Top Message

Aiming for the Highest Customer Satisfaction, Lion
Promotes CSR Management
Lion’s Corporate Social Responsibility (CSR)
The improvement of people’s daily lives through the
production of high-quality products is one of Lion
Corporation’s most important CSR activities. Thisis implemented by placing the highest priority on
customer satisfaction and ceaselessly developing
technological innovations, in tandem with thecreation of a wide range of superior products.
Lion has established three visions in order tofulfill this responsibility Companywide: become “theleading company in the new comfortable lifestylesupport industry”; become “a leading company inenvironmental friendliness”; and “activate a corporate
culture of tenacity, creativity and learning.”

New Comfortable Lifestyle Support Industry
Lion defines “the new comfortable lifestyle support
industry” as one that provides ideas for developing
positive daily habits to help people live fulfilling andhappy lives. Presently, the overall market is divided
into three sectors—toiletries, over-the-counter (OTC)
drugs and functional food products—which are worth
in excess of \3 trillion. It is in these sectors that Lion
Corporation can use its management resources mosteffectively.
Previously, Lion’s social mission focused on
promoting the idea of cleanliness and health.
Currently, however, no mission is more important
than helping people lead fulfilling lives, undertaking
activities to further improve daily life and responding
to the needs of those who want to lead happy lives.
From being leaders in the culture of cleanlinessand health to becoming leaders in the culture of
comfortable lifestyles, Lion aims to be the number
one company in the industry.

ECO LION Activities
Lion’s Companywide environmental protection
initiatives are organized into five main areas: “reducing
greenhouse gas emissions,” “effectively using andrecycling resources,” “considering the environment
from a product-oriented perspective,” “appropriately
handling chemical substances,” and “fostering
environmental awareness within the Lion Group.”
The concept of “considering the environment froma product-oriented perspective” involves the Lion Eco

1Standards. Established in 2006, these standards are
based on the perspective of undertaking a “lifecycle
assessment” that evaluates environmental burden
across the entire lifecycle of products. Utilizing the Lion
Eco Standards, Lion Corporation is actively developing
products that take the environment into consideration.
“Reducing greenhouse gas emissions” involves
a further reduction of CO2 emissions, not only inbusiness operations, but also during product usage.
Owing to a higher ratio of plant-based ingredientsused in our lineup of laundry detergents, Lion
Corporation has been able to substantially reduce
CO2 emissions of its products used in the home.
Reductions in greenhouse gas emissions in 2007,
which takes into account combined CO2 emissions
from both business activities and product use in thehome, were 37% below 1990 levels. This compares
favorably with the 6% reduction of CO2 emissions
compared with 1990 levels that was mandated forJapan in the Kyoto Protocol.
In recognition of these efforts, Lion Corporation waspresented with the 16th Grand Prize for the Global
Environment Award in April 2007, further encouraging
all Lion employees. Going beyond the Kyoto Protocol,
this year Lion also established the challenging goal of
reducing CO2 emissions by 67% of 1990 levels by 2020.

Invigorating Lion’s Corporate Culture
Striving to maintain the spirit of tenacity andcreativity as an important management philosophy,
Lion is taking measures to foster a climate of renewed
enthusiasm by encouraging all employees to carryout their jobs boldly.
Initiatives to energize employee enthusiasm include
introducing funding for research and activities
that promote innovative ideas to develop specificbusinesses operations. In addition, an in-house
contest has been held involving teams drawn fromeach department. The contest awards suggestions
related to a variety of themes that are not directly
connected to employees’ regular duties. In order for
employees to work to their full potential, Lion is also
demonstrating its commitment to an improved work/
life balance through such measures as improving
childcare systems.

The Voluntary Recall of Varsan Hyosatsu
Jet Spray
Varsan Hyosatsu Jet Spray was introduced to the market
in the spring of 2007 to favorable reviews. Several
cases of combustion occurred despite Lion’s proactive
attempts to heighten consumer awareness of the riskof combustion when this product is used in proximity
to open ﬂames or sparks. Such actions included
placing warning seals directly on products, as well as
publicizing these warnings via television, newspapers
and the Company website. Placing the highest priority
possible on customer safety, Lion Corporation decided to
implement a voluntary recall of this product to prevent
further accidents. These incidents made it clear that theuse of the term “hyosatsu” (ice kill), in combination withthis product’s insecticide-free characteristics, further
undermined warnings related to its ﬂammability.
As a company that places the highest priority on
customer satisfaction, Lion will continue to improve
products from the perspective of customers insteadof suppliers, as it continues to make concerted
companywide efforts to strengthen the trust that has
been placed in it by customers.

The Vision of Lion’s CSR Activities Moving
towards the Future
I believe that the future vision of Lion’s CSR activities
involves fostering a greater degree of communication
with all its stakeholders, beginning with customers.
Making efforts to seriously consider customer
feedback and reﬂect this in our business operations
is an important issue for Lion Corporation. Coupledwith considering information received from thosedepartments that make direct contact with customers
seriously, we are taking steps to encourage further
dialogue with stakeholders.
In addition, based on the commercialization of theplant-based surfactant methyl ester sulfonate (MES),
which is derived from palm oil, Lion’s CSR activities arebeing extended to raw materials procurement overseas.
At the same time, Lion is strengthening ties amongaﬃliated companies overseas with regard to CSR.
In order to ceaselessly improve activities to maintaincustomer satisfaction, as well as to fulfill the trust andexpectations of our stakeholders, Lion Corporation willcontinue to advance its CSR activities.

President and Chief Executive Officer

22

Special Topic

1

Lion's Activities to Prevent Global Warming

Promoting methyl ester sulfonate (MES) surfactants as
the standard ingredient for detergents worldwide!
Considering the Environment
by Using MES
The plant-based surfactant「MES」
MES, the washing components ofsuch Lion laundry detergents as
TOP, is a surfactant derived frompalm oil.

Preventing Global Warming

Considering the Aquatic Environment

MES Is Carbon Neutral

MES Features Superior Biodegradability

Surfactants, one of the raw materials used in laundry
detergents, contain carbon (C). After use, surfactants arebiodegraded in the environment to become carbon dioxide(CO2) and water.
Both plant- and petroleum-based laundry detergents
contain carbon and therefore biodegrade in the samemanner, resulting in CO2 emissions. However, even thoughplant-based surfactants emit CO2 as they biodegrade, there
is no increase in the total volume of CO2 emitted into theatmosphere because plants grow by absorbing CO2 and solar
energy (carbon neutral).
This means that plant-based detergent MES do not add tothe total amount of CO2 in the atmosphere, despite CO2 being
emitted while it decomposes after use.
Compared with CO2 emissions produced by petroleumbased High Top laundry detergent in 1990, Top, which was
released on to the market in 2006, can cut CO2 by 47% (figures
calculated by means of Life Cycle Assessment [LCA]*1).

Surfactants disposed into the environment after
use are decomposed (biodegraded) into CO2, waterand other inorganic substances by microorganisms.
MES biodegrades easily and does not remain in theenvironment for a long time.
■ Biodegradation of Surfactants
100

50

MES
＊2

0

LAS
Soap
＊3
ABS (Reference value)
2

4

6

8

10

Days elapsed MBAS (Methylene blue active substance) Indicator*Source: Journal of the Japan Oil Chemists Science, Vol. 42, No. 9, p. 643-648 (1993).

The High Detergency of MES■ Carbon Neutral
Carbon fixation

CO 2

Use to photosynthesis
Increases CO 2
in the air

Photosynthesis

O2

Vegetable oil
Plant-based ingredients

Laundry
Detergents

CO 2

Petroleum-based ingredients
Surfactants
Crude oil

Biodegradation
H2O

A smaller amount of detergents that feature highdetergency are required per load of laundry, making
it possible to reduce the amount of organic matterreleased. Consequently, the overall load on the aquatic
environment is reduced. Blended with high detergency
MES, the present version of Top laundry detergent
releases only one-fifth the volume of organic substances
per load of laundry compared with powdered soaps.
In addition, MES is also compatible with enzymes thatbreak down grime, enhancing its detergency even further.

Fixed Carbon＊ 1 Life Cycle Assessment: A method of quantitatively measuring environmental impact of the entire product life cycle, from raw materials procurement to manufacturing and disposal.
＊2 LAS: Readily biodegradable surfactant linear alkylbenzene sulfonate3＊ 3 ABS: Branched alkylbenzene sulfonate, a surfactant that is highly resistant to biodegradation

Releasing MES on to the World Detergent Markets!
Committed to being a leading company in environmental

billion. This subsidiary is expected to produce 100,000 tons

friendliness, Lion Corporation is taking steps in achieving aof MES annually—a quantity equivalent to approximately

sustainable, recycling-oriented society by supplying superior

one million tons of laundry detergent—and the first phase

MES to the world detergent market, with the goal of making

of manufacturing will start in December 2008. By utilizing

this a standard ingredient in detergents worldwide.

plant-based MES, it is possible to reduce CO2 emissions, theIn June 2007, Lion established Lion Eco Chemicals Sdn.

cause of global warming.

Bhd. as an overseas manufacturing and sales subsidiary in
Malaysia, with total expenditures projected to exceed \10

Aiming to Achieve Sustainable Procurement of Palm Oil
Towards Realizing a Sustainable Supply
In 2006, Lion Corporation became a member of theRoundtable on Sustainable Palm Oil (RSPO) andsends a representative to the Annual Roundtableof the RSPO held every fall, at which an exchangeof opinions is conducted. In addition, Lion beganproviding technical support related to the refinement
and effective utilization of palm oil to the governmentowned Palm Oil Research Institute of Malaysia(PORIM) and the Malaysia Palm Oil Board (MPOB) as
early as the 1980s.
At the 5th Annual Roundtable of the RSPO held in
Kuala Lumpur in November 2007, the principles andcriteria for sustainable palm oil production (plantation
management criteria) were confirmed after a two-year
test. Based on this, certification audits of plantations
and distribution of RSPO-certified sustainable palm oilbegan in 2008. In anticipation of these actions takenby the RSPO, Lion implemented an independent audit
of supplier plantations in May 2007.
In response to the possible future depletion of such
finite natural resources as petroleum, renewable
resources are available owing to the cultivation ofplants, which are effective in the fight against global
warming owing to their carbon-neutral effect. Lion’s
use of palm oil will continue in the future as a usefulalternative to fossil-based natural resources due to its
superior level of yield.

margarine and shortening, with the remainder used
as industrial raw materials. As the world’s population
continues to increase, the global food supply is
expected to become even more strained in the near
future. In order to meet the increased demand fromdeveloping countries such as China and India, inparticular, it is believed that the volume of palm
oil production, which has a high rate of yield, willcontinue to expand in the coming years.
However, various environmental and social problems
such as the clearing of tropical rain forests and theshrinking of wildlife habitats stemming from thecreation of new plantations, as well as poor working
conditions, are becoming evident.
In light of such conditions at these areas ofproduction, Lion Corporation is working to maintaina responsible procurement of palm oil throughactions that promote adequate management
among suppliers—following the RSPO’s criteria forplantation management—as well as through activities
undertaken by the RSPO.

Resolving Issues Related to Procurementof Palm OilWith total worldwide production standing at
approximately 38 million tons per year, palm oil
production has exceeded all other fats and oils.
Approximately 80% of palm oil is used as cooking oil,

Audits of plantations4

特Special Topic

2

In Order to Deliver Safe Products to Customers:
Upgrading safety systems and strengthening product safety evaluation capabilities incompliance with amendments to the Consumer Product Safety Law

Systems that Ensure Safety
Lion Corporation is endeavoring to further expand product safety by integrating information regarding problems
with products and services, establishing an accident reporting system, and upgrading communication systems.

Integrating Information
Aiming for a Rapid Response

The Consumer Service Office compiles all relevant information related tosuch inquiries as products defects, services-related problems and problems
related to competitor products, and it oversees the integration of thisinformation and initiates responses.
The Consumer Service Office classifies information it receives related
to problems by level of importance, and a quick response is initiated that
includes the appropriate dissemination of information and issuance of
product accident reports.

Establishing an Accident In accordance with revisions to the Consumer Product Safety Law (May2007), the goal of which is to prevent the spread of damage resulting from
Reporting Systemproduct accidents, Lion Corporation established a system to facilitate
Aiming to Prevent Increases in
Product-Related Accidents

rapid reporting to relevant government agencies and customers and to
execute necessary responses if problems related to Lion products should
occur. In the event of a major accident, top management is immediately
informed and procedures for rapid decision-making are implemented.

Notification System
MaintenanceIn light of recent cases of food mislabeling, Lion established an internal

Striving to Increase Product Safety

accidents. Intended to prevent product defects and accidents, thiscommunications system known as the “Quality Information Hotline,”
which facilitates reporting of suspected product-related problems andsystem is maintained by investigating the speed of responses by relevant
departments to information obtained, wherein necessary improvement
measures are implemented. In addition, absolutely no detrimental effects
are incurred by personnel that use this system to inform the Company
about product-related problems.

5Evaluating Safety from the Customer’s Perspective
Aiming to make safety a top priority during productdevelopment, safety evaluations are undertaken from a
consumer-science standpoint that factors in customer
viewpoints. This is in addition to regular safety evaluations
conducted from a more specialized outlook. Such safety
evaluations are important given that there are cases
where consumers use products in ways not intended by
the manufacturer, and product usage occasionally exceedssocially accepted norms. In order to ensure customer
safety during a wide range of product uses, evaluations
based on the following structure are conducted.

2

In the following chart, anticipated usage is classified into
four separate categories: ordinary use, improper use,abnormal use and reckless use. Predictions of danger andharm can be formulated based on these use classifications.

3

Ensuring customer safety is essential not only duringordinary use, but during improper use as well. For

abnormal product use also, it is important to determine
whether risks can be reduced, what level of risk is
acceptable and readjust a product’s design accordingly.
Product safety is enhanced as much as possible by1

Regarding products under development, in addition
to evaluations undertaken by development personnel,

a specialized development support department conducts

reducing risks to acceptable levels and providing warning
displays, all of which allows customers to use Lion
products reliably.

evaluations from a customer-oriented perspective.
Through this evaluation, development personnel are better
able to understand and foresee possible product uses bycustomers that fall outside a product’s intended use.

■ Range of Safety Assurance

Risk Reduction to an Acceptable
Level and Warning Displays

Reckless
Use

Irrational usage that cannot be
predicted

Abnormal
Use

Predictable but socially unacceptableusage (extraordinary and excessive
use and extreme deviations fromdirections/applications)Improper
Use

Usage unintended by the
manufacturer that must be anticipatedOrdinary
Use

Product usage intended by the
manufacture

Required Safety
Assurance

The Voluntary Recall of Varsan Hyosatsu Jet Spray
Varsan Hyosatsu Jet Spray for Flying Bugs and Varsan Hyosatsu Jet Spray for Creeping Bugs were released tothe market in March 2007 based on the revolutionary idea of a bug spray product that contains no insecticides
and utilizes a spray of minus 40 degrees to freeze and kill insects. Despite receiving favorable reviews, several
cases of combustion occurred involving this product.
In order to ensure that this product was used safely, product flammability and high temperature exposure
warnings were displayed in accordance with the High Pressure Gas Safety Law for aerosol products. In addition,actions implemented to handle this situation included attaching warning seals directly to products, as well as
announcing warnings via television, newspapers and the Lion website. However, due to the extreme difficulty
related to eliminating these accidents, a voluntary recall of Varsan Hyosatsu Jet Spray products was initiatedon August 27, 2007. Placing the highest priority on customer safety, Lion viewed this action as the best way toprevent further incidents.
As of the end of March 2008, recall notifications were issued three times and 1,460,000 spray cans have beenreturned (45.1% return rate), with five major accidents and 27 minor incidents reported to the government.

6

CSR
and Lion
ライオンのCSR

Lion Conducts CSR Activities andValues Its Dialogues with Stakeholders
Lion’s fundamental concept of CSR activities is to fulfill its social responsibilities through its corporate activities.
Lion will improve its CSR activities in accordance with social changes, while respecting dialogues with stakeholders.

Lion’s Approach to CSR

effective supervision, and securing compliance. It is ourstrong belief that reinforcing and improving the corporate
governance system will bring to fruition an increase incorporate value.

Guided by its company motto and management
philosophy, Lion has worked diligently since its inception

Corporate Governance Systemin every facet of its business activities to become atrusted member of society. The concept behind CSR—
corporate social responsibility—comes naturally for Lion
Corporation, and its CSR policies closely follow changes
that occur in society.
In January 2003, we announced our ComplianceDeclaration and formulated the Lion-Group Charter for
Corporate Behavior. Built on 10 principles, this Charter
enables us to maintain a positive influence on society.
With the aim of clarifying the Company’s responsibilities tostakeholders and further strengthening its CSR activities,
Lion established the CSR Promotion Department in March
2005. In its new VIP II 09 medium-term management plan
launched in 2005, Lion positions proactive CSR activities
as an essential factor in achieving the Company’s ultimate
goal of increasing corporate value. Initiatives included
in VIP II 09 call for the establishment of in-house CSR
promotion systems and structures, vigorous environmental
activities and continued contribution to the local culture
and community.
In January 2008, to reflect changes in society, the LionGroup Charter for Corporate Behavior* was revised, andin the Behavior Guidelines, company attitudes towards avariety of activities including the provision of reliable andsafe products and services, and environmental issues
were further clarified.
* HP: Lion-Group Charter for Corporate Behavior
http://www.lion.co.jp/en/company/html/com0201f.htm

Corporate GovernanceFundamental Approach
Lion places the highest priority on enhancing managementtransparency, ensuring prompt decision-making and

7

Lion has adopted an audit system to ensure adequate
management supervision. Lion has adopted an audit
system to ensure adequate management supervision.
In March 2004, the Company introduced an executive
officer system, separating the executive and supervisory
functions. Under the new system, the Board of Directors
is responsible for decision-making and management
supervision, while the Executive Committee is responsible
for job execution. In order to revitalize the Board of
Directors and to enhance energy and agility, the number of
directors was reduced from 19 to 11. Along with this, Lion
implemented other measures in March 2006 that include
the appointment of two external directors and a reductionof the director’s term of office. Lion has appointed two
standing auditors and two external corporate auditors.
Furthermore, Lion established the Management Evaluation
Committee in October 2003 as a means of securing andincorporating the opinions and advice of outside experts.
Following ratification at the annual general meetingof shareholders held on March 30, 2006, Lion adopted a
proposal concerning the issue of subscription rights for the
purpose of introducing a trust-type rights plan. This proposal
has been introduced as a restraining measure against
attempts to acquire or purchase more than 20% of Lion’s
stock without the prior consent of the Board of Directors.
In addition, Lion established the Compensation Advisory
Committee, which is comprised of external directors andexternal corporate auditors, in December 2006 for the
purpose of enhancing objectivity and clarity in mattersconcerning executive compensation.

■ CSR Promotion Systems

ReportSenior Executive
Committee
Main corporate
strategy, such as basic
policies of mediumand long-term
management plans

Suggestions

Opinions and advice on legal
compliance and management policy

Audit Corporate Auditors Oversight（Compliance Audit）（Job audit）

Board of Directors（Management supervision）● Decisions on executing key business issues● Supervision of directors’ management functions● Supervision of executive officers

ReportReport on executive
compensation

Mandate

Audit

Executive Committee（Job Execution）
CSR measures

Opinion andadvice on legal
compliance

Report

Audit
Report

CSR measures（Functional divisions, Products division, Committees）
Raising customer satisfaction, Building a relationship oftrust with shareholders and investors, Developing a fair andcongenial working environment, Securing fair trading, Social
contribution activities, Group-wide environmental protection,
Developing environment-friendly products, Personal
information protection

Audit

Independent Accounting auditors

Compensation Advisory
Committee

Management Evaluation
Committee

Shareholders’ Meeting

Auditing Office（Internal Audit）（Audits of legality, fairness
and efficiency,Audits ofprogress on compliance）

Legal compliance, Spreading andmaintaining ethics awarenessCorporate Ethics Committee
Lion-Group Charter for Corporate Behavior, Behavioral Guidelines

Development of Internal Control System
In accordance with the Corporation Law and the Enforcement
Regulations of the Corporation Law, Lion improved the following
systems in order to secure appropriateness in the Group’sbusiness activities.
1. A structure to ensure that the executive duties of directors
and employees comply with legal requirements and theCompany’s Articles of Incorporation
2. Management structure relating to information maintenanceand storage of matters concerning the execution of directors’ duties
3. Rules and other structures for managing the risk of loss
4. A structure to ensure that directors’ duties are executed
efficiently
5. A structure to secure maximum efficacy as a corporate group
6. Matters relating to employees and the independence of
employees from directors in support of corporate auditors in
the case that auditors request such employees
7. A structure for reporting to corporate auditors by directors
and employees and other matters relating to reporting
procedures to corporate auditors
8. A structure to ensure effective auditing by corporate auditors

The Internal Control System Regarding
the Financial Results Report
Lion Corporation will apply evaluating and auditing systems
within the internal control system related to the financial results
report, based on the Financial Instruments and Exchange Act,at the beginning of the financial year in January 2009. With the
purpose of this system being to ensure the reliability of theconsolidated base of financial results reports, Lion formulated
a special task force team in July 2006, under the president’s
direction, to further controls on a company-wide level within the
Lion Corporation and the Lion Group, as well as job-processlevel controls for operational maintenance. In addition, aninternal control managing director position within the Auditing
Office was established in January 2008 as an evaluation bodyunder the direct control of the president. Upon completion of its
preliminary assessment in 2008, the Company will initiate theoperations of this new system in January 2009.

8

Customers
and Lion
お客様とライオン

Providing Products that Are
Worry-free and Bring Fresh
Excitement to Customers
Lion strives to provide products that instillcustomers with a feeling of reliability, assurance
and satisfaction during purchase and use,
and will become preferred products over thelong term. In March 2008, the spirit of the Lioncompany motto and management philosophy
was clearly expressed as a quality policy.

Quality Policy
The mission of Lion Corporation is to provide superior products and services that are useful in daily life,
while achieving customer satisfaction and trust. Ceaselessly implementing quality assurance activities,
the Company is striving to increase customer satisfaction.
1.The importance of customer communication

4.Compliance with Laws and Regulations

The serious consideration given to customer
comments is reflected in Lion’s products and services.
Along with gathering information related toquality, Lion provides information that is accurate
and easy to understand.

Complying with related laws and internal
company regulations, Lion is improving its quality
assurance activities.

2.Lion thoroughly pursues safety and functionality
in all of its products
Thoroughly pursuing safety features, Lion is actively
engaged in improving product capabilities.

5.Providing products and services that are full offresh surprises
By ceaselessly engaging in the creation of
attractive products, Lion is working to increasecustomer satisfaction.

3.Considering the Global Environment
Reducing the burden of products and services on
the global environment, Lion is aiming to create asustainable society.
March 28, 2008

Establishment of the Quality Assurance Office
Lion Corporation emphasizes safety as the most important aspectof quality. In the wake of the Hyosatsu Jet combustion incidents
that occurred in 2007, while the Product Development Department
conducts product quality evaluations, it is important to note that
the Quality Assurance Office, which was established in January
2008, provides support, guidance and advice especially related
to evaluating whether products are safe when used in a variety ofways. Lion is aiming to further bolster safety during product use
by developing a system that, in contrast to the standpoint of the
Product Development Department, evaluates actual usage from thecustomer’s perspective and anticipates product usages that areincorrect or even abnormal.

9

Meeting to investigate product safety held at Lion’s test kitchen

Under the quality policy, formulated on Lion Corporation’s
product management system—based on IS0 9001 (JISQ

Quality Assurance Process9001)—Lion products are managed by a process that clarifies
assurance items and responsible departments.

Planning Stage

Development Stage

Manufacturing Stage

Marketing Stage

Market analysis and otherfactors allow Lion to gain aprecise grasp of customer
needs and wants, leading
to new product concept
proposals. In order to realize
these, the Company sets
quality targets for the designand development of specificproducts. Simultaneously,
product proposals arescreened in a series ofmeetings, taking all possible
angles into account, andupon approval are moved tothe development stage.

The Research and Development
Division reconciles quality
targets that reflect customer
needs with technologicalcharacteristics, establishes
design quality, and develops
the products. Products areevaluated by each responsible
department in accordancewith product design quality
according to the “sevenfundamental items” and fromthe perspective of the customer
to determine if these will
provide customer satisfaction.

In order to ensure that
products are manufactured
with uniform product design
quality that is consistently
maintained in a factory
environment, the Production
Division initiates manufacturing
processes that are overseen
diligently at factories. Lion has
implemented regular GMP(Good Manufacturing Practices)surveys, while bolstering quality
management systems at plantsthat produce pharmaceuticalproducts (drugs, quasi-drugs
and cosmetics). In addition, theProduction Division records lot
numbers for each product thatgive the date and location of
manufacture in order for Lion toensure traceability.

Product freshness isthoroughly managed by
setting each product’s
shipment date in order tomake it easier for customers
to use products prior to thebest-before date. We monitor
a product’s sales status andreflect customer opinions
sincerely in terms of further
product improvement anddevelopment. In addition, theCustomer Service Division
prepares a system to respondto unexpected trouble.

1. Safety
2. Good performance and functionality
3. Ease of use
4. Design appearance
5. Environmental suitability
6. Stability
7. Compliance with legal and internal
company standards■ Internal Company System for Responding to Customer Inquiries

Responding to Customer comments
Lion receives a wide variety of opinions, inquiries and complaints
from customers who use its products.
Lion directly receives most of such customer inquiries at its
Consumer Service Office, but the Company sometimes receives
inquiries through retail stores and regional offices.
In the event that a quick response by responsible personnel at
the Consumer Service Office is not possible, an investigation todetermine causes as well as countermeasures is undertaken by
the Quality Assurance Office in cooperation with the Researchand Development Division, Production Division and the Product
Planning Division. Following this, a report is sent to the customer.
In some cases, Lion employees visit the customer’s home toinquire about product problems and determine solutions.
In cases where the causes of product problems andcomplaints are difficult to determine or cannot be solved
quickly, these matters are examined by promotion committees
company-wide (CS/PL Committees), which relate tocustomer satisfaction and product liability. Following this,countermeasures are implemented until all problems andcomplaints are eliminated.

Reflecting Each Customer’s Voice in Product Development
Based on customer needs, which are determined by customer
opinions and marketing surveys, improvements to existingproducts and new product development are undertaken. In
order to enhance new product development, Lion also makes
use of family observations conducted by the Behavioral
Science Research Institute, facilitating an understanding ofneeds that customers themselves are unaware of.

Customers (opinions, complaints, inquiries)
Retail Outlets

Lion Corporation Offices

Consumer Service Office
Quality Assurance Office

Research andDevelopment Division

Production
Division

Investigation of Causes
and Countermeasures
Product Planning
Division

CS/PL Committees, (eliminating problems and complaints)

Promoting Barrier-Free Measures
Providing Product and Information for Daily Lifeto the Visually Impaired
To facilitate the reliable use of products by the visually
impaired, the Lion Product Catalog is published in braille,
SP code and large type print twice a year, and the “Lion
Products and Lifestyle Information Oto (Audio) Mail,” ane-mail magazine that contains information useful for daily
life, is issued four times a year, and is compatible withscreen-reading software for the visually impaired. The
catalog and magazine are distributed free of charge to allinterested parties.

10

Employees
and LION
社員とライオン

To Maintain a Comfortable
Workplace Where Employees
Can Work Cheerfully
Respecting each employee’s characteristics andmotivation, Lion wishes to grow with employees.
Based on its fair compensation system for employees,
Lion continues to promote an optimal workplaceenvironment for all employees, while fostering humanresource development and a health support programfor both mind and body.

Ensuring a Comfortable Workplace
Balance between Work and Private Life
Lion values the balance between work and the private life of
employees and improves workplace comfortability to bringtangible results. Given the declining birthrate in an aging
society, nurturing the next generation is a pressing issue.
Having implemented its own action plan in compliancewith the Next Generation Education and Support
Promotion Act in 2005, Lion was certified as a “company
that proactively engages in striking the balance between
work and childcare” in April 2007, which allows theCompany to utilize the “Kurumin” next generation
certification mark in its corporate activities.
At present, 100% of Lion’s eligible
female employees and five male employees
have acquired maternity leave.

Next generation certification markRetired Worker Reemployment System
In April 2006, Lion introduced two types of Retired Worker
Reemployment Systems: In the “standard type,” retired
employees can choose the most suitable job from among
a list of jobs offered by Lion; and in the “highly specialized
type,” Lion appoints certain retired employees who haveindispensible knowledge and expertise for the position. In
the two years since the establishment of the system, 60%of retired employees have used this system.

Providing a Workplace Environment that is
Comfortable for All
Aiming to develop an appropriate work environment andefficient workflow, Lion monitors the employee’s working
hours on an objective basis (time card). In addition, Lion has
established “zero overtime day” once a week by businesssite, encouraging employees to leave the office early to
reduce working hours and energy consumption.
For office staff and R&D workers, Lion adopted aflextime system to allow employees to have a flexible andefficient work style.

■ Lion’s Childcare Leave and Holiday Accumulation System

Maternity leave

The eligible employee can acquire up to 18 months ofleave until the child becomes three years old
The first two weeks of leave will be regarded as
paid holidays
The eligible employee can acquire leave even if theemployee’s spouse serves as a full-time housekeeper■ Employee-related Data (Lion)

Regular employee
New employee *1
Retired employees
reemployed

The eligible employee can acquire the option until the
Shortened
employee’s child enters school
working hours due
The eligible employee can shorten working hours by
to childcare

FemaleMale
Femalepercentage
personPercentage of females

up to two hours per day

11

Male

Female managementlevel staff

percentage
personLeave to nurse
sick children

The eligible employee can acquire leave up to
five days per year
The leave will be regarded as paid holidays

percentage
Employment rate forhandicapped employees
personHoliday
Accumulation
SystemThe eligible employee can accumulate annual paid
holidays of up to 60 days
The accumulated holidays can be used for eligible
employees’ health care and/or care for elderlyfamily members

Average amount of overtime per month (hours)
Percentage of paid leave taken

percentage
Turnover rate up to
three years after hiring*2
person

*1
*2

2005
2,002
500
125
22
－
－
20.0
2.9
21
1.4
34
8.0
2
9.4
42.3

Including “new employees” hired mid-year
Revised investigation results and figures

2006
1,985
509
90
32
0.6
15
20.4
3.3
23
1.6
39
2.9
1
8.3
41.8

2007
1,965
531
133
35
2.0
51
21.3
4.3
30
1.8
45
7.9
3
9.2
40.3

Employees and LION

Spirit of Tenacity and Creativity—Human
Resource Development
Lion provides diverse opportunities for employees todevelop their abilities. Taking qualifications and age

Responding to Specific Health Checkups
and Specific Healthcare Advice

into consideration, they provide training at each level of
employment, career development training, and specialized

Regarding the measures for specific health checkups

education. Lion also provides a variety of training

for individuals 40 years old or over and the provision ofprograms, especially for motivated employees. These

specific healthcare advice that was enacted into law inadditional programs include elective training and support

fiscal 2008, internal health nurses well acquainted with thefor self-development.

Company’s occupational circumstances provide specifichealthcare advice to insured employees as well as striving
to reduce the number of metabolic syndrome cases
among these individuals. Lion’s own health insurance

Employee Health Management

association, Lion Blue Cross, is also responding to the

Employee Health is an Asset to Lionneeds of employee dependants by bolstering the current
system of family health exams.

Considering that employee health is the most important
asset both for the individual and the Company, Lion isconducting activities based on the Fundamental HealthTaking Action for Mental HealthManagement Policy. Activities that promote an increase

Given that mental health is an important issue both inin the number of employees who can manage theirterms of a corporate organization’s vitality and its risk-

own health as well as activities that build a comfortable

management strategies, Lion is making every effort

workplace are key pillars of this policy. In addition to suchto identify and prevent emotional problems among its

measures as all employees participating in interviews

employees. In fiscal 2007, not only did Lion continue

following the results of health exams, Lion is developing

to implement its internal industrial and mental healthfinely tuned health management activities in consultation

consultation system, the Company also contracted clinicalwith industrial healthcare professionals.

psychotherapists to provide counseling to employeesinternally and counseling organizations to provide these

Health Assessment＞＞＞＞
Improving Work Life Quality＞＞

telephone and in person.

Evaluating Harmful Factors in
the Workplace＞＞

Eliminating Harmful
Factors＞＞

Health Level Maintenance/
Improvement

and their families to readily obtain counseling over the

＞＞

＞＞ ＞＞

Healthy LifestyleCreating a Supportive
Environment

services externally, making it possible for employees

Formulating a Comfortable
Workplace Environment

Building a Healthy Company＞＞

Health Self-Management

Industrial Health (Labor Health Management
and Industrial Hygiene) Service■ Outlining the Aim of Lion’s Fundamental Health Management Policy*1 The ratio of employees who underwent annual health examinations in 2007: 100%
*2 The ratio of post-examination interviews conducted and health guidance provided in 2006: 99.0%

12

Business
Partners and Lion
取引先とライオン

Promotion of CSR
Procurement together
with Business Partners
Sharing the common goal of enhancing customer
satisfaction, Lion has established close-knit,
cooperative relationships with business partners. At
the same time, the Company considers environmental
and social issues as it strives to establish CSR
procurement that stresses sustainability.

Promoting Cooperative Relationships with
Business Partners
Advancing CSR Procurement
For its raw material procurement and product purchasing, Lionis preparing supply chain management systems that reflect
environmental and social concerns. During 2008, Lion will
publish and release to the public its CSR-Based Procurement
Principles, a revision to the Company’s current Purchasing
Activity Principles, which is an effort to consider social issues
while carrying out procurement activities.
Furthermore, in order to fully grasp the status of supplier
CSR, Lion is currently conducting a survey of suppliers with aquestionnaire prepared using the Ten Principles of the Global
Compact* as a reference.

Working Together with Wholesalers andRetailers—Creating Sales Venues that
Provide Customer Satisfaction
Encompassing the principle of “co-existence and coprosperity,”
Lion’s logistics policy is founded on close ties with wholesalers.
Regarding the marketing of consumer products, the Company
has established an organized structure to promote better
communications. One feature of this structure is “Lion-kai,” aseries of meetings to boost communication with wholesalers. In
these meetings, Lion provides an explanation of its management
strategies and sales and marketing strategies, while at thesame time clarifying roles and responsibilities through vigorous
exchanges of opinion. In this way, Lion works in unison withwholesalers to improve customer satisfaction.

“Lion-kai”

For our partners in the logistics industry, Lion holds theSpring New Product Presentation during which the Company
introduces its new health care and household products.
Conducting a variety of experiments, Lion researchers provide

13

easy-to-understand explanations of product features, whilesuggestions related to marketing methods and the creation of
product display areas are offered by the Product Division.
Supported by a mutual understanding nurtured between
wholesalers, retailers and Lion, store coordinators from Lion
Field Marketing Co., Ltd. and Leo Field Promotions Co., Ltd.
regularly visit about 7,000 retail outlets for home products
and 3,600 for pharmaceutical products. The coordinators
collect information concerning customer needs and distributor
requirements. At the same time, they work to create fresh,
attractive product display areas at retail outlets, ensuring aquality that satisfies customers.

Moving toward Product Development thatHas the Highest Customer Satisfaction
Through its regular business activities, Lion undertakes
exchanges of information with suppliers that deepen thesetrusting relationships. Along with this, Lion is making every effort
to gain a precise understanding of the latest trends concerning
raw materials.
In particular, given that the joint development, stable supply
and quality assurance management of new materials and raw
materials with new functions are very important for making
products that satisfy customers, cooperative ties between the
Company and suppliers are indispensible.
Lion has also established standards from the perspective ofsafety, environmental suitability and quality that are applied to its
purchases of raw materials, building a relationship that provides
customers with safe products of unquestionable quality.

Working Together with Competitors“Competing at the point of sales, while
distributing in cooperation”
Together with a competing manufacturer, Lion established Planet
Logistics Co., Ltd. in 1998, and conducts joint shipments towholesalers. The idea behind joint shipments is “to compete
at the point of sales, while distributing in cooperation.” Each
manufacturer competes fairly at the store level, while leveraging
the advantages of joint distribution. These advantages include: (1)a reduction in logistics costs; (2) enhanced logistics quality; and (3)more appropriate measures to address environmental issues.
Set schedules, set volumes, bulk shipping, systemization andstandardization related to joint distribution are directly connected
to operational improvement and efficiency for businesses that
Lion delivers to (please refer to p. 23 for more details).

*The Ten Principles of the Global Compact
These principles were espoused by the Secretary-General of the United Nations, Kofi Annan, at the World Economic Forum held in January 1991, andthey were formally inaugurated at the UN Headquarters in July 2000.
For more details, please visit the following website: http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html

Society and Lion

Lion Is Undertaking a Wide Range ofSocial Contribution Activities,
Reflecting the Unique Characteristics ofEach of Its Businesses
Utilizing technology and human resources cultivated through its businessactivities, Lion is contributing to society primarily in the area of oral hygiene,
as well as through the maintenance of forests and aquatic environments.
In addition, accompanying these efforts to carry out its business activities
in harmony with the community, Lion respects the volunteer spirit of
employees and supports their contribution to socially beneficial activities.

Forest Trimming Activities in “Lion Forest in Yamanashi”

Nature Conservation Activities
Given that Lion’s business operations are characterized by awide variety of products being used and discharged into theenvironment with water, the Company has been bolstering its
social contribution activities in relation to aquatic environments
and forest maintenance since 2006. Lion is also continuing
to support efforts to protect such endangered species as the
Odawara killifish and little terns.

Support for the Japan Water Award
In 2006, Lion commenced support activities for the Japan
Water Award and the Japan Stockholm Junior Water Prize andis cooperating to invigorate activities that preserve aquatic
environments. The Japan Water Award was establishedin 1998 for the purpose of supporting efforts to recoverhealthy water circulating systems. This award welcomed His
Imperial Highness Prince Akishino as its honorary president
in 2005, and he provides words of encouragement to award
winners every year. At the same time, the Japan Stockholm
Junior Water Prize was established in 2002 and commends
outstanding research activities conducted by students under
the age of 20. Prizewinners become candidates to represent
Japan at the Stockholm Junior Water Prize (SJWP) held every
summer in Sweden.

2007 Japan Water Award ceremony (June 1, 2007)

Forests have various functions such as absorbing CO2,
producing clean water and preventing floods. Within the 6%
reduction in greenhouse gases target that Japan committed
itself to in the Kyoto Protocol, 3.8% of this reduction is
accounted for by absorption in forests. However, today’s forests
in Japan are not well maintained due to weak timber prices.
Given this situation, Lion set up “Lion Forest in Yamanashi”
in 2006 for the purpose of promoting CO2 absorption andinvigorating “sustainable forest management” through theutilization of paper made from lumber from forest trimming andthinning activities. This activity became the first undertakingof the “Company Forest Promotion Project” conducted by
Yamanashi Prefecture, and Lion supports the forest trimmingof Yamanashi City’s communal forest (approximately 65
hectares) and costs for transporting thinned wood to awood chip plant. Through the 3.9 paper system, thinned
wood is utilized for the paper in such documents as CSR
reports, company brochures, product catalogs and annual
reports, and this contributes to the promotion of thinnedwood use. In addition, Lion employees have been taking fulladvantage of the Volunteer Special Leave System in orderto carry out voluntary forest maintenance activities since theestablishment of “Lion Forest in Yamanashi,” which includes
participating in tree- planting activities for the first time in April
2008. Obtaining cooperation from nearby Yawata Elementary
school, 26 fifth-grade elementary students participated in
Lion’s tree-planting activities on the second scheduled day ofthis program.
The Company will continue this activity with volunteer
workers every year.

Employee volunteers engaged in forest preservation activities (April 11, 2008)14

Societyand Lion
社会とライオン

Establishment of the “Japan Clean Water Foundation”
On April 1, 2008, Lion Corporation launched the“Japan Clean Water Foundation” in partnershipwith the Japan River Association (JRA) as a project
to further the Company’s aquatic environmental
protection activities. A portion of proceeds from thesale of TOP laundry detergent, from April 1, 2008
to June 30, 2008, will be donated to the “Japan
Clean Water Foundation,” which provides monetary
support for activities that protect rivers, lakes andwaterfronts nationwide. In addition, Lion acceptedsubmissions from children up to the sixth gradeof elementary school for the “Waterfront Painting
Contest,” based on themes related to clean rivers,
lakes and other bodies of water.

Waterfront Painting Contest
posterJapan Clean Water Foundation
symbolSupport for Academic and Educational
Activities

Educational support
activity at the
Edogawa-ku Science
Education Center(July 14, 2007)

The Lion Award
To support the activities of academic associations in
the field of preventive dentistry and the development ofyoung researchers, we instituted the Lion Award in 2001.
Researchers are selected each year from the International
Association for Dental Research (IADR), the JapaneseSociety of Pediatric Dentistry, the Japanese Association
for Oral Biology, the Japanese Society for Dental Healthand the Japanese Society of Periodontology, and they
are researchers who are recognized for their innovative
research and achievements. The awards are in the formof a plaque and cash prize. In the seven years since theawards were inaugurated in 2001, a total of 66 researchers
have been recognized.

Support for Science Education

Factory Tours for the Public
To better familiarize the public with Lion’s products anddemonstrate the Company’s emphasis on safety andenvironmental protection, Lion held 309 factory tours
during 2007, welcoming a total of 8,030 visitors.
■ Details of factory tours in 2007

Edogawa-ku in Tokyo has a science education project toteach children about scientific phenomenon happeningaround us and its fascinating aspects. To that end, as acompany that has research laboratories in Edogawa-ku, Lion
participates in this project every year. In 2007, educational

Number of tours
Number of tour
participants

Chiba

OdawaraOsaka

Akashi

Total

95

114

34

66

309

1,977

3,142

1,016

1,895

8,030

support activities were held on July 7 and 14, with 24 Lion

Students from local schools visit to gather
acorns. In addition to factory tours, avariety of different types of observation
tours are provided(Odawara Plant, September 28, 2007)

researchers participating. Children watched closely as thepower of detergent cleaned dirt from garments, and they
let out a cheer after touching the frozen bubbles. Observing
the scientific background of detergent at work, a process
so common in daily life, the children seemed to become
interested in science. Every year even more interesting ideas
for experiments are being considered.

Factory tour by neighborhood residents(Chiba Plant, November 17, 2007)15

As members of the local community, Lion is directing its

Lion’s Activities around Its Sites

energies into such activities as local beautification and cleanup,

Inviting children to the Sumida River
Fireworks Festival

Summer extracurricular seminar for elementary
school students

nature conservation, and education and development programs.

Hand washing and toothbrushing exercise(July 28, 2007)(August 26, 2007)

Lion has invited children fromorphanages to the rooftop of its head
office for the Sumida River Fireworks
Festival in Tokyo every year since 1999.
In 2007, 33 employees participated involunteer activities, inviting 70 children.

Since 2006, Lion has been implementing asummer extracurricular seminar once a year
for fourth-, fifth- and sixth-grade students andtheir guardians living in Sumida-ku, Tokyoand attending local area elementary schools.
The purpose is for students to have fun whilelearning proper hand washing and toothbrushingmethods. In 2007 as well, this seminar took place
under the instruction of Lion researchers anddental hygienists from the Lion Foundation for Dental Health.

The Scientific Approach to Understanding the Relationship between Oraland Physical HealthResearch Activities of the Lion Foundation for Dental Health (LDH)
Lion established the Lion Foundation for Dental Health (LDH) in 1964 to foster research and promotion activities related to oral health. LDH has
been engaged in improvement activities for oral health tailored to each life stage by conducting dental health training programs for parents andchildren at kindergartens, schools, industrial centers, retirement centers and communities, in addition to conducting oral health examinations,research and information dissemination.
Regarding the important role our mouths play in daily living, through activities such as eating, talking and laughing, the current aim of LDH is toincrease people’s awareness of proper oral care, and to develop the concept of “a beautiful, healthy mouth makes for a vigorous mind and body!”

Keeping current with the times, LDH regularly engages in oral care promotion, educational activities and examinations.
Achievements in 2007

1

2

Dental Health Activities for Parents
and Children

Number of schools and kindergartens that had
programs: 628, 764 times
Number of participants: 65,300

Events held: 32 times
Patients seen: 1,215 children and 791 parents

3

Mass Tooth Brushing Exercise for
School Children

4

Industrial Dental Health Activities

6

Dental Care Activities

Number of participating elementary school
students: 1,150
Number of participating dental hygienist school
students: 1,750

5Visiting Schools and Kindergartens
for Training Programs

Dental Health Activities for the Elderly
Events held: 31 times
Number of patients: 882

Number of businesses visited: 226, 422 times
Number of patients: 27,511

Number of patients: 12,212

Community Service Activities at Overseas Affiliates

Lion’s overseas affiliates also engage in a variety of community service activities based in each region where they operate.

Lion Corporation (Thailand) Ltd.

Through the cooperation of four organizations, of which Lion Corporation (Thailand) Ltd. is included, financial
support is being provided to the “Beloved Child starts from the first teeth” Project, a project dedicated toteaching children about dental care. In addition, Lion Corporation (Thailand) Ltd. made donations to protect
buffalo and other endangered species.
“Beloved Child starts from the first teeth” ProjectSouthern Lion Sdn. Bhd. (Malaysia)

At Southern Lion, the Lion Dental Hygiene Center (LDHC) is continuing to convey to children how important teeth
are as well as proper brushing methods, and it carries out visits to kindergartens, elementary schools and shopping
malls. Moreover, this affiliated company is providing a wide variety oral care and other necessary products to victimsof the flood that occurred in Johor Bahru—located at the southern tip of the Malay Peninsula—through The Red
Crescent Society.
Educational programs conducted at elementary schools by the LDHC

16

The Environment and Lion
環境とライオン
The
Environment andMANAGEMENT
Lion
ENVIRONMENTAL

Aiming to Become a Leading
Company in Environmental
FriendlinessAs a company that provides products used in consumers’ everyday lives, Lionconsiders environmental activities as its fundamental management issue.
Aiming to become a leading company in environmental friendliness, Lion is
promoting “ECO LION” activities, which are environmental protection activities
carried out companywide.

ENVIRONMENTAL GUIDELINES
Lion is to act voluntarily and proactively to reduce the environmental
burden of its corporate activities—from research and development
to raw materials procurement, manufacturing, logistics, sales andmarketing, household use, and disposal—on the global environment,with due consideration to global warming prevention, effective
use and recycling of natural resources and contribution to theimprovement of people’s health and the natural ecosystem.
(1) Aiming for a Sustainable Society
Establish an environmental management system, and throughongoing maintenance and improvement of that system, protect
the global environment.
(2) Complying with Legal and Other RequirementsComply with the system of legislation, regulations and arrangements
pertaining to environmental protection and establish and implement
voluntary standards of conduct.
(3) Setting and Verifying Implementation ofEnvironmental Objectives and Targets
Correctly understand the environmental impact of corporate activity,
and as far as technically and economically possible, establish
objectives and targets for improvement, while at the same time
formulating, implementing and regularly verifying the status of
implementation of an environmental management program.

(4) Developing Environment-Friendly Products
Continue aggressively with product development in accordancewith Lion’s own “Three Principles of Environmentally Responsible
Composition Development” and the “3Rs of Container andPackaging Reduction.”(5) Advancing Green Supply Chain Management
Construct a green supply chain with raw material suppliers, OEM
partners and retail outlets and strive for environmental burden
reduction throughout entire product lifecycles, from procurement
to sale to customers.
(6) Enhancing Environmental Protection Activities Based on
Uniform Understanding of the Guidelines within the Lion GroupDisseminate the Guidelines to all Lion employees, including
those of its affiliated companies, raise an awareness ofenvironmental protection among them and bolster environmental
management activities throughout the entire Lion Group.
(7) Promoting Disclosure of Information
Seek to maintain and promote communication with stakeholders
involved in Lion’s businesses.
These Environmental Guidelines are freely available to anyone
upon request.
Revised April 3, 2006

Environmental Management System

Using the Environmental Guidelines as its reference point, in order to build a cooperative structure for all employees to tackle
environmental issues within the promotion of “ECO LION” activities, Lion maintains an environmental management structure
and operates an environmental management system. These measures help to improve environmental protection activities.

Environmental Guidelines
Lion has formulated its Environmental Guidelines in conformity
to the spirit that underlies the Lion-Group Charter for Corporate
Behavior (see http://www.lion.co.jp/en/company/html/com0201f.htm),
which states: “We shall play a positive and active role in creatinga ‘Sustainable Society,’ harmonizing economic development andenvironmental protection.”
In April 2006, Lion revised its Environmental Guidelines (seeabove) to include aggressive development of environmentallyfriendly products as well as reduction of environmental burdens
in the entire supply chain.

Environmental Management Structure
As part of efforts to build a cooperative structure within
the Lion Group for tackling environmental issues, Lion has
established the Environmental Action Promotion Committee,
which involves the production division, administrative andmarketing divisions, research & development division andheadquarters staff divisions.

17

Constantly examining the status of its business activities froman environmental protection perspective, we are endeavoring tosecure legal compliance and set up and clear voluntary standards
and targets for the entire Lion Group, as well as to grasp precisely
the current condition of implementation progress.

Utilizing the Environmental Management System
The environmental management system allows us to measure,evaluate, and reduce the environmental impact of our businessactivities, products, and services. Lion also aims to establish agood environmental record through continuous improvement.
With the Environmental Guidelines as its reference point, theCompany strives for continuous improvement using the Plan, Do,
Check, Action (PDCA) concept.

Status of ISO 14001* Certifications
Lion received en bloc ISO 14001 certification of all its factories
in July 2001. In May of 2004 and 2007 respectively, the Japan
Management Association Quality Assurance Registration Center(JMAQA) conducted renewal examinations, and Lion currently
maintains this certification.

* ISO 14001:An international standard for certification of a company’s voluntary environmental management system. Awarded following inspection by
independent third parties, this certification demonstrates that a company’s environmental management level is up to international standards

Lion’s Environmental Maintenance Goals andAchievements in 2007 and Establishment of CO2
Emission Reduction Targets for 2020
Lion has attained its goals in each area for the initial year of the Lion Group’s Three-Year Medium-Term
Environmental Plan, which began in 2007.
In addition, Lion has set targets for reducing CO2 emissions by 2020 as a post-Kyoto Protocol goal and iscurrently implementing this plan.
In coordination with the VIP II 09 medium-term management plan,
Lion established the Three-Year Medium-Term Environmental
Plan for the entire Lion Group in 2007 with a new orientation
based on social trends relating to global environmental issues aswell as the Company’s achievements to this point.

In 2007, various measures were initiated for each aspect of
this three-year plan during the first year, and achievements are
steadily being made. Hereafter, Lion will address such issues
as promoting the attainment of zero emissions for affiliatedcompanies and the utilization of plant-based ingredients.

Environmental Goals for 2007 to 2009 and Achievements in 2007
Item◎：Attained

Goal
2007

2008

Reduce CO2 emissions to 93% or Under 86%
less compared to（Over 14%the 1990 level
reduction）（Over 7% reduction）○：Almost attained

×：Unattained

Results
2009

Related page

Achievement (Results for 2007) Principal measures (Results for 2007)◎(86% compared to
the 1990 level )Switching to liquefied natural gas (LNG)
fuel, and installation and upgrading ofenergy conservation devices

P.22

Energy use per unit of specific
99% or less
99% or less compared to
productivity in the Logistics Divisioncompared to thethe 2008 levelto 99% or less compared to the 2006
2007 level
level◎(97% compared to
the 2006 level )Promotion of modal shift
Promotion of shifting to largersized vehicles

P.23

Chemical
substance
management

Volatile organic compound (VOC)
emissions to 67% or less compared Under 60%
to the 2000 level

Under 60%◎
(54% compared to
the 2000 level )Introduction of VOC recovery
equipment and improved productcomposition to reduce VOC emissions

P.29

Under 60%◎
(58% compared to the 1990 level )Waste control

Reduce total waste generation
to 64% or less compared to the Under 56%
1990 level
Reduce final waste landfill
volume to 13% or less
Under 11%compared to the 1990 level

Promoting the maximization of resource
usage and the reuse and recycling ofcleaning water used in production processes

Under 10%◎(13% compared to the 1990 level )Promotion of recycling programs

Over 150,000-ton reduction
from the 1990 level of productoriented CO2 emissions

The increased amount of fossil〈No 2007 target〉
materials used as a result of a rise
(100,000-ton reduction compared to in sales in one product segment
prevented any progress in promoting
the 1990 level )the use of plant-based ingredients

The amount of plastic containers
and packaging materials used perunit of specific productivity in eighthome product segments fell 70%
compared with the 1995 level〈No 2007 target〉(70% compared to the 1995 level )CO2 emissions
reduction

Environmental carethroughcompany products

Under 90%
（Over 10% reduction）

P.24

P.24

P.22

Owing to designs that are innovativeand compact, the amount ofcontainers and packaging materials
used is reduced and the use of refill
products is expanded

P.27-28

Establishing post-Kyoto Protocol goals, by 2020 Lion aims to achieve:
Reductions in the amount of CO emissions derived from energy use to 40%
In 2020 Reductionsin the amount of CO emissions derived from products to 88%

Total reductions of CO2 emissions% of 1990 levelsby22

Recently, debates have intensified worldwide as weface the post-Kyoto Protocol era from 2013 onward.
For example, in May 2007, the Japanese government
proposed reducing world greenhouse gas emissions byhalf of current levels by 2050. In this context, the LionGroup has renewed its post- Kyoto Protocol CO2 emission
reduction targets (absolute amount). Exceeding the lofty
targets proposed by Japan government, Lion is striving tosteadily achieve these goals, while integrating them into
future business plans.

67■ Predicted Achievement of Post-Kyoto Protocol Goals
CO2 (tons)
Product-derived CO2 (from petroleum-derived surfactants)
350,000
Energy-derived CO2
100％300,000
250,000
200,000

73％
100
50

150,000

67％

63％

48

46

100,000
50,000
0

100

1990

106

2003

67%
Reduction

46％
15

93

86

90

2005

2007

2009(Goal)

33％
12
60

2020(Goal)

18

The Environment and Lion
環境とライオン
ENVIRONMENTAL MANAGEMENTA Complete Picture of Environmental Burdens Related
to Business Activities
Lion is striving to reduce environmental burden in the entire product life cycle, from raw materials procurement
through to product disposal.
In 2007, significant reductions were achieved in CO2 emissions and total waste generation.

INPUTOUTPUT

Even as sales increase, Lion is making significant
reducutions in such environmental
burdens as CO2 emissions and waste materials

Energy consumption, water
consumption decrease

Discharge to the atmosphere

EnergyTotal amount of energy consumed(Reduced 4,483 tons)(Reduced 216 kL)

Production division's 96,534 tons
emissions(Reduced 5,276 tons)

105.99 million kWh

Electricity(Reduced 9.52 million kWh)

Office emissions

14.81

Natural gas

million m3(Reduced 1.49 million m3)

Other fuels

14,879 kL

9,743

tons
(Increased 793 tons)

61 tonsNOx emissions(Reduced 6 tons)(Reduced 4,214 kL)(Crude oil equivalent)

106,277 tons

CO2 emissions

57,504 kL(Crude oil equivalent)SOx emissions

30

tons
(Increased 3 tons)

920 kg

PRTR chemical substances

Materials(Increased 337 tons)

457,000 tons

Raw materials(Home products only)(Increased 3,000 tons)

PRTR chemical substances（The Lion Group）

77,000 tons

(Reduced 17,000 tons)

Waste water
Waste water

675,000 m3 3

(Reduced 70,000 m )0 kg( ± 0）

PRTR chemical substances

Water resources
Water used

Waste

1,253,000 m3(Reduced 81,000 m3)

Tap water used

355,000 m3

Total waste generation

898,000 m3

Total waste generation(Reduced 45,000 m3)

Industrial water used

(Includes building waste)(Reduced 36,000 m3)

5,468

tons
(Reduced 545 tons)

5,980

Business
tons area(Reducedcosts
1,249 tons)>>

Consigned for recycling

4,058

Final waste landfill volume

689

tons
(Reduced 517 tons)
tons(Increased 2 tons)

Distribution
CO2 emissions*1

22,813tons(Increased 1,382 tons)>>

Distribution

Products

341.7

Net salesbillion(Increased 11.3 billion)

Waste packaging

tons(Reduced 1,210 tons)

41,419Customers
Note: Figures in parenthesis indicate the change from the last year’s results*1 CO2 emissions: Changes in the formula for calculating CO2 emissions in distribution accompanying revisions to the Law Concerning the Rational Use of Energy

19Environmental Accounting
Environmental accounting is an important indicator to promote efficient and sustainable environmental protection activities.
Lion will continue to improve its environmental activities by grasping the entire picture through the utilization ofenvironmental accounting.
protection costs for environmentally friendly products
are calculated based on the method of classifying theminto coefficients in accordance with Lion Eco Standards,
then using these as each product’s environment-friendly
coefficient to multiply by investment and cost of facilities.
For a manufacturing facility that produces several kinds ofproducts, however, the manufacturing volume compositionat the facility is taken into account in the calculation, andthe weighted-distribution method is applied.
Lion Corporation’s environmental accounting calculation
period follows the Company’s financial year, from January
2007 to December 2007.

Environmental Accounting
Lion Group’s Environmental Accounting
Each year, aggregate calculations related to economic
effects (real effects) accompanying environmental
protection costs, environmental protection effects andenvironmental protection measures throughout theLion Group are undertaken, based on Ministry of theEnvironment guidelines.
Environmental protection costs refer to investments
and costs for such activities as prevention, suppression,
avoidance and recovery of damages stemming fromenvironmental burdens related to business activities.
Placing a high priority on environmentally friendly
products, Lion Corporation has established, on an
independent basis, environmentally friendly product items,
to which business-area expenses from environmental
protection costs have been applied. Environmental■Economic effects associated with environmental protection measures
Effects

Year-on-Year Reduction(Millions of yen)

Decline in cost due to energy conservationー

Decline in cost due to natural resources conservation

244

Reduced amount of water and sewerage bills

41

Reduced amount of waste disposal*

10* The figure includes sales of valuable resources■ Environmental accounting for 2007

( ): Reduction

Environmental protection costs (millions of yen)
Category

Principal activities

Environmental protection efficiency

Investment

Cost

Item

2007

Relatedeffects

61
30
14
17

information		
Pollution prevention					
Air pollution prevention,
24
344
		
Water pollution prevention, etc.			
					

NOx emissions (tons)
SOx emissions (tons)
Particulate emissions (tons)
Total COD (tons)(6)			
3
P. 24
2
P. 29
(6)

					
		
Environmental protection
118
3,990
Business area
Energy conservation, etc.			
costs				Energy consumption (tons of CO2)
Industrial water used (m3)
Tap water used (m3)
Wastewater emissions (m3)

106,277
898,196355,230
674,714(4,483)(36,146)(44,461)(69,991)							Resource recycling
0281
		
Waste disposal, recycling, etc								

Total waste generated (tons)
Total waste volume for final landfill (tons)
Recycling rate (%) (Volume of recycling/
Volume of waste consignment)

5,980
689
77

(33)
2
(10)

P. 22-24

P. 24

		
		

Environment-friendly products
3,741
2,629
Environment-friendly product manufacturing			facilities, etc.

Use of biodegradable materials, plant-based materials, compact		
products, refillable products, recycled paper, reprocessed PET bottles, etc.

P. 25-28

Upstream/
downstream costs

Commissioning costs incurred in connection
with the Containers and Packaging Recycling
724
ー
			
Law and product waste disposal, etc.

Packaging materials used
Product waste (tons)

(221)
1,652

P. 27-28

Managerial
activity costs

ISO 14001 renewal expenses,
				
1
610
environmental education, publication of						
reports, exhibitions,others

P. 17
P. 31

Research anddevelopment costs

Environment-friendly product development
expenses, etc.

98

1,389				P. 25-28

Community
service costs

Regional environmental activities,
donations, others

0

9				

Environmental
damage costs

Costs for soil improvement, etc.

0

0				

		

Total

3,982

70,212
5,905

P. 29

9,976

20

The Environment and Lion
環境とライオンECO
LION ACTIVITIESECO LION ACTIVITIES (Lion’s environmental
protection activities)
Lion commenced “ECO LION” activities under five principal initiatives with the aim to become a “leading
company in environmental friendliness.”
In 2007, Lion established the Three-Year Medium-Term Environmental Plan and is moving towards achieving thegoals of each of these initiatives.
In 2006, Lion formulated the ECO LION Declaration to promote ECO LION activities. These
activities encompass all of Lion Corporation’s business activities, from research and development,
raw materials procurement, manufacturing at plants, marketing, logistics, and sales to household
use and disposal.
In 2007, of the five principal initiatives, Lion was presented with the 16th Grand Prize for the
Global Environment Award*1 in recognition in particular for “reducing greenhouse gas emissions”
and “considering the environment from a product-oriented perspective.”

ECO LION Activities’ Five Initiatives

1

Reducing greenhouse gas
emissions

Lion is undertaking activities
to reduce total CO2
emissions, including thosefrom its business activities,
as well as CO2 emissions
attributed to the use of its
products by consumers.

2

Effectively using and recycling
resources

Lion strives to reduce total
waste generation andfinal waste landfill volume
while establishing a waste
recycling control system.

3

Appropriately handlingchemical substances

Thoroughly complying withvarious relevant regulations
regarding safety assurance andenvironmental consciousness, Lionpays close attention to safety andthe environment at every stage of
product life, striving for thoroughcontrol of chemical substancesand reduction of their use.

5

Fostering environmental
awareness within the Lion Group

Aiming to become a“leading company inenvironmental friendliness,”
Lion is implementing
environmental education
on a continual basis toraise each employee’s
awareness ofenvironmental issues.

Considering the environment froma product-oriented perspective

Through the utilizationof “Lion Eco Standards,”
which were establishedin 2006, Lion is promoting
the development of eco
products from a clear
environmental perspective.

21

4

The award ceremony of the 16th Grand Prize for the
Global Environment Award＊ 1 The Grand Prize for the Global Environment Award, which aims for “symbiosis between industrial development and the global environment,” wasestablished in 1992 in special cooperation with the World Wide Fund for Nature Japan (WWF Japan, Honorary President: His Imperial Highness,
Prince Akishino). These represent Japan’s most authoritative and prestigious awards for environmental achievements

1 Reducing greenhouse gas emissions
Eyeing the post-Kyoto Protocol framework, Lion is reducing CO2 emissions from its business activities aswell as those attributed to the use of its products by consumers in order to prevent global warming.
In 2005, the Kyoto Protocol came into effectand called for the reduction of greenhouse gas
emissions between 2008 and 2012 by 6% for Japan
compared with 1990 levels. In the backdrop of this,Lion Corporation is eyeing the post-Kyoto Protocol
framework, as all employees actively make efforts to
reduce CO2 emissions.

emission targets that are 93% or below (7% or greater
reduction) the 1990 level formulated in the Three-Year
Medium-Term Environmental Plan.
■ Trends of business activities-derived CO2 (The Lion Group)
CO2 (tons)
150,000
120,000

123,224

131,304

114,909130,497

110,760

90,00060,000Initiatives to Reduce CO2 Emissions

30,000With the establishment of the Three-Year MediumTerm Environmental Plan, Lion has pioneered the
reduction of CO2 emissions, combining those fromits business activities and those attributed to theuse of its products by consumers. In 2007, the LionGroup succeeded in reducing the total amount of CO2
emissions by 37% from the 1990 level.
■ Trends in total CO2 emissions from the Lion Group’s businessactivities and the use of its products
Product-derived CO2
CO2 (tons)
300,000
250,000
200,000

Business activities-derived CO2

100 %
73 %

Reduction

67 %

100
50

150,000

37%

76 %
54

63 %
59 %

48

37

46

93

90

86

2005

2006

2007(Year)

100,000
50,000
0

100

106

107

1990

2003

2004

106,277

Business Activities: Achieving the Goal of
Reducing CO2 Emissions
In 2007, as part of its activities to reduce CO2
emissions, the Production Division implemented
energy conservation measures including switchingfrom heavy fuel oil as the fuel used in the
manufacturing process (drying) for powder laundry
detergent to natural gas, which emits less CO2.
Among the activities undertaken to reduce CO2
emissions, Lion Corporation participated in Japan’sTeam Minus 6% project at its offices and R&D
division, thoroughly promoting “eco-drive” throughthe use of eco-friendly commercial vehicles, theintroduction of low-emissions vehicles (LEV), and carsharing initiatives.
As a result, CO2 emissions in 2007 were reduced 14%
compared with the 1990 level, a 4% reduction from theprevious year, making it possible for Lion to achieve

0

1990

2003

2004

2005

2006

2007(Year)

Product Use: Reducing CO2 Emissions by
54% Compared with the 1990 Level
Lion Corporation is promoting product research anddevelopment with the aim of reducing CO2 emissions
from products after household use. Specifically, thisinvolves furthering the switch from surfactants madefrom petroleum-based ingredients to plant-based
surfactants that do not lead to the increase of CO2(“carbon neutral-effect,” please refer to page 3), as
efforts to reduce CO2 emissions from products.
In 2007, as a result of an increase in the
manufacturing volume of dishwashing detergents
blended with petroleum-based surfactants, CO2
emissions from all of our products rose 24%compared with the previous year, but this was a
54% reduction from the 1990 level. Hereafter, Lion is
striving to reach its target for 2009 of a 150,000-ton
reduction compared with the 1990 level.
By actively making efforts to use plant-based
ingredients in the years ahead, Lion is working
towards reducing CO2 emissions both from products
and business activities.
■ Trends of product-derived CO2 (The Lion Group)
CO2 (tons) 175,834
180,000
150,000
120,000
88,17390,00094,82084,671
65,42081,1082006

2007(Year)

60,00030,000
0

1990

2003

2004

2005

22

The Environment and Lion
環境とライオン「ECO LION」活動
ECO
LION ACTIVITIESGlobal Warming Countermeasuresin Logistics

Environmental Activities at Lion Offices
All employees are promoting ECO LION activities
with the aim of making Lion a “leading company inenvironmental friendliness.” As part of these activities,
Lion participated in the Team Minus 6% project in July
2005, a government-promoted national movement toprevent global warming.
To that end, Lion commenced implementation of thefollowing four measures:
1. Appropriate temperature settings for air conditioning(summer: 28°C; winter: 20°C)
2. Adopting a system to allow all the employees to leaveon time once a week to reduce electricity usage
3. Practicing thorough energy-saving measures byswitching off unnecessary lighting during lunchtime inunattended bathrooms and other areas
4. Promoting eco-driving with its company vehicles
In addition, Lion completed the “Lion Eco Green Garden”
on the top of its head office building (approximately 50m
above the ground and 240m2) in 2006 in accordancewith the “green roof policy” in Sumida-ku, Tokyo.
Measuring the surface temperature of the building,it was confirmed that these green modifications hadOcurbed overheating of the building from 56.1 C to 39.7
O
C in August 2007. Reduction of energy use from air
conditioners is expected from the green roof’s curbingof the “heat-island phenomenon.”Due to these activities, a 100-ton reduction in CO2emissions compared with 2004 at the Lion Group
offices was achieved between April 2007 and March
2008. Furthermore, accompanying factory closures in
the Tokyo area, CO2 emissions from onsite employee
welfare facilities (employee lockers, cafeterias andsports gyms and other facilities), which had been
included within the Production Division until now, havebeen included in Lion’s offices (Hirai Research Institute)from 2007 onward. Excluding this transferred section(459 tons of CO2), Lion achieved a 559-ton reduction of
CO2 compared with the 2004 level.
■ The Lion Group’s total CO2 emissions at its offices(calculated from the Group’s electricity usage)
(%)
5,000
4,000

Apr.-Sept.
5,049

Oct.-Mar.
4,949

4,522

4,446

2,102

2,096

2,758

2,420

2,350

2,610

2004

2005

2006

2007

2,291

3,000

2,339

2,000
1,000
0

23

(Year)

In cooperation with affiliated companies that handle
logistics within the Lion Group, we have long pursued
the enhancement of logistics efficiency. In 2007, direct
shipments from factories expanded, and this has
decreased the total shipping distance.
Through this and measures to improve shipment load
ratios such as larger shipment lot sizes, integrationof logistics bases and joint logistics with othermanufactures, Lion is working to reduce the amount offuel being used for this purpose.
Furthermore, Lion is vigorously undertaking suchmeasures as using larger trucks for
product transport and continuing itAs
modal shift in its logistics systemby switching to railways and ships.
The Company acquired the “EcoRail Mark,” which is certified by the
Ministry of Land, Infrastructure andTransport, in 2005.
As a result, energy consumption per unit of specificproductivity between April 2007 and March 2008 fell
97% year-on-year, achieving the 99%-or-below target
compared with the previous year. In addition, Lion’s
modal shift rate for 2007 improved to 21.6%. As a resultof the impact of increased shipments (109% comparedwith the previous year), CO2 emissions amounted to106% compared with the previous year.
■ Modal shift rate(%) 24
20

21.6
19.6

19.5

19.1

2004

2005

2006

18.0

16
12
0

2003

2007

(Year)

2 Effectively Using and Recycling Resources
In accordance with the philosophy of the Basic Law for Establishing the Recycling-based Society, Lion isfacilitating waste reduction and recycling, bringing significant results.
Lion has achieved substantial reductions in both total waste generation and final waste landfill volume
compared with the 1990 level.

Zero Emissions are Being Expanded Within
the Lion GroupIn 2007, the Production Division implemented measureson an ongoing basis to increase the volume of reusing
cleaning water and waste solvents, maximize waste
plastic and metal usage, and reduce packaging materials
loss through the stabilization of manufacturing processes.
The Research and Development Division steadily
undertook waste-sorting activities based on environmental
inspections and guidance. Consequently, total waste
generation stood at 58% compared with the 1990 level,
achieving the 64%-or-below target for 2007. In 2008, Lionis aiming to attain a reduction to 56% or below comparedwith the 1990 level. In addition, owing to waste from its pilot
plant, Lion’s final waste landfill volume*1 has slightly increased
since 2005. However, the Company has already attained the
13% of the 1990-level target (less than the target of 14%-orbelow set by Nippon Keidanren from the 1990 level for 2010).
Aiming for a reduction to 10% or below of the 1990 level in
2009, Lion is bolstering its reduction activities. Lion achieved
zero emissions*2 in 2002 at its production facilities and has
remained at that level since then. Hereafter, the entire LionGroup, including affiliated companies, is striving to achieve
zero emissions. Furthermore, regarding waste disposal,
supervisors responsible for overseeing waste generation
at each division select and commission waste disposal
contractors, in accordance with the standards to select the
primary trustees outsourced following waste management
regulations. Lion also implements regular on-site inspectionsof waste disposal contractor operations and verifies that
contractors are complying with these regulations.

Water Resources Preservation
While continuing its efforts to control water consumption
and wastewater discharge, Lion strives to reduce volume
and burdens to the water environment. In particular,
Lion engages in the conservation of water resources
through the maintenance and stabilization of wastewaterprocessing facilities on a regular basis. In 2007, theCompany cut water consumption, wastewater discharge
and COD*3 compared with the previous year due to suchmeasures as efficient water-cleaning operations at its
production facilities.

Green Purchases
Expansions are being planned to the green purchase list
related to office supplies used by Lion employees, and thisis being promoted companywide. In 2007, the ratio of green
purchases of office supplies amounted to 89%. However,
due to the revelation in early 2008 that the blending ratio ofrecycled paper in the paper manufacturing industry had been
camouflaged, ratio verification and revision of this list will be
undertaken hereafter based on the results of deliberations
undertaken by the Japanese government and other bodies.

■ Lion Group’s total waste generation(Tons)
10,000Lion

Affiliated companies

100％
100

8,000

79％
74％
159

6,000
4,000

64％

64％

143

171

58％
163

100
66

2,000
0

134

1990

2003

64

2004

51

46

2005

2006

40

2007

(Year)※ Excluding construction waste■ Lion Group’s final waste landfill volume(Tons)
6,000
5,000

Lion

Affiliated companies

100％
100

4,000
3,000

2010 Target in Keidanren Voluntary Action Plan

100

2,000
11％

1,000
0

1990

7％

10％

13％

13％

112
20

61
20

41
8

59
9

68
8

2003

2004

2005

2006

2007 (Year)※ Excluding construction waste*1 Final waste landfill volume: The final volume of waste discharged for landfill, which does not include the residue from reuse as a resource*2 Lion’s definition of zero emissions: A 99% or better proportion of total waste products emitted that are reused as resources; this does not include the residue from such reuse*3 COD: Chemical oxygen demand. An index of water pollution that indicates the amount of oxygen consumed in order to oxidize and break down organic substances in water

24

The Environment and Lion
環境とライオン「ECO LION」活動
ECO LION ACTIVITIES

3 Considering the Environment from a ProductOriented Perspective

In December 2006, Lion established “Lion Eco Standards” as its new environmentally friendly criteria, by which it
currently operates. Fully utilizing these standards, Lion is promoting the development of eco products from a Life
Cycle Assessment (LCA) perspective.

Product Development Activities that
Consider the Environment
Lion promotes product development that takes theenvironment into consideration from the aspect of productcomposition (contents), as well as containers and packaging.
From 2007, Lion has undertaken the development of
Eco Products utilizing the “Lion Eco Standards,” which isbased on the perspective of LCA, including composition(contents) and containers and packaging.
Specifically, products are evaluated quantitatively
in accordance with certain environmentally friendly
points at the development stage, and if the result of thisEco Standards,” these products are designated as
Eco Products.
In order to realize a sustainable, recycling-oriented
society, it is necessary to recognize the value ofpetroleum and other limited resources, requiring that
reductions be made in the environmental burden
generated by products at each life cycle stage. In thiscontext, Lion will continue to proactively develop eco
products that take the environment into consideration.
■ Ratio of eco products to the total number of Lion products

0

50

2006

55％

2007

59％

evaluation meets at least one criterion of the “Lion100

Products that meet at least one criterion of the Lion Eco Standards

Evaluation Items and Criteria in the Lion Eco Standards
Evaluation items and criteria in the Lion Eco standards are stipulated as follows:
Stage

1
2

3
4
5

Raw materials Use of plant-based
procurement materials

Packagingmaterials
procurement

Use of recycledmaterials
Use of plant-based andbiodegradable materials

Evaluation criteria• The ratio of plant-based materials to organic composition in products should be over 50%• Materials (paper and plastic) should be recycled materials (for paperboard, the ratioof recycled paper, thinned wood or certified forest pulp should be over 94% of 2010
target established by the Ministry of Economy, Trade and Industry and the paper
manufacturing industry)• Materials should use plant-based or biodegradable resins

Manufacturing

Energy conservation
Decreased generation ofwaste• Either energy consumption or waste volume should be reduced over 20% comparedwith the conventional manufacturing method

Logistics

Energy conservation due
to smaller-sized containers
and contents
that are more concentrated• Both containers and contents should be over 20% smaller or more concentrated than existingproducts

Energy conservation
Conserving water• Organic loading generated through use of the product should be 20% or less compared toexisting products• Energy consumption in product use should be 20% or less compared to existing products• Save 20% or more water in product use

Reduction of containerand packaging materials
Reduction of waste bymeans of refillable containers• Materials used for containers and packaging should be reduced 15% or more than forexisting products• Materials used for pouch and refill packages should be less than 50%of the original containers’ weight

Reduction of usage volume

Household use

6
Disposal

25

Evaluate Item

*Lion did not include criteria concerning free of harmful chemical content and excellent biodegradable properties in the Lion Eco Standards’
evaluation items as they are an absolute necessity for the Company’s products

Development of Environmentally
Responsible Composition
Stages (1) raw materials procurement, and (5)household use of the Lion Eco Standards are applied
as items to evaluate product composition (contents)
development. The evaluation standard for (1) raw
materials procurement is based on the use of plantbased ingredients and for (5) household use, reductionof environmental burdens from the discharge of organic
matter is applied. In addition, because Lion products
are discharged into the environment after household
use, “improved biodegradability” is a prerequisite.
Development of product composition that considers theenvironment is contributing to the protection of the aquatic
environment and the prevention of global warming.

Product Composition Development Activity 1
Lion Eco Standards’ Evaluation Item 1

Use of biodegradable surfactants
Organic matter within surfactants used in detergentsand other products, which is released in the environment
after use, biodegrades into CO2 and water. Even thoughplant-based surfactants emit CO2 as they biodegrade,because plants grow by absorbing CO2 and solar energy,
there is no increase in the total volume of CO2 emitted
into the atmosphere (carbon neutral). Plants are also
reproducible resources.
Under the Lion Eco Standards, products inwhich organic matter is composed of plant-based
ingredients at a level that is 50% or above will be
designated as Eco Products.

Product Composition Development Activity 2
Lion Eco Standards’ Evaluation Item 5

Reducing the amount of organic matter per load
When excess amounts of organic matter are
discharged in the aquatic
environment, such organic
matter takes time tobiodegrade due to superfluous
environmental burdens.
Through the use of a highefficiency composition(contents) that requires
less per use, the amount ofdischarged organic mattercan be reduced, thus decreasing the environmental
burden on the aquatic environment. Based on the
Lion Eco Standards, those products that reducethe discharge of organic matter by 20% or morecompared with conventional products will be
designated as Eco Products.
Product Composition Development Activity 3

Use of biodegradable surfactants
Surfactants used in Lion
products biodegrade quickly
after use and do not remain in
the environment for a long time.
*Regarding Lion’s development of theplant-based surfactant methyl ester
sulfonate (MES), please refer to Special
Topic Section 1 (p. 3-4)

*1 Biodegradation: the decomposition by microorganisms of organic matter emitted into the environment into carbon dioxide, water, and inorganic
substances, or the ingestion of the matter by a living organism

26

The Environment and Lion
環境とライオン「ECO LION」活動
ECO
LION ACTIVITIESIn 2007, the amount of containers and packaging

The “3Rs” of Containers and Packaging Reduction

materials used stood at 70,212 tons. Despite reductionsin the amount of plastic, glass and metal, the total amount

Lion is actively promoting the “3Rs” (Reduce, Reuse,increased by 870 tons compared with 2006 stemming from

Recycle) as an initiative to reduce containers andincreases in cardboard and paperboard use.

packaging materials. In addition, to achieve the Japan

In addition, with the volume of plastic used standing at

Soap and Detergent Association’s (JSDA) 2010 target of

70% of the 1995 level, Lion has attained the target of 70%

reducing packaging materials to 70% or more (comparedor less (compared with the 1995 level)—established by thewith the 1995 level) in 2009, in accordance with its

JSDA—for plastic use per unit of specific productivity involuntary action plan, Lion is undertaking a wide range ofeight categories of home products.
Through increased product compactness and innovative

efforts to reduce containers and packaging materials.
Stages (2) packaging material procurement, (4) logistics
and (6) disposal, of the Lion Eco Standards, are applied as

container design in the future, Lion is striving to reduce theamount of containers and packaging materials used.

items to evaluate the reduction of containers and packaging
materials. The evaluation standard for (2) packaging material
procurement is based on the use of recycled materials;for (4) logistics, it is the compactness and concentrationof products; and for (6) disposal, it is the reduction ofcontainers and packaging materials, and the reduction of
packaging material by the use of refillable containers.
■ Specifically designed containers

Activities to Reduce Containers and Packaging 1
Lion Eco Standards’ Evaluation Item 4 6

Reduced

14

Reduce：Reducing usage volume%of plastic use

Making Products Compact and Improving Container Design
In order to reduce containers and packaging materials,
by promoting high-efficiency laundry and dishwashingdetergents, fabric softeners and other products, Lion is
promoting concentrated products and more compact
containers.

Reduced10%of plastic use■ The amount of containers and packing material used
Plastic

Cardboard

Paperboard

Glass

Metal

Total
(Tons)
80,00060,00067,632

66,656

1,456
3,343

1,251
2,152

14,933

16,23670,091

69,34370,212

1,131

1,035

901

10,474

11,111

9,485

15,93615,141

16,505

26,842

26,714

28,794

15,70815,342

14,5272005

2006

2007 (Year)

40,00028,71528,97720,0000

27

19,18518,040

2003

2004

The new container is 10mm
smaller in height and 10μm thinnerthan the existing containers

Containers that areeasy to hold even
without a handle

Activities to Reduce Containers and Packaging 2
Lion Eco Standards’ Evaluation Item 6

Activities to Reduce Containers and Packaging 3
Lion Eco Standards’ Evaluation Item 2

Reuse：Reusing Containers and Packaging

Recycle：Conserving Resources

Increasing the Number of Refill Products

Promoting the Use of Recycled Materials

Plastic bottles for dishwashing detergent, shampoo andUtilizing Recycled Plastic

other products can be refilled and used over and overAlong with container manufacturers, Lion jointly developed

again. In addition, refill products require fewer materials toa technology to use reprocessed PET resin. In 1989, Lion

manufacture containers, thus contributing to the reduction

launched Mama Pockety, the first dishwashing detergentof household trash.

in Japan to make use of reprocessed PET resin for thecontainer. With further endeavor, the Company developed

Lion has been working to increase its number of refill
products since 1992. Refill products for a wide array ofa technology to solve the longstanding issue of using

products are available, including shampoo and fabricreprocessed PET resin for transparent bottles.

softener. Refill products are also available in the case of

A portion of containers used for the Lion dishwashingspray-type containers. Lion is also devising container

detergents Charmy Awa no Chikara (Power of Suds),

shapes and other innovations for refill products that are

which was released for sale in 2007, Charmy Mild andeasier for customers to use. Through the further expansion

Charmy V Quick is blended with at least 20% reprocessedof refill products in the future, Lion is striving to develop

PET resin from plastic beverage bottles. Furthermore,containers that increase the ease of use for customers.

measure spoons for powdered laundry detergents use
reprocessed resin made from discarded home appliancessuch as washing machines■ Innovative refill products and waste reduction effect●E asy-to-open perforation● Easy-to-refill extended
pour spout

Comparisonof containers● Productidentification slit
for the visually
impaired99％

reduction
in volume● Easy to carryand easy toplace upright79％

reductionweightRefill productUtilizing Recycled Paper Blended with Recycled Pulp
Containers and packaging material for such products as
toothpaste and laundry detergent use white paperboard■ Trends in the refill product sales ratio for Lion’s mainstay

blended with recycled pulp. Easy-to-read displays indicate

product categories

that “70% or above recycled paper” is the composition
2003

（%）
100

2004

2005
79

80
68
60

2006

59

64

69

74 76

78 79

2007
81 82 8184

ratio for powdered laundry detergent containers.
89

60
46

40

35

30 32

37

20

0

Shampoo andConditioners

Dishwashingdetergents

Liquid laundry
detergents

Fabric softeners

In addition, the composition ratio of recycled pulp fortransportation cardboard is 94%.
In 2008, Lion Corporation conducted a survey related
to discrepancy problems between recycled paper
composition ratios and what is stated on displays,
confirming that no problems exist with its products.

28

The Environment and Lion
環境とライオン「ECO LION」活動
ECO
LION ACTIVITIES

4 Handling Chemical Substances Appropriately
Lion pays full attention to safety and the environment and strives to thoroughly control and reduce chemical substances in the entire
process, from product development to household use and disposal.
In addition, Lion verifies on an independent basis what impact MES—Lion’s proprietary surfactant—has on aquatic environments.

The Concept of Safe Handling ofChemical Substances
Chemical substances are necessary in helping to makeour lifestyle congenial and comfortable. However, if
appropriate controls are neglected, or if an accident wereto occur, there could be significant impact on people’s
health and the entire ecosystem. As well as complying withrelated laws and regulations, Lion makes every effort tocontrol chemical substances at every stage, from productdevelopment to household use and disposal.

Product Development
Management of Chemical Substances in Lion Products
Chemical substances used in Lion’s products areadministered based on laws and regulations as well as theCompany’s proprietary criteria, starting with the process of
raw material procurement.

Confirmation of Chemical Substance Safety
Lion participated in the OECD/HPV Program’s*1
international consortium and cooperated in safety
confirmation work for linear alkylbenzene sulfonate (LAS),
α-olefin sulfonate (AOS) and fatty-acid methyl ester (ME).
In addition, Lion committed itself as a sponsor of MES in the“Japan Challenge Program*2,” submitted a plan for collectionof safety information and carries out safety confirmation workin cooperation with the Japanese government. In order toundertake the appropriate management of information related
to chemicals and others, and to smoothly disclose andconvey information to clientele, the Company also participatesin the activities of the “Joint Article Management Promotionconsortium (JAMP)*3,” and is developing mechanisms to
manage chemical substances and disseminate information toits supply chains.

Production

Complying with the PRTR Law*4
The Production Division and the Research andDevelopment Division submit reports regarding theemissions and transport volume of chemical substances
covered under the PRTR Law on a yearly basis. During
fiscal 2007, reports were submitted related to emissions
and transport volume of twenty materials. The volume of
linear alkylbenzene sulfonate and its salt (LAS) discharged
into the atmosphere stood at 420 kg, which is a reduction
compared with fiscal 2006. In addition, due to a sharp risein the amount of ethylene glycol monoethyl ether being

29

handled, the amount discharged in the atmosphere has
increased. Hereafter, Lion will take measures to reduce
emissions at production facilities.

Voluntary Activities for Air Pollution Prevention
Lion is conducting voluntary activities to reduce chemical
substances such as nitrogen oxide (NOx), sulfur oxide(SOx): particulate and volatile organic compounds (VOC)
that cause air pollution. Lion was able to reduce VOC
emissions in 2007 to 54% compared with the 2000 level
and has already achieved the target of a 67% or below
reduction of these emissions.

Transport
Providing safety information during transport
In the case of the transport of raw materials and semimanufactured products, “yellow cards” and “container
yellow cards*5,” which provide information related toemergency measures, are distributed and attached fortransport personnel.

Household Use and Disposal
Ecological Risk Assessment of chemical substances
included in products discharged after household use
Surfactants that are contained in products are discharged into
the environment after household use.
Every year, the Japan Soap and Detergent Association(JSDA), with which the Lion Corporation is affiliated, conducts
ecological risk assessments of public water sources. The
JSDA conducts these assessments four times annually, andreports on the concentration in river water of four types of
surfactants found in water discharged from households. With
regard to the surfactant MES, Lion independently conducts
similar assessments. These surveys have confirmed anominal impact on the ecosystem.
*1 OECD/HPV Program: An approach to establish a database anddisclose the results of environmental and health impact from High
Production Volume (HPV) chemicals (those that are produced inquantities over 1,000 tons per year) conducted by the Organization for
Economic Co-operation and Development (OECD)*2 The Japan Challenge Program: This is a program that ties together
industry and the Japanese government, accelerating the collectionof safety information regarding existing chemical substances anddistributing this information to a wide range of citizens*3 Joint Article Management Promotion-consortium (JAMP): This isan entity that was established to manage chemical substances within
products and to disseminate specific mechanisms that facilitate
disclosure/conveyance of such information along the supply chain*4 PRTR Law: The Pollutant Release and Transfer Register Law
promotes steps for precisely understanding the emission volumeof specific chemical substances into the environment as well as
management improvements for this purpose. The PRTR Law requires
businesses that handle chemical substances that may cause harm
to human health and the ecosystem to independently measure thevolume of these substances discharged into the environment ortransfers of them from their place of business and to submit a reportto the government regarding this
*5 Yellow Cards, Container Yellow Cards: This is a labeling systemthat contains information on the properties of chemical substances andemergency procedures in the event of a chemical leak during transport

Environmental Care through the Chemicals Division Business
The Chemical Division’s Environmental Solutions Business

De-Inking Agent, Essential to Paper
Recycling

In addition to its health care and household productbusinesses, Lion has the Chemicals Division, which
provides industrial chemicals to each industry.
Given the increasing social demand in recent years
for environmental-friendliness among customers of the
Chemicals Division, Lion Corporation has been striving tosolve this issue by developing a wide range of productsthat reduce environmental burdens, thus supporting asustainable, recycling-oriented society in areas not readily
visible to the public.

To manufacture recycled paper from old newspapers
and magazines, ink on the used paper must be removed
first. This process is called “de-inking.” Referred to as
recycled paper cleaning, this technology is one of Lion’s
strong points. Consequently, Lion has been extensively
providing de-inking agents used in this process todomestic and overseas paper manufacturers and has
supported domestic paper-recycling manufactures forover 30 years. The Company now markets de-inking
agents in Europe, the United States and the rest of Asia.

Plant-Based Chemical ProductsAqueous Detergents with Less
Environmental Burden

Today, the majority of chemical products are made frompetroleum. However, Lion is aggressively developing
environmentally friendly industrial products by leveraging
plant-based materials such as coconut oil and palm oil.
Some of these products are raw materials used for ink
solvents and as oil-spill dispersants.
Lion has recently succeeded in developing plant-basedtransformer oil (palm fatty esters) for electricity applied in
substation transformers. This is beneficial to the environment
because plant-based insulating oil is biodegradable and does
not increase CO2 in the atmosphere, and as a consequence,
Lion obtained the environmental label “Eco Mark” in January
2008 for this transformer oil.
■ Plant-derived raw materials

Fatty esters

Palm fruit

There are a number of cleaning processes necessary
to complete the manufacture of increasingly higherperformance electric component parts. Although
there have been cases where some of these cleaning
processes used detergents that contained ozonelayer-destroying fluorocarbons, environment-friendly
detergents are increasing in use. Given this trend, Lion
utilizes its proprietary microemulsion technology todevelop and offer aqueous detergents that containabsolutely no ozone-depleting materials. Because theirbase component is water, these aqueous detergentsare environmentally friendly and safe for people touse, while featuring minimal environmental burden.
These aqueous detergents are presently used in the
manufacturing processes for such items as harddisk drives (HDD) and liquid crystal displays, and in
addition to electronics manufactures, Lion is supporting
the environmental measures being undertaken by
automobile manufactures.
■ Aqueous detergent’s cleaning effect
Lenses prior to washing

Lenses after washing

Enlarged Lens surface

Enlarged Lens surface

Presently, transformer oil uses petroleum-based oils, of whichapproximately one million kilolitres is produced worldwide
each year. However, this oil releases approximately 2.5 million
tons of CO2 when it is burned.
Lion is contributing to the
curbing of CO2 emission
increases in the atmosphereby switching to renewable
and carbon-neutral, plantbased oils.

High-capacity transformer(10 meters high, using 200
kiloliters of insulation oil)

Aside from the products already mentioned here, Lion
markets sophisticated industrial chemicals in Japan andoverseas that are playing a key role in environmental
protection on a global scale.

30

The Environment and Lion
環境とライオンECO
LION ACTIVITIES

5 Fostering Environmental Awareness within
the Lion GroupTo further increase environmental awareness among all employees engaged in ECO LION activities and toencourage voluntary environmental activities, Lion implements environmental education and provides facilities tocarry out these activities.

Implementing Periodic Environmental Education
In order to encourage voluntary environmental
activities, Lion implements environmental education
for all of its employees on a regular basis.
Lion provides such employee education programs
as “Basic Environmental Education,” “Education
for Environmental Managers,” “Education forSpecial Service Personnel,” “Education for New andTransferred Employees,” and “Education to Foster
Internal Environmental Auditors.”
Furthermore, the Company regularly publishes
general information about the environment andenvironmental activities undertaken by the Production
Division, the R&D Division and offices in its inhouse magazine. In 2007, this magazine reported
on such company-wide environmental events as
the establishment of the Three-Year Medium-Term
Environmental Plan and Lion being awarded with the16th Grand Prize for the Global Environment Award,
along with the introduction of environmental initiatives
undertaken by the Odawara Factory, the Osaka
office, and the Packaging Engineering ResearchLaboratories. Lion will continue to increase employee
awareness of environmental issues.
In the in-housemagazine,
Lion features special
topics regarding
environmental
preservation
activities and runs acolumn entitled “ECO
MODE,” aiming toenhance employees’
environmental
awareness.

All Lion Employees Participate in Japan’sTeam Minus 6% Project
In order to thoroughly implement each measure of
the Team Minus 6% Project—which Lion has been
participating in since July 2005—corresponding
to the “Cool Biz” and “Warm Biz” seasons, Lion
disseminated the outline of the project by meansof posters and internal employee email during the31

relevant periods, stimulating employees’ attention
regarding relevant environmental issues. In addition,
because it is important to succeed in increasing thecooperation of every employee, the results of activities
undertaken by all Lion employees are reported.
Details of the Team Minus 6% Project’s specificmeasures and results are included in the “Reducing
Greenhouse Gas Emission” section on pages 22 and 23.

Implementation of the ECO LION Proposal
Campaign
As part of ECO LION activities, Lion has been holding
the “ECO LION Proposal Campaign” since 2006 to invite
submissions of ideas related to ecological themes fromas wide a range of employees as possible. The four
themes for this year include: (1) eco product proposals; (2)community service activities; (3) operational efficiency;and (4) cost reduction. The total number of ideas posted
in 2007 was 2,297. As this campaign will be held on an
ongoing basis, Lion encourages as many employees as
possible to participate.

Fostering Environmental Awareness throughSupport for Nature Conservation Activities
Lion began undertaking forest trimming support
activities in 2006 and opened “Lion Forest in
Yamanashi” as its first project of the “Company
Forest Promotion Project” conducted by Yamanashi
Prefecture. We recruit volunteers among employees
annually for this purpose. In 2007, this activity washeld twice, with 42 employees participating (pleaserefer to p. 14).
In addition, Lion is conducting nature conservation
activities on an independent basis in each region.
For example, the Company proactively protects
endangered species in the Odawara area.