Respect for Human Rights

Respect for Human Rights
Basic Approach

The Lion Group implements various measures in accordance with its purpose of making a difference in everyday lives byredesigning habits: ReDesign. One such measure is the Charter for Corporate Behavior, which states that “We shall respecthuman rights ... observing both the spirit as well as the letter of all applicable laws and international rules.” Another is the

Behavioral Guidelines, which state that the Group will not permit child labor or forced or coerced labor, will provide equal
employment opportunities and treat employees fairly, and will take an active interest in the human rights practices of its
suppliers.

The Group has also declared its support for and adherence to the International Bill of Human Rights (the Universal

Declaration of Human Rights, the International Covenant on Economic, Social and Cultural Rights and the International

Covenant on Civil and Political Rights), which stipulates the fundamental human rights of all people in the world, as well as

the Ten Principles of the United Nations Global Compact, the ILO Declaration on Fundamental Principles and Rights at Workand the Children’s Rights and Business Principles.

Respect for human rights is indispensable to the pursuit of happiness and a higher quality of life. The Group recognizes thatit has a responsibility as a company to affirm diversity, including that of race, religion, gender, sexual orientation, age,nationality and disability, and to fully respect all human rights. Furthermore, it recognizes that doing so strengthens its
business foundation.

Human Rights Policy

In 2019, based on the framework of the United Nations Guiding Principles for Business and Human Rights, the Lion Groupestablished the LION Human Rights Policy to further clarify its stance on human rights abuses as well as its global efforts inthis area. Since then, Lion has periodically reviewed its human rights policy to ensure the strength of its efforts.

In 2023, with the approval of the Board of Directors, we amended the LION Human Rights Policy in light of social conditions

surrounding business and human rights as well as the status of the Group’s human rights due diligence* efforts, taking into
careful consideration the elements necessary to the policy going forward.

The amended policy clearly stipulates, in great detail, a management system that emphasizes respecting human rights(human rights due diligence) and remedies to violations (internal and external whistle-blowing system) in addition to otherrelated matters. The revised policy has been translated into the languages of the countries and areas in which Lion does

business and disclosed to stakeholders involved in the Group’s business activities via the websites of Lion and its affiliatedcompanies.

The Human Rights Policy applies to all executives and employees of the Lion Group. Moreover, the Group’s business

partners and suppliers are required to support and respect the policy. The Human Rights Policy also stipulates that in theevent of a conflict between internationally recognized human rights and national or local laws and regulations, the Groupwill seek to ensure that internationally recognized human rights principles are respected.

* Measures that companies must take to avoid violating human rights and to provide relief to victims of violations.

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Implementation Framework

Initiatives regarding human rights are seen by the S Subcommittee (Social Environment), led by an Executive Officer andestablished under the Sustainability Promotion Council. When called for, these meetings report matters to the Executive

Management Board or refers or presents them to the Executive Management Board and the Board of Directors. Participantsin these investigative meetings comprise representatives of relevant divisions, such as the Corporate Planning Department,
Legal Department, Human Resources Development Center, Purchasing Headquarters, Overseas Department andSustainability Promotion Department.

Initiatives

Measures to Prevent Human Rights Abuse(Human Rights Due Diligence)

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Respect for Human Rights

Measures to Prevent Human Rights Abuse（Human Rights Due
Diligence）

Human Rights Due Diligence

Human Rights Impact Assessment

Implementation of Prevention, Mitigation and Corrective Measures
Communication

Initiatives at Overseas Group Companies

Monitoring

Initiatives to Prevent Human Rights Violations along the Value Chain

Human Rights Due Diligence

The Lion Group, in order to take responsibility for identifying, preventing, mitigating and addressing negative human rights

impacts caused or contributed to by its business activities, established the Human Rights Review Committee, a cross-departmental organization that takes the lead in promoting human rights due diligence*through the following process
based on the UN Guiding Principles on Business and Human Rights while also engaging in dialogue with stakeholders
involved with the Group’s business, including employees and temporary employees, business partners, suppliers,
communities, consumers, external experts and organizations related to human rights.

Recognizing that human rights risks may change as the Lion Group’s business activities, social conditions and human rights

conditions evolve, we will seek better ways to enhance the effectiveness of our efforts, such as by regularly implementing
each step of the Human Rights Due Diligence Process, including the human rights impact assessment.

Overview of Human Rights Due Diligence* Corporate measures to avoid causing human rights violations and provide remediation for the victims of such violations

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Human Rights Impact Assessment
Overview of Anticipated Human Rights Risks in the Group’s Business Activities

The Group’s main business encompasses the development, manufacture and sale of household products. Among these, wenotably handle many cleaning products, including laundry detergents. The surfactants that comprise the washingingredients of such products are derived from such raw materials as palm oil, palm kernel oil and their derivatives. The main

production areas for palm oil and palm kernel oil are Malaysia and Indonesia, and we recognize that these countries andareas as well as the commodities themselves bear relatively high human rights risks and pose problems regarding

sustainable procurement, including human rights based on data provided by international human rights organizations andSedex. Specifically, human rights risks such as overwork, the use of child labor and smoke damage from illegal slash-andburn forest clearing are assumed for stakeholders who may be placed in vulnerable positions such as palm plantation
workers.

Corrugated boxes used to package and transport household products use a large amount of paper and pulp as packaging

materials, which may pose environmental human rights risks due to inadequate forest management and other factors.

In addition to palm oil and palm kernel oil and paper and pulp suppliers, we secure the cooperation of a wide array of raw
material manufacturers and production contractors in procuring raw materials and other aspects of our manufacturing
processes. If human rights risks in procurement become apparent due to transactions with suppliers that are not fullycommitted to sustainable procurement, including human rights, this could lead to business risks related to the supply of
products and impact the reputation of the Group.

Furthermore, with regard to planning, manufacturing and sales of household products, we have multiple points of contact
in and outside Japan with stakeholders, starting with Lion employees, temporary employees and business partners
throughout the value chain, including those working in planning, procurement, research, production, sales andadministration. Each point of contact has the potential to cause or encourage human rights risks such as discrimination andharassment on the basis of race or gender, overwork and excessive working hours. When expanding contacts with

consumers as a result of changes in business structure, we must be more vigilant regarding privacy rights, including themanagement of personal information*.

* Refers to the International Trade Union Confederation (ITUC) Global Rights Index, etc.

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Extrapolation of Human Rights Issues Anticipated in the Lion Group Business Activities

In order to further clarify the potential and actual human rights risks that may occur in the value chain in the countries andareas where the Group operates, we have identified as relevant to the Group’s business activities the following human rights

issues* from the International Bill of Human Rights, the Ten Principles of the UN Global Compact, the ILO Declaration on

Fundamental Principles and Rights at Work, the Children’s Rights and Business Principles and other international standards
related to human rights.

In extrapolating human rights issues, we have referred to the social context surrounding business operations and humanrights, the United Nations Environment Programme Finance Initiative (UNEP), guidelines on human rights formulated by theJapan Business Federation and advice from external experts.
* Extrapolated Human Rights Issues

Forced and coerced labor; freedom of movement and residence; child labor; right to an education; rights of young workers; freedom to formand join trade unions; equal pay for equal work; discrimination in hiring; discrimination in the terms and conditions of employment;

discrimination in opportunities and evaluations; protection of motherhood and childhood; harassment; freedom of thought and religion;

overwork and excessive working hours; right to rest and leisure; just compensation and living wages; freedom of employment andunemployment insurance; right to safe and healthy working conditions; right to a decent standard of living and health; right to social

security; right to privacy; impacts on the lives of local residents; access to water; environmental management; consumer safety and health

The Lion Group’s Human Rights Impact Assessment and Identification of Priorities

The Lion Group identified certain human rights issues as potential challenges to its business activities through anassessment of potential and actual impacts on our stakeholders: our employees and temporary employees; business

partners, including contractors; suppliers; communities, including indigenous peoples; and consumers.

Based on the United Nations Guiding Principles Framework and other guidelines on human rights, we assess the scale ofhuman rights violations, the scope of those violations, the likelihood of occurrence and the possibility of resolution. Thistask was undertaken mainly by persons responsible for the relevant departments as well as an investigative committee onhuman rights, who after making a comprehensive judgment based on such factors as changes in business and society andthe opinions of stakeholders, including external experts, created a risk map based on the results of the Human Rights Issue

Check Sheet, which identifies outstanding human rights issues as priorities for the Company.

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Implementation of Prevention, Mitigation and Corrective Measures

For priority issues (salient human rights issues) identified by the human rights impact assessment, we implement thefollowing actions to prevent, mitigate and remedy negative human rights impacts.
Priority Issues for the Company(Salient human rights issues)

Measures and progress toward preventing, mitigating and correcting
negative impacts

・ Promote the procurement of third-party certified raw materials, such as

RSPO and FSC certified products like palm oil, palm kernel oil, paper andpulp, in cases where human rights risks are of particular concern

Suppliers using forced labor or childlabor, violating the rights of young
workers, imposing overwork andexcessive working hours, impinging theright to enjoy safe and healthy working
conditions, freedom of residence andrelocation, denying the right toeducation, freedom of work andemployment security

2023 results
Certified palm oil and palm kernel oil derivatives: 51% of the Group (basedon key raw materials)
Certified paper and pulp: 20% of the Group (item ratio)

・ Using self-checks based on the Lion Group Supplier CSR Guidelines andSedex, promote the implementation of risk assessments at suppliers.
High-risk suppliers will also be required to take corrective actions.
2023 results
Human rights due diligence implementation rate: 87% of the Group
High-risk suppliers: N/A・ We will add the Lion Human Rights Policy, the International Bill of Human

Rights and the ILO Declaration on Fundamental Principles and Rights at
Work to the memorandum of the Lion Group Supplier CSR Guidelines, andrequire that the human rights policy be endorsed and followed bysuppliers as well.
2023 results
Memorandum of Understanding on human rights signed with 42 of the
major domestic companies

Supplier’s local community access toclean water resources, impact on local
livelihoods and environmental
management

・ To prevent, mitigate and correct such negative impacts as lack of access towater resources in communities of local residents living near supplierbases, we will add questions regarding environmental management toself-checks based on the Lion Group CSR Guidelines to ascertain thestatus of specific initiatives undertaken for the community.

2023 results
Questions related to environmental management have been added toself-checks based on the Lion Group CSR Guidelines

・ To prevent, mitigate and correct the causes, contributing factors and theOverwork, excessive working hours andinternal employee harassment among
our business partners

Consumers’ right to privacy

negative effects themselves of overwork and excessive working hours at
our business partners, we are working to disseminate and establish theLion Group Charter of Corporate Behavior and the Lion Human Rights
Policy through e-learning and training programs for our employees. In
addition, we will quantitatively assess our employees’ understanding ofthese issues and evaluate their behavior at work through the Compliance
Awareness Survey.
2023 results
Human rights training has been conducted at the Company and seven ofour domestic affiliates and eight of our overseas affiliates.

・ To prevent and reduce the risk of personal information leaks and thereby

protect consumers’ right to privacy, we have established policies andregulations such as the Personal Information Management Regulations,
the Basic Policy of Our Information Management, the Information
Management Regulations and the Information Security Regulations inaccordance with the Act on the Protection of Personal Information. We
also implement annual e-learning programs on information security andinformation management systems as part of Company employee
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Priority Issues for the Company(Salient human rights issues)

Measures and progress toward preventing, mitigating and correcting
negative impacts

education, and continually strengthen information security measures,
including personal information protection at overseas affiliatedcompanies, in accordance with laws and regulations.

2023 results
Training for domestic employees on compliance with personal
information management regulations has been conducted through elearning
Obtained information-related certification on a project basis at thecompany

Access to Relief (Establishment of Grievance Mechanisms)

The Group has established the AL (All Lion) Heart Hotline, an internal and external whistle-blowing system, as a grievancemechanism to manage complaints about transgressions of business ethics, particularly those involving human rights.

Under this system, whistleblowers can be stakeholders from outside the Group, like business partners. The privacy ofwhistleblowers and reported parties informants is safeguarded and secrecy is assured for any investigations. Aside fromanonymous reports, etc., all instances are also relayed to all whistleblowers.

For details of the system and the details of consultation and reporting, please refer to the following link on the Company’s

website.

Internal and External Whistle-Blowing System (AL Heart Hotline)

Monitoring

Each preventive, mitigating and corrective measure is assigned a qualitative or quantitative indicator and the investigative

committee on human rights regularly reports the monitoring results for each measure to the S Subcommittee (Social
Environment) twice a year.

Communication
External Disclosure

The status of human rights initiatives, etc. is published on the Company’s website as necessary.

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Education, Dialogue

The Company implements annual e-learning training for all domestic employees (including part-time employees) to ensurethat the Lion Group Charter of Corporate Behavior and the Lion Human Rights Policy are widely understood and firmly
established.

In addition, every year we conduct a Compliance Awareness Survey for all domestic employees (including part-time

employees) to quantitatively and qualitatively assess their awareness of compliance, including with regard to human rights

and workplace behavior, while providing feedback to each department on the results to raise employee awareness andcreate a better environment.

In promoting human rights due diligence, we held study sessions and exchanged opinions on business and human rights

with directors, Audit & Supervisory Board members, executive officers, managers of divisions with human rights jurisdictionand external experts to deepen understanding of the issues.

Participation in External Initiatives on Human Rights

The Group also participates in such external initiatives as workshops held by the Human Rights Due Diligence (HRDD)

Subcommittee of the Global Compact Network Japan (GCNJ) to promote understanding of social conditions surrounding

human rights. The Japan Cosmetic Industry Association (JCIA), to which we belong, has formulated Sustainability

Guidelines and, through a social issues subcommittee, held a seminar for its members on advertising expression in
consumer goods in 2023.

Initiatives at Overseas Group Companies
Risk Assessment in the Lion GroupWe regularly conduct hearings with each of our overseas Group company on issues regarding human rights that are

assumed to be incorporated into their business activities. During those hearings the Company uses the Sustainability

Activities Conformation Sheet, which with the help of external experts, identifies the issues that need to be considered in

the countries and areas where we operate with respect to key sustainability issues as a means of ascertaining the status of

prevention, mitigation and corrective measures and responses, as well as monitoring the progress of such measures andresponses.

Risk Assessment of Suppliers

For suppliers that conduct business with our overseas affiliates, we use self-checks based on the Lion Group Supplier CSR

Guidelines and Sedex’s data analysis to assess the impact of suppliers on matters related to the Group’s Procurement Policy,

including human rights and labor.

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Initiatives to Prevent Human Rights Violations along the Value Chain

The Group is taking the following steps to reduce the risk of potential human rights violations along each value chain

involving the procurement of raw materials, activities at the Company and use by consumers.

An overall layout of our efforts to prevent human rights violations by value chain and stakeholder

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Initiatives in Raw Materials Procurement

The Lion Group has clarified its stance on sustainability, including legal compliance, environmental conservation andrespect for human rights in its Procurement Principles as part of its efforts to prevent human rights violations in raw

material procurement. The Group is also evolving its efforts with its suppliers.

We are also promoting the sustainable procurement of palm oil and palm kernel oil, our main plant-based raw materials, as

we recognize the importance of such efforts.

(1) Raw Materials Procurement

Prevention and Mitigation Measures

Targets and Progress in 2023

Target: 100% procurement of RSPO-certified materials

Progress: 99% of key raw materials are RSPO-certified(scope: consumer products sold in Japan)

Procure third party-certified raw materials → Procure

Target: 100% procurement of FSC-certified materials

products certified by the Roundtable on Sustainable Palm

Progress: 75% of materials are FSC-certified (percentage
of product types sold in Japan); we are promoting theuse of paper certified by the FSC or the Programme for
the Endorsement of Forest Certification (PEFC) andrecycled paper as copy paper and in office supplies

Oil (RSPO) and Forest Stewardship Council (FSC)

Promote trade with suppliers with the ability to resolve

Target: Procurement from suppliers that support efforts
aimed at zero deforestation: All supplierssocial and environmental problems that may occur in the

supply chain → Suppliers that support efforts aimed at

Progress: 54% (scope: raw material suppliers for the LionGroup in Japan)

zero deforestation(2) Suppliers

Prevention and Mitigation Measures

Regular risk evaluations of the sustainability activities ofsuppliers

Identification of high-risk suppliers
Audits of high-risk suppliers and formulation of
improvement plans

Progress in 2023

Conducted a self-check based on the Lion Group Supplier

CSR Guidelines, and conducted a risk assessment onsustainability at suppliers of Lion, domestic Group

companies, Lion Corporation （Korea）, Lion Corporation(Thailand) Ltd. and Southern Lion Sdn. Bhd using Sedex.
Set standards for high-risk suppliers for self-checks basedon the Lion Group Supplier CSR Guidelines
High-risk suppliers were not applicable* As of March 2024

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Initiatives in Customer Use

As part of our efforts to ensure that our customers can use our products safely and with peace of mind, we have establisheda Product Management System, a set of rules that defines our business processes and quality assurance at each stage of

product development. In addition to complying with the Act on Pharmaceuticals and Medical Devices, the Act against

Unjustifiable Premiums and Misleading Representations, the Health Promotion Act, and other related laws and regulations,
we have established a representation drafting manual and conduct accurate and moderate advertising and promotions that

do not cause misunderstanding or discomfort, taking the customer’s viewpoint into consideration.

In countries and areas where many Muslims live, such as Malaysia and Indonesia, we are working to obtain Halalcertification* so that local consumers can use our products with peace of mind.

* Certification under systems for labeling products that have cleared halal certification standards with a halal-certified mark. A halal

certificate issued by a certifying body officially recognized by the country’s halal certification authority is required to sell products with ahalal-certified mark.

Examples of Halal-Certified Products

Systema toothpaste sold inIndonesia

Shokubutsu body wash sold in
Malaysia

An Indonesian halal certificate

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A Malaysian halal certificate

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