CSR Report

2017

Love

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today,efLove your li

CONT ENTS
01

About Lion

04

Message from the Management

06

Company Motto/Management Philosophy/
Lion Group Charter for Corporate Behavior

07

Corporate Message

Lion’s CSR

08
09

Overview of Lion’s Social and Environmental Contribution Activities

10 History of Lion Group’s Business
Activities

12 Establishing the Group-wide CSR Management Structure

14 Objectives of the Medium-Term Management Plan and Achievements in2016 in Relation to CSR Material Issues

18

242016 Highlight 01

Lion Group’s Educational Activities for Hygiene Care Habits in Japan and Overseas
2016 Highlight 02

Promoting Work-Life Balance by Supporting Employees Raising Children andProviding Nursing Care for Their Family
26

2016 Highlight 03

Full-Scale Operation of Waste Water Recycling System at Chiba Plant

28

Organizational Governance31

Human Rights

32

Labor Practices

36

The Environment

42

Fair Operating Practices

44

Consumer Issues

49

Community Involvement
and Development

52

Third-Party Review

53

Lion’s Response/Editorial Note

Editorial Policy
Lion views its CSR Report as an important tool allowing the company to present its CSR initiatives
and draw on stakeholder opinions while furthering
corporate activities.
Editorial Policy for CSR Report 2017
● Since 2011, our CSR activities have been systematized inaccordance with ISO 26000, an international standard
concerning social responsibility. The CSR Report also reflects
the above.
● CSR Report 2017 discloses major CSR issues and their progress in 2016 towards the 2017 Medium-term Objectives corresponding to Lion’s management plan.
● Details of the activities that have especially demonstrated
progress are provided as 2016 Highlights so that the readers
can more easily understand the contents.
● The URLs at the bottom of the pages on each core subject of
ISO 26000 direct to the CSR website, which includes moredetails of the activities.
● Readers can access Lion’s primary web pages through thetwo-dimensional bar codes (smartphone-friendly website).
● A third-party review by outside expert has been included toprovide an objective assessment.
● GRI Sustainability Reporting Standards were used as a reference guide for producing this report.
● Lion’s CSR activities, including those that were not introduced in this report, are comprehensively presented on the
CSR website.

Reference Guidelines● The Environmental Reporting Guidelines (2012) of theJapanese Ministry of the Environment● GRI Sustainability Reporting Standards of the Global Reporting Initiative● ISO 26000: 2010 Guidance on social responsibility issued by
the Japanese Standards Association[Comparative Table with Respective Guidelines]
URL http://www.lion.co.jp/en/csr/report/

Coverage● Lion Corporation and all domestic consolidated subsidiaries are covered, as a rule.
Overseas group companies are included in the CSR Medium-term Objectives and Achievements on p14-17.
*When the coverage of reported activities or data is different, a description is provided.

Period Covered● January 1 to December 31, 2016
(Some parts of the activities also include parts of 2017.)

About Lion
Corporate Data
Corporate Name
Address
Foundation Date

Performance Transition(consolidated)

Lion Corporation
3-7, Honjo 1-chome, Sumida-ku, Tokyo
130-8644, JapanNet Sales(million yen)
（百万円）
400,000

October 30, 1891

Capital¥ 34,433.72 million (as of December 31, 2016)

Representative

Itsuo Hama, Representative Director/President

Employees

Consolidated: 6,895
Non-consolidated: 2,510 (as of December 31, 2016)

Net Sales

Consolidated: ¥ 395,606 million
Non-consolidated: ¥ 260,935 million (as of December 2016)

PlantsChiba Plant (Ichihara City), Odawara Plant (Odawara City),
Osaka Plant (Sakai City), Akashi Plant (Akashi City)

350,000

395,606

335,171

Sapporo, Sendai, Tokyo, Nagoya, Osaka, Fukuoka[List of Major Subsidiaries and Affiliates]
URL http://www.lion.co.jp/en/company/group/

250,000
200,000
0

2012

2013

Beauty Care Products
Fabric Care Products
Living Care Products
Pharmaceutical Products
Other Products

Operating Income
24,50225,00016,374¥287,028 million¥63,596 million¥22,333 million¥80,240 million¥20,763 million¥40,958 million¥59,135 million

0¥110,933 million

Overseas Business
Others¥26,867 million

Adjustment*¥83,553 million¥395,606 million

Consolidated Net Sales

10,0005,000¥54,330 million

Industrial Products Business

Location of Overseas Group Companies(After adjustment)

Hong Kong(Lion Corporation (Hong Kong) Ltd.)
Thailand(Lion Corporation (Thailand) Ltd.)
Malaysia(Southern Lion Sdn. Bhd.)(Lion Eco Chemicals Sdn. Bhd.)

Ratio of
Overseas sales (consolidated): 25%
China (Lion Daily Necessities
Chemicals (Qingdao) Co., Ltd.)South Korea(CJ Lion Corporation)
Taiwan (Lion Chemical
Industry (Taiwan) Co., Ltd.)(Lion Home Products(Taiwan) Co., Ltd.)
Indonesia (P.T. Lion Wings)

Singapore(Lion Corporation(Singapore) Pte. Ltd.)10,81912,406

7,213

2012

2013

2014

(year)
2016（年）

2015

Ordinary Income(million yen)
（百万円）
28,00026,29024,00020,00018,09916,00012,0008,000

12,30014,059

8,564

4,000
0

*Intra-segment and inter-segment sales
Overseas sales
compared to previous year: 106%

(year)
2016（年）

2015

20,000Net Sales Breakdown by Business
Oral Care Products

2014(million yen)
（百万円）

15,000Consumer Products Business

378,659

300,000

Research Facilities Hirai (Edogawa-ku), Odawara (Odawara City)
Sales Offices

352,005367,396

2012

2013

2014

(year)
2016（年）

2015

Net Income
15,951(million yen)
（百万円）
16,00014,00012,00010,68010,000
8,000
6,000
4,000

6,097

7,368

4,235

2,000
0

2012

2013

2014

2015

(year)
2016（年）[IR Library]
URL http://www.lion.co.jp/en/ir/library/

Lion CSR Report 201701

About Lion

Main Business Segments

Oral Care[Product Lineup of Consumer Products Business]
URL http://www.lion.co.jp/en/products/

Main Products Toothpastes, toothbrushes, dental rinses and other dental care products.

Lion provides products for advanced oral care to support daily health.

Beauty Care

Main Products Hand soaps, body washes, antiperspirants and deodorants, shampoos,conditioners, men's cosmetics, hair-nourishing treatments.

Lion promotes comfort, health and wellbeing through its hair and skin care products.

Fabric Care

Main Products Laundry detergents, fabric softeners, bleaches, clothing care agents.

Lion provides safe, reliable products that make clothes not only clean but a pleasure to wear.

Living Care

Main Products Dishwashing detergents, household cleaners, cooking-aid products.

Lion offers products that promote clean and comfortable eating and living.

02

Lion CSR Report 2017

Pharmaceuticals

Main Products Antipyretic analgesics, antidiarrheas, gastrointestinal medicines, eye drops, health tonic drinks, insecticides.

Lion offers an abundant lineup of products under quality brands
to meet growing self-medication needs.

Wellness Direct

Main Products Health food products, hair care products.

Lion offers direct-to-consumer sales products that meet a variety of consumer health and beauty needs.

Gift and Special Order

Main Products Gifts, novelties.

Lion provides a variety of gift and special-order products for its customers.

Pet Supplies(Lion Trading Co., Ltd.)

Main Products Sanitary products, pet oral care, body care,
pet laundry care and room care products.

Lion helps make the lifestyles of pet owners and their animals more enjoyable through productsthat promote cleanliness, health and comfort.

Lion CSR Report 201703

Message from the Management

Create New Values from
“New Combinations”
and Continue to Benefit
Society throughBusiness Activities

Representative Director,
President Executive Officer(Itsuo Hama)

Since its foundation in 1891, Lion has continued torespond through business activities to social issues, whichhave changed with the times. In Japan and other Asian
countries, people’s lives and social conditions have undergone rapid and considerable changes. For example, thetransformation of the way of living brought about by thedigitalization and drastic technological innovation represented by IoT on one hand, and on the other hand, a
slowdown in the economic growth and the advance of
the aging society.
Amid such social changes, with empathy towards people, Lion accurately identifies problems and creates newvalues from the “New Combinations,” of product andexperience, through our business and CSR activities without being bound by existing values, and makes efforts
for solving problems.
Our founding spirit of “Benefiting Society throughBusiness Activities” has been embedded into our business activities and employees as Lion’s DNA in various
forms with the change of times.
In its “Vision 2020,“ Lion clearly states that it aims tobecome a “company that creates value for lifestyle andspiritual fulfillment,” a “company that is advanced in
the area of environmental responsiveness” and a “company that continues to take on challenges, create andlearn” in our business fields of “Health,” “Comfort,” and04

Lion CSR Report 2017

“Environment,” with the company motto of “Fulfillinga Spirit of Love,” Lion is aiming to help extend people’s
healthy life expectancy and realize a sound materialcycle society in which resources are conserved and reused.
We will make efforts to further improve corporate
value as a highly reliable company capable of responding
to expectations from all stakeholders. To this end, we will
provide products and services while putting a top priority on customer satisfaction, promotion of environmental conservation activities, and further enhancement ofcorporate governance systems.
 iming to become a company that createsAvalue for lifestyle and spiritual fulfillment
In 2016, Lion continued promoting “preventive dentistry” and conducted educational activities to enhance
proper self-care and professional care. We introduced
new oral care products including toothpastes, toothbrushes and dental products for self-care, and conductedoral health educational activities for each stage in life
with the Lion Foundation for Dental Health, and cooperating with government agencies. Consequently, suchactivities increased the recognition and awareness of“preventive dentistry.”In addition, our Wellness Direct business (a mail orderbusiness) grew steadily, contributing to the creation of
new values through foods with function claims.
As for overseas, educational activities for “preventive
dentistry” and hand washing were fostered in each country, and products for personal care, such as “Systema”
and “KireiKirei” brands, largely grew with proactive
marketing activities.
Under the group-wide philosophy of contributing to
the formation of clean, healthy and comfortable living
habits not only in Japan but also in other Asian countries,
in addition to providing products, we hope to help form
such living habits by conducting educational activities fororal care and hand washing.
 iming to become a company that is advancedA
in the area of environmental responsivenessWith the goals of achieving a “Low Carbon Society,” a”Sound Material-Cycle Society,” and “Harmonizing with
Nature,” Lion formulated the environmental objectiveof ”Eco Vision 2020,” and has worked on it to attain thetargets in 2020, including reductions in CO2 emissions andwater consumption.
As for the reduction in CO2 emissions, aspiring to achieve
our target in 2020, which is higher than the target thatJapan has set at COP 21, we further reduced emissions in2016. Moreover, we have continued to support our customers’ ecological lifestyle by expanding eco products fulfilling
Lion’s eco-standards, which were established originally by
Lion, from the viewpoint of product lifecycles.
With regard to the reduction in water consumption,
we have developed a technology to recycle factory effluent, and successfully reduced water consumption after
the new waste water recycling system went into fullscale operation at Chiba Plant in 2016.
Lion will contribute to the realization of a sustainable
society with the development of advanced green technologies and through communication with stakeholders.
 iming to become a company that continuesA
to take on challenges, create and learn
The target management system was implemented inorder to foster human resources, who voluntarily take onchallenges and create new values. In addition, we continued our on-going programs such as training for each job
function (e.g. the marketing training program), the “Lion
Challenge Cup-Innovation” in which Lion’s future is directly
proposed to management, and the “L-Compass Award,”
a commendation program with the purpose of improving
organizational learning.
Furthermore, in 2016, Lion enhanced support programs for work-life balance of employees raising children
and employees providing nursing care for their family.
In terms of Lion’s support for employees to maintain abalance between work and nursing care for their family,

we introduced a Short Hours Flextime System and also
revised the existing nursing care leave systems in order toallow employees to work long term without anxiety. We
will continue to enhance the system.
Regarding support for balance between work andchildcare, in addition to existing childcare leave systems,
we held a Back-to-Work Seminar prior to return to work,and created a website to support employees returning
to work and raising children to work without anxiety after the childcare leave, and to be actively involved inwork over the long term.
In March of 2016 we established a special subsidiary
Lion Tomoni Co., Ltd. and started the employment ofpeople with disabilities. We will continue to strive tobuild a company where people can take advantage of
their individual abilities regardless of whether they havedisabilities or not.
I continued to hold the presidential sessions at Lion’s
business offices nationwide in 2016. At the meetings
with employees, I proactively shared Lion’s Management
Vision, and kept discussing specific measures to achieve
the vision.
We will aim at achieving “Vision 2020“ with a cycle inwhich each of our employees predicts social trends,
takes on challenges to pursue new creations, and learns
from the challenges.

Aiming at CSR Management
In order to remain a company that is trusted by society, it
is important to integrate CSR within the managerial structure of the company.
Hence, we reviewed our management challenges inlight of our understanding of the requirements of thesociety as included in the international standard of social
responsibility, ISO 26000, and identified CSR material
issues. For the “Vision 2020” V-2 period, we set groupwide medium-term objectives including those for overseas group companies, and are conducting CSR activities
as a whole.
In 2009, Lion announced its support for the UN Global
Compact: a global framework to realize sustainablegrowth. We will continue to support it and make efforts
toward CSR management with a strong awareness of“Health,” “Comfort” and “Environment.”

Lion CSR Report 201705

Company Motto/Management Philosophy/
Lion Group Charter for Corporate Behavior
Company Motto
Lion Corporation positions “Fulfilling a Spirit of Love” as fundamental toits management, and thus contributes to the enrichment of the happinessand lives of people.

Management Philosophy
1

We bring together the power of our personnel, the power of our technology and the power of our marketing, as we provide superior productsthat are helpful in the daily lives of people.

2

We respect the “Spirit of Tenacity and Creativity” that we have maintained since
our founding, as we continue developing our business.

3

We deeply appreciate all those who extend their valuable support to us,
as we prosper together through sincerity and mutual trust.

Lion Group Charter for Corporate Behavior
Established January 1, 2003 and amended January 1, 2008
We, the Lion Group, shall, in addition to being an economic entity designated to pursue profits through fair competition, act as a social entity that contributes to society at large. We shall respect human rights and conduct ourselveswith initiative in a socially responsible manner toward the creation of a sustainable society, observing both the spirit
as well as the letter of all applicable laws and international rules and not harming the public interest, both in Japanand abroad, in accordance with the following 10 principles.
1. [Principal Mission] We shall earn the confidence andsatisfaction of customers (consumers and users) by providing excellent, safe goods and services useful for their
daily lives.
2. [Compliance with Public Rules] We shall observe all
relevant laws and regulations and engage in fair, transparent and free competition and proper transactions.
We shall maintain sound and proper relationships withgovernmental and political bodies.
3. [Disclosure] We, as a socially open company, shall actively engage in communication not only with ourshareholders but also with members of society at large
and disclose information generally regarding Company
management in an appropriate and timely manner.
4. [Environmental Issues] We shall play a positive and active role in creating a sustainable society that harmonizes
economic development and environmental protection.
5. [Improvement of Working Environments] We shallpromote fair treatment and respect the diversity, individuality and personalities of our employees. We shall ensure a safe and comfortable workplace to realize themental and physical well-being of our employees.
6. [Contribution to Society] We shall actively contributeto society as good cooperate citizens.
7. [Opposition to Antisocial Forces] We shall firmly oppose antisocial entities and organizations threatening
the order and security of civil society.

06

Lion CSR Report 2017

8. [Contribution in Foreign Countries] In our overseas operations, we shall not only observe international rules andthe laws of relevant foreign countries, but also respect local cultures and customs and contribute to the development of local communities with sincerity and mutual trust.
9. [Practice of Corporate Ethics] Top management shallassume responsibility for implementing the spirit of thisCharter and shall take the initiative to set a good example and fully inform Lion Group employees of the Charter. Top management shall strive to take in internal andexternal opinions continuously to promote mutual understanding and the development and implementationof effective internal control systems while enforcing
thorough compliance with corporate ethics.
10. [Resolution of Problems] Should an incident contrary
to the principles of this Charter occur, top management shall publicly clarify its position, taking responsibility to resolve the problem on its own initiative, andstrive to investigate the facts, identify the causes of theincident and prevent recurrences. Top management
shall fulfill its responsibility to disclose accurate information promptly and explain the situation, and shallresolve the problem in a manner fully understandable
to society. After clarifying authority and responsibility
for said problem, top management shall impose strict
and impartial disciplinary actions upon any liable persons, including the highest level of management.

Corporate Message
Lion's CSR

Lion has been a regular part of everyday life for more than 120 years.
In that time, we have seen how ordinary days, one by one, add up to a lifetime.
Moreover, we have come to believe that each new day is the first step into

Organizational Governance

The Heart of
All We Do

a bright future, and that living every day positively and to the fullest is
the essence of happiness.
That is why we have made it our mission at Lion to contribute to ordinary life,
every day, and reflected this commitment in our corporate slogan.

Human Rights
Labor Practices
The Environment
Fair Operating Practices
Consumer Issues
Community Involvement andDevelopment

Corporate
SloganLion CSR Report 201707

Lion’s CSR

Business Activities Supporting Healthy andComfortable Society and Environment
The origins of Lion’s approach to CSR can be traced to our founding spirit of “working for the benefit ofpeople and society.” With the robust business foundation established based on the Company Motto andthe Management Philosophy, Lion has contributed to sustainable development of society through conducting business activities under the management vision and by integrating CSR material issues.

Sustainable corporate andsocial development

In 2020 Management
V-3 Plan

Vision (Vision 2020)

Ideal Vision
Aiming to become a company that createsvalue for lifestyle and spiritual fulfillment
Aiming to become a company that is advancedin the area of environmental responsiveness
Aiming to become a company that continues
to take on challenges, create and learn

A company that creates value forlifestyle and spiritual fulfillment
long into the future by consistently safeguarding health, comfort, and the environment forpeople each and every day

In 2017
V-2 Plan

Health Business

Promotion of PDCA

Comfort BusinessIn 2014
V-1 Plan

Environmentallyfriendly Business

CSR Material Issues

See Pages 14 to 17

Foundation for Business
Lion Group Charter for Corporate Behavior/Behavioral Guidelines
Company Motto/Management Philosophy

Company Motto/Management Philosophy

http://www.lion.co.jp/en/company/html/com0101f.htm
08

Lion CSR Report 2017

Lion Group Charter for Corporate Behavior/Behavioral Guidelines
http://www.lion.co.jp/en/company/html/com0201f.htm

Lion’s CSR
Lion's CSR

Overview of Lion’s Social andEnvironmental Contribution Activities
Business Activities

Organizational GovernanceSeeking to support people’s lives for creating future value for everyone, Lion promotes social and environmental contribution activities, in addition to its business activities.

Supporting people’s lives for creating future value for everyone
Human Rights

Social and Environmental Contribution Activities
In the Health and Comfort Field

In the Environmental Field
Water Resource
Conservation Activities

Labor Practices

Educational Activities for
Hygiene Care Habits
The Environment

Management Vision

Educational Activities for
Oral Health

Related information p51
Related information p50-51

Fair Operating Practices

Our Priorities
Co-existence with communities

Involvement of employees

In the Environmental Field

While providing products useful for making better living habits, such as oral care products including toothpastes and toothbrushes, as well as
cleanliness-related products such as hand soaps,
we conduct educational activities for oral healthand hygiene care habits.

We strive to reduce the environmental load of our
products to create a more eco-friendly lifestyle.
As our main products, such as laundry detergents,
toothpastes, hand soaps, and dishwashing detergents, are deeply related to water through “washing,” we also actively conduct water resource conservation activities.

Consumer Issues

In the Health and Comfort Field

Community Involvement andDevelopment

Our priorities
As it is necessary to co-exist with relevant communities, such as communities where our business facilities
are located, in order to continue our business, we work to solve the issues of local communities in cooperation with local residents, local government, and citizens’ groups.
In addition, by providing each employee more opportunities to participate in social and environmental
contribution activities related to business, we foster human resources who create new values based on ahigh degree of social and environmental awareness.
Lion CSR Report 201709

Lion’s CSR

History of Lion Group’s Business Activities
Oral Hygiene Business

Functions added to products in responseto people’s needs, as well as awarenessof and education about oral hygiene

Founding

GrowthMass Production(From 1896)(From 1913)(1960s to 1970s)

Promoting oral hygiene /The foundation of social
contribution activities

Starting educational activities to instill tooth brushinghabits in children

Expanding the market and developing world-class products

Lion Toothpowder

Tooth paste was sold alongside suchpromotional gifts as picture books inorder to help to teach the importance of
tooth brushing from an early age

Charity coupons printed on theback of packets (The root of Lion’ssocial contribution activities)

Completion of the
Odawara Plant(Reinforcement of the
production system)
White & White(Development of laminated tubes,
which are easy to use)

Lion Dental Clinic for Children

Culture of Cleanliness andEnvironmentally-friendly Business

Education about cleanliness andmeasures for the global environment

Promotion ofawareness of hygieneContribution to improved
hygiene in post-war Japan

Resposnse to the water
environment issues(1891 to 1940s)(1950s)(1960s to 1980s)

Promoted awareness aboutwashing with detergent

Contributed to the eradication ofparasites with a neutral detergent for washing vegetables

Responded to the floating bubbles andeutrophication, which occurred in rivers
as the use of synthetic detergents
became popular

Manual on the
Liponstandard home
(Japan’s first fatty
laundry procedures
alcohol-based(Education on laundry synthetic detergent)
procedures)
Lipon F
(Earned the top recommendation of theJapan Food Hygiene Association)

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

10

Lion CSR Report 2017

Dash

Murin (phosphorus-free)TOPLion's CSR

Lion’s origins lie in soap and toothpaste. Since the foundation, we have promoted a culture of cleanliness and oral hygiene by providing useful products, and have driven educational activities and provision of information, thus helping to foster good habits.
Building on these strengths, the Lion Group has been focusing on oral hygiene, cleanliness and environmental friendliness, which are of great importance as social issues, as our
main business domain.

Expansion

Present

Responding to diversifying oral health issues
with more scientific research

From oral hygiene to systemic health
Promotion of “preventive dentistry”

Human Rights(From 1970s onward)

Organizational Governance

Oral hygiene is Lion’s core area of business. Over the years, we have contributed to the improvement of people’s living habits by developing many products with new functions, and have disseminated accurate information about oral hygiene.

Clinica
Advantage series(Promotion of“preventive dentistry”)

Clinica(For prevention of cavities)

Labor Practices

Dentor(For prevention of pyorrhea)

Dentor Systema series(For prevention of
periodontal disease)

Educational activities for oral
health in other Asian countries
The Environment

From the days when notions about cleanliness were less well formed until the present day, through supplying many kindsof detergent, including laundry detergents and soaps, Lion has helped instill a culture of cleanliness in the society. In product development, we are currently tackling global environmental issues beginning with those relating to water.

Actions to meet increasing needsfor disinfectants that came out offood poisoning cases(1990s to 2000s)

Expanded a line of products based on plantderived materials

Launched medicated soaps anddeveloped educational activities
for children

TOP SUPER
NANOX
Educational activities to make handwashing a habit

KireiKirei
Medicated Liquid
Hand soap

KireiKirei
Medicated Foaming
Hand Soap

TOP
HYGIA

LOOK BathCHARMY
Antimold Fogger Magica

Contributing to a clean lifestyle in Asia

Overseas NANOX

Community Involvement andDevelopment

Spark

Response to water resources issues
and water use reductions

Overseas KireiKirei

Lion CSR Report 2017

Consumer Issues

Shokubutsu-Monogatari(Plant Story)

Present

Fair Operating Practices

Response to petroleum
resources issues andresource conservation(1990s)11

Lion’s CSR

Establishing the Group-wide
CSR Management Structure
Setting objectives and managing progress
We have promoted our CSR activities based on the ISO
26000, a global social responsibility standard, since 2011,and by listening to and incorporating the opinions of third
party organizations, we have confirmed and evaluatedour achievements in our domestic group. By considering
global CSR trends, our company’s unique business characteristics, potential risks, opportunities and their respective
implications, we identified CSR material issues in 2012.

For each of the material issues, we have set a three-year
medium-term objective, which is consistent with our management plan.
In addition, we identified the objectives to achieve towhich we must contribute through our businesses by analyzing issues related to the Sustainable Development Goals(SDGs) in the countries and regions we operate in.

The Process to Identify Material Issues

International CSR initiatives including ISO 26000 and UN Global Compact
External factors
Needs of stakeholders that can be addressed
through dialogues with Lion

Internal factors
Our ideal vision for 2020 and its alignment withbasic strategies leading up to it▶Management Vision (Vision 2020)▶Medium-term management plan

Lion’s CSR Material Issues

Value Chain and Material Issues (Activities in 2016 are described in related pages.)Stages ofValue Chain

Major Initiatives
Undertaken by Lion

Procurement of Raw Materials,
Packages, and Containers

・Promoting Human Resource Development/Revitalization Programs
・Establishing Good Working Environments▶ p32-33

p24-25, p34
Highlight 02
・Promoting Employees’ Health Management▶ p35

Opportunities

CSR Material Issues

・Establishing a Group-wide CSR Management Structure▶ p12-13

・Formulating and Disseminating Human Rights Policy, Ensuring Human Rights Due Diligence＊ ▶ p31
・Enhancing Group-wide Management of Chemical Substances, Preventing Pollution ▶ p37-38

Risks

・Promoting CSR Procurement ▶ p42-43

・Promoting Information Security ▶ p48
・Enhancing Group-wide Quality Assurance System ▶ p44-46
・Enhancing Group-wide Occupational

Health and Safety Management System ▶ p35

Business Partners
Employees

Key Stakeholders＊Steps that an organization should take in order to recognize, prevent and address negative influences on human rights.

12

Lion CSR Report 2017

2016 Highlight 01

2016 Highlight 02

Full-Scale Operation ofWaste Water Recycling
System at Chiba Plant

・Providing Information Useful for Daily

Life and Promoting Educational Activities

The Environment

Use by Consumers

Disposal by Consumers▶ p47

Highlight 03▶ p48
Fair Operating Practices

・Engaging in Progressive Environmental Activities

・Offering Products and Information thatContribute to the Development of a
Sustainable Society

p26-27, 36-41

・Enhancing Social Contribution Programs Leading to Forming Healthy and Comfortable Living HabitsHighlight 01

Labor Practices

Since its foundation, Lion has been offering products such as toothpastes, toothbrushes, hand soaps, and laundry detergents, and wehave been deeply engaged in using water through the “act ofwashing.” Because of this, we have put emphasis on water resource
conservation activities such as water usage reduction in manufacturing plants, development of water-saving products, and education
for rainwater utilization.
In 2015, we built a waste water recycling system at Chiba Plant to
reduce water usage and it became fully operational in 2016.

2016 Highlight 03

Human Rights

Promoting Work-Life Balance by
Supporting Employees RaisingChildren and Employees Providing
Nursing Care for Their Family

In order to establish a sustainable business, we aim to create a company environment in which each employee can work without anxiety and achieve his/her full potential. Particularly, our focus is on
diversity and work-life balance of employees, and we are consistently engaged in support activities so that employees can balance
work with nursing care and childcare.

Organizational Governance

Lion Group Educational
Activities for Hygiene
Care Habits in Japan andOverseas

Lion's CSR

Since its foundation, Lion has promoted a culture of cleanliness bydeveloping useful products and helping to foster good habits. We
continue to be actively engaged in provision of products and educational activities to enhance people’s awareness for cleanliness.
An example of this is the "KireiKirei" hand soap which was developed after a series of mass outbreaks of food poisoning caused by“O157” in 1996 in Japan. "KireiKirei" is now also sold in South Korea,
Singapore, Thailand, Hong Kong, and China. In each country, Lion is
not only offering products but also putting effort into educating people on the importance of hand washing.

p18-23, 49-51

・Promoting Risk Management, Embedding Compliance/Internal Control ▶ p28-30

Consumer Issues
Community Involvement andDevelopment

Customers
Shareholders and Investors
Environment and Society

Lion CSR Report 201713

Lion’s CSR

Objectives of the Medium-Term Management
Plan (V-2: 2015 to 2017) and Achievements in2016 in Relation to CSR Material Issues
For CSR material issues that we have identified, we conducted activities to achieve the 2017
medium-term objectives. In Japan, measures to promote diversity of employees, work-lifebalance and various kinds of training through e-learning were conducted, in addition tocross-department committee activities conducted every year. In overseas, taking into accountlaws, cultures, and customs which vary depending on countries and regions, activities havebeen promoted based on the situation of each group company.
Core Subjects

Ideal Vision

CSR Material Issues

2017 Medium-term Objectives
Domestic

Disseminating the Lion Group Charter for
Corporate Behavior as a CSR policy
Overseas

Establishing Groupwide CSR Management
Structure

Disseminating policies concerning CSR

Domestic

Managing progress toward objectives

Organizational
GovernanceOverseas

Maintaining a Sound
Management System
Trusted by Society

Setting objectives and managing progress
Domestic

Promoting Risk
Management

EmbeddingCompliance/
Internal Control
Systems

Continuously operating BusinessContinuity Plan (BCP) based on multiphaseprojections

Domestic

Raising awareness of compliance

Overseas

Enhancing internal control systems

Formulating and Disseminating Human Rights
PolicyDomestic

Disseminating the Lion Group Charter for
Corporate Behavior as a human rights policy
Domestic

Human Rights

Establishing a
Framework for
Respecting Human
RightsPromoting self-assessment questionnaireof CSR activities by suppliers andproviding feedback on the results

Ensuring Human Rights
Due Diligence*1

Domestic

Disseminating information regarding the
hotline and strengthening the advice andwhistleblowing framework
Overseas

Setting up and operating internal contacts
for reporting and consultations*1 Steps that an organization should take in order to recognize, prevent, and address negative influences on human rights.
14

Lion CSR Report 2017

Lion's CSR

Sustainable Development Goals (SDGs)*Indicators currently developed by IAEG-SDGs (Inter-agency Expert Groupon SDG Indicators) and indicators published in SDG Index & Dashboards
were referenced.

Organizational Governance

The numbers in the column of material issues in our table shown below are numbers of the SDGs which Lion is hoping tocontribute to attaining through its business.
These numbers have been specified*based on Lion’s business strategy and themateriality of issues that operating companies have to deal with in each market.
We will consider Lion’s objectives and KPI
toward achievement of each SDG by taking
into account our business direction.
Cited from the website of the United Nations Information Centre
Page of RelatedInformation in CSR
Report 2017

Implementing e-learning on the Lion Group Charterfor Corporate Behavior (Once a year)p30

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

Posting CSR policy in the work place
Distributing a handbook containing CSR policy toemployees-

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

Announcing progress through CSR Report and website(Once a year)

p14-17

http://www.lion.co.jp/ja/csr/lion_csr/promotion/vision.php

Announcing progress through CSR Report and website(Once a year)

p14-17

http://www.lion.co.jp/ja/csr/lion_csr/promotion/vision.php

URL of Lion Web Page

(Websites are all in Japanese)

http://www.lion.co.jp/ja/csr/management/compliance/-

http://www.lion.co.jp/ja/ir/library/ar/2016/

Implementing e-learning on the Lion Group Charterfor Corporate Behavior (Once a year)p31

http://www.lion.co.jp/ja/csr/humanrights/duediligence/

Having suppliers self-check their CSR activities andfeeding assessment results back to the suppliers (Oncea year)p42-43

http://www.lion.co.jp/ja/csr/businesscustom/procurement/

Disseminating the Compliance Awareness Survey(Annually implemented, Dissemination rate in 2016
was 98%)
Responding to and sorting out all cases

p30

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

Setting up and operating internal and external contacts forreporting, and an internal contact for consultations
Disseminating information regarding the hotline
through training on compliancep30

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

and implementing the assessment

Lion CSR Report 2017

Community Involvement andDevelopment

p30

Consumer Issues

Implementing the Compliance Awareness Survey
Coverage was expanded to include part-timers as respondents(Annually implemented, Dissemination rate in 2016 was 98%)
Providing educational programs through e-learning withregard to compliance, sexual harassment, power harassment
and insider trading

Fair Operating Practices

http://www.lion.co.jp/ja/csr/management/risk/

The Environment

p29

Labor Practices

Confirming and reviewing BCP at Executive
Committee (Once a year )●Introducing the internal control on financial reporting

Human Rights

Achievement from 2016

15

Core Subjects

Ideal Vision

CSR Material Issues

2017 Medium-term Objectives
Domestic

Promoting Human
Resource Development,
Revitalization Programs

Labor Practices

The Environment

Changing Awarenessof Employees
through Raising
Morale andMotivation

Contributing to
the Developmentof a Sustainable
Society as an
Environmentally
Advanced Company

Embedding measures for promoting PDCA throughimplementation of the target management system
Global human resource development
Domestic

Enhancing the “Diverse Human Resource Promotion
Programs”
Implementing supporting measures for women tobuild their career
Domestic

Establishing Good
Working Environments

Promoting work-life balance with measures forbuilding an environment, where employees can work
healthily and energetically
Overseas

Enhancing opportunities for talks between
employees and management
Domestic

Promoting Employees’
Health Management

Improving the environment to allow employees
to work healthily and energeticallyEnhancing Group-wide
Occupational Health and Safety
Management System

Improving occupational safety and the safety offacilities based on the “Health, Safety and Disaster
Prevention Management System”

Engaging in Progressive
Environmental Activities
Preventing Pollution

Domestic

Domestic

Overseas

Promoting “Eco Vision 2020” and managing
progress thereof
Domestic

Promoting pollution prevention

Enhancing Group-wide
Management of Chemical
Substances

Domestic

Enhancing chemical substances management systems
Domestic

Fair Operating
Practices

Promoting
CSR Activities
throughout the
Value Chain

Promoting CSR Procurement

Domestic

Promoting "Eco Vision 2020" and managing progress thereof

Offering Products andInformation that Contributes
to the Development of a
Sustainable Society

Consumer Issues

Pursuing Customer
Satisfaction by
Creating Safe
and Trustworthy
Products

Promoting CSR activity self-assessment questionnaires bysuppliers and providing feedback on the results

Providing Information
Useful for Daily Life andPromoting Educational
Activities

Domestic

Promoting environmental educational activities
for consumers through products
Domestic

Enhancing the provision of information that
contributes to healthy and comfortable life
according to different lifestyles and life stages

Domestic

Enhancing Group-wide
Quality Assurance System

Enhancing the group-wide quality assurance system
Overseas

Reinforcing compliance with regulations in eachcountry and enhancing responses to customers
Domestic

Community
Involvement andDevelopment
16

Co-existing and Coprospering with Society
and Communities /Contributing to theDevelopment ofSociety in the Areas of
Health, Comfort andthe Environment

Lion CSR Report 2017

Promoting Information
Security Measures

Promoting information security

Enhancing Social
Contribution Programs
Leading to Forming Healthy
and Comfortable Living
HabitsPromoting educational activities for oral health
Promoting preventive dentistry (recommending selfcare and professional care) and education for healthinstructors and children

Overseas

Enhancing information security management systems
Domestic

Domestic

Overseas

Overseas

Promoting cleanliness :Promoting Educational Activities forChildren’s Hand Washing and Gargling

Achievement from 2016

Page of RelatedInformation in CSR
Report 2017

Promoting the Target Management System to enhance PDCA activities towardattaining objectives and providing trainings thereon
Developing human resources with an aptitude for marketingp32

http://www.lion.co.jp/ja/csr/employee/development/

Engaging in the activities to achieve the target based on the Act on Promotion of
Women’s Participation and Advancement in the Workplace
Establishing a special subsidiary Lion Tomoni Co., Ltd. to promote
employment of people with disabilities

p33

http://www.lion.co.jp/ja/csr/employee/various/

Enhancing work-life balance to support employees raising children andemployees providing nursing care for their family
Promoting the Next Generation Support Act Phase 5 Action Plan

p24-25,34

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

Periodically holding labor-management meetings

p32

http://www.lion.co.jp/ja/csr/employee/relations/

Providing training on health management at every level of employee training
Conducting health checkups on a regular basis (Once a year)
Enhancing provision of information on oral health care through thee-learning system
Introducing a saliva test system to measure oral cleanliness in health checkups

p35

http://www.lion.co.jp/ja/csr/employee/health/

Organizing Safety, Hygiene and Disaster Prevention Meeting to promote
PDCA for safety activities (Twice a year)p35

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

Managing the progress of the Environmental Objective of "Eco Vision
2020" towards its targets for 2017
Full-scale operation of a waste water recycling system at Chiba Plant

p26-27,36-41,
43

http://www.lion.co.jp/ja/csr/env/ecovision2020/

Thoroughly managing emissions and waste water in accordance withstatutory and voluntary criteria
River water monitoring both by industrial groups and by Lionp37

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

Establishing and operating a management system for information on
chemical substances

p37-38

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

Having suppliers self-check their CSR activities and feeding assessment
results back to the suppliers (Once a year)

p42-43

http://www.lion.co.jp/ja/csr/businesscustom/procurement/

Holding the Environmental Action Promotion Committee to manage
environmental progress (Twice a year)
Continuing purchase of RSPO certified palm oil derivative

p36-37,43

http://www.lion.co.jp/ja/csr/env/ecovision2020/
http://www.lion.co.jp/ja/csr/env/guide/

URL of Lion Web Page

(Websites are all in Japanese)

p28,
30,37-38,
44-46

http://www.lion.co.jp/ja/csr/consumer/quality/

Enhancing customer support by the Customer Support Center and the Marketing
Department
Enhance abilities to comply with laws and regulations of each country-

http://www.lion.co.jp/ja/csr/consumer/opinion/

Providing training through e-learning with regard to information security, risksof social media, and information management systemp48

http://www.lion.co.jp/ja/csr/management/risk/

Implementing various measures to prevent leak of personal and confidential
informationp48

http://www.lion.co.jp/ja/csr/management/risk/

Holding the Oral Health Event of Tooth Brushing for Children in Asian countries
and regions
Implementing tooth brushing educational activities in areas near our businessfacilities
Implementing tooth brushing educational activities at kindergartens andpreschools

p50

Implementing educational activities for hand washing and gargling in various
countries in Asia
Implementing hand washing educational activities in areas near our business facilities
Implementing hand washing educational activities at kindergartens and preschools

p18-23,51

The Environment

Promoting PDCA for quality assurance activities conducted by the CS/PL
Committee (Twice a year)
Establishing and operating a management system for information on chemical
substances
Providing education on Fundamental Quality Assurance through e-learning
Enhancing the management structure of advertising

Labor Practices

p47

Human Rights

Creation, Accumulation, and Provision of Living Information by Meisters of Daily Life
Proceeding with Oral Care Solution Business (ORALYSIS, ORALCOM)
Publication of information through Lidea, a website for lifestyle information,and communicating to consumers by making good use of Lion’s accumulated
information

Organizational Governancep48

Lion's CSR

Attaching Environmental Labels to eco products and providing consumers
with information
Promoting the Toothbrush Recycling Program

http://www.lion.co.jp/ja/csr/env/communication/
http://www.lion.co.jp/ja/csr/report/pdf/2016-p24-25.pdf
Fair Operating Practices

http://www.lion.co.jp/ja/csr/consumer/communication/

Consumer Issues
Community Involvement andDevelopment

http://www.lion.co.jp/ja/csr/community/oral/
http://www.lion.co.jp/ja/csr/community/overseas/

http://www.lion.co.jp/ja/csr/community/washing/
http://www.lion.co.jp/ja/csr/community/overseas/
Lion CSR Report 201717

light 01
2016 High

Lion Group Educational Activities for
Hygiene Care Habitsin Japan and Overseas

Aiming at developing a culture of cleanliness in society
Since its foundation, Lion has developed useful products
and helped foster healthy habits to promote a culture ofcleanliness in society. One of our challenges around the1890s was to propose the idea that clothes should be
washed with soap when people were washing their clothes
only with water. “Lion Laundry Soap” that we havelaunched, successfully promoted people to use soap to wash
away the dirt that could not be cleaned with only water.
This later became a new habit within the society.
Another challenge was the eradication of parasite eggs
attached to vegetables. In the early 1950s, when people had
low awareness of hygiene in the aftermath of World War II,
health problems caused by parasites were rampant in Japan.
To help solve this social issue, Lion developed “Lipon F,” adetergent that could be used to wash vegetables and fruits,
and thus played an important role in eliminating parasites.
Today, we continue to contribute to the development ofa culture of cleanliness in society through products that respond to social issues and conduct educational activities that
help foster healthy habits.

Lipon F
(Earned the top recommendation of the Japan Food Hygiene Association)

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

Birth of “KireiKirei”“KireiKirei,” Lion’s hand washing soap, was born in 1997.
The product was developed after a series of mass outbreaks of food poisoning in Japan, caused by pathogenic
E. coli bacteria O157 that became a big social issue in1996. We determined to undertake a social mission to establish a “habit of hand washing” to protect children
from bacteria and viruses.
For children to form a habit of regular hand washing, itis necessary that the whole family adopt the hand wash-

ing habit. This habit cannot be easily established throughstrict discipline and with force, and it is important thatchildren find fun in hand washing, and do it voluntarily.
We believe that everyday hand washing should be madeinto a habit that all of the family can enjoy, and that is
the story behind the launch of “KireiKirei” hand soap.
Currently, we provide various products for cleanlinessbesides hand soaps under the “KireiKirei” brand, such as
gargles and hand sanitizers.

“KireiKirei” brand product lineup

Wet wipes

Medicated Liquid
Hand Soap

Foaming Hand Soap

Foaming
Hand Soap for
the Kitchen

Since its launch, “KireiKirei” hand soap has always played an important role in improving
people’s awareness for cleanliness. The domestic hand soap market* expanded to approximately 30,900 million yen in 2015 from 4,600 million yen in 1995 (the year before the outbreak of O157) along with growing awareness of cleanliness in society.
It became popular not only at home, but also in schools, offices, and restaurants, and"KireiKirei" has been the number-one hand soap brand in the Japanese market since 2000.
It is now also sold in various countries and regions in Asia.
*Yearbook of Chemical Industry Statistics Shipment value

Hand
Sanitizer(million yen)Gargle〈〈Domestic market
value of hand soap〉〉

35,00030,00025,00020,00030,89915,00010,0005,000
018Lion CSR Report 2017

4,561
1995

2015

Lion Group is actively addressing hand washing educational
activities for children specifically by focusing on forming a handwashing habit from an early age. We introduce some of the educational activities conducted in each country in this Highlight.

Organizational GovernanceOverseas marketing of “KireiKirei” hand soap started in 2005 andcurrently the product is sold in South Korea, Singapore, Thailand,Hong Kong, and China, in addition to Japan. In each country, we not
only provide the products but also promote hand washing educational activities to improve people’s awareness of cleanliness.

Lion's CSR

Aiming to establish a habit of hand washing across countries and regions in Asia〈
〈 “KireiKirei” hand soap is sold across Asia 〉〉

Human Rights

South Korea

Labor Practices

China

The Environment
Fair Operating Practices

Japan

ThailandConsumer Issues
Community Involvement andDevelopment

Hong Kong
Singapore

Lion CSR Report 201719

Educational Activities for
Hygiene Care Habits in Thailand
Hand Washing Educational Activities for Children in a School near Our Production Plant
Lion Corporation Thailand (LCT) provides hand washing education for schoolchildren near Sriracha plant.
In the hand washing lectures, children first rub a special
cream on their hands, which glows under a black light. Then,they are asked to wash their hands and check under the black
light how well the cream came off. From this exercise, children
are able to understand the hard-to-wash parts of their hands

and that washing hands with just water or washing hands poorly cannot get rid of dirt properly, and are then taught correct
washing techniques.
Since most of the students who participated in the handwashing lecture did not have the habit of washing their hands
before lunch, LCT will continue to contribute to the establishment of hygienic habits among students.

Checking the dirt on hands under a black light

Reviewing the hard-to-wash parts after checking under a black light

Voice from employees of Thai Lion
(Left) Pornnapa Wimonrat Special Project Manager(Right) Natthasinee Suksawang Product Manager
We have taught students near our plant how to brush their teeth correctly since 2013. As wefound that most of the students did not wash their hands before lunch, we also started handwashing instructions. Hand washing, just as tooth brushing, is an easy and effective way to prevent diseases. We will continue this combination of tooth brushing and hand washing activity
with the aim of making more students develop the habits of tooth brushing and hand washing.

Educational Activities for Hygiene Care
Habits in Singapore
KireiKirei Celebrates World Hand Hygiene Day
In conjunction with World Hand Hygiene Day,* Lion Corporation Singapore educatedpreschool children on the importance of good hand hygiene practices using KireiKirei
Anti-bacterial Foaming Hand Soap product of Lion Corporation Singapore. Throughart and activities, the children learned about the importance of good hygiene andpracticed correct hand washing techniques with the KireiKirei brand ambassador. The
children also learned that removing bad bacteria and retaining the good ones could
keep them healthy through dance and games.
＊An event coordinated by the World Health Organization to promote hygiene care awareness and celebrated annually on May 5.

The KireiKirei brand ambassador (center) withchildren

Voice from employee of Singapore LionTan Yi Ling Product Manager
Seeing children and their caregivers participate actively to learn about the importanceof good hygiene makes me happy as we are able to contribute to helping them instillgood habits to keep bacteria away and lead a healthy lifestyle.

20

Lion CSR Report 2017

Lion's CSR

Educational Activities for
Hygiene Care Habits in South Korea“Ai! Kekute” Hand Washing Class at Kindergartens

Organizational Governance
Human Rights“Ai! Kekute“ hand washing class

Labor Practices

Since 2016, to teach children ways to protect their own
health, CJ Lion has conducted educational activities on
hand washing using Ai!Kekute, a hand soap that CJ Lionsells in South Korea. (“Ai! Kekute“ means “Oh! Clean!“ inKorean)The most critical period in hygiene care habit establishment is childhood. CJ Lion conducts the “Ai!Kekute“ handwashing class, begun in 2016, for kindergarteners ages 4
to 6 in Seoul and nearby cities. In the class, a bubbly
foam-shaped mascot character and a facilitator capture
the children’s attention and encourage their active participation. Through hand washing songs and exercises, children learn that hand washing is not a boring thing, but
actually fun.
Hand washing check sheets and stickers are distributed toevery participant after the class, with the aim of encouraging correct hand washing back at home. Each time a childwashes his or her hands correctly, a sticker will be put on
the sheet by a supervising adult. The sheets are then collected at the kindergarten for the teacher to check if handwashing habits have been established properly.
In 2016, CJ Lion conducted the “Ai!Kekute“ hand washing classes at 160 kindergartens and 18,789 children participated.

Hand Washing and Gargling Class inPartnership with a Retail StoreThe Environment
Fair Operating Practices

In partnership with HomePlus, a retail store in South Korea, CJ Lion promotes activities for customers that enhance healthy habits for infectious disease prevention.
CJ Lion conducts hand washing and gargling classes forchildren and their parents at the HomePlus Cultural Center. The classes are conducted during the summer andwinter vacation periods, when outbreaks of infectious
diseases such as influenza and norovirus most often occur.
In 2016, CJ Lion conducted hand washing and garglingclasses 25 times at the HomePlus Cultural Center, with 15
to 20 child-parent pairs joining each time. In total, about
1,000 people took part in the class.

Hand washing and gargling class

Voice from employee of CJ Lion
Minji Lee Brand Manager, Personal Category Team

Consumer Issues
Community Involvement andDevelopment

In South Korea, more and more people are concerned about personal hygieneand health. Underpinned by the brand philosophy of “Ai! Kekute,“ “To form a
habit of hand washing during childhood,“ we have conducted various social
contribution activities including “Educational Program on Hand Washing andHygiene for Children in Kindergarten.“
In this program, a bubbly foam-shaped mascot character and a recreation
instructor visit kindergartens and perform songs and exercises to promote
hand washing. As every child can participate in the lively activities, the program is very popular.
We will continue to promote various educational activities to support thehealth and comfortable lives of consumers, with a sense of mission that “Ai!
Kekute“ is the number-one hand soap brand in South Korea.

Lion CSR Report 201721

Educational Activities for Hygiene Care
Habits in China
Conducting Hand Washing Activities at Kindergartens in Shanghai
Since 2016, Lion Qingdao has supported hand washing activities aimed at children from ages three to six in kindergartens in Shanghai.
In Shanghai, to prevent the spread of infectious diseases, children are encouraged to wash their hands before
entering the kindergarten building. Lion Qingdao provides KireiKirei hand soaps (products sold by Lion Qingdao) to kindergartens for children to use at the hand washing sink.

Children washing their hands

Moreover, Lion Qingdao supports the hand washingclasses conducted in kindergartens. At the hand washingclasses, children are taught the importance of hand washing by their teacher, and every child receives a KireiKirei
Health Diary, which contains instructions on correct handwashing techniques and timings.
In 2016, the KireiKirei Health Diary was distributed toapproximately 30,000 children in 104 kindergartens.

Children holding the KireiKirei Health Diary

Setting up the “Moving Hand Wash Sink” in Big Parks in Shanghai
In Shanghai, spring and autumn are the most popular seasons
to spend time outdoors, and many people gather at parks.
However, there are not many places for them to wash theirhands before eating and drinking in parks. In May, Octoberand November 2016, Lion Qingdao established the “Moving
Hand Wash Sink” in big parks in Shanghai. At the “Moving

Hand Wash Sink,” people are taught how to wash their hands
correctly, and the KireiKirei Health Diary, which instructs correct hand washing techniques and timings, is distributed to allparticipants. In 2016, about 30,000 people used the “Moving
Hand Wash Sink.”

People using the "Moving Hand Wash Sink"

Voice from employee of Lion Qingdao
Maggie Ma Brand Manager, Marketing Department
Chinese consumers, especially the young mothers, have become much more aware of hygiene habits in the last years. They realize that hand washing is not only a good habit tokeep bacteria and viruses away but also an elegant part of their life. It is our pleasure to
be KireiKirei representatives, as we provide high quality products and healthier lifestyle.
We are happy to see more and more consumers become fond of KireiKirei products
and form a habit of good hygiene together with us.

22

Lion CSR Report 2017

Lion's CSR

Educational Activities for Hygiene Care
Habits in Japan
Voluntary Hand Washing Educational Activities by Lion Employees◆ Employee training ◆The target is that all of Lion's employees participate in
the activity by 2050.
During 2016, we visited 43 facilities across Japan andprovided hand washing education to 6,687 children. The
accumulated number of employees who have participated
totals 571 since 2012 and the participation rate is 22%.
◆ Support of reconstruction

work from earthquake disaster ◆Organizational Governance

Lion conducts hand washing educational activities in kindergartens and preschools across Japan.
Lion employees voluntarily participate in the activities
and teach children the importance of hand washing andcorrect hand washing steps through programs such as“KireiKirei Picture-Story Show” and “Hand Washing Workout.”

Human Rights◆ Working with business partners ◆Labor Practices

As a part of our corporate training programs, young employees conduct
hand washing educational activities. Every year, around 60 to 70 employees
are divided into teams, and teach children in kindergartens and preschools
all over Japan the importance of hand washing.

We promote hand washing educational activities in kindergartens and preschools in Ishinomaki City in Miyagi Prefecture, an area closely connected to
our founder, as a part of Lion’s initiatives to support the reconstruction
work after the Great East Japan Earthquake.

◆ Working with local governments ◆(Activities conducted at local offices)

The Environment
Fair Operating Practices

We work together with our business partners across Japan in hand washing educational activities. Our joint effort with SugiyamaDrugs Co. Ltd. in
Nagoya-City is one of those examples.

Lion Chemical Co., Ltd.'s Oleochemical site located in Sakaide City, Kagawa
Prefecture, is the production base of “KireiKirei” hand soap. In 2014,
Sakaide City, Lion Chemical, and Lion jointly launched “KireiKirei City –Sakaide” Project, aiming to embed and establish hygiene care habits
among the citizens of Sakaide.

Consumer Issues

Voice from employee working with a business partner (in Nagoya)
Akinori Hosaka, Health and Home Care Products Sales Division, Tokai Hokuriku Sales Branch

Members of SugiyamaDrugs’ hand washing promotion team(Mr. Hosaka is the second from right at thebottom)Lion CSR Report 201723

Community Involvement andDevelopment

Since 2015, we have conducted hand washing educational activities jointly with
SugiyamaDrugs Co. Ltd. in kindergartens and preschools near their stores, teaching children the importance of hand washing and correct hand washing steps. The
stores themselves are running educational programs to help children develop ahand washing habit. Working with SugiyamaDrugs, a retail rooted in the region,
we aim to promote correct hand washing habit among children in the area and to
improve people’s awareness of cleanliness.

light 02
2016 High

Promoting Work-Life Balance by Supporting
Employees Raising Children and Employees
Providing Nursing Care for Their Family

The working environment Lion aims to create
To build a sustainable company, we aim to create a working environment in which each employee works with a sense ofwell-being to achieve his/her full potential. Especially, our focus is on the diversity and work-life balance of employees.
In this Highlight, we introduce our programs promoting work-life balance by supporting employees raising children
and employees providing nursing care for their family members.

Supporting employees to maintain a proper balance between work and nursing care
The coming age of nursing care

(Number ofpeople inmillions)

As the aging of society in Japan is rapidly progressing, thenumber of people who require nursing care is increasing
steadily [Figure 1]. According to a forecast, approximately
one in three Japanese people will become a senior citizen(65 years old and over) by 2025* and Japan will enter an
age when many people will be involved in nursing care insome form or other. At Lion too, it is predicted that employees around the age of 50 will highly likely be involvedin nursing care of their family members in the near future. Thus, it is obvious that the company must establish a
support system and create a proper working environment
to help its employees maintain the balance between workand nursing care.

〈〈 [Figure 1] Changes in the number of〉people requiring nursing care in Japan 〉

7
6
5
4
3
2
1
0

4.401

5.306

5.611

5.838

6.058
million

2011

2012

2013

2014

2.983
2001

2006

Source: Status Report on Long-term Care
Insurance Projects (Annual Report) FY 2014 (Japanese),
Minister of Health, Labour and Welfare＊ Source: Statistics Topics No. 72, Statistics Bureau, Ministry of Internal Affairs andCommunications

Programs to help maintain a balance between work and nursing care
At Lion, we have introduced various programs to help employees maintain a proper balance between work andnursing care for their family, following the enactment ofrelated legislation. In 2016, we embarked on enhancement
January 2016

Step1

Systemestablishment

Working arrangement:
Short Hours Flextime System (SF)
Shorter working hour is combined with flex-time (before

revision: fixed shorter working hour system)

Nursing care leave:
Up to 365 days which can be taken separately in combination
with SF system (before revision: up to 93 days which can be taken

only at once in combination with fixed shorter working hour system)

Short-term nursing care leave:
Up to 5 days per family member who requires nursing carewhich can be taken at a half day as minimum unit (before
revision: only from one day as minimum unit of acquisition)

July 2016 and after

Step2

Lion CSR Report 2017

Internal
communications/
Laying the groundwork● Held seminars toward employees on
support programs to maintain a balance
between work and nursing care for thefamily● Developed a website to support
employees maintain a balance between
work and nursing care
● Posted a handbook to support
employees maintain a balance between
work and nursing care on the company
intranet

In January 2016, we introduced the new Short Hours Flextime System as Step 1, replacing the existing shorter working hour system in which employees were required to fix
their working hours. With the new system, employees can
combine the shorter-work hours with flex-time, allowing
them to control their work hours more flexibly.
We enhanced our systems in Step 3 (2017), eliminating

24of the programs in the following three steps to create aworking environment in which each employee can devote
time for work without anxiety.
January 2017

Step3

Enhancing
the System

Working arrangement:
Short Hours Flextime System (SF)
Applicable to the entire periodrequired for nursing care
Nursing care leave:
Up to 365 days can be taken separatelyfrom the SF system

SF’s upper limit of 365 days in combination of nursing careleave, and allowing employees to apply for SF as long as
nursing care is required.
We will continue to improve our long-term nursing care
support systems to allow employees to work free fromanxiety and maintain a proper work-life balance.

Supporting employees to maintain a proper balance between work and childcare
Recently, the Japanese government has been pushing ahead with laws
and programs to promote women’s empowerment, aiming to build a gender-free society in which men and women participate equally in social activities. In fact, 33.9% of women left their jobs after giving birth, demonstrating the fact that striking a balance between work and childcare is stilla huge challenge for Japanese society [Figure 2].
At Lion, we believe that the empowerment of female employees is essential to sustainable growth of the company, and we implement various
programs to support female employees, who return from maternity/childcare leave, to maintain a healthy balance between work and childcare sothat they can continue to work actively for a long time.
In this section, we introduce our new activities supporting employees
raising children to help them establish a proper work-life balance.

Continue working (with childcare leave)
Continue working (without childcare leave)
Left work after childbirth
Unemployed before and after pregnancy

Organizational Governance

Programs to support maintain a proper balance
between work and childcare

Lion's CSR〈〈 [Figure 2] Turnover rate offemale employees after childbirth(2015)〉〉

Returning to work after maternity leave

Unknown

4.2 %23.6 %

28.3%

Left work after childbirth33.9 %The data shows thechanges in job status of
women who gave birth totheir first child between
2010 and 2014.

Labor Practices

We hold the “Back-to-Work Seminar” twice a year, tailored for employees who are on childcare leave, with an aim to lessen their anxiety about catching up with work and make them feel positive before
returning to their workplaces. The seminar includes a lecture on thecompany’s latest updates, a meeting with colleagues who have already returned to work, and a group session to discuss how to strike aproper balance between work and childcare. We believe the seminaris successful in giving confidence to employees before returning backto work.

10.0 %A website to support employees returning towork and raising children
In 2016, we launched the “website to support employees returning towork and raising children” for employees on childcare leave. It provides various childcare information catering to each employee, andthe latest company updates.
Through the website, the users receive the following benefits:

A scene from the Back-to-Work Seminar

The Environment◎ Individual consultation with an expert via phone call/e-mail todiscuss the stress and worries related to childcare◎ Reference to well-prepared FAQs to get answers for childcare questions◎ Updates from the company on business and back-to-work
preparation

Human Rights

Back-to-Work Seminar

Source: The 15th
Japanese National
Fertility Survey,
National Institute ofPopulation and Social
Security Research

The FAQ page from the website to support employees
returning to work and raising children

Voice from employee who took childcare leave

Fair Operating Practices

These are all helpful for employees’ childcare and back-to-work planning. In addition, employees can acquire various
business skills, including PowerPoint and Excel techniques, through self-development courses offered on the website,and exchange information with other employees on childcare leave using the attached SNS function.
We have successfully developed a better working environment and enhanced the childcare support system through avariety of systems that enable employees to maintain a proper balance between work and childcare. As a result, 100% of
our employees have returned back to work after childbirth. We will continue to enhance our programs to provide more
opportunities to our female employees.

Airi Tomida, Sales Development Department

Community Involvement andDevelopment[Promoting a work-life balance] (Japanese)

Consumer Issues

I was on maternity leave and childcare leave for a year from April 2016. It was the first time forme to be away from the office for such a long period, and I had mixed feelings of excitementof having a new baby and concerns about catching up with my colleagues and work.
The “website to support employees returning to work and raising children” encouraged
me a lot. It gave me opportunities to exchange information and share childcare stresses
with colleagues, who were also on childcare leave or had returned to work. A 24-hour expert consultation system was always available, which gave me peace of mind. The latest
company updates periodically posted by the Personnel Department made me feel refreshed
and whenever I read it, I always found myself in work mode.
I participated in the Back-to-Work Seminar with my child. Listening to the stories fromcolleagues who had already returned to work, making small efforts every day to meet new
challenges, I became confident about returning to work and achieving both work andchildcare. I know it will become very busy after returning to work, but I am prepared tomake my own small efforts every day to enjoy both work and childcare even more.
URL http://www.lion.co.jp/ja/csr/employee/work_life/

Lion CSR Report 201725

light 03
2016 High

Full-Scale Operation ofWaste Water Recycling System
at Chiba Plant

Lion and water resource
Since its foundation, Lion has been offering products suchas toothpastes, toothbrushes, hand soaps, and laundry detergents, thus demonstrating our deep relationship withwater through the act of “cleaning.” Because of this, we

put a special focus on water resource conservation activities such as development of water-saving products, water
usage reduction in production facilities, and promoting
rainwater utilization.

Lion’s water resource conservation activities

2. Production

Development ofwater-saving products

Reduction in water usage in
Lion’s plants in Japan

Absolute quantity
3

3(Thousand m /million yen）
Water use per unit total revenue

2,000

49% reduction
from year 2000 in
absolute quantity
and water use perunit total revenue

1,830

CHARMY Magica
Easily removes grease

0.006161,000

0.00312969

926

LOOK BathCleaner

2000

2010

2014

Forest maintenance activities
by employees
Lion Forest in Yamanashi

0.004

0.00340

1,173

0

0.006

0.00411

1,337

Quick rinse, the foamfrom the detergent
washes off quickly

0.008

0.00476

1,500

LOOK BathAntimold Fogger
Keeps your bathroom clean by
preventing the growth of mold

Education for rainwater utilization
Rainwater Utilization Ideas Contest

Water use per unit total revenue（Thousand m ）Absolute quantity

Top Super NANOX
Rinse only once

Communicating theimportance of waterinternally and externally

Changes in water usage of
Lion's plants in Japan

Examples of water-saving products

URL

3. Socialactivities

1. Productdevelopment

0.002

0
2016 （Year）

2015

Related information p51

http://www.lion.co.jp/ja/csr/env/resources/(the above website is in Japanese)

Reduction of plant’s water usage -Chiba Plant
Chiba Plant started its operation in 1982 as a plant specialized
in the production of phosphorus-free detergents in consideration of the water usage. As the plant is the most water-consuming production facility of Lion, it aims to be a "plant that is
advanced in water resource conservation" and has been working on the issue.
Water used in the Chiba Plant is industrial water originatingfrom river water. We process the water internally to be used
for three different purposes: ❶ for production processes, ❷ fordaily life use, ❸ for products.
Normally, waste water from production processes and daily
life use is purified to a habitable level for fish such as goldfish
or Japanese killifish by waste water treatment facilities, andthen discharged to rivers and seas. However, at Lion, we went
one step further to introduce a waste water recycling system inwhich waste water from production process is purified to bereused for production processes again.

26

Lion CSR Report 2017〈
〈 [Figure 1] Former waste water processing facilities〉〉●❶

Water forproduction
processes
Cooling water,
boilers, etc.

Industrial
water

Purifyingtreatment
facility●❷

Conventional
waste water
treatment
facility

Water fordaily lifeuse
Tap water,
toilets, etc.

●❸

Water forproducts

Shipment

Discharge

〈〈 [Figure 2] New waste water recycling system 〉〉
Water forproduction process

Waste water
pre-processing facility

Industrial
water

Purifyingtreatment
facility❶

New waste water
recycling facility

Water
for daily
life use

Human Rights

Former waste
water
treatment
facility

Recycling system❷

New wastewater
treatment
facility

Water forproducts

Organizational GovernanceIn addition, new waste water treatment facility (Figure2-❷) was introduced for better purification of daily life
waste water and discharge from the purifying treatment
facilities. It has reduced the amount of nitrogen in thewaste water, which causes eutrophication of the sea.
Thanks to the introduction of the new system, water
usage at Chiba Plant in 2016 was 122,000m3 less than that
before its introduction in 2013.

Lion's CSR

Full-scale operation of waste water recycling system
Aiming to reduce water usage, a new waste water recycling system became operational at Chiba Plant in December 2015. The system was put into full-scale operation in2016.
The key feature of the system is the new waste water
recycling facility (Figure 2-❶). The new recycling facility
enables the recycling of industrial waste water generated
from production processes, which used to be discharged
to rivers and seas.

Discharge

Shipment

Labor Practices

New waste water recycling facility

New Technology Encouragement Award from the Japan Society on Water Environment (JSWE)
In June 2017, the development of the new waste water recycling system at Chiba Plant was recognized as a winner of the JSWE New
Technology Encouragement Award from the Japan Society on Water Environment, the largest academic society for water-environment
conservation in Japan. The award is given to individuals and groups, who have contributed to society through outstanding achievementsin the field of water environment technology.

[The JSWE New Technology Encouragement Award] (Japanese) URL https://www.jswe.or.jp/awards/gijutsu/index.html
The Environment

Other Water Resource Conservation Activities in the Chiba Plant
Rainwater utilization

Building a biotope

LEO TOPE

Rainwater is collected in a rainwater tank installed within the plantpremises and used for various purposes, including for the carp pond.
This helps to reduce the overallwater usage in the plant and communicate towards visitors to theplant on the importance of water.

Fair Operating Practices

To protect the natural water environment and biodiversity, employees in the Chiba Plant have createda biotope (named LEO TOPE) by hand within its
premises in October 2011. Employees look after the
biotope themselves such as by planting rice andmaintaining an ideal environment for fireflies. Thishas helped to enhance employees’ environmental
awareness and promote environmental communication in the local community.

Our continuous efforts in environment conservation activities at Chiba Plant, including the introduction of the waste
water recycling facilities, were highly recognized from outside the company and the plant won the JCIA Responsible
Care (RC) Award by the Japan Chemical Industry Association in May 2017.
Consumer Issues

Voice from employee Waste water recycling facility
Ryusuke Mitomi
Chiba plant, Engineering Group

Ryusuke Mitomi

Community Involvement andDevelopment

I was in charge of the design and building of the facility in this project. Our
challenge was to consider how we can collect and treat as much waste water as possible from the production process and reuse it again for the production process. The system was completed by the united efforts of thestaff from the plant, R&D, and HQ, and specialists from the water treatmentcompany. The system is currently in good shape, and we will continue to
produce various products with reduced water usage to achieve the dual
goals of water resource conservation and stable production.

Operators ofwaste water recycling facility

Lion CSR Report 201727

Ideal Vision

Maintaining a Sound
Management System that is
Continuously Trusted by Societyalization
n
a
g
r
O
nance
Gover

Basic Approachensure compliance. By strengthening and improving
its corporate governance system, Lion aims toenhance its corporate value.

Lion’s top priorities for corporate governance are toincrease management transparency, improve theefficiency of supervision and decision making, andCorporate Governance System
Approach to enhancing functions to audit and supervise management
At Lion, supervision of management is governed by an
Audit and Supervisory Board system. For the Board of Directors to focus on management decision making and supervision, in March 2004, Lion has implemented the Executive Officer System and transferred the businessexecution function of Board of Directors to the Executive
Committee.
The membership of the Board of Directors was reduced (Currently 9, was 19 before the implement of the
Executive Officer System) to ensure more substantial
discussions and faster decision making. The Nomination
Advisory Committee and the Compensation Advisory
Committee were established to ensure managementtransparency and to enhance corporate governance.
Core members of each committee are three external directors and two external corporate auditors, who are all
qualified as independent directors. Regular meetings(scheduled every month) are held between the Representative Director and all external directors to exchange
information in order to enhance supervision and monitoring of management.
In addition, the Management Evaluation Committee(current Advisory Committee) was set up in October 2003
to ensure that the opinions and advice of outside experts
are reflected in management.

■ Corporate Governance System (as of April 1, 2017)
Shareholder Meeting
Consultation
Auditing

Response

Auditing
Opinions
and advice
on legalcompliance

Response

AdviceReporting

Delegation Reporting

Reporting
Auditing

Accounting auditors

Consultation

Monitoring

Proposals
Senior Executive
Committee
Basic policies for mediumto long-term management
plans and other major
corporate strategies

Reporting［Report on Corporate
Governance］(Japanese)
Auditing

URL＊CS/PL Committee

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

28

Lion CSR Report 2017

CS: Customer Satisfaction
PL: Product Liability
Cross-departmental committee
to promote quality assurance
activities.

Promotion of Risk Management

Labor Practices

1.Product quality evaluation 2.Fluctuation in raw materials costs
3.Fluctuation in foreign exchange rate
4.Major lawsuits, etc. 5.Natural disasters (e.g. earthquakes)

Internal Control Systems[Securities Report] (Japanese)

URL http://www.lion.co.jp/ja/ir/library/yuhou/

Fair Operating Practices

The Auditing Office, which reports directly to the president, implements audits of various business units in termsof their legality, validity, efficiency, and risk management
in order to establish a foundation for healthy businessactivities.
Audit results and improvement status are reported tothe president. The results at the corporate level are summarized and reported to the Executive Committee twice ayear for PDCA management of audit work, and for sharing of information with the business execution departments.

The Environment

Enhancing systems to audit the appropriateness of operations
Systems have been put in place to ensure the appropri■ Internal Audits
ateness of the Lion Group’s operations in accordance with

Consumer Issues

Japan’s Companies Act and the Ordinance for Enforcement of the Companies Act.
With regard to systems for evaluating and auditing internal control over financial reporting as prescribed in Japan’s Financial Instruments and Exchange Act, we havebeen establishing controls at the company-wide and business-process levels.
Evaluations of internal control effectiveness are carriedout by the Auditing Office, which reports findings to thepresident and corporate auditors, as well as to the Boardof Directors on a regular basis.
As a result of the evaluation, we have determined that
Lion’s internal control over financial reporting in 2016
was effective, and submitted the Internal Control Reportto the Prime Minister together with the Securities Reportin March 2017.

Human Rights

Lion is pushing ahead with the establishment of its own
systems to minimize damages and to continue business so
as to provide products to customers even in cases where alarge earthquake, spread of infectious disease (pandemic), or other contingencies occur.
We set up a task force according to the “Manual on
countermeasures for seismic disasters” in cases where
seismic disasters occur, and the “Manual on countermeasures against novel influenza and other infectious diseases” in cases where a pandemic due to novel influenza viruses or other infectious diseases are expected to occur, so
as to respond to such contingencies. Whether BCP shouldbe implemented or not is determined depending on thesize of the disaster and the degree of the damages. If the
BCP is implemented, we would give first priority to the
supply of consumer products among our businesses.
For risks that may have a material impact on our business, we update the countermeasures and report to the
Executive Committee annually.

Organizational Governanceand reliable products, we have appointed a Director Responsible for Risk Management who exhaustively controls
and supervises the risk of the whole Lion Group. Particularly for the risk management of the environment, quality assurance, and accidents and disasters, each committee
discusses countermeasures in advance and the Executive
Committee deliberates if necessary. Each plant is certified
with ISO14001 and eagerly works on quality management and environmental protection. In cases where physical emergencies such as natural disasters and accidentsarise, in accordance with the Emergency Response System, we report the relevant facts to the president andcorporate auditors, among others, and report how thesituation is being handled to the Executive Committee
and the Board of Directors.
Of many different risks that can occur in the course of ourbusiness operation, the five points below have been disclosed in the Company’s Securities Report* as key areas that
can have major influence on the judgment of our investors.

Lion's CSR

Improving systems to respond to various risks in businessIn order to continue providing our customers with safe
■ Business Continuity Plan (BCP)UN Global Compact

Community Involvement andDevelopment

The UN Global Compact (UNGC), in which Lion has participated since 2009, is a voluntary initiativeof companies and organizations aiming to realize ten principles in the areas of human rights, labour, environment, and anti-corruption. Lion is also a member of the Global Compact Network
Japan (GCNJ), and participates in the subcommittee activities on a regular basis in order to promote the CSR activities of the member companies.
［UN Global Compact］ URL https://www.unglobalcompact.org/［Global Compact Network Japan］(Japanese) URL http://ungcjn.org/

Lion CSR Report 201729

Organizational Governance

Embedding Compliance
Efforts for legal compliance and enhancement of a sense of ethics■ The System of AL Heart Hotline
Consulter/Informer(employees of the Lion Group, temporary staff,
or external business partners)■ Compliance Awareness Survey*2

All Lion Group employees are asked annually to complete
a compliance awareness survey. In 2016, the survey was
conducted for the thirteenth time. The findings are reported to management and feedback is provided to individual divisions. This contributes to the maintenance andstrengthening of the compliance systems.
From 2016, the pool of respondents was expanded toinclude part-timers. The survey (about a 98% response
rate from 4,539 employees) solicited opinions on a range
of issues including problems with work environments.

Feedback

Internal Contact

Consultations
Reportandcontents ofNotifications
consultation/
notification

External contact(general manager
specializedin corporate ethics)

Reporting

Feedback(lawyer)

Report results ofInstruction investigation andcountermeasures

Director Responsible
for Corporate Ethics

Board of Directors

Report asneededCorporate Ethics
Committee
Set up as needed

The Ethics Evaluation Committee(consisting of external experts)■ AL Heart Hotline Consultations andNotifications (2016)■ Raising Awareness of the Hotline

To ensure full communication with temporary staff andall our employees, an internal and external reporting system, the AL (All Lion) Heart Hotline, has been set up by
the company.
In 2016, there were sixteen instances of consultation orreports but no instances of grave misconduct were foundand all the cases were appropriately addressed and resolved.

Consultations
andNotifications

Seeking solutions/Resolving Problems

The Corporate Ethics Committee, chaired by the Director
Responsible for Corporate Ethics, proactively works tofoster compliance awareness within the Lion Group. The
basis for compliance is the “Lion Group Charter for Corporate Behavior*1.” This is distributed in pamphlet form
to all employees working for the Lion Group and is publicly available via Lion’s website. According to an annual
program, e-learning and other educations are periodically provided.
In 2016, in addition to going through and committing
to the“Lion Group Charter for Corporate Behavior,” oure-learning program provided further training regarding
fundamental quality assurance, the basics of labor management, risks relevant to social media, information security, our information management system, harassment in
the workplace, and basic knowledge on insider trading.

Power harassment behaviors

3 c ases

Personnel/labor management issues

9 c asesOther

4 c ases■ Percentage of Employees Who Received
Survey Feedback
0

20

40

60

80

100（％）

2012

90.5 ％

9.2 ％ 0.3 ％

2013

91.6％

8.1％ 0.3 ％

2014

93.9％

5.9％ 0.1 ％

2015

94.7％

5.1％ 0.2％

Hotline system at CJ Lion (South Korea)

2016

At CJ Lion (South Korea), a hotline system available to employees (in-95.7％

4.1％ 0.2％(year)［AL Heart Hotline］(Japanese)

URL http://www.lion.co.jp/ja/company/compliance/index.php

cluding part-time and contract employees) and outside stakeholders has

Feedback
received

been in operation since 2004.

A consulter can report details under their real name or anonymously,

Not
received

No response

and the report is shared with the ethics compliance officer, the person in
charge, and an external legal adviser. The confidentiality on the content
of the consultation is strictly maintained and guaranteed.

Introduction of websites

The system is fully explained to employees in a compliance training

session, and publicized on CJ Lion’s website and intranet.

CSR Management (Japanese)［Ethics Management Hot Line］

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

URL http://www.cjlion.co.kr/en/corporate/ethicsManagement.do*1 10 principles of the Lion Group Charter for Corporate Behavior*2 Compliance Awareness Survey

1.Principal Mission

Questionnaire survey in which respondents anonymously answer questions
on, for example, compliance with the Lion Charter for Corporate Behavior,
whether or not feedback was received from the Compliance Awareness
Survey in the previous year, and awareness of the hotline.

2.Compliance with Public Rules

3.Disclosure

4.Environmental Issues

5.Promotion of Working Environment 6.Contribution to the Society
8.Contribution in Foreign Countries

Related information p630

Lion CSR Report 2017

9.Practice of Corporate Ethics

7.Opposition to Antisocial Forces
10.Resolution of Problems

Ideal Visiontsn R i ghLion's CSR

Huma

Establishing a Framework for
Respecting Human Rights

Organizational Governance

Basic Approachlabor and forced or compulsory labor, promotion ofequal employment opportunities, fair treatment of
employees, and human rights of suppliers. In 2009, we
declared our intention to support the ten principles of
the United Nations Global Compact.

Human Rights

Lion has stipulated that we shall “respect human rights”
and “observe both the spirit as well as the letter of all
applicable laws and international rules” in the LionGroup Charter for Corporate Behavior.” Moreover, the“Behavioral Guidelines” refers to the prohibition of child

Disseminating Human Rights Policy
Making the Lion Group Charter for Corporate Behavior andBehavioral Guidelines take root
an opportunity via e-learning or documents to gain adeeper understanding and commitment to the charter onan annual basis. Additionally, we conduct a questionnaire
survey every year to confirm the extent to which theCharter has been adopted.

Labor Practices

Lion has stated its policies regarding respect for humanrights in the “Lion Group Charter for Corporate Behavior” and “Behavioral Guidelines” based thereon. To ensure thorough communication of the Charter to directors,
Lion Group employees, and temporary staff, we provide

Ensuring Human Rights Due Diligence
The Environment

Enhancing framework to ensure respect for human rights
in light of the different stages of the value chain
Lion has enhanced systems for reporting, correcting and following-up, and understanding the impacts of its activities on human rights in light ofthe different stages of the value chain.

Introduction of websites
Respect for human rights (Japanese)
Fair Operating Practices

http://www.lion.co.jp/ja/csr/humanrights/duediligence/■ An Overview of Our Initiatives for Protecting Human Rights
Stages ofValue Chain

Procurement of
Raw Materials,
Packages, and Containers

Major initiatives
undertaken by Lion

Employees●Efforts based on●Widespread promotion of “Harassment Prevention Declaration”

the Procurement
Principles andthe Lion Group Supplier
CSR Guidelines
Related information p42-43●Establishment of

the Hotline

Related information p30

Palm oil farms
activities●Continuation of thepurchasing of RSPOcertified palm oil
derivative

Related information p43

point in time

●Execution of human rights education●Creation of an environment in which discrimination on the basis ofreligion, race and other factors is curbed●Establishment of the hotline

Related information p30

Subjects for Clinical Trials●Respecting the Helsinki Declaration●Operation of the Regulations for the Implementation of Clinical

Trials in order to place high priority on the safety of the subjects
and ethical considerations

Residents around our plants●Environmental management under Lion’s Environmental

Guidelines to prevent contamination, and compliance with laws
and regulations
Related information p36-41

Related information

p44-46●Consideration for“vulnerable users”
such as the elderly
and children, by
preparing a “labeling
manual”●Implementation of an environmental assessment ahead of

construction of new plants

Lion CSR Report 201731

Community Involvement andDevelopment●Participation in RSPO

among employees●Confirmation of recruitment, evaluation, and remuneration at each

Customers●Aggressive pursuit ofsafety andfunctionalities byusing ourown “productmanagement system”

Consumer Issues

Main Objectives and efforts

Business partners

Use by consumers

Ideal Vision

L a b ores

Practic

Changing Awareness of
Employees throughRaising Morale and Motivation
Basic Approach

In the Lion Group Charter for Corporate Behavior, Lioncalls for “fair treatment respecting the diversity,
individuality and personalities of our employees” and“ensuring a safe and comfortable workplace to realize
the mental and physical well-being of our employees.”
Also included in the Behavioral Guidelines are “topromote a healthy work-life balance and strive tomaintain work environments that flexibly allow avariety of working styles,” “do our utmost to assist
employees who strive to learn specialized skills andknowledge and aim for ambitious goals.” and “engage
sincerely in dialog and discussion with employees andtheir representatives.”

Promoting Amicable Labor-Management Relations
Understanding and developing trust between labor andmanagement based on active communication
Lion executes labor agreements with the Lion Workers’
Union for the purposes of promoting sound labor-management relations based on mutual understanding and trust,observing the Lion Group Charter for Corporate Behavior byrealizing the social mission and responsibilities of the company and its workers’ union, and working together to achieve
growth of the company’s business and maintain/improve
working conditions of union members.
The agreements provide that: the company shall recognize
freedom of lawful union activities by union members; thecompany shall not unfairly treat union members by reason
thereof; and the company and the union shall have la-bor-management meetings on a regular basis to consult witheach other on an equal footing. Operating under a union
shop agreement*1, Lion has endeavored to build amicable labor-management relations, in which employees and management proactively conduct activities such as reporting on business conditions and exchanging opinions about the working
environment at labor-management meetings. In overseas
group companies, efforts are also made to build and sustain
sound labor-management relationships, developing betterworking environment through proactive communications between employees and management in the meetings ofworkers’ unions and the labor-management council.

Human Resource Development
Promoting PDCA through the target management system andproviding opportunities for training and ability development■ Improving a Training System■ LION CHALLENGE CUP - Innovation
for Each Function

In training for each job function, measures to reinforce specialties ineach business are offered. In the marketing division, the “Marketing
Study Program” has been offered since 2014. To date, employees,
who show high performance in their respective divisions, were appointed as staff of the marketing division. For further improvement,
we have designed and operated a program to discover employees,
who have capabilities in marketing and are enthusiastic about continuing further efforts and learning. This program provides systematic learning opportunities for mastering practical marketing theories,
and planning and designing based on insights into consumers andfrom competitive strategies, and fosters future marketing personnel
by judging their qualifications.

2016 was the second year of the “LION CHALLENGE CUP – Innovation,” in which employees can make a “dream-inspiring proposal forLion” directly to the management. This event aims to draw out innovative proposals leading to significant future growth of the entire
company, increasing employees’ awareness of personal development, and identifying business domains in which we should contribute to society. The contents of the proposals, which got through thepreliminary round, are presented to management in the final round.
In 2016, from amongst the 34 entries, one team was awarded thegold prize, one team the silver, two teams the bronze, and one team
the jury’s special prize. Feasibility studies are being conducted for the
proposals that won gold and silver prizes at the related divisions.

*1 Union shop agreement
A labor agreement in which a worker is employed by a company on condition of becoming a member of a specific labor union.

32

Lion CSR Report 2017

Human Resource Diversity■ Offering an Opportunity to Gain

Knowledge about Jobs in the Company(Holding a Career Forum)

Labor Practices

Aware that it is essential for women to work actively in order to create our corporate value, we have addressed measures to advance women’s success in their working life.
In line with “The Act on Promotion of Women’s Participation and Advancement in the Workplace” enacted in the National Diet in 2016, Lion has improved childcare-related systems and implemented measures to support employees tomaintain a balance between work and childcare so that they
can continue to work for a long time. Consequently, as seen
in Lion’s non-consolidated average service years for male andfemale employees, which are respectively 19 years and 17
years and seven months, female employees are working actively for long periods. We are also making efforts to increase the percentage of female managerial officials* to 15%
or higher in Japan by 2020.
Lion’s action plans in accordance with the Act on Promotion of Women’s Participation and Advancement in
the Workplace and declaration for women’s promotion
are available on the “Positive Action (Women’s Promotion) Information Portal Site,” a project commissioned by
the Japanese Ministry of Health, Labour and Welfare.

Human Rights

This measure was proposed for the purpose of supportingthe career development of young employees. Opportunities
to learn about the operations of other departments areprovided so that employees can obtain inspiration to design
their career. In the Forum, personnel from specific positions
describe their departments and the content of their work.
Since the forum started in 2012, the finance, legal affairs,
marketing, public relations, CSR, sales, and international departments have been taken up as topics. In the fifth forumin 2016, under the theme of new business and production,
explanations and advice on how to use one’s previous career experience for the future was given.

Participation and Advancementin the Workplaces

Organizational Governancesource diversity” in light of the need to swiftly respond tochanges in the business environment, and promoted
plans and proposals for personnel measures to make diverse human resources more active, with the participation of employees. Currently a team for diversity set up
within the Personnel Department has been implementing
measures to promote human resource diversity.

Lion's CSR

Using personnel capable of responding swiftly tochanges in the business environment
Lion has made efforts toward promoting “human re■ Approach for the Promotion of Women’s［Declaration for the Promotion of Women’s Participation andAdvancement in the Workplace］(Japanese)
URL http://www.positiveaction.jp/declaration/add/search_detail/?id=1664

URL http://www.positiveaction.jp/pa/search/detail.php?company_id=1620＊At Lion, personnel in a managerial position, which is at the level of anassistant manager or higher, is considered as a managerial official.

Career Forum■ Regionally Based Employees Program

Lion CSR Report 201733

Community Involvement andDevelopment

Sorting out
interoffice mail

Consumer Issues

Since 2013, Lion has had in place the Regionally Based
Employees Program with the aim of finding and keeping
excellent personnel from among our temporary employees, who are contributing greatly to the company, as wellas enabling regular employees to choose diverse working
arrangements. The regionally based employees can selecttheir workplace from seven regions in Japan that Lion has
chosen for this program. Their compensation and benefits are at a similar level to regular employees in the same
region. Under the program, nine such individuals were
hired from among temporary employees in 2015, nine in2016, and five in 2017.

In order to make full use of individual abilities regardlessof whether the person in question has disabilities or not,we proactively employ people with disabilities thus developing a corporate culture to improve the working environment and support such individuals in the entire workplace.
In March, 2016 we established a special subsidiary, Lion
Tomoni Co., Ltd., and have been promoting the employment of people with disabilities and expanding work opportunities for them.
Twelve employees and four instructors of Lion Tomoni
are actively engaged in daily work including the management of interoffice mail and printing of business cards for
all Lion employees.

Fair Operating Practices■Employing People with Disabilities

The Environment［Lion’s Action Plans in Accordance with the Act of the Promotionof Women’s Participation and Advancement in the Workplace］(Japanese)

Labor Practices

Promoting Work-Life Balance
Building an environment where employees
can deliver results while working flexibly
Lion strives to build an environment where employees
can deliver results while placing value on balancing work
life with private life.

■ Building an Environment Where

Employees Can Work DynamicallySince 2010, Lion has worked to reduce prolonged work and encourage
employees to take paid leaves. In 2016, a weekly “No-overtime day” andmonthly “No-overtime week” were implemented. In order to facilitate
understanding of management of working hours, e-learning is provided
for all employees. Furthermore, under a labor-management agreement,
we proactively encourage employees to systematically take at least threedays paid leave per year with the aim of having them take more than
60% of paid leave, which led to the improvement of the acquisition rate
in 2016. We will make continuous efforts in this regard.

■ Programs to Support Maintaina Balance between Work and Childcare

As a result of enhancing various programs and increasing employees’
awareness, the ratio of female employees taking childcare leave was100%. Male employees are also taking the leave in many departments.
In addition, Lion is addressing career development during the childcare
period by establishing the "website to support employees returning towork and raising children” and supporting employees taking childcare
leave to upgrade their skills.
［Programs to support maintain a balance
between work and childcare］(Japanese)

Kurumin mark:A symbol of a company
supporting childcare

Act for Measures to Support the Development of the
Next-Generation Children Phase 5 Action Plan
Four goals are set in the Phase 5 Action
Plan for three years from April 2015 to March 2018.
Goal: 1

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

→Introduction of the “website to support employees returning to workand raising children,” for supporting employees on childcare leave to
make a balance between their career and childcare (February 2016).
→Implementation of “Back-to-Work Seminar” for employees before returning
to work (October 2015, February and October 2016, February 2017).
→Launch of individual explanatory meetings for employees on childcare
leave and their bosses (January 2016).
Goal: 2

Within the period of the action plan, implement measures tofoster corporate culture toward women’s participation andadvancement in the workplace.

→Held the 4th Career Forum (November 2015)→Held the 5th Career Forum (July 2016)→Held the “Frank Exchange of Opinions on Lion’s Women Empowerment
Meeting” (June 2016).
Goal: 3

Within the period of the action plan, have 13 or more male
employees take childcare leave.

→Seven male employees took the leave (As of December 2016).
Goal: 4

Within the period of the action plan, facilitate understanding
about and the use of the Work-at-Home System, andimplement measures to promote the adoption of the system.

→Explanatory meetings and individual hearings at workplace were held.

URL http://www.lion.co.jp/ja/csr/employee/work_life/
Related information

Highlight 02 p24-25■ Programs to Support and Maintain aBalance between Work and Nursing Care

As part of creating the environment that allows employees to continue
to work without anxiety, Lion has enhanced support for employees engaged in nursing care. In addition to ordinary annual paid leave, wehave in place programs for nursing care, including accumulated leave for
medical nursing care (accumulation of expired annual paid leave), shorter work-hours for nursing care (Short Hours Flextime System), and nursing care leave expanded up to 365 days (minimum unit of one day). At
the same time, a website targeted for employees aged 40 and up wasdeveloped to provide a variety of information on nursing care.
［Programs to help maintain the balance between
work and nursing care］(Japanese)
URL http://www.lion.co.jp/ja/csr/employee/work_life/
Related information

Highlight 02 p24-25■ The Work-at-Home System

Lion has been making efforts to improve business productivity and worklife balance. The Work-at-Home System was introduced in 2015 as a flexible
way to work outside of the office. In order to facilitate understanding andpenetration of the system, we have been enhancing the system by repeatedly holding explanatory meetings, individual hearings at workplace, andconfirming the effects of facilitating use of the system.

■ Approach to compliance with Next
Generation Support Act

Lion has formulated and addressed action plans in accordance with the
Act for Measures to Support the Development of the Next-Generation
Children by the Japanese Ministry of Health, Labour and Welfare. As a result, achieving all goals from phase 1 to 4, we have been certified as acompany supporting childcare with the “Kurumin” Mark.

34

Lion CSR Report 2017

■ Employee Data
Employees(Non-consolidated, including employees assigned toaffiliated companies)

2014

2015

2016

Male

2,292

2,268

2,239

Female

729

758

775

24.1

25.0

25.7
49

Female employee ratio (%)
New Employees(New Graduates)

Re-hired Retirees

Male

59

56

Female25

28

29

Number of people

289

262

250

%

Temporary employees
Female managers*
Employees withdisabilities

9.6

8.7

8.3

457

461

467

Number of people

52

57

62

%

5.9

6.4

6.9

Number of people

43

51

55

%

1.8

2.0

2.2

Employees who tookchildcare leave

Male

6

5

2

Female37

33

53

Employees who took
shorter work-hours forchildcare

Male

0

0

0

Female57

58

40

Average overtime per month (hours)

11.7

11.0

11.1

Annual paid leave used (%)

50.8

51.8

55.1

Male

19.8年

19.8年

20.3年

Female18.0年

Average service years(excluding re-hired
employees)
Employees who resigned
within three years ofentering the company

17.7年

17.4年

Number of people

2名

4名

7名

%

1.0

1.6

2.8

＊% of Female Managers for 2015 was misreported in last year’s reportand has been corrected in this year’s report.
＊Position corresponding to section chief or higher
Employee Data related to domestic group companies are available
on the CSR website. (Japanese)
URL http://www.lion.co.jp/ja/csr/employee/various/

Promoting Employees’ Health Management［Guidelines for Health］

URL http://www.lion.co.jp/en/company/compliance/health.php［Programs for maintaining mental health,physical health, and health awareness］(Japanese)■ Mental Health Initiatives

With our Mental Health Basic Policy established in 2004, Lion has taken
proactive measures to support the mental health of our employees, forexample, through providing a consultation after periodical checkups forall employees and a stress level check test which started in 2006. In 2016,
97% of employees took the stress level check test*1. The results are compiled and analyzed by section/department in such a way that individuals
cannot be identified, feedback is sent to responsible officers, and used
for training of managers. In this way, Lion has continued organizational
mental health initiatives.

Organizational Governance

Based on the concept that the good health of employees serves as abusiness foundation to support sound corporate growth, Lion has been
conducting a variety of measures. With the Guidelines for Health as ourcore basic principles, Lion conducts detailed health management activities for employees from three different angles: mental health, physicalhealth, and health awareness (awareness of self-management of health)and health management programs are developed for employees of different age groups.

Lion's CSR

Supporting employees’ self-management andestablishing a reliable and healthy working environment■ Dental Prophylaxis Program (ALOHA)

URL http://www.lion.co.jp/ja/csr/employee/health/

Lion has conducted health management activities based on discussions［ALOHA］All Lion Oral Health Activity［Dentistry data of Lion employees］(Japanese)

Labor Practices

carried out at a joint session called the “Health Management Promotion
Committee Meeting” attended by the manager, who is responsible forhealth management of the company (The Personnel Manager), theHealth Insurance Society and the Health Support Office. We will continuously make improvements through PDCA management and accumulate
know-how on industrial health.

URL http://www.lion.co.jp/ja/csr/employee/health/2017 Certified Health & Productivity
Management Organization
Recognition Program (White 500)
Lion was selected as a “2017 Certified Health & Productivity Management Organization
Recognition Program (White 500)” in February 2017. The program is sponsored by the
Ministry of Economy, Trade and Industry (METI) and Tokyo Stock Exchange (TSE), designed to recognize enterprises engaging in initiatives for overcoming health-related
challenges in regional communities and for promoting corporate health achievement.
Lion will continue to promote health management for its employees.

Establishing systems to promote occupational safety and safety of facilities■ Safety of Facility

Fair Operating Practices

Most of the plant accidents that happened recently at other companies were attributed to the diminished sense in safety management
and shortfalls in workers’ skills and awareness.
Therefore, Lion has worked to enhance equipment safety from a
medium- to long-term perspective, with approaches to both the hard(equipment management) and soft (operational management) sides
of operations.

Consumer Issues■ Occupational Safety

Introduction of websites

Chiba Plant

Odawara Plant

Osaka Plant

Akashi Plant

Total

In collaboration with our employees (Japanese)

73

87

55

98

313名

http://www.lion.co.jp/ja/csr/employee/*1 Stress level check test

*2 Occupational Safety and Health Management System (OSHMS)

Test of employee psychological burdens (obligatory since December 2015 with the

A system to voluntarily conduct continuous safety and health management

revision of the Japanese Industrial Safety and Health Act).

through PDCA.

Lion CSR Report 201735

Community Involvement andDevelopment

In 2016, the number of labor accidents, including affiliated companies,
was 18, a decrease of three from the previous year’s 21. The number oflost time accidents was five.
We will increase awareness of safety by enhancing training on safety,
among other measures.
Number of employees who participated in safety training (2016)

The Environment

Enhancing Group-wide Occupational Health and Safety Management System
Based on the principle of Safety First, Lion has established its unique
Health, Safety and Disaster Prevention Management System for domestic group companies, through which we have added our own disasterprevention measures to the Occupational Safety and Health Management System (OSHMS)*2 based on the guidelines of Japan’s Ministry of
Health, Labor and Welfare.
Lion is promoting the safety of its employees across the entire group
including at overseas group companies. Outside Japan, systems to prevent
serious accidents have been developed and enhanced based on domestic
regulations including Operational Management Rules for the Health, Safety and Disaster Prevention Management System and Safety Design Guideline for Facilities. In addition, employees in overseas group companies havetaken training on safety and disaster prevention in plants in Japan.

Human Rights■ Organizational Approach to Health Management

In collaboration with the Lion Foundation for Dental Health (LDH), we
have focused on the improvement of oral health by incorporating dental
checkups into the annual health checkups for all employees since 2002.
Since 2016, we have enhanced our programs to raise employees’ awareness of preventive measures to maintain oral health care and to promote
activities to sustain healthy life with oral-care information spread throughthe e-learning system (L-navi) and Saliva Test System that measures therisks of cavities, periodontal diseases and oral cleanliness from saliva.

Ideal VisionevironmThe Ennt

Contributing to the Development ofa Sustainable Society as an
Environmentally Advanced Company
Basic Approach

In 2011, Lion announced its Management Vision,
Vision2020. In 2013, we formulated our new
environmental objective, "Eco Vision 2020," as
Vision2020 details a group-wide policy of becoming an“environmentally advanced company.”
As with “Eco Vision 2020,” our thoughts regarding
environmental activities are represented in ourenvironmental message “Lion and the Environment,”
from which our environmental slogan, “Everyday. For

the Earth,” derives. We will work on communication byincreasing customers’ environmental awareness throughour products, in addition to achieving targeted values
with the aim of “realizing a low carbon society,”“realizing a sound material-cycle society,” and “realizing
a society harmonizing with nature.”［Every day. For the Earth.］(Japanese)

URL http://www.lion.co.jp/ja/csr/ecolion/

Environmental Guidelines
Our stance toward voluntary and proactive environmental
conservation activities performed throughout the value chain
Lion’s Environmental Guidelines adhere to the spirit of
the “Lion Group Charter for Corporate Behavior,” which states:“We shall play a positive and active role in creating asustainable society that harmonizes economic development and environmental protection.”
In 2013, we revised the Guidelines in accordance withthe formulation of “Eco Vision 2020.” The revised Guidelines more clearly express our attitude toward“realizing a
low carbon society,” “realizing a sound material-cycle society” and “realizing a society harmonizing with nature,” aswell as our stance toward our efforts overseas.

Environmental Guidelines
Lion will act voluntarily and proactively to reduce its environmental
burden to the global environment in all processes of business activities from the development of products to the procurement of raw
materials, production, distribution, sales, use by customers, as well as
disposal. This will be done with due consideration to “realizing a
low carbon society to prevent global warming,” “realizing a soundmaterial-cycle society with maximum usage of recycled resources”
and “realizing a society harmonizing with nature to conserve people’s health, natural ecosystems and biodiversity.”

1. Aiming for a Sustainable Society
Promote an environmental management system, and through ongoing maintenance and improvement of that system, protect the global environment.

2. Complying with Legal and Other
Requirements
Comply with the system of legislation, regulations and arrangements pertaining to environmental protection, and establish andimplement voluntary standards of conduct.

3. Setting and Verifying Implementationof Environmental Objectives and Targets
Correctly understand the environmental impact of our corporate
activities, and as far as technically and economically possible, establish objectives and targets for improvement, while at the sametime formulating, implementing and regularly verifying the statusof implementation of an environmental management program.

4.Developing Environment-Friendly ProductsContinue aggressively with product development in tune with Lion’s
own “Lion eco-standards” and in light of lifecycle assessments.

5.Reducing Environmental Impact Together
with Our Business Partners
Strive to reduce environmental burdens at all stages from purchasethrough provision of products to customers, in cooperation with
suppliers of materials, outsourcing contractors, and sales companies.

6.Harmonizing with Nature
Conduct business activities while taking into account biodiversity
and air and water environments, and proactively address naturalenvironment protection activities.

7.Enhancing Environmental Protection
Activities Based on Uniform
Understanding of the Guidelines
Disseminate the Guidelines to all Lion employees, including those of
its affiliated companies, raise awareness of environmental protection among them and bolster environmental management activities
throughout the entire Lion Group.

8.Promoting Disclosure of Information
Seek to maintain and promote communication with stakeholders involved in Lion’s businesses. These Environmental Guidelines are freely available to anyone upon request.
Revised January 1, 201336

Lion CSR Report 2017

Environmental Management Structure and Management System■ Environmental Management System［Data on the environmental burden of group companies’ plants (overseas)］
URL http://www.lion.co.jp/en/csr/pdf/2017/env_data_2017.pdf■ Environmental Management Structure
Executive
Committee

Group-wide Manager ofenvironment management(Director of Environmental
Conservation Office)Secretariat:
CSR Promotion Department,Environmental Conservation OfficeMembers of Committee:
Directors of production, administrative/sales,
R&D, and headquarters staff divisions

Administrative/Sales Division
Manager of environment
management(General manager of generalaffair department)

R&D Division Manager ofenvironment management(General manager of corporate
management department)

Each plant

Each office

Each laboratory

Afiliatedcompanies■ Legal Compliance

Consumer Issues［Data of the amount of PRTR-Designated Substances released
and transferred in production sites in Japan in 2016］(Japanese)

Fair Operating Practices

URL http://www.lion.co.jp/ja/csr/env/enhancement/
Community Involvement andDevelopment［Data of environmental impacts ofproduction sites in Japan］(Japanese)

Data on management of chemical substances in compliance with the PRTR system* is available on Lion’s website.
We will continue our efforts to reduce the amount of designated substances released and transferred by setting up
and monitoring reduction targets.

The Environment

Production activities conscious about air and water quality

Labor Practices

In regard to the revisions of environmental laws and regulations namely, the Act on the Rational Use of Energy, theAct on Promotion of Global Warming Countermeasures,
the Act on Confirmation, etc. of Released Amounts ofSpecific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof, theAct on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., and the Waste Disposal
and Public Cleansing Act, the Environmental Conservation
Office collects information from administrative agencies
and industrial associations, and registers the information
with an intranet system for information on chemicals-related laws to keep the related departments updated
about latest developments.
In addition, with our voluntarily established waste management regulations, we have in place a management
system.
There were no violations resulting in a fine or otherpenalty during 2016.

Pollution Prevention
Lion also implements voluntary initiatives for reducing
emissions of chemical substances, including nitrogen oxides (NOx), sulfur oxides (SOx), particulate matter and volatile organic compounds (VOC). We also strive to reduce
Chemical Oxygen Demand (COD) with improvements in
the reliability of the waste water processing facilities
through periodical maintenance.

Human Rights

Production Division
Manager of environment
management(General manager of production
management department)

Status of ISO 14001 Certification
Lion acquired ISO14001 certification covering all its plants
in July 2001. The certification was renewed to the latest(2015) version in June 2016, and the Japan Management
Association Quality Assurance Registration Center(JMAQA) reviewed and verified that all plants are operating in conformity with the requirements of the standards.
Currently, the domestic Lion group companies are performing and managing operations in compliance with themost recent version of ISO14001. Including the plants ofgroup companies in and outside Japan, the Lion Group has
been continuing to push ahead with its management systems and environmental conservation activities by obtaining ISO14001 certifications and performing operations incompliance with ISO 14001.

Environmental Conservation Committee
Chairman:
Director of the Board Responsible

Organizational Governance

The purpose of the Lion Group’s Environmental Management System is to identify, evaluate and remedy adverse
effects that our business activities, products and services
have on the environment, and to improve our environmental protection activities on an on-going basis.
Systems for environmental management and reporting
activities have been enhanced with the aim of responding
to the environment globally. Data on overseas group companies is available on our website.

Lion's CSR

Mechanism to promote cross-departmental
environmental conservation activities

URL http://www.lion.co.jp/ja/csr/report/* PRTR system
A system to measure, aggregate, and publish emissions of toxic chemical and other substances.

Lion CSR Report 201737

The Environment

Enhancing Group-wide Management of Chemical Substances
Chemical substances are indispensable for people to lead
comfortable and fulfilling lives. Failure to properly manage
chemical substances, however, can result in accidents that put
human health and ecosystems at enormous risk. In addition
to compliance with related laws and regulations, Lion strives

to ensure strict management of chemical substances at allstages from product development to use/disposal in accordance with our own independent standards.
［Chemical Substance Management］(Japanese)

URL http://www.lion.co.jp/ja/csr/env/enhancement/■ Lion’s Chemical Substance Management
1

Product
Development

Safety verification andmanagement ofchemical substances contained in
raw materials,
packages, and containers

2 Production

3 Transportation

4 Use and Disposal

Measurement and reduction ofchemical substance releases

Provision of safety information
during transportation

Provision of information on safety
and handling of chemical products

Engaging in Progressive Environmental Activities
Pursuing environmental targets “Eco Vision 2020” in light of global issues■ Achievements in the second year of

Eco Vision V-2 (from 2015 to 2017) andon the future plans

Eco Vision 2020 is conducted by dividing the nine years
from 2012 to 2020 into three periods, V-1 to V-3, of three
years. 2016 was the second year of V-2. As with the previous years, all employees of Lion Group have been unitedin promoting environmental activities and are carryingout activities according to the plans for V-2.

Five key items【Greenhouse gas emissions from business activities in Japan】
In 2016, we reduced greenhouse gas emissions by 43%(compared to 1990, emission intensity per unit total revenue), which is better than the previous year’s 41% (sameunit as above). As with the previous year, integration of
production facilities and energy-saving activities conducted at all offices and plants contributed to the reduction.
We will continue to make efforts towards achieving ourtargets for 2017 and 2020.

【Water use in domestic business activities】
In 2016, we reduced water used in domestic business activities by 49% (compared to 2000, water used per unit total
revenue), progressing with a pace exceeding the 2020 targetof a 35% reduction. This is mainly due to modification of the
production process, water-saving activities at all offices andplants, and recycling of waste water from the production
process at our Chiba Plant as stated below. We will continue
with our water-saving activities.

【Greenhouse gas emissions from post-use productions in Japan】
In order to reduce the greenhouse gas emissions frompost-use products, we are making products more compact
and switching from petroleum-based surfactant ingredients to plant-based ingredients that do not lead to an increase in CO2 emissions. In 2016, emissions decreased by
52% (compared to1990, emission intensity per unit total
revenue), a further reduction from previous year’s 49%(same unit as above). We will push on with our activities
to achieve the set targets.

【Recycling of plant waste water discharge】
Aiming to achieve the target for “recycling waste water atmultiple plants by 2020,” we have completed construction offacilities to recycle waste water from the production process
at our Chiba Plant in 2015, which went into full-scale operation in 2016. This further contributes to reduction of waste
water discharge and water consumption.

【Greenhouse gas emissions from overseas business activities】
In 2016, we reduced greenhouse gas emission by 4%(compared to 2014, emission intensity per unit of production) with an annual average of 2%, achieving the targetof a 1% reduction for each year. Improvement in the capacity utilization of our Thai Plant and the use of waste
heat contributed to the reduction. We will continue todevelop and implement energy-saving programs in ouroverseas plants.
38

Lion CSR Report 2017

Related information

Highlight 03 p26-27

Achievements of Eco Vision V-2 (2015 to 2017) and target values of Eco Vision 2020

Within thecompany
Within thecompany⑤Reduction ofwater use inbusiness activities

Outside thecompany⑥Reduction ofwater usage athousehold using
our products

Emission intensity per unit
total revenue

Emission intensity per unit
total revenue

27% reduction (compared to 2010)
43% reduction (compared to 1990)

23% reduction (compared to 2010)
40% reduction (compared to 1990)

Emission intensity per unit
total revenue

Absolute quantity

Absolute quantity

43% reduction (compared to 1990)

41% reduction (compared to 1990)

34% reduction (compared to 2010)
49% reduction (compared to 1990)

Absolute quantity

40% reduction (compared to 1990)

Emission intensity per unit
total revenue

Emission intensity per unit
total revenue

Emission intensity per unit
total revenue

Absolute quantity

Absolute quantity

Absolute quantity

Emission intensity per unit ofproduction

Emission intensity per unit ofproduction

Emission intensity per unit ofproduction

8% reduction (compared to 2010)
52% reduction (compared to 1990)
51% reduction (compared to 1990)

4% reduction in two years(compared to 2014)

Reduction of 64 thousand tons
annually

7% reduction (compared to 2010)
52% reduction (compared to 1990)
51% reduction (compared to 1990)

1% reduction year-on-year(compared to 2014)－

9% reduction (compared to 2010)
53% reduction (compared to 1990)
41% reduction (compared to 1990)

1% reduction year-on-year

Reduction of 100 thousand tons
annually

Water use per unit total
revenue

Water use per unit total
revenue

Water use per unit total
revenue

Absolute quantity

Absolute quantity

Absolute quantity

Water use per unit total
revenue

Water use per unit total
revenue

Water use per unit total
revenue

Absolute quantity

Absolute quantity

Absolute quantity

34% reduction (compared to 2010)
49% reduction (compared to 2000)

Water

49% reduction (compared to 2000)

23% reduction (compared to 2010)
49% reduction (compared to 2000)
49% reduction (compared to 2000)

15% reduction (compared to 2010)
34% reduction (compared to 2000)
35% reduction (compared to 2000)

15% reduction (compared to 2010)
44% reduction (compared to 2000)
44% reduction (compared to 2000)

15% reduction (compared to 2010)
35% reduction (compared to 2000)
23% reduction (compared to 2000)

17% reduction (compared to 2010)
45% reduction (compared to 2000)
33% reduction (compared to 2000)－

Zero emissions at all domestic
production sites

Waste
water

⑧Recycle of factory
waste water
discharge*2

Full-scale operation of facilities torecycle waste water at Chiba Plant－

Recycle factory waste water atmultiple plants

Procurement⑨Procurement ofplant-derived oils
that takebiodiversity into
consideration

Continuing purchase of
RSPO*3-certified palm oil
derivatives－

All palm oil derivatives purchased
to be RSPO-certified

Biodiversity⑩Increasebiodiversity
conservation
activities

Carried out in all Lion's plants and at
offices of Lion and some of its
affiliate companies－

Carry out in all domestic sites

Awareness andEducation in
the Society⑪Environmental
awareness andeducation for
consumers

70% increase in consumer
participation in our awarenessactivities (compared to 2010)

Consumer Issues

Continued achieving zero emission
at all domestic production sites

Fair Operating Practices

Education⑦Zero emissions
within thecompany*1

The Environment

Harmonizing with Nature

Waste

80% increase in consumer
participation in our awarenessactivities (compared to 2010)

Labor Practices

Outside thecompany④Reduction ofgreenhouse gases
from post-use
products, overseas

Target values for 2020

Human Rights③Reduction ofgreenhouse gases
from businessactivities,
overseas

Target values for 2017

Organizational Governance②Reduction ofgreenhouse gases
from post-use
products

Within thecompany

Greenhouse gases (overseas)

Realizing a Sound Material-Cycle Society

Outside thecompany

Greenhouse gases (domestic)

Realizing a Low Carbon Society①Reduction ofgreenhouse gases
from businessactivities

Achievements in 2016

Lion's CSR

Categories

100% increase in consumer
participation in our awarenessactivities (compared to 2010)

Community Involvement andDevelopment＊1 The recycling ratio of total waste generation is 99% or more, excluding recycling residues.
＊2 Waste water from production processes＊3 Roundtable on Sustainable Palm Oil

Lion CSR Report 2017

39

The Environment■ Harmonizing with Nature

Lion has assumed a leading role in tackling water-related environmental issues such as bubble floating occurred in rivers andeutrophication of waterways linked to the use of detergents through considering biodiversity conservation at each stage
from raw material procurement to disposal. However, in order to receive the blessings of biodiversity into the future, it will
be necessary for us to coordinate with local communities to focus on conservation of biodiversity and promote sustainable
use of the resources. Additionally, it is important to promote a shift in lifestyle of consumers through products that take biodiversity into consideration, and to contribute to the realization of a society harmonizing with nature.
To this end, Lion will contribute to the development of a sustainable society through its business by ascertaining thatthe natural resources used in business activities and the impact on biodiversity throughout the value chain is reduced.
Additionally, Lion will carry out biodiversity conservation activities that will lead to the expansion of opportunities andreduce the environmental risks. Also, by having each of our employees participate in activities to conserve biodiversity
as part of our environmental education, we will spread awareness of biodiversity conservation to all our office sites.

Overview of Our Business Activities that Take Biodiversity Conservation into Consideration
Biodiversity on
which Lion relies

Watershed* ecosystem
in raw material
origination sites

Watershed ecosystem where
our plants are locatedCorresponding
stages ofvalue chain

Procurement of raw
materials, packages,
and containers

Production

Key natural
resources usedby Lion● Plants used as raw

materials

water used for equipment
cleaning etc., which areused in plants(oil palms etc.)●Impact on natural

Possible major
impact of ouractivities on
biodiversity

environments ofpalm oil growers
and local
communities(impact on wildlife
habitats caused byillegal logging of
tropical forests)●Promotion of●Impact of undergroundwater intake by plants
on surrounding naturalenvironments and local
communities●Impact of waste waterfrom plants on
surrounding naturalenvironments and local
communities●Impact of light andodors from plants on
surrounding naturalenvironments and local
communities●Reduction of plant wastes

procurement ofsustainable palm oils

Biodiversity conservation activities

Activities
to reducerisks● Cooling water and raw(participation in RSPO
and purchase of
RSPO-certified oils)
Related information

p43

Related information Web②
●Reduction of water

consumption at plants
Related information Web②—

Use by consumers

Disposalbyconsumers● Service water at thetime of using our
products●Impact of water intake

by consumers on
surrounding naturalenvironments and local
communities●Development ofwater-saving detergents●Development of highlybiodegradable detergents
Related information Web②

Highlight 03 （p26-27）—●Impact of waste

water and waste
packagingmaterials fromconsumers on
surrounding
naturalenvironments
and local
communities●Surveying

environmental
impact ofsurfactants
Relatedinformation

Web③●Conservation of rivers andother ecosystems byimplementing purification
technologies on discharged
waste water●Conservation and

Activities toexpandopportunities

Watershed ecosystem where consumers reside●Educational activities regarding●Promotion of 3Rsmonitoring of habitats
on the watershed whereplants are located(Activities include protectionof endangered loggerhead sea
turtles maintaining biotopes,
removal of non-native plants
on beaches, and activities tomaintain domestic woodlands(satoyama))

care of water and naturalenvironments(Activities include forest
improvement under the name ofLion Forest, conducting the
Rainwater Utilization Ideas
Contest, and water-related
environmental research support
through the Japan Society on
Water Environment)(Refills, condensing ofcontent to makeproducts morecompact, anddevelopment ofcontainers, e.g. recycled
PET (polyethylene
terephthalate) bottles
and containers withthin-wall molding)

Related information Web④

Related information p51

p48
Relatedinformation Web②

＊ Watershed: Ecosystems including forests, rivers, domestic woodlands (Satoyama), tidal flats and beaches that are connected by water.
40

Lion CSR Report 2017

■ Realizing a Low Carbon Society/ a Sound Material-Cycle Society

Overview of Our Business Activities Toward Realization of a Low Carbon Society/a Sound Material-Cycle Society
Procurement of raw
materials, packages,
and containers●Substituting plant-

derived materials for
petroleum resources
Relatedinformation

Web①

Production
Plants●Improving energy efficiency
by reviewing production
processes, introducing
energy-saving equipment at
renewing facilities anddownsizing products
Related information P48

Activities forrealizing a low
carbon society

consumers’ environmental
awareness throughproducts(an environmental label is
attached to products thatmeet the “Lion ecostandards”)
Related information P48●Reducing power

consumption during theuse of our power-saving
products(involves decreasing thenumber of rinsing times
associated with the use ofdetergents that only
require one rinse)●Substituting

petroleum
resources withplant-derived
materials●Promoting 3Rs(Refills,
condensing ofcontent to makeproducts morecompact, anddevelopment ofcontainers, e.g.,
recycled PET(polyethylene
terephthalate)bottles andcontainers withthin wall molding)
Relatedinformation

Labor Practices

Distribution after
shipment●Increasing the rate ofmodal shift duringtransportation of products
such as shifting freight fromtruck to rail or ship
●Improving logistics
efficiency through means
such as by increasing thetransport loading rate

●Education to increase

Human Rights

Office/Facilities●Company-wide energy-saving
activities including at theadministrative & sales divisionand the R&D division

Disposalbyconsumers

Use byconsumers

Organizational Governance

Corresponding
stages ofvalue chain

Lion's CSR

Lion has worked to reduce greenhouse gas emissions, as well as recycling and effective use of resources at each stage
from raw material procurement to disposal. Detailed data is available on our website. We will promote activities towardrealization of a low carbon society/ a sound material-cycle society.

p48,Web②

Related information Web①

Procurement of raw
materials, packages,
and containers●Using plant-

derived materials(renewable raw
materials)

Activities forrealizing asound materialcycle societymaterials

Plants●Promoting zero emissions

within the company●Reducing plant waste
water discharge●Reducing water
consumption by water
recycling

Office/Facilities●Promoting company-wide
green purchases

Disposalbyconsumers

Use byconsumers●Education to increase

consumers’ environmental
awareness through products(an environmental label is
attached to products thatmeet “Lion eco-standards”)
Related information p48●Reducing water usage during

the use of our water-saving
products
Related information

Web②●Promoting 3Rs(Refills, condensingof content to makeproducts morecompact, anddevelopment ofcontainers, e.g.,
recycled PET(polyethylene
terephthalate)bottles andcontainers withthin-wall molding)
Relatedinformation

Related information Web②

●Promotion of

Toothbrush Recycling
ProgramIntroduction of websites

URL http://www.lion.co.jp/ja/csr/env/climate/

Environmental Initiatives (Japanese)Web②［Realizing a Sound Material-Cycle Society］

http://www.lion.co.jp/ja/csr/env/

URL http://www.lion.co.jp/ja/csr/env/resources/

Every day. For the Earth. (Japanese)Web③［Harmonizing with Nature］

http://www.lion.co.jp/ja/csr/env/ecolion/

Community Involvement andDevelopment

Web①［Realizing a Low Carbon Society］

URL http://www.lion.co.jp/ja/csr/env/biodiversity/

Web④［Initiatives for Biodiversity Conservation in Each Office］
URL http://www.lion.co.jp/ja/csr/biodiversity/

Lion CSR Report 2017

Consumer Issues

p48,Web②

The websites below are all in Japanese.

Fair Operating Practices●Using recycled

Production

The Environment

Corresponding
stages ofvalue chain

41

Ideal Visionng
peratiFair O ices
Pract

Promoting CSR Activities
throughout the Value Chain
Basic Approach

In accordance with the “Lion Group Charter for
Corporate Behavior” and the “Behavioral Guidelines,”
we have made efforts to “engage in fair, transparent
and free competition and proper transactions” while“maintaining sound and proper relationships withgovernmental and political bodies.” We also requirebusiness partners to comply with laws and regulations.
Furthermore, in 2009, Lion expressed its support for theten principles of the UN Global Compact, and it has
made it clear that the company is serious about
preventing bribery and corruption.

Promotion of CSR Procurement
Procuring sustainable raw materials, packages, and containers,
and encouraging suppliers to conduct CSR activities
In our initiatives across the value chain, we believe that one■ Promotion of CSR with Material Suppliersof our key issues is to enhance our partnerships with material suppliers and outsourcing contractors. In order to alleviate any negative impact of our business activities on theenvironment and society, and sustainably develop mutual
operations, both our suppliers and our company need toenrich the content of the CSR activities.
Also, regarding the palm oils used in methyl ester sulfonate (MES), an environmentally-friendly surfactant andplant-derived detergent material developed independently
by Lion, it is critical to promote procurement of sustainablepalm oils.

［Excellent features of “MES”］(Japanese)

URL http://www.lion.co.jp/ja/csr/env/climate/

and Outsourcing Contractors

We require material suppliers and outsourcing contractors
to carry out annual self-checks based on the “Lion Group
Supplier CSR Guidelines*1” in order to facilitate responsible procurement activities. Accordingly, we have been promoting the development of a system to prevent risks fromoccurring in supply chains with regard to human rights/labor practices, the environment, fair operating practices,
consumer issues, and compliance.
Since 2014, we have made it possible to conduct all selfchecks online so that our business partners can conduct selfchecks more efficiently. In addition, by sending feedback
based on the results to the respondents, a system to continuously promote CSR procurement has been established.
We will continue to promote CSR activities together withour business partners.

■ Timeline of our approach to CSR procurement
2005

Instituted the Basic Policy Regarding Purchasing for appropriate procurement of raw materials, packages, and containers, as well as products.

2008

Established the Procurement Principles that clarified our social and environmental considerations. Conducted a questionnaire survey fordomestic and overseas material suppliers and outsourcing contractors about their corporate activities regarding legal compliance, productservice quality and safety, environmental considerations, labor and human rights, and fair business transactions.

2013

Revised the Procurement Principles and clarified our stance to select business partners in light of legal compliance, environmental
conservation, and respect for human rights. Established the Lion Group Supplier CSR Guideline that shows the CSR activities we expect ourmaterial suppliers and outsourcing contractors to perform, and ask them to conduct self-checks on their own CSR activities.

2014

Introduced an online CSR self-check system, where CSR self-checks can be completed on a website.

［Procurement Principles］ URL http://www.lion.co.jp/en/company/compliance/procurement.php＊1 Lion Group Supplier CSR Guideline
Guideline including the following 5 subjects and 21 items
1.Human Rights/Labor Practices
2.The Environment
3.Fair Operating Practices
4.Consumer Issues
5.Compliance
42

Lion CSR Report 2017

URL Japanese http://www.lion.co.jp/ja/csr/businesscustom/valuechain/pdf/jpn.pdf

EnglishChinesehttp://www.lion.co.jp/ja/csr/businesscustom/valuechain/pdf/eng.pdf
http://www.lion.co.jp/ja/csr/businesscustom/valuechain/pdf/cn.pdf

■ PDCA cycle for CSR self-checks by suppliers

Self-Checks Based on the LionGroup Supplier CSR Guideline(2016)

Do

Establishment anddisclosure of CSR Guideline

Request for self-checks basedon the CSR Guideline

Share the Procurement
Principles and CSR Guideline
with suppliers.

Ask suppliers to conduct online
self-checks.

No
response

6%
Organizational Governance

Requested
improvement

9%

ActionCheck

Feedback and improvement

Analysis of self-checks

Give feedback to suppliers and ask for
improvement if necessary.

Analyze the responses and identify
suppliers that require improvement.

No need for
improvement

85 %Human Rights

The number of companies monitored:
617 companies which Lion Group’s domestic
companies procure raw materials, packages, andcontainers from or contract production to(Domestic :539, Overseas :78)

We make efforts to help our business partners understand the importance of CSR byexplaining about CSR trends when asking for self-checks. The self-checks consist of
three-stage checking criteria in accordance with the level of each initiative. We also provide a glossary.

Outline of Results● In 2016, the response rate was 94%. The questions asked to rate suppliers’ CSR activity levels from 1 to 3,
and the overall average was 2.73 indicating that CSR activities were widely practiced within the entire
supply chain.
● We are working with those suppliers that require improvements (9%) or did not respond (6%) throughinterviews and other measures.

of Palm Oils

Target2020: All palm oil derivatives to be
RSPO-certified

Consumer Issues

Int r oduc t ion of w e bs it e s
In collaboration with our businesscustomers (Japanese)
http://www.lion.co.jp/ja/csr/businesscustom/＊2 RSPO
Roundtable on Sustainable Palm Oil URL http://www.rspo.org/
The RSPO sets forth 8 principles and various criteria that apply to sustainable palm oil production, including those with regard to “environmental responsibility
and conservation of natural resources and biodiversity,” “responsible development of new plantings” and “responsible consideration of employees andindividuals and communities affected by growers and mills,” and only certifies palm oils produced in compliance with the set principles.

Lion CSR Report 201743

Community Involvement andDevelopment

RSPO supply chain certification
for Lion Chemical Co., Ltd.

Fair Operating Practices

Since 2006, Lion has been a member of the Roundtableon Sustainable Palm Oil (RSPO*2), which attempts to solve
all the above-mentioned issues. In 2012, Lion ChemicalCo., Ltd.’s oleochemical production site passed the supply
chain certification system inspection and was certified asa plant that is allowed to handle RSPO-certified palm oils.
As a result of this, Lion started procuring RSPO-certified
palm oils in 2012. We set our target to complete theswitch of all palm oils to be used to certified palm oils by
the end of 2015, and all the purchased palm oil became
certified in July 2014. In 2016, we continued the purchaseof RSPO-certified palm oil derivatives to achieve the newtarget for 2020 set last year.
We will continue with our effort to procure sustainablepalm oils into the future.

The Environment

We are actively promoting the utilization of plant-derived materials that are carbon neutral and non-depletable. As one of the plant-derived materials, we are using
derivatives of palm oil – an oil that is globally producedin largest quantities. Palm oils are mainly produced in
Malaysia and Indonesia.
Palm oil plants grow constantly meaning that the oilplants can be harvested throughout the year, with the
production volumes increasing year after year. However, anumber of issues, such as the logging of tropical forestsfor development of new farms leading to a shrinking of
wildlife habitats, have risen at the production sites, as aresult of the sudden explosion of production. Also, due toinappropriate farming operations, various labor-management issues regarding social fairness, including terrible
labor conditions with very little consideration for healthand safety, very low wages, improper treatment of migrant workers, and child labor, have been raised.

Labor Practices■ Aiming for Sustainable Procurement

Lion's CSR

Plan■ Aggregate Results of Overall

Ideal Vision

Consu

m

es
er Issu

Pursuing Customer Satisfaction by
Creating Safe and Trustworthy Products
Basic Approach

In order to provide products that will satisfy ourcustomers, Lion carries out quality assurance activities at
all stages, ranging from the very beginning of the productcreation process to the customer consumption of our
products. Specifically, by identifying key requirements foreach stage of corporate activities―product planning,product development, manufacturing, sales, and customer
support―we are constantly pursuing new heights ofcustomer satisfaction.
During product planning, valuable opinions received
from customers are analyzed to identify customers’ needs.

During product development, the quality of the developed
products is verified in respect to seven metrics including
function and performance. Furthermore, we endeavor toprovide clear and easy-to-read labeling for our customers.
During manufacturing, thorough quality control is
performed within each process, and products that havepassed inspections are shipped with identifiable data foreach lot, aiding in effective after-sale management.
A variety of information is relayed to wholesalers andretailers through explanations about our products and byproviding samples.

■ Product Development Incorporating Customer Opinions
Maximization of customers' satisfaction

Customer opinions andmarket survey findings arereflected in planning in theform of quality objectives
that will ensure that
customers are fully satisfied.

Products are developed bytranslating quality
objectives into technicalparameters for design
quality.

Raw materials andproduction processes aremanaged to result in the
manufacture of productswith consistent quality.

Product information iscommunicated in anaccessible manner so that
customers can ascertain the
product features and usage.

All employees acknowledge customer satisfaction as the starting point for realizing a happier lifestyle forcustomers. By responding to customer opinions and making ongoing improvements to products, Lion creates
products that heighten customer satisfaction.

Enhancing Group-wide Quality Assurance System
Enhancing the mechanism to develop safe and high-quality products inJapan and overseas
To deliver on our promise of “offering superior productsthat are helpful in the daily lives of people,” we are promoting the manufacturing of safe and high-quality products that can satisfy our customers by putting in place aquality assurance structure based on the Quality Policy that
we established in 2008. In 2014, we established the “Pharmaceutical Affairs and Quality Assurance Department” byconsolidating the Pharmaceuticals Division and the Quality
Assurance Division, in order to build quality assurance and44

Lion CSR Report 2017

development support structures across all functions of Lion
including our overseas companies as well as a broad rangeof fields from consumables and pharmaceuticals to food.
To respond to customer needs diversified by the growthof foods with function claims and the business expansionof domestic/overseas group companies, and social needs
for products with higher quality, Lion provides our customers with safe and high-quality products.

■ Developing Safe, High-quality Products
Lion's CSR

Product
Planning

Organizational Governance・Marketing

research results

・Concept

Marketanalysis・Targetquality level

Customer
research

Human Rights

Product
Development

Building safety and quality into products

Manufacturing

Safety assurance in the
manufacturing process
is confirmed.

Quality confirmation under mass production

Quality in trial manufacturing is evaluated.
Market reception is surveyed.

Quality control is
performed in each process.

Fair Operating Practices

Quality of raw materials, packages,
and containers is confirmed.

Product freshness is managed.

Consumer Issues

Sales

At the completion ofdevelopment, the validityof the developmental
product is confirmed.

The Environment

When starting development, thesuitability of quality objectives andmatters deemed crucial to development
are confirmed.

Labor Practices❶Function/Performance❷Usability❸Safety❹Product stability❺Environmental friendliness❻Appearance (including design)❼Compliance with laws andregulations and self-imposed standards

Provision of information about product quality
Information on products is madeavailable via displays and samples
at stores, television andnewspapers, our website, andother media.

Lion CSR Report 2017

Community Involvement andDevelopment

Information is provided towholesalers and retailers toensure communication of productfeatures and usage to customers.

45

Consumer Issues■ Approach to Safety and Reliability■ Enhancing the Management Structure

Safety of Materials
We first examine the materials to determine their safety.
As the next step, we determine whether to use a particular material after evaluating the sample and supplier inorder to secure quality above a certain level. In using thematerials, they are classified into drugs, quasi-drugs, cosmetics, food, and miscellaneous, and their quality is inspected based on the inspection items and testing methods appropriate for each classification before they are
actually accepted for use.

In 2016, we received a recommendation from the Consumer
Affairs Agency with regards to an advertisement for a foodfor specified health use that it may mislead general consumers. We took this incident seriously and implemented measures to enhance the management of our advertising activities.
Specifically, we are implementing the following measures
to prevent the similar incident from happening again:①Enhancing the system for checking advertising for all			 our products including food.
②Consultation with government agencies such as the			 Consumer Affairs Agency as needed.
③In-depth training on related regulations to employees
We will continue to enhance our advertising management
to engage in more responsible advertising activities.

We evaluate the safety of our products at the raw material,
package, and container stage and upon actual use so that
our customers can use our products without any concern.

Safety During Product Use
By considering the various uses of our products as well as
product use by vulnerable customers, we perform safety
evaluation of our products from the perspective of avoiding risks at the stage of product design.
We use a checklist in our evaluation to determine
whether the product design ensures safety from “normaluse” cases to “mistaken use” cases. We evaluate if risks
can be alleviated even in the event of “irregular use,”
and also evaluate whether risks can be tolerated. Suchevaluations are reflected in our measures to secure product safety, such as by providing sufficient warnings asneeded.
Also, in the Quality Verification Meeting for quality
confirmation held with representatives of related divisions, we perform checks from the perspective of our customers during their actual use of our products in order toprevent damages during product use as well as failure toconfirm all safety check items.
In preparation for possible problems with our products,
we have in place an internal system to quickly takecountermeasures such as product recall.

Reckless use

Unforeseeable andunreasonable usage

Irregular use

Foreseeable usage, but
defying accepted norms(overly excessive use, oruse for purposes very
different to thoseintended)

Mistakenuse

Usage not as intended by
Lion but which must be
expected

Required
Safety Assurance

Normal use■ Initiatives to Listen and Respond to Our
Customers

The inquiries made by customers are registered in a database under a stringent personal information management structure and then shared at the corporate level via
an information sharing system, with the exception of personal information, so that such information can be used
for improvements in products and services, and new product development. Among this information, the information considered to affect customer satisfaction is passed
on to top management on a daily basis via a VOC*1 Daily
Letter, and efforts are made to enhance quality by ascertaining the customers’ perspective and through early consideration and handling of improvement measures led by
the product planning departments. In 2016, we sent out
241 VOC Daily Letters. In addition, we widely collect andanalyze consumers’ opinions not only through telephoneand e-mail but also via SNS*2. Furthermore, in order totake advantage of customers’ perspectives in our businessactivities, a specialized internal organization analyzes customers’ voices and proactively disseminates information
to respective departments.
＊ 1［VOC］ Voice of Customers＊ 2［SNS］ Social Networking Service（Facebook, Twitter etc.）■ Scope of Safety Confirmation

Lower risk toacceptable leveland provide warningsof Advertising

Usage as intended
by LionCurrent Status of Recall of Varsan
Hyosatsu Jet
Because the “Varsan Hyosatsu Jet for Flying Insects”
and “Varsan Hyosatsu Jet for Crawling Insects” led tofire-related accidents, Lion has been voluntarily recalling such products since August 27, 2007.
As of February 2017, 1.48 million of these products
have been recalled (recall rate: 45.7%). We would liketo ask our consumers who still have any of theseproducts and reside in Japan to assist in the recall.
Customer Support for Recallof Varsan Hyosatsu Jet Sprays
Toll-free: 0120-670-225 Open: 9 a.m. to 5 p.m. (Japan time)(Except Saturdays, Sundays, public holidays, yearend/
new year’s holidays, and summer holidays)

Self-Declaration as a Consumer-Oriented Company
Government agencies, consumer groups, and business groups are jointly promoting companies’ efforts for theengagement in consumer-oriented management. In January 2017, Lion publicized a self-declaration about its intention
to actively pursue consumer-oriented management. We report the progress to the Consumer Affairs Agency.
[Self-Declaration as Consumer-Oriented Company] (Japanese) URL http://www.lion.co.jp/ja/company/consumer-orientation/

46

Lion CSR Report 2017

Providing Information Useful for Daily Life and Promoting Educational Activities
Lion's CSR

Creation and provision of lifestyle
information that contributes toa healthy and comfortable life
Research data

Opinions of consumers

Organizational Governance

The Lion Comfortable Lifestyle Laboratories proactively communicates with consumers while aiming to provide more information that contributes to a healthy and comfortable life.

Information collection and accumulation

Creation of useful information

Meisters of Daily Life

Transmissionof news

EventsPublications

Information
dissemination

Media, etc.

Consumers

Documents

WebsiteLabor Practices

Oral care seminar held at a health-related event

Human Rights

The Lion Comfortable
Lifestyle Laboratories■ Communication with customers using “Lidea,” a website for useful
information in daily life

Lidea Enriching lives and hearts.

We are enhancing our communication with consumers in various ways by utilizing the information accumulated in Lidea.

Publishing a newsletter withlifestyle information

Two-way communication with
consumers

Fair Operating Practices

We publish newsletters
containing lifestyle topics
based on the analysis ofconsumer-generated information, including customer inquiries, to meet
consumers’ needs.

The Environment

Lidea is Lion’s website for delivering lifestyle information and for sharing delightfulideas (tips and information) with consumers that make their daily lives more comfortable and enrich their hearts. Accurate information that is useful for consumers’ daily
lives is provided mainly by “Meisters of Daily Life,” specialists with expertise on lifestyle
information.

We create opportunities, such as private
events, to engage with
consumers to deliver
our messages and listen to their opinions.
Party for Lidea fans

Lifestyle Tips

Session to share lifestyle information

Communicatingwith overseas consumers

Community Involvement andDevelopment

We hold seminars
regularly for the reporters from broadcasters, newspapers,
and magazines toprovide lifestyle information.

Consumer Issues

Communications throughmass media

Lifestyle informationthat suits the culture
and habits of the local
market is provided on
our overseas groupcompany’s websites.
Website of our group company in Taiwan

Lion CSR Report 201747

Consumer Issues

Offering Products and Information that Contribute to the Development of a Sustainable Society
Development of products with less load on the society andenvironment, and educational activities■ Promoting 3Rs

With a focus to minimize the number of containers andamount of packaging materials we use, we are proactively promoting the 3Rs (Reduce, Reuse, and Recycle).

■ Example of Environmental Label Attachedto Products［Lion’s eco-standard］(Japanese)

URL http://www.lion.co.jp/ja/csr/ecolion/

This container is made with approximately10% (by weight) recycled plastic.

“CHARMY Magica”(dishwashing detergents)

Reduction of
Usage

Reuse ofcontainers

RecycleWastesMake containers andpackages more compact

Increase refill
products

Proactively use
recycled materials

Conserve water with one
rinse. Please visit our website
for details.

■ Promotion of Environmental

Communication through Products

In order to inform consumers of the importance of environmental considerations through products, Lion has put
an “environmental label” to products that fulfill the“Lion eco-standard” since 2014. An environmental logo
and environmental explanation are printed on the label.
The criteria for “Lion eco-standard” are set based on the
product life cycle.

Plastic wastes can be reduced byapproximately 83% by using therefill. (Compared with the productin a 450g container, by weight)“TOP SUPER NANOX” and its refill(super-concentrated liquid
laundry detergent)［Every Day. For the Earth.］(Introduction of eco-friendly products) (Japanese)
URL http://www.lion.co.jp/ja/csr/ecolion/“TOP Platinum Clear”(powder laundry detergent)Approximately 67% of the content (organic
ingredient) consists of plant material. Please
visit our website for details.

Promoting Information Security
Efforts for protecting personal information and preventing
information leaks
In order to thoroughly protect personal information andensure information security, Lion has established the “Basic Policy of Our Information Management,” the “Information Management Regulations,” and the “Information
Security Regulations” as well as the “Personal Information Management Regulations,” which is in conformancewith the “Act on the Protection of Personal Information.” In addition, we have in place the “Lion Group Social Media Policy” and basic guidelines to be observed tomake sure that we can disseminate appropriate information regarding our employees’ use of social media (social
network service, blogs, etc.).

In 2015, with the aim of enhancing internal information management systems, we revised the related regulations. In 2016, we continued to provide e-learning to all
employees on the risks of social media, information security, and the information management systems.
For our overseas group companies, we promote information security measures, including the protection of
personal information, based on local legislations.
［Lion Group Social Media Policy］(Japanese)
URL http://www.lion.co.jp/smp.htm

Int r oduc t ion of w e bs it e s
In collaboration with our customers (Japanese)
http://www.lion.co.jp/ja/csr/consumer/

48

Lion CSR Report 2017

Ideal Visionbusiness, Lion works to solve regional and social issues
in cooperation with local residents, government, andcitizens’ groups.
In addition, by increasing opportunities for each employee to participate in business-related social and environmental contribution activities, we foster humanresources that create new values on the basis of a highlevel of social and environmental awareness.

Human Rights

Championing the spirit of our founder Tomijiro Kobayashi, which is to “contribute to society throughbusiness activities,” Lion engages in activities that contribute to a healthy and comfortable society and environment with the aim of being helpful in daily lives bycreating future value for everyone. As it is necessary to
co-exist with the locations of business facilities andother related communities in order to continue ourOrganizational Governance

Basic Approach

Lion's CSR

Co-existing and Co-prospering with Society andCommunities/ Contributing to the Development of Society
in the Areas of Health, Comfort and the Environment

unityandComm
ement
Involvvelopment
De■ Lion’s Social and Environmental Contribution Activities

LDH dental health activities

Kidzania

Oral Health Event ofTooth Brushing for Children

Educational activities forpreventive dentistry

Educational activities for hand washing and gargling

Water Resource
Conservation Activities

Forest maintenance activities
Educational activities forrainwater utilization(Rainwater Utilization Ideas Contest,
Japan Water Prize, and Japan Society
on Water Environment)

The Environment

Educational
activities for Hygiene
Care Habits

Activities by Meisters of Daily Life

Educational Activities
for Oral Health

Labor Practices

Environmental Field

Health and Comfort Field

Our Priorities
Involvement of employees

Fair Operating Practices

Co-existencewith communities

The websites below are all in Japanese.
［Educational Activities for Oral Health］URL http://www.lion.co.jp/ja/csr/community/oral/［Educational Activities for Hygiene Care Habits］URL http://www.lion.co.jp/ja/csr/community/washing/［Water Resource Conservation Activities］URL http://www.lion.co.jp/ja/csr/social/

Environmental Field

Along with provision of products that help build healthy andcomfortable living habits, we promote educational activities
for oral health and hygiene care habits.
Our major activities in this field are as follows: educational
activities for preventive dentistry in which both “professionalcare” at dental clinics and daily “self-care” are continuously
conducted, Oral Health Event of Tooth Brushing for Children,
supporting dental health activities for mothers and children,
schools, and the elderly, promoted by the Lion Foundation for
Dental Health (LDH), and educational activities for hand washing and gargling implemented mainly by Lion’s employees.
Our overseas group companies are also actively engaged invarious educational activities.

As the company’s business is based on its deep relationshipwith water, we place emphasis on water resource conservation activities, such as promoting society on environmental
awareness through initiatives to use rainwater and forest
maintenance activities at Yamanashi City.

Community Involvement andDevelopment

Related Information  Highlight01

Related Information p51

Consumer Issues

Health and Comfort Field(p18-23), p50-51［Lion Group's Social Contribution Activities］

URL http://www.lion.co.jp/ja/csr/community/overseas/

Lion CSR Report 201749

Community Involvement and Development

Enhancing Social Contribution Programs to Create Healthy and Comfortable Living Habits■ Educational Activities for Oral Health via
Foundation

Lion has been consistently promoting awareness and educational activities regarding oral health since 1913 as mandated
by our philosophy of “returning profit obtained through corporate activities to the society,” which has remained unchanged since the foundation of the company. In 1964, Lion
established a foundation called the Lion Foundation for Dental Health (LDH), which was approved by the Ministry of
Health and Welfare of Japan (as it was referred to at thetime). In 2010, the Cabinet Office approved the change in thefoundation’s status to a public interest incorporated foundation, and LDH commenced its operations. Through the threepublic benefit services shown below, LDH has consistently
been coordinating with the Japan Dental Association, universities, and administrations to maintain and promote dental
and oral health of consumers. LDH is contributing to society
at the forefront of oral health in order to improve the qualityof life of all people. Lion gives full support to its activities.

Three Public Benefit Services of LDH
1.Oral health promotion projects

Promotion activities of oral health at all life stages
2.Research and investigative project

Investigation/research into the importance of oral
health in prolonging health span, and provision of information on research results obtained through business and other activities to specialists and consumers
3.Educational and training projects

Holding of various seminars and lectures for health instructors and dental specialists［The Lion Foundation for Dental Health,a public interest incorporated foundation］

A scene from an elementary school which
participated in the Oral Health Event of Tooth Brushing for Children■ Oral Health Event ofTooth Brushing for Children

The Oral Health Event of Tooth Brushing for Children,
started in 1932, is held every year for elementary school
children during a week designated as the “dental/oral
health week (June 4th to 10th).” In 2016, a total of approximately 90 thousand students of 1,729 elementary
schools from across Japan and eight countries/regions in
Asia participated in the 73rd event and learned together
about “healthy gums” through online distribution.

approx.

Accumulated
total participants:

URL http://www.lion-dent-health.or.jp/english/

Education focused on prevention of aperiodontal disease and instructions
focused on maintenance/improvementof teeth and oral health provided to
employees of various companies

Activities for oral health promotion
for mothers and children

approx.

Diagnosed: 27,562 people

1.14 million

approx.

Participants: 17,110 people

Face-to-face educational activities
with students and their parents andprovision of support for health teachers

Accumulated
total participants:

Implementation of highly-professional, quality treatment and preventive
dentistry activities based on the concept of risk control dentistry*

approx.

23.27 million

27,000Treatment activities

Participants: 7,105 students and 2,407
health teachers
Accumulated
total participants:

2.07 million

Provision of supports to help maintainoral functions to enable eating with
one’s own teeth and mouth over along time in the future

approx.

Activities for oral healthpromotion for school children

Accumulated
total participants:

Activities for oral health promotion
for the elderly (From 2007)

Participants: 685 infants and preschoolers
and 716 parents
Accumulated
total participants:

millionActivities for oral healthpromotion for adults (industry)■ Main Social Contribution Activities
of LDH in 2016Childcare support programs in thearea of “dental and oral health” for expectant mothers, infants, preschoolers, and their parents

1.08

approx.

Diagnosed: 11,435 people

Accumulated
total participants:

1.84 million

Accumulated totals are total numbers since establishment of the LDH (1964)*Risk Control Dentistry

Customized dental treatment in which care methods are changed according to the risks of tooth decay or periodontal disease of individuals

50

Lion CSR Report 2017

■ Educational Activities for Hygiene Care Habits
Lion has been working on activities to have proper handwashing and gargling habits take root mainly with the“KireiKirei” brand, aiming at maintaining the healthy andcomfortable lifestyles of people.
With a policy of “employees’ voluntarily conducting activities,” Lion is aiming that 100% of employees will participate
in hand washing educational activities by 2050. During theperiod between 2012 and 2016, 571 employees (22%) took
part in the activities.
We conducted educational activities for hand washing at
kindergartens, preschools and public facilities in the areas
where our business facilities are located across Japan, Ishinomaki City in Miyagi Prefecture which is an earthquake disaster area and closely connected to our founder, and Sakaide
City in Kagawa Prefecture where “KireiKirei” hand soaps are
manufactured. In addition, hand washing educational activities in kindergartens and preschools are conducted jointlywith our business partners and are also included as part ofcorporate training programs for younger employees, which
help improve our employees’ awareness for community involvement. Hand washing educational activities are also conducted in Asian countries where “KireiKirei” products are
sold.
We also work with local governments. Since 2014, Sakaide
City and Lion Chemical Co., Ltd., the production base of“KireiKirei” hand soap, have been jointly promoting the“KireiKirei City-Sakaide” Project, aiming to penetrate andestablish hygiene practices and habits among the citizens of
Sakaide.

Lion's CSR

Care for Health and Hygiene
During Emergency

Organizational Governance

Lion produced a pamphlet titled“Care for Health and Hygiene During
Emergency,” providing information
on health and hygiene in a disastrous
situation in which it is important to
pay special attention to health conditions.
We will continue our efforts in establishing the habit of hygiene andcleanliness.
“Care for Health and Hygiene During Emergency” Pamphlet（Japanese）
URL http://www.lion.co.jp/ja/emergency-care/

Human Rights

Int r oduc t ion of w e bs it e s
Lion’s Social Contribution Activities (Japanese)
http://www.lion.co.jp/ja/csr/community/

Lion’s Initiatives to Support the Reconstruction
Work after the Great East Japan Earthquake (Japanese)
http://www.lion.co.jp/ja/csr/reconstruction/
Labor Practices［“KireiKirei City-Sakaide” Project (hand washing education activities) ］(Japanese)
URL http://www.lion.co.jp/ja/csr/community/washing

Related Information  Highlight01 （p18-23）

Water Resource Conservation Activities
Rainwater Utilization
Ideas Contest 2016

Forest Maintenance Activities at theLion Forest in Yamanashi

1,253

The “Rainwater Utilization Ideas Contest” has been held since 2011
with the aim of having elementary and middle school students
across Japan think about ways to use rainwater and realize its importance. In addition to honoring individuals for their achievements, rainwater tanks
are awarded as a group
incentive prize to twogroups which submitted
many outstanding pieces.
Number of entries in total

employees

38,821
Consumer Issues［Lion Forest in Yamanashi］(Japanese)［Lion Rain’s Gift Forum］(Japanese)

URL http://www.lion.co.jp/ja/csr/social/forest/

Fair Operating Practices

Since 2006, Lion has engaged in improving the forest, which is a water
source, at the Lion Forest in Yamanashi for the purpose of increasing
employees’ environmental
awareness. In 2016, a totalof 157 employees participated in the forest maintenanceactivities as part of the new
employee training and voluntary forest improvement
activities (which took place
three times).
Number of employees who
participated in the activities in total

The Environment

Through the act of “washing,” we have always been deeply involved with water. Lion is actively involved in forest maintenance activities and in the promotion and raising awareness of the utilization of rainwater, which is a familiar water resource, as part of our water resource conservation activities.

URL http://www.lion.co.jp/ja/csr/social/rain/

Plant Tours

Plants
Details of
Plant Tours
in 2016

Chiba

OdawaraOsaka

AkashiCommunity Involvement andDevelopment

We regard plant tours as an important contact between customers and Lion. In order to havecustomers feel familiar with Lion’s products and see our operations placing highest priority on
safety and environmental conservation, we welcome many visitors to the plants every year.
Total

Number ofstudy tours

88

95

38

90

311

Study tour
participants

2,217

2,164

838

2,501

7,720

Plant tour at Odawara Plant

Lion CSR Report 201751

T h i rd - P a r t y R e v ie w
Lion has contributed to the establishment of good habits which are necessary for all people, through its products and business activities. CSR initiatives inevitably
have relevance to manufacturers of products, associatedpersons/organizations, and all users since it is necessary
to overlook the value chain throughout the business. In
this report, Lion identifies group-wide material CSR issues and provides comprehensive information of activities inside and outside Japan to facilitate better understanding.
In Highlight 01, detailed information on educational
activities for hygiene care habits in various countries areillustrated so that readers can be more familiar withsuch activities and practices. Lion’s hand washing activities introduced in this section incorporate different
ideas to encourage young children to wash their hands
voluntarily and habitually by explaining the importanceand fun of hand washing, based on habitual differences
and characteristics across countries and regions. Fromthese activities, I could see that Lion is promoting social
contribution activities through its business.
Highlight 02 demonstrates that Lion is serious about
supporting its employees by introducing support programs that help maintain the work-life balance of employees raising children and employees providing nursing care for family. Among these programs, the newly
introduced Short Hours Flextime System is a measurethat is bold and forward-looking. While most companies maintain an upper limit, Lion’s new system is available for employees as long as they need it for nursing
care. While the majority of Japanese female workers
leave their jobs after childbirth, Lion’s mindfulness towards its employees is also proven by the fact that
100% of its female employees return to work after childcare leave. This is because of Lion’s strong support for
employees raising children and returning to work. Lion’s efforts in developing employees’ work-life balanceand securing diversity in the workplace including theestablishment of a special subsidiary that promotes employment of people with disabilities are also worth
praising
Among many environmental and social issues,
water resource conservation is and will remain a serious one on a global level. It is important for companies to act locally and consider every step of
their entire business process from product planning/development to manufacturing and from useof water to discharge. In Highlight 03, full-scale
operation of a water recycling system in Chiba
Plant is introduced. It is a very efficient system witha huge potential that not only purifies waste water
generated in the production process but also recycles it to reduce total water consumption. Including
this case, Lion has achieved many of its environ-

52

Lion CSR Report 2017

mental goals set in “Eco Vision 2020,” and is expected to contribute to the bottoming-up of industry-wide efforts by accelerating its activities asmuch as possible and setting new and more aggressive targets. For the areas of consumer issues andcommunity involvement/development, Lion is engaged in wider activities and deeper communications through its main businesses. Readers are encouraged to visit the “Lidea” website and Lion’s CSR
website to experience them.
As Lion’s business depends on natural capital, special
consideration should be given to global initiatives onhuman rights and sustainable procurement of raw materials across its value chain. Accordingly, during the“Vision 2020” V-2 Period, its medium-term management
plan, Lion is working hard to solve the issues and create
new values based on Sustainable Development Goals(SDGs). This year’s report shows the achievement level of2016 against 2017 targets for CSR’s material issues, butmore notably, it has been expanded to include more information related to overseas activities, due to increased sharing of CSR related information compared tothe previous year. With better understanding of overseas risks and more collaborations with overseas offices,which have led to more transparency in management,
continuous further enhancement of these efforts will
create more value for the entire group.
I believe that both healthy earth and healthy people
are essential to maintain people’s lives and businesses.
As for CSR management, it needs to develop new services required at the time and be bold enough to challenge today’s tough issues for the future. Since its
foundation, Lion has been responding to these issues
through its business, and now it is ready to leap forward to the next stage by creating new values from a“New Combination” of product and experience. By actively listening to employees and customers all over theworld and understanding various stories in their backgrounds, Lion will successfully establish its CSR management and become a greater company that spreads
the spirit of compassion for others.

Environmental Expert,
Ethical Life Advisor

Manami
Yamaguchi
Representative Director of FEM Co., Ltd
Chairperson of Environmental BusinessResearch Institute
Director of Japan Ethical Initiatives

From Lion
Under our founding sprit of “Benefiting Society throughBusiness Activities,” Lion has always been aware of its
expected role in society and has been involved in solvingsocial issues that change with the times.
Going forward, it is essential that CSR is integrated
with management in order for us to contribute to theongoing development of society through our businesses. We have identified material group-wide CSR issues
and are monitoring the progress based on the medium-term targets linked to the management plan.
As favorably evaluated in the Third-Party Review, wehave enhanced the reporting of the Group-wide CSR
activities by setting a structure with which informationis regularly shared with overseas group companies. We
will continue to strengthen our CSR management, whileaiming to understand the CSR-related risks better andto reinforce social cooperation.
Our efforts in establishing a healthy work-life balance
for employees and securing diversity in the workplacealso received positive assessment. Especially, the newly
introduced Short Hours Flextime System which is available for employees as long as they need for nursing care,
was described as a bold forward-looking challenge. We
will further enhance the system so that employees in different life stages can benefit from it, and create a working environment in which employees can easily access tothe system. We aim to establish an environment in which
our employees, playing a central role of the CSR management, will be able to develop a healthy balance between work and nursing care/childcare, and can workwithout anxiety.

Regarding water resource conservation, we received
precious advice that we should act locally and give
greater considerations to each step of our entire business process from planning/development to production
and use of products. We are promoting water resource
conservation activities that cover the entire lifecycle ofour products, from planning/development of water-saving products and recycling of waste water in our plant,
to educational activities to convey the importance ofwater to the society.
The Review also suggested that we set more ambitious environmental targets. Accordingly, we will develop long-term environmental goals, including the upgrade of existing targets that have already been
attained, in harmony with the social landscape such as
the Paris Agreement and SDGs, in order to contribute to
the improvement of people’s lives.
We will continue our activities to secure healthy andcomfortable lifestyles for people in their future, and weare determined to fulfill our responsibilities in society
with precise understanding of the social issues throughdialogues and cooperation with the stakeholders.

Director in charge of CSR

KenjiroKobayashi

Editorial Note
Lion is in the process of establishing a Group-wide structure
for our CSR activities, including overseas group companies.
In our CSR Report 2017 and our website, we provide
broader information on our overseas CSR activities comparedto the previous year. For example, the 2016 Highlights “LionGroup Educational Activities for Hygiene Care Habits in

当社はグローバルなJapan and Overseas,” introduces hand washing educational

FTSE4Good Global Indexに

社会的責任投資指標である
選定されています。

activities through the ”KireKirei” hand soap conducted in
Asian countries. For detailed information on Lion’s social
contribution activities in different countries/regions in Asia,
please visit our website.

Lion CSR Report 201753

Published by

Lion Corporation
Published on: June 30, 2017
To be published next on: June, 2018

Inquiries
CSR Promotion Department, Lion Corporation 3-7, Honjo 1-chome,
Sumida-ku, Tokyo 130-8644, Japan
Website (Japanese): http://www.lion.co.jp/
Tel: 03-3621-6611 Fax: 03-3625-8625
Website (English) : http://www.lion.co.jp/en/
Tel: +81-3-3621-6611 Fax: +81-3-3625-8625