Together with the Environment

Together with the Environment
Sustainability Material Issues １
Sustainable Planet

Promoting Environmental Initiatives for a

Basic Approach

We at the Lion Group believe it is our solemn responsibility to provide excellent customer experiences in the areas of health,comfort and cleanliness while protecting the global environment—the foundation of health and daily living—in accordancewith our aim of “Becoming an advanced daily healthcare company.”

We have strived to realize a sustainable planet while working to achieve the targets of Eco Vision 2020.

From 2021, we will strive to achieve LION Eco Challenge 2050, a set of long-term environmental objectives formulated in

2019. Going forward, the Group will ambitiously work toward the realization of a decarbonized, resource-circulating society.

Lion’s Commitment to the Environment

In line with the corporate slogan, “life.love.” we have written “Lion and the Environment” to encapsulate our commitment to

the environment, expressing our aim of reducing environmental burden not only through our business activities, but
through our products as well, while making every day brighter for each individual.

Lion and the Environment
Making daily life more pleasant should also mean caring for the environment.

Each everyday activity can do good things for our planet.

That’s Lion’s eco-philosophy. It’s why we make environment-friendly products that fit right into your lifestyle.

For example, we use renewable plant-derived carbon-neutral ingredients.

And we help you conserve water resources with our water-saving products while protecting the water

environment.

So, day by day, without even thinking about it, you help keep our planet healthy.
It’s an eco-lifestyle for everyday life.

That’s Lion's promise to you and the Earth.
“Every Day. For the Earth” pamphlet [Japanese](5.02MB)

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Approach / Management / Targets and Achievements

Environmental Approach and Policy /Environmental Objectives and Achievements

ESG Data and Third-Party Verification

Disclosure based on TCFD recommendations

Management

Initiatives

Realizing a Decarbonized Society

Realizing a Resource-Circulating Society

Reducing CO2Emissions throughout Business Activities

Recycling Resources

Reducing CO2Emissions throughout Product Life Cycles

Reducing Water Use

Harmonizing with Nature (Biodiversity)

Environmental Communication

Chemical Substance Management

Environmentally Friendly Technologies in theChemicals BusinessLion’s Environmentally Friendly Products

Products with the “eco Lion” Mark [Japanese]30

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Together with the Environment

Environmental Approach and Policy / Management
Approach

Environmental Policy

Environmental Management Structure

Environmental Management System
Legal ComplianceApproach

In 2019, the Lion Group established the LION Eco Challenge 2050, a set of long-term environmental objectives, with the goalof promoting business activities that help to address global problems, such as those identified in the Paris Agreement andthe Sustainable Development Goals (SDGs). In 2022, many countries, including Japan, began raising their environment- andsustainability-related targets. We have also revised our objectives as we work to achieve carbon neutrality by 2050. Aiming

to realize a decarbonized, resource-circulating society, we will promote environmentally friendly habits with consumers tocontinuously provide planet-friendly lifestyles that make more sustainable living easy.

Environmental Policy

The Lion Group’s Environmental Policy adheres to the spirit of the Lion Group Charter for Corporate Behavior, which states:“We shall play a positive and active role in creating a sustainable society that harmonizes economic development andenvironmental protection.”

Environmental Management System

The purpose of the Lion Group’s Environmental Management System is to identify, evaluate and remedy the adverse

environmental impacts of our business activities, products and services, and to improve our environmental conservation

activities on an ongoing basis.

We strive to enhance systems for environmental management and reporting with the aim of addressing environmental

issues globally. Environmental data on the Lion Group is available on our website.
Environmental Data

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Status of ISO 14001 Certification

Lion acquired ISO 14001* certification covering its production sites in July 2001 and has maintained this certification since.

Including the plants of Group companies in and outside Japan, the Lion Group continues to push ahead with its

management systems and environmental conservation activities in accordance with ISO 14001.

ISO 14001 Certificate of Registration* ISO 14001: An international standard for environmental management

Lion Group ISO 14001 certifications

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Environmental Management Structure

To grow our businesses while reducing our impacts on the global environment, the Sustainability Promotion Council, which

consists of the executive corporate officers, including the President, and representatives of related divisions. The council
deliberates on policy for dealing with environmental problems and monitors the progress of related efforts.

Top Environmental Audits

Lion’s top management has been carrying out environmental audits of Lion and domestic Group production sites since1999. Since 2009, we have formulated audit plans based on the characteristics of each plant and carried out regular audits

every three years. In 2023, the Akashi Plant, Osaka Plant and Chiba Plant underwent environmental audits under Director

Kobayashi, the director in charge of the Sustainability Promotion Department.

Top environmental audits (2023) Left: Osaka Plant. Right: Chiba Plant

Internal Environmental Audits

Trained internal environmental auditors regularly conduct internal environmental audits to check compliance with therequirements of ISO 14001. The relevant departments then take responsibility for implementing improvements regarding

any issues thus identified. In addition, the general managers of offices and plants conduct management reviews to confirm

that organizational management systems are constantly being improved to be more apt, fair and effective.

Legal Compliance

Lion ensures compliance with environmental laws and regulations. In addition, we carry out management based on

proprietary management standards.

Proper Waste Disposal

For waste disposal, a waste disposal officer at each operating site commissions waste disposal contractors based oncontractor selection standards laid out in Lion’s waste management regulations. We also perform regular on-site

inspections of waste disposal contractors’ facilities to determine whether we should continue to commission them.

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Proper PCB Waste Storage and Disposal

Polychlorinated biphenyl (PCB) was once widely used as an insulating oil in electrical equipment for its excellent fire

resistance and electrical insulation properties, but its manufacture and import are now prohibited by law. Lion had beenstrictly storing and disposing of PCB-containing equipment in its possession in compliance with the Act on Special Measuresconcerning Promotion of Appropriate Handling of PCB Wastes until disposal could be outsourced. The disposal wascompleted in 2022.

Wastewater Management

We manage ordinary wastewater to ensure that we do not emit wastewater that violates legal or regulatory water quality

standards through such means as enhancing the stability of wastewater treatment facilities, maintaining and reinforcing

treatment control, and carrying out emergency drills. Furthermore, operating sites form agreements with individualmunicipalities and establish and enforce voluntary standards to ensure thorough wastewater management.

Proper Management of Fluorocarbons

Identifying the facilities covered by the Fluorocarbon Emissions Control Act, doing simple and periodic inspections, keeping
records, and calculating the amount of leakage are all part of Lion’s response to the legislation. No operating sites in fiscal

2023 had fluorocarbon leaks that required notification. We will keep working to prevent leaks and encourage theintroduction of non-fluorocarbon and low Global Warming Potential (GWP) equipment when updating facilities.

Responding to Legal and Regulatory Changes Related to the Environment

With regard to revisions of environmental laws and regulations, namely, the Act on the Rational Use of Energy, the Act on

Promotion of Global Warming Countermeasures, the Act on Confirmation, etc. of Released Amounts of Specific Chemical
Substances in the Environment and Promotion of Improvements to the Management Thereof, the Act on the Evaluation ofChemical Substances and Regulation of Their Manufacture, etc., the Waste Disposal and Public Cleansing Act and the Soil

Contamination Countermeasures Act and the Fluorocarbon Emissions Control Act, information is collected fromadministrative agencies and industrial associations to ensure that related departments are up to date on and fullycompliant with the latest developments.

There were no violations resulting in fines or other penalties in 2023.

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Together with the Environment

Environmental Objectives and Achievements
LION Eco Challenge 2050 Long-Term Environmental Objectives

The Lion Group’s Initiatives to Address Climate Change

Participation in External Environmental Initiatives

Eco-First Commitment

LION Eco Challenge 2050 Long-Term Environmental Objectives

In 2019, the Lion Group established the LION Eco Challenge 2050, a set of long-term environmental objectives, with the goalof promoting business activities that helping to address global problems, such as those identified in the Paris Agreement

and the Sustainable Development Goals (SDGs). In 2022, many countries, including Japan, began raising their environment-

and sustainability-related targets. We have also revised our objectives as we work to achieve carbon neutrality by 2050.
Aiming to realize a decarbonized, resource-circulating society, we will promote environmentally friendly habits with

consumers to continuously provide planet-friendly lifestyles that make more sustainable living easy.

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Progress of Initiatives for 2030

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Making Planet-Friendly Lifestyles a Reality[zero-carbon th悶芯呼a�;:)siness actIVItles ](Procurement)• Supplier engag ement• Increasing l i neup ofcertified products• Carbon recycl ing(Energy saving)• Increas ing investment 1nenvironmentally fri end ly equ ipmentt hrough internal carbon pricing(Renewable energy)• 100% renewable energy in all Group
plants and offi ces(by 2024 in Japan: by 2030 overseas)｀� Create Env i ronment ally
• EnvironmentaJ ly friendly design
Fr i endly Hab its w it h•Creatingwater-and
power-saving habits
Consumers(Digital transformation)

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• Collaboratr.te smart logistics• Logistics EDI(Resource recyclin g)• Promoting 3Rs + renewables• Contri buting to the creation of a re可cl ing society• Creating refill habits• Creatingwaste-free habits·躙Proposing environmentally friendly, fulfilling lifestyles

He.lp achieve a carbon
negative society by reducing
its environmental burden.
(Scope 4)• Sustainable fashion (Lon g-lasting clot hi ng)• Smart homes (Spend i ng comfortable, relaxing ti me at home)• Decarbonized transportation(Popularization of environmentally friendly vehi cles)(co·creation with society)• Changing consumer behavior/Cultivating
habits(Ecosystem com pri sing i ndustry, government and private sectors)• CO2 absorption by forests/Afforestation

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Activities for Reducing Environmental Burden

As part of its responsibility as a producer, the Lion Group is working to achieve decarbonization and to solve plastic andwater resource issues in every stage of the product lifecycle, from the procurement of raw materials to use by consumers,

disposal and recycling. As laundry and other housework requires electricity and water, CO₂ emissions and water usage are attheir highest at the stage when consumers use our products. Going forward, we will work to reduce the environmental

burden of our products at this stage through the provision of environmentally friendly products and services and thecreation of environmentally friendly habits for consumers.

The Lion Group’s Initiatives to Address Climate Change

Climate change has become a pressing social issue in recent years and presents serious future risks to corporate

management as well as the possibility of new opportunities for corporate activities. Under the Vision2030 long-term

strategic framework, the Lion Group has made reinforcing initiatives to address the sustainability material issues one of its
management strategies and designated creating healthy living habits and promoting environmental initiatives for asustainable planet as its top priority material issues. Accordingly, we are working to mitigate risk by reducing CO₂ emissions

and other means while advancing a variety of initiatives to address the risks and opportunities presented by climate change,such as promoting the formation of environmentally friendly habits together with consumers.

Disclosure based on TCFD recommendations

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Lion’s Greenhouse Gas Reduction Targets Validated by the SBT Initiative
In March 2023, Lion has had its greenhouse gas (GHG) reduction targets for 2030

validated by the Science Based Targets (SBT) initiative*1 as being based on soundscientific grounds and aligned with the target of limiting global warming to 1.5°C. Thisvalidation follows a previous validation from SBT in 2020 as being aligned with thetarget of limiting global warming to well below 2°C.

Science Based Targets*1 The SBT initiative (SBTi) is a collaborative international initiative established in 2015 by the CDP, the United Nations Global Compact(UNGC), World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The initiative assesses and validates whether GHG

reduction targets set by companies based are properly science-based to help achieve the Paris Agreement goal of keeping the increase in

the global average temperature to 1.5°C above pre-industrial levels.

■ Validated GHG Reduction Targets (Targets for 2030)

Reduce total Scope 1*2 and 2*3 GHG emissions (absolute quantity)*4 by 55% (compared with 2018 levels)
Reduce Scope 3*5 GHG emissions (absolute quantity) by 30% (compared with 2018 levels)

Increase annual electricity procurement from renewable sources to 100% (from 0% in 2018)*2 Scope 1: Direct emissions from the use of fuel by the Company.

*3 Scope 2: Indirect emissions from electricity and heat purchased and used by the Company.

*4 CO2 emissions account for 99.8% of Lion’s GHG emissions (2022 figure).

*5 Scope 3: Indirect emissions from the Company’s value chain (excluding those covered by Scope 1 and Scope 2) attributable to purchased
goods and services (category 1) or end-of-life treatment of sold products (category 12).
News release: Lion’s Greenhouse Gas Reduction Targets Validated by the SBT Initiative

Eco-First Commitment

Under the Eco-First Program, companies make a commitment to the Minister of the Environment regarding their global

warming countermeasures, efforts to reduce waste and promote recycling, and other voluntary initiatives to conserve theenvironment (Lion’s Eco-First Commitment [Japanese]). The Minister of the Environment then certifies that suchcompanies are leaders in their industries in terms of implementing forward-looking, voluntary business activities inenvironmental areas.

In 2008, Lion became the first company in a manufacturing industry to be certified as a member of the Eco-First Program.

Since then, we have updated our Eco-First Commitment in step with the establishment of long-term environmental

objectives. The last such update was made in 2019 to reflect the LION Eco Challenge 2050 long-term environmental
objectives.

Eco-First Promotion Council

The Eco-First Promotion Council [Japanese]is an organization established in December 2009 to reinforce coordination

among environment-related governmental bodies and EcoFirst Program member companies, increase awareness of the
program and further enhance initiatives to address environmental issues.

Since the council’s establishment, Lion has actively participated as a core member, serving as the chair company from fiscal

2012 to 2013. Lion was involved with council operations as the managing company until fiscal 2023 and is now participating

as a general member.

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Participation in External Environmental Initiatives

TCFD

Eco First Companies
Association [Japanese]

Japan Climate Initiative

Plastics Smart [Japanese]

CLOMA Japan Clean Ocean
Material Alliance

Keidanren Initiative
for Biodiversity Conservation

GX League [Japanese]

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Together with the Environment

Information disclosure based on TCFD recommendations
The Lion Group’s Response to the TCFD

Climate change has become an urgent social issue in recent years and brings serious

risks to corporate management as well as the potential for new business opportunities.

In May 2019, the Group endorsed the recommendations of the Task Force on Climaterelated Financial Disclosures (TCFD), an organization established by the Financial
Stability Board (FSB). From October 2019 to January 2020, Lion took part in the

Ministry of the Environment’s Project to Analyze Scenarios of Climate Risks andOpportunities in Accordance with TCFD, evaluating the financial impact on its

operations of climate-related risks and opportunities. In 2022, we expanded the scopeof its analyses to encompass businesses, communities, product categories and supply
chains, developing them into full-scenario analyses. The climate-related information
resulting from these analyses is disclosed based on the TCFD framework.

Initiatives and Policy to Address the TCFD Recommendations

Core Elements of the TCFD’s Recommended
Climate Related Disclosures

Governance

The organization’s governancearound climate-related risks andopportunities.

The actual and potential impacts
Strategyof climate-related risks andopportunities on theorganization’s businesses,

strategy, and financial planning

The Lion Group’s Initiatives

・ Climate-related risks and opportunities are reported to the

Sustainability Promotion Council (which meets twice a year) by
its E Subcommittee and also reported, as needed, to the
Executive Management Board, Executive Committee and Boardof Directors.

・ In addition, a working group had been established under theCouncil to responsively look for business opportunities in thechanges in external conditions brought about by climatechange.

・ Based on the TCFD recommendations, we conducted scenario
analyses using a 1.5°C scenario and a 4°C scenario for theConsumer Products Business and some countries of theOverseas business, the operations of which are likely to be
impacted by climate change by 2030 and 2050.

・ We worked to identify and evaluate short-, medium- and longterm climate-related risks for the period from the present to2050 and factor them into our businesses, strategy andfinancial planning.

・ The Lion Group has designated certain climate-related risks
Risk

Management

The processes used by theorganization to identify, assess,and manage climate-related risks

that have the potential to significantly impact the Group’sbusinesses as “shared risks” to be managed Group-wide
alongside countermeasures to such risks. The Corporate
Planning Department and E Subcommittee coordinate suchmanagement, working together to identify, assess and manage
these risks.
Click here for risks and countermeasures (Japanese only)

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Core Elements of the TCFD’s Recommended
Climate Related Disclosures

Metrics andTargets

The metrics and targets used toassess and manage relevant
climate-related risks andopportunities

The Lion Group’s Initiatives

・ The CO₂ emissions of Lion Corporation and its domestic andoverseas consolidated subsidiaries (Scopes 1, 2 and 3) aredisclosed on Lion’s website. The LION Eco Challenge 2050 longterm environmental objectives include realizing adecarbonized, resource-circulating society as well as targets
for 2030 based on the metrics of CO₂ emissions, petrochemicalderived plastic usage and water usage. The greenhouse gas
reduction target is 1.5°C, certified by the SBT Initiative.
News Release: Lion's Greenhouse Gas Reduction
Goals Certified by SBT Initiative

Overview of Scenario Analyses

We conducted scenario analyses using scenarios in which the average global temperature increases 1.5°C or 4.5°C fromthe pre-industrial average by 2100. These analyses, focused on effects in 2030 and 2050, were carried out for theConsumer Products Business (for the oral care, beauty care, fabric care, living care and pharmaceutical product fields)
and the Overseas Business (for businesses in China and Thailand).
The principal scenarios used for this analysis were the following.

＊ Principal scenarios used for analysis of transition risks and opportunities:
The IEA’s NZA and STEPS scenarios＊ Principal scenarios used for analysis of physical risks and opportunities
The IPCC’s RCP1.9 and 8.5 scenarios

The analyses consisted of identifying climate-related risks and opportunities in each scenario, considering their
qualitative impacts on businesses and then quantitatively estimating these impacts in financial terms in order to rate
them as large, medium or small. As a result, the introduction of a carbon tax and increased raw material and packaging
costs were identified as risks that have a large impact on our businesses. The expansion of markets for sustainableproducts was identified as an opportunity that has a large impact on our businesses. In addition, we are studying thelatest literature, including the IPCC’s AR6, to envision how conditions related to daily living will shift due to climate change
as a perspective for exploring new business opportunities.

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The Lion Group’s Main Climate-Related Risks and Opportunities
Risks and Opportunities

Introduction of a carbon tax(Scopes 1, 2 and 3)

Increased
cost ofraw
Transitionmaterials

Fossil fuel-derived
Palm oil-derived
Plant-derived(from corn, mint, etc.)

Increased
cost ofpackagingandcontainers

Plastic-derived

Aluminum-derived
Timberresource-derived

Expansion of markets forsustainable products

Description

Impact1

4°C

1.5°C

Small

Large2

introduction of emissions trading andthe application of carbon taxes

・ Increased costs due to tightening of

Large

Mediumpalm oil regulations and increased use
of certified oil

Small

Medium・ Increased prices due to decreases in

Small

Small

Small

Mediumto aluminum as a result of regulations
on vehicle weight, etc.

Small

Mediumforest protections or logging
regulations

Small

Small

Small

Large

Small

Small

MediumSmall

Medium

Small

Small

Small

・ Increased factory operating costs dueto the full-scale introduction ofemissions trading and the applicationof carbon taxes by governments

・ Increased raw material procurement
costs due to carbon taxes on
emissions, including Scope 3
emissions・ Increased costs due to the full-scale

crop yields

・ Increased costs due to regulations onplastic use

・ Increased costs due to a shift from iron・ Increased costs due to forest fires,・ Expansion of demand for sustainableproducts, including those that savewater and power, due to risingcustomer awareness of ethicalconsumption

・ Increased operational and personnel
Increased average temperature

PhysicalChanges in precipitation and weather
patterns

Increased severity of extreme weather
eventscosts due to growing energy costs andburden on workers

・ Increased sales of laundry-related

products due to higher temperaturesand of hygiene-related products andservices due to increases in infectious
disease・ Increased costs of dealing with

impacts on the operations of Lion orits suppliers due to increased flooding
and water stress. Potential for
decreased credibility in the event thatstable supply cannot be maintained.

・ Decreased revenue due to internal

logistics delays and supply chaininterruptions resulting from increased
severity of extreme weather events.
Potential for decreased credibility inthe event that stable supply cannot be
maintained.

1. Risks are shown in red, opportunities are shown in blue

2. Impact if the LION Eco Challenge 2050 environmental objectives are not met and CO₂ emissions are not significantly reduced

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Summary of Scenario Analysis Results

Lion has been advancing efforts to address the scenarios used in the most recent analyses for some time but will continue
to direct management effort at further reinforcing resilience to change going forward.

Under the 4°C scenario, the increased cost of fossil fuel-derived raw materials is a major risk. Lion is already advancing
efforts to replace such raw materials with plant-based materials and reinforcing other efforts aimed at decarbonization.
Furthermore, to address rising physical risks, such as those of floods and water stress, we are advancing such efforts asreinforcing business continuity planning and supply chain data coordination. In terms of opportunities, the markets insuch areas as products related to infection prevention and laundry are expected to grow, so we are working to develop
related products and reinforce related services. Furthermore, we will continue to explore growth opportunities in thefields of oral health and infection control—areas of strength for Lion—to address the increase in the risk of the spread of
infectious disease.

Under the 1.5°C scenario, the increased cost of plastic-, aluminum- and palm oil-derived raw materials and packaging is amajor risk. Lion is already advancing initiatives to reduce such risk, including reducing the use of petroleum-derived
plastic and procuring RSPO-certified palm oil and palm kernel oil derivatives. In terms of opportunities, we expect
substantial expansion in demand for environmentally friendly products, presenting the potential for business expansion
by increasing offerings of products that meet the Lion eco-standard. Furthermore, these initiatives will help to reduce CO₂
emissions during the product use and disposal stages, which account for the majority of Lion’s Scope 3 emissions. In
addition to these efforts, as under the 4°C scenario, we are exploring other ways of securing opportunities for further
growth. These include the development of technologies suited to the growth of sustainable fashion and other lifestylechanges as well as expanding the supply of electro-conductive carbon, which will be necessary for the development ofdecarbonized transportation, including the spread of electric vehicles.

In addition, we will monitor social trends as we consider measures to address issues that currently have only a small
quantifiable financial impact but could present a large future risk to Lion (such as procuring high-quality mint).

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The World in 2050 in the 4 ° C (Business as Usual) Scenario

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Together with the Environment

Realizing a Decarbonized Society
ApproachSince the Industrial Revolution, rising emissions of CO2 and other greenhouse gases (GHGs) have contributed to global
warming. The impact of global warming-driven climate change on people and ecosystems is expected to become

increasingly severe, coming in such forms as more frequent heavy rains, flooding and other natural disasters, dwindlingfood and water resources, extreme heat, and outbreaks of infectious disease.

The Lion Group conducts businesses that utilize natural resources, such as oil palm and pulp and paper, and therefore

recognizes global warming as major risk to its operations.

The Paris Agreement, aimed at mitigating climate change and transitioning to a decarbonized society, came into effect in2016. The agreement includes the shared global long-term targets of limiting the average global temperature increase towell below 2°C (the “well below 2°C target”) and of pursuing efforts to limit the increase to 1.5°C. In support of the targets of

the Paris Agreement, in June 2019, Lion set the long-term CO2 emissions reduction targets of a 30% reduction by 2030

compared with 2017 and net zero by 2050. In 2020, one of Lion’s targets was validated by the Science Based Targets (SBT)

initiative as being aligned with the well below 2°C target.

Furthermore, in May 2019, Lion endorsed the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD).

In May 2021, the LION Group took into consideration such social trends as the Japanese government’s increase in its 2030

greenhouse gas emission reduction target from 26% to 46% (compared to 2013). Based on this, to help realize the common

global goal of limiting the temperature increase from pre-industrial times to within 1.5°C, we raised the 2030 CO2 reduction

target under the LION Eco Challenge 2050 for business site activities from 30% to 55% (compared to 2017).

To speed up the achievement of this goal, we also decided to switch the sourcing of all of the Group’s purchased electricity

to renewable energy sources by 2030. Furthermore, to facilitate capital expenditure on decarbonization, we introduced theInternal Carbon Pricing (ICP) system, which virtually converts CO2 emissions into costs based on our own criteria, thus
securing a reference for environmental investment decisions.

Based on its Environmental Policy and the LION Eco Challenge 2050, the Lion Group strives to reduce GHG emissions in its

business activities and to contribute to decarbonization by providing environmentally friendly products and services in

addition to promoting eco-friendly habit creation together with consumers. Through such efforts, we will contribute to themitigation of climate change.

Utilization of Internal Carbon Pricing (ICP) (Lion Integrated Report p.48)

Create Environmentally Friendly Habits with Consumers (Lion Integrated Report 2022 p.27 Growth Point 3)

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Overview

The Lion group is working to reduce GHG emissions at all stages, from raw material procurement to consumer disposal. We

will continue to promote efforts toward the realization of a Decarbonized Society.

Activities Aimed at Realizing a Decarbonized Society

Initiatives

Reduce CO2 Emissions throughout Business

Reduce CO2 Emissions throughout the Life Cycle

Activities

of Products

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Together with the Environment

Reduce CO2 Emissions throughout Business Activities
Sustainability Material Issues 1
Sustainable Planet

Promoting Environmental Initiatives for a

Promotion of Energy Conservation Activities
Carbon Offsetting

Utilization of Renewable Energy

Promotion of Energy Conservation Activities

In 2021, the Lion Group raised the target of reducing CO2 emissions from its business activities from a 30% reduction(compared to 2017) to a 55% reduction by 2030 (compared with 2017). As the first part of efforts to achieve our CO2

emissions reduction target, we are implementing thoroughgoing energy-saving activities at our various plants, offices andother facilities in Japan and overseas to increase energy efficiency.

Our production divisions consume higher amounts of energy, but are aiming to reduce CO2 emissions by 1% or more perunit of production every year through energy-saving activities such as improving productivity and adopting high-efficiency
equipment while working to reduce energy loss from utilities in such forms as steam and pressurized air and by recovering

heat to save energy. In addition, our offices have set up power-saving projects as they strive to save energy.

When constructing new buildings, such as plants and employee facility buildings, we strive to implement energy-efficientfacility design to reduce energy consumption. The Lion Group moved to its new headquarters (Kuramae, Taito-ku, Tokyo) in

January 2023, and the building acquired the “S Rank” certification of the CASBEE-Smart Wellness Office system in 2021,

which certifies a building’s wellness performance and overall environmental performance. In the future, by comprehensively
understanding the energy consumption status of all plants, we will discover more ways to conserve energy and achieve
further energy savings.

Going forward, we will continue to advance measures to further reduce CO2 emissions.

CASBEE Smart Wellness Office S
Rank certification of the new
Lion headquarters

New employee facility building
at the Lion Chemical
Corporation Oleochemical
Production Site (LCCOC)

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Energy efficiency label at the
new LCCOC employee facility
building

Lion Sustainability Website 2024

Received Commendation from the DirectorÙGeneral of the Kanto Bureau of Economy, Trade andIndustry for Two Consecutive Years for Excellence in Energy Management

Lion received the Kanto Bureau of Economy, Trade and Industry Director-General’s Award for Excellence inEnergy Management in fiscal 2019 as an excellent business operator that has made notable contributions toenergy conservation. This award was given for Lion’s former headquarters building, following the award

given for our former Tokyo office building in the previous year. Lion was rated highly for its efforts to reduceenergy consumption by utilizing BEMS (Building Energy Management System) data during the relevant

period (April 2014 to March 2019) to understand the status and ensure the proper operation of each piece ofequipment within the building and by implementing detailed energy management. (Relevant location:
former headquarters building)

CO2 Emissions in Business Activities (Domestic and Overseas)* We have corrected our figures due to errors in past data.

* Excludes carbon credit purchases. Including these, the amount was 159 thousand tons and 96% in 2022, 117 thousand tons and 71% in
2023.

ESG Data

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Utilizing Renewable Energy

The Lion Group is committed to implementing thorough energy-saving activities but does not expect these to be sufficient

to meet its CO2 emission reduction targets. To make up the difference, it will be necessary to utilize renewable energy bysuch means as installing facilities to generate solar power for in-house use and switching to purchasing electricity fromrenewable sources.

Introduction of Solar Power Generation System for InÙHouse Consumption

We have already installed facilities to generate solar power for in-house use at the Hirai Office Site. In 2021, we additionallyinstalled such facilities at LCCOC. Overseas, in the same year, a new solar power generation facility was installed and began

operation in the building of the new drying tower added to Lion Corporation (Thailand) Ltd. (LCT). We intend to further

increase the amount of solar power generated and increase renewable electricity procurement.

Solar power generation facility at the Hirai Research Center

Solar power generation facility at LCCOC

Exterior view of the new drying tower building at LCT

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Switching to Renewables for Purchased Electricity

Lion has changed over its power contracts to power companies that supply 100% renewably energy sources. As a result, alldomestic plants have been using renewable energy since January 2023 as has the new headquarters since April 2023
(partially using J-Credits ).

We began by utilizing renewable energy and green power certificates at our domestic offices, and were able to eventuallyrealize our goal of converting all our offices’ electricity consumption to that from renewable sources in May 2023. In

addition, at Lion’s overseas operating sites, we are gradually advancing the switch to renewable energy, and aim topurchase 100% renewable energy across all of Lion’s operating sites by 2030.

Carbon Offsetting

Lion Corporation (Thailand) Ltd. has purchased T-VER*(derived from solar powerX), a carbon offsetting credit, to offset theCO2 from its electricity purchases for 2023.

* T-VER is a credit system operated by a Thai public organization.

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Together with the Environment

Reduce CO2 Emissions throughout Product Lifecycles
Sustainability Material Issue 1

Sustainable Planet

Promoting Environmental Initiatives for a

Lion is taking on the challenge of resolving issues related to decarbonization by focusing not only on reducing CO2

emissions at its business sites but also on reducing CO2 emissions throughout the product lifecycles from raw material

procurement to disposal by consumers, as part of its producer responsibility.
LION Eco Challenge 2050 and Objectives and Indicators for 2030

Aim to reduce CO2 emissions throughout the lifecycles of its products by 30% from 2017 levels (absolute amount) by 2030

Aim to halve CO2 emissions throughout the lifecycles of its product by 2050

Greenhouse Gas Emissions throughout the Supply Chain

Lion Group recognizes that understanding greenhouse gas (GHG) emissions throughout the supply chain is important torealizing a decarbonized society. Accordingly, since 2013, we have calculated GHG emissions throughout the supply chain

based on the GHG Protocol Scope 3 standard. In fiscal 2023, our Scope 1, 2 and 3 emissions totaled 4,65 million t-CO2.

Going forward, we will continue to promote and develop products that help reduce emissions during product use, a stage

that accounts for a large portion of product lifecycles GHG emissions. By doing so, we will work to reduce GHG emissions.
GHG Emissions throughout the Supply Chain (2023)

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Scope 1 and 2 Greenhouse Gas Emissions from Domestic Operating Sites

Scope 1

2019

Scope 2

21

2020

50

Total

21

2022

52

67

0

purchased

19
48

70

Carbon credits

2021

2023

21
52

74

0

(thousand tons)

15

73

0

20
35

0

0

Notes:

Scope 1: Direct emissions from operating sites

Scope 2: Indirect emissions from the generation of purchased energy (electricity generation, etc.)

Scope 1 and 2 Greenhouse Gas Emissions from Overseas Operating Sites

Scope 1

2019

Scope 2
Total

Carbon credits
purchased

44
43

87
0

2020

2021

47
42

56

(thousand tons)
2022

22

89

36

78

0

49

2023

85

0

16

Notes:

Scope 1: Direct emissions from operating sites

Scope 2: Indirect emissions from the generation of purchased energy (electricity generation, etc.)* The historical data contained an error, which has been corrected in the figures.

Included as a Supplier Engagement Leader under the CDP Supplier Engagement Rating for a Fifth
Consecutive Year

The Lion Group was included for a fifth consecutive year as a Supplier Engagement Leader, aselect list of the highest rated companies under the Supplier Engagement Rating (SER) of the CDP,

an international non-profit organization that provides systems for environmental information
disclosure.

The SER is based on the CDP climate change questionnaire items about governance, targets, value

chain (scope 3) emissions and supplier engagement strategies. The rating covers companies thatcomplete and return the CDP climate change questionnaire. The companies that receive thehighest ratings for their actions and strategies to reduce greenhouse gas emissions and manage
climate risk in their supply chains are selected for inclusion in the list of Supplier Engagement
Leaders. In 2023, 458 companies including Lion (109 Japanese companies) were selected as
Supplier Engagement Leaders.

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43
38
82
16

Logistics Division Initiatives

Lion works to reduce CO2 emissions and energy consumption intensity through the following efforts.
Using larger transport trucks

Improving the transport loading rate

Expanding direct shipping from plants to shorten transport distances

Promoting modal shifts from trucking to transport by rail or ship

Lion’s overall modal shift rate in 2023 declined year on year. The modal shift rate for intra-company transport was 9.3%

(compared with 10.5% in 2022).

Annual CO2 emissions from logistics came to 22,013 tons, up 1.4% year on year. Energy consumption intensity increased

10.8% compared with the previous year, for a five-year average annual increase of 0.9%, falling short of Lion’s target averageannual reduction of 1% or more. We will continue efforts in these areas going forward.

Eco Rail Mark Certification

The Eco Rail Mark system was created by the Ministry of Land, Infrastructure and Transport tocertify companies and products that use rail freight transport for a certain portion of productshipment. Because distribution processes are typically opaque to consumers, the Eco Rail Markis a useful means for companies to indicate that they use or their products are shipped using

environmentally friendly rail freight transport.

Lion’s Eco Rail Mark certification was renewed in 2023. The certified Lion products are listed in

the Eco Rail Mark pamphlet published by the Railway Freight Association and introduced on thewebsite of the Ministry of Land, Infrastructure, Transport and Tourism.
The following four products are certified (as of November 2023).

1. Between Toothbrush

2. CLINICA ADVANTAGE Toothbrush
3. CLINICA PRO Toothpaste
4. NONIO ToothbrushEstablishing a Sustainable Logistics System and Reducing Environmental Impact through Cross-industry

Collaboration

To address to the “2024 problem” in logistics and reduce our environmental

impact, we have reassessed our packaging design for logistics resources

with four other companies in different industries, and switched to the useof trailers for transportation. By switching from individual product shipping
to palletized transport, we aim to curb loading inefficiencies.

As a result of these efforts, Lion and the other companies jointly received

the top MLIT Minister’s Award for Green Logistics Partnership in the FY2023
Excellent Logistics Partnership Commendation Program.

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Building a Logistics EDI

In the field of logistics data platforms, Lion is taking a leading role in solving logistics challenges facing the household

consumer product industry. Lion collaborated with PLANET, INC., which operates a commercial logistics electronic datainterchange (EDI), a logistics information infrastructure for the industry. Furthermore, Lion carried out demonstrations of
the use of advanced shipping notices (ASNs) to digitize receipts and simplify inspections, and is rolling out the use of ASNs

sent to wholesalers for individual delivery trucks.

We are also involved in activities to improve the efficiency and standardization of business processes at logistics sites,

including the Study Group for Logistics Productivity in the Supply Chain sponsored by the Distribution Economics Instituteof Japan, the membership of which comprises industry manufacturers and the logistics businesses responsible for theirdeliveries. We are leading the establishment of an industry-wide supply chain standard model, in cooperation with othermanufacturers and logistics businesses. Through these initiatives, we aim to improve work environments, improve laborproductivity and reduce environmental burden while building sustainable, resilient supply chains.
Aiming for inspection-free logistics using ASN

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Together with the Environment

Realizing a Resource-Circulating Society
Approach

The Lion Group is promoting various activities to realize a resource-circulating society by addressing issues such as plastic

related problems and water resource shortages.

Plastic-related problems are related to other environmental issues as well. For example, excessive plastic use increases life

cycle CO2 emissions, contributing to global warming, and improper disposal can result in marine plastics, negatively

impacting biodiversity. Because Lion manufactures and sells plastic products, it has a significant responsibility regarding
plastic-related problems.

The Group has published the Lion Group Plastics Environmental Declaration, which lays out its policy for addressing plastic-

related problems. Based on this policy, we have set targets aimed at realizing a resource-circulating society both in Japanand abroad and are continually working to resolve these issues.

Water is a resource of utmost importance and vital for all living creatures. Concerns are rising about elevated dangers ofdrought and water treatment in Japan are as consequences of global warming. To address the shortage of water resources,

we are working to reduce water usage throughout our product life cycles. As a corporation that provides products that are

helpful in daily lives, we believe it is our responsibility to reduce water usage not only in business activities, but by offering

water-saving products. Since 2010, we have been selling TOP NANOX (now NANOX one, NANOX for Washing Machines with

Automatic Detergent Dispensers), a highly concentrated liquid laundry detergent that washes away easily for one-rinse,
residue-free washing. In addition, as of 2020, our entire lineup of liquid laundry detergents can be used in single-rinse

washing. Moreover, we introduced Acron Smart Care in February 2023, a liquid detergent that eliminates the rinse stage. We

will continue to strive to reduce water usage.

* White Paper on Water Cycle FY2022 published by the Headquarters for Water Cycle Policy 〔Japanese〕

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Overview

The Lion Group promotes the recycling and effective use of plastic, water and other resources at all stages from raw material

procurement to disposal by consumers. We will continue to promote initiatives to realize a resource-circulating society.
Activities for Realizing a Resource-Circulating Society

Initiatives

Recycling Resources

Reducing Water Use

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Together with the Environment

Recycling Resources

Sustainability Material Issue 1

Sustainable Planet

Promoting Environmental Initiatives for a

Using Sustainable Materials in Containers and Packaging
Promoting the Three Rs: Reduce, Reuse, Recycle

Encouraging the Realization of a Resource-Circulating Society

Reducing Waste

Using Sustainable Materials in Containers and Packaging

Using Recycled Paper

The containers and packaging for our powder laundry detergents and other products

are made with recycled paper containing recycled pulp.

Using Recycled Plastics

Lion proactively uses recycled plastic in products and containers. Our liquid laundry

detergent bottles and toothbrush blister packs are made with plastic recycled from
disposable drink bottles(PET bottles for beverages) and other sources.

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Main Uses of Recycled Plastics
Type of plastic

Type of product
Dishwashing detergent

Polyethylene terephthalate(PET)

Liquid laundry detergent

Toothbrush
Polyethylene

Fabric softener
Liquid laundry detergent

Product name

CHARMY Magica

TOP Clear Liquid

Kaori Tsuzuku (LongLasting Frangrance)

TOP Sweet Harmony

Clinica PRO Toothbrush
Rubber Head
SOFLAN Aroma RichTOP SUPER NANOX For
Odors Ultra-jumboParts using recycled
Bottleplastic

Refill pack

Blister dome packaging
BottleRefill pack
Includes limited quantity products

Using Plant-Based Plastics in Containers and Packaging

The containers and packaging of some Lion products are made with biomass plastic, made from plant-based raw materials

such as corn and blackstrap molasses, a byproduct of refining sugarcane into sugar.
Products that utilize biomass materials

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Main Uses of Biomass Plastics
Type of plastic

Type of product
Liquid laundry detergent

NANOX one

Body wash

Hadakara Body Soap

Fabric softener

Polyethylene terephthalate(PET)

Product nameDental rinse

Parts using recycledplastic

SOFLAN AirisNONIO Mouthwash

NONIO Plus Whitening

Dental Rinse

BottleCLINICA Quick WashSYSTEMA EX Dental Rinse,
etc.

Toothpaste

CLINICA Advantage
Toothpaste, etc.

Tube

NANOX one and NANOX one

Liquid laundry detergent

BleachPolyethylene

Hand soap

for Odors

NANOX for Washing
Machines with Automatic
Detergent Dispensers, etc.
Bright STRONG

KireiKirei Medicated Hand
Conditioning Soap
Pocket Size KireiKirei

Medicated Foaming Hand
Soap

Hand sanitizer
Antiperspirant anddeodorant

Refill packKireiKirei Medicated Hand
Sanitizing (Gel Plus, Gel)

External bag

Ban Sweat-Blocking Roll-On
and Stick

Products that meet the requirements for certification by the Japan Organics Recycling Association are marked with the

Biomass Mark. For details, please visit the website of the Japan Organics Recycling Association [Japanese]

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Lion Sustainability Website 2024

Promoting the Three Rs: Reduce, Reuse, Recycle

To reduce container and packaging materials, Lion complies with the Lion eco-standard, which is designed to evaluate products over their entire lifecycles by

examining each lifecycle stage, from raw material procurement to distribution anddisposal. We are increasing the concentration of such products such as laundry

detergents, fabric softeners and dishwashing detergents to make their containers morecompact while using sophisticated design technology to make containers more
lightweight.

Lion’s Container and Packaging Material Usage (Domestic Household Products)*Until fiscal 2021, only containers and packaging materials are taken into account; starting in fiscal 2022, some product plastics are as well.

Plastic bottles can be refilled and reused. Film packaging for refill packs can beproduced using less material than product bottles, and because they weigh less andtake up less space after use, they also help reduce household waste.

Going forward, we will work to minimize the use of plastic materials by both reducing
and reusing.

Lion’s Use of Plastic for Packaging and Reduction Effects

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Lion Sustainability Website 2024

Efforts are made to ensure that the products offered by the Group are recycled in an appropriate manner after use.

Recycling of Used Containers in Accordance with the Containers and Packaging Recycling

SystemBeing a specified business entity operating under the Containers and Packaging Recycling System, we contribute recycling

operation contract fees. For the most recent status of operations under this system, please visit the Japan Containers andPackaging Recycling Association website.

The Japan Containers and Packaging Recycling Association

Amount Contributed to The Japan Containers and Packaging Recycling Association (After payment)*Total contracting fees for Lion Corporation, Lion pet Co., Ltd. and Lion Dental Products Co., Ltd. is settled and finalized in the year following
the year of the contract. Because of this, cost announcements are made two years after incurrence.

Promoting Plastic Product, Container and Packaging Resource Recycling

Aiming to achieve a continuous cycle of plastic use in society, and to go beyond recycling in existing social infrastructures tohigher quality recycling, Lion is conducting pilot testing for the recycling of used products and containers and packaging incooperation with household product manufacturers, recyclers, retailers and local governments.

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Recyclable items
Toothbrushes

Activity nameMain Activities

Toothbrush recycling
Joint municipal toothbrushrecycling

RecyCreation
Refill packs

Kobe Plastic Next: Joining
Forces to Recycle Refill
Packs

Area

Over 1,000 locations
nationwide

Sumida-ku, Itabashi-ku andTaito-ku

Used Bottles Collaboration

Bottles

governments, andcompanies

Bottle Recycling Project for

TerraCycle
Takaroku Shoji Co. Ltd.

Ito-Yokado’s Hikifune Store

Kao(parts of Tokyo and Saitama

Welcia Pharmacy Store

Welcia Pharmacy stores
Prefecture)

75 stores and 3 otherfacilities in Kobe City

Making New Bottles fromamong consumers, local

Main partners

Higashiyamato City, Komae
City, Kunitachi City

Everyone

Ito-Yokado

Hamakyorex

Kobe City

Household productmanufacturers
Distributors

18 recycling companies
3 household productmanufacturers

Veolia Japan G.K.
digglue Inc.

As of May 31, 2024

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Promoting Circulation of Plastic Container and Packaging Resources through Partnerships
Kao and Lion are reaching out beyond their corporate groups in an effort to recycle plastic refill containers andpackaging (film packaging), aiming to realize a resource-circulating society.

To accelerate the adoption of recycling, building basic systems for resource collection and developing recycling

technologies are indispensable. At the same time, it is necessary to change mindsets across society incooperation with stakeholders, including consumers, with regard to, for example, sorting plastic packaging
after product use.

To this end, we are conducting the following four activities.

・ Studying ways to sort and collect plastic film packaging in cooperation with consumers, government agencies
and retailers.

・ Creating recycled materials and packaging quality design with consideration for usability in a wide range of
products, ease of sorting and collection by consumers, and potential for use across companies or industries.

・ Studying ways to jointly use materials that are collected and recycled.
・ Engaging in promotional and educational activities that will foster greater understanding and cooperation
regarding recycling among consumers.

Through the above activities, we are working to improve the economic efficiency of collection and recycling as

a whole. First, we are launching collaborative RecyCreation* activities to sort and collect film packaging andraise awareness in cooperation with local residents. By doing so, we are sharing information about thetechnological hurdles to plastic film packaging recycling.

These RecyCreation activities, along with related companies, have received the following commendations.
News Release: Kao and Lion Awarded the New Selection Committee Chairman’s Commendation in the Good Practices of Consumer-Oriented Management Awards [Japanse]

News Release: Lion, Kao, Ito-Yokado, Welcia Pharmacy, and Hamakyorex Jointly Receive the Minister of Env
ironment Award in the 6th Japan Open Innovation Prize [Japanese]* “RecyCreation” denotes upcycling through which more enjoyable and improved products are developed and resulting in newvalue creation, rather than recycling materials for the purpose of reproducing the same types of materials. The concept of thisinitiative is “Throwing it away after use. We want to change this common practice.”

We have released a concept film presenting these initiatives

Youtube (Japanese)

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In-store Collection of Used Refill Packs—Recycling Field Testing
RecyCreation activities are under way at Ito-Yokado’s Hikifune Store (Sumida-ku, Tokyo) and 31 Welcia

Pharmacy stores with the aim of field testing the sorted collection of film packaging from used refill packs.

Under this initiative, a special collection box has been installed at the store to collect customers’ used refill

packaging for such products as detergents and shampoos.

The process of recycling used refill packs in the RecyCreation initiative

Overview of the Field Test

・ Purpose

To examine processes for the sorted collection of used refill packs in collaboration with consumers andretailers.

・ Content

To enhance consumers’ enthusiasm for recycling through RecyCreation. Through the test, we are collecting
used refill packs for such products as detergents and shampoos at Ito-Yokado’s Hikifune Store and Welcia
Pharmacy stores, studying effective collection systems and developing new recycling technology.
・ Implementation period
Starting from October 30, 2020

・ Location of collection box for used refill packs

Ito-Yokado’s Hikifune Store (Sumida-ku, Tokyo) and Welcia Pharmacy
stores (Tokyo and parts of Saitama) We will gradually expand thisinitiative to more locations.

・ How to prepare and return a pack for collection〇〇〇〇

Cut along the top of the pack to open it

Rinse out the inside of the pack twice with water
Shake off excess water and let dry
Put in the collection box

We have released a concept film of how to wash a used refill packYouTube (Japanese)

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Demonstration of the Horizontal Recycling of Refill Packs
On May 29 2023, the collaboration launched a recycled plastic version of the XXL refill pack for Lion’s TOP

SUPER NANOX For Odors, a highly concentrated liquid laundry detergent. The materials used to create the refill

pack consisted in part of recycled materials from used refill packs that had been collected. (Limited quantities

available.)This packaging incorporates 9% recycled materials derived from factory waste and 1% derived from recycledconsumer products.

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About the Toothbrush Recycling Program
Program participation is very easy and free.

・ Register an account as an individual, school or other organization in advance・ Set out collection boxes and collect used toothbrushes
・ A designated carrier will pick up the box by the second business day after a collection request is made・ The toothbrushes will be reborn as new plastic products, such as planters, instead of being sent to a landfill
or incinerator

Participants receive points according to the weight of the toothbrushes that they send. The points can beexchanged for plastic products produced through TerraCycle's recycling program or donated to a charity of theparticipant’s choice.

Toothbrush Recycling Program

Using Recycled Materials from Toothbrush Recycling Program to Make Cat Litter Boxes

Domestic Group company Lion Pet Co., Ltd. is currently rolling out the Love Cats Love Earth Sakura Project,through which it donates cat litter boxes and cat litter sets to support people fostering rescue cats. The cat litter

boxes are made from 10% recycled plastic from toothbrush recycling.

Image

Encouraging the Realization of a Resource-Circulating Society

The Group has a wide array of frameworks in place and promotes activities to realize a resource-circulating society, a goal it

cannot achieve on its own.

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Groups, Activities and Initiatives Encouraging the Realization of a Resource-Circulating Society

Name of Group or Organization

Title

Japan Clean Ocean Material Alliance

CLOMA

Circular Partners〔Japanese〕

CPs

Plastic Packaging Recycling Council〔Japa
nese〕

PPRC

Ecosystem Society Agency〔Japanese〕

ESA

Main Goal of Activities

Resolving problems regarding plastic waste in
the oceanPromoting collaboration of industry,

government and academia to create a circular
economyPromoting recycling of plastic packaging bycollaborating with residents and local
governments

Working with local governments andbusinesses to generate social value

Unveiling “Platto Search,” an Example of an Environmentally-Conscious Plan

We have published a development case for an environmentally conscious package precedent search system known as“Plastic and Search” that the Plastic Packaging Recycling Council manages.

Environmentally-Conscious Package Precedent Search System “Plastic and Search”〔Japanese〕

Reducing Waste
Zero Emissions from Operating Sites (Domestic)

Lion’s four domestic plants all achieved zero waste emissions*1 in 2002. All of Lion’s operating sites,*2 including research

institutes and offices, achieved zero waste emissions in 2017.

*1 Our definition：The waste recycling ratio is 99% or more, excluding recycling residues*2 Chiba Plant, Odawara Plant, Osaka Plant, Akashi Plant, Hirai Office Site, Sapporo Office, Sendai Office, Headquarters/Tokyo

Office(Headquarters from April due to office relocation), Nagoya Office, Osaka Office, Fukuoka Office, Lion Chemical Co., Ltd. Fine Chemical

Production Site, Lion Chemical Co., Ltd. Oleochemical Production Site, Lion Specialty Chemicals Co., Ltd. Yokkaichi Plant, Lion Specialty
Chemicals Co., Ltd. Ono Plant

ESG Data

Environment

Waste Generation (Overseas)

We will continue to advance initiatives to reduce waste going forward.
ESG Data

Environment

Information Regarding the Maintenance and Management Status of Industrial Waste Treatment Facilities
Maintenance and management information based on the Waste Management and Public Cleansing Law (Article 15-2-3,

Paragraph 2) is made public.

Click here to see the maintenance and management status of Chiba Works.

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Together with the Environment

Reducing Water Use

Sustainability Material Issue １ Promoting Environmental Initiatives for a
Sustainable Planet

The Lion Group is working to reduce water use in line with the LION Eco Challenge 2050, a set of long-term environmental

objectives formulated in 2019 with the aim of realizing environmental sustainability. In 2019, Lion began calculating water
use throughout the supply chain in order to understand water use throughout product lifecycles—from raw material

procurement to production, transport, use and disposal. Total water use throughout the lifecycles of Lion’s products in 2023

was approximately 2.2 billion m3.

Breakdown of Water Use over the lifecycles of Lion Products** Scope: Lion and domestic and overseas consolidated subsidiaries, January‒December 2023.

At 74.0%, the product lifecycle stage that accounted for the largest portion of total water use in 2023 was use by consumers.

This is because many Lion Group products, such as laundry detergents, are used with water for washing. The Lion Group willcontinue to work with consumers to reduce water use throughout product lifecycles by providing environmentally friendly
products and services that help save water and promoting the formation of environmentally friendly habits.

Water Use and Wastewater Discharge in Business Activities (Domestic andOverseas)

The Lion Group continuously monitors water usage (water withdrawal) and wastewater discharge in its business activities as

it strives to alleviate environmental impact and reduce water usage through recycling. We have been implementing ongoingmeasures to reduce water used in cleaning processes. As part of these efforts, we have been operating industrial wastewater

recycling facilities at the Chiba Plant since 2016. In addition, we use limited quantities of rainwater collected from the plantroof for cooling and for watering flowerbeds.

Identification and Evaluation of Water-Stressed Regions

The Group performs water stress evaluations for all its business locations using Aqueduct, a set of tools developed andannounced by the World Resources Institute. We consider the regions in which our business locations are located to bewater-stressed if their baseline water stress (one of the indicators outlined by Aqueduct) is designated “extremely high.” The

results of these evaluations showed that the Group has two locations in water-stressed regions, and their water intake was

2% of the Group’s total.

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Water Usage (Water Withdrawal) in Business Activities
Water Usage (Water Withdrawal) by Source
Wastewater Discharge in Business Activities
Wastewater Discharge by Destination

The Chiba Plant’s Wastewater Recycling Facilities

The Lion Group manufactures and sells products that are closely tied to water usage. Moreover, Lion’s plants use a great

deal of water in manufacturing processes to clean facilities and in heating and cooling equipment. Recycling wastewater

after use can thus produce a significant water-saving effect. To this end, Lion introduced a wastewater recycling system at

the Chiba Plant—which uses the most water among Lion’s plants—in 2016 that has been in continuous use since installation.

The greatest feature of this system was the adoption of new wastewater recycling facilities (①). Thanks to these facilities, weare now able to recycle wastewater from production processes that was previously discharged into the environment.

Furthermore, we installed new wastewater treatment facilities (②) that enable greater purification of water from employee

sanitary facilities and cleaning facilities than was previously possible, better removing nitrogen, which is a source of marine
eutrophication.

In 2023, we conserved about 180,000 tons of water annually compared to 2010. That amount is equivalent to about 20% of

the total water usage of all domestic operating sites in 2023.

The Chiba Plant’s Wastewater Recycling System

The Chiba Plant was the first household product factory in Japan to recycle wastewater. In 2017, the plant received the New

Technology Encouragement Award*1 from the Japan Society on Water Environment and the Responsible Care Award*2 fromthe Japan Chemical Industry Association.

*1 In June 2017, the development of the Chiba Plant’s wastewater recycling system was recognized with the New Technology Encouragement
Award from the Japan Society on Water Environment, Japan’s largest academic society related to protecting the aquatic environment. Thisaward is given for research related to aquatic environments or to individuals or organizations that have devised innovative, promisingaquatic environment technologies from the perspective of social contribution.

The Japan Society on Water Environment New Technology Encouragement Award [Japanese]*2 In May 2017, the Chiba Plant received the 11th Responsible Care Award from the Japan Chemical Industry Association for its initiatives toprotect the aquatic environment and contribute to the local community. Since the start of its operations, the Chiba Plant has continuously

implemented activities to protect the aquatic environment.
Lion’s Responsible Care Activities

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Reducing Water Usage During Product Use

The Lion Group is working to reduce water usage throughout the lifecycles of its products. To reduce water usage during

product use—the product lifecycle stage that accounts for the greatest portion of water use—we provide environmentallyfriendly products that help save water. For example, since 2020, all Lion liquid laundry detergents can be used with just one

rinse cycle.In 2023, we also developed and marketed Acron Smart Care, a zero-rinse laundry detergent.

Under LION Eco Challenge 2050, a set of long-term environmental objectives, the Group set the target of reducing water

usage 30% per unit of net sales across product lifecycles by 2030 in comparison with 2017 levels. In 2023, lifecycle water
usage was reduced 13% per unit of net sales in comparison with 2017.

Going forward, we will continue to develop products that help reduce water usage during product use and promote

environmentally friendly habits as we strive to reduce the environmental impact of households.

Development of Zero-rinse Laundry Detergent Acron Smart Care(Lion Integrated Report 2023 p.48)

Breakdown of Water Use over the Lifecycles of Lion Products

Water-Saving Products (Domestic)

NANOX one

These laundry detergents rinse away easily, enabling one-rinse washing.

Acron Smart Care

A delicate-safe detergent that contains an agent that enhances detergency, allowing

zero-rinse washing that leaves behind a relatively low amount of surfactant. (Thisproduct’s effects on skin have been tested under the supervision of dermatologists.)

CHARMY Magica Quick Dry + (“Plus”) Antibacterial

These nano-cleansing dishwashing detergents make stubborn grease slide off dishes
like water, helping save time and water when washing up.

Ofuro no LOOK (Bath cleaner)

Bathroom cleaner compounded with quick-rinsing component to clean stains with fast

defoaming action.

Look Plus Bath Antimold Fogger

A fumigation-type fungicide that employs a silver-ion fog to kill black mold spores
throughout the bathroom, helping prevent the growth of mold and reducing waterused during post- mold removal and cleansing rinses.

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Soft in 1 Shampoo

A two-in-one conditioning shampoo that leaves hair feeling smooth and moisturized

without an extra conditioning and rinse stage.

Look Plus Mame Pika Toilet Cleaner

A toilet cleaner that achieves a water-free clean.

Lion Eco Pamphlet [Japanese]

Lion Eco-Products

Water-Saving Products (Overseas)

Lion sells NANOX one and CHARMY Magica through Lion Corporation (Singapore) Pte Ltd, Lion Daily Necessities Chemicals(Qingdao) Co., Ltd. and Lion Corporation (Hong Kong) Ltd. and Lion Home Products (Taiwan) Co., Ltd., helping to save water.

NANOX oneTOP SUPER NANOX

at Lion Corporation (Singapore)
Pte Ltd.

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

TOP SUPER NANOXCHARMY Magica Quick Dry +(“Plus”)

at Lion Corporation (Hong Kong)Ltd.

at Lion Corporation (Hong Kong)Ltd.

NANOX one

CHARMY Magica Quick-Dry +(“Plus”) Antibacterial

at Lion Home Products (Taiwan)Co., Ltd.

at Lion Home Products (Taiwan)Co., Ltd.

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Together with the Environment

Harmonizing with Nature (Biodiversity)
Approach

Lion has long taken the lead in addressing problems in the aquatic environment, such as stream foaming andeutrophication linked to the use of detergents, considering biodiversity at each stage from raw material procurement todisposal by consumers. To continue benefiting from the value provided by biodiversity into the future, we must work withlocal communities to protect biodiversity and utilize such value in a sustainable, non-depleting way. Furthermore, it isimportant that we contribute to the realization of a society in harmony with nature by encouraging changes in consumer

lifestyles through biodiversity-friendly products.

To this end, Lion will contribute to the development of a sustainable society through its businesses by determining which
natural resources are used in business activities and the impacts on biodiversity throughout the value chain. Based on thisinformation, Lion will implement biodiversity conservation activities that help reduce risk and expand opportunities. Also,

by having every employee participate in biodiversity conservation activities as part of our environmental education efforts,

we are spreading awareness of this important issue throughout our operating sites.

1960s Stream Foaming
The synthetic detergents of thetime were slow to break down,
leading to foam that covered
streams. Lion switched to readily
biodegradable detergent
ingredients.

1970s Eutrophication
Aquatic eutrophication led toalgae blooms and otherproblems. One cause of thiseutrophication was thephosphates then used indetergents. Lion led the way,
creating phosphate-free laundry
detergents ahead of its
competitors.

1980s Onward Global
Environmental Issues
Global-scale environmental
issues received increased
attention, leading to growing
calls for consideration of
resources and environmental
burden. Lion is proactively
advancing such efforts asenhancing the detergency of its
cleaning agents to decrease theamount of product needed,
developing water-saving
products and utilizing plantbased raw materials.

Biodiversity Policy

The Lion Group has established a Biodiversity Policy as part of its Environmental Policy. Based on global conservation
movement, such as that promoted by the Kunming-Montreal Global Biodiversity Framework, the Group will strive tounderstand and disclose risks associated with biodiversity loss as well as how its entire value chain both depends on andimpacts biodiversity. The policy also promotes the establishment of initiatives to stop biodiversity loss as well as to restore

it.

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Overview

Overview of Lion’s Biodiversity-Friendly Business Activities* Watershed: A range of ecosystems, including forests, rivers, domestic woodlands, tidal flats and beaches, that is connected by water.

Initiatives

Biodiversity Conservation Initiatives

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Together with the Environment

Biodiversity Conservation Activities
Activities at Operating Sites

Environmental Impact Surveys of Surfactants

Lion conducts biodiversity conservation activities at all of its operating sites. Its plants, in particular, have expansive

premises and handle a wide range of raw materials and thus have the potential to impact the nearby natural environmentand communities. We therefore work to reduce the impact caused by plant operations and, in cooperation with local NPOs

and other organizations, proactively implement biodiversity conservation activities in the watersheds where plants arelocated so that the benefits of biodiversity can be sustainably enjoyed throughout local communities.

Biodiversity Conservation Initiatives [Japanese]
Biodiversity Conservation Initiatives
Lion and Biodiversity

Activities at Operating Sites
Basic Principles of Biodiversity Conservation Activities at Operating Sites

Based in part on the Ministry of Environment’s Guidelines for Private Sector Engagement in Biodiversity (2nd Edition), we

have defined the following four key principles for biodiversity conservation activities at operating sites.

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Below are some of the biodiversity conservation activities being implemented at Lion’s operating sites. We select activities

to pursue based on the following considerations:Improving wildlife-friendly environments in the rivers and lakes of the watersheds that are connected to our plants via
business activities or products as well as downstream coastal areas

Providing habitats for creatures that are disappearing and breeding and raising them with the aim of returning them totheir natural habitats
Replicating natural habitats lost in the nearby area on operating site grounds and maintaining them as biotopes

Cleaning up and improving business sites, conducting regular assessments of wildlife living there and using business sites
as a place for biodiversity education
Working in partnership with other stakeholders, such as local residents, external organizations and local authorities

Biodiversity Conservation Initiatives

Biodiversity Conservation Activities at Operating Sites Across Japan [Japanese]
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Lion and Biodiversity

Lion provides a wide variety of products that support daily living based in significant part on value derived from nature. In

addition to striving to use resources in a sustainable manner, Lion is engaged in biodiversity conservation, aiming toproactively contribute to the realization of a society in harmony with nature.

Sustainable palm oil procurement

Biodiversity Conservation Initiatives (operating sites)

Water Quality-Conscious Production Activities
Reducing Waste

Wastewater Recycling Facilities

Lion products

Lion Forest in Yamanashi

Promoting the 3Rs and Renewable Materials

Developing water-saving detergents
Evaluating environmental impact

Customers [Japanese]

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Environmental Impact Surveys of Surfactants

Lion evaluates and confirms the environmental safety of its products during product development, because almost all Lion

products are discharged into rivers and streams after their use. Furthermore, Lion takes part in the Japan Soap and Deterge

nt Association’s

measurement of the concentrations of four types of surfactants in four river systems near Tokyo andOsaka and evaluation of related ecosystem risk, which it has conducted four times a year since 1998, to confirm that said

surfactants are not negatively impacting the environment. The measurements to date have consistently found surfactant

concentrations below the maximum level thought to have no impact on aquatic ecosystems, indicating that there is little
environmental impact from detergents.

Evaluating and confirming safety is not a task for Lion alone. In addition to gathering and utilizing the latest technological

data from in and outside Japan, Lion is working to provide data to other users in order to enhance safety evaluation

technologies.

River water sample collection points

Supporting Young Researchers

As part of efforts to protect water resources, in 2009, Lion established the Lion Award, which is bestowed through the Japan

Society on Water Environment (JSWE). By using the award to recognize outstanding research activities, we are supporting
young researchers.

Support for Japan’s largest academic society focused on protecting the aquatic environment

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Together with the Environment

Environmental Communication
Approach

We at Lion believe it is our solemn responsibility to provide excellent customer experiences in the areas of health, comfort

and cleanliness while protecting the global environment—the foundation of health and daily living—in accordance with ouraim of “Becoming an advanced daily healthcare company.” By using various means of communication to convey ourapproach to addressing environmental issues, related initiatives and the environmentally friendly features of our products,
we promote the formation of eco-friendly living habits.

In addition, we strive to foster environmental awareness among employees through such means as educating employees,

starting with new hires.

Overview

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Lion Sustainability Website 2024

Initiatives

Lion believes that environmental communication with consumers plays an important role. In 2023, we exhibited our

initiatives and fostered contact with stakeholders at environmental events.

Events, Websites, and Building Relationships

Environmental Communication throughwith Communities and External Organizations

Activities

Environmental Communication throughAcademic Support

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Together with the Environment

Events and Building Relationships with Communities andExternal Organizations
EventsThrough participation in environmental exhibitions and other events in the regions where its business sites are located, Lion

seeks to communicate to consumers ways they can be more environmentally friendly both in the course of daily life andthrough comfortable, clean living using Lion products. In 2023, Lion exhibited at Environment Fair 2023 (at Edogawa Ward
Cultural Center, Tokyo) and Eco Messe in Chiba (at Makuhari Messe International Exhibition Hall).

Environment Fair 2023

Eco Messe in Chiba

We also introduced our toothbrush recycling activities by exhibiting at events held in the Taito and Itabashi wards, Tokyo,

where used toothbrushes are collected.

Taito Ward, Tokyo

Itabashi Ward, Tokyo

Building Relationships with Communities and External Organizations

Lion participates in the activities of the Japan Chemical Industry Association Responsible Care (RC) Committee, which aims
for constant improvement in the environmental performance and safety of chemical substances throughout their life cycles,from development through disposal.

Japan Chemical Industry Association

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Responsible Care* Activities at the Chiba and Osaka Plants

As a member company of the Japan Chemical Industry Association RC Committee, Lion proactively engages in dialogue withlocal communities. Each plant provides opportunities for dialogue suited to the characteristics of its local community topromote communication with community members.

14th Responsible Care Sakai/Senboku Regional Dialogue held in February 2024

The 14th Responsible Care Chiba Regional Dialogue was held in February 2023 via written communication in the form of
booklets to curb the spread of COVID-19. Our Chiba Plant participated and cooperated in the meeting from the planningstage. Booklets were distributed with information regarding SGDs supplied by companies in the Chiba area. The booklet was

mailed to neighborhood associations, governments, NPOs and other organizations along with a survey to collect opinions.
We plan to take the survey's findings into consideration in our future activities.

In addition, the 14th Responsible Care Sakai/Semboku Regional Dialogue was held in February 2024—the first in-person
edition of the discussions in four years, with neighborhood associations, neighborhood association councils, andgovernment officials participating following the end of the COVID-19 pandemic. On the day of the event, our environmental

manager reported on the environmental initiatives of Lion and Osaka Plant. In addition, the opinions of event participants
were collected through a survey and will be reflected in our future efforts to continuously improve our environmental
initiatives.

Moreover, in May 2017, the Chiba Plant received its 11th Responsible Care Award from the Japan Chemical Industry

Association for its initiatives to protect the aquatic environment and contribute to the local community. Since the start of its

operations, the Chiba Plant has continuously implemented activities to protect the local aquatic environment from waterrelated risks. The plant’s efforts to purify industrial water for various applications, recycle wastewater used in industrial
processes and manage wastewater according to standards stricter than those required by law have led to reductions inwater usage and discharge volumes and the conservation of water quality. The award also commended the plant forproviding education about the importance of water through initiatives with local children and plant tours.

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11th Responsible Care Award Plaquefrom the Japan Chemical Industry Association* Responsible care refers to voluntary management activities performed by companies that handle chemical substances, encompassing theassurance of protections for the environment, safety and health throughout all processes of chemical substance development,

manufacturing, distribution, use, final consumption, disposal and recycling as well as the disclosure of the results of such activities anddialogue with society.

Support for Environmental Organizations
Lion supports the following organizations.

Sea Turtle Associationof Japan [Japanese]

Japan Society on
Water Environment

OISCA

Lion is a member of the following organization.

Eco First Companies
Association [Japanese]
The following organizations, of which we are members, have our support.

30by30 Alliance for
Biodiversity [Japanese]

Keidanren Initiative for
Biodiversity Conservation

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Together with the Environment

Environmental Communication through Activities
Lion Forest in Yamanashi

In October 2006, we started Yamanashi Prefecture’s first Company Forest Promotion Project through a collaborative

agreement with Yamanashi City. This program based in a forest owned by the city, is aimed at fostering environmental

awareness among Lion employees by providing experience in the maintenance of forests, which constitute a water resource.

Employees engage in forest maintenance as a part of their training while building relationships with members of the local
community.

The Lion Forest in Yamanashi [Japanese]

Toothbrush Recycling Program

The Toothbrush Recycling Program is a program to collect used toothbrushes, which are commonly just thrown away as

non-recyclable garbage, and recycle them into planters and other new plastic products. Lion launched the program, the firstof its kind in Asia, in 2015, in cooperation with TerraCycle Japan.

Toothbrush Recycling Program [Japanese]

Activities

Participants collect used toothbrushes in various ways. Some set up collection boxes at kids’ centers, day care centers andkindergartens, while others collect toothbrushes as part of classes at schools, teaching children about the significance ofthe program.

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The Recycling Process

Collected used toothbrushes go through several steps in the process of being recycled into planters.

Get Involved

Sign up to participate through this website [Japanese]awarded for toothbrushes collected.

. The website offers further details about the program and points

Lion Chura Action

Lion Chura Action is a project to support the eco-activities of children nurturing the future of Okinawa, aimed at protecting

and developing the rich ecosystems of the region and achieving lasting harmony with nature.

Lion Chura Action [Japanese]

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Rainwater Utilization Ideas Contest

Lion held the Rainwater Utilization Ideas Contest for elementary and middle school students across Japan from 2011 to

2018. The goal of this was to help children realize the importance of water by considering how to use rainwater, a familiar
water resource.

2018 Rainwater Utilizatio n Ideas Contest Results[Japanese]

2017 Rainwater Utilizatio n Ideas Contest Results[Japanese]

2016 Rainwater Utilizatio n Ideas Contest Results[Japanese]

2015 Rainwater Utilizatio n Ideas Contest Results[Japanese]

2014 Rainwater Utilizatio n Ideas Contest Results[Japanese]

2013 Rainwater Utilizatio n Ideas Contest Results[Japanese]

2012 Rainwater Utilizatio n Ideas Contest Results[Japanese]

2011 Rainwater Utilizatio n Ideas Contest Results[Japanese]

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Together with the Environment

Environmental Communication through Academic Support
The Lion Award—Supporting Aquatic Environment Student Research

To motivate and support young researchers working in areas related to the aquatic environment, in 2009 Lion created the

JSWE-LION Best Student Poster Presentation Award (the “Lion Award”), bestowed through the Japan Society on Water
Environment (JSWE) in recognition of outstanding research activities.*

In 2023, 19 students were chosen to receive the Lion Award, one of whom received the Grand Prize, by the 58th Annual

Conference of the JSWE.

* The award is bestowed in recognition of outstanding poster presentations at the JSWE’s annual conference.
Eligible persons: Undergraduate university students, technical school students, junior college students.

Selection method: Based on the votes of regular and corporate JSWE members, winning presentations are selected by the Awards

Committee of the Board of Directors.

The Lion Award (Japan Society on Water Environment)

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Together with the Environment

Management of Chemical Substances
ApproachChemical Substance Management Policy

Overview

Chemical Substance Management Initiatives at Each Product Lifecycle Stage
Initiatives to Reduce or Eliminate Chemical Substances of Concern

ApproachChemical substances are indispensable for people to lead comfortable and fulfilling lives. Failure to properly manage

chemical substances, however, can result in accidents that put human health and ecosystems at enormous risk. In addition

to compliance with related laws and regulations, the Lion Group strives to ensure the strict management of chemical

substances at all stages from product development to use and disposal in accordance with its own independent standards.

Chemical Substance Management Policy

Based on the spirit of the Lion Group Charter for Corporate Behavior, the Group has established the Chemical Substance Ma

nagement Policy. This policy was formulated in light of international trends in chemical substance management and isaligned with the Strategic Approach to International Chemicals Management (SAICM). The policy stipulates that we will

strive to implement sound management of chemical substances throughout their lifecycles, minimize significant adverse
impacts on the environment and human health, and promote communication.

Overview

Group-Wide Management of Chemical Substances

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Chemical Substance Management Initiatives at Each Product Lifecycle Stage
1. Product Development

Selection of Chemical Substances for Use in Products

The types and amounts of chemical substances used in products are determined at the product development stage, withconsideration given not only to enhancing product performance, but safety and environmental impact.
Safety of Raw Materials and Ingredients

2. Chemical Substance Registration and Notifications

Japan: Complying with the Act on the Evaluation of Chemical Substances and Regulation of

Their Manufacture, etc.

Based on the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., Lion notifies therelevant authorities of the use classifications and volumes of all the general chemical substances and priority assessment

chemical substances it manufactures or imports (with exceptions based on the provisions of the Act, such as for substances

manufactured or imported in quantities of less than one ton per year).As needed, our chemicals departments also notify therelevant authorities of the use classifications and volumes of small-volume and low-volume new chemical substances it

manufactures or imports. We will continue to gather information about the volumes and uses of manufactured or imported

chemical substances and file proper notifications.

EU: Complying with REACH

Our chemicals departments register chemical substances as required under the EU’s REACH*l chemical substancemanagement system.

*l REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals

South Korea: Complying with K-REACH

Our chemicals departments and Lion Corporation Korea pre-register and register chemical substances under K-REACH.*2*2 K-REACH: The common name for South Korea’s Act on the Registration and Evaluation of Chemicals

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3. Production

Going forward, calls for the improvement and reinforcement of chemical substance management will grow. Accordingly, we

aim to continue as well as to step up the filing of proper notifications and management of emissions volumes as required

under volatile organic compound (VOC) regulations, the Water Pollution Prevention Act and the Act on the Assessment of
Releases of Specified Chemical Substances in the Environment and the Promotion of Management Improvement. 2023’s
data will be published soon.

Management of Total PRTR-Designated Substance Emissions

The PRTR (Pollutant Release and Transfer Register) system is a scheme for collecting, compiling, and publishing data on the

degree to which a wide variety of potentially harmful chemical substances are released into the environment from whatsources, or are transported off of production sites through waste disposal.

The Company’s emissions of PRTR-designated substances have remained at approximately 2 tons since 20l9.
2022 PRTR-Designated Substance Emissions Data for Production Sites in Japan

PRTR-Designated Substance Emissions (Domestic)

PRTR-Designated Substance Emissions

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Air Quality-Conscious Production Activities

Lion implements initiatives to reduce emissions of chemical substances that cause air pollution, including nitrogen oxides(NOX), sulfur oxides (SOX), particulate matter and VOCs. The Air Pollution Control Law designates emissions standards bytype of substance and by type and scale of emitting facility, and many regional governmental bodies have establishedadditional regulations by ordinance. In addition to complying with such laws and ordinances, each plant has formed strict

agreements with local municipalities and established strict voluntary standards, in accordance with which we strive toprevent pollution. Furthermore, we are working to reduce emissions by such means as improving the efficiency of
production processes and utilizing environmentally friendly equipment, such as nitrogen and sulfur scrubbers.
Emissions of Nitrogen Oxides (NOX), Sulfur Oxides (SOX) and Particulate Matter

VOC Emissions

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Water Quality-Conscious Production Activities

A maximum limit on COD*l of l60mg/L (and a daily average of l20 mg/L) has been set by law as a uniform standard within

environmental standards related to water pollution per the Water Pollution Prevention Act and Sewerage Act. Lion

meticulously complies with these regulations in its business activities. Furthermore, Lion aims for even stricter wastewater
quality management, and some of our operating sites have formed agreements with local governments to maintain a COD
limit stricter than the uniform standard. By stabilizing the operations of the wastewater treatment facility, performing

regular maintenance and improving treatment methods, we are working to further reduce COD in wastewater emissions.
COD in Business Activities*l COD

Chemical oxygen demand. An indicator of water contamination. Indicates the amount of oxygen that will be consumed in the oxidizationand decomposition of the organic matter content of the water.

Utilizing SDSs

Lion prepares safety data sheets (SDSs)*2 on its chemical products and provides them to its customers. We also receive SDSs

on all the raw materials we use from our suppliers. These SDSs are listed in a database to be used effectively.
*2 SDSs

Safety data sheets. Documents providing information about the environmental impact of, safety precautions regarding and the appropriate

handling of chemical products, aimed at preventing accidents caused by chemical substances.

4. Transportation

Provision of Safety Information during Transportation

In case of an accident during the transportation of raw materials or intermediate products, Lion provides information tocarriers about emergency response by distributing and attaching yellow cards and container yellow cards* to shipments.
* Yellow cards and container yellow cards

Yellow-colored emergency contact cards providing information about the properties of and emergency response methods regarding

chemical substances in case of leaks of other issues during transportation. Yellow cards are for carriers to keep with them duringtransportation, while container yellow cards are attached to the containers in which chemical substances are stored. Both are preparedbased on voluntary industry standards determined by chemical companies.

5. Use and Disposal

Environmental Impact Surveys

After being used, the surfactants in detergents and other products are discharged into the environment. Four times a year,

Lion takes part in the Japan Soap and Detergent Association’s environmental monitoring and risk assessment of four typesof surfactants in rivers near Tokyo and Osaka in order to ensure that the impact of these substances on local ecosystems is
minimal.

Environmental Impact Surveys of Surfactants

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6. Post-launchManaging Chemical Substances in Products

Since January 20l8, Lion has been rolling out a Management System for Information on Chemical Substances at its

purchasing departments and research and development sites, including those of domestic affiliated companies, to reinforce
the proper use of chemical substances. We use this system for the management of raw materials and the chemical

substances contained in products.

The system comprises a database of raw materials and product formulation data, a database of regulatory data, andproduct formula development support functions. The adoption of the system has reinforced our framework for ensuring
legal compliance regarding chemical substances used in products during product development across all our businessfields. In addition, the system’s accumulated data allows employees to instantly search through the chemical substances

contained in products that have been released. This has helped enhance data management, secure traceability andreinforce our ability to ensure compliance.

In addition, as a member of the Joint Article Management Promotion-consortium (JAMP), we ensure that our chemicals

departments provide customers with information on the chemical substances contained in products using JAMP’s

chemSHERPA common format.*l We also provide information on REACH SVHCs.*2*l chemSHERPA: A common scheme for the transfer across a supply chain of information about chemical substances contained in products.

*2 SVHC (substances of very high concern): Substances that are candidates for inclusion in REACH Annex XIV as substances subject toauthorization. “Authorization” here refers to that which is indicated in the name REACH, which stands for Registration, Evaluation,
Authorisation and Restriction of Chemicals.

Management System for Information on Chemical Substances Diagram

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Initiatives to Reduce or Eliminate Chemical Substances of Concern
Regarding Nonylphenol Ethoxylates (NPEs)

In 202l, the use of nonylphenol ethoxylates (NPEs) in the EU was restricted by EU REACH.*l Furthermore, Japan is set todesignate NPEs as Class II Specified Chemical Substances under Japan’s Act on the Evaluation of Chemical Substances andRegulation of Their Manufacture, etc. in 2024. Lion has already discontinued the use of NPEs and completed the process of

replacing them with substances that have a lower environmental impact.

Regarding Perfluorooctanoic Acid

The restriction of perfluorooctanoic acid (PFOA) was declared under the POPs Convention*2 in 20l9. Furthermore, Japan

designated PFOA a Class I Specified Chemical Substance under the Act on the Evaluation of Chemical Substances andRegulation of Their Manufacture, etc. in 202l, with its manufacture and import being prohibited in principle. In response tothis, Lion conducted a survey using the Management System for Information on Chemical Substances and an investigationof raw material manufacturers, thus discovering that some raw materials in our chemicals department contained PFOA as
an impurity. However, we have completed the process of replacing such raw materials with those that do not contain PFOA

prior to the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc. coming into effect.
*l REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals*2 The Stockholm Convention on Persistent Organic Pollutants (POPs)：A multilateral environmental agreement that aims to eliminate or
restrict the production and use of persistent organic pollutants.

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Together with the Environment

Environmentally Friendly Technologies in the Chemicals
Business

Products Made with Sustainable Resources

The Lion Group uses natural plant-derived oils, such as palm oil and coconut oil, as raw materials in its products with an eye

to making effective use of renewable resources.

Products That Contribute to Energy Saving

Conductive plastic that contributes to weight reduction and fuel economy improvement as a substitute material for metalparts in vehicles

Products That Contribute to the Preservation of the Natural Environment

Conductive carbon black used in battery applications for the popularization of electric vehicles that do not emit exhaustgases

A highly biodegradable agent for fabric softeners and other products that uses plant-based raw materials and has an ester-

type quaternary ammonium structure

Environmentally Friendly Products
Lion Specialty Chemicals Co., Ltd.

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Lion’s Environmentally Friendly Products
About Lion’s Environmentally Friendly Products

Environmentally Friendly Products for Everyday Living

Lion’s Focus

About Lion’s Environmentally Friendly Products

Lion considers products that have cleared the proprietary Lion eco-standard to beenvironmentally friendly. Lion provides products that create effortless ways for

consumers to be more environmentally friendly just by living comfortably andpromotes the formation of environmentally friendly habits by engaging in interactive

communication with consumers.

The Lion Eco-Standard

Environmentally Friendly Products for Everyday Living

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Lion offers a lineup of products that lead to eco-friendly habits in a variety of everyday life situations.

Products with the “eco LION” mark [Japanese]
Lion Eco Pamphlet [Japanese]（PDF：5.4MB）

Lion’s Focus
Water-saving products

Relationship between water use and CO2 emissions

For the Lion Group, within the product lifecycle, the highest CO2 emission ratio is found at the consumer use stage as

illustrated in the graph on the left.

Further, because water use and sewage account for more than half of these CO2 emissions, as shown in the graph on

the right, water conservation would constitute a practical and eco-friendly measure that could reduce CO2 emissions
and help in the fight against climate change.

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A product that enables one-rinse washing in order to save water is good on a personal andenvironmental level.

The water-saving effects of one-rinse washing

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NANOX one saves water and prolongs the life of clothes.

Laundry Micro-Fantasy!, The world of NANOX one

ultra-high performance detergent, a comic strip series by Lidea [Japanese]
Brand site for NANOX one [Japanese]

Refillable products
In preparation

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The Lion Eco-Standard
The Lion Eco-Standard

The “eco Lion” MarkThe Lion Eco-Standard

Lion has created the Lion eco-standard based on life cycle assessment (LCA), in which the environmental burden created bya product is quantitively assessed at every stage from raw material procurement to disposal. Products that meet at least one

evaluation standard in each evaluation category can bear the “eco Lion” mark. In 2023, 82% of Lion’s household product*sales were from environmentally friendly products that meet the Lion eco-standard.
Products with the “eco Lion” Mark [Japanese]

Portion of Sales from Products that Meet the Lion Eco-Standard (Domestic)
2017

76%

2020

80%

2021

0882%

2022

81%

2023

82%

* Products in the Oral Care, Beauty Care, Fabric Care and Living Care fields

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Lion Eco-Standard Evaluation Categories and Standards
Life cycle stage①Raw material
procurement②Material

procurement

Evaluation category
Use of plant-based materials

Use of sustainable raw materials

Use of recycled materials

Use of plant-based materials

Evaluation standards

・ At least 50% of the raw materials of product contents(organic ingredients) is plant-based・ Of the plant-based materials used, at least 50% arebiodiversity-friendly

・At least 10% of the materials used are recycled
・Cardboard used is at least 94% recycled paper or
certified pulp from forest thinning・At least 20% of resins used are plant-based
・A reduction of at least 20% in greenhouse gas emissions

at the manufacturing stage compared with the baseline
product*③Manufacturing④Logistics⑤Use⑥Disposal

Energy saving
Water saving

Chemical substance use reduction
Waste reduction

Making products moreconcentrated and compact
Energy saving during use

Reduction of greenhouse gas

emissions during use

Water saving during use

Packaging reduction
Refill packs

・A reduction of at least 20% in water use at the

manufacturing stage compared with the baseline
product*

・A reduction of at least 20% in use of chemical substances
other than raw materials at the manufacturing stage
compared with the baseline product*

・A reduction of at least 20% in waste generated at the
manufacturing stage compared with the baseline
product*

・An increase of at least 20% in product content

concentration or packaging compactness compared withbaseline product*

・A reduction of at least 20% in energy consumed byproduct use compared with baseline product*

・A reduction of at least 20% in greenhouse gas emissions
after product use compared with baseline product*

・A reduction of at least 20% in water use during productuse compared with baseline product*

・A reduction of at least 15% in packaging materials usedin bottles compared with baseline product*

・A reduction of at least 50% in packaging materials usedin refill packs compared with corresponding productbottles* Baseline product: Products released in 2017, the baseline year for the LION Eco Challenge 2050.

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The “eco Lion” MarkThe “eco Lion” mark symbolizes Lion’s environmental activities and incorporates Lion’senvironmental slogan, “Every Day. For the Earth” which concisely expresses Lion’scommitment to the environment in line with the corporate slogan, “life. love.” To help

customers choose environmentally friendly products, we use this mark on productsthat meet the proprietary Lion eco-standard. The factors that make each productenvironmentally friendly are printed within the mark.

The mark on a productTOP SUPER NANOX refill pack (350g)

Other Examples of Products with the “eco Lion” MarkNANOX one PRO

CHARMY Magica

KireiKirei Medicated Foaming Hand Soap refill pack38

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