CSR Report 2010

Front cover:
Overall winners in the LION TOP Eco Project Waterfront Painting Contest“Playing in the River” by Megumu Ohno (Fukuoka Prefecture)“River with Yamame Salmon” by Daigo Sasaki (Fukui Prefecture)

CSR Report

2010
C S R

REPORT

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Lion Corporation
Published:
November 15, 2010
CSR Promotion Department, Lion Corporation
Inquiries:
CSR Promotion Department, Lion Corporation(Social Responsibility Promotion Team/Environmental Conservation Office)3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan
Tel: +81-3-3621-6611 Fax: +81-3-3621-6269
Website:http://www.lion.co.jp/en/
Next scheduled publication:
November 2011

In recognition of its advanced
environmental initiatives, Lion has
been certified as an Eco First
Company by the Japan’s Ministryof the Environment.

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Company Motto
Lion’s operations are based on the motto,“Fulfilling a spirit of love,”reflecting the Company’s aim to enhance
the happiness and lifestyles of each and every customer.

Management Philosophy
Lion aims to provide superior products that are useful in daily life
by capitalizing on the synergies of its human resources as well as
its technological and marketing capabilities.
Lion will strive to continue to develop its business by maintaining
the spirit of tenacity and creativity that the Company has held since
its founding.
Lion gratefully acknowledges all those who have supported
the Company in the past and will work to build goodwill andmutual trust with its customers for the benefit of both parties in the future.

January 1, 1980

Editorial Policy

CONTENTS

Lion views its CSR Report as an important tool allowing theCompany to communicate its CSR initiatives and draw onstakeholder opinions while furthering corporate activities.
CSR Report 2010 details Lion’s interpretation of corporate social
responsibility along with initiatives the Company undertakes toearn the trust of society. The report adheres to the following
editorial policy.

Corporate Data………………………………………………… 2
Message from the President… ………………………………… 4● Two special features, covering the Stakeholder Dialogue, with its safety

and reliability theme, and biodiversity initiatives, have been included torespond to points made in the “Third-Party Review” of CSR Report 2009
and the Stakeholder Dialogue (e.g., importance of communication
and biodiversity).

Special Feature

6

Stakeholder Dialogue…………………………………………… 6
Biodiversity Initiatives… ……………………………………… 8

Lion and CSR

10Lion’s CSR Approach / Corporate Governance / Establishment ofInternal Control Systems / Evaluating Internal Control over Financial
Reporting / Risk Management / Information Security / Promoting
Compliance / Lion’s CSR Activities and Issues (2009)● Lion’s approach to utilization of human resources, including human rights,

has been clarified further and disclosure of information expanded.
● Approaches and initiatives relating to CSR procurement have been clarified

through a review of contents and make-up.
● Environmental data for overseas plants have been made available on

the Company website as a first step in establishing a global disclosure

Customers and Lion

16

Approach to Safety and Quality / Quality Assurance System / ProductCreation that Emphasizes Safety and Quality / Utilizing Customer
Opinion / Response to Customers

framework that includes overseas activities.
URL http://www.lion.co.jp/en/csr/html/soc_csrf.htm● Third-party reviews by outside experts have been included to provide

an objective assessment of the report.
● The booklet has been certified as a Color Universal Design and compiled

Employees and Lion

22

Human Resource Diversity / Assisting Work-Life Balance / Human
Resource Development / Employee Health Management / Safety andDisaster Prevention Initiatives

to reach as many people as possible in an easy-to-understand manner(in Japanese only).
■ The Environmental Reporting Guidelines (2007) of the Japanese Ministry

Shareholders/Investors and Lion

28

Information Disclosure and Communicationof the Environment and the Sustainability Reporting Guidelines (2006) of
the Global Reporting Initiative (GRI) were referenced during compilationand editing of the report.
■ All pages of the report and past reports are available on Lion’s website(the GRI Content Index is also provided).
URL http://www.lion.co.jp/en/csr/html/soc_csrf.htm

Business Partners and Lion

30

Realizing Sustainable Procurement / Fair Transactions with Raw
Material Suppliers / Fair Transactions with Manufacturing Partners /Teaming Up with Competitors on Delivery / Working with Wholesalers
and Retailers on Store Presentations【Coverage】
Social aspects of this report deal mainly with Lion Corporation.
Environmental data coverage extends to the entire Lion Group,

Society and Lion

32

including the Lion Foundation for Dental Health.

Lion’s Social Contribution Activities / Activities of Lion Foundation for
Dental Health / Teaching Importance of Oral Health

Lion GroupThe Environment and Lion

Lion Corporation, Lion Chemical Co., Ltd., Lion Packaging Co., Ltd., Lion

To Become a Leading Company in Environmental Friendliness… … 36
Environmental Management and Promotion Structure… ………… 38
Environmental Targets and Achievements……………………… 40
Environmental Accounting and Eco-Efficiency… ………………… 42
Overview of Environmental Impact of Lion’s Business Activities… … 44
Reducing Greenhouse Gas Emissions… ………………………… 45
Effectively Using and Recycling Resources… …………………… 46
Considering Environment from Product-Oriented Perspective……… 47
Appropriately Handling Chemical Substances… ………………… 52
Fostering Environmental Awareness within the Lion Group… …… 54
Environmental Communication… ……………………………… 55

Engineering Co., Ltd., Lion Dental Products Co., Ltd., Lion Trading Co., Ltd.,
Lion Hygiene Co., Ltd., Lion Business Service Co., Ltd., Lion Field Marketing
Co., Ltd., Lion Logistics Service Co., Ltd., Leo Field Promotions Co., Ltd., Lion
Cordial Support Co., Ltd., Issua Co., Ltd., Ipposha Oil Industries Co., Ltd.,
Lion Akzo Co., Ltd., Lion Foundation for Dental Health* Leo Field Promotions Co., Ltd., and Lion Field Marketing Co., Ltd., mergedin January 2010 and the Company’s name was changed to “Lion Field
Marketing Co., Ltd.”【Period Covered】
January 1-December 31, 2009
(In places, activity reports refer to 2010 initiatives.)

36

Third-Party Review……………………………………………… 56
Editorial Note… ……………………………………………… 57

CSR Report 20101

Corporate Data
Corporate Name
Lion Corporation
Address	3-7, Honjo 1-chome, Sumida-ku,
Tokyo 130-8644, JapanFoundation
October 30, 1891
Capital	¥34,433.72 million(as of December 31, 2009)
President
Sadayoshi Fujishige
Employees	Consolidated: 5,750
	Non-consolidated: 2,449(as of December 31, 2009)
Net Sales
Consolidated: ¥321,947 million
Non-consolidated: ¥255,691 million(for the term ended December 2009)
Plants	Chiba Plant (Ichihara City), Odawara Plant(Odawara City), Osaka Plant (Sakai City),
Akashi Plant (Akashi City)
Research Facilities	Hirai (Edogawa-ku), Honjo (Sumida-ku),
Odawara (Odawara City), Fukushima(Yabuki-cho)Sales Offices	Sapporo, Sendai, Tokyo, Nagoya,
Osaka, Fukuoka●F inancial Summary (Consolidated)

Net Sales(million yen)
400,000
350,000

331,798

330,380

341,717338,236

2005

2006

2007

2008

250,000
200,000
150,000
100,000
50,0000

Other businesses(incl. special sales)¥136.8 billion(42.5%)¥2.7 billion（0.8％）

12,00010,036

Household Products

Oral Care Products¥160.2 billion(49.8%)¥55.4 billion(17.2%)

Fabric Care
Products

8,277

6,066

4,000
343
2005

2006

2007

2008

2009

(year)

Ordinary Income(million yen)

Living Care
Products(14.4%)

6,000

0¥22.1 billion(6.9%)¥46.2 billion

8,905

2,000

Chemical Products(year)(million yen)

8,000
Health Care Products

2009

Operating Income

10,000● Net Sales Breakdown by Business

321,947

300,000

Consolidated
net sales (2009):¥321.9billion¥113.9 billion(35.4%)

Beauty Care
Products

12,000¥39.2 billion

10,000(12.2%)

8,514

7,603

8,000

Pharmaceutical
Products

6,000¥42.1billion

4,000(13.1%)

11,145
10,104

2,427
2,000
0

● Net Sales Breakdown by Location

2005

2006

2007

5,540

5,423

2008

2009

(year)

Asia¥45.6 billion(14.2%)Net Income(million yen)
6,000

Consolidated
net sales (2009):

5,000¥321.9 billion

4,000

5,473

3,040

3,000
Japan

¥276.2 billion(85.8%)* National and regional categories are based on geographical proximity* Major countries in Asia other than Japan are China, Korea, and Thailand

2 CSR Report 2010

5,465

2,000
1,000
0

2005

2006

2007

2008

2009

(year)

Beauty Care Products
Fabric Care Products
Living Care Products

Chemical Products

Special Sales

Household Products

Pharmaceutical Products

Health Care Products

Oral Care Products● Main Lines of Business

Advanced oral care products to help customers stay healthy

Main Product Categories
Toothpastes, toothbrushes,
mouthwashes, and otherdental products

Hair and skin care products for health and comfort of body and mind
Main Product Categories
Shampoos, conditioners,
hair-styling products,
hair-nourishment treatments,
hand soaps, body washes, men’s
cosmetics, and antiperspirants

A well-rounded range of brands to meet growing self-care needs
Main Product Categories
Analgesics, cold remedies, eye-care
products, gum disease treatments,
denture products, anti-inflammatory
poultices, gastrointestinal medicine,skin-care products, fever cooling
sheets, tonics and nutrients,
insecticides, and prescription drugs

Products you can relax with for keeping your clothes clean and making them a pleasure to wear

Main Product Categories
Laundry detergents, fine clothingcare products, pre-care products,
bleaches, fabric softeners, andmaintenance products

Products useful for clean and comfortable living and dining

Main Product Categories
Dishwashing detergents,
household cleaners,
and cooking aids

Custom products tailored to meet individual needs

Main Product Categories
Novelty items, gift items,
and mail order items

Performance chemicals based on interface science for a safe, sound, and clean global environment
Main Product Categories
Surfactants, fatty acid nitrogen
derivatives, glycerin, fatty acidmethyl ester, andelectro-conductive carbon

Surfactants

Precision parts cleaner and target items

Conductive carbon and application products

CSR Report 20103

Message from the President

Lion’s CSR Activities Endorsea New Brand of “Happiness”
A Formula for Happiness in the 21st Century
The pursuit of spiritual rather than material richness

Recent years have been marked by an unprecedented
upheaval in the economic environment. I believe this is
the result of money and goods inundating the market,
causing inflation of the money-centric economy andeventually its collapse. But perhaps the root cause ofthis upheaval is the faltering “20th century formula forhappiness,” which states that happiness comes frommaterial wealth. Maybe we have reached the stage where
we need to conceive a new formula for happiness—one
for the 21st century.
Spiritual richness, not material wealth; quality, notquantity. People’s values and ideas about happinesshave reached a major turning point. You could say thisis demonstrated by our attachment of importance to thequality of life and in our vision of harmonious coexistencewith nature.
One indicator of quality of life is “healthy life
expectancy.” Now that Japanese society is aging,

4 CSR Report 2010

more value is being placed on extending healthy life
expectancy, i.e., staying healthy longer.
Industry, meanwhile, in addition to satisfying people’s
needs and expectations, is being called upon to maintaina balance with the global environment amid energy andfood supply concerns stemming from global populationand economic growth.
Lion’s business, based on the key concepts of health,comfort, and the environment, is consistent with thetimes and ties to providing spiritual richness to people
in a new age and a new society.

Lion’s Corporate Social Responsibility (CSR)
Support for the well-being of humans and nature

Lion has three business visions—becoming the numberone company in the “New Comfortable Lifestyle Support
Industry”; becoming a leading company in environmental
friendliness; and building a dynamic corporate culture.
The first vision—number one in “New Comfortable
Lifestyle Support Industry”; involves building up a large
business base around new lifestyle values and being thebest. Worded differently, we aim to realize “beautiful
aging,” which is aging well and staying healthy bothmentally and physically. To do that, Lion will emphasize
good lifestyle habits for each stage in life, from birththrough to old age, and endeavor to provide products
and services that help people to lead full lives.
The second vision—a leading company in environmental
friendliness—involves making efforts to clean up the soil,
the water, and the air through our business activities.
Lion could be said to have two roles—supporting humancomfort, and supporting nature’s comfort. I view these as
the essence of Lion’s corporate social responsibility.

The third vision—a dynamic corporate culture—
involves building a strong corporate culture expected toserve as a model in tenacity, creativity, and learning.
This requires the stimulation of human resources, whichis also an extremely important factor for upholding Lion’s
corporate social responsibility. The Company exists tomake people happy. To make people and society happy,
employees must first be happy.
In 2009, Lion announced its participation in the
United Nations Global Compact. The Company will
follow 10 principles in the four areas of human rights,
labor, environment, and anti-corruption, looking to
globally implement initiatives focusing on humanand environmental issues, such as human rights, CSR
procurement, fair and proper treatment,
and occupational safety.

A Leading Company
in Environmental Friendliness
Lion implements environmental initiatives in line with its
Environmental Guidelines and based on targets set every
three years.
In 2009, the final year of Lion’s three-year mediumterm environmental plan, we reduced CO2 emissions
from business activities by 26% compared to 1990 levels,
outperforming the plan by far. In January 2010, Lion
announced its participation in the Japanese government’s“Challenge 25 Campaign” and we have already cleared
the nation’s 25% CO2 emissions reduction target for2020. We also attach importance to reducing theamount of CO2 generated by products, and we pursue
development of environment-friendly products in linewith our unique Lion Eco Standards.
Biodiversity is a central theme in the run-up to the 10th
Meeting of the Conference of Parties to the Convention
on Biological Diversity scheduled for October 2010. As
the saying goes, “Birds today, people tomorrow” what
happens to birds today will happen to humans tomorrow.
Consideration toward biodiversity, by extension, will help
protect the lives of future generations. Lion has longincorporated biodiversity considerations into its businessactivities and that position has been clarified in a revisionof its Environmental Guidelines.
Lion will continue to fulfill its responsibility as a leading
company in environmental friendliness.

Integrity in Communication
As products and services diversify and attention focuses on
the link between corporate activities, the environment,
and society, there is a growing requirement forcorporations to properly communicate information
to stakeholders.
In 2010, Lion established a Corporate Communication
division to focus on enhancing its company-widecommunication strategy. Lion has an establishedsystem for communicating customers’ opinions to top
management, but the new framework will allow us tomake further progress in terms of improving our ability
to communicate corporate and lifestyle information,
speeding up our response to customers, and sharing
information. Those benefits will start to emerge from next
year onward, and we hope that truthful communication
activities will enable us to forge even stronger ties with
our stakeholders.

For the Future of Human Society
and the Environment
Lion was founded 119 years ago and exists now, as it
did then, for the purpose of enabling people to leadhealthy and happy lives. One instance of this is our efforts
to teach about the importance of oral care and handwashing from childhood. Learning to be clean at an early
age is a foundation on which to lead a truly fulfilling life.
It is Lion’s corporate social responsibility to continually
propose innovative lifestyle values. Lion will continue toprovide support to people so they can lead fulfilling lives
in comfort, and undertake to clean up the ground, thewater, and the air, as a core contribution to society.

Sadayoshi Fujishige
President and Chief Executive Officer

CSR Report 20105

1

Special Feature

Stakeholder Dialogue

How Can Lion Deliver Safety and Reliability to Customers?
For comparing the direction of the Company against the demands of society, dialogue with stakeholders
is important to Lion as it is a valuable opportunity to check if we have the sense of balance of a good
corporate citizen. Exchanging opinions with experts provides such an opportunity. Dialogue began in2007 with a meeting to review the CSR Report and evolved into the Stakeholder Dialogue, a more
dynamic forum for discussion, in 2008.

Background on Dialogue
The first Stakeholder Dialogue, in 2008, involved abroad-ranging exchange of opinions about Lion’s CSR
activities in general, with reference to the CSR Report.
Opinions received were reflected in production of the2009 report.
In the second Stakeholder Dialogue, in 2009, wethought we should delve deeper, and it was decided thata particular theme would be selected.
2009 was a year in which a spotlight was shone on
efforts to build a society where consumers could feelsecure and lead affluent lives. The Japanese government,
for example, established the Consumer Affairs Agency in
September. Given these social demands, and in light of
Lion’s continuing belief that corporations are responsible
for ensuring safety and reliability throughout a product’s
entire life cycle, we invited experts in the area ofconsumer lifestyles to partake in this year’s dialogue,
which asked the question, “How can Lion deliver safety
and reliability to all its customers?”

Schedule●

Tour of the Communication Center
Participants toured the center, completed in 2009.
Facilities include open space for communication withpeople from outside the Company, and a biotope.

●

Dialogue briefing
The objectives and theme of the dialogue were explained.

●

Participant introductions●

Introduction of Lion’s initiatives
Lion’s quality, safety, and reliability initiatives wereexplained, referencing the 2009 CSR Report.

●

Exchange of Opinions
Participants engaged in a lively exchange of opinions
about the selected theme.

●

Summary and closing

Outline (Titles and positions at the time of the dialogue are used)
Date: November 9, 2009

Venue: Lion Corporation (Hirai Office)Participants:

Participants from Lion:

Yukako Itakura

Consumer Lifestyle Analyst; Former AssistantManager, General Affairs Department,
National Consumer Affairs Center of Japan

Minako Oishi

Deputy Chair, Environment Committee,
Nippon Association of Consumer Specialists

Kazuya Kojitani

Senior Executive Director and Secretariat Chair,Green Purchasing Network

Ichiro Murata

President, Quality and Safety Organization(Facilitator)

Takashi Fukushima

6 CSR Report 2010

Chief Executive, CPA, Sustainability Accounting Co., Ltd.

Tetsuo Yamada

Senior Executive Director andRepresentative Director

Kazuo Nago

Director, CSR Promotion Department

Mihoko Inaba

Associate Senior Manager,
Consumer Service OfficeMichio Matsumoto Director of Planning, Beauty Care
Business Department
Fusae Harada

Director, Human & Environmental
Safety Evaluation CenterProduct explanationin the Communication Center

Inspecting the rooftop biotope

The triangular pond uses rainwater

Opinion:O
Yukako Itakura
Data backed by objective evidence and other information which can be used to establish basic
Dkknowledge should be provided to neutral parties like consumer lifestyle consultants. Instead of
having to obtain such information via industry associations, I would like to see corporations
haarrange for us to contact them directly. Regarding the use of chemicals for products, I thinkyyou need to reassure consumers by providing comparisons, in terms of environmental impact,
ffor example, with the use of substances like sodium bicarbonate and citric acid.

O
Opinion:Minako Oishi
SSince consumers cannot communicate with corporations that do not actively disclose information,
I would like corporations to provide such information. Carbon footprints are one way tovvisualize the entire supply chain as it is possible to ascertain the environmental impact at eachpoint. Finding a way to absorb views of the silent majority for incorporation into productpssafety is vital. One task would be to devise a system for gathering consumer opinions in stores,
where consumers most often come into contact with products.
w

O
Opinion:Kazuya Kojitani
M
Making your activities known helps to avert risk. And disclosing information, aware of the probableor benefits, plays an important role in the provision of safety and reliability. Results from
iimpactsmlike green procurements should not be expected overnight. As it is also necessary for
iinitiativesnssuppliers to have common goals, it is a good idea to lay down a specific course. VOC daily letter
rreporting consumer opinions to the president is a good system, but it is up to the people in charge toeensure that PDCA cycles operate well. Please use these tools well and actively engage in communication.

O
Opinion:Ichiro Murata
As most accidents occur in the home, you should attach more importance to householdAssettings, where products are actually used. Pursuing the convenience of products sometimes
eends up impeding the ability of consumers to use them. The most important question isdetermining how to inform customers about ways to use products that will give them fulldaaccess to a product’s functions. You have to realize that corporations are the ones with the
kknowledge and there is a lot the general public knows virtually nothing about.

Ref lection on the Stakeholder Dialogue (by Lion)
A common view held by all the dialogue participants from outside the Company was that communication by Lion is
insufficient. In the sense that we were able to reacknowledge large differences in terms of information and awarenessexisting even between us and experts in the consumer lifestyle field, it was an extremely worthwhile undertaking from
Lion’s point of view. Comments received have been reflected in this CSR Report (see p.21 for information on VOC daily
letter and p.30 for CSR procurement initiatives, including green procurements).
Further efforts will be made to elaborate on and improve the content of this report and other forms of information
disclosure in order to enhance communication with consumers.

CSR Report 2010

7

2

Special Feature

Biodiversity Initiatives

Protecting the Global Environment to Allow
Humans and Other Living Things to Coexist
In the area of biodiversity, which has attracted growing interest in recent years, Lion has longengaged in the development of eco-friendly products. Lion will continue initiatives for incorporating
biodiversity considerations into its business activities.

Lion and Biodiversity“Biodiversity” refers to the idea of sustaining anenvironment where all kinds of (diverse) living things cansurvive in order to sustain an environment where humans
can live and to ensure that nature’s bounty remains
available for generations to come.
Lion attaches a priority to incorporation of biodiversity
considerations into its business activities and has assumed
a leading role in tackling such issues as pollution andeutrophication of waterways linked to the use ofdetergents. Besides reducing the environmental impact of
production plants, initiatives cover the remainder of thelife cycle, right up to disposal after household use, andinclude being at the global forefront in developing
phosphate-free detergents and the use of biodegradable
plant-based ingredients, which degrade easily in rivers.
Lion’s policy on biodiversity, already well-established in
Lion’s Behavior Guidelines, was clarified in Environmental
Guidelines published in April 2010, thereby pronouncing

the guidelines as corporate policy (see p.38). Indirect reference
to biodiversity considerations in the Eco Standards, applied
during product development, was also clarified.

Biodiversity Conservation Initiatives
Lion conducts a number of biodiversity conservation
initiatives related to its business activities. They include
participation in an international body concerned with theprocurement of palm oil, use of plant-based ingredientsto improve biodegradability, and ongoing monitoring ofdetergent constituents in rivers.
While not directly linked to its business activities, Lion also
engages in such activities as forest maintenance and breedingof rare species as part of its contribution to local communities
and to society. Employees participate in these activities asvolunteers. That experience leads to greater awarenessamong them of environmental matters as they apply it tobusiness activities.

● Lion’s Biodiversity Conservation Initiatives

Biodiversity considerations
in business activities

Raw material
procurement
ingredients● Use of materials
helping to conserve
biodiversity

e.g.
Procurement ofpalm oil

Production

biodegradability● Lowering per-use

e.g.
Consideration ofwater
environments

volumeriver pollution● Water savings

Distribution

Sales

Natureconservation
activities

Killifish in the Sakawa River system● Excellent

Householduse● No air or

8 CSR Report 2010

Disposal

Eco-friendly activities at each stage fromraw material procurement to disposal● Use of plant-based

Greater environmental
awareness among
employees●

Maintenance of forests to protect water resources(activities in the Lion Forest in Yamanashi)●

Breeding of rare species (propagation of Sakawa River system killifish,
breeding of fireflies, nest-building for terns, etc.)

FirefliesAiming for Sustainable
Procurement of Palm Oil
Demand for palm oil is growing steadily due tohigh production efficiency and the ability to harvest
throughout the year according to set production
schedules. Downsides to the development of newplantations, however, are the clearing of tropicalrainforests and the shrinking of wildlife habitats.
Lion has been a member of the Roundtable on
Sustainable Palm Oil (RSPO)* since 2006. In 2007,
the RSPO adopted the Principles and Criteria for
Sustainable Palm Oil Production (plantation
management criteria), with plantation audits andcertified palm oil distribution commencing in 2008.
Lion implemented independent audits of supplier
plantations prior to this in May 2007.
To prevent unregulated development in palm oil
producing nations, Lion will continue to work withconcerned organizations such as the RSPO topromote sustainable palm oil procurement and use
of certified palm oil.

Oil palm plantation auditit

Oil palml fruitf it

Thorough Studies Ensure
Wildlife Stays Unharmed
As Lion’s products end up being discharged into rivers, streams, and otherwaterways after use, we assess them to confirm they are safe for theenvironment. We gather data on residual quantities of detergent constituentsin water samples taken from rivers and streams to check that theenvironment has not been harmed. Thus far studies have found that the riskof wildlife being harmed is extremely low (see related information on p.53).

Employees Participate
in Nature Protection Activities
The Lion Forest in Yamanashi is a programproviding support for maintenance of around 65
hectares of municipal forest in Yamanashi City, andfinancial assistance for the transportation ofthinnings (see related information on p.32).
Lion also views the program as a valuable
opportunity to foster a mentality among employeesof striving for coexistence with other living things.
Employees make the most of a “volunteering
leave” system to participate in forest maintenanceactivities. In 2009, a total of 60 employees
participated. This CSR Report, in fact, is printed on
paper made from thinnings from the Lion Forest
in Yamanashi.
Forest maintenance activities in the Lion Forest in Yamanashi* RSPO: Roundtable on Sustainable Palm Oil

URL http://www.rspo.org/

CSR Report 20109

Lion and CSR

Lion Headquarters

Contributing to lifestyle enrichment by working
for the benefit of people and society
Lion’s fundamental approach to CSR is to fulfill its social responsibilities through corporate activities.
And in order to ensure a better response to society’s expectations, the Company is promoting closer
communication with stakeholders.

Lion’s CSR Approach
The origins of Lion’s approach to CSR can be traced to
the Company’s founding spirit of working for the benefitof people and society. This spirit lives on today, morethan a century later, in the Company Motto. We believe
it is our social responsibility to brighten up people’s lives
through business activities by presenting them goodlifestyle habits, with each and every employee acting inaccordance with the Company Motto and the Lion Group
Charter for Corporate Behavior.
In keeping with this fundamental approach, we work
continually to develop a strong foundation for businessand to ensure trustworthy and transparent corporate
management, while pursuing the three concepts of health,comfort, and the environment as central business themes.
We also actively engage in dialogue, cooperation, andprovision of information because we view communication
with stakeholders as a precious opportunity to assess thecompatibility of our activities with the times. Lion listens
to what people are saying and aligns its activities withsocial changes in order to become a company that society
can trust and count on.

Participation in the Global Compact*
In June 2009, Lion took a proactive step toward fulfilling
its obligations within the international community byannouncing its participation in the United Nations
Global Compact.
We sought to foster understanding about ourparticipation in the initiative among employees andbusiness partners by providing information and offering
educational activities, such as through briefings and our
in-house magazine.
The Company will follow the 10 Principles of the
Global Compact as it moves to involve its entire supply
chain, including overseas business partners, in CSR activities.

* Global Compact: Proposed at the January 1999 World Economic Forum by then UN Secretary-General Kofi Annan and officially launched at UN Headquarters in July 2000
10 Principles of the Global Compact URL http://www.unic.or.jp/globalcomp/glo_02.htm

10 CSR Report 2010●Development of Lion’s

Sustainable corporate and social development
Lion and CSR

CSR Activities
To establish a foundation for its

Stakeholders

Lion

Customers

Business activities aligned withsocial changes

Employees

Health, Comfort, Environment

Shareholders/Investors
Business partners
Local communities
Global environment

Customers and Lionbusiness, Lion will continue theessential task of developing corporate
governance and compliance systems.
To align its business activities withsocial changes, Lion aims to meet the
expectations of society as identified
through a dialogue with stakeholders,pursuing initiatives primarily under
the key concepts of health, comfort,
and the environment.

Establishment of a foundation
for businessCommunication
Dialogue
Cooperation

Develop systems for corporate
governance and compliance, etc.

Uphold and practice the
10 Principles of the Global Compact

Employees and Lion

Lion Group Charter for Corporate Behavior

1. Principal Mission

2. Compliance with Public Rules
We shall observe all the relevant laws and regulations
and engage in fair, transparent and free competition andsound transactions. We shall maintain sound and proper
relationship with government and political bodies.
We, as socially open company, shall engage in communication
not only with our shareholders but also with membersof society at large and disclose information generally
regarding the company management in appropriate andtimely manner.

4. Environmental Issues

5. Promotion of Working Environment
We shall promote fair treatment respecting the diversity,
individuality and personality of our employees, and ensurea safe and comfortable workplace to realize mental andphysical well-being of our employees.

We shall reject all contacts and confront with antisocial
entities and organizations threatening the order andsecurity of civil society.

8. Contribution in Foreign Countries
In our overseas operations, we shall not only observe
international rules and the laws of relevant foreign countries, butalso respect local cultures and customs and contribute to thedevelopment of local community with sincerity and respect.

9. Practice of Corporate Ethics
Top management shall assume the responsibility for
implementing the spirits of this Charter and shall take theinitiative to set a good example to the employees andfully inform Lion Group employees of the Charter. Top
management shall strive to heed internal and external
opinions continuously for mutual understanding andpromote the development and implementation of systems
contributing the achievement of the corporate ethics.

10. Resolution of Problems
In case of incidents contrary to the principles of this Charter,
top management shall clarify their position publicly toundertake responsibility to resolve the problem on their own
initiative, and shall strive to investigate the facts, identify thecause and prevent any recurrences. Top management shallperform their responsibility by disclosing accurate information
promptly and explaining the situation and resolve theproblem in the manner fully understandable to the society,and impose rigid and impartial disciplinary actions upon liable
persons including the highest level of management, after
clarifying their authorization and responsibility.

The Environmentand Lion

We shall play positive and active role in creating the“Sustainable Society” harmonizing economic development
and environmental protection.

7. Confront Antisocial Activities

Society and Lion

3. Disclosure

We shall actively contribute to the society as good
cooperate citizens.

Business Partners
and Lion

We shall earn the confidence and satisfaction of customers(all of the consumers and users) by providing excellent andsafe goods and services useful for their daily lives.

6. Contribution to the society
Shareholders/Investors
and Lion

We, Lion Group, shall, in addition to being economic entities
designated to pursue profits through fair competition, keep
ourselves as social entity which must make a contribution tosociety at large. We shall respect human rights and conduct
ourselves with initiative in a socially responsible manner
toward the creation of a sustainable society, observing boththe spirit as well as the letter of all the laws and internationalrules without harming the public interests both in Japan andabroad in accordance with the following 10 principles.

Established on January 1, 2003
Revised on January 1, 2008

CSR Report 201011

Lion and CSR

Corporate Governance
Basic Approach
Lion’s top priorities for corporate governance are increasing
management transparency, improving the efficiency ofsupervision and decision-making and ensuring compliance.
By strengthening and improving its corporate governancesystem, Lion aims to enhance its corporate value.

Corporate Governance System
Lion management is supervised through an auditing
system. In March 2004, a system of executive officers
was introduced, at which time the functions of the Boardof Directors were reassigned. The Board of Directors wasmade responsible for managerial decision-making andsupervision, while the Executive Committee was charged
with execution of business operations.
To revitalize and improve the quick responsiveness of
the Board of Directors, the number of board directors was

reduced from 19 prior to introduction of the executive
officer system to 10. Supervision and monitoring ofmanagement was enhanced with the installation of four
independent directors (two external board directors andtwo external auditors), who satisfy the criteria of having
no conflict of interest with ordinary shareholders, as
set by the Tokyo Stock Exchange, and through regularmeetings held between the president and all external
directors to exchange information. Furthermore, aManagement Evaluation Committee was set up in
October 2003 to ensure that evaluations and opinions byoutside experts are reflected in management.
Countermeasures against large-scale purchasing ofLion shares (anti-takeover measures) were introduced
after approval at the Annual Meeting of Shareholders
held on March 27, 2009.
In December 2006, a Compensation Advisory
Committee, comprising all external directors, wasset up to increase the objectivity and transparency of
director compensation.

● Model of corporate governance system

ReportingSenior Executive
Committee

Board of Directors(Supervision of management)

Proposals

Basic policies for
medium to long-term
management plans andother major corporate
strategies

Decisions on executionof important business matters● Supervision of directors’ executive
performance● Supervision of executive officers

Auditing

Corporate auditors●

Reporting

Delegation

Opinions andadvice on
legal
compliance

Reporting

Auditing

Reporting

Recommendations on director compensation

Environmental Action
Promotion Committee

Executive Committee(Execution of operations)

Reporting(Internal controls
relating to financial
reports)(Legality, validity,
and efficiency
audits; complianceprogress audits)

CS/PL Committee
Departments(Performance of operations)

Safety and Disaster
Prevention Committee(Business, manufacturing, and R&D divisions,and functional departments)
Increasing customer satisfaction
Building relationships of trust with shareholders
and investors● Developing fair and congenial work environments● Ensuring fair transactions● Social contribution activities● Protection of privacy●

Auditing●

Strengthening oflegal complianceand ethics

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

12 CSR Report 2010

Accounting auditors

Opinions and advice on legal complianceand management policy

Auditing

Monitoring(Legality audits)(Operational audits)

Auditing OfficeCompensation Advisory
Committee

Management Evaluation
Committee

General Meeting of Shareholders

The following systems and provisions have been put in place
to ensure the appropriateness of Lion Group operations inaccordance with Japan’s Companies Act and the Ordinance1for Enforcement of the Companies Act.

Society and Lion

Privacy Protection
2

Lion has established a privacy policy and specific guidelines
for management of personal information in accordancewith Japan’s Act on the Protection of Personal Information
enforced in April 2003. The Company has been implementing
these in a proper manner while pushing ahead withestablishment of related in-house systems and education
programs. We will continue to work diligently to ensurethat information—an important company asset—is properly
managed, thus enabling us to earn the trust of stakeholders.

The Environmentand Lion

The Auditing Office, an evaluation body answerable directly
to the president, has been carrying out evaluations of internal
control effectiveness since January 2009 and reporting its
findings to the president and corporate auditors, as well as
on a regular basis to the Board of Directors. Areas requiring

Lion has established a number of guidelines and regulations
to prevent information leaks. They are a basic policy on
information management, information management
regulations, privacy regulations, information security
regulations, and guidelines for management of
information technology and equipment.
We also make an effort to acquire the knowledge
necessary to prevent information leaks. Each year we
implement simple e-learning programs explaining
common examples of information leaks, their causes, andcountermeasures. Programs include tests to check thelevel of understanding.

Business Partners
and Lion

Key points for establishing internal controls● Roles and responsibilities when establishing andimplementing internal controls● Scope and methods for evaluating internal controls● Effectiveness evaluation of internal controls● Roles in procedures for evaluating internal controls●

Information Security

Shareholders/Investors
and LionWith regard to systems for evaluating and auditing
internal control over financial reporting, as prescribedin Japan’s Financial Instruments and Exchange Act, Lionand the Lion Group have been establishing controls at
company-wide and business-process levels since July
2006. In December 2008, the Board of Directors passed a
resolution on basic policy concerning internal control overfinancial reporting, specifying the following.

Lion is building up a management framework for dealing
with all the major risks that could occur in its business.
Deliberation focuses on issues with a large impact onmanagement, particularly the lowering of risks resulting
from accidents or disasters and the prevention of productrelated problems and establishment of initial response plans.
We are also advancing deliberation on ways to ensurebusiness continuity in the wake of a large-scale disaster,
including seismic strengthening of office buildings andplants and alternative arrangements for execution of
headquarter functions and backup production at otherplants in times of disaster.
Lion responded to the 2009 influenza pandemic
according to guidelines established in 2008, confirming
their effectiveness.

Employees and Lion

Evaluating Internal Control overFinancial Reporting

Risk Management

Customers and Lion

1. Systems for ensuring that the execution of duties bydirectors and employees conforms to laws, ordinances
and the Company’s Articles of Incorporation
2. Systems for storing and managing information related
to the execution of duties by directors
3. Rules and other systems for managing risk of loss
4. Systems for ensuring efficient execution of
directors’ duties
5. Systems for ensuring appropriate operations ofcorporations and their subsidiaries within the Lion Group6. Matters relating to employees requested by corporate
auditors to assist them in their duties, and matters relating
to the independence of such employees from directors
7. Systems for reporting by directors and employees
to corporate auditors and other matters relating toreporting to corporate auditors
8. Systems for ensuring effective auditing bycorporate auditors
9. Systems for ensuring reliable financial reporting
10. Systems for excluding antisocial forces

improvement are communicated to the concerned
divisions and the progress of improvements is verified.
In 2009, Lion’s internal control over financial reporting
was deemed effective. A report on internal controls was
submitted to the Prime Minister in March 2010 together
with the Company’s securities report.

Lion and CSR

Establishment of Internal Control Systems

1. Basic policy on internal control systems URL http://www.lion.co.jp/ja/invest/corporate/
2. Privacy policy URL http://www.lion.co.jp/pp.htm
CSR Report 201013

Lion and CSR

Promoting ComplianceContact for Employee Consultation
and Internal Reporting

The Corporate Ethics Committee, chaired by the director
responsible for corporate ethics, works to foster acompliance mentality within the Lion Group foundedon the Lion Group Charter for Corporate Behavior. A
pamphlet about the charter is distributed to all people
working for the Lion Group. Time is taken during training
to confirm their familiarity with the charter’s entire
contents and their compliance awareness. The chartercan also be publicly accessed via the Lion website.
Compliance activities are conducted according to anannual program and involve employee awareness surveys
and implementation of regular education programs
at each workplace. Compliance education includes
e-learning programs and rank-based programs, such as
lectures by outside speakers for managers and training
for new employees and new managers.
In 2009, an e-learning program on harassment washeld for all Lion Group employees and directors.
The Legal Support Caravan, facilitated by Legal
Department personnel and outside legal experts asteachers, is a legal education program launched in2008 for individual job types and divisions to encourage
compliance with corporate ethics and related legislation.
The program was implemented for 21 divisions in 2009.

Employees of the Lion Group generally notify or consult
with their supervisor, such as the department head,
when they recognize an illegality, infringement of theLion Group Charter for Corporate Behavior, or otherinstance of non-compliance. For cases where that is
not fitting, or is unfeasible, a Heart Hotline internalreporting system has been set up as a contact point for
consultation. A pamphlet distributed to all employees,
including temporary employees, explains the rules
for operation of the system, such as instructions formaking contact and prohibition of unfair treatment of
employees using the system. A survey found that 96%
of all employees knew about the system, but we will still
continue activities to promote awareness and improve thesystem’s trustworthiness. Business partners can also use
the hotline and contact information is available on the
Company website.
In 2009, all 17 instances of consultation or reporting
were met with quick responses and resolved. No instancesof grave misconduct were found.

All Lion Group employees are asked every year tocomplete a compliance awareness survey as a way tomonitor compliance system effectiveness and complianceawareness among employees.
The fiscal 2009 survey (conducted in February2010 with a 94% response rate from around 4,000
employees) drew a large number of opinions on matterssuch as problems with work environments. Findings arereported to management and feedback is provided toindividual divisions through department heads in order
to communicate issues within the same workplace orcompany. This contributes to the maintenance andstrengthening of compliance systems.
● Percentage of Employees Who Received Survey Feedback

0

20

2007
2008
2009

40
56.0 %

60

80

100

42.6%

72.5 %

1.4%

26.5%

80.3%

(%)

19.3%

1.0%

User (Lion Group employee or business partner)

Situation control/issue resolution

Compliance Awareness Surveys●Heart Hotline Overview

Consultation/
notification

14 CSR Report 2010

Not received

No response

Feedback

Report on details

Internal contact

External contact(Director, Corporate Ethics)(legal representative)

Reporting

Report on findings
and action taken
Instruction

Chairman of Corporate
Ethics Committee

ReportingBoard of Directors

Corporate Ethics
Committee
Established when determined necessary

Ethics Evaluation Committee (comprising outside experts)●Heart Hotline—Consultations and Notifications (2009)

Power harassment
behavior
34%

Other
18%
Accounting/asset
management issues
12%

Total cases:

17

0.3%

(FY)
Feedback received

Consultation/
notification

Feedback

Sexual harassment
12%

Personnel/
labor management issues
24%CategoryObjectives

Major Activities

Future Issues

・Director compensation structure partially revised based onCompensation Advisory Committee recommendation

Strengthen internal
controls

・Make improvements and revisions
・Launched systems for evaluating and auditing internal control
・Continue appropriate implementation
over financial reportingof systems for evaluating and・Revised internal control systems
auditing internal controls

Maintain andstrengthen
compliance systems

・Formulated full-year compliance activities program based on
PDCA cycle・Implemented e-learning program on harassment

Strengthen risk
management

・Partially revised business continuity plan (orders, production)
・Disseminated guidelines for responding to new influenza viruses ・Regularly review planand flexibly applied them to less virulent strains

Improve corporate
reputation throughcommunication

・Established framework for corporate communication
・Held Stakeholder Dialogue on safety and reliability

Provide safe andreliable products・Extended product management system coverage to relatedcompanies in Japan・Expanded seminars on utilization of customer opinion to
include new Assistant Manager of all departments

Employees

Establish
good working
environments

・Formulated phase 3 action plan in line with Act on
Advancement of Measures to Support Raising
Next-Generation Children
・Enhanced health guidance (“healthy menus,” etc.)

Shareholders
and investors

Increase numberof long-term
shareholders

・Held briefings for individual investors (1,300 investors in total)and events concerning environment and female investors
・Increase number of individual
investors
・Received three awards for company’s investor
relations website

Business
partners

Promote CSR
procurement

・Notified business partners about CSR procurement principles
・Improved questionnaire coverage

・Enforce questionnaire and fully
enforce procurement principles

Foster awareness oforal health・Commenced online streaming of Mass Tooth Brushing
Exercise for School Children

・Increase number of schools
participating online

Strengthen nature
protection activities

・Implemented forest maintenance exercise for new employees

・Conduct evaluations relating to forest
maintenance and biodiversity

・Fully establish PDCA cycle forcompliance activities program・Maintain and improve trustworthinessof Heart Hotline

Employees and Lion・Ensure two-way communication

・Strengthen quality assurance systems
for overseas products
・Substantiate customer perspectives
・Secure diverse human resources, suchas through rehiring of employees
who voluntary resign from company
・Strengthen employee training andeducation systems

Shareholders/Investors
and Lion

Customers

Customers and LionStrengthen
governanceManagement

Lion and CSR

Lion’s CSR Activities and Issues (2009)

Business Partners
and Lion
Society and Lion

Society

The Environmentand Lion

Environment

See p.36 onward for environment-related discussion

CSR Report 201015

Customers and Lion

Explanation of products in Communication Center

Product safety is top priority
for customer peace of mind
Under a quality assurance system based on its quality policy, Lion seeks to ensure provision of superior
products. We also promote advancing the development of safe and high-quality products that satisfy thedemands of customers.
development, manufacturing, sales, and response tocustomers—to ensure customer satisfaction.
We listen and respond to the opinions of customers aspart of persistent efforts to improve quality, thereby enabling
creation of products that will enhance customer satisfaction.

Approach to Safety and Quality
Lion implements quality assurance activities throughout
all its corporate activities—product planning, product● Ensuring Safety and Quality

Greater customer
satisfaction

Increases in customer
satisfaction and level ofquality give customers
greater satisfaction andcreate an upward spiral

Customers
Reply / action
Customers’ opinions

5 Response to customers
Customer opinion is reflectedin product development andcustomer service.

1 Product planning
Customer opinion is reflected inplanning in the form of quality
objectives that will ensure
customers are fully satisfied.

4 Sales
Product information is communicatedin an accessible manner via stores andmedia, such as television andnewspapers, to ensure accurate
knowledge about quality.

2 Product

3 Manufacturing

Products are developed
based on quality objectives.

Strict management of raw
materials and processes leads
to manufacture of productsof a consistent quality.

development

16 CSR Report 2010

OpinionImplementing Quality Audits

Strengthening Quality Assurance System

CS/PL Committee

Planning Division Quality
Control Manager(Director of Planning &Coordination Department)

Production Division
Quality Control Manager(Director of Production
Coordinating Department)

R&D Division
Quality Control Manager(Director of Research
Planning & Administration)

Divisions

PlantsResearch facilities

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

2. L ion thoroughly pursues safety andfunctionality in all of its products
Thoroughly pursuing safety features, Lion is
actively engaged in improving product capabilities.

3. Considering the global environment
Reducing the burden of products and services on
the global environment, Lion is aiming to createa sustainable society.

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

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

The Environmentand Lion

Lion operates a product management system that allows
steady and rational development of “safe and highquality products useful in daily life” in accordance withquality policy. The product management system defines
flows and the framework for quality assurance processes
based on ISO 9001 (JIS Q 9001) to be carried out during
each stage of product development (strategy, planning,development, manufacturing, sales, and improvement or
discontinuation). Quality verification meetings are held
during the development stages, subjecting products torigorous quality checks and confirming that quality meets
customer demands.

The mission of Lion Corporation is to provide superior
products and services that are useful in daily life, whileachieving customer satisfaction and trust. Ceaselessly
implementing quality assurance activities, the Company isstriving to increase customer satisfaction.

Society and Lion

Operating Product Management System

Quality Policy

Business Partners
and Lion

Chair: The director responsible
Secretariat: CSR Promotion Dept. (Quality Assurance Office)Members: The heads of Planning, Production, R&D, andHeadquarters Staff divisions, and Customer Center

Lion raises employee awareness of product quality andsafety through quality education and training programs
to promote development of safe, high-quality products.
Seminars on Utilization of Customers’ Opinions,
implemented since 2005, are opportunities for employees
who usually do not respond to customers to listen tocomments from them in person. From 2005 to 2008 theseminars were implemented only for employees from
Business Department and Developmental Research,
but the initiative was expanded in 2009 to include new
assistant managers in all departments.

Shareholders/Investors
and Lion

Executive Committee

Instilling Quality and Safety AwarenessAmong Employees

Employees and Lion

● Quality Assurance System

The audit controller and auditing personnel regularly
implement quality audits of Lion and its subcontractors
and conduct improvements as required. In 2009 as well,after closely reviewing the timing and evaluation results ofthe previous audits, quality audits were implemented after
selecting target plants of Lion and its subcontractors.

Customers and Lion

To advance company-wide quality assurance activities, Lion1
has formulated a quality policy and established the CS/PL
Committee, comprising members from the CSR Promotion
Department (Quality Assurance Office), the Customer
Center, and Planning, Production, R&D, and Headquarters
Staff divisions. The committee is charged with coordinating
Lion’s quality assurance activities and assumes a quality
assurance perspective in company-wide promotion of legal
compliance, setting of voluntary standards and objectives,and development of safe, high-quality products, while
also ascertaining progress made in response to issues.
As Lion’s business includes the manufacture and sale of2
pharmaceuticals , the quality assurance system conforms
to industry standards.
We are also establishing a system that allows us toact swiftly in the case of serious accidents involving Lion
products. Under this system, Lion will respond proactively
to affected or harmed parties, making information available
to customers and the authorities, recalling products, andformulating measures to prevent a reoccurrence.

Lion and CSR

Quality Assurance System

March 28, 2008

1. CS: Customer Satisfaction
PL: Product Liability
2. Pharmaceuticals: Drugs, quasi-drugs, cosmetics, and medical equipment subject to Japan’s Pharmaceutical Affairs Act
CSR Report 201017

Customers and Lion

Product Creation that Emphasizes
Safety and Quality

Customers

Lion has established a quality assurance system centeredon customer opinion and strives to provide safer, higherquality products through deliberation and evaluation ofsafety and quality at each stage of business.

Apply toproduct planning

1 Product planning
Designing products that will give customers greater satisfaction

Marketing researchMarket Analysis
Market and competitor trends are
surveyed and analyzed.

18％

Customer opinion

34％

Customer opinion is utilized toascertain requirements andopinions on products.

12％
12％

5 Response to24％

Customer Research
Customer lifestyles, purchasing
behavior, mentality, needs,
and wants are surveyed.

customers

Utilizing customer opinion to
improve quality

Product
development
andimprovement

See example on p. 20

Analysis/deliberation

Efforts are made to tie
customer opinion to
performance, labeling,or other improvements,
and to new productdevelopment.

Findings from customer opinion and marketing research are used
to develop product concepts.

Planning proposals
Quality objectives are established based on opinion from customers.
Preparing product proposals

Product Planning Meeting
Executive Committee

Product proposals are approved after discussion.
See example on p.20

2

Product development
Building safety and quality into products

Study contents, containers, production methods, facilities,
and labeling for achieving quality design
Contents and containers

Production methods and facilities

Labeling

Production Engineering Meeting
Outcome of development isapproved after discussion.

Product Planning Meeting
Commercialization of product isapproved after discussion.

使用方法
使用上の注意Study products from standpointof safety, function, performance,
usability, and other features.

Factors such as quality of raw
materials and productivity are
considered.

Executive Committee
Commercialization of product is finalized.

Clarity of labeling is studied.

See example on p.20

Quality Verification Meeting (design to development)
Verification of the appropriateness of quality objectives andmatters deemed crucial to development.

18 CSR Report 2010

Quality Verification Meeting(design to manufacture)
The suitability of the developed product is verified.

Process Safety Verification Meeting
Safety assurances for manufacturing
processes are verified.

Lion and CSR● Inquiries● Comments● Suggestions, etc.

Customers and Lion

4 Sales
Providing information
on product quality
Reply / Action

Reporting via Voiceof Customers(VOC) daily letter

Sales

In-store activities
involving distribution ofsamples and information
displays are
implemented along with
communication via
television, newspapers,
and other media todeepen anunderstanding ofproducts by ourcustomers.

CustomerCenterWholesalers and retailers

Feedback on product problems isused to prevent reoccurrence.
Product complaints and inquiries areused for improvements, newproduct development, andcommunicating information.
See p.21 for details

Information
sharing system

Consultation
support databasePing-pong System

Business Partners
and Lion

Information is provided
to wholesalers andretailers to ensure theiraccurate knowledge
about the features,usage, and quality of
products.

Shareholders/Investors
and Lion

Planning,
Development,
Production,
Sales, andAdvertising
divisions

Employees and Lion

Directors,
corporate
auditors,
executive
officers

Phone, letter, e-mail, etc.

3 Manufacturing
Society and Lion

Verifying quality in mass production

Trial
販売
manufacturing

Manufacturing

Storage(shipment)

Standards andspecifications are
established, and the qualityof raw materials is verified.

The go-ahead for full-scale
production is given after
confirmation of
manufacturing quality andproduction capacity.

Products of a consistentquality are manufactured
according to productionplans.

Products manufactured inplants are stored undersuitable conditions andmanaged to ensure
freshness and quality.

CSR Report 2010

The Environmentand Lion

Preparations

19

Customers and Lion

Utilizing Customer Opinion
Lion places great value on customer opinion in productcreation. Opinions from customers, received directly or as

Product Planning for TOP NANOX

unvoiced opinions identified through studies of customer
behavior, are applied in new product development
and improvements to existing products. This action is
illustrated in the following examples.

A solution for “irremovable odors” customers thought washing could not resolve

To consumers, the most important function of detergents isthe ability to remove stains. We have also learned that around
90% of consumers smell laundry items after they have been
washed and dried, with a large proportion smelling to checkthat stains have completely disappeared. People
want a detergent that will leave no trace of astain, removing even the source of odors.
TOP NANOX uses a proprietary
formula containing the cleaningingredient methyl ester ethoxylate (MEE).

It effectively breaks down and eliminates stubborn odors
through “nano-washing.”
We hope to continue to amaze and impress customers bydeveloping detergents that raise the standard for clean laundry.
● Desired detergent benefits and functions

0

20

40

80

100 (%)

86

Removes stains

60

Removes odors

52

Removes sebum

Naoko Matsui

No odor when half-dry

Fabric Care Business Department
Household Products Division(Source: Lion, September 2009; 824 respondents)

Safety Assessment of Lion Products

60

44

Various usage styles envisaged for risk management

From a scientific standpoint, there is no substance anywherethat can be considered absolutely safe regardless of how it isused. That is why we check all ingredients used in our products
by gathering safety information from academic papers andtechnical documents published around the world.
At the same time, we envisage a wide
range of usage styles matching situations inwhich our customers will use products andpainstakingly confirm whether ingredients
really are safe for day-to-day use. For this we

employ technologies relating to biological systems, applying suchfields as molecular biology or physiology, and other technologies.
It is my wish to see customers happy because we haveprovided them with good products. We will continue to fully
assess the safety of Lion products created by the development
team while thinking of our own family members and loved ones.

Toshiharu Takei
Safety trial using
cultured cells

Human & Environmental Safety Evaluation Center
Research & Development Headquarters

Development of Portable KireiKirei

Product satisfying customer needs for use “anytime, anywhere”

KireiKirei Medicated Foaming Hand Sanitizer was developed
due to customers’ growing awareness of cleanliness andfear of disease infection. When the product was launchedin October 2008, only a small percentage of customers
actually used hand sanitizers despite knowing about them.
When KireiKirei first went on sale, many customers inquired
about the product. The inquiries gathered
momentum in 2009 with the outbreak of
a new influenza virus. Use of sanitizers
increased (20%) and the number ofinquiries jumped, most asking for the

Ryuji Imai
Beauty Care Business Department
Health Care Products Division

20 CSR Report 2010

introduction of refills and portable sizes.
As sanitization had caught on among customers, with moreusing sanitizers several times a day, and due to requests for a
product they could use “anytime, anywhere,” we launched arefill in November 2009 and a portable size in March 2010.

KireiKirei MedicatedFoaming Hand
Sanitizer(250mL)
Responding tocustomer needs

Refill(230mL)

Portable size
(50mL)

Designated Sales name: Lion Hand Foam
quasi-drug Indications and effects: Washing and sanitizing of hands and skinInquiries and Claims from Customers

Product complaints

Inquiries(unsatisfactory effects, usability*, etc.)(product features, usage,
outlets selling products,
safety, etc.)

8%

83%

Product problems

9%

Total:

89,637

Strengthening Functions
for Response to Customers

by Consumer Service Office80,00081,08490,70687,71389,637

2007

2008

2009

60,00040,000Business Partners
and Lion

In January 2010, the Consumer Service Office wasseparated from the CSR Promotion Department andrenamed the “Customer Center” in order to strengthenfunctions for maintaining response to customers. We
designed a system that would allow us to listen closer tocustomers’ needs and strengthen our ability to respondand communicate in an appropriate manner. We havealso strengthened in-house frameworks for reflecting
opinions fielded from customers.

● Number of Inquiries and Claims Received

100,000

The VOC daily letter system was introduced in 2008 to
enable a quick response to opinions from customers.
The daily letter is a tool for reporting directly to membersof the Executive Committee for Product Planning aboutinquiries and claims received from customers and deemed
to have a major influence on customer satisfaction.
In 2009, 309 messages were issued. Additional
efforts were made in 2009 to ensure more thoroughimplementation of PDCA cycles. Each department isrequired to determine whether and what measures are
required, and when to implement them, and to report
those conclusions to management and Quality Assurance
division. Quality Assurance division follows up on progress
made. We will continue to strengthen this system toimprove in-house sensitivity to customer needs.

Shareholders/Investors
and Lion(defective usability,
damage to property, etc.)

VOC Daily Letter

Employees and Lion

● Breakdown of Inquiries and Claims (2009)

Customers and LionAround 90,000 inquiries and claims were received via theConsumer Service Office during 2009 (a 2% increase from2008). Overall, 83% were inquiries about product usage,
outlets selling Lion products, safety, or other information.
Up to 2008, among customers who contacted us andwere willing, we distributed a questionnaire concerning
the quality of Lion’s response to their inquiries. In 2009,questionnaires were distributed randomly to increase
objectivity. Out of 138 respondents, 128 gave our responsehigh marks, saying they were “satisfied” or “mostly
satisfied.” In the future we will analyze reasons why somepeople were “mostly dissatisfied” or “dissatisfied” andtake steps to make further improvements.

So that people with visual impairments will also feelat ease using our products, we publish the Lion ProductCatalog in Braille, SP code, and large-print, and issue
an e-mail magazine called Lion Products and Lifestyle
Information Oto (Audio) Mail, offering useful information
for day-to-day living that can be read out using text-tospeech software. These are provided free-of-charge tointerested parties.

Lion and CSR

Response to Customers

20,00002006

Fabric and living care

Pharmaceuticals

Other* The 2009 report contained erroneous data for pharmaceuticals andfabric and living care categories that have been corrected.

Communication

Voluntary recalls of Varsan Hyosatsu Jet Spray for Flying
Bugs and Varsan Hyosatsu Jet Spray for Creeping Bugs
have been implemented since August 27, 2007, in
response to combustion incidents. As of March 31,
2010, the rate of recalled products was 45.6%, or 1.48
million products. Please make sure to return theseproducts if you have any.

Contact number for Varsan Hyosatsu
Jet Spray returns:
Toll-free phone: 0120-670-225 (in Japanese only)
Hours: 9am to 5pm (except Saturdays, Sundays
and public holidays)

The Environmentand Lion

Lion’s website provides information on products,
campaigns, and discontinued products, as well as usefultechniques for daily living such as those related to laundry
and oral care. Other information provided includes
answers to frequently inquired and how to deal withaccidental ingestion of products.

Recall Status for Varsan Hyosatsu Jet Spray
Society and Lion

Oral and beauty care

(FY)

* usability: Customer dissatisfaction with aspects other than the product itself

CSR Report 201021

Employees and Lion

A group exercise during new employee training

Creating a bright and dynamic workplace
Lion upholds the individuality and personality of employees through fair treatment and human resource
development programs. The Company also looks after the physical and mental health of employees
through initiatives aimed at creating comfortable work environments.

Human Resource Diversity
Approach to Utilization of Human Resources
Lion’s founder used to say, “Employees are partners
in the Company.” This idea is reflected in the LionGroup Charter for Corporate Behavior, which refers to
respect for “human rights”and respect for the“diversity,
individuality and personality” of employees. Lion respects
the individuality and personality of all employees andhelps them to hone their skills and abilities and stayhealthy in body and mind. We will continue efforts
in line with the Behavioral Guidelines to eliminate all
discrimination and to create work environments where
employees will enjoy and be content with their jobs.
Annual risk management and compliance activities
and internal audits found no instances of grave
misconduct during 2009 concerning human rights issues
in the workplace.

22 CSR Report 2010

Fair Treatment of Employees
Lion aims to create workplaces where fair treatment
ensures that all employees will find their jobs rewarding.
Systems of management by objective and self-assessment
are employed for determining treatment for employees,
and a framework is in place for providing feedback from
regular evaluations and interviews by superiors to increase
the understanding and motivation of each employee.

Promoting Amiable
Labor-Management Relations
Lion organizes regular dialogues between employees
and management, placing importance on a relationshipof trust. Meetings between labor and management areheld for exchanging opinions and reporting on working
conditions and environments in order to promotemutual understanding. One development in 2009 wasa consensus by labor and management to jointly pursue
initiatives relating to work-life balance.
Lion operates under a union shop agreement.

Promoting Workplace Diversity● Employee Data

Regular employees
New employees
Rehired retirees

Childcare leave users

Yoshinori Yayoshi

Systems Department(Male)

1,965

1,934

1,883

531

546

566

(Male)

55

57

40(Female)

35

25

31

(No. of people)

51

78

117

(%)

2.0

3.1

4.8

21.3

22.0

23.1

(No. of people)

30

32

32

(%)

4.3

4.7

4.8

(No. of people)

45

45

48

(%)

1.8

1.8

2.0

(No. of men)

3

3

5

(%)

5.5

4.4

7.0

(No. of women)

38

36

38

(%)

100

100

100

(Male)

0

0

0

33

34

40

Average overtime per month (hours)

9.2

10.7

10.3

Annual paid leave used (%)

48.6

Departures within three
years of entering Company(Female)

43.0

45.2

(No. of people)

9

8

6

(%)

4.1

3.8

3.0

The Environmentand Lion

Reduced hours forchildcare

2009

Society and Lion

Disabled employees

2008(Female)Female employee ratio
Female managers

2007

Business Partners
and Lion

I reached retirement age in 2009 and applied for rehiringunder the standard job system for employees whoreached mandatory retirement. This means I am still inthe same workplace I was before retirement, doing thesame work, designing sales administration systems.
After joining Lion, I worked for 17 years inmarketing and 18 years doing work relating tosystems, particularly sales administration systems.
During that time, I always used systems developed inhouse, but I only joined this department, where thesystems are developed, two years prior to reachingretirement age. Still, I was highly familiar with thesystems and was good at determining what kind ofsystems users consider easy to use. I believed I would
never find a workplace like this where I could apply myexperience, so I definitely wanted to apply for rehiring.
Even now, I get enormous satisfaction from my work.
I may have a different status from before interms of responsibilities and authority, but I want tocontinue making the most of myexperience to develop useroriented systems.

Shareholders/Investors
and Lion

VOICE
Reason for applying—right workplace for
applying my experience

Lion wants former employees who left the Company
to engage in childcare or nursing care, for example, toreturn to work and contribute their services once again,
drawing on their career experience.
In May 2009, we introduced a system for rehiring
employees who resigned for personal reasons. The aimof the system is to urge former employees to rejoin
the Company and apply their skills. Anyone can apply,
regardless of the reason for resigning, length of service,or time elapsed since resigning.
Rehired employees can choose to participate ineither a Return to Career scheme, rejoining as a regular
employee, or a Return to Job scheme, allowing themgreater flexibility as full-time non-regular employees.
This enables employees to accommodate childcare andnursing care requirements.
In February 2010, two former employees rejoined theCompany, the first to take advantage of this system.

Employees and LionIn April 2006, Lion began rehiring employees whoreached the mandatory retirement age. Three systems arein place: rehiring for standard jobs, whereby employees
apply for a desired position from a list provided by theCompany; rehiring for highly specialized jobs, whereby
the Company appoints employees with indispensable
knowledge and expertise; and rehiring for management

Establishment of System
for Rehiring Former Employees

Customers and Lion

Rehiring of Employees on Retirement

Lion and CSR

To prevent any adverse effect on employees’ potential for
promotion or advancement due to childbirth or childcare,personnel evaluations examine the overall context. As aresult, the ratio of female managers is rising.
Lion also actively hires disabled people. The Company’s
disabled employee ratio rose to 2.0% in 2009, having
surpassed the 1.8% statutory ratio at the end of 2007.
Temporary and part-time personnel are also employed
for certain positions due to their diversity and flexible
work patterns. They account for roughly 8% and 9%,
respectively, of the workforce.

positions, whereby employees continue to apply their
management expertise in a managerial role.
In the five years since the initiative was launched,around 65% of retiring employees have applied for
reemployment and continue to work energetically,
applying skills, knowledge, and experience accumulated
over the years.

* “New employees” includes new employees hired mid-year. After close
inspection, 2008 figures for “Departures within three years of entering
Company” were corrected.

CSR Report 201023

Employees and Lion

Assisting Work-Life Balance
Support for Development of Next Generation
Development of the next generation of employees isa pressing issue given Japan’s low birthrate and aging
population. Having achieved action plans formulated
in line with the Act on Advancement of Measures to
Support Raising Next-Generation Children, Lion has beenrecognized by the Japanese Ministry of Health, Labourand Welfare as a company proactively supporting abalance between work and childcare since 2007. During
this time, we extended the time frame for working
reduced hours in order to care for children to the end of
the child’s first year of elementary school, and promoted
flextime and other flexible working arrangements.
A high proportion of women, 100% in fact, takeadvantage of childcare leave. The number of men who
take childcare leave is also steadily increasing, with men
in Research and Headquarters Staff divisions leading
the way. In 2009, childcare leave was taken for the firsttime by a male employee in a Production Division. The
system appears to be becoming a fixture in workplaces
with more people applying of their own accord rather
than seeking advice or support from a Personnel Division.
Seven male employees took childcare leave between April
2009 and May 2010, accomplishing in just over a year
the “seven or more employees in two years” target in ourphase 3 action plan.
The phase 3 action plan, under way since 2009,
was formulated through joint deliberation by labor andmanagement and through consultation with employees
who are parents.

Next Generation Support
Act Phase 3 Action Plan
Period：April 2009 to March 2011
“Kurumin” logo recognizing
support for the next generation

Goals：
1. Have seven or more male employees take childcare
leave during the action plan period.

method (time cards). To reduce hours worked and promoteenergy savings, each business location designates one day
a week as “no overtime day,” encouraging employees toreturn home on time. In Headquarters Staff and Researchdivisions, a flextime arrangement is used to enable
employees to have greater control over their work styles.
In 2009, scheduled paid leave was granted with every
employee taking one day off during the six months from
April. Scheduled paid leave will be implemented again in 2010.

Volunteering Leave
Lion has two volunteer leave systems: special
volunteering leave (up to five days), supporting
participation in Company-specified activities; andstandard volunteering leave (using accumulated
paid leave), supporting participation in activities of apersonal interest. In 2009, 39 employees took special
volunteering leave (75 days in total).

In-house Magazine Urges Male Employees
to Use Childcare Leave
Lion actively encourages male employees to takechildcare leave believing it will lead to the developmentof a corporate culture that makes it easy for both men
and women to balance their work and personal lives.
An in-house survey found that one in four applicablemale employees wants to take childcare leave, but in reality
this is difficult without the understanding of superiors, theworkplace, and society. Effort has been made since 2006
to foster Company-wide awareness through the in-housemagazine, Tategami, which publishes articles on work-lifebalance and childcare leave for men.
In 2009, the magazine featured a discussion amongsix male employees who had taken childcare leave.
During the meeting, they talked about concerns they
had prior to taking leave and how taking leave hadstrengthened family bonds. They even discussed spinoffs for their jobs, such as customer perspectives andideas for improving job efficiency acquired throughparticipation in child-rearing and housework. Many male
employees opt to take leave after first consulting people
with experience. We therefore hope publicity in thein-house magazine will lead to more male employees
throughout the Company using this option.

2. Grant one day of scheduled paid leave in 2009.
3. Establish an intranet environment allowing employees
on childcare leave to access corporate information.

Article in in-housemagazine

4. Introduce measures for rehiring employees who
resigned for personal reasons.

Promoting Efficient Work Styles
We aim to create suitable work environments and ensurethat work is carried out efficiently. This initiative is aided bymonitoring of hours worked using an objective recording

24 CSR Report 2010

Discussing
childcare leave

● Standard Training Programs

Regular employees

Management

New employee training

Management training

Mid-career training
International workforce education program
Sales Division training

Specializedjob-based training

Administrative/Planning Division training
Research/Technical Division training
Production Division training

Research andstudy groups

Employee-initiated research and study relating
to their work.

Lion Challenge
Cup

An annual in-house contest whereby teams
present their research to executives.

General education,business skills,
qualifications

Financial assistance is readily provided tofund self-development expenses to promotea dynamic corporate culture of tenacity,
creativity, and learning.

Study

Global human resource training

Employees study at a business school
to enhance job capability and business
management skills.

Encouraging Innovation through Lion
Challenge Cup
The Lion Challenge Cup, a contest between teams of
employees presenting research on a theme of theirchoice relating to a product or business to the president
and other executives, has been held annually since 1999.
The contest is a demonstration of the “spirit oftenacity and creativity” upheld in Lion’s Management
Philosophy. For participants, the contest is a chance toimprove their powers of presentation and to broaden
their outlook, such as by expanding knowledge throughcommunication with divisions they otherwise have little
contact with. The Lion Challenge Cup has also given
birth to new products.
Winners are selected through employee voting via
intranet and a panel of judges comprising the president
and other senior managers. Voting for submissions helps
nurture a “spirit of tenacity and creativity” also among
non-participating employees. There were 105 submissions
for the 2009 contest, and seven won awards.

Society and Lion

The awards ceremony

The Environmentand Lion

Lion has systems in place to support employees by
allowing them to fully develop their tenacity andcreative potential.
Besides standard training programs, highly motivatedemployees have additional opportunities for skills
development, including elective training and selfdevelopment programs. The diverse lineup of selfdevelopment programs, in particular, helps employees
enhance their abilities.
Activities include the Lion Challenge Cup,an opportunity for employees to present self-initiatedgroup research directly to Lion executives, and a range
of initiatives for developing human resources capableof sustaining overseas operations in an age of global
business, including an international workforce education
program, job training at overseas affiliates, andpresentations at overseas conferences.

Domestic study

Business Partners
and Lion

Frameworks for Developing Tenacity

Employees visit Western nations with advanced
distribution and retail sectors to gain firsthand, real-time insight into the impact of
globalization on distribution frameworks,
thus helping to broaden their outlook.

Shareholders/Investors
and Lion

Job capability
enhancement
Rank-based training
International
workforce

Self-plannedoverseas training

Employees and Lion

Lion conducts rank-based training, career developmenttraining, and job-based (division-based) training
for all employees, offering programs according toqualifications, position, age, and job type.

An opportunity for employees to present
knowledge or technology developed throughwork or learning in an overseas symposium asa way to nurture skills for global business.

Joint research

Education and Training Programs

Presentations
at overseas
conferences

Customers and Lion

Innovation has sustained Lion’s business activities eversince the Company’s founding, and it is individual
employees with the ability to practice “tenacity,”“creativity,” and “learning” who generate theinnovation required to resolve business and technicalissues. Lion aims to foster a corporate culture oftenacity, creativity, and learning by developing humanresources with the individual resolve to overcome
problems and create new value.

Employees are sent to an overseas company or
research institute to engage in a broad range
of jobs, acquiring knowledge and skills for acurrent or future position.

Distance
learning

Corporate Culture of Tenacity,
Creativity, and Learning

Overseas job
training

Lion and CSR

Human Resource Development● Self-Development Programs

PRO TEC HEAD Shampoo Brush,a product originating from theLion Challenge Cup

CSR Report 201025

Employees and Lion

Employee Health Management
Employee Health is Comapany Asset
Lion views employee health as a most important asset,
both for the Company and for employees themselves,
and acts in line with its Fundamental Health Management
Policy. The policy places a focus on fostering a high degreeof self-supervision among employees and promoting
comfortable working environments. As a result, almost
all employees report for annual health checkups andindividual post-checkup consultations (health guidance).
The existence of well-organized health management
activities involving dialogues with industrial physicians
and nurses has facilitated the in-house implementationof specific health checkups and guidance for employees
aged 40 and above, as enforced by law since fiscal 2008.

Providing for Specific Health Checkups
and Guidance
Provision of specific health checkups and specific healthguidance for employees aged 40 and above has been a legal
obligation in Japan since fiscal 2008. Lion implements healthcheckups and health guidance with the cooperation of theCompany’s health insurance association under a five-year plan.
In fiscal 2008 and 2009, we used individual post-checkup
consultations available to all employees to promote disease
prevention, aiming to lower the risk of metabolic syndrome.
We are also working to reduce the number of
employees with, or susceptible to, metabolic syndrome
through continual improvements to the work environment
at all business locations, and have incorporated a related
provision affecting every employee into health, safety,
and disaster prevention plans at all locations.
These activities have resulted in a decline in thepercentage of employees found to be suffering frommetabolic syndrome (under health association criteria) despite
the average age of employees remaining roughly the same.
●E xamples of Initiatives for Insured Employees (FY2008-2009)

To lower risk of metabolic syndrome･Education via websites and group guidance･Over 80% implementation of health guidance (for employees applicable for
one-time or ongoing guidance, including affiliated companies), etc.
To reduce number of employees with or susceptible
to metabolic syndrome･Introduction and increased frequency of healthy meals in cafeterias･Calorie displays on soft drink vending machines･Reduction in number of smoking areas･Walking campaign, etc.
● Percentage of Lion Employees with Metabolic Syndrome

Employees with metabolic syndrome (%)
2008

8.0％

2009

6.7％

* LIS21: Lion life Innovation Seminar 21

26 CSR Report 2010

Age 35 Health Seminar (LIS21*)
Lion puts efforts into preventing lifestyle diseases andspotlights age 35, which is generally prior to the emergenceof health problems or health risks. Believing that theestablishment of good health while still young leads toprevention of diseases later on, we have been holding
overnight hands-on seminars since 2001, giving employees
the chance to consider their own health and identify issues
they need to act on with an eye to the future.
● Changes One Year After LIS21 Participation

Participants

No. with changed lifestyles

2005

110

99

%
94.3%

2006

120

111

92.5%

2007

86

79

91.9%

2008

91

81

89.0%

* Participants who did not attend interviews with the nursing staff one
year later because they were on childcare leave, or for other reasons,are excluded from percentage calculations.

Mental Health Initiatives
Mental health is a major issue both in terms of running a
dynamic corporation and managing risk. Placing importanceon early identification and prevention of mental disorders,Lion arranges in-house consultations with psychiatrists andclinical psychologists in addition to consultations with industrial
physicians and nurses. A contract has also been entered intowith an independent organization for providing telephone
consultation and counseling for employees and their families.
We are strengthening support available in the workplace,moreover, by educating managers, who we believe have an
important role to play concerning mental health issues.

VOICE
Health management to ensure employees arestill able to work up to 65
In 2010, we began preparing a new three-year healthmanagement plan. The objective, in light of recent
employment trends, is a system of health management
ensuring that employees can work dynamically andcheerfully, and highly motivated, until the age of 65.
New measures include efforts aimed at preventing
diseases and passive smoking, which involve increasing
no-smoking indoor areas at all business locations
and initiatives to help employees quit smoking. In
addition to activities undertaken thus far, I would
like to work with the healthinsurance association on an
analysis of medical costs andimplementation of othermeasures, such as effective
and efficient seminars.

Norihide NishinoueSupervising industrial physician

Company-wide Management of Health,
Safety, and Disaster Prevention

2008

2009

0

0

0

0

0

● Number of Work Accidents (excl. commuting accidents)

10
8
6

6

5

4

4

1

3

3

2006

2007

1
2008

4

4

2

2

1
2005

0

Production Division

Research Division

4
2
1
2009

(year)

Office Division● Work Accident Frequency Rate* in Production Division

1.2

1.10
0.90

0.9

0.88

0.84

0.6
0.3
0

0.00

0.00

2005

2006

Lion

0.72

0.74

0.71

2008

2009

0.00
2007

(year)

Chemical industry● Hours without Accident at End of 2009 (Unit：thousand hours)

Research Division

Production Division

Hirai

Honjo Odawara Fukushima Chiba Odawara Osaka

Akashi

6,050

390

480

400

90

2,760

2,430

1,800

The Environmentand Lion

In 2009, an exercise in quick restoration of operations
was conducted under the scenario of a Nankai zone
earthquake causing damage to the Osaka Plant andOsaka Office. Videoconferencing systems were usedduring the exercise to confirm headquarters’ capability
for providing support to the disaster response task force
located in a stricken area.
To ensure quick confirmation of employee safetyin times of disaster, individual divisions and businesslocations test safety confirmation systems through drills
at regular intervals.
Seismic reinforcement of Company-owned officebuildings has been completed. Seismic assessments andreinforcement of plants are also steadily progressing.
Work has finished at the Chiba, Odawara, andAkashi plants, and reinforcements are steadily being
implemented at the Osaka Plant.

Society and Lion

Each business location has established manuals for
ensuring the safety of workers and enabling swift andappropriate action in times of disaster. Drills are also carried

2007

Business Partners
and Lion

Response to Emergencies

2006

Shareholders/Investors
and Lion

Safety of Facilities
Lion is moving forward with verification of chemicalplant safety through inspections by an independent
organization. Following safety verification at the Chiba
Plant in 2005, the same methods were applied to theplant of the Fine Chemical Division of Lion ChemicalCo., Ltd., and to plants of overseas affiliated companies(in South Korea, Malaysia, and Thailand), with remedialaction completed in 2008. Recognizing the importanceof constant monitoring of chemical plants, we implement
inspections on a routine basis. In terms of plan
preparation, we introduced new risk-based maintenance(RBM) methodology as an efficient, quantitative
approach. Standards for administering changes to
production environments were also clarified to bolster
the safety of facilities.
Managers conduct reviews without fail according toschedules and all employees work as one to ensure everhigher levels of occupational and facility safety.

2005

Employees and Lion

Occupational Safety
Lion regularly invites instructors from inside and outside
the Company to provide safety education and guidance
to ensure that top priority is given to occupational safety.
In 2009, there were no major accidents involving people
or facilities (one lost time accident; six accidents without
lost time). Risk assessments relating to the handling ofchemicals were a special focus of improvements during
2009, resulting in the elimination of chemical injuries.
Our systems still can not be considered totally adequate,
however, and we will continue these efforts.

● Number of Facility Accidents/Disasters

Customers and Lion

Lion labor and management work together to ensure
safety based on the principle of “safety first.” Since
2003, when we established a health, safety, anddisaster prevention management system, we havecarried out employee education, principally in relation
to risk management, at each business location. In 2009,
we overhauled the Company’s system, reflecting theoccupational health and safety management system of theJapanese Ministry of Health, Labour and Welfare, revisedin 2006. Under its new system, Lion is currently working
toward the goals of zero accidents and zero disasters.

out on a regular basis and include safety confirmation
drills, evacuation drills, disaster leadership drills, firefighting
drills, and joint drills with municipal firefighters.

Lion and CSR

Safety and Disaster
Prevention Initiatives* Frequency rate: Number of people suffering lost time injuries ÷ Total working hours (unit: million hours)

CSR Report 201027

Shareholders/Investors and Lion

General Meeting of Shareholders

Lion places importance on communication with shareholders,
and responds to their trust and expectations through business activities
Lion endeavors to provide a stable return through corporate value enhancement and to ensure precise,
expeditious, and fair disclosure using information tools and events. Opinions are quickly and accurately
fed back to the Company for reflection in business activities.

Information Disclosure
and Communication
Providing Accurate Information at Right Time
Lion conducts a number of events to ensure that
corporate information is communicated in a precise, fair,
and timely manner to investors in Japan and overseas.
Besides earnings briefings, business briefings, newproduct briefings, and other presentations to securities
analysts and institutional investors in Japan, energy
is directed into overseas communication, including
participation in events organized by securities companies
attended by a large number of overseas investors.
We also hold regular Company introductions forindividual investors. During introductions, we explain ourbusiness and strategies and present a broad range of
information from environmental considerations and social
contribution activities to useful hints for living.
In 2009, 12 Company introductions were held
across Japan, attended by more than 1,300 investors.
Specifically, plant tours were conducted in Chiba (June)and Osaka (November), during which quality control andother manufacturing site initiatives were explained.
Also, an environmentally themed investment forum

28 CSR Report 2010

(August) included presentations made in person by thepresident and employees in charge of environmental
action and product development to promote greater
understanding among investors.
Lion remains committed to communicating withinvestors through all kinds of events.

Exhibition booth at“IR & ECO” forum(sponsor：Tuvalu-forest
Corporation; August 9,
2009)

Enhancing Communication Tools
The “Investor Information” section on the Company
website was created to make information available to as
many investors as feasible in an expeditious and fair manner.
The section provides an overview of business activities
and results so that investors can readily confirm theCompany’s status. Also available are various referencematerials relating to business strategy, financial data,and settlements of accounts. Features such as anShareholders owning 1,000 shares or more on December
31 each year receive a complimentary assortment ofpredominantly new Lion
products the following
March. By introducing
products we try to
encourage shareholders
to become loyal Lion
supporters.
New product sample set sent toshareholders in March 2010

Incorporating Feedback from Capital Markets● Information Concerning Shares (as of December 31, 2009)

Other corporate investors 18.08%
Foreign investors 4.21%

Number ofshareholders

Financial institutions 37.82%

Society and Lion

Securities firms 0.24%
Numberof shares

Individuals, Other (including
treasury stock) 39.65%

Individuals, Other (including treasury stock) 98.46%
Securities firms 0.08%
The Environmentand Lion

Foreign investors 0.31%
Other corporate investors 0.99%

Providing a Return to Shareholders

Business Partners
and Lion

Lion is selected for the FTSE4Good IndexSeries, a global indicator for socially
responsible investing.

Shareholders/Investors
and Lion

An important investor relations function is to disseminate
inside the Company valuable feedback from shareholders
and investors. Opinions and other comments received
during meetings with domestic and overseas institutional
investors and events for individual investors, including theresults of questionnaires, are communicated as feedback
to directors and others inside the Company each monthfor reflection in business activities. We are also working toraise employee awareness about relations with investors
in such ways as devising methods to facilitate access at
any time to the latest, easy-to-understand information on
the investor relations intranet site.

Lion Letter
FY2009 Interim Report toShareholders (September 2009)

FY2009 Report toShareholders (March 2010)

Employees and Lion

Lion attaches importance to dialogue with shareholders.
An annual general meeting of shareholders is held eachyear at the end of March at the Kokugikan (Ryogoku
Tokyo). Attendance at the 2010 meeting was 1,365
people. After the official proceedings, shareholders
are given the opportunity to meet with directors andview a display of new products to promote greater
understanding of the Company.
Close communication with shareholders is also
advanced through the Lion Letter and a report toshareholders, sent out in September and March,
respectively, containing information on earnings,
new products, and other matters.

Introducing New Products to Shareholders

Customers and Lion

Placing Value on Dialogue with Shareholders

potential. The annual dividend to shareholders during
2009 was ¥10 per share, the same level as in 2008.

Lion and CSR

investor relations e-mail service for news notification
and an inquiry form especially for investors demonstrate
the efforts being made to create a web environment
facilitating investor access to information about Lion.
The website has been independently recognized* for thequality of information provided and usability.
Investor relations leaflets containing general
information about the Company and, for example,
information about new product sample sets are also
created and distributed to a large number of individual
investors at events or at other opportunities to foster
a better understanding of the Company.
For overseas
shareholders and investors,
we operate an English
website and publish anannual report in Englishthat includes a message
from the president,
segment results, financial
data, and other detailed
Information for investors on theinformation.
Company website

Financial institutions 0.16%

One of Lion’s most important tasks is to provide a
consistent return to shareholders on an ongoing basis
by improving the Company’s consolidated earnings* Investor relations website awards: 2
 010 Investor Relations Site Ranking Excellent Website - Gomez Consulting Co., Ltd.
2009 Internet IR Excellent Company (sixth consecutive year) - Daiwa Investor Relations Co., Ltd.
2009 Excellent Corporate Website, Overall Ranking - Nikko Investor Relations Co., Ltd.
CSR Report 201029

Business Partners and Lion

Spring New Product Presentation for wholesalers and retailers

Contributing to a sustainable society in all
business activities, from procurement to sales
Together with its business partners, Lion intends to fulfill its role in the creation of a sustainable
society, taking an active interest in supplier approaches to matters such as legal compliance, quality,
environmental protection, labor issues, and human rights.
Procurement Principles
Since its foundation, Lion has been doing its utmost
to provide safe, high quality products and services that
promote healthy, comfortable lifestyles. Upholding thiseffort in the procurement of raw materials and thepurchase of products, and with the cooperation of ourbusiness partners, we shall:

1. Comply with prevailing laws and social norms
and engage in appropriate, rational transactions
with every business partner in a freely competitive
framework that is equitable, fair, and transparent;
2. Rationally select business partners on the basisof quality, cost, and timely delivery to fulfill our
responsibility to customers;
3. Fully consider throughout purchasing activities
our social responsibilities in such areas as global
environmental protection, labor, and human rights
toward creating a sustainable, healthy society;4. Respect the confidentiality of business partners’
information and intellectual property rights
and never engage in inappropriate or unethicalacquisition or use of such information or rights;
5. Never offer business entertainment, gifts, ormonetary compensation to unfairly obtain profit;
6. Fulfill our social responsibilities together with ourbusiness partners with a shared commitment tocoexistence and co-prosperity.
Established on October 1, 2008

30 CSR Report 2010

Realizing Sustainable Procurement
Approach to CSR Procurement
Lion carries out appropriate procurement of raw materials
and finished products in keeping with its Purchasing
Activity Principles and has promoted development of
a supply chain management system.
In 2008, we formulated the Procurement Principles,
a set of CSR procurement guidelines clarifying socialand environmental considerations. To aid thoroughcommunication of the principles, we regularly implement
a questionnaire among our business partners. Resultsof the questionnaire are analyzed and used to devise
dissemination methods.

Business Partner Questionnaires
To fully grasp the status of CSR activities pursued
by business partners, Lion has been implementing aquestionnaire since 2008 based on the 10 principlesof the United Nations Global Compact. Once theircircumstances are determined, business partners are asked
to make improvements. In 2009, the questionnaire was
extended to major business partners of overseas affiliatedcompanies. We asked 481 business partners in Japan and1overseas, including Lion Group companies , to acquaint● Efforts in Supply Chain Management

Raw material manufacturers
Manufacturing partners(Distribution)

Wholesalers(Sale)

RetailersSociety and Lion
The Environmentand Lion

To promote fair transactions with business partners
contracted to manufacture products, manufacturer
selection, transaction conditions, pricing, and othercriteria are determined through fair and transparent
discussions. Maintaining and developing fair and friendly
ties with manufacturing partners, based on coexistence
and co-prosperity, allows us to deliver higher-quality
products to customers in a timely manner.
In the area of compliance, especially, efforts are madeto educate employees to ensure conformity with the
Act Against Delay in Payment of Subcontract Proceeds,
Etc. to Subcontractors. This involves ongoing employee
participation in outside seminars with feedback on thecoursework being shared inside the Company.

Lion’s distribution policy is founded on coexistence andco-prosperity with wholesalers. The “Lion-kai,” a forum
for communication with wholesalers, with 259 members
as of January 1, 2010, is an opportunity to explain Lion’s
business, marketing, and sales strategies and, through an
exchange of opinions, to promote common awareness of
one another’s roles in increasing customer satisfaction.
In 2009, the Customer Development Department wasestablished to promote communication and resolution ofchallenges that lie ahead for Lion and related wholesale
and retail businesses.
At the annual Spring New Product Presentation, webring together all our new products, from household
items to pharmaceuticals and gift products, in one venue
to introduce them to wholesalers and retailers. Lion
researchers are on hand to provide clear explanations of
products, sometimes with demonstrations, while businessdivisions put forward selling and presentation methods.
Consistent with these initiatives to promote mutual
understanding with wholesalers and retailers, store
2
coordinators from a Lion Group company regularly visit
around 8,600 sales outlets to ascertain the needs of business
partners and customers, and thereby work to develop novel
and attractive store presentations for customers.

Business Partners
and Lion

Fair Transactions with
Manufacturing Partners

Working with Wholesalers andRetailers on Store Presentations

Shareholders/Investors
and Lion

Lion has sought to establish reciprocal relationships of trustwith all its suppliers. In response to the growing requirement
for CSR procurement in recent years, we readily send
employees to participate in seminars on purchasing andprocurement as part of efforts to train human resources.
Applying that knowledge, tours of raw material supplier
plants are conducted at suitable intervals, and suppliers are
selected after taking into account social considerations inaddition to safety, environmental adaptability, and quality.

Employees and LionFair Transactions with
Raw Material Suppliers

Lion teamed up with competitors in 1989 to establish
Planet Logistics Co., Ltd., for conducting joint deliveries
to wholesalers. The philosophy behind joint delivery
is, “Cooperate on systems, compete in the store.”
Manufacturers compete fairly in stores, but cooperate
on logistics in order to cut logistics costs, improve
the quality of logistics, and address environmental
issues. At the end of 2009, 19 manufacturers wereparticipating in the joint deliveries.
Fixed schedules, fixed volumes, bulk delivery, orderly
systems, and standardization, all achieved throughjoint delivery, also lead to operational improvements
and efficiencies within wholesale operations.

Customers and Lion

Lion and affiliates(Raw materials
procurement)(Manufacturing)

Teaming Up with Competitors on Delivery

Lion and CSR

themselves with the Procurement Principles and complete
a questionnaire. Responses were received from 353
companies (73.4% response rate, April 2010). No major
problems were discovered when evaluating the responses.

Lion-kaigeneral meeting
1. Surveyed Lion Group companies: Lion Chemical Co., Ltd., Lion Packaging Co., Ltd., Lion Trading Co., Ltd., Lion Hygiene Co., Ltd., Ipposha Oil Industries Co.,
Ltd., Lion Idemitsu Composites Co., Ltd. (formerly Calp Corporation), Lion Akzo Co., Ltd., Lion Daily Necessities Chemicals (Qingdao) Co., Ltd., Lion Chemical
Industry (Taiwan) Co., Ltd., Lion Corporation (Thailand) Ltd., Southern Lion Sdn. Bhd., P.T. Lion Wings, and CJ Lion Corporation.
2. Lion Field Marketing Co., Ltd. The company was formed through a merger between Lion Field Marketing Co., Ltd. and Leo Field Promotions Co., Ltd. in January 2010.
CSR Report 201031

Society and Lion

Local children participate in tree planting activities in Lion Forest in Yamanashi (April)Contributing to society through communitybased activities focused on health and comfort
Lion conducts activities in areas linked to the business themes of health, comfort, and the environment,
hoping to better the lives of people in the local community and throughout society.

Lion’s Social Contribution Activities
Lion’s central business themes—health, comfort, and theenvironment—are also the foundation for the Company’ssocial contribution activities. We conduct activities in eachbusiness domain, placing importance on cultivating a
volunteering spirit among employees.
Much energy is directed into communication andeducation about oral care, as has been the case since theCompany’s founding, and about conservation of water
environment. These efforts are directly related to ourbusiness activities.

even incorporated into new employee training in 2009,
with 63 new employees participating.
Lion was recognized for these activities, winning
the Chairman’s Prize in the 2009 Forest Thinning andThinnings Utilization Contest hosted by the Council for
the Promotion of Forest Thinning.
In March 2010, Lion received a forest development
and CO2 absorption certificate from Yamanashi Prefecture
after absorbing 3.67 tons of CO2 through Lion Forest in
Yamanashi activities during fiscal 2009.

Lion Forest in Yamanashi
Forests serve to absorb CO2, produce clean water, andcontrol flooding. In 2006, Lion established the Lion
Forest in Yamanashi with the objective of creating
environmental benefits by promoting sustainable
management and sound development of forests. We areadvancing forest maintenance activities and use of paper
made from forest thinnings.
Employees are encouraged to volunteer for forest
maintenance and more than 200 employees had
volunteered by the end of 2009. Forest maintenance was

32 CSR Report 2010

Acceptance of the Chairman’s Prize ofthe 2009 Forest Thinning and Thinnings
Utilization Contest (October 15, 2009)

Yamanashi Prefecture
forest development
and CO2 absorption
certificate (issued on
March 30, 2010)

● Selected Social Contribution Activities (2009)

Promoting Skywater Harvesting

Lion and CSR･Founded Student Best Poster Award (Lion Award) as part ofJapan Society on Water Environment (JSWE) annual conference
March

April

･Opened dental clinic pavilion at
KidZania Koshien･Presented Lion Awards, supporting
association activities relating
to preventive dentistry anddevelopment of young researchers(April, May, September, andOctober)

Customers and Lion･Hosted Lion Rugby Festival at
Chiba Plant

Employees and LionWith hopes pinned on effective skywater harvesting
as a solution to the world’s water crisis, Lion has been
supporting promotion of skywater harvesting since 2008.
One activity supported by Lion is a project run by theNPO, People for Rainwater. In 2009, through a summer
Saturday workshop for elementary school students (fourworkshops) and a one-off program for preschool children at
the Sumida Environmental Awareness Center, we supported
the project’s efforts to teach children about the blessingsof rain and how rainwater can be used. More than 120
children and their parents participated in the activities.
Another initiative is our continued support for
Rainwater Network Japan. We also make use of rainwater
for watering grass and plants and other activities at Lion
Headquarters and the Hirai Office.

･Constructed rooftop biotope at Hirai
Office’s new research facility
May･Held 66th Mass Tooth Brushing Exercise for School Children via
Internet (see p.35)･Selected support groups for the Lion TOP Eco Project’s Japan
Clean Water Foundation and implemented second year of activities(including 2nd Waterfront Painting Contest) (June-August)
JunePlant Tours● Plant Tours in 2009

Plant

Chiba

OdawaraOsaka

Akashitotal

No. of tours

109

147

37

45

338

Participants

2,691

3,211

1,162

1,540

8,604

･Implemented Sumida River Fireworks Project, inviting residents
of children’s homes to watch Sumida River Fireworks Festival
July

August･Held science education programfor elementary school students in
Edogawa City, Tokyo (July-August)･Held lessons during summer holidays
to teach elementary school students
and parents living in vicinity ofbusiness locations about handwashing, tooth brushing, and gargling

Society and Lion

Plant tour for elementary
school children (Chiba
Plant) (February 27, 2009)･Sponsored 10th Japan Water Award

Business Partners
and Lion

Plant tours are valuable occasions for contact withcustomers. We readily accept tours, viewing them asa good opportunity to introduce Lion products andexplain initiatives relating to safety and the environment.
We continually review tour routes and programs toensure that participants go away with feelings ofassurance and friendliness toward Lion products.

･Employees in Odawara area andtheir families participated in Clean
Sakawa cleanup campaign along
Sakawa River

Shareholders/Investors
and LionChildren learn kusakizome natural dyeing
techniques using
rainwater(August 1, 2009)･Provided support for Rainwater
Network Japan’s national conference
September ･Donated ¥1 million to aid victims of Western Sumatra earthquake
November･Contributed to development ofnext generation through support
for charity baseball event for kids
(Children’s Dream Fund)

The Environmentand Lion

December･Held Mass Tooth Brushing Exercise for School Children in Hong Kong

CSR Report 201033

Society and Lion

Activities of Lion Foundation for
Dental Health
Lion’s Oral Health Activities
Lion has engaged in communication and education about
oral care since its founding, in line with a philosophy ofproviding benefits to society using profits from businessactivities. In 1964, the Lion Foundation for Dental Health(LDH) was established to take charge of those activities
and engage in oral health research and promotion.
LDH contributes to society at the frontline of oral
health through activities in the four areas of oral
health, research, examination and treatment, andcommunication, in cooperation with dental associations,
universities, government authorities, and other parties.

Health, Communication, and Beauty
for Sound Body and Mind
LDH conducts a range of different activities under the“Ken-Ko-Bi” concept, which promotes a combination of
three elements—oral health, communication, and oral
beauty. By promoting these three elements, LDH aims
to help consumers maintain good oral health, as wellas good physical and mental health, and by extension
improve their quality of life.

Under the “Ken-Ko-Bi” concept, the foundation
implements oral health activities to support consumers inall life stages, from infants through to elderly.
● Four LDH Activity Areas

Oral Health (oral health promotion and education)
Examination and Treatment(dental exams and preventive dentistry)

The LionFoundation
for Dental
HealthResearch (surveys and research)
Communication (seminars and provision of information)● LDH’s “Ken-Ko-Bi” Concept

Enhance (Improve) quality of life

Healthier body

Healthier mind
Improvement
Advancement

Ken-Ko-Bi
Eat, Talk, Smile
Oral healthCommunication

Oral beauty● Selected Activities (2009)

Oral Health Activities forMothers and Children

Oral Health Activities for
Elderly

LDH supports child-rearing throughoral health activities for infants and theirparents.

LDH provides support for maintenance oforal functions so the elderly can continue
to eat using their own mouths and teeth.

31 locations, 31 occasions
Participants: 780 small children,
584 parents

48 locations, 54 occasions
Participants: 1,354

Oral Health Activities at
Kindergartens and Schools

Examination andTreatment

LDH provides direct guidance activities
for kindergarten and school children andtheir parents and supports activities ofhealth supervisors.

Highly specialized examination,
treatment, and preventive dentistry
activities of a high quality are provided
in line with the concept of risk
control dentistry.

404 locations, 526 occasions
Participants: 39,097 kindergarten andschool children, 1,712 parents,
and 2,070 health supervisors

Oral Health Activities at
Workplaces
Advice is provided to workers, principally
relating to periodontal disease prevention
and oral health care and promotion.
244 businesses, 518 occasions
Recipients: 30,515

34 CSR Report 2010

Recipients: 13,357

Tooth Brushing Book for
Visually-Impaired
LDH supervised publication of the
Sawatte Wakaru Tooth Brushing Book
(published in 2004 by Lion and Dai
Nippon Printing Co., Ltd.), a reader
incorporating universal design withtactile diagrams for the visually impaired.

Oral Health Activities at Schools

No. of teeth with caries (ave.)

4 4.63

4.30

Live Internet broadcast
from the Kokugikan stage

3.72
2.65

3

1.82

2
1
0

1.40
1985

1990

1995

2000

2005

2009

VOICE
Easy-to-understand materials help childrenchange their habits

Online Participation in Mass Tooth
Brushing from South Korea
On June 4, 2009, around 30 elementary school children
from the Japanese School in Seoul, South Korea,
participated in the Mass Tooth Brushing Exercise for
School Children via the Internet and engaged in twoway communication with the Kokugikan, the main
venue in Tokyo. The
children realized theimportance of chewing
by eating rice crackers,
and enjoyed learning
how to clean their teeth
using a mirror.

The Environmentand Lion

Takako MiyazakiChildren participating at
school via the InternetSociety and LionIn providing dental health guidance to children, it isimportant to impart accurate knowledge. The Mass
Tooth Brushing Exercise for School Children was idealin this regard. The children enjoyed learning about oral
health through novel activities such as participating ina video quiz while eating rice crackers. I even received
a good response from parents, who commented that
tooth brushing in the home had taken a turn for the
better. Establishing an Internet environment had somedifficulties, but it was worth
it given that children could
learn something in one hour
without any impact onother classes.

Business Partners
and Lion* Includes missing and filled teeth.
Source：Statistical survey of school health(Japan’s Ministry of Education, Culture, Sports, Science and Technology)

Yogo teacher (School Nurse)
Honcho Elementary School,
Kawaguchi, Saitama Prefecture

Shareholders/Investors
and Lion5

Employees and Lion●Average Number of Permanent Teeth with Caries Per Child at Age 12

Continuing since 1932, the Mass Tooth Brushing
Exercise for School Children typifies oral health activities
implemented by Lion and LDH. The event is held every
year during Dental Health Week (June 4-10) at the
Kokugikan (Ryogoku Tokyo), principally for elementary
school students in Tokyo. Fun ways are devised tofacilitate learning about the importance of oral health,
how to clean teeth, and so forth.
The 66th Mass Tooth Brushing Exercise for SchoolChildren, held on June 4, 2009, entered a new era with
the incorporation of Internet broadcasting, allowing
around 2,000 children at 25 schools, including a
Japanese school in South Korea, to participate online.
To incorporate Internet broadcasting, the event wasarranged to fit into school timetables. This made it easierfor schools nationwide to incorporate the event intoclasses and allowed a large number of children to learn
about the importance of oral health and tooth brushingmethods in real time together with dental hygienists.
Lion and LDH will continue to teach the importanceof oral health to as many children as possible throughthe Mass Tooth Brushing Exercise for School Children.

Customers and Lion

Lion has been carrying out oral health activities, teaching
the importance of oral health, since the inaugural Lion
Lecture in 1913. One such activity is oral health activities
for children implemented at schools. Based on theidea that instruction from an early age is essential fordeveloping good tooth brushing habits, lectures andguidance have been provided to encourage children tolook after their oral health and brush their teeth.
Rising health awareness in recent years has led toa dramatic decline in caries among children and LDH
has had to adjust its activities. Today, the foundation
incorporates “eating” and other themes besides
prevention of caries to teach children that oral health isvital for maintaining health of the entire body.
As well as providing direct guidance to school children,
LDH also supports the activities of school nurses andother health supervisors by providing seminars on oral
health and use of educational materials.

Mass Tooth Brushing Enters New Era with
Net Broadcasting

Lion and CSR

Teaching Importance of Oral Health“Eating practice” using rice crackers

CSR Report 2010

35

The Environment and Lion

Lion Forest in Yamanashi

To become a leading company inenvironmental friendliness
Environmental initiatives are essential for a company like Lion, which provides products for day-today living. Lion is committed to environmental protection activities, recognizing it has a role to playin realizing a low-carbon, recycling-oriented society and ensuring coexistence with nature.

Lion’s Environmental Activities (Eco Lion Activities)
Eco Lion activities are environmental initiatives Lion
carries out in all its business activities, taking into

consideration every stage from research and development
to raw material procurement, manufacturing at plants,
marketing, logistics, and sales, through to household
use and disposal. Lion’s Company-wide environmental
activities center on these five initiatives.

● The Five Eco Lion Initiatives

Reducing
greenhousegas emissions

Effectively
using andrecycling
resources

Fostering
environmental
P. 54
awarenesswithin the Lion GroupP. 46

Considering
environment
P. 47
from productoriented perspective

36 CSR Report 2010

P. 45

Appropriately
handling
chemical
substances

P. 52

In recognition of its advanced
environmental initiatives,
Lion has been certified as
an Eco First Company by
the Ministry of the Environment.

Customers and Lion

Lion’s business has an inherent link to water through theact of “washing.” The history of Lion’s environmental
protection activities, as carried out through its business,
can be told through our efforts to create products that do
not pollute rivers, lakes, or other waterways after use.

Lion and CSR

The scope of Lion’s environmental protection efforts
has expanded in recent years with new styles of activity
emerging, including support for academic pursuits andresearch, and environmental activities carried out withcustomers.
Continuing our efforts in environmental protection
will allow us to play a role in realizing a sustainable,
low-carbon and recycling-oriented society and ensuringcoexistence with nature.

Ongoing Efforts
to Protect Environment● Lion’s Environmental Protection Activities

Water
environment protection

1960s
Foaming of Rivers

Resource
conservation

Globalwarming prevention

1970s
Employees and LionRivers and other waterways became covered with foam due tothe low biodegradability of synthetic detergents.

Eutrophication
Eutrophication led to phenomena suchas red tide. One cause at the time was
the phosphorous contained in detergents.

1967: Introduced Dash , a laundry
detergent with excellent biodegradability.

1973: Introduced Seseragi phosphate-free detergent.
1980: Introduced the fully phosphate-free Murin TOP.
Shareholders/Investors
and Lion

1980s and later
Global Environmental Issues
Since the 1980s a spotlight has been shone on environmental
issues affecting the entire planet, revealing a need forconsideration of resources and environmental impact.

Social Activities

Use of Plant-Based Materials

1. Support for research andactivities relating to protectionof water environments● Renewable● Carbon neutral, therefore no additional CO2 is generated● Excellent biodegradability

Business Partners
and Lion

1988: Introduced High TOP
compact detergent.

Society and Lion･Founded the Lion Prize for the Japan Society on
Water Environment (JSWE)･Japan Water Award･Japan Stockholm Junior Water Prize● Less per-use volume, thereby reducing environmental impact

2. Promotion of skywater
harvesting

1991: Introduced Spark , a detergent
using plant-based materials

Support for Rainwater Network Japan

3. Joint efforts with customers
Lion TOP Eco Project● Comparison of CO2 emissions related to laundry detergent

Raw material procurement and manufacturing

High TOP , 1990

0

20

Transportation

40

60

Biodegradation after use

80(main cleaning ingredientis petroleum-based)

51％

TOP , today(main cleaning ingredientis plant-based)

reduction

100

Keeping theplanet beautiful
for future
generations

The Environmentand Lion

Today’s TOP

CO2 emissions per wash cycle (1990 = 100)

CSR Report 2010

37

The Environment and Lion

Environmental Management
and Promotion Structure
Having established a structure for environmental management, Lion implements environmental activities
throughout the life cycle of its products. Activities are continually improved through operation of anenvironmental management system and by raising the environmental awareness of employees.

Environmental Management System

Environmental Guidelines
Lion’s Environmental Guidelines adhere to the spirit of theLion Group Charter for Corporate Behavior, which states,“We shall play positive and active role in creating the
Sustainable Society, harmonizing economic development
and environmental protection.” The Environmental
Guidelines are a clear statement about the Company’s
stance in undertaking Eco Lion activities and our efforts—
among other endeavors—to develop eco-friendly
products and to lower environmental impact throughout
the supply chain.
In April 2010, the guidelines were revised to reflect
the Company’s current activities and their future
direction. In particular, our stance on protection of water
environments and biodiversity was stated in explicit terms.
The new Environmental Guidelines form a basis for
future Company-wide environmental protection activities.

The purpose of Lion’s environmental management system
is to identify, evaluate, and rectify adverse effects on theenvironment associated with our business activities, products,
and services, and to facilitate ongoing improvements in ourenvironmental protection activities. Ongoing improvements will
be achieved through implementation of the plan-do-check-act(PDCA) cycle in line with the Environmental Guidelines.

Environmental Management Structure
Lion has established an Environmental Action Promotion
Committee comprising members from production,
administrative, sales, R&D, and headquarters staff
divisions, to coordinate cooperation on environmental
matters by all employees. The committee reviews
Company-wide business activities from an environmental
protection perspective and takes steps to ensure legal
compliance and setting of voluntary standards and targets
in addition to ascertaining progress made.

Environmental Guidelines
Lion is to act voluntarily and proactively to reduce theenvironmental burden of its corporate activities—from researchand development to procurement of raw materials and finishedproducts, manufacturing, logistics, sales, household use, anddisposal—on the global environment, with due consideration to
global warming prevention, effective use and recycling of natural
resources, and contribution to the improvement of people’s
health, the natural ecosystem, and biodiversity. 

1. Aiming for a Sustainable Society
Establish an environmental management system, andthrough ongoing maintenance and improvement of thatsystem, protect the global environment.

2. Complying with Legal and Other Requirements
Comply with the system of legislation, regulations andarrangements pertaining to environmental protectionand establish and implement voluntary standards ofconduct.

3. Setting and Verifying Implementation ofEnvironmental Objectives and Targets
Correctly understand the environmental impact ofcorporate activity, and as far as technically and economicallypossible, establish objectives and targets for improvement,
while at the same time formulating, implementing andregularly verifying the status of implementation of anenvironmental management program.

4. Developing Environment-Friendly Products
Aggressively pursue eco-friendly product development

38 CSR Report 2010in accordance with the unique Lion Eco Standards,
established from a life cycle assessment perspective.

5. Reducing Environmental Impact Together with
Business Partners
Construct a green supply chain with raw material
suppliers, OEM partners and retail outlets and strive
for environmental burden reduction throughout entire
product life cycles, from procurement to sale to customers.

6. Coexisting with NatureShow consideration toward biodiversity and the air andwater environments when conducting business activities,
and proactively engage in protection of the naturalenvironment.

7. Enhancing Environmental Protection Activities
Based on Uniform Understanding of the
Guidelines within the Lion Group
Disseminate the Guidelines to all Lion employees,
including employees of affiliated companies, to heighten
their awareness of environmental protection and ensure
full participation in environmental management.

8. Promoting Disclosure of Information
Endeavor to promote communication with all
stakeholders with an interest in Lion’s business andmake these Environmental Guidelines readily available toanyone upon request.
Revised on April 1, 2010

● Environmental Management Structure

Status of ISO 14001* Certification

Environmental Conservation Committee

Lion acquired ISO 14001 group certification covering all
its plants in July 2001. Certification was reviewed andextended by the Japan Management Association Quality
Assurance Registration Center (JMAQA) at three-year
intervals, in May 2004 and 2007. A surveillance audit was
carried out in 2009. Continual improvements are madeto management systems and environmental protection
activities based on audit results.

Customers and Lion

Chair: Responsible director
Secretariat: CSR Promotion Dept.
(Environmental Conservation Office)Members: Heads of Production, Purchasing, Sales, R&D,
and Headquarters Staff divisions

Lion and CSR

Executive Committee

Chief Environmental Management
Officer of the Lion Group(Director of Environmental
Conservation Office)Employees and LionISO 14001 Certificate
of Registration
Production Division
Environmental
Management Officer(Director of Production
Coordinating Dept. No.1)

R&D Division
Environmental
Management Officer(Director of General
Affairs Dept.)(Director of Research
Planning &Administration Dept.)

Offices

Research facilities

Affiliatedcompanies

Legal Compliance

Employees who are qualified as internal environmental
auditors after undergoing appropriate training routinely
implement internal environmental audits to verify
total conformity to ISO requirements and conduct
management reviews. Individual departments takeresponsibility for rectifying any non-conformity andreporting on improvements. The director of the board
responsible for CSR also carries out executive safety andenvironmental audits on a regular basis.

Business Partners
and Lion

Executive safety andenvironmental audit

Society and LionStrengthening Lion Group’s Waste
Management System
Lion launched a new waste management system inJuly 2009. The system employs a network to centralize
management of waste-related information in a databaseshared by the entire group (about 60 business locations
belonging to Lion corporation and affiliated companies).
We will use this system to further efforts to ensure fullcompliance and strengthen waste-related risk management.

The Environmentand Lion

Lion complies with all environmental laws, ordinances,and other regulations.
Waste treatment contractors must satisfy criteria
stipulated in waste management regulations in order
to be selected by waste supervisors at each site. The
premises of waste treatment contractors are inspected
on a regular basis to verify conformity to the criteria.
Wastewater is constantly managed to ensurethat statutory limits on wastewater are observed.
This involves improving the reliability of wastewater
processing facilities, strengthening and ensuring
management during processes, and conducting
emergency drills.
There were no infringements resulting in a fineor other penalty during 2009.
In the past, we have used equipment containing
polychlorinated biphenyls (PCB). This equipment isstored securely in line with legal requirements andgradually disposed of through Japan Environmental
Safety Corporation (JESCO).

Internal Environmental Audits

Shareholders/Investors
and Lion

PlantsEnvironmental
Management Officer
for administrativeand sales divisions* ISO 14001: A global standard governing voluntary environmental efforts by organizations

CSR Report 2010

39

The Environment and Lion

Environmental Targets and Achievements
Lion generally managed to attain targets for activities in its various business areas again in 2009, thefinal year of the Company’s three-year medium-term environmental plan. We are now encouraging every
employee to work toward more ambitious, more specific targets prescribed under the new three-year
environmental plan from 2010.
● Three-Year Medium-Term Environmental Plan: Targets (2007−2009) and Achievements (2009)◎ : Attained
Targets
Category

CO2 emissions
reduction

Waste reduction

Environmental
consideration in
products

Chemical
substance
management
Environmental
management
structureenhancement

Make environmental data publicly available forconsolidated subsidiaries and Lion Akzo Co., Ltd.

Environmental
awareness andcommunication

Carry out environmental education andcommunication on a regular basis, and promote
activities at individual sites

× : Unattained

Achievements

Original three-year plan targets(Revised targets)
Reduce CO2 emissions by 10% or morecompared to 1990
(Reduce by 18% or more)
Reduce specific energy consumption in logistics
by 1% or more compared to the previous year
(Reduce by 2% or more compared to theprevious year)*
Reduce total waste generation by 40% or morecompared to 1990
(Reduce by 50% or more)
Reduce final waste disposal by 90% or morecompared to 1990
1
Reduce product-derived CO2 emissions by
150,000 tons (85%) or more compared to 1990
(Reduce by 105,000 tons [60%] or morecompared to 1990)
Reduce per-unit plastic container and packaging
material usage for eight household productcategories by 30% or more compared to 1995
Reduce volatile organic compound (VOC)
emissions by 40% or more compared to 2000
(Reduce by 65% or more)○ : Almost attained

Principal measures in 2009

Attainment level

Implemented energy-saving measuresthrough a review of powder laundry detergent
production efficiency◎(26% reduction compared to 1990)

Modal shifts and other measures were
pursued, but truck transportation increased
following the influenza outbreak○(102% compared to 2008, 97%
compared to 2006 [ave.1%
reduction/year])

Made efforts to turn more waste into
resources and reduce packaging material
lossesPromoted group-wide activities targeting zero
emissionsContinued efforts to reduce CO2 emissions byincreasing use of plant-based materials
Reduced usage by making products morecompact and by innovations in packaging
designAchieved the target by introducing VOC
recovery systems and improving productcomposition
Disclosed numerical data for Ipposha Oil
Industries Co., Ltd., and Lion Akzo Co., Ltd., inaddition to existing wholly owned subsidiaries.
Completed preparations for disclosure of datafor overseas affiliated companies◎(54% reduction compared to 1990)

Related
pages

P45

P46

◎
(96% reduction compared to 1990)◎(67% reduction compared to 1990)

P45◎(40% reduction compared to 1995)

P50–51◎(73% reduction compared to 2000)

P52–53◎—

Individual sites carried out independentmeasures relating to Team Minus 6%—

P54* The revised target for reduction of CO2 emissions in logistics was a single-year target for 2009. The target under the three-year plan was an average annual
reduction of 1% or more.

Review of Three-Year Plan
2009 was the final year of the three-year medium-term
environmental plan formulated in 2007. New targets
were set in 2009 for categories where targets had alreadybeen attained, generating better results than anticipated.
The original target for reduction of CO2 emissions
derived from products had to be revised to reflect ourbusiness activities, but we managed to make progress inthat category.
Lion believes the environmental impact during household
use and disposal of products should be considered with therest of the product life cycle when engaging in businessactivities. Reducing product-derived CO2 emissions istherefore a pressing issue. We will continue to makeaggressive efforts in this area using guidelines such as
the Lion Eco Standards, a set of criteria for determining
environmental friendliness during product development.
Environmental management and activity reports
previously covered only affiliated companies in Japan,
but enhancements made to Lion’s environmental
management framework to enable a global response
to environmental issues have made it possible as well todisclose data obtained from related overseas companies.
From 2010, overseas data will be accessible via the2Company website .

1. Product-derived CO2 emissions: CO2 emitted after product use
2. Environmental data for affiliated overseas companies URL http://www.lion.co.jp/en/csr/html/soc_csrf.htm

40 CSR Report 2010

● New Three-Year Medium-Term Environmental Plan: Targets (2010−2012)

Targets for 2012

CO2 emissions reduction
Waste reduction
Effective use of water resources
Chemical substance management

Reduce energy-derived CO2 emissions from business activities by 30% or more compared to 1990;
Reduce specific energy consumption in logistics by 1% or more on average each year;
Reduce the CO2 emission rate at overseas production sites by 1% or more on average each year
Reduce total waste generation by 55% or more compared to 1990;
Attain “zero emissions” status group-wide (currently 8 out of 10 sites have attained that status)
Reduce wastewater by 20% or more compared to 2005 (new category)
Reduce total PRTR substance emissions by 45% or more compared to 2005 (separate targets to be set for new substances);
Reduce volatile organic compound (VOC) emissions by 75% or more compared to 2000
Make environmental data for overseas sites publicly available;
Identify and perform accounting for environmental liabilities
Formulate a biodiversity policy, state the policy in the Environmental Guidelines, and continue to promote Eco Lion activities● CO2 Emissions Reduction Plan

2012 Target:

30％ or morecompared to 1990

2020 Target:

40％ or morecompared to 1990

(t)

100 ％
83％

125,000

74％

100,000

70％
60％

75,00050,00025,000
0

1990

2008

2009

2012 target

2020 target (year)

The Environmentand Lion

After evaluating the results of the medium-term environmental
plan for the three years to 2009, we formulated a newplan for the three years commencing in 2010.
When formulating the new three-year mediumterm environmental plan, importance was attached
to relevance to business activity plans. The three mainelements
are as follows.
環境負荷金額環境効率● Realizing a low-carbon society● Enhancing Lion’s environmental management structure● Strengthening efforts in effective use of water
resources and biodiversity

Society and Lion

Overview of New Three-Year Plan

[Strengthening efforts in effective use of water
resources and biodiversity]
In April 2010, we defined the Company’s stanceof showing consideration to biodiversity and water
environments in our business activities and incorporated
it into the Environmental Guidelines. Our approach tobiodiversity was also reflected in revisions made to theLion Eco Standards.
With the additional establishment of wastewater
reduction targets, Lion will be directing even more effort
into protection of water resources.

Business Partners
and Lion

Energy-derived CO2 emissions

150,000[Enhancing Lion’s environmental management
structure]
During the three years from 2010, we will do our utmost
to advance environmental management overseas. Given
that one of our business challenges is expansion ofactivities in Asia, environmental targets will be additionallyset for overseas business locations and managed
efficiently through implementation of the PDCA cycle.

Shareholders/Investors
and Lion

A reduction of[Realizing a low-carbon society]To ensure consistency with Japan’s national target, welimited our CO2 emissions reduction target under thethree-year medium-term environmental plan to energyderived CO2 emissions from business activities. We haveprescribed ambitious targets to reduce energy-derived
emissions by 30% or more by 2012, and 40% or more by
2020, compared to the 1990 level, which surpasses thenation’s target of a 25% reduction by 2020.
In addition, we will continue efforts to reduce
product-derived CO 2 emissions in keeping with our
Eco First Commitment.

Employees and Lion

A reduction ofCustomers and Lion

Environmental management
structure enhancement
Environmental awareness andcommunication

Lion and CSR

Category

CSR Report 2010

41

The Environment and Lion

Environmental Accounting and Eco-Efficiency
Environmental accounting is a key indicator for ensuring continual and efficient implementation ofenvironmental protection activities. Lion will continue to use environmental accounting to gain an overall
picture of environmental activities and promote improvements.
item for “Eco-friendly products” under business area
costs. The cost of an eco-friendly product is calculated
by multiplying investments and expenses for dedicatedfacilities by the product’s “environmental friendlinessfactor,” as evaluated in accordance with the Lion Eco
Standards. In cases where a facility manufactures morethan one product, a proportionate figure is determinedbased on output. The Lion Eco Standards are criteria
applied in-house for developing eco-friendly products(see p.47).
Environmental protection benefits are measured inphysical units and refer to the benefits obtained from
activities relating to environmental protection.
Economic benefits (actual benefits) associated withenvironmental protection activities are calculated ascost reductions from the previous year under the four
categories listed in the table on p.43.

Environmental Accounting
Environmental Accounting in Lion Group
Each year, we tabulate environmental protection costs,
environmental protection benefits, and economic
benefits (actual benefits) associated with environmental
protection activities of the entire Lion Group based on
Ministry of the Environment guidelines. The tabulation
period is the same as the Company’s accounting year,
January−December 2009.
Environmental protection costs refer to investments
and expenses allocated for activities such as
the prevention, reduction, or avoidance of any
environmental impact that could be caused in relation
to business activities and restoration after a disaster.
Lion places high priority on the environmental
friendliness of products and has included a separate● Environmental Accounting (2009)( ): Reduction

Environmental Protection Costs (million yen)
Category

Business area
costs

Upstream/
downstream
costs
Administration
costs
R&D costs
Social activity
costs
Environmental
remediation costs

Investments Expenses

Pollution prevention
Air pollution prevention, water pollution
prevention, etc.

75

197

Global environmental protection
Energy conservation, etc.

904

3,871

Resource recycling
Waste treatment, recycling, etc.

0

332

1,127

3,454

—

630

32

628

93

1,637

Local environmental activities, donations, etc.

015

P54–55

Tax imposed on pollution performance, etc.

0

2

P53

2,231

10,766

Eco-friendly products
Eco-friendly product manufacturing
facilities, etc.
Outsourcing fees incurred due to Japan’sContainers and Packaging Recycling Act,
waste treatment, etc.
ISO 14001 renewal expenses, environmental
education, publishing of reports, exhibits, etc.
Costs for developing eco-friendly products,
etc.

Category

2009

RelatedYear-onpages
year change(26)(2) P46(8) P52–53(9)(13,836)(89,136)
P45–46(5,370)(67,113)

Principal activities

Lion Group total

42 CSR Report 2010

Environmental Protection Benefits

NOx emissions (t)53
SOx emissions (t)23Particulate emissions (t)7Total COD (t)12105,738
Energy usage (t-CO2)
3
Industrial water usage (m )914,575
3City water usage (m )404,847
3
Wastewater (m )689,858
Total waste generation (t)8,111Final waste disposal (t)291
Recycling rate (%)
94(recycled volume ÷ volume consigned)Plant-based materials, biodegradable materials,
compact products, refill products, recycled paper use,
recycled PET use, etc.
Packaging materials used (t)Waste (t)70,315
3,564

(895)
(473)
25

P46

P47–51(2,445)(463)

P50–51
P38–39P54–55
P47
P50–51

Summary of 2009 Environmental Accounting

Eco-Efficiency
Eco-Efficiency Improvements
Lion calculates eco-efficiency according to the following
formula to evaluate the efficiency of corporate activities
in terms of environmental impact. Efforts are then madeto improve eco-efficiency.

Cost savings due to energy conservation

1,005

Cost savings due to resource efficiency

100

Savings on water and sewerage charges

8

Savings on waste treatment expenses

ーEnvironmental impact value (compared to 2000)(Compared to 2000)
(%)
120
100

907

902

887

963

1,200

1,098

1,000
800

80
60

79％

74％

76％

71％

59％

600

40

400

20

200

0

2005

2006

Environmental impact value

2007

2008

2009 (year)

0
Society and Lion

Year-on-year reduction● Eco-Efficiency and Environmental Impact ValueBusiness Partners
and Lion

Benefits

The monetary value for environmental impact is calculatedusing LIME. If there is no LIME data for a substance wereach an amount by inference, based for example on theenergy and materials used for their manufacture. The
reference year for environmental impact value is 2000.
The environmental impact value (relative to 2000)
decreased from 2008 due, for example, to reductions in
CO2 and air pollutants. The value is now 59% compared
to 2000. Lion’s eco-efficiency, based on LIME, has beenon an upward trend since 2008 and improved again in2009 because of a lower environmental impact.

Shareholders/Investors
and Lion

Environmental Protection Activities (million yen)

Environmental impact(monetary value calculated using
the life-cycle impact assessment method
based on endpoint modeling [LIME])

Employees and Lion

● Economic Benefits (Actual Benefits) Associated with

Outcome of business activity (net sales)

Eco-efficiency[Economic benefits (actual benefits)]
Cost savings due to energy conservation wereapproximately ¥1 billion, attributed to a decline in energy
consumption resulting from a production shift frompowder to liquid detergents. Cost savings due to resource
efficiency were approximately ¥100 million. The savings
were the result of various factors, including changes tocorrugated box design and the introduction of unified
product stickers and plain packaging film. Savings onwater and sewerage charges were the result of water
conservation and other efforts. We were unable to reduce
waste treatment costs.

Customers and Lion

Eco-Efficiency =[Environmental protection benefits]
Energy usage (in t-CO2) fell by around 14,000t-CO2 due
to lower power consumption by our manufacturing
plants and a reduction of fuel used for drying processes.
3
Industrial water usage fell by around 90,000m due tolower usage in cooling processes and manufacturing
plants, for which large amounts are used. City water3
usage decreased by around 5,400m with the introductionof a rainwater utilization system at the new researchfacility and the 2009 completion of facility construction,
which cancelled out the construction-related temporary
increase recorded in 2008. Total waste generation
decreased by around 900 tons due to advancement inturning waste into valuable resources.

Lion and CSR[Environmental protection costs]
Total investments during 2009 came to approximately¥2.2 billion, an increase of around ¥700 million from2008. The increase was the result of investments in 2009
related to construction of a new research facility. Total
expenses came to approximately ¥10.8 billion, roughly
the same level as 2008.

Eco-efficiency

LIME Method

CSR Report 2010

The Environmentand Lion

A Japanese method for assessing environmental impact
based on endpoint modeling developed by the LCA
Project (Development of Assessment Technology ofLife Cycle Environment Impact of Products) of theJapanese Ministry of Economy, Trade and Industry(METI). LIME calculates the extent of environmental
damage caused by each of around 1,000 substancesin 11 areas, including global warming, ozone layer
depletion, hazardous chemical substances, and resource
consumption. The level of impact is expressed inmonetary terms as environmental impact value.

43

The Environment and Lion

Overview of Environmental Impact ofLion’s Business Activities
Lion makes efforts to reduce environmental impact throughout the product life cycle from material
procurement to disposal. In 2009, large reductions in CO2 emissions and waste generation were achieved.

INPUT

OUTPUT

Energy and water usage reduced.

Environmental impact dramaticallyreduced due to lower CO2 emissions
and waste reduction, etc.

EnergyEmissions into atmosphere

Total energy usage

57,429 kL(crude oil equivalent)(Reduced 8.282 kL)

CO2 emissions

100.174 million kWh

Electricity

Production activities(Reduced 13.257 million kWh)

Non-production activities

3(Reduced 1.360 million m3)

Other fuels(crude oil equivalent)

96,024 tons
(Reduced 13,551 tons)

13.773 million m

Natural gas

105,738 tons
(Reduced 13,836 tons)

9,714 tons
(Reduced 285 tons)

16,027 kL

53 tonsNOx emissions(Reduced 3,296 kL)(Reduced 26 tons)

23 tons

SOx emissions(Reduced 2 tons)

Raw materials

1,323 kg

PRTR chemical substances

Materials(Increased 9 kg)

343,000 tons

(Home products only)(Reduced 40,000 tons)

PRTR chemical
substances(Reduced 8,000 tons)(Lion Group)

73,000 tons

Emissions into water
Wastewater

690,000 m

3(Reduced 67,000 m3)

PRTR chemical substances

Water resources
Water used

0 kg

（ ±0）

1,320,000 m

3(Reduced 94,000 m3)

Tap water used

405,000 m

3

Waste

(Reduced 5,000 m3)

Industrial
water used

915,000 m

Total waste generation

3

8,111 tons
(Reduced 865 tons)(Reduced 89,000 m3)

Consigned for recycling

4,782 tons
(Increased 676 tons)

Final waste disposal

291 tons(Reduced 473 tons)

Logistics

Logistics
CO2 emissions

20,850 tons
(Reduced 1,622 tons)

Products
Net sales

312.9 billion yen(Reduced 16.3 billion yen)

Customers
Waste packaging

39,104 tons
(Reduced 2,545 tons)

Figures in parentheses indicate change from previous year

44 CSR Report 2010

Lion and CSR

Reducing Greenhouse Gas Emissions
Looking beyond the Kyoto Protocol, Lion is contributing to prevention of global warming by reducing
both CO2 emissions from business activities (energy-derived) and CO2 emissions generated after product use(product-derived).

and Products
100％

(t)

49％ reduction

300,000

100

68％

200,000
48

150,000

60％
37

64％

62％

46

45

51 ％
33

100,000
50,000
0

100

92

88

85

83

74

1990

2005

2006

2007

2008

2009 (year)

CO2 emissions from business activities

Reducing CO2 Emissions from Business Activities

Lion works to reduce CO2 emission and energy
consumption rates through efforts to improve logistics
efficiency, such as direct shipments from plants and jointdeliveries with other manufacturers. We are also actively
pursuing a modal shift and obtained Eco Rail Mark
recognition from Japan’s Ministry of Land, Infrastructure
and Transport in 2005. In 2009, the modal shift rate
for all traffic volume was 20.2%, and 64.8% for longdistance transport over 500km. Although specificenergy consumption increased 2% from the previous
year in 2009 due to factors such as an increase in truck
transportation for urgent shipment of products used
to counter influenza, we satisfied guidelines to therevised Act on the Rational Use of Energy by achieving
a reduction of 1% or more compared to the 2006 level.

Establishment of Eco First
Companies Asoociation

CSR Report 2010

The Environmentand Lion

Lion was certified as an Eco First Company, the firstin the manufacturing industry, by the Ministry of theEnvironment in June 2008 after declaring an “Eco First
Commitment” in the form of medium to long-term
environmental protection targets. President Fujishige
attended a conference in June 2009 to report on Lion’s
progress in achieving those targets.
Lion also engages in inter-company cooperation.
The Company is a founding member of the Eco First
Companies Asoociation, a body of 23 companies set up in
December 2009 to promote further development of theEco First system, and hosts a study group on biodiversity.
Through Association’s activities, Lion aims for greatercollaboration with environmental authorities and further
enhancement of environmental protection activities.

Society and LionIn 2009, the Production Division worked to reduce CO2
emissions through energy-saving measures that included areview of powder laundry detergent production efficiency
and improvements to the operational efficiency of machines.
Offices and R&D divisions also reduced CO2 emissions
through advancement of Team Minus 6% activities andefforts such as full observance of eco-driving when using
Company vehicles, switching to low-emissions vehicles,
and reducing the number of vehicles through car-sharing.
As a result, CO2 emissions were reduced by 26% in 2009
compared to 1990, thereby attaining the 2009 target under
the three-year medium-term environmental plan—82%
or less (a reduction of 18% or more) of the 1990 level.
CO2 emissions from overseas plants will be included
in data available on the Company website from 2010and measures will be promoted for meeting our targetof reducing the CO2 emission rate by 1% or more on
average annually by 2012.

Initiatives in Logistics

Business Partners
and Lion

Product-derived CO2 emissions

Lion looks for ways to reduce CO2 emissions generated
after product use through its product-related research anddevelopment activities. Specific efforts to reduce productderived CO2 emissions include replacing petroleum-based
surfactant ingredients with plant-based ingredients that do
not lead to an increase in CO2 (carbon neutral: see p.48).

Shareholders/Investors
and Lion

250,000

Reducing CO2 Emissions after Product Use

Employees and Lion

● Total CO2 Emissions Derived from Business Activities

Customers and Lion

The Kyoto Protocol came into effect in 2005, obligating
Japan to reduce greenhouse gases by 6% between 2008
and 2012 compared to 1990 levels. It has also beensuggested the world needs to halve CO2 emissions by
2050. Lion is therefore looking beyond the Kyoto Protocol,
with each employee committed to reducing CO2 emissions.
In 2009, Lion managed a total CO2 emissions reductionof 49% compared to the 1990 level. This includes both
energy-derived CO2 emissions from business activities andCO2 emissions generated after product use.

45

The Environment and Lion

Effectively Using and Recycling Resources
Lion promotes waste reduction and recycling in keeping with the philosophy of Japan’s Basic Act on
Establishing a Sound Material-Cycle Society. The Company has already achieved dramatic reductions in total
waste generation and final waste disposal compared to 1990 levels.
● Final Waste Disposal by Lion Group

Total Waste Generation by Lion Group(t)

In 2009, the production division made progress onturning waste into valuable resources through continued
efforts to create resources out of disposed flexible
containers and pallets and thorough sorting of mixed
waste. Other measures, such as reducing packaging
material losses during manufacturing processes, areimplemented on an ongoing basis. The research divisions
are also working to turn more waste into resources by
seeking greater precision in waste sorting. These efforts
resulted in a reduction of total waste generation to 46%
of the 1990 level, thereby attaining the 2009 target (50%or less). We aim to reduce waste to 45% of the 1990
level by 2012.
● Total Waste Generation by Lion Group(t)
20,000100％

15,00070％
56％

10,000

56％

51％

46％

100%

8,000
7,000
6,000
5,000
4,000

Keidanren Voluntary Action Plan 2010 target

3,000

14%

2,000
1,000
0

1990

Lion

12%

13%

11%

10%

4%

2005

2006

2007

2008

2009 (year)

Affiliated companies

Protecting Water Resources
Lion keeps a constant close watch on water usage andwastewater volume and works to reduce water usage
through cyclic use and lower environmental impact. Having
established a target to reduce wastewater generated by
the entire Lion Group to below 80% by 2012, comparedto the 2005 level, we are pursuing improvements in facility
cleaning processes and water conservation.
●L ion Group’s Water Usage, Wastewater Volume,

5,000

3

and COD

Lion

1990

2005

2006

2007

2008

(1000 m 3)

2009 (year)

Affiliated companies

1

Lion has already achieved the final waste disposal target
established by Nippon Keidanren—a reduction of 86%
or more by 2010 compared to 1990. We are working
toward even greater reductions during 2010.
2
Lion plants attained zero emissions status in 2002 andhave maintained that status since.
Among affiliated companies, the Fukushima Plant ofLion Packaging Co., Ltd. achieved zero emissions in 2009.
We will continue efforts toward group-wide attainmentof zero emissions.

1,500

1,509

1,000
500
0
Water usage

1,422

820

793

27

23

2005

2006

Wastewater

1,414

1,365

750

757

17

21

2007

2008

1,320

75
50

690
12
2009 (year)

COD

Final Waste Disposal by Lion Group

(t)
100

2,000
Water usage/Wastewater

0

25
0

COD

Green Purchasing
Green purchasing of office supplies used by employees
Company-wide is being advanced by expanding the list ofavailable items. The green purchasing ratio in 2009 was
79%, a sizeable improvement from 66% in 2008.

1. Final waste disposal: T he final volume of waste not recycled as a resource
2. Lion defines “zero emissions” as the achievement of a 99% or higher recycling rate for total waste generated. However, this does not include residues from recycling.
3. Chemical Oxygen Demand (COD): An indicator of water contamination measuring the amount of oxygen required to oxidize and break down organic
substances in water

46 CSR Report 2010

Lion and CSR

Considering Environment from
Product-Oriented Perspective
Lion develops eco-friendly products in line with the Lion Eco Standards, established from a perspective oflife cycle assessments (LCA) used to quantitatively evaluate the environmental impact of products from raw
material procurement through to disposal.

Environmental Considerations in
Product Development

Lion Eco Standards−Evaluation Areas and Criteria

When developing products, Lion considers the environment
in terms of both product composition (contents) andcontainers and packaging. The Lion Eco Standards define
an “eco-friendly product” as a product that satisfies at least
one criteria in each area of evaluation based on a quantitative
assessment of environmental impact at each stage of the
product life cycle: (1) raw material procurement;(2) packaging material procurement; (3) manufacturing;(4) logistics; (5) household use; and (6) disposal.
In 2010, we revised the Lion Eco Standards to reflectchanges to the Environmental Guidelines, making it
obvious that the standards are also an indicator taking
into account protection of water environments andbiodiversity. The standards have also been made more
specific to facilitate assessment.
Lion recognizes the need to lower as much as feasible●E co-Friendly Products as Percentage of Total Number of Products

0

50

2007

59 %

2008

60 %

2009
(year)

63 %

100

(%)

Shareholders/Investors
and Lion

Raw material

Areas of evaluation and evaluation criteria for
the Lion Eco Standards are described below. The
number of products manufactured by Lion (excluding
pharmaceuticals) satisfying at least one of the Lion Eco
Standards criteria is rising steadily. This currently applies
to 63% of all items, or 80% in terms of sales value.

Products satisfying at least one Lion Eco Standards criteria

Evaluation area

Evaluation criteria
Plant-based raw materials constitute at least 50% of the product’s organic composition●

The product uses raw materials that help to preserve biodiversity●

Recycled materials (plastic, etc.) are used. In the case of paperboard,usage of recycled paper, thinnings, or certified forest pulp is at least 94%(METI’s 2010 target for the paper industry)●

Plant-based or biodegradable resins are used●

Energy usage, water usage, wastewater generation, chemical substance use,
and waste generation are reduced by at least 20%

Compact size, high concentration●

Size is at least 20% smaller, or concentration at least 20% higher, than existing products

Energy savings during use (power savings)
Organic substance release per use
Reduction of water usage (water savings)●

Energy consumption during use is reduced by at least 20%

5 Household use●

Organic substance release per use is reduced by at least 20%●

Water consumption during use is reduced by at least 20%

Reduction of packaging and refill availability
Reuse and recycling of packaging, other●

6 Disposal

Container and packaging material volume is reduced by at least 15% compared tomainstream products on the market●

Refill pouches and bottles are at least 50% lighter than the original productPackaging
2 material
procurement

Use of recycled materials
Use of sustainable materials
Use of plant-based materials
Use of biodegradable materials

3 Manufacturing

Energy savings and reduction of water usage
and wastewater during manufacturing
Reduction of chemical substances use
Reduction of waste

4 Logistics

Society and Lion

Use of plant-based raw materials
Use of sustainable raw materials

Business Partners
and Lion●

1 procurement

Employees and LionStage

Customers and Lionthe impact of products on the global environment
throughout their entire life cycle, and is therefore
committed to the development of eco-friendly products.

The Environmentand Lion* Since the absence of hazardous chemical substances and high biodegradability are obvious requirements they are not included in Lion Eco Standards criteria.

CSR Report 2010

47

The Environment and LionHigh
BOD degradation rate(%)

Lion is promoting development of product componentsthat meet environmental challenges such as global
warming prevention and water environment protection.
A prime example of this approach is the development ofmethyl ester sulfonate (MES), a component currently usedin TOP and other laundry detergents.

100←

Environmental Considerations in
Product Component Development● Surfactant Biodegradability

Ready biodegradability pass level

80 (60% within 28 days)
60
40
20
0

10

MES

Lion was the first in the world to carry out industrial
production of MES, a plant-based surfactant withexcellent detergency and biodegradability. MES is used in
TOP and other Lion laundry detergents. Lion’s approachto component development is reflected in the superior
properties of MES.

Superior Properties of MES
1. Carbon Neutrality
After use, surfactants are decomposed in the environment
to become CO2 and water. When surfactants made fromplant-based ingredients are decomposed, they do notrelease any additional CO2 into the atmosphere (they arecarbon neutral). The surfactant MES, made from plantbased ingredients, does not add to the amount of CO2 in
the atmosphere.

LAS1

Soap components

3. Excellent Detergency
Increasing the cleaning power of detergents reduces
the amount required per wash. This means less organic
matter is released, reducing the impact on water
environments. The current TOP product contains MES,
which has excellent detergency. Only 5.2g of organic
matter is released with each wash, an indication that wehave made large reductions.
● Detergency Comparisons

100
80
60
40
20

● Carbon Neutrality

Light Energy
O230* Test method: O rganisation for Economic Co-operation and Development (OECD)
Test Guideline 301C. Created using Japan Chemicals Collaborative
Knowledge Database

Detergency (%)

Environmental Benefits of MES

20
Days elapsed

CO2 No increase
Photosynthesis

0100

in total CO2

200

300

400

Cleaning ingredient concentration
（ppm）
MES

LAS

AS2

● Organic Matter Released Per Wash Cycle

50
Organic matter (g)Released into air

Plant-based
ingredients
Carbon(carbon fixation in plants)

Product made fromplant-based ingredients

Biodegradation

40
30

1. Linear alkylbenzene sulfonate (LAS): A type of surfactant
2. Alkyl sulfate (AS): A type of surfactant

48 CSR Report 2010

40

28.0

Detergent per wash cycle(g/30L of water)
25
20

20
10
0

2. High Biodegradability
After use, surfactants are broken down by
microorganisms in the environment (biodegradation).
Since MES is easily biodegraded it will not remain in theenvironment for a long time.

40

10.4

Soap powder The fully phosphate-free
Murin TOP
(Year introduced)(1980)

10.3
5.2
High TOPTOP(1988)(Present)

MES has other superior properties, including the ability
to retain high detergency in hard water and compatibility
with enzymes that break down stains.

Environmental Solutions Business● Cleaning Effects of Water-based Detergents

Customers and Lion

Besides products for the home, Lion seeks to lower theenvironmental impact of chemical products it develops
for various industries. The Company’s Chemical Products
business undertakes this function, and engages indeveloping and providing industrial chemicals. In thisway, we are supporting a sustainable, recycling-oriented
society behind the scenes.

not a hazardous substance, making it highly safe for bothhumans and the environment. Its environmental impact
is low. Applications include optical lens and liquid crystal
display manufacturing lines. Besides manufacturers ofelectronics and electrical equipment, the detergent also
benefits environmental measures of automakers andother manufacturers.

Lion and CSR

Environmental Considerations in
Chemical Products Business

Plant-Based Chemical Products● Transformer Oil Derived from Plant-based Ingredients

Transformer oil

Transformer

Lowering Environmental Impact with
Water-Based Detergents

Lion Eco Chemicals Plant Completed
In 2009, a new plant was completed at Lion Eco
Chemicals Sdn.Bhd in Malaysia. The plant produces
MES used in TOP and other laundry detergents. MES isa highly functional plant-based surfactant made using
palm oil and has a low impact on the environment after
disposal (see p.48). Once the plant begins operations it
will be able to supply MES not only to countries in Asia
but also to other countries around the world.
A completion ceremony held in December wasattended by 160 people in total, including the main
guest, Tan Sri Bernard Giluk Dompok, Malaysia’s Ministerof Plantation Industries and Commodities, as well asother high government officials and representatives
from overseas partner companies and group companies.
At the ceremony venue, panels were displayed that
explained the superior detergency, biodegradability, andcarbon neutrality of MES, and local employees gavea presentation. The guests were extremely impressedby the surfactant’s
environmental
performance.

At completion ceremony
for the new plant

CSR Report 2010

The Environmentand Lion

Manufacturing electronic and information devices involves
repeated cleaning processes and requires detergents withexcellent cleaning properties. From an environmental
perspective, there is a demand for detergents to replace
CFC-based detergents and chlorinated solvents.
Lion has responded by employing proprietary
microemulsion technology to develop a water-based
detergent that contains nopetroleum-based solvents.
Because the base component is water, the detergent is

Aside from the products mentioned, Lion markets otherhighly functional industrial chemicals in Japan andoverseas, helping to reduce environmental impact acrossthe planet.

Society and Lion

Eco Mark
No.07110003

Enlargedlens surface

Business Partners
and Lion

One successful product we have developed is highperformance transformer oil (palm or coconut fatty
esters) for use in transformers at plants and substations.
This oil is highly biodegradable and received Eco Markenvironmental certification in March 2008.

Enlargedlens surface

Lens after
cleaning

Shareholders/Investors
and Lion

Oil palm fruit

Lens prior tocleaning

Employees and Lion

The majority of chemical products are made frompetroleum, but Lion seeks to make effective use ofrenewable resources even in the production of industrial
chemicals and proactively engages in development of
products made from plant-based ingredients such as
coconut oil and palm oil.

49

The Environment and Lion

Reduce“3Rs” for Reducing Containers
and Packaging
Lion actively promotes implementation of the “3Rs”(Reduce, Reuse, Recycle) as a container and packaging
material reduction initiative. We also implement a wide
range of other initiatives for reducing containers andpackaging in line with a voluntary action plan, seeking earlyattainment of the target put forward by the Japan Soap andDetergent Association (JSDA) of reducing plastic usage perunit of product weight 30% by 2010 (compared to 1995).
The Lion Eco Standards (see p. 47) provide for containerand packaging reductions, prescribing related criteria understages (2) packaging material procurement, (4) logistics, and(6) disposal.
● “3Rs” for Reducing Containers and Packaging Materials

R educe

Reduce usage by
reducing the size andquantity of containers
and packaging

Smaller Products and Innovations
in Container Design
Lion is working to reduce container and packaging
material usage by increasing the concentration of
products such as laundry detergents, dishwashingdetergents, and fabric softeners, and making containers
smaller. Although more plastic was used in 2009
compared to 2008, total container and packaging
material usage decreased by 3,078 tons to 64,642 tons
due to a reduction in usage of all other materials. Plastic
usage per unit of output in the eight household productcategories defined by JSDA was 60% of the 1995 level.
Lion will continue efforts to reduce container andpackaging material usage by making products smaller
and innovating with container design.
● Making Products Smaller

Concentration

R euseEnvironmental Benefits of TOP NANOX

RecycleUse recycled materials
where possible

total 70,091

69,34370,21264,642

67,72080,00060,000

1,131

1,035

10,474

11,111901
9,485

15,93615,141

16,505

26,842

26,714

15,70815,342567
11,140486
9,789

15,283

13,533

28,79426,072

25,538

14,527

14,65815,29640,00020,000

0
Plastic

2005

2006

Corrugated fiberboard

50 CSR Report 2010

2007
Paperboard

2009 (year)

2008
Glass

TOP NANOX, first marketed in January 2010, offers
environmental benefits through its high detergency.

1. The main cleaning ingredient ismethyl ester ethoxylate (MEE),
a plant-based surfactant.

● Container and Packaging Material Usage by Lion(t)

・Same number of wash cycles
・Fits into a smaller container(smaller product)
・TOP NANOX has doubled
concentration

Expand the range ofrefill products

Metal

2. As detergent residues are effectively
removed due to excellent defoaming
properties, only one rinse is required,enabling water and power savings.
3. L ower plastic usage for containers,
improved efficiency in production
and transportation, and otherachievements reduce CO2 emissions
per wash cycle.

R ecycle

Lion and CSR

R euseUsing refills means original plastic bottles for products
such as dishwashing detergents and shampoos can bereused several times. Refill products also help to reduce
the amount of waste generated by households as theircontainers use less material than the original containers.
Lion has been expanding its line of refill products
since 1992 and now offers refills for a wide range of
products, including shampoos and fabric softeners. For
sprays, we offer both refills and products without thetrigger. Containers for all these items, as for the original
products, are designed for easy use. Lion will continue
efforts to expand its range of refill products and develop
containers that customers will find easy to use.

【Use of recycled resins】
Lion teams up with container manufacturers to develop
technologies employing recycled PET resin. In 1989, welaunched Mama Pockety, the first dishwashing detergent
on the market with a container made from recycled PET.
The Company went on to develop a technology for using
recycled PET resin in transparent bottles, considered anenormous challenge.
PET resin recycled from plastic drink bottles constitutes
20% or more of material for containers for products suchas the dishwashing detergents CHARMY Awa no Chikara(Power of Suds), Charmy V Quick, and Charmy Mild.
Measuring spoons for powder laundry detergents makeuse of recycled resin from old washing machines andother electrical appliances.

Employees and Lion

Use of Recycled Materials

Customers and Lion

More Refill Products

Shareholders/Investors
and Lion● CO2 emissions per wash cycle

Clear Liquid

Business Partners
and Lion【Use of paper made with recycled pulp】
White paperboard made with recycled pulp is used forcontainers and packaging for such products as toothpasteand detergents. It is stated clearly on powder laundry
detergent containers that the recycled pulp content is atleast 70%.
Corrugated boxes used for transporting products havea 94% recycled pulp content.
20%

NANOX
0
Manufacturing

20
Biodegradation

40

60

Transportation

80

Society and Lion

reduction

100

Packaging disposal* CO2 emissions for TOP Clear Liquid = 100. Assumes one wash cycle uses 30Lof water (based on LCA analysis by Mizuho Information & Research Institute)● Lower environmental impact during transportation(number of wash cycles is unchanged)

Clear Liquid

500

1,000

Container weight (g/container)

76

118

The Environmentand Lion

NANOX
Contents (g/container)

Transportation* Reduces the amount of fuel required for transportation. Also reduces delivery
frequency as more products can fit into the same space.

CSR Report 2010

51

The Environment and LionAppropriately Handling Chemical Substances
Showing consideration to safety and the environment in all processes from product development through touse and disposal, Lion works to ensure strict chemical substance management and to reduce chemical use.
We also carry out independent surveys to assess the impact of proprietary surfactants on water environments.

Production

Approach to Chemical
Safety Management

4

Chemical substances are indispensible for people tolead comfortable and fulfilling lives. Failure to properly
manage chemicals, however, can result in accidents thatput human health and ecosystems at enormous risk.
In addition to compliance with related laws andregulations, Lion strives to ensure strict managementof chemical substances at all stages from productdevelopment through to use and disposal.

Product Development[Management of chemical substances used in products]
Chemical substances used in products are managed safely,
right from the raw material stage, in accordance withlaws and regulations and our own independent standards.
[Safety verification of chemical substances]
Lion participates in an international consortium for1
the OECD HPV Programme , cooperating on safety
verification of LAS, methyl ester (ME), and alpha olefin
sulfonate (AOS).
2
Under the Japan Challenge Program , Lion declareditself a sponsor and carried out safety verification relating
to MES together with the Japanese government. A report
has already been submitted to the authorities.
The Company also participates in the Joint Article
3
Management Promotion-consortium (JAMP) .

[Compliance with PRTR Law ]Each year, production and research divisions declarerelease and transfer volumes for substances targeted by
the Pollutant Release and Transfer Register (PRTR) Law.
Fiscal 2009 declarations were made for 39 substances,
excluding two substances included in 2008 for which
declarations were no longer required, and including
four additional substances for which handling volume
increased. Releases of LAS into the atmosphere fell
dramatically, from 220kg to 14kg—a much larger
decrease compared to 2008—through measures suchas improvements to dust collection equipment.
Revisions were made to the PRTR Law in 2008 and will
apply to declarations from April 2011. Lion’s efforts to
reduce releases from production sites continue and we are
now focusing on substances to be newly included under
the revised law.
5[Compliance with Chemical Substances Control Law ]Japan’s Chemical Substances Control Law was amended
on May 20, 2009. Since April 2010, in addition topersistent substances that do not degrade easily in theenvironment, substances that degrade readily have also
been covered by the law (requiring businesses to declarevolumes of such chemicals manufactured or imported).
Volumes of general chemical substances manufactured
or imported will need to be declared from April 2011 (if abusiness manufactures or imports one ton or more). Lion
will ensure proper compliance with the new regulations.

● Lion’s Chemical Substance Management

1 Product

Development

Safety verification and managementof chemical substances containedin raw materials

2 Production

Measurement and reduction ofchemical substance releases

3 Transportation

4 Use and Disposal

Provision of information relating to safety and handling of chemical substances

1. OECD High Production Volume Chemicals Programme (HPV Programme): An initiative advanced by the Organisation for Economic Co-operation andDevelopment (OECD) to promote the gathering and disclosure of data on high production volume chemicals (chemicals produced at levels greater than 1,000
tons per year) relating to their impact on the environment and health
2. Japan Challenge Program: A program advanced jointly by industry and government to facilitate collection of information on the safety of existing chemical
substances and make that information widely available to the general public
3. Joint Article Management Promotion-consortium (JAMP): Conference established to develop and promote mechanisms for managing chemical substancesused in products and for communicating related information to the supply chain

52 CSR Report 2010

● River Monitoring Points

Arakawa River

Tama River

Jisui Bridge

Hamura Weir

Lion and CSR[Voluntary initiatives for preventing air pollution]
Lion also implements voluntary initiatives for reducing
emissions of chemical substances that cause air pollution,
including nitrogen oxides (NOx), sulfur oxides (SOx),
particulate matter, and volatile organic compounds(VOC). In 2009, we managed to reduce VOC emissions
by 73% compared to 2000, thereby attaining our 65%
reduction target.

Edo River

Sasame Bridge

Kanamachi

Tokyo
Customers and Lion

Tamagawara Bridge● Emissions of NOx, Sox, and Particulate Matter

Den-en Chofu Weir

(Lion Group)

Hirakata Bridge

(t)
100

Yodo River

91

87

83

80

79

60
29

33

25

20
0

NOx

14

14

2005

2006

SOx

18

15

2007

2008

VOICE
Considering impact of products on water
environments after use

23
7
2009

(year)

Particulate Matter[Provision of safety information during transportation]
6
6“Yellow Card ” and “Container Yellow Card ” systems
are used when transporting items such as raw materials
and intermediate products. Properties of chemicals,
emergency procedures, and other information is provided
on these cards. The cards are distributed to carriers andattached to freight.

Kosuke Yoshida

Human & Environmental
Safety Evaluation Center
Research & Development
Headquarters

Society and Lion

4. Pollutant Release and Transfer Register (PRTR) Law: Requires businesses that handle chemical substances potentially harmful to human health andecosystems to independently measure and report to government authorities the volumes of such substances released into the environment or transferred frombusiness premises. See the Company website for more information on the release and transfer volumes by the Lion Group of substances targeted by the PRTR
Law for fiscal 2009.
URL http://www.lion.co.jp/csr/env/ecolion/safety-detail.htm (In Japanese only)
5. Chemical Substances Control Law: Requires the evaluation of chemical substance properties prior to manufacture or import and regulates their manufacture,import, and use in order to prevent adverse effects on humans, flora, and fauna. The law’s official name is the Act on the Evaluation of Chemical Substances
and Regulation of Their Manufacture, etc.
6. Yellow Card, Container Yellow Card: Properties of chemical substances, emergency procedures, and other information is printed on these cards to ensure
readiness in the case of an accident during transportation, such as a chemical spill.
CSR Report 2010

The Environmentand Lion[Ecological risk assessments of chemicals released
after product use]
Surfactants contained in Lion products are released into
the environment after use.
Lion helps the Japan Soap and Detergent Association(JSDA) conduct concentration surveys and ecological risk
assessments of four types of surfactant in river systems
in and around Tokyo and Osaka (four times a year).
As the developer of MES, Lion independently surveys
and evaluates concentrations of the surfactant in thesame public waterways to verify its negligible impact on
ecosystems. Monitoring of MEE also commenced in 2010.
The Company’s efforts to minimize environmental risk
are ongoing.

Business Partners
and Lion

Use and Disposal

Shareholders/Investors
and LionTransportation

Many Lion products are used by households ona daily basis. Once their job is done, products
are released into rivers, the sea, or other water
environments and are potentially harmful to living
things in the water if they remain there. For thatreason we verify in the product design stage that
ingredients of detergents and other products
will disappear quickly in the environment. After
products are introduced to the market, we conduct
scientific surveys to measure residues of productingredients in rivers and apply stringent checks
to ensure that concentrations are at a level thatwill not affect life forms in the water. We wantcustomers to feel safe using our products and tothat end we will continue to conduct independent
surveys and checks concerning
their impact on water
environments.

Employees and Lion

40

Sampling points* Lion takes samples at the same locations as the JSDA
53

38

Osaka

53

The Environment and Lion

Fostering Environmental Awarenesswithin the Lion Group
Lion provides environmental education and opportunities for participation in environmental activities in order
to raise the environmental awareness of all employees engaging in Eco Lion activities and encourage them toinitiate their own activities.

Regular Environmental Education
and Communication
Environmental education is conducted on a regular basis
for all employees.
Education provided during 2009 included programsfor new employees, employees in charge of waste
management, employees in charge of chemical substancemanagement, and internal environmental auditors.
At the end of 2009, there were a total of 46 internal
environmental auditors (one additional employee
completed an external course). The total number of
employees with certificates for completion of in-houseprograms was 399. Lion’s in-house magazine Tategami
is also used to increase the knowledge and concern of
employees for the environment, such as by introducing
environmental activities pursued by individual departments.

Article in Tategami
promoting awarenessof environmental
protection activities

Environmental Education for New Employees
Employee participation in forest maintenance activities
in the Lion Forest in Yamanashi is treated as a form ofenvironmental education. The program was incorporated
into the curriculum for new employee training for the firsttime in 2009. The objectives of the training exercise are
to have employees reflect on their own views and actions
concerning environmental protection and come to terms

New employee training in
Lion Forest in Yamanashi

54 CSR Report 2010

with the Company’s aim of becoming a leading company
in environmental friendliness, as well as to encourage
proactive participation in environmental activities.

In-House System for Submitting Eco Ideas
Lion has been running the Eco Lion Proposal Campaign
since 2006, sending out a general invitation to employees
to submit ideas for products that are “eco-friendly” or“useful for daily living.” In 2009, a total of 2,852 ideas
were submitted. The campaign has had results, leading to
the realization of car-sharing and other proposals.
Through this campaign we hope to raise theenvironmental awareness of employees.

Team Minus 6% Evolves into Challenge 25
In January 2010, Lion signed up as a corporate“challenger” to the Challenge 25 Campaign, a national
movement for the prevention of global warming
promoted by Japan’s Ministry of the Environment. The
Challenge 25 Campaign, which evolved out of Team
Minus 6%, aims for a much larger CO2 emissions
reduction to help preserve Japan’s environment andthe entire planet for future generations. Lion has been
implementing Company-wide environmental protection
activities as a member of Team Minus 6% since 2005,
and is now committing to global warming prevention
efforts that will achieve more substantial CO2 reductions.
We call this “Lion Challenge 25.”
Lion Challenge 25 naturally entails typical global
warming prevention activities at each business location,
including air-conditioning temperature control, power
and water savings, and eco-driving. It also involves
active participation by employees, who will seek toincorporate environmental considerations into theirlifestyles based on individual “challenge statements.”

President Fujishige makes Lion’s challenge
statement at kick-off event

Lion’s Challenge 25
statement

Lion and CSR

Environmental Communication
Lion seeks a broad understanding of the Company’s environmental protection activities
across society through dynamic communication efforts.

Carbon Footprint* Program Trials

Participation in
Environment-Related Events

Publication ofEnvironment-Related Report
We publish the CSR Report in which we introduce theCompany’s environmental initiatives.

Communicating Environmental Activities
via Lion’s Website

Society and Lion

Eco-Products 2009
(December 10-12,
2009)

Lion conducted trial sales of Dentor
Clear MAX (left) in March 2009.
Labels (right) show the carbon
footprint for each process.

Business Partners
and Lion

Lion participates in environment-related events in local
communities as a way to introduce the Company’senvironmental initiatives to as many people as possible.
In 2009, Lion exhibited at Eco-Products 2009, Japan’slargest environmental fair, introducing efforts such as
consideration for the environment through products,
including our use of plant-based materials and 3R
initiatives, as well as the Company’s efforts to protect
water environments.
In January 2010, we reported on social contribution
and environmental activities undertaken by the Odawara
Plant at a conference in Odawara (Kanagawa Prefecture)

Shareholders/Investors
and Lion

Lion is also working on visualization of CO2 emissions
throughout the product life cycle and, in 2008,
participated in the Study Group for Developing andPromoting a Carbon Footprint Program organized by
Japan’s Ministry of Economy, Trade and Industry (METI).
As part of our role in the study group, we conducted salesof trial products in March 2009. The Company is currently
involved in deliberations with industry associations on
product category rules (PCR).

Employees and Lion

Lion participates in activities of the Japan Responsible
Care Council (JRCC), through which the chemicals
industry strives for ongoing improvements to safety andenvironmental considerations throughout the life cycle ofchemical substances, from development to disposal.
Lion employees were among the 153 attendees at the
7th Chiba area Responsible Care dialogue meeting held in
February 2009. We also participated in a JRCC-organized
dialogue with consumer groups in December where we
gave a presentation on the Company’s initiatives for
reducing CO2 emissions through products.

Customers and Lion

Interaction with Communities
and Organizations

promoting ongoing collaboration between companies
and NPOs. Lion also exhibited at Ecomesse in Chiba 2009
and Eco-Fair Ichihara.

The “CSR” section of Lion’s corporate website details
our environmental protection activities (Eco Lion
activities) and provides access to CSR Report.
The website is regularly updated as a timely means ofcommunication.

The Environmentand Lion

Ecomesse in Chiba 2009
(September 6, 2009)* Carbon Footprint: P roduct labeling system indicating CO2 emissions generated during the product life cycle, from raw material procurement,
production and sales, through to use and disposal
CSR Report 201055

Third-Party Review
Special features reveal a positive, proactive stanceon communication

Effective global warming prevention initiatives
and pressing tasks

Lion’s CSR Report 2010 contains special features covering the
Stakeholder Dialogue and biodiversity initiatives that disclose Lion’s
intention to clearly convey the Company’s corporate stance of being
open to the opinions of stakeholders inherently involved in businessactivities and obtaining data on the natural environment throughregular surveys of rivers. In the case of the former, expectations that“people already know” or “we’ve already explained” can often hinder
communication. It is better to be meticulous, consistently conveying
information even about matters that seem obvious. In the case of thelatter, any outward lamentation by nature is a sign that grave damage
to nature has already occurred. It is important to be able to sense
subtle changes in nature before obvious damage occurs and to work
continuously to lower environmental impact. Lion should maintain its
current stance and not let up on its efforts.

Lion’s voluntary three-year medium-term environmental plan has
ended. You should be congratulated for reducing CO2 emissions
by 26% compared to the 1990 level during that time. It is now ornever for initiatives aimed at realizing a low-carbon society and it isimportant that you continue to take the bull by the horns. Japan’s
economic environment is changing, meanwhile, and companies canno longer forgo expansion overseas if they wish to survive in themarket. Consequently, the spotlight has been turned to the problemof the CO2 emissions burden being shifted onto other countries.
Corporations will have to account for the environmental impact of all
business operations, not just domestic activities. Your move to set a
CO2 emissions rate target for overseas sites is a first step. A pressing
issue will be working out how to manage the environmental impactof the group as a whole with an aggregate approach. Corporate
activities unavoidably lead to an increase in business locations andplants, and an increase in greenhouse gas emissions. What is required
is a willingness to show how you intend to compensate for thoseincreases, such as by using renewable energy.

UN Global Compact participation benefits
Lion’s CSR activities
Some corporations are highly conscious of brand strategy in theirapproach to CSR. Although this kind of mentality may be natural forsome employees working inside corporations, which pursue profit, itis necessary to constantly bear in mind that any misplaced priorities
have the potential to cause major damage to a brand. A corporate
brand cannot be sustained without sound and highly transparent
CSR initiatives. In that sense, it can be said that both the closest andthe most distant stakeholders are employees. A key indication of thegenuineness of a company’s CSR efforts is whether or not relations
with employees are properly positioned within the CSR framework.
Reading your report, I sense a positive change in frequent reference
to consideration toward human rights and working environments indealing with employees. My guess is that participation in the United
Nations Global Compact has had a favorable influence.

Yutaka Kamioka
Representative Director
EOL International (NPO)

Lion’s Response
Drawing on the opinions of stakeholders to improve CSR initiatives—
the CSR Report is the basis, the communication tool, for achieving thisand in it we must accurately convey the Company’s approaches andactivities. Through the Stakeholder Dialogue, we were reminded that
believing you have communicated something means you probably
haven’t. You commented on our intent to convey information in a
meticulous manner, which you recognized from this year’s report. Lionplans ongoing efforts, coordinated by the Corporate Communication
division established in 2010, to ensure integrity in communication,for example by enhancing our ability to communicate corporate andlifestyle information and quickening our response to customer needs.
Corporations cannot achieve sustainable development without
sustainable social development. At Lion, we believe we can play a rolein finding solutions to social challenges through our efforts to support
both human comfort and nature’s comfort. Central to our activities
are individual employees, and we strive to develop human resources
with the tenacity to face up to a challenge and generate new value.
As the president mentioned in his opening message, the Company
exists to make people happy, and to make people and society happy,
employees must first be happy. Motivated in part by our participationin the United Nations Global Compact, Lion will look to make gradualbut steady progress in enhancing working environments.
In regard to CO2 reduction efforts, which we have actively pursued
in Japan, data from overseas plants has been posted to the Company
website for the first time. And we believe our intention to engage
in CSR procurement has been clearly conveyed to overseas affiliated56 CSR Report 2010

companies and their business partners through our participationin the United Nations Global Compact.
In keeping with the principles of the United Nations Global
Compact, Lion will look to tackle human-related issues, including
human rights, CSR procurement, fair and proper treatment, andoccupational safety, as well as environmental issues, on a global scale.
The origins of Lion’s approach to CSR can be traced to the Company’s
founding spirit of working for the benefit of people and society.
This spirit lives on in the Company Motto. We believe it is our social
responsibility to present good lifestyle habits to people through ourbusiness activities, with each employee acting in accordance with theCompany Motto and the Lion Group Charter for Corporate Behavior.
By accurately portraying our efforts using tools such as the CSR Reportand accepting the opinions of stakeholders, Lion will work to advanceits CSR initiatives further.

Shuichi Ota
Director, Lion Corporation
Responsible for Corporate Communication (Public
Relations, Consumer Service, CSR Promotion),
Personnel, General Affairs, and Investor Relations;and President of Lion Business Service Co., Ltd.

Editorial Note
To make this year’s CSR Report suitable as a progress
report on the United Nations Global Compact, we aimed
for accurate information disclosure based on GRI guidelines.
As a result, we have made progress in identifying
Lion’s current position and challenges and establishinga common direction on future initiatives among

concerned divisions within the Company. Further efforts
will be made to enhance the CSR Report as a tool forstrengthening CSR activities.

CSR Promotion Department, Lion Corporation

CSR Report 201057

CSR Report 2010

Front cover:
Overall winners in the LION TOP Eco Project Waterfront Painting Contest“Playing in the River” by Megumu Ohno (Fukuoka Prefecture)“River with Yamame Salmon” by Daigo Sasaki (Fukui Prefecture)

CSR Report

2010
C S R

REPORT

From Good M

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Mor

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e D

to

rea

Go

ms

od

fo

r

N

ig

Yo

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ur
Li

fe

Lion Corporation
Published:
November 15, 2010
CSR Promotion Department, Lion Corporation
Inquiries:
CSR Promotion Department, Lion Corporation(Social Responsibility Promotion Team/Environmental Conservation Office)3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan
Tel: +81-3-3621-6611 Fax: +81-3-3621-6269
Website:http://www.lion.co.jp/en/
Next scheduled publication:
November 2011

In recognition of its advanced
environmental initiatives, Lion has
been certified as an Eco First
Company by the Japan’s Ministryof the Environment.

ing

Play

iver

e R
in th

River

with

Yama

me S

almo

n