measures aimed at theirresolution (ongoing)
In progress•	Participated for the first time in a phone service contest to reinforce the customer
support quality of phone operators	This event helped our staff understand the level of service at other companies andstep up their own quality•	Implemented e-learning about information security and social media risks and basic
insider trading knowledge (100% participation)•	Promoted and continued preventive dentistry activities across the Lion Group	Held the Oral Health Event of Tooth Brushing for Children (in Japan and other Asian
countries, reaching 240,000 elementary school students)
	Implemented activities to spread healthy oral care habits through the LionFoundation for Dentistry Health (Domestic)	Implemented preventive dentistry activities in close coordination with experts andretailers (key countries: Malaysia, China, Thailand) (Global)
In progress•	Co-existence with communities: Formed partnerships with governments to promotehealthy living habits. These efforts reached consumers in the communities served bythese governments, encouraging healthy living habits.
	Involvement of employees: Junior employees in all job types, from R&D to sales andmanufacturing, implemented educational activities to promote hand-washing habits	Enhancement of partnerships: Implemented the Happy Marriage City Promotion
Project in cooperation with governments•	Continued the promotion of comprehensive and extensive risk management acrossthe entire GroupIn progress•	Reported on risk management progress in 2019 to the Executive Committee (annual)	Zero incidents of serious risk to business1)	Requested that overseas Group companies implement the Compliance Awareness 1) In progress
Survey to expand familiarity with the Lion Group Charter for Corporate Behavior andthe Behavioral Guidelines2)	Training participation: 100%. To strengthen employee awareness of compliance,
implemented new training on human rights and bribery in addition to that on theworkplace environment and compliance.
	Conducted the Compliance Awareness Survey of all employees, including part-time
employees, and provided feedback (response rate: 92.8%)•	Promoted stronger governance in accordance with the Basic Policy for
Corporate Governance.
•	Explained the outline of the LION Anti-Bribery Guidelines at overseas Group companies	Assured effectiveness through use in conjunction with the AL Heart Hotline function2) In progress

In progress1)	Expand number of countries in which we implement
sustainability self-checks
	Encourage key suppliers to join Sedex to further reinforce
sustainable supply chain management2)	Continue supplier sustainability self-checks•	Continue to hold the Asia QA Meeting. Further develop
quality control initiatives in each country•	Develop human resources with customer-oriented
management mindsets to enhancecustomer ­satisfaction•	Continue using e-learning content introduced in 2019
	Discuss overseas Group companies’ systems
and security measures with the goal of improving global
infrastructure•	Promote and continue preventive dentistry activities
across the Lion Group•	Promote and continue partnerships with governments•	Continue the promotion of comprehensive and extensive
risk management across the entire Group1)	Continue increasing awareness of the Lion Group Charterfor Corporate Behavior and the Behavioral Guidelines atoverseas Group companies	Implement the Compliance Awareness Survey atoverseas Group companies	Raise awareness of hotlines and strengthen ourconsultation and reporting contact functions to further
build up the compliance framework2)	Continue promoting initiatives toward 100% participationin e-learning
Assure effectiveness by establishing the LION ­Anti-Bribery
Guidelines

Lion Integrated Report 2020: Sustainability

16

Lion’s Sustainability

The Environment

Human Rights

E S G

Labor Practices

Fair Operating Practices

Related SDGs

The Environment
Basic Approach
We at the Lion Group believe it is our solemn responsibility to provide customer experience-based value inthe areas of health, comfort and cleanliness while protecting the global environment—the foundation ofhealth and daily living—in accordance with our aim of “Becoming an advanced daily healthcare company.”
In line with the Eco Vision 2020 environmental targets formulated in 2013, we are striving to realize asustainable planet while working to achieve our 2020 targets related to realizing a low carbon society,realizing a sound material cycle society, harmonizing with nature and environmental education.
Recently, spurred by the Paris Agreement in 2015 and the adoption of the SDGs, the movement towarda sustainable society in Japan and other countries has gained steam.
Taking this trend into consideration, in 2019 the Group formulated the LION Eco Challenge 2050, a set oflong-term environmental objectives. Going forward, the Group will ambitiously work toward therealization of a decarbonized, resource-circulating society.
Every day. For the Earth. (Japanese)

https://www.lion.co.jp/ja/csr/ecolion/

Environmental Guidelines
Lion’s Environmental Guidelines adhere to the spirit of the LionGroup Charter for Corporate Behavior, which states: “We shallplay a positive and active role in creating a sustainable societythat harmonizes economic development and environmental
protection.” Our Environmental Guidelines are the foundationof our environmental activities.

Environmental Guidelines
Lion will act voluntarily and proactively to reduce its burden on the

4. Developing Environment-Friendly Products

global environment in all processes of its business activities, from theContinue aggressive product development in tune with the Liondevelopment of products to the procurement of raw materials, pro-eco-standard and in light of life cycle assessment.

duction, distribution and sales as well as from use by customers and5. R educing Environmental Impacts Together with Our

final disposal. This will be done with due consideration given to real-Business Partners

izing a low carbon society to prevent global warming, realizing a

Strive to reduce environmental burden at every stage from purchas-sound material-cycle society with maximum usage of recycled

ing through the provision of products to customers in cooperation

resources and realizing a society harmonizing with nature to con-with suppliers of materials, outsourcing contractors and sales com-

serve people’s health, natural ecosystems and biodiversity.

panies.

1. Aiming for a Sustainable Society

6. Harmonizing with Nature

Operate an environmental management system and, through theTake into account biodiversity and air and water environments whileongoing maintenance and improvement of that system, protect the

conducting business and proactively address natural environment

global environment.

protection activities.

2. Complying with Legal and Other Requirements

7. Enhancing Environmental Protection Activities Based onComply with legislation, regulations and other measures pertaining to

Uniform Understanding of the Guidelines

environmental protection, and establish and implement voluntary

Disseminate the Environmental Guidelines to all employees, including

standards of conduct.

those of affiliated companies, raise awareness of environmental pro-

3. Setting and Verifying the Implementation of Environmental

tection among them and bolster environmental management activi-

Objectives and Targets

ties throughout the entire Lion Group.

Correctly understand the environmental impact of our corporate

8. Promoting Disclosure of Information

activities and, as far as technically and economically possible, estab-

Seek to maintain and promote communication with stakeholders

lish objectives and targets for improvement, while at the same time

involved in Lion’s businesses. These Environmental Guidelines areformulating, implementing and regularly verifying the implementation

freely available to anyone upon request.

of an environmental management program.

17

Lion Integrated Report 2020: Sustainability

Revised January 1, 2013

Consumer Issues

Community Involvement
and Development

Organizational
GovernanceE S G

Environmental Management
Environmental Management System
The purpose of the Lion Group’s Environmental Management
System is to identify, evaluate and remedy the adverse
environmental impacts of our business activities, products andservices, and to improve our environmental conservation
activities on an ongoing basis.
We strive to enhance systems for environmental management
and reporting with the aim of addressing environmental issues
globally. Data on overseas Group companies is available on
our website.
Environmental impact data for production sites overseas(Japanese)https://www.lion.co.jp/ja/csr/report/pdf/
environment-management.pdf
Status of ISO 14001 Certification
Lion acquired ISO 14001 certification covering all its plants
in July 2001. The certification was renewed to the latest
2015 version in June 2016, and the Japan Management
Association Quality Assurance Registration Center (JMAQA)
reviewed and verified that all Lion plants are operating inconformity with the requirements of the standard. Including
the plants of Group companies in and outside Japan, theLion Group continues to push ahead with its management
systems and environmental conservation activities byobtaining ISO 14001 certifications and ensuring all
operations are in compliance with ISO 14001.

Environmental Management Structure
To make our business grow while reducing the impact on the
global environment, in 2019 we consolidated the former
Environmental Conservation Committee into the newly
established Sustainability Promotion Meeting. Its members
consist of the Executive Officers, including the President, andrepresentatives of relevant divisions. The meeting deliberates
policy for responding to environmental problems and monitors
the progress of related efforts.

Legal ComplianceWith regard to revisions of environmental laws and regulations,
namely, the Act on the Rational Use of Energy, the Act on
Promotion of Global Warming Countermeasures, the Act on
Confirmation, etc. of Released Amounts of Specific Chemical
Substances in the Environment and Promotion of
Improvements to the Management Thereof, the Act on the
Evaluation of Chemical Substances and Regulation of Their
Manufacture, etc. and the Waste Disposal and Public
Cleansing Act, information is collected from administrative
agencies and industrial associations and then input into Lion’s
intranet system for information on chemical-related laws toensure that related departments are up to date on and fullycompliant with the latest developments.
We have also established waste management and otherinternal regulations to build up an appropriate management
structure. There were no violations resulting in fines or otherpenalties in 2019.

Pollution Prevention
Lion implements voluntary initiatives for reducing emissions ofchemical substances, including nitrogen oxides (NOx), sulfur
oxides (SOx), particulate matter and volatile organic
compounds (VOCs). We also strive to reduce chemical oxygen
demand (COD) through improvements in the reliability andregular maintenance of wastewater processing facilities.
Data on the management of chemical substances incompliance with the PRTR system* is available on Lion’s
website. We will continue to enhance our efforts to ensure
proper notifications and management of emission volumes.

Environmental impact data for production sites in Japan(Japanese)https://www.lion.co.jp/ja/csr/report/pdf/
domestic.pdf
2019 PRTR-designated substance emissions data for
production sites in Japan (Japanese)https://www.lion.co.jp/ja/csr/env/enhancement/pdf/
prevention.pdf* PRTR system
A system to measure, compile and publish chemical substance emissions volumes.

Together with the Environment (Japanese)

https://www.lion.co.jp/ja/csr/env/
Lion Integrated Report 2020: Sustainability

18

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

E S G

Enhancing Group-wide Management of Chemical Substances
Chemical substances are indispensable for people to lead
comfortable and fulfilling lives. Failure to properly manage
chemical substances, however, can result in accidents that put
human health and ecosystems at enormous risk. In addition tocompliance with related laws and regulations, Lion strives toensure the strict management of chemical substances at allstages from product development to use and disposal inaccordance with its own independent standards. We havebeen operating a Management System for Information on
Chemical Substances at Lion research and development sites
since 2018.
Chemical Substance Management (Japanese)

https://www.lion.co.jp/ja/csr/env/enhancement/

Lion Group Environmental Initiatives
Performance in the Second Fiscal Year of Phase 3 (2018–2020) of Eco Vision 2020
Eco Vision 2020 is being implemented in three phases ofthree years each over the nine-year period from 2012 to2020. The second fiscal year of Phase 3 (2018–2020) was
2019. In advancing toward the final fiscal year, 2020, all theemployees of the Lion Group worked together to promote
environmental initiatives.
* Achievements in Phase 3 of Eco Vision 2020 are listed on page 22.

Realizing a Low Carbon, Sound Material-Cycle Society
Lion works to reduce greenhouse gas emissions, as well as torecycle and effectively use resources, at each stage from raw
material procurement to disposal by consumers. We willcontinue to promote activities toward the realization of a low
carbon, sound material-cycle society.

Overview (The Related Information Web buttons below link to relevant pages of Lion’s Japanese website)
Procurement of Raw
Materials, Packaging
and Containers
Activities for
Realizing a Low
Carbon Society• Substituting plant-basedmaterials for petroleum
resources

Related Information Web• Substituting plant-derived
container materials for
petroleum resources
Related Information p. 10

Major Initiatives
Undertaken
by Lion• Improving energy efficiency byreviewing production
processes, introducing
energy-saving equipment
when upgrading facilities, anddownsizing products

Related Information p. 10
Office/Facilities• Energy-saving activities
throughout the Company,
including administrative, sales,
R&D and engineering divisions
Distribution after shipment• Increasing modal shifts during
the transportation of products• Improving logistics efficiency
through such means asincreasing the transportloading rate

Use byConsumers

Disposal by
Consumers• Substituting plant-derived
materials for petroleum
resources• Promotion of 3Rs (making
products more compact,refill packs, development ofRelated Information p. 20
containers made using• R educing power
recycled or less plastic)
consumption during product
Related Information p. 10
use with power-saving
products (requiring fewer
Related Information p. 20
rinses when washing)
Related Information Web
Related Information p. 10• Increasing environmental
awareness through products(environmental labels on
products that meet the Lion
eco-standard)

Related Information Web

Related Information Web
Activities for
Realizing a
Sound
Material-Cycle
Society19• Using plant-derived raw
materials• Using recycled materials

Related Information p. 10

Lion Integrated Report 2020: Sustainability• Increasing environmental• Promotion of 3Rs (making
Plantsawareness through products
products more compact,• Promoting zero emissions from(environmental labels on
refill packs, development ofplantsproducts that meet the Lion
containers made using• Reducing water consumption
eco-standard)
recycled or less plastic)
by recycling wastewater fromproduction processes andRelated Information p. 20
Related Information p. 20
utilizing rainwater• Reducing water usage during
Related Information Web
Related Information Web
product use with water-saving • Promoting the Toothbrushproducts (requiring fewer
Recycling Program
Offices/Facilities
rinses when washing)• Promoting Company-wide
Related Information p. 20
Related Information p. 10
green purchasing
Related Information Web
Related Information Web
Related Information Web

Consumer Issues

Community Involvement
and Development

Organizational
GovernanceE S GPromoting the 3Rs
In an effort to reduce the use of container and packaging materials, we areproactively promoting the 3Rs (reduce, reuse and recycle).

ReduceReuse

RecycleSmaller containers,
less packaging

Increase
refill products

Proactively use
recycled materials

Utilization of Renewable Resources
Lion is addressing the issue of marine plastic, which has become a global
environmental problem, by promoting the use of renewables (such as recycled andplant-based materials) together with the 3Rs with a view to reducing plastics used incontainers and packaging.

Environmental Communication through Products
In order to raise consumer awareness of the importance of environmental
considerations through its products, since 2014, Lion has put the “eco Lion” Markan environmental label known as on products that meet the proprietary Lion ecostandard, which is designed to evaluate products over their entire life cycles. Eachlabel includes our environmental logo and lists the factors that make the productenvironmentally friendly.
The Lion eco-standard (Japanese)

TOP SUPER NANOX refill pack

List of products with the “eco Lion” mark (Japanese)

https://www.lion.co.jp/ja/csr/ecolion/#sec2

https://www.lion.co.jp/ja/csr/ecolion/#sec4

Example Initiative

Promotion of Periodic Toothbrush Replacement
and Recycling
 ontributing to the SDGs by realizing “Good for theCmouth!” and “Good for the Planet!”
Lion has designated the 8th of every month as Toothbrush
Replacement Day in line with efforts to promote monthly
toothbrush replacement. In recent years, marine plastics havebecome a major social issue, and recycling is one way ofhelping solve the problem. By focusing on toothbrushes, which
account for more plastic use than any other Lion product, we
are working to contribute to the formation of healthy consumer
living habits while helping to reduce environmental impact.

Related SDGs

Toothbrush Replacement

Toothbrush Recycling

Good for the Mouth!

Good for the Planet!

Replacing toothbrushes withsplayed bristles helps
maintain and promoteoral health.

Used toothbrushes arecollected and recycled
into planters and otherplastic products.

Realizing everyday well-being andlonger healthy life expectancy

Sustainability of the Planet

Healthy future for people and the planet

Promoting Toothbrush*About the Toothbrush Recycling Program

Recycling

The program is open to all—just register in advance to participate as an

There is a concern that an increase in the frequency of
toothbrush replacement due to the promotion of toothbrush
replacement could lead to a rise in waste.

individual, school or other organization. Participants set up collection boxes in

To address this concern, Lion initiated the Toothbrush
Recycling Program,* a first in Asia, to collect and recycle used
toothbrushes, which were previously just thrown away, incooperation with Terracycle Japan. Adopting the perspectivethat each consumer who participates in toothbrush recycling is
an important partner, we are moving forward with the aim ofrealizing a resource-circulating society.

for plastic products (such as planters) made from recycled toothbrushes orCollection points

675(As of May 31, 2020)

Toothbrushes collected

683057(As of May 31, 2020)

which they collect used toothbrushes. A designated carrier then picks up theboxes of used toothbrushes, and the participants are awarded points based on
the weight of the toothbrushes collected. These points can then be exchanged
donated to support education or local communities.

Register for
freeCollect
toothbrushes

Collection by adesignatedcarrier (free)

Receive
recycle points

Toothbrush Recycling Program (Japanese)

https://www.lion.co.jp/ja/csr/toothbrush-recycling/

Lion Integrated Report 2020: Sustainability

20

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

E S G

Harmonizing with Nature
Lion considers biodiversity conservation at each stage of
operations from raw material procurement to disposal by
consumers. We implement biodiversity conservation initiatives
in coordination with local communities and promote lifestyleadjustments among consumers through products designed topromote harmony with nature. Also, by having each of ouremployees participate in activities to conserve biodiversity as
part of their environmental education, we are working to
spread awareness of biodiversity conservation at all ouroperating sites.

Overview (The Related Information Web buttons below link to relevant pages of Lion’s Japanese website)
Biodiversity on
Which Lion Relies

Watershed* Ecosystems of
Raw Material Production Sites
Procurement of Raw
Materials, Packaging
and Containers

Watershed Ecosystems Where
Our Plants are LocatedProduction

Watershed Ecosystems Where Consumers ResideUse byConsumers

Disposal by
Consumers• Plants used as raw materials • Cooling water and(oil palms, etc.)
unprocessed water for• Wood that provides the paper
equipment cleaning, etc.,
raw material for packaging
used at production sites

Possible Major
Impacts of Our
Activities on
Biodiversity• Impact of palm oil growers on • Impact of groundwater intake • Impact of water use by• Impact of wastewater andthe surrounding naturalby production plants on
consumers on the
packaging waste generated
environment and communities
surrounding natural
surrounding naturalby consumers on the(such as impact of illegal
environments andenvironment and communities
surrounding natural
logging of tropical forests oncommunities
environment and communities
wildlife habitats)• Impact of wastewater andexhaust gases from• Damage to the forest
environments that are theproduction plants on thesource of paper raw materials
surrounding naturalenvironment and communities• Impact of light and odors fromproduction plants on thesurrounding naturalenvironment and communities

Biodiversity Conservation Activities

Key Natural
Resources Used
by Lion• Promotion of procurement of
Activities tosustainable palm oils
Reduce Risks(participation in RSPO andpurchase of RSPO-certified
oils)

Related Information p. 31• Promotion of forest
conservation (use of thirdparty certified paper)• Tap water consumed during
use of our products• Reduction of production plant • Development of water-saving
waste
products• Reduction of water
Related Information p. 10
consumption at plants• Development of highly• Conservation of rivers andbiodegradable detergentsother ecosystems byimplementing purification
technologies on discharged
wastewater—• Surveying the environmental
impact of surfactants

Related Information Web

Related Information p. 31• Conservation and monitoring • Educational activities teaching • Promotion of 3Rs (makingof habitats in the watersheds
consideration of water andproducts more compact,
where production plants arenatural environments
refill packs, development oflocated (activities include(activities include forest
containers made using
protection of endangered
maintenance at Lion Forest in
recycled or less plastic)
loggerhead sea turtles,
Yamanashi and water-related
Related Information p. 20
maintaining biotopes andenvironmental research
Related Information Web
removal of non-native species
support through the Japan
from beaches)
Society on Water
Environment)
Related Information Web

Activities to
ExpandOpportunities—* Watershed: A range of ecosystems, including forests, rivers, domestic woodlands, tidal flats and beaches, that is connected by water.

Example Initiative
Forest Maintenance Activities at the Lion Forest in Yamanashi
Since 2006, Lion has conducted activities to help maintain forests,
which are an important water source. In 2019, a total of 149
employees participated in forest maintenance as part of new
employee training and voluntary activities (held twice). The activities
were conducted with local residents to share responsibility for the
maintenance of forests and the important role they play.
Cumulative participating employees :

21

1,726

Lion Integrated Report 2020: Sustainability

Biodiversity Conservation
Initiatives (Japanese)https://www.lion.co.jp/ja/
csr/biodiversity/

Community Involvement
and Development

Consumer Issues

Organizational
GovernanceE S G

Eco Vision 2020 Achievements and Targets

Education

Harmonizing with Nature

Greenhouse gases (domestic)

Within the
Company

Outside theCompany

Reduction ofgreenhouse gases
from businessactivities

Reduction ofgreenhouse gases
from post-use
products

Achievements in 2018

Achievements in 2019

Targets for 2020

Emission intensity per unit total
revenue
36% reduction (compared to 2010)*6
50% reduction (compared to 1990)*6

Emission intensity per unit total
revenue
40% reduction (compared to 2010)
53% reduction (compared to 1990)

Emission intensity per unit total
revenue
34% reduction (compared to 2010)
49% reduction (compared to 1990)

Absolute quantity
49% reduction (compared to 1990)*6

Absolute quantity
52% reduction (compared to 1990)

Absolute quantity
40% reduction (compared to 1990)

Emission intensity per unit total
revenue
9% reduction (compared to 2010)
53% reduction (compared to 1990)

Emission intensity per unit total
revenue
9% reduction (compared to 2010)
53% reduction (compared to 1990)

Emission intensity per unit total
revenue
9% reduction (compared to 2010)
53% reduction (compared to 1990)

Absolute quantity
51% reduction (compared to 1990)

Absolute quantity
50% reduction (compared to 1990)

Absolute quantity
41% reduction (compared to 1990)

Reduction ofgreenhouse gases
from businessactivities overseas*1

Emission intensity per unit
production
2% reduction (compared to 2017)

Emission intensity per unit
production
2% reduction (compared to 2017)

Emission intensity per unit
production
1% reduction (compared to 2017)

Outside theCompany

Reduction ofgreenhouse gases
from post-use
products overseas

Reduction of 52 thousand tons
annually

Reduction of 45 thousand tons
annually

Reduction of 100 thousand tons
annually

Within the
Company

Reduction of water
use in businessactivities

Water use per unit total revenue
34% reduction (compared to 2010)*6
49% reduction (compared to 2000)*6

Water use per unit total revenue
41% reduction (compared to 2010)
54% reduction (compared to 2000)

Water use per unit total revenue
15% reduction (compared to 2010)
35% reduction (compared to 2000)

Absolute quantity
48% reduction (compared to 2000)*6

Absolute quantity
53% reduction (compared to 2000)

Absolute quantity
23% reduction (compared to 2000)

Water use per unit total revenue
29% reduction (compared to 2010)
54% reduction (compared to 2000)

Water use per unit total revenue
29% reduction (compared to 2010)
53% reduction (compared to 2000)

Water use per unit total revenue
17% reduction (compared to 2010)
45% reduction (compared to 2000)

Absolute quantity
52% reduction (compared to 2000)

Absolute quantity
51% reduction (compared to 2000)

Absolute quantity
33% reduction (compared to 2000)

Zero emissions
within the
Company*2

Achievement of zero emissions at
all domestic production sites*4

Achievement of zero emissions at
all domestic production sites*4

Zero emissions at all domestic
production sites*4

Wastewater

Recycling of factory
wastewater
discharge*3

Operation of facilities to recycle
industrial wastewater at Chiba Plant

Operation of facilities to recycle
industrial wastewater at Chiba Plant

Recycle industrial wastewater atmultiple plants

Procurement

Biodiversity-friendly
procurement ofplant-derived oils

Continued purchasing RSPO*5
certified palm oil derivatives

Continued purchasing RSPO*5
certified palm oil derivatives

All palm oil derivatives purchased to
be RSPO-certified

Biodiversity

Enhancement of
biodiversity
conservation
activities

Carried out at all Lion plants, with
implementation expanding at officesof Lion and its affiliates

Carried out at all Lion plants, with
implementation expanding at officesof Lion and its affiliates

Carry out at all domestic sites

Awareness andeducation in society

Enhancement ofenvironmental
awareness andeducation for
consumers

1.2 times increase in consumer
participants in our awarenessactivities (compared to 2010)

0.9 times increase in consumer
participants in our awarenessactivities (compared to 2010)

Double the number of consumer
participants in our awarenessactivities (compared to 2010)

Greenhouse gases(overseas)

Within the
Company

Water

Realizing a Sound Material-Cycle Society

Realizing a Low Carbon Society

Categories

Outside theCompany

Waste

Reduction of water
use at households
using our products*1. Covers Lion and consolidated subsidiaries as of December 31, 2019*2. The waste recycling ratio is 99% or more, excluding recycling residues*3. Wastewater from production processes*4. Chiba Plant, Odawara Plant, Osaka Plant, Akashi Plant, Hirai Office Site, Sapporo Office Site, Sendai Office, Headquarters/Tokyo Office, Nagoya Office, Osaka Office, Fukuoka
Office, Lion Chemical Co., Ltd. Fine Chemical Production Site, Lion Chemical Co., Ltd. Oleochemical Production Site, Lion Specialty Chemicals Co., Ltd. Yokkaichi Production Site,
Lion Specialty Chemicals Co., Ltd. Ono Production Site
*5. Roundtable on Sustainable Palm Oil*6. The figures have been revised due to an error in past data.

Lion Integrated Report 2020: Sustainability

22

Lion’s Sustainability

The Environment

Human Rights

E S G

Labor Practices

Fair Operating Practices

Related SDGs

Human Rights
Basic Approach
Respect for human rights is indispensable to the pursuit of happiness and a higher quality of life. Lionrecognizes that it has a responsibility as a company to affirm diversity, including that of race, religion,
gender, sexual orientation, age, nationality and disability, to fully respect all human rights and,furthermore, that doing so strengthens its business foundation. The Lion Group Charter for Corporate
Behavior states that “We shall respect human rights ... observing both the spirit as well as the letter of
all applicable laws and international rules ... both in Japan and abroad,” and the Behavioral Guidelines
state that the Group will not permit child labor or forced or coerced labor, will provide equal employment
opportunities and treat employees fairly, and will take an active interest in the human rights practices of
its suppliers. In addition, in 2009, Lion declared its support for the Ten Principles of the United Nations
Global Compact. Lion has designated “Respecting Human Rights” as one of its Sustainability MaterialIssues and will continue to advance business activities based on the LION Human Rights Policy in its
global business development going forward.

Human Rights Policy
this area. This policy was approved by the Executive
Committee and applies to all employees of the Lion Group,
including overseas Group companies, as well as other parties
closely related to the Lion Group, such as suppliers.

In January 2019, based on the framework of the United
Nations Guiding Principles on Business and Human Rights
adopted by the United Nations Human Rights Council, weestablished the LION Human Rights Policy to further clarify ourstance on human rights abuse as well as our global efforts in
LION Human Rights Policy
1. Objective and Ideals
LION Group implements a variety of measures to realize the “fulfilling a spirit oflove,” which is our basic management policy.
To illustrate, our “Lion Group Charter for Corporate Behavior” provides for“respect of human rights”, “observing both the spirit as well as the letter of all
applicable laws and international rules”, whilst our “Behavioral Guidelines” also
provides for non-tolerance of child labor and forced labor, equal employment
opportunities, fair treatment of employees and also indicates respect forhuman rights by suppliers.
Furthermore, we expressed support of the “10 principles of the United Nations
Global Compact” in 2009.
We hereby set forth “LION Human Rights Policy” to put in statutory form ourendeavors to implement these measures because respect for human rights is
indispensable for people’s living, pursuing happiness and improvement ofquality of human life.
2. Respect for Human Rights(1) LION Group supports and respects such international norms on humanrights as “International Bill of Human Rights” (Universal Declaration of
Human Rights, International Covenant on Economic, Social and Cultural
Rights and International Covenant on Civil and Political Rights), “United
Nations Global Compact” and “ILO Declaration on Fundamental Principles
and Rights at Work”.
(2) LION Group will not trigger or foment any adverse impact on human rights
through its corporate activities. In the event of occurrence of such adverse
impact on human rights, we will take remedial actions appropriately.
(3) LION Group will, even where it is not directly fomenting any adverse impact
on human rights, oppose and further endeavor to mitigate any adverse
impact on human rights through relevant transactional activities.

3. Management System for Respect of Human Rights (Human Rights
Due Diligence)(1) LION Group will monitor and evaluate any adverse impact on human rights
or fomentation thereof triggered by its corporate activities and any suchadverse impact directly relevant to its corporate activities.
(2) LION Group will collect information pertaining to the risk of generating any
adverse impact on human rights not only from LION Group but also fromsuch parties as suppliers with close ties to LION Group and further
endeavor to prevent actual manifestation of such risks.
(3) LION Group will endeavor to maintain and develop such effective devices
as whistle-blowing hotlines with a view to identifying and adequately
tackling any adverse impact on human rights.
4. Dialogue and Discussion
LION Group will, in the event of actual or threatened occurrence of any
adverse impact on human rights, take opportunities to dialogue and sincerely
discuss with relevant stakeholders.
5. Education
LION Group will continuously educate employees so that the whole group
becomes more familiar with correct knowledge about respect for human rights.
6. Remedies
Whenever it has been revealed that any adverse impact on human rights has
been triggered or fomented by LION Group, LION Group will endeavor to takeremedial actions by appropriate means.
7. Disclosure of Information

LION Group will, from time to time, disclose and publish the status of
our own endeavors in the field of respect for human rights and thelike on its website and others.


Established January 1st, 2019

Implementation Framework
The Lion Group monitors human rights-related trends insociety, mainly through the corporate officer responsible forcorporate ethics, the Corporate Planning Department and the
CSV Promotion Department. Any new problems that emerge
23

Lion Integrated Report 2020: Sustainability

are dealt with in coordination with the relevant divisions, suchas the Legal Department, International Division or Purchasing
Headquarters, as needed.

Consumer Issues

Community Involvement
and Development

Organizational
GovernanceE S GMeasures to Prevent Human Rights Abuse: Implementing Human Rights Due Diligence
Lion regards the identification of and response to potential
human rights issues throughout its value chains, from raw
material procurement to use by consumers, as a top priority.
Accordingly, we identify and assess potential negative impacts

on human rights by stakeholder category to enhancemechanisms for preventing, mitigating and remedying suchadverse impacts.

Overview of Lion’s Measures to Prevent Human Rights Abuse by Value Chain and Stakeholder

Value Chain

Potential Human
Rights Abuse
Risk

Raw Material
Procurement

Lion’s Activities•F o rc e d l a b o r o r c h i l d l a b o r i n
procurement or at production sites• Discrimination against workers basedon nationality or status as immigrants
or refugees•N egative health impact on local
residents due to deforestation

Use by Consumers• G roundwater depletion due to factory operation;
inadequate factory wastewater treatment• Lack of regard for employees’ occupational health andsafety• A buse of authority or sexual harassment in theworkplace• Discrimination against sexual minorities• Coercion to engage in prolonged work

• A ccidents due to improper productlabeling or use•
I n a p p ro p r i a t e i n t e r a c t i o n s w i t hcustomers• Personal information leakage, privacy
violations

Assessment of human rights impact
Stakeholders andMain Initiatives

Oil Palm Plantations• Participation in RSPO activities

Related Information p. 31• Continued purchasing of certified oilpalm derivatives
Related Information p. 31
Suppliers• CSR procurement based on the
Procurement Principles and the LionGroup Supplier CSR Guidelines

Related Information p. 30• Participation in Sedex

Related Information p. 31

Residents around Our Plants•
E n v i r o n m e n t a l m a n a g e m e n t u n d e r L i o n ’s
Environmental Guidelines to prevent contamination;compliance with laws and regulations

Customers•
A ggressive pursuit of safety andfunctionality through Lion’s ProductManagement System

Related Information p. 17• Implementation of environmental assessments whenconstructing new plants
Clinical Trial Subjects• Respect for the Declaration of Helsinki• Application of the Regulations for the Implementationof Clinical Trials in order to place the highest priority on
the safety of the subjects and ethical considerations
Group Employees• Ensuring awareness of the Lion Group Charter for
Corporate Behavior and the Behavioral Guidelines•C reation of environments that help prevent
discrimination on the basis of religion or race, etc.,
and improper handling of hiring, personnel reviews
and compensation• Reinforcement of occupational health and safety andpromotion of health and productivity management

Related Information p. 34• Creation of the representation drafting
manual to ensure consideration for
the elderly, children and othervulnerable consumers
Related Information p. 34•P romotion of customer-oriented
management to enhance customer
satisfaction
Related Information p. 34

Related Information pp. 28-29• Widespread promotion of the Harassment Prevention
Declarations to raise awareness• Training on human rights (e-learning)
Related Information p. 41•M onitoring of adverse impacts through theCompliance Awareness Survey
Related Information p. 41• Promotion of work-life balance
Related Information pp. 26-27• Establishment of the AL (All Lion) Heart Hotline internal and external whistle-blowing system

Related Information p.41

• Establishment of and service via thecustomer support center

Related Information p.34

In advancing global business development, Lion will continue
to educate employees about respecting human rights andstrengthen related initiatives in its value chains.

LION Human Rights Policy

Human Rights Due Diligence (Japanese)

https://www.lion.co.jp/en/company/compliance/human-rights.php

https://www.lion.co.jp/ja/csr/humanrights/duediligence/
Lion Integrated Report 2020: Sustainability

24

Lion’s Sustainability

The Environment

Human Rights

E S G

Labor Practices

Fair Operating Practices

Related SDGs

Labor Practices
Basic Approach
Based on the Lion Group Charter for Corporate Behavior*1 and the Behavioral Guidelines,*2 we aim tohave all employees spurring one another on and operating as autonomous individuals in order togenerate waves of innovative change, that is, dynamism, across the organization as a whole. We believethat enhancing the professional fulfillment, ambition and motivation of each individual helps to increase
productivity and create new value. We are advancing the Lion Professional Fulfillment Reforms*3 toward
a new growth stage. By promoting mutual understanding and respect between organizations andemployees, we aim to build stronger organizations.
*1. The Lion Group Charter for Corporate Behavior stipulates that “We shall promote fair treatment and respect the diversity, individuality and personalities of ouremployees” and “We shall ensure a safe and comfortable workplace to realize the mental and physical well-being of our employees.”*2. The Behavioral Guidelines state that “We will promote a healthy work-life balance and strive to maintain work environments that flexibly allow a variety ofworking styles,” “We will do our utmost to assist employees who strive to learn specialized skills and knowledge and aim for ambitious goals” and “We will
engage sincerely in dialog and discussion with employees and their representatives.”*3. Initiatives to increase the professional fulfillment of each and every employee, develop personnel who generate new value and improve labor productivity.

Lion Professional Fulfillment Reforms
To realize the targets of the LIVE Plan, we aim to ensure thateach individual is able to take total ownership of their role andexercise their abilities to the fullest. To this end, we havelaunched a new initiative, the Lion Professional Fulfillment
Reforms, focused on health, work styles and enabling diverse
human resources to succeed, with the key themes of “first, just
do it” and “mutual acceptance.”
Our professional fulfillment reforms comprise four initiatives:
Make maximum use of diverse talent through work
management; change ways of working with emphasis on
independence; strengthen relationships to foster mutual
understanding and respect while invigorating organizations; and,as the foundation supporting the first three, implement Lion-style
health support, “GENKI” Action. By implementing multifaceted
initiatives, we are promoting diversity and openness among ourhuman resources, organizations and corporate culture.

LION Professional Fulfillment Reform Framework

Fulfilling work
Able to grow as a professional and private individual andlead a fulfilling lifeWork
management
Make maximum use ofdiverse talentWork styles
Change ways of working,with emphasis
on independenceStrengthen relationships
Mutual understanding and respect

Lion-style health support

Through the Lion Professional Fulfillment Reforms, we will increase
the job satisfaction of each and every employee, develop
personnel who generate new value and increase labor productivity.

“GENKI” Action

Promoting Diversity
To better respond promptly to changes in the businessenvironment, we are working to promote internal diversity. A
team responsible for diversity within the Human Resources

Development Center implements a variety of measures to promote
diversity, integration management and employee perspectives.

Promoting the Professional Participation and Advancement of Women
Lion recognizes that the professional participation andadvancement of women is indispensable to the further
enhancement of corporate value and is proactively implementing
measures to promote the professional engagement of women.
Based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace, which came into full effect in2016, Lion has expanded systems related to childcare andimplemented support measures for working parents in order to25

Lion Integrated Report 2020: Sustainability

allow women to fully participate professionally over the longterm. We are also implementing measures to support
employees balancing work and nursing care.
Furthermore, through a range of initiatives, in 2020 we aim toincrease the proportion of female employees in Japan at the
management level* to at least 20%.
*P
 ersonnel holding managerial positions at the level of assistant manager or higher

Consumer Issues

Community Involvement
and Development

Organizational
GovernanceE S GProportion of Female Employees at the Management Level

Promoting Work-life Balance (Japanese)

https://www.lion.co.jp/ja/csr/employee/work_life/

(%)

12.0

12.9

2015

2016

14.4

15.8

2017

2018

17.1

2019

20.0

2020

(Fiscal year
(Target)under review)Lion’s entry in the Ministry of Health, Labour and Welfare’s
database of companies submitting action plans and data basedon the Act on Promotion of Women’s Participation andAdvancement in the Workplace (Japanese)https://positive-ryouritsu.mhlw.go.jp/positivedb/
detail?id=453

Actively Promoting the Professional Participation of People with Disabilities
Lion actively promotes the professional participation of people
with disabilities to utilize their abilities, striving to improve
working environments and foster a corporate culture in which
entire workplaces support these employees. In March 2016,
we established the special subsidiary Lion Tomoni Co., Ltd. topromote the active participation of people with disabilities. Lion
Tomoni Co., Ltd. has 29 employees and five instructors (as ofDecember 31, 2019), engaged in such activities as the
management of inter-office mail and printing business cards for
all Lion employees.
Labor Practices: Employee Data

https://www.lion.co.jp/en/ir/pdf/ar/2020/ir20_e_5.
pdf#page=7

Career Design Support
From 2011 to 2019, Lion’s career counseling desk helped
employees proactively enhance their own career path.
Focused on Lion employees, the desk accepted
consultations via phone or email, and provided opportunities
for face-to-face career consultations to help employees gain
new insights by soliciting employee participation. A
cumulative total of 819 employees used the system (as of theend of 2019). Annual surveys of its users found a high level ofsatisfaction regarding their consultations and positivechanges in their mindsets and actions.

Company, helping employees design their careers andrediscover their own potential.

In 2020, we completely revamped the career counseling deskand launched what we call Career Design Support, which is
aimed at supporting conscious autonomy that will enable
employees to advance their careers themselves based on theirown aspirations and actions. The desk offers career
consultations and disseminates information in and outside theConscious autonomy

Career Design Support
Employees reconstruct their own value
Side job system
Enhancing Lion Career Village

Multifaceted ability assessment
Telecommuting and full-flex systems

Promote activities to acquire
knowledge and experience

Career design seminars tailoredby age group

Career design support hotline(internal, external)

Lion Career Village (LCV)

Promoting Work-Life Balance
Lion strives to maintain and improve working environments so that employees can produce results while emphasizing work-life balance.

Building Environments Where Employees Can Work With Enthusiasm
Since 2010, Lion has worked to reduce prolonged working
hours and encouraged employees to take annual paid leave. In
order to facilitate understanding of the management of working
hours, e-learning is provided for all employees every year.
Aiming for a 70% use rate of annual paid leave in 2020, in linewith a labor-management agreement, we have proactively
encouraged employees to take at least three pre-scheduleddays of paid leave per year. From 2019 onward, the number ofsuch pre-scheduled days of paid leave has been increased
from three to five to further encourage use of paid leave.

Programs to Support a Balance Between Work and Nursing Care
Lion has enhanced support for employees engaged in nursing
care of family members as part of efforts to create anenvironment that allows employees to continue to work withpeace of mind while handling such responsibilities. In addition
to ordinary annual paid leave, we have in place programs to
support nursing care providers, including accumulated leave

for medical nursing care (accumulated expired annual paid
leave), shorter work-hours for nursing care (Short Hours
Flextime System), and nursing care leave of up to 365 days
(usable in one-day units). Furthermore, we have set up a
support website targeting employees aged 40 and over tobetter provide information on nursing care.
Lion Integrated Report 2020: Sustainability

26

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

E S GInitiatives Based on the Act on Advancement of Measures to Support Raising Next-Generation Children
Lion has formulated an action plan in accordance with the Act
on Advancement of Measures to Support Raising NextGeneration Children and is actively working to create anenvironment where all employees can exercise their capabilities

Goal 1

Within the period of the Action Plan, implement support
measures to create a working environment in which
employees on childcare leave can smoothly return to work.

Launched the Lion Career Village and provided support for self-study while on childcare
leave and for career development after return to work. (Begun in January 2019)

Goal 2

Within the period of the Action Plan, have 13% or more ofeligible male employees take childcare leave, one or moresuch employee take long-term parental leave and 30% ormore of such employees take special leave (for childbirth).

Of eligible male employees, 16.7% (eight individuals) have taken childcare leave,and 60% (29 individuals) of eligible male employees have taken special leave (as ofDecember 31, 2019).
Lion has received
Kurumin certification
five times and received
Platinum Kurumin
Certification in 2019.

fully while achieving a balance between work and childcare.
In 2019, we formulated the 6th Phase of our Action Plan
(covering February 2019 to December 2022) and advanced
efforts toward the following three goals.

Goal 3

Within the period of the Action Plan, promote measures forunderstanding and use of the work-from-home system andimplement for support the establishing the system.

Expanded the number of eligible employees (approximately 60% of regular
employees and full-time contract employees, excluding sales and production
divisions). (Begun in February 2019)
Encouraged changes to mindsets regarding work styles by providing explanationsof the system and participating in the Telework Days campaign.** An initiative organized by the Ministry of Internal Affairs and Communications and Ministry of
Economy, Trade and Industry in collaboration with related government agencies and organizations
aimed at promoting the use of telecommuting across Japan and, to alleviate transportation
congestion during the Tokyo Olympic and Paralympic Games, encourage companies and otherorganizations nationwide to practice coordinated telecommuting on certain days

Lion’s page in the Ministry of Health, Labour and Welfare’s database of companies submitting actionplans and data based on the Next Generation Education and Support Promotion Act (Japanese)

https://ryouritsu.mhlw.go.jp/hiroba/search_dtl.php?cn=107866#actionplan

Work-from-Home System
We are implementing ongoing initiatives related to our workfrom-home system with the aim of accommodating
autonomous work styles in line with the diversity of ouremployees and increasing productivity. To encourage
employees to try the system, we have been adjusting related
systems and their operation, including participation in the 2019
Telework Days campaign (July – September 2019). By the endof 2019, trial implementation had expanded to the point thatthe portion of employees who had used the work-from-homesystem at least once had grown to 49%.

In early 2020, to prevent the spread of the novel coronavirus,
except for employees who must be physically present toperform their duties, all our employees were working fromhome. Since the lifting of Japan’s state of emergency in May,
we have continued working to make maximum use of the workfrom-home system and other measures to reduce the risk of
employee infection, shifting away from the default assumptionof working on-site. We are advancing the use of digital tools to
conduct meetings and morning briefings remotely andimproving environments to enable diverse work styles.

User’s Perspective

Figuring Out an Ideal Work Style: Telecommuting
An advantage of telecommuting is that it allows you to find better, more efficient ways of working.
After getting my work done efficiently, I often have more time than I otherwise would to prepare
dinner and can take more care with it. Being able to feel satisfied with the level of housework I doeven on weekdays has felt like a real lifestyle improvement.

Iyo Takatsu
Beauty Care Business Department,
Health and Home Care
Products Headquarters

Developing Human ResourcesEnhancing Lion Career Village (LCV)In 2019, we launched Lion Career Village (LCV) to support
employees’ autonomous development of their abilities. Morethan 60% of those eligible are using LCV online instructional
content, with approximately 20% participating in discussionstyle programs. LCV is thus contributing to the formation ofself-directed learning habits among employees. Going forward,
to help employees gain knowledge that will further expand thebreadth and depth of their work and with an eye to accelerating
institutional learning, we will create environments that enable
them to teach one another and share what they have learned.

Focus

Lion Career Village Receives Two Awards
The LCV system received the Career Up Education Special Division
16th Japan e-Learning Grand Prize organized by e-Learning Initiative
Japan and Nihon Kogyo Shimbunsha as well as the Nihon no Jinjibu
HR Award 2019 from the Nihon no Jinjibu HR Award Organizing
Committee. Going forward, we will continue toimprove work environments that promote ambitionand creation to help all employees advance theircareers in an effort to reinforce front-line capabilities.

Marketing Study Program
The Marketing Study Program has been implemented
continuously in the Marketing Division since 2014. This
program offers opportunities for the systematic study of such
topics as practical marketing theory and planning design
27

Lion Integrated Report 2020: Sustainability

based on consumer insights and competitive strategies. The
program also serves to develop marketing personnel inaccordance with individual career paths.

Consumer Issues

Community Involvement
and Development

Organizational
GovernanceE S GCultivating Innovative Personnel: ReDesign FORUM
Since 2018, Lion has held the ReDesign FORUM with the aimsof directly conveying to management the passionate desire of
employees, particularly young employees, to bring change to
the Company and of rapidly implementing their proposals.
Employees from a wide range of divisions participate in the
ReDesign FORUM. In 2019, 35 employees participated,tackling the three themes of “Expand and Evolve Our BusinessDomains through New Value Creation,” “Accelerate Growth inOverseas Businesses through Glocalization” and “Reinforce
Our Management Base through Business Structure Reform.”
We are currently considering measures to put the results of theforum into action. The results of the 2018 forum are now being
implemented as part of Company-wide initiatives, such as theLion Professional Fulfillment Reforms.

The NOIL Program
The LIVE Plan includes the basic strategies of Expand andEvolve Our Business Domains through New Value Creation andCreate Dynamism to Foster Innovative Change. As part ofinitiatives based on these strategies, in 2019 we launched NOIL,
a program for selecting and implementing new business ideas.
Under the theme of going beyond conventional healthcare
wisdom, NOIL is aimed at continuously creating businesses thatoffer new value. In the program’s first year, it received applications
from more than 100 people, collecting ideas based on diverse
perspectives from employees not only in the R&D Division andMarketing Division, but divisions across the Company, including
those related to sales and production. To commercialize theideas for new products and services that management andoutside experts selected as promising, the employees that
submitted the chosen ideas have been transferred to the newly

established Business Development Center, where they can takea central role in putting their ideas into action.
Perspective of an Employee Working to Commercialize New Businesses

Proposing New Living Habits
Akane Hirooka
Business Development Center(Previously of the Marking Division)

The experience of independently coming up
with the solution to a problem I had in myown daily life was the impetus for myapplying to NOIL. I wanted to share my solution with others and spread thejoy it brought. I also wanted to work on solving consumers’ problems froma wider perspective that transcends the boundaries of
the areas I had worked in previously. Bringing together
underutilized resources and consumers’ real desires, I
am starting to work toward commercialization.

Enhancing the Group-wide Occupational Health and Safety Management System
We are taking steps to enhance our occupational health andsafety management system with the objectives of zero serious
accidents and zero serious incidents throughout the LionGroup. We hold the Safety, Hygiene and Disaster Prevention
Meeting twice a year. Chaired by a member of top
management, the meetings coordinate ongoing Companywide initiatives aimed at fully eliminating risks related to facility
safety and occupational safety. Lion has added disasterprevention items to the Occupational Safety and HealthManagement System (OSHMS)* based on the guidelines ofJapan’s Ministry of Health, Labour and Welfare to establish aunique Safety, Hygiene and Disaster Prevention Management
System. Since 2009, we have operated this system at all
domestic Group companies, striving to further enhance safety,
hygiene and disaster prevention activities.
Our domestic companies actively support overseas Group
companies in preventing occupational accidents. In 2018, weestablished a Safety and Disaster Prevention Promotion
Department directly below the management level, further
strengthening the Lion Group’s occupational health, safety anddisaster prevention management system. In 2019, we
implemented e-learning about safety to instill safety awarenessin employees (participation: 99.8%). We will continue suchinitiatives going forward.
Occupational Safety and Facility Safety (Japanese)

https://www.lion.co.jp/ja/csr/employee/prevention/

Occupational Safety
In 2019, the number of labor-related accidents for the domestic
Group was 26 (excluding eight cases that occurred duringcommutes to work). When occupational accidents occur, theSafety Management Secretariat at our Headquarters conducts
on-site investigations, thoroughly identifies the causes andtakes thoroughgoing corrective response measures. In order toprevent occupational accidents, it is crucial to enhance oursafety management system and heighten our awareness ofoccupational safety. We will continue to promote measures tofurther improve individual safety awareness and sensitivity.
Employees who Participated in Risk Simulation Training(Safety Training) in 2019 (Internal education)
Chiba
Plant

Odawara
Plant

Osaka
Plant

Akashi
Plant

Total

259

55

40

37

391

Safety of Facilities
Lion conducts facility inspections to maintain safety throughdaily routine inspections and regular maintenance. Our diligent
performance of maintenance inspections helps prevent failures
and accidents. There were zero facility-related accidents in
2019. We will continue to focus our efforts on ensuring thetransmission of technical know-how from employee to
employee as well as on providing training.

* Occupational Safety and Health Management System (OSHMS)
A system to voluntarily conduct continuous safety and health management
through PDCA.

Lion Integrated Report 2020: Sustainability

28

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

E S G

Reinforcing Health and Productivity Management
When employees act on their own initiative with a high level ofhealth awareness to acquire sound health habits, it not only
serves to maintain and improve their health, but helps themachieve personal growth and professional and personalfulfillment. This, in turn, serves to enhance corporate
productivity and creativity and expand opportunities for Lion tocontribute to society through sustainable growth.
From 2019, we have been implementing Lion-Style HealthSupport “GENKI” Action, based on the concept of the“ReDesign” of employees’ health-related habits to be morenatural, easy and enjoyable. Through this initiative, we are working
to increase health awareness and encourage employees totake self-directed action to maintain and improve their health.
Guidelines for Health ttps://www.lion.co.jp/en/company/compliance/hhealth.php

Lion-Style Health Support “GENKI” Action
Key Measures
1. Clearly laying out current and future lifestyle-related disease risk
	We plan to implement an individual health information system that clearly lays out
each employee’s health-related data, such as that from health checkups, dental
checkups and saliva tests, and make such data easy to access by that individual.
2. Fostering preventive dentistry habits	We aim for all employees to practice preventive dentistry. We are implementing a
range of initiatives, such as subsidizing the cost of receiving professional care,recommending dentists and directly contacting high-risk individuals.
3. Reinforcing countermeasures for three common types of cancer*
	We have established a voluntary screening system aimed at early detection andtreatment.
* Lung, stomach and colon cancers

4. Reinforcing Anti-Smoking Initiatives
	We are advancing support, including creating facilitative environments, for employees
who want to quit smoking. We have an online antismoking support program, and,beginning in January 2020, have banned smoking during work hours. Through such
efforts, we are working to reduce the smoking rate among employees.

Creating
healthy habits

2. Preventive
dentistry
3. Countermeasures
for three major
cancers
4. Anti-smoking

PhysicalMentalMentalhealthmeasures

Awareness

1. Individualized Health Information System

Mental Health Initiatives
Lion established the Mental Health Basic Policy in 2004, andcontinually and systematically promotes mental care for
employees based on the Guidelines for Maintaining and
Improving Mental Health of Workers. In 2019, 98% of
employees took a stress level check test. The results of suchtests are compiled and analyzed by section/department insuch a way that individuals cannot be identified and thenprovided as feedback to responsible officers, applied inmanager training and otherwise applied to improve ourongoing organizational measures.

Management System
We have built a health and productivity management system,
in which management, led by the President, participates tostrengthen and accelerate relevant initiatives and measures.
Measures are implemented through the cooperative efforts ofthe Health Support Office (including industrial physicians andhealth care providers), the Lion Health Insurance Society andthe individual responsible for health and productivity
management at each office.
Health Management Program—Mental, Physical and Awareness (Japanese)https://www.lion.co.jp/ja/csr/employee/health/#program

Promoting Amicable Labor-Management Relations
Lion executes labor agreements with the Lion Workers’ Union
to promote sound labor-management relations based on
mutual understanding and trust. As it does so, the Company
adheres to the Lion Group Charter for Corporate Behavior,
which is based on an understanding of the social mission andresponsibilities of the Company. Thus, in cooperation with its
workers union, the Company works to grow its business andmaintain and improve the working conditions of union
members. The agreements provide that: the Company shallrecognize the freedom of union members to engage in lawful
union activities; the Company shall not treat union members
disadvantageously by reason thereof; and the Company andthe union shall engage in labor-management meetings on aregular basis to consult with each other as equals.
29

Lion Integrated Report 2020: Sustainability

Operating under a union shop agreement,* Lion endeavors tobuild amicable labor-management relations, in which
employees and management proactively conduct suchactivities as reporting on business conditions and exchanging
opinions about the working environment at labor-management
meetings. At overseas Group companies, we actively maintaincommunication between employees and management in orderto create a better work environment through the labormanagement meetings and strive to establish and maintainsound labor-management relationships.
* A labor agreement in which workers are employed by a company on conditionof becoming a member of a specific labor union.

Consumer Issues

Community Involvement
and Development

E S G

Organizational
Governance
Related SDGs

Fair Operating
Practices
Basic Approach
Lion regards the creation of responsible supply chain management through reinforced coordination withmaterials manufacturers and production contractors as a key issue in its supply chain initiatives. To
reduce the negative environmental and social impacts of business activities and advance sustainablemutual business development, we must work with suppliers to evolve our sustainably initiatives basedon our Procurement Principles. These principles clearly lay out Lion’s policy of considering legal
compliance, environmental conservation and respect for human rights when selecting suppliers.
Procurement Principles

https://www.lion.co.jp/en/company/compliance/procurement.php

Establishment of the LION Anti-Bribery Principles
The Lion Group established the LION Anti-Bribery Principles inJanuary 2019 in light of developments around the world
related to strengthening legal regulations against acts ofbribery and corruption.

Main Content
1. The Lion Group is committed to preventing bribery or corruption
based on the Lion Group Charter for Corporate Behavior
2. The Lion Group reaps no profit from bribery or other corruption
and requests the cooperation of its business partners infighting corruption
3. The Lion Group designates a general manager for bribery
prevention and maintains a compliance system

Going forward, we will continue working to ensure that ourbusiness activities are fully compliant with the laws andregulations of the countries and regions in which we do business.
LION Anti-Bribery Principles

https://www.lion.co.jp/en/company/compliance/anti-bribery.php

Promoting Sustainability with Materials Manufacturers and Production Contractors
 elf-Checks Based on the Lion Group Supplier CSR
S
Guidelines
Every year, we ask our materials manufacturers and production
contractors to implement self-checks based on the Lion Group
Supplier CSR Guidelines, which specify the sustainability initiatives
we expect from these partners. We then provide them withfeedback based on the results. Through these efforts, we have
put into place a system that continuously advances CSR
procurement. In 2020, Lion Daily Necessities Chemicals (Qingdao)
Co., Ltd. also requested self-checks from its suppliers. We willcontinue to promote sustainable and responsible procurement
activities with our business partners.

* Lion Group Supplier CSR Guidelines and Glossary
The Lion Group Supplier CSR Guidelines comprise 21 guidelines under the following five categories.
1. Human Rights/Labor Practices 2. The Environment 3. Fair Operating Practices 4. Consumer Issues 5. Compliancehttps://www.lion.co.jp/ja/csr/businesscustom/valuechain/pdf/eng.pdf* Available on our website in Japanese,
English, Chinese and Korean

Timeline of Sustainable and Responsible Procurement Initiatives
2005

Instituted the Basic Policy Regarding Purchasing and implemented appropriate procurement of raw materials and products.

2008

Established the Procurement Principles, which clarify our social and environmental considerations. Conducted a questionnaire survey fordomestic and overseas raw material manufacturers and production contractors about their corporate activities regarding legal compliance,
product service quality and safety, environmental considerations, labor practices and human rights, and fair trade.

2013

Amended the Procurement Principles and clarified our stance of considering legal compliance, environmental conservation and respect for humanrights when selecting business partners. Instituted the Lion Group Supplier CSR Guidelines, which specify the sustainability initiatives we expectfrom raw material manufactures and production contractors and asked our business partners to conduct self-checks of their sustainability initiatives.

2014

Introduced an online CSR self-check system.

2018

Lion Corporation (Korea) requested self-checks from its business partners, expanding the number of countries in which the Group implements
self-checks.

2019

Established the LION Human Rights Policy and LION Anti-Bribery Principles to clarify our stance on initiatives for sustainable and responsible procurement.
Established the Sustainable Material Procurement Policy to advance initiatives aimed at the sustainable procurement of palm oil derivatives andpulp and paper products, which are key raw materials for the Lion Group.
Lion Integrated Report 2020: Sustainability

30

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

E S G

PDCA Cycle for Supplier Sustainability Self-Checks

Plan

Do

Establishment anddisclosure of CSR
Guidelines

Request for self-checks
based on the CSR
Guidelines

Share the Procurement Principles
and CSR Guidelines with suppliers

Ask suppliers to conduct online
self-checks

Supplier Sustainability Self-Check Results (2019)
Response Rate

No response

0.3%

Requested
improvement

19.0%

Check

Feedback and improvement

Analysis of self-checks

Give feedback to suppliers
regarding results in detail andrequest improvements where
necessary

Analyze the responses andidentify suppliers thatneed improvement

In order to ensure that our suppliers understand the importance of addressing
sustainability-related issues, we include a section explaining the situation
surrounding sustainability in our self-check request form. The self-check employsa three-step checking standard for each initiative and a detailed glossary.

94%

2017

99%

2018

98%

No need for2019
improvement

80.7%
Action2016

99%

2020 target 100%

Number of companies monitored:
585 raw material manufacturers and production contractors of the domestic LionGroup (513 domestic and 72 overseas)2019 Results Summary• The response rate in 2019 was 99%, and the average score, on ascale of 1 to 3 points, was 2.72, confirming that sustainability
measures are being implemented throughout the supply chain.
• We are currently requesting cooperation from the two suppliers who
did not respond.

Aiming for Sustainable Raw Material Procurement
Lion aims to contribute to the achievement of the Sustainable
Development Goals (SDGs), a set of shared worldwide goals
for 2030. However, palm oil derivatives and pulp and paper
products, which are key raw materials in Lion’s products,
present risks to sustainable development in terms of humanrights, labor issues and environmental issues. To address theserisks, we have established the Sustainable Material
Procurement Policy. Based on this policy, we are advancing
initiatives aimed at the sustainable procurement of palm oil
derivatives and pulp and paper products.

Sustainable Palm Oil Procurement
Lion uses palm oil derivatives—plant-based raw materials thatare inexhaustible and carbon neutral—in its products. Lion has
been a member of the Roundtable on Sustainable Palm Oil(RSPO*) since 2006 and sources RSPO-certified palm oil
derivatives. In 2019, we continued these efforts to meet ourtargets for 2020 and achieved a RSPO-certified procurement
rate for palm oil derivatives of approximately 14%.

Sustainable Pulp and Paper Procurement
Pulp and paper are used in the manufacture of Lion’s productpackaging, booklets and pamphlets as well as in the copy
paper and other office supplies the Company purchases. In
order to better protect biodiversity in the procurement of thesematerials, based on the Sustainable Raw Material Procurement
Policy, we are advancing the procurement of third partycertified paper products. As of the end of 2019, theprocurement rate of such products was 96%.

Target:	For all palm oil, palm kernel oil and their derivatives as well as pulp and paper used in the domestic Lion Group’s
consumer products to meet the sustainability standards of third-party institutions or be sourced from recycledmaterials by the end of 2030.
Focus* The Roundtable on Sustainable Palm Oil
The Roundtable on Sustainable Palm Oil (RSPO) believes that for palm oil
production to be sustainable, it must not only be compliant with relevant laws
and regulations, but economically sustainable, environmentally appropriate
and socially beneficial. These requirements are laid out concretely in the
RSPO Principles and Criteria. Only palm oil produced in accordance withthese seven principles and 40 criteria can be RSPO-certified.

RSPO

Joined Sedex, the Supplier Ethical Data Exchange
Headquartered in the United Kingdom, Sedex is a not-for-profit
organization that provides the world’s largest platform for managing
and sharing ethical supply chain data, with the aim of establishingethical and responsible business practices in global supply chains.
Lion joined Sedex as an AB member at the end of 2019 in order tofurther reduce social and environmental risk
in its purchasing. Going forward, we will

https://www.rspo.org/

continue to reinforce and enhance supplier

Sustainable Material Procurement Policy

Together with Supply Chains (Japanese)https://www.lion.co.jp/en/company/compliance/material-procurement.php
31

Lion Integrated Report 2020: Sustainability

management and risk management.

https://www.lion.co.jp/ja/csr/businesscustom/Community Involvement
and Development

Consumer Issues

Organizational
GovernanceE S G

Related SDGs

Consumer Issues
Basic Approach
In order to provide products that will satisfy customers, Lion carries out quality assurance activities at
all stages from the very beginning of the product development process to consumption by customers.
Specifically, by identifying the key requirements at each stage of corporate activities— 1 productplanning, 2 product development, 3 production, 4 sales and 5 customer support—we areconstantly pursuing customer satisfaction.
During product planning, valuable customer opinions are analyzed to identify specific needs. At the
product development stage, product quality is verified with respect to seven metrics, including function
and performance, and consideration is given to making labeling easy to read and accessible. During
production, quality is thoroughly managed within each process, and products that have passed
inspection are shipped in identifiable lots, aiding in effective after-sales management. A variety of
information is sent to wholesalers and retailers, including product descriptions and samples.
Product Development Incorporating Customer Opinions

Maximization of customer satisfaction

Customers

Customer support

Management

55Process of developing safe and high-quality products
1

Product planning

Customer opinions andmarket survey findings arereflected in planning to set atarget level of quality for highcustomer satisfaction.

2 Product development
Products are developed bytranslating quality targets
into design quality
technical metrics.

3

Production

4

Raw materials and production
processes are managed to
manufacture products at astable level of quality.

Sales

Product information iscommunicated in an accessible
manner that informs customers
of product features and usage.

To help customers realize everyday happiness, Lion shares and practices a fundamental focus on customer satisfaction. By responding tocustomer opinions and engaging in a continuous cycle of product quality improvement, we create products that better satisfy customers.

Group-wide Reliability Assurance System
In 2018, we established the Reliability Assurance Department
to reinforce quality assurance based on a quality management
system covering the entire supply chain.
To implement quality assurance activities on a Company-widebasis, we have established the CS/PL Committee,* comprising
representatives of the Product Planning Division, Production
Division, R&D Division, Consumer Service Center andheadquarters staff divisions. The Reliability Assurance
Department serves as the secretariat for this committee. The
CS/PL Committee provides overall management of quality
assurance activities, monitoring Group-wide efforts andresponses to issues in the areas of legal compliance, setting
voluntary standards and targets, and developing superior

products from the perspective of reliability assurance. Lion
manufactures and sells products ranging from everyday sundries
to pharmaceuticals, so its quality assurance system is designed
in line with the respective standards for each product category.
Furthermore, Lion maintains a system for swiftly taking thenecessary measures to address any serious problems that may
arise with its products. These measures include responding toindividuals harmed or affected, disclosing relevant information
to government authorities and customers, issuing productrecalls and taking steps to prevent recurrences.
* CS/PL Committee
A committee focused on customer satisfaction (CS) and product liability (PL)Lion Integrated Report 2020: Sustainability

32

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

E S G

Developing Safe and High-quality Products

1

Product
planning

Planning products that will further satisfy customers

Customerfeedback

Analysis/deliberation

Marketing research

Product
development

Preparationof a productproposal

Discussion and approvalof the proposal
Product Planning Meeting
Executive Committee• Marketing
research
results

Marketanalysis andcustomer
research2

Proposals• Concept• Targetquality level

Creating products with a focus on quality and safety

Examination of containers
and their content
Quality verification

Examination andchecking of labeling

Discussion and approvalof development results
Production Engineering Meeting

Seven metrics
Function/performance
Usability
SafetyProduct stability
Environmental friendlinessAppearance (incl. design)
Compliance with laws
and self-imposed standards

Discussion and approval ofdevelopment results

Product Planning Meeting
Discussion and approval of
product commercialization plans

Executive Committee
Decision on commercialization

Quality verification meeting
When starting development, the target
quality and parameters for examining
development are confirmed.

3

Production

After the completion ofdevelopment, the viabilityof the product is confirmed.

Confirm quality of raw materials,
packaging and containers.

Sales

Assess quality in trial production.
Survey market acceptability.

Manufacturing

Perform quality control
in each process

Storage (shipment)

Product freshness
is controlled.

Provision of product quality information
Wholesalers and retailers
are provided with productfeature and usage
information to pass on
to customers.

33

Safety assurance in the
manufacturing process
is confirmed.

Confirmation of quality in mass production

Preparation for initial manufacturing

4

Process safety
verification meeting

Lion Integrated Report 2020: Sustainability

Communicating via productinformation displays andproduct samples at stores,
television and newspapers,
our website and other media

Consumer Issues

Community Involvement
and Development

Organizational
GovernanceE S GApproach to Safety and Reliability
To ensure that customers can use Lion products withconfidence, we evaluate the safety both of raw materials andof final products during use.

Safety of Raw Materials and Ingredients
After first examining the safety of a raw material, we evaluate
samples and investigate suppliers to ensure a certain level ofquality. Based on the results of these efforts, we then determine
whether or not to use the raw material in question. Eachmaterial is classified as a pharmaceutical, quasi-drug, cosmetic,
food, or general product, and its quality is assessed based on
the inspection parameters and testing methods appropriate forits classification before it is actually accepted for use.
Safety of Raw Materials and Ingredients (Japanese)https://www.lion.co.jp/ja/csr/consumer/
quality/#area03
Safety of Products During Use
Giving due consideration to the various ways products may be
used as well as product use by socially vulnerable customers,
we perform safety evaluations based on an approach of
avoiding risks at the product design stage. To this end, we use
a checklist to determine whether the product design ensuressafety in both “normal use” and “mistaken use” cases. For“irregular use” cases, we assess whether risk reduction ispossible and whether the risk is tolerable, and, as necessary,clearly label the product with an explicit safety warning. In
addition, the quality verification meeting, which encompasses
representatives of related departments, performs assessments
based on customer use scenarios in order to prevent harm
related to product use and to prevent the omission of items
that should be checked for safety. If there is trouble with aproduct, we have an internal system in place, ready to promptly
issue product recalls or otherwise respond as needed.
Scope of Safety Assurance

Reduction of risk to tolerable
levels and warning labels

Safetyassurance required

Recklessuse

Unforeseeable andunreasonable usage

Irregularuse

Foreseeable usage,
but outside of the norm(highly excessive use,
or use for purposes very
different from those intended)

Mistakenuse

Usage not intended
by Lion but whichmust be foreseen

Approach to Responsible Product Representations
To improve the quality of representations (such as labels andadvertising) for all the products it sells (including food andpharmaceutical products), Lion has clearly designated its
approach to product representation standards and establisheda representation drafting manual comprising guidelines for
precise, appropriate product representation preparation ineach step of product development under its ProductManagement System. These guidelines apply to all wordingand expressions used in product packaging, instructions,
pamphlets, advertisements and other representations.
To reinforce the monitoring of expressions used in advertising,Lion operates an advertising management system comprising
the following aspects.
(1) Enhancement of the vetting system applied to advertising
for all products, including food products(2) Consultation with the Consumer Affairs Agency and othergovernment agencies as needed(3) Thorough legal training for employees
In particular, to ensure thorough compliance with the Act
against Unjustifiable Premiums and Misleading
Representations and other laws and regulations concerning
product labels and advertising, Lion provides e-learning for all
employees and lectures for employees in related divisions aspart of its legal education initiatives.

Initiatives to Respond to Our Customers
So that we may leverage inquiries received from customers todevelop new products and improve our products and services,such inquiries are registered in a database operating under a strict
personal information management system and shared across theCompany through an information sharing system that excludes
personal information. Items that are considered impactful tocustomer satisfaction and insights gleaned from ordinary contact
with customers are reported daily to top management in the formof the VOC*1 Daily Letter. Through such efforts, Lion works to
improve customer support quality by gaining an understandingof the customer’s perspective and by quickly considering andresponding through improvement measures, mainly throughthe Product Planning Division. In 2019, we sent out 236 VOC
Daily Letters. Customer feedback comes from a wide range ofsources, including not only telephone calls and emails, but also
from SNSs*2 and the like. An internal dedicated organization
analyzes such this feedback and proactively disseminates
information gleaned from it to the relevant departments.
*1. VOC: Voice of Customers*2. SNS: Social networking services (Facebook, Twitter etc.)

Recall Status of Varsan Hyosatsu Jet

Normaluse

Usage intended
by LionLion has been voluntarily recalling Varsan Hyosatsu Jet for Flying
Insects and Varsan Hyosatsu Jet for Crawling Insects since August 27,
2007, because these products have led to fire-related accidents. As ofthe end of December 2019, 1.48 million of these products have beenrecalled (recall rate: 45.7%). We ask consumers who still have any ofthese products and reside in Japan to assist in the recall.

Notice Regarding Varsan Products (Japanese)https://www.lion.co.jp/ja/products/
information/200708_01.php
Lion Integrated Report 2020: Sustainability

34

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

E S G

Providing Useful Information for Daily Living and Promoting Educational Activities
Lion actively engages in communication with consumers withthe aim of expanding our creation and dissemination of
information that contributes to healthy and comfortable living.
Survey and research data

Customer opinions

Collection andaccumulation of information

Creation of useful information

快適生活研究所

暮らしのマイスター

快適生活研究所
快適生活研究所
Lion
Comfortable
快適生活研究所
快適生活研究所
快適生活研究所

快適生活研究所
Lifestyle Laboratories

Transmissionof news

Oral care seminar for a PTA by a Meister of Daily LifeMedia, etc.

EventsSchools, business
partners, facilities, etc.

Meistersof
暮らしのマイスター
暮らしのマイスター
暮らしのマイスター
暮らしのマイスター
暮らしのマイスター

暮らしのマイスター
Daily Life

Information
dissemination

Publications

Books

WebsitesCommunication with Customers Using the “Lidea” Lifestyle Information Website
Lidea is a lifestyle information website aimed at inspiring
curiosity about living habits and helping users cherish each day
by providing content about Lion products, the technologies
behind them, and approaches to daily living. The site provides
accurate information that is useful for consumers’ daily living,
presented mainly by the Meisters of Daily Life, lifestyle
information specialists.

Going forward, Lion will continue to provide information usefulfor daily living through Lidea and use the information
accumulated through Lidea to deepen diverse forms ofcommunication with customers.
Lidea (Japanese)

https://lidea.today/

Information Security Measures
In order to thoroughly protect personal information and ensure
information security, Lion has established the Personal
Information Management Regulations, the Basic Policy of Our
Information Management, the Information Management
Regulations, and the Information Security Regulations inaccordance with Act on the Protection of Personal Information.
In addition, with a view to ensuring appropriate publishing of
information, we have established the Lion Group Social Media
Policy and related guidelines regarding employee use of social
media (social networking services, blogs, etc.).

As education for our employees in Japan, we implement
e-learning every year regarding the risks of social media,
information security and information management structures.
All domestic Group employees participated in 2019. For ouroverseas Group companies, we are enhancing information
security, including the protection of personal information,
based on local legislation.
Lion Group Social Media Policy

https://www.lion.co.jp/en/legal/smp.php
Ensuring Product Safety and Reliability (Japanese)

https://www.lion.co.jp/ja/csr/consumer/

35

Lion Integrated Report 2020: Sustainability

Consumer Issues

Community Involvement
and Development

Organizational
GovernanceE S G

Related SDGs

Community Involvement andDevelopment
Basic Approach
Since its founding, Lion has sought to help consumers enjoy healthy living through the provision of
products while carrying out educational activities and communication aimed at creating better living habits.
In Japan and other Asian countries, Lion is engaged in initiatives that contribute to the sustainable
development of society and the global environment through the areas of health, comfort andcleanliness. We believe that our continued business viability depends on co-existing harmoniously withthe communities in which we are involved, such as those where Lion facilities are located. We therefore
strive to help solve issues in and invigorate local communities in partnership with local residents,
government agencies and citizens’ groups. In addition, by increasing opportunities for every employee
to get involved in business-related educational activities, we foster human resources that create newvalue informed by a high level of social and environmental awareness.
Aiming to contribute to everyday health and comfort and longer healthy life expectancy around theworld, Lion seeks to “ReDesign” everyday rituals to become more natural, easy and enjoyable in orderto realize healthy minds and bodies for all.

Environmental Communication
Business
Domains

HealthComfortCleanliness

Promotingoral healthcare

Supporting mental andphysical comfort

Establishing goodcleanliness habits

Co-existence
withcommunities

Employee
involvement

Enhancementof partnerships

Basic
Policies

Creating Healthy Living Habits in Coordination with Communities
Promoting Oral Healthcare
Lion aims to help improve consumer health through oral
healthcare. The keys to oral healthcare are learning correctknowledge and establishing preventive dentistry habits to manage
dental health and avoid problems. Accordingly, Lion is working to eveloping Oral Healthcare Leaders in Coordination
Dwith Local Governments
Lion seeks to promote preventive dentistry practices that
consumers can perform themselves. To this end, in communities
with which we have formed partnerships, we hold oral healthcare
leader development lectures to empower local governments, asoral healthcare leaders, toprovide residents with toothbrushing information andpractical techniques that canbe beneficial to overall health.
We are currently carrying out
these activities in the cities of Oral healthcare leader development
Ishinomaki and Sakaide.
lecture in Sakaide
Oral Healthcare Leader Development Lectures (Japanese)https://www.lion.co.jp/ja/csr/community/oral/self-care/

help consumers understand the significance of forming healthy
habits and, through the provision of products and services,seeking to “ReDesign” everyday rituals to become more natural,easy and enjoyable so that people will naturally want to do them.

New Community Building Activities Using Online Content
In 2019, we launched HAGUKI CHECKER,* an online tool thatchecks the state of users’ teeth and gums. Users simply use asmartphone or other device to take photos of the inside of
their mouths, including the teeth and gums, and upload themto HAGUKI CHECKER. The online service then uses AI to
identify individual teeth and check the state of the gums
around each. By helping consumers see and understand theirown oral environments, HAGUKI CHECKER sparks greaterinterest in the state of their gums.
* Developed based on Lion’s data and expertise, HAGUKI CHECKER was createdusing the AI image analysis technology of Automagi Inc. and the service
development technology of MTI Ltd.
Gum checking tool HAGUKI CHECKER

Users

Cumulative

Approx. 16,000(July 22, 2019 to December 26, 2019)
Lion Integrated Report 2020: Sustainability

36

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

E S G

Promoting Oral Healthcare through the Lion Foundation for Dentistry HealthIn line with the principle of “returning profits obtained throughcorporate activities to society,” which has remained
unchanged since its founding, Lion has been implementing
oral healthcare promotional and educational activities since1913. In 1964, Lion established the Lion Foundation for Dental
Health (LDH), which was approved by the then Ministry of
Health and Welfare of Japan. In 2010, the Cabinet Office
approved a change in the foundation’s status to a public

interest incorporated foundation. Through the three publicbenefit services shown below, LDH continues to work tomaintain and improve the dental and oral health of consumers
in coordination with the Japan Dental Association, universities
and government bodies. LDH thus strives to contribute tosociety at the frontlines of oral care in order to improve qualityof life for all. Lion lends its full support to these activities.

Three Public Benefit Services of LDH

Main Activities of LDH in 2019

1. Oral health promotion projects
Educational activities to promote oral health practices
at all life stages
2. Research and investigative projects
Research and investigation into the importance of oral
care for extending healthy life expectancy and theprovision of information on research results obtained
through business and other activities to specialists
and customers
3. Educational and training projects
Holding of various seminars and lectures for healthinstructors and dental specialists

Oral health promotion for mothers and childrenChildcare support programs in the areaof dental and oral health for expectant
mothers and infants, preschoolers andtheir guardians.
Participants: 1,435 infants andpreschoolers
Cumulative
participants

https://www.lion-dent-health.or.jp/english/
The Oral Health Event of Tooth Brushing for Children
The Oral Health Event of Tooth Brushing for Children, started in
1932, is held every year for elementary school students during
Dental/Oral Health Week (June 4th to 10th). For the 77th eventin 2020, participating schools chose a date to participate andtook part by watching an educational DVD. Approximately
270,000 elementary school students attending a total of 4,722
schools participated in 2020, including students in Japan andaround the world.

1,150,000

Oral health promotion for school children
Face-to-face educational activities withschoolchildren and their guardians andsupport for the activities of healthinstructors.
Participants: 6,315 schoolchildren
854 health instructors
Cumulative
participants

Lion Foundation for Dental HealthApprox.

Approx.

23,285,000

Oral health promotion for adults (in industry)
Instruction focused on the prevention ofa gum disease and on the maintenanceand improvement of dental and oral
health for employees of various
companies.
Participants: 15,212
Cumulative
participants

Approx.

2,122,000

Oral health promotion for the elderly (from 2007)
Provision of support to help maintainoral functions so that participants caneat with their own teeth and mouth long
into the future.
Participants: 66,042
Cumulative
participants

Approx.

186,000

Dental Checkups and Treatment
Implementation of highly professional,
high-quality treatment and preventive
dentistry activities tailored to individuals
at all life stages, from infants to the elderly.
Participants: 5,502
Cumulative
participantsParticipating elementary
school students

37

Approx.

1,864,000

Cumulative totals are total numbers
since establishment of the LDH (1964)

Promoting Oral Healthcare (Japanese)
Cumulative

Approx. 1.96 million

Lion Integrated Report 2020: Sustainability

https://www.lion.co.jp/ja/csr/community/oral/

Consumer Issues

Community Involvement
and Development

Organizational
GovernanceE S G

 ctivities to Establish Cleanliness Habits throughA
Employee Involvement
Lion implements activities to promote proper hand washinghabits, mainly with the KireiKirei brand, aiming to realize
everyday health and comfort for consumers.
With a policy that encourages employees to get involved
through volunteer activities, Lion aims for 100% of current
employees to have participated in activities to promote good
hand washing habits by 2050. From 2012 to 2019, 1,222
employees participated (cumulative participation rate 42.8%).
Over this period, approximately 35,000 preschoolers
participated in these activities. We are promoting good handwashing habits at kindergartens, preschools and public
facilities, mainly in the areas where Lion facilities are locatedacross Japan, Ishinomaki City (Miyagi Prefecture), which wasaffected by the Great East Japan Earthquake and an area
closely connected to our founder, and Sakaide City (Kagawa
Prefecture), where KireiKirei Hand Soap is manufactured. In
addition, we conduct activities in cooperation with ourbusiness partners and incorporate good hand washing habit
promotion activities conducted at kindergartens andpreschools into the corporate training programs of young
employees in order to heighten employee awareness ofcommunity involvement. Activities to promote good handwashing habits are also conducted in Asian countries andregions where KireiKirei products are sold.
We work with local governments as well. Since 2014, SakaideCity, Lion and the Lion Chemical Co., Ltd. Oleochemical
Production Site, which produces KireiKirei hand soap, havebeen jointly promoting the KireiKirei City-Sakaide Project,aiming to spread and establish cleanliness habits among thecitizens of Sakaide City.
* Oral healthcare educational activities were also initiated from April 2019.

Participating preschoolers
Employee participation rate

Cumulative

Approx. 35,000

Cumulative

Approx. 42.8%

Establishing Cleanliness Habits (Japanese)

https://www.lion.co.jp/ja/csr/community/washing/Interacting withlocal families(Sakaide Project)

Initiatives for Hygiene and Health Care in Times of Disaster
Paying attention to health is especially
important in a disaster situation. Lion
creates and distributes pamphlets andposters titled “Hygiene and HealthCare in Times of Disaster” as part ofefforts to provide information oncleanliness and health care.
From 2017, we have held educational
activities for local residents in the communities throughout
Japan where our facility sites are located. We will contribute to
the establishment of cleanliness habits.
Hygiene and Health Care Information for Times of Disaster

https://www.lion.co.jp/en/emergency-care/

Activities in Coordination with Communities
Plant Tours
Lion considers plant tours to be an important contact point
between customers and the Company. So that customers can
get to know Lion products and witness the extremely highpriority the Company places on safety and environmental
conservation in its operations, we welcome many visitors to
the plants every year.
Plant

Plant tours

Participants

Chiba

71

1,825

Odawara

107

2,823

Osaka

48

1,149

Akashi

63

1,340

Total

289

7,137

(January 1, 2019 to December 31, 2019)

Explanation of the laundry detergent manufacturing process (Chiba Plant)

Read about Lion’s environmental communication initiatives:• Toothbrush Recycling Programp.20• Forest Maintenance Activities at the Lion Forest in Yamanashi
p.21• Biodiversity Conservation (Japanese)https://www.lion.co.jp/ja/csr/
biodiversity/activity/
Lion Integrated Report 2020: Sustainability

38

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

E S G

Fair Operating Practices

Related SDGs

Organizational Governance
Basic Approach
The Lion Group’s top priorities for corporate governance are to increase management transparency,
strengthen supervisory functions, accelerate decision making and ensure compliance. By strengthening
and enhancing its corporate governance system, Lion aims to increase its corporate value.

Corporate Governance System
Committee were established to increase managementtransparency and further enhance corporate governance.
Membership of each of these committees comprises mainly
five external officers (three external directors and two external
Audit & Supervisory Board members), all of whom are qualified
as independent directors. The representative directors and all
the external officers exchange information regularly (once amonth, in principle) in an effort to enhance management
oversight and monitoring functions.

At Lion, oversight of management is carried out under an audit
and supervisory board system. In March 2004, Lion adopted
an executive officer system and divided the functions
previously handled by the Board of Directors. Under the new
system, the Board of Directors is responsible for management
decision making and oversight, and the Executive Committee
is charged with business execution.
Moreover, Lion reduced the size of its Board of Directors fromthe 19 directors it had before adopting the executive officer
system to the current nine in order to facilitate more
substantive discussion and faster decision making. Also, aNomination Advisory Committee and Compensation Advisory

In addition, to reflect the opinions and advice of third parties withregard to legal compliance and management policies, we have
set up an Advisory Committee consisting of external experts.
Corporate Governance
Report (Japanese)

Shareholders Meeting
Consultation

Compensation
Advisory Committee

Consultation

Advisory Committee

Response

Response

Board of Directors
Supervision of management
P Decisions on execution of importantmanagement matters
P Supervision of directors’ executive
performance
P Supervision of executive officers

Reporting

AdviceDelegation

Auditing
Auditing

Legality audits
Operational audits

ReportingOpinions
and advice
on legalcompliance

Auditing

ReportingExecutive Committee
Execution of operations

ReportingSenior Executive Committee

Legality, fairness
and efficiency
audits; complianceprogress audits

Auditing OfficeInternal control offinancial reporting

Proposals

Basic policies for mediumto long-term management
plans and other major
corporate strategies

Audit & Supervisory
Board Members Monitoring

Accounting Auditors

Nomination
Advisory Committeeh ttps://www.lion.co.jp/
ja/company/about/
pdf/abo_gov.pdf

Departments
Execution of operations
Business divisions, Production Headquarters,
R&D Headquarters, and operating divisions

Auditing

Strengthening of legal compliance and ethics

Corporate Ethics Committee
Lion Group Charter for Corporate Behavior; Behavioral Guidelines

Sustainability Management
We believe that growing our business while reducing theburden on the planet contributes to the creation of asustainable society.
In January 2019, the former CSV Management Meeting andEnvironmental Conservation Committee were integrated to39

Lion Integrated Report 2020: Sustainability

create the Sustainability Promotion Meeting. Comprising all
executive directors, including the President, and related
departments, the meeting deliberates on and monitors theexecution of Company-wide CSV strategy, the Sustainability
Material Issues and policy regarding environmental issues.

Consumer Issues

Community Involvement
and Development

Organizational
GovernanceE S GMatters decided at the Sustainability Promotion Meeting are
discussed by the Executive Committee and Board of Directors
as necessary and then reflected in the business activities ofbusiness execution departments.
In 2020, objectives for 2030 regarding the Sustainability
Material Issues were discussed by the Sustainability Promotion
Meeting and approved.

Board of Directors
Executive Committee
Referral for discussion

Sustainability Promotion Meeting
Reflect decisionsin operations

Share progress status

Business execution departments
Business divisions, Production Headquarters, R&D Headquarters,
operating divisions, affiliated companies, overseas Group companies

Internal Control System
In accordance with the Corporation Law and the Enforcement
Regulations of the Corporation Law, Lion has put systems inplace to ensure the appropriateness of Group operations. With
regard to the systems for evaluating and auditing internal control
with respect to financial reporting, as prescribed in Japan’s
Financial Instruments and Exchange Act, we have establishedcontrols at the Company-wide and business process levels.
Evaluations of the effectiveness of our internal control are madeby the Auditing Office, which reports its findings to the President
and Audit & Supervisory Board members. It also reports to theBoard of Directors on a regular basis. As a result of theseevaluations, we have determined that Lion’s internal control withrespect to financial reporting in 2019 was effective, and we
submitted our Internal Control Report along with our Securities
Report to the Prime Minister in March 2020.
Securities Report (Japanese)

Internal Audits
The Auditing Office, under the direct supervision of the
President, implements audits across the Lion Group,
examining their operations from the perspectives of legality,
fairness, efficiency and risk management in order to establish afoundation for sound business activities. One of the features ofLion’s internal audit system is that we exchange information
closely with the Audit & Supervisory Board Members, striving
to reinforce coordination. Audit results and the status of
improvements are reported to the President, directors withrelated responsibilities and the Executive Committee after each
audit. A summary of the audit results is reported to the Boardof Directors twice a year to advance PDCA management ofaudit operations. Reports are also provided to the Executive
Committee to facilitate the sharing of information with businessexecution departments.

https://www.lion.co.jp/ja/ir/library/yuhou/

Risk Management
In order to continue providing our customers with safe andreliable products, we have appointed a Director Responsible
for Risk Management who comprehensively controls andsupervises risk for the whole Lion Group. Appropriate
countermeasures for the management of risk related to theenvironment, quality assurance, and accidents and disasters
are formulated in advance by the Sustainability Promotion
Meeting, CS/PL Committee, and Safety, Hygiene and Disaster
Prevention Meeting, respectively, and deliberated by the
Executive Committee when necessary. Each plant is certified
with ISO 14001 or operates based on ISO 14001 and works
proactively to maintain and improve quality management andenvironmental conservation. In the case of a physicalemergency, such as a natural disaster or accident, in
accordance with the Emergency Response System (a system
of manuals outlining countermeasures against earthquakes or
influenza and other infectious diseases), we report the relevantfacts to the President and Audit & Supervisory Board
members. At the same time, the directors of relevant
departments collect all pertinent information, formulate
response measures, clarify causes, determine
countermeasures and submit reports on these actions to the
Executive Committee and the Board of Directors.
Furthermore, among the various risks that may arise while
doing business, the five listed at right are the main risks that

may have a particularly significant impact on investor judgment
and are disclosed in the Company’s Securities Report.

Business Continuity Plans (BCPs)
Lion works to build and maintain systems to minimize damage
and to ensure the continuation of business operations so that it
can provide products to customers even in the event of amajor earthquake, outbreak of infectious disease (pandemic) orother such contingency. We will set up a task force andrespond according to the “Manual on Countermeasures for
Earthquake Disaster” when a major earthquake occurs, andaccording to the “Manual on Countermeasures against Novel
Influenza and Other Infectious Diseases” if a pandemic due toa novel influenza virus or other infectious disease is foreseen.
We will judge whether or not to activate a BCP according to
the scale and other conditions of the disaster. If a BCP isactivated, our system is designed to give top priority tobusinesses that supply consumer products.
A summary of countermeasures to risks that may have aserious impact on our business is reported to the Executive
Committee annually.
1. Product quality and value
2. Changes in raw material prices
3. Exchange rate fluctuations

4. Major lawsuits
5. Earthquakes and othernatural disasters

Lion Integrated Report 2020: Sustainability

40

Lion’s Sustainability

The Environment

Human Rights

Labor Practices

Fair Operating Practices

E S G

Spreading and Strengthening Compliance Awareness
The Lion Group Charter for Corporate Behavior andBehavioral Guidelines form the foundation of the LionGroup’s compliance framework. The Corporate Ethics
Committee, chaired by the director responsible for corporate
ethics, works proactively to foster compliance awarenesswithin the Lion Group. The Lion Group Charter for Corporate
Behavior and Behavioral Guidelines are distributed in

e-Learning Training

pamphlet form to all employees and publicly available on
Lion’s website.
Moreover, we established the LION Anti-Bribery Principles inJanuary 2019 in light of developments around the world
related to strengthening legal regulations against acts ofbribery and corruption.
The AL Heart Hotline System

Compliance Awareness Survey
All domestic employees of the Lion Group (including part-timeworkers) are asked to complete the annual Compliance
Awareness Survey.* In 2019, the survey was conducted for the
16th time. Approximately 92.8% of the targeted 4,406
employees responded. The survey results are reported to
management and feedback is provided to individual divisions inorder to help maintain and strengthen our compliancesystems. Every year, improvements are made based on
opinions solicited through the survey on such matters as
problems in the workplace environment.

Consulter/Reporter
Employees of the Lion Group, Temporary Staff or External Business Partners

Seeking Solutions/Resolving Problems

Lion conducts periodic e-learning and other training every six
months. Topics covered in 2019 included a declaration ofcommitting to the Lion Group Charter for Corporate Behavior, thebasics of labor management, the workplace environment andcompliance (including harassment prevention), Lion’s conceptual
approach to quality, information security and basic knowledge ofinsider trading regulations. We also provided new training
regarding human rights, bribery and safety (including occupational
accidents), in which 100% of employees participated.

Consultations andreports

Feedback

Internal contact
Director of Corporate Ethics
ReportingInstruction

Corporate Ethics
Committee Chair

40

60
92.2

80

100
7.5

2018

95.2

4.6

2019

95.0

4.8

Feedback received

Not received

(%)
0.3
0.2
0.2

No response

LawyerReport investigation
results andcountermeasures

Report as needed

Board of Directors

Ethics Evaluation Committee
External experts

AL Heart Hotline Consultations and Reports
In 2019, the hotline received 25 consultations and reports.
However, none of the cases were judged to constitute serious
misconduct, and all were appropriately addressed and resolved.

Percentage of Employees Who Received Feedback from the Survey Results
20

External contact

Set up as needed

Content of consultations andreports made0

Feedback

Corporate Ethics
Committee

Going forward, Lion plans to expand the survey to overseas
Group companies to further strengthen compliance functions.

2017

Consultations andreports
Report contents ofconsultations/reports

2017

2018

2019

Harassment

9

15

11

Personnel and labor
management issues

5

6

11

Others4

2

3

AL Heart Hotline (Japanese)

https://www.lion.co.jp/ja/company/compliance/* Compliance Awareness Survey
Anonymous questionnaire survey covering such topics as compliance with
the Lion Group Charter for Corporate Behavior, whether there was
feedback from the results of the previous Compliance Awareness Survey,
and awareness of the AL Heart Hotline.

Raising Awareness of the Hotline
Lion has set up an internal and external whistle-blowing
system, the AL (All Lion) Heart Hotline, and is taking steps toraise awareness of said system among all employees,
including temporary staff. Its recognition rate among
employees was 98.6% in 2019.
The AL Heart Hotline Employee Recognition Rate
2017
2018
2019

41

95.8%
98.5%
98.6%

Lion Integrated Report 2020: Sustainability

Compliance Initiatives at Overseas Group Companies
The Lion Group implements initiatives at overseas Group
companies aimed at spreading and strengthening complianceawareness Group-wide. In 2019, representatives fromcompliance-related departments visited overseas Group
companies to promote awareness of compliance-related efforts,such as the LION Human Rights Policy, LION Anti-Bribery
Principles and AL Heart Hotline, as well as related initiatives.
Information about some of our other overseas initiatives isavailable on our website.
Embedding Compliance (Japanese)

https://www.lion.co.jp/ja/csr/management/compliance/

Consumer Issues

Community Involvement
and Development

Organizational
Governance

External Evaluations/Participation in External Groups(As of May, 2020)

Lion is engaged in addressing issues not just on the financial side, but also on the environmental, social and governance side, and isincluded in multiple SRI (socially responsible investing) indices.
In addition, our environmental, logistics and human resources initiatives have been highly evaluated by governmental and otherexternal institutions.

Status of Inclusion in SRI Indices

Evaluation and Certification
Overall CSR

Environment and Logistics

Human Resources

Participation in External Organizations

Lion Integrated Report 2020: Sustainability

42Inquiries
Lion Corporation
3-7, Honjo 1-chome,
Sumida-ku, Tokyo 130-8644, Japan
Website (English): https://www.lion.co.jp/en/
Tel: +81-3-3621-6211