Lion
Sustainability Report
2018Love today, Love your life.

Supporitng cleanliness,while protecting ourThis is our mission,

01

Lion Sustainability Report 2018

health and comfort,
global environment
one in which we take pride.

Lion Sustainability Report 201802

Company Motto/Management Philosophy/
Lion Group Charter for Corporate Behavior
Company Motto
Lion Corporation positions “Fulfilling a Spirit of Love” asfundamental to its management, and thus contributes tothe enrichment of the happiness and 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 products that are helpful in the daily lives of people.

2
3

We respect the “Spirit of Tenacity and Creativity” that we havemaintained since our founding, as we continue developing our business.
We deeply appreciate all those who extend their valuable support tous, as we prosper together through sincerity and mutual trust.

Lion Group Charter for Corporate Behavior
We, the Lion Group, shall, in addition to being an economic entity designated to pursue profits throughfair competition, act as a social entity that contributes to society at large. We shall respect human rights
and conduct ourselves with initiative in a socially responsible manner toward the creation of a sustainable
society, observing both the spirit as well as the letter of all applicable laws and international rules andnot harming the public interest, both in Japan and abroad, in accordance with the following 10 principles.
1. [Principal Mission] We shall earn the confidence and satisfaction 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 activerole in creating a sustainable society that harmonizes
economic development and environmental protection.
5. [Improvement of Working Environments] We shall promote 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 contribute tosociety as good corporate citizens.
7. [Opposition to Antisocial Forces] We shall firmly oppose
antisocial entities and organizations threatening theorder and security of civil society.

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Lion Sustainability Report 2018

8. [Contribution in Foreign Countries] In our overseas operations, we shall not only observe international rules and thelaws of relevant foreign countries, but also respect local
cultures and customs and contribute to the developmentof local communities with sincerity and mutual trust.
9. [Practice of Corporate Ethics] Top management shall assume 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 theprinciples of this Charter occur, top management shall
publicly clarify its position, taking responsibility to resolve
the problem on its own initiative, and strive to investigate
the facts, identify the causes of the incident and prevent
recurrences. Top management shall fulfill its responsibility
to disclose accurate information promptly and explain thesituation, and shall resolve the problem in a manner fully
understandable to society. After clarifying authority andresponsibility for said problem, top management shall impose strict and impartial disciplinary actions upon any liable persons, including the highest level of management.
Established January 1, 2003 and amended January 1, 2008

Corporate Message

Corporate Slogan

life. love.

The Heart of All We Do
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 a bright future, and thatliving 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.

Lion Sustainability Report 201804

CONTENTS
03

Company Motto/Management Philosophy
Lion Group Charter for Corporate
Behavior

04

Corporate Message

06

Corporate Data

07

History of the Lion Group09

Main Business Segments

11

Message from the Management

13

New Management Vision:“Becoming an Advanced Daily
Healthcare Company”

Lion’s Sustainability
15

Value cretaion by the Lion Group17

Sustainability Material Issues
for the Lion Group(2015 - 2017)21

Identification of Sustainability MaterialIssues in “The LIVE Plan,” Mediumterm Management Plan (2018 - 2020)2017 Highlights

05

25

Preventive Dentistry from Age 029

Our Open Innovation Work

31

Biodiversity Conservation
Activities at Lion Domestic Sites

35

Organizational Governance38

Human Rights

39

Labor Practices

43

The Environment

49

Fair Operating Practices

51

Consumer Issues

56

Community Involvement and Development

59

Third-Party Review

60

Lion’s Response

Lion Sustainability Report 2018

Editorial Policy
Lion views its Sustainability Report as an important
tool allowing the company to present its sustainability initiatives and draw on stakeholder opinions
while furthering corporate activities.
Editorial Policy for Sustainability Report 2018
● Since 2011, our initiatives for sustainability have been systematizedin accordance with ISO 26000, an international standard concerningsocial responsibility. The Sustainability Report also reflect the above.
● The report discloses Sustainability Material Issues and our progress

towards the Medium-term sustainability obejctives corresponding
to Lion’s management plan.
● Details of the activities that have especially demonstrated are provided as2017 Highlights so that readers can more easily understand their contents.
● The URLs at the bottom of the pages on each core subject of ISO

26000 can be used to view our website, which includes more details of our activities.
● Readers can also easily access Lion’s primary web pages by using

the two-dimensional bar codes. (smartphone-friendly websites).
● A third-party review by an 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 sustainability activities, including those that were not intro-

duced in this report, are comprehensively presented on our website.

Reference Guidelines● The Environmental Reporting Guidelines (2012) of the Japanese

Ministry of the Environment● GRI Sustainability Reporting Standards of the Global Reporting Initiative● ISO 26000: 2010 Guidance on social responsibility issued by theJapanese Standards Association[Comparative Table with Respective Guidelines]
URL http://w w w.lion.co.jp/ja/csr/guideline/

Coverage● Lion Corporation and all of its domestic consolidated subsidiaries

are covered, as a general rule. Overseas consolidated subsidiaries
are also covered on the Sustainability Material Issues and objectives
described on p.17-20 and p.23-24.
*If the coverage of reported activities or data is different from the above, a description will be provided in each case.

Period Covered● January 1 to December 31, 2017

(Some parts of the activities also include parts of 2018.)

Corporate Data
<Company Profile>
Corporate Name
Address
Foundation Date
Capital<Performance Transitions (consolidated)>

Lion Corporation

Net Sales

3-7, Honjo 1-chome, Sumida-ku, Tokyo
130-8644, Japan
October 30, 1891

410,484
395,606

400,000¥ 34,433.72 million (as of December 31, 2017)

Representative

Itsuo Hama, Representative Director, President Executive Officer

Employees

Consolidated: 7,075
Non-consolidated: 2,550 (as of December 31, 2017)

Net Sales

Consolidated: ¥ 410,400 million
Non-consolidated: ¥ 264,200 million (as of December 2017)

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

Research Facilities Hirai (Edogawa-ku), Odawara (Odawara City)
Sales Offices(million yen)
450,000

Sapporo, Sendai, Tokyo, Nagoya, Osaka, Fukuoka

335,171

300,000
250,000

0
2012

2013

2014

2015

35,000Operating Income Ratio
Operating Income

30,00015,000Consumer Products Business¥290,890 million

Oral Care Products

Other Products¥68,270 million¥24,540 million¥79,540 million¥20,780 million¥39,020 million¥58,700 million

Industrial Products Business¥55,760 million

Overseas Business¥120,090 million

Others¥30,560 million

Beauty Care Products
Fabric Care Products
Living Care Products
Pharmaceutical Products▲ ¥86,830 million¥410,480 million

Consolidated Net Sales

2017 (year)(million yen)

4.3

20,000<Net Sales Breakdown by Business>

2016

Operating Income / Operating Income Ratio

25,000[List of Major Subsidiaries and Affiliates]
URL http://www.lion.co.jp/en/company/group/

Adjustment*

367,396352,005

350,000

378,659

10,000

3.4

3.1
2.2

6.2

24,502

6.6

(%)

7
6

27,2065
4

16,374

3

12,406

10,819

2

7,213

1

5,000

0

0
2012

2013

2014

2015

2016

2017 (year)

Net Income / Net Income Ratio(million yen)
25,000

Profit Ratio Attributable to Owners of Parent
Profit Attributable to Owners of Parent
4.0

20,0002.8

15,00010,000
5,000

0

2.0
1.7
1.3

19,8274
3

10,680

2
1

4,235

2012

(%)
5

15,951

7,368

6,097

4.8

2013

2014

2015

2016

0

2017 (year)(Note) From December 2016, we have changed our content “Net Income” to“Profit Attributable to Owners of Parent .”*Intra-segment and inter-segment sales<Locations of Overseas Group Companies>
Overseas sales compared to previous year 109% Ratio of overseas sales 26%(after adjustment):(consolidated):
Hong Kong

China(Lion Daily Necessities Chemicals(Lion Corporation (Hong Kong) Ltd.)(Qingdao) Co., Ltd.)

ThailandSouth Korea(Lion Corporation (Thailand) Ltd.)

Malaysia<List of Domestic Consolidated Subsidiaries>
Lion Chemical Co., Ltd.
Lion Business Service Co., Ltd.

(LION COROPORATION (KOREA))

Lion Specialty Chemicals Co., Ltd.

TaiwanLion Hygiene Co., Ltd.

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

Lion Trading Co., Ltd.

(Southern Lion Sdn. Bhd.)(Global Eco Chemicals Malaysia SDN. BHD.)

Lion Packaging Co., Ltd.
Indonesia

Singapore[IR Library]
URL http://www.lion.co.jp/en/ir/library/(P. T. Lion Wings)(PT Global Eco Chemicals Indonesia)(Lion Corporation (Singapore) Pte. Ltd.)(Global Eco Chemicals Singapore Pte. Ltd.)

Lion Engineering Co., Ltd.
Lion Logistics Service Co., Ltd.
Lion Cordial Support Co., Ltd.
Lion Dental Products Co., Ltd.
Lion Tomoni Co., Ltd.

*Red text indicates consolidated subsidiaries.

Lion Idemitsu Composites Co., Ltd.
Lion Sustainability Report 201806

History of the Lion Group

From 1896

From 1913

From the 1960s

Promoting oral hygiene /The foundation of social
contribution activities

Starting educational activities toinstill tooth brushing habits inchildren

Expanding the market anddeveloping world-class products

Oral Health

Lion Toothpowder

Toothpaste was sold alongside such promotional gifts asbookmarks and picture books in order to help to teachthe importance of tooth brushing from an early age
Completion of the
Odawara Plant(Reinforcement of the
production system)

Charity coupons printed on
the back of packets(The root of Lion’s social contribution activities)

Cleanliness and Comfort
Environmental Innitiatives
07

White & White

Lion Dental Clinic for Children(Development of easy-to-use laminated tubes)

1891 to1940s

1950s

Promoted awareness about washing with detergent

Responding to health hazards
caused by parasites with a neutral
detergent for washing vegetables

Manual on the standard
home laundry procedures(Education on laundry procedures)

Lipon

Lipon F

(Japan’s first mineral oil-based
synthetic detergent for home use)

(Earned the top recommendation of theJapan Food Hygiene Association)

From the 1920s

1960s to 1980s

Use of plant-derived soap

Responding to the water environment issues
Responding to eutrophication in lakes and floating bubles in rivers related
to the use of detergents

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

Lion Sustainability Report 2018

Dash

Murin (phosphorus-free) TOP

Lion’s origins lie in soap and toothpaste. Since the foundation, we have aimed to promote daily healthfor people by providing useful products and have driven educational activities and provision of information to consumers, thus helping to foster good habits. We have long been deeply aware that the pollution of the global environment is a worldwide issue and have taken steps to respond to environmental
concerns such as by developing environment-friendly products. We are continuing to take action andmove toward the goal of sustainability as we have throughout our past, in order to correspond with important social issues which change along with the times.

Present
Responding to diversifying oral health issues withmore scientific research

From oral hygiene to systemic health
Promotion of “oral health care”

Clinica Advantage
seriesClinica(For prevention of cavities)(Promotion of“preventive
dentistry”)

Dentor(For prevention of pyorrhea)

Oral health care promotion
activities in other Asian
countries

Dentor Systema series(For prevention of periodontal
disease)From the 1960s

Present

Responding to the diverse
lifestyle needs of all people

Contributing to a clean andcomfortable lifestyle in Asia

Overseas NANOX

Mama Lemon(A dishwashing detergent which is gentle to thehands, intended for eating utensils and vegetables)

Promotional activities for handwashing habits

Overseas KireiKirei

From the 1990s

Present

Expanded a line of products based on plant-derived materials

Response to environmental issues through products and communication

ShokubutsuMonogatari(Plant Story)

Spark“Every day. For the Earth.”mark (Mark attached toour company’s eco-friendly
products)
Development of environment-friendly products

Promotion of environmental targets

Lion Sustainability Report 201808

Main Business Segments
Oral Care
Lion provides products for advanced oral
care to support daily health.
Main Products
Toothpastes, toothbrushes, dental rinses
and other dental care products.

Beauty Care
Lion promotes comfort, health and well-being
through its hair and skin care products.
Main Products
Hand soaps, body washes, antiperspirants
and deodorants, shampoos, conditioners,
men's cosmetics, hair-nourishing treatments.

Fabric Care
Lion provides safe and reliable products
in order to always wear clean clothes
comfortably.
Main Products
Laundry detergents, fabric softeners,
bleaches, clothing care agents.

Living Care
Lion offers products that promote clean
and comfortable eating habits andliving life.
Main Products
Dishwashing detergents, householdcleaners, cooking-aid products.

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Lion Sustainability Report 2018

Pharmaceuticals
Lion responds to the needs of increasing
self-medication with abundant brands.
Main Products
Antipyretic analgesics, antidiarrheals,
gastrointestinal medicines, eye drops,
tonics and nutrients.

Wellness Direct
Lion offers direct-to-consumer sales products that canmeet the variety of consumer’s health and beauty needs.
Main Products
Health food products, aging care products.

Gift and Special OrderPet Supplies (Lion Trading Co., Ltd.)

Lion provides a variety of gift and special-order prod-

Lion supports the well-being of pet owners and theiructs for its customers.

animals through products that promote cleanliness,

Main Products

health and comfort.

Gifts, novelties.

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

Overseas Business
Lion develops its business in eight Asian countries and regions
including Thailand, Malaysia, and South Korea and provide
products that are helpful in the daily lives beyond culture andlanguage globallly.
Main Products
Laundry detergents, dishwashing detergents, toothpastes,
toothbrushes, hand soaps, body washes.

Lion Sustainability Report 201810

Message from the Management
Becoming an advanced daily healthcare company
Lion will realize “healthy minds and bodies for all,”through the “ReDesign” of everyday rituals to become more natural,easy and enjoyable and will continue to benefit society through businessactivities. To this end, we will create “customer experience-based value”
in the areas of health, comfort and cleanliness.

Representative Director,
President Executive Officer

Itsuo Hama

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Lion Sustainability Report 2018

Since its foundation in 1891 , Lion has continued
to respond through its business activities to social
issues, which have changed with the times. Even in
our medium-term management plan (V- 2 Plan) set
for the period from 2015 to 2017 , we have madeefforts to strengthen our management foundationfrom the perspective of ESG (Environment, Socialand Governance), while proceeding initiatives
to resolve social issues through our businesses
and educational activities which include theadvancement of oral health care with a focus onpromoting “preventive dentistry”.
In Japan and other Asian countries today,
people’s lives and social environments are changing
drastically with increasing acceleration. These
include significant transformation of people’s
lifestyles brought about by dramatic innovations indigital technology represented by AI and the IoT, aslowdown in economic growth and the accelerationof aging societies.
Also, while healthcare needs such as improvementof QOL (Quality of Life) and the extension ofhealthy lifespans are growing stronger both inJapan and overseas, we believe that the roles playedby our company, which have become a familiar partof our daily lives, will expand even further. Amidsuch extensive changes, the Lion Group will needto further clarify the intended direction of progress
and accelerate steps for reform. This will create newvalues to help maintain its position, as expected bysocieties and customers in Asia.
Thereupon, Lion has cretaed a new management
vision: “Becoming an advanced daily healthcarecompany”, to define the status we wish to realizeby the year 2030.
We will realize “healthy minds and bodies forall”, through the “ReDesign” of everyday rituals
to become more natural, easy, and enjoyable. To
this end, we will create “customer experiencebased value” in the areas of health, comfort andcleanliness. Being a leader in fostering people’scontentment from a new perspective, as we would
like to contribute to “extension of healthy life
expectancy” and “ensuring people’s everyday wellbeing”.
No matter how the times may change, ourfounding spirit of “Benefiting Society throughBusiness Activities” has been deeply embedded into
our business activities and employees as Lion’s DNA.
As we execute the “LIVE Plan” (LION Value

Evolution Plan), our medium-term management
plan from 2018 to 2020, we will promote thecreation of new business values to achieve healthcare for individual by new combinations of various
types of technology and services. We will alsoendeavor to develop diverse and open personnel,
organizations and cultures to facilitate those goals
and continue to respond to social issues well into
the future.

Aiming at Sustainable Management
In 2 0 0 9 , Lion announced its support for the UN
Global Compact: a global framework to realize
sustainable growth. With a thorough understandingof the requirements from societies described in
the ISO 2 6 0 0 0 international standard on social
responsibility and isuues of whole societies such as
the SDGs, we rubbed together with management
issues, identified Sustainability Material Issues, set
medium-term objectives for the entire Lion Group
including our overseas groups and moving forwardwith Group-based initiatives.
In our LIVE Plan as well, we have identified new
Sustainability Material Issues and have set related
targets.
We have also set up “CSV Management Meetings”
within our company from January 2018, to promote
CSV* which are aimed at achieving sustainable
management. Through these meetings, we will
formulate medium- to long-term CSV strategies
linked with the creation of both social and businessvalues, conduct a study on key ESG-related matters
so that our company can meet the expectations ofsociety far into the future and monitor the status of
their execution.
For the contribution to sustainable society, Lion
corporation will strengthen our ESG initiatives andpromote the creation of values shared with society
through our businesses.
And we will dedicate to enhance our corporate
value furthermore to become a highly-trusted
c o m p a n y w h i c h e n a b l e t o m e e t s o c i e t y ’s
expectations.
* CSV (Creating Shared Value)
Creation of values which are shared by both society andbusinesses

Lion Sustainability Report 201812

New Management Vision:
Becoming an Advanced Daily Healthcare Company
Due to the advance of digital transformationand other factors, the business environmentof the Lion Group is changing at a hitherto
unimaginable pace.
Reflecting medium- to long-term changes
in the external environment, Lion has
formulated a new management vision for2030 aimed at accelerating future-oriented
transformations and a new medium-term
management plan aimed at realizing thisnew vision.
The new Management Vision and the
medium-term management plan show ourcommitment to providing solutions tosocial issues both in and outside Japan suchas improvement of QOL (quality of life),
and to contributing to the UN Sustainable
Development Goals (SDGs) through ourbusiness activities in the field of healthcare.

The LIVE Plan
Aiming to achieve the management vision, we will implement a medium-term management plan, the LION Value
Evolution Plan (LIVE Plan), over the three-year period of 2018 to 2020.

Targets of the LIVE Plan
Under the theme of evolving into a leading advanced daily healthcare company, we will advance long-term, futureoriented growth initiatives and framework-building efforts in and outside Japan while further accelerating
improvements to management efficiency to reinforce the earnings structure.

Basic Strategy of the LIVE Plan
and Evolve Our Business Domains
1 Expandthrough New Value Creation
Creating new combinations of various technologies andservices, we will create new business value that realizes“healthy minds and bodies for all”.

Focusing on growing markets in Asia, we will integrate
globalization and localization approaches to create uniquecompetitive advantages and thereby expand the scale ofour businesses and the areas in which we operate.

a. O ral-to-Body Solution: We aim for expansion and evolution that will
create an “oral health care business” in which oral care contributes
to whole-body health care.

a. We will evolve Group management by reinforcing regional
management.

b. D
 aily Self-Care Enhancement: We will work toward evolution aimed
at creating a health care business that will, in turn, “ReDesign” dailyliving to create healthful habits that help enhance QOL.
c. Infotech Health Support: We will create new health care businessmodels that leverages cutting-edge technologies, such as IoT and AI.

13

Growth in Overseas
2 Accelerate
Businesses through Glocalization

Lion Sustainability Report 2018b. W
 e will aim for business area expansion through e-commercechannels and M&A.

Contribution to the SDGs
Towards 2030, as an advanced daily healthcarecompany, the Lion Group will contribute toachieving Goal 3 of the SDGs - ensure healthy
lives and promote well-being for all at all ages through our products and serGOOD HEALTH
vices. We aim to turn the
AND WELL-BEING
world vision of the SDGs into
reality through the pursuit ofour medium-term management plan, the LIVE Plan.

Promoting our 2020 Sustainability Material Issues and Targets
Related information p.21-24

Our Management Base
3 Reinforce
through Business Structure Reform

Dynamism to Foster Innovative
4 Create
ChangeBy improving management infrastructure and revising thebusiness portfolio to stay ahead of changes in theenvironment, we will reinforce our management base toenable sustainable business growth.

We aim to foster corporate strength that will win out overglobal competition by promoting diversity and openness
in our human resources, organizations, and corporate
culture.

a. We will reinforce investment in the flexible, efficient manufacturing
infrastructure that will drive business growth.

a. We will create human dynamism by utilizing diverse humanresources.

b. We will build more advanced and sustainable supply chains.

b. W
 e will create organizational dynamism that fosters ambition andcreativity through open innovation.

c. We will reinforce information system foundations to promote moresophisticated Group management.
d. We will advance revisions of business fields and the Group structure
to improve the efficiency of management resources and businessactivities.

c. W
 e will create management dynamism through environmental,social, and governance (ESG) initiatives and the reinforcement ofhealth and productivity management.

Lion Sustainability Report 201814

Lion’s Sustainability

Value Creation by the Lion Group
Since its founding, Lion has sought to build healthy and comfortable living of people through the creationof better lifestyle habits, in line with its Company motto of “Fulfilling a Spirit of Love.” By striving to realize
its new Management Vision of “Becoming an advanced daily healthcare company,” and taking the lead in

C o rporate
New Management“Becoming an Advanced
We will realize “healthy minds and bodies forExternal Environment

Advance of thedigitaltransformation

Social Issues

Investment of CapitalBusiness Domains and Value2017

Lion’s BusinessDomains

Financial Capital
Improving
quality of life
(QOL)

Net assets¥187.0 billion
Total assets¥331.7 billion

Emergence ofdiverse businessplatforms

Manufac ture dC apit alPlanned capital
investment¥19.0 billion (2018)

E-commercechannelschanging retailand distribution
systems

Response
to rapidly
advancingultra-aging
society

Human C apit alNo. of Lion Group
employees
7,075 persons
Intellec tual Capital

Consumer Products BusinessIndustrial Products Business
Overseas BusinessBusiness Promotion Value Chain

R&D expenditures¥10.4 billion

Greaterhealth careconsciousness

Diversificationof labor
environments
and working
styles15

R&D

Procurement

Social and
Relationship CapitalProtectionof global
environment

Lion Sustainability Report 2018

Participants in Oral
Event of Tooth Brushing
for Children

Feedback

218 thousand children (2018)
Natural Capital

Energy input

85,327 kl

EmbeddingL i o n’s
Sustainability
2017
Highlights

fostering people’s contentment from a new perspective, Lion aims to increase corporate value and help
build a sustainable society.

P hilo s ophy
Organizational
GovernanceVision for 2030

Daily Healthcare Company”
all,” through the “ReDesign” of everyday rituals.
Value Creation

The LIVE Plan

Human Rights

Creation Process

Creation of
Shared Value(LION Value Evolution Plan)

Social Value
Labor Practices

Economic Value( 2020 Targets)*IFRS

Net Sales*

The Environment¥400 billion
Extension of healthy life expectancy

Operating Income*Production

Sales &
Marketing

Profit Attributable to
Owners of Parent*

Fair Operating
Practices¥40 billion
Ensuring people’s everyday wellbeing¥28 billion

Sustainability

ConsumerIssues

ROE*

Environmental contribution
in building a sustainable planet

12% level
Community
Involvement andDevelopment

Lion Sustainability Report 201816

Lion’s Sustainability

Sustainability Material Issues for the Lion Group(2015 - 2017)
Lion have promoted our sustainable activities based on ISO 2 6 0 0 0 , a global social responsibility
standard, since 2011 , and by listening to and incorporating the opinions of third - party organizations,
we have confirmed and evaluated our achievements in our domestic group. We identified our
Sustainability Material Issues in 2 0 1 2 and set 3 -year medium-term objectives in accordance with our
medium-term management plan for each of those issues.

Sustainability Material Issues and Targets and their Achievments from 2015 - 2017
Core Subjects

Ideal Vision

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
Governance

Maintaining a Sound
Management Systemthat is Continuously
Trusted by Society

Overseas

Setting objectives and managing progress
Domestic

Promoting Risk
Management

Continuously operating BusinessContinuity Plan (BCP) based on multiphaseprojections

Domestic

Embedding Compliance /Internal Control Systems

Raising awareness of compliance

Overseas

Enhancing internal control systems
Domestic

Formulating and Disseminating Human Rights Policy

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

Human Rights

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

Ensuring Human Rights
Due Diligence*1

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.

17

Lion Sustainability Report 2018

L i o n’s
Sustainability

RelatedInformation

Organizational
GovernanceAchievements in 2017

URL of Lion Web Page
(Websites are all in Japanese)p.37

http://www.lion.co.jp/ja/csr/management/compliance/• Announcing progress through Sustainability Report andwebsite (Once a year)

p.17-20

http://www.lion.co.jp/ja/csr/lion_csr/promotion/vision.php• Announcing progress through Sustainability Report andwebsite (Once a year)• Holding interviews on the status of progress with all of
our overseas consolidated subsidiaries (Once a year)

p.17-20

http://www.lion.co.jp/ja/csr/lion_csr/promotion/vision.php• Confirming and reviewing our BCP at Executive Committee (Once a year)

p.36

http://www.lion.co.jp/ja/csr/management/risk/• Conducting Compliance Awareness Surveys (Once a year;
97% response rate in 2017)• Providing educational programs through e-learning withregard to compliance, sexual harassment, power harassment and insider trading

p.37

http://www.lion.co.jp/ja/csr/management/compliance/• Introducing internal control policies regarding financial
result report and implementing assessments-• Implementing e-learning on the Lion Group Charter for
Corporate Behavior (Once a year)

p.37-38

http://www.lion.co.jp/ja/csr/humanrights/duediligence/• Having suppliers self-check their sustainability activities
and feeding assessment results back to the suppliers(Once a year)

p.49-50

http://www.lion.co.jp/ja/csr/businesscustom/procurement/• Raising awareness through Compliance Awareness Surveys(Once a year; 98% recognition rate in 2017)• Responding to and sorting out all cases

p.37

http://www.lion.co.jp/ja/csr/management/compliance/• Setting up and operating internal and external contacts
for reporting, and an internal contact for consultations• Disseminating information regarding the hotline throughtraining on compliancep.37

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

Fair Operating
Practices• Posting the sustainability policy in the work place• Distributing a handbook containing the sustainability
policy to employees

The Environment

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

Labor Practices

p.37

Human Rights• Implementing e-learning on the Lion Group Charter for
Corporate Behavior (Once a year)

http://www.lion.co.jp/ja/ir/library/ar/2017/

ConsumerIssuesCommunity
Involvement andDevelopment

Lion Sustainability Report 20182017
Highlights

Starting from 2015 , our company expanded their applicable boundaries (coverage), from our domestic
group to our overseas groups. We confirm and report the status of our progress toward theseobjectives annually and carry out actions for sustainability on an overall Lion Group. 2017 was the final
year for the following Sustainability Material Issues and Targets.

18

Core Subjects

Ideal Vision

Material Issues

2017 Medium-term Objectives
Domestic

Promoting Human Resource
Development / Revitalization
Programs

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 to build their career

Labor Practices

Changing Awarenessof Employees throughRaising Morale andMotivation

Domestic

Establishing Good Working
Environments

Overseas

Enhancing opportunities for talks between employees and management
Promoting Employees’ HealthManagement

Contributing to theDevelopment of a
Sustainable Society as
The Environment an Environmentally
Advanced Company

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

Domestic

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

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

Engaging in Progressive
Environmental Activities

Promoting “Eco Vision 2020” and managing progress thereof

Preventing Pollution
Enhancing Group-wide
Management of Chemical
Substances

Domestic

Domestic

Overseas

Domestic

Promoting pollution prevention
Domestic

Enhancing chemical substances management systems
Domestic

Fair Operating
Practices

Promoting CSR Activities
throughout the Supply
Chain

Promoting CSR Procurement

Domestic

Promoting “Eco Vision 2020” and managing progress thereof
Offering Products andInformation that Contributeto the Development of a
Sustainable Society

Consumer Issues

Promoting self-assessment questionnaire of CSR activities
by suppliers and providing feedback on the results

Pursuing Customer
Satisfaction by Creating
Safe and Trustworthy
Products

Providing Information Usefulfor Daily Life and Promoting
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

Promoting Information
Security Measures

Promoting Information Security
Overseas

Enhancing information security management systems
Domestic

Community
Involvement andDevelopment

19

Co-existing andCo-prospering withSociety and Communities/ Contributing to theDevelopment of Society
in the Areas of Health,Comfort and theEnvironment

Lion Sustainability Report 2018

Enhancing Social
Contribution Programs
Leading to Forming Healthy
and Comfortable Living
HabitsOverseas

Promoting educational activities for oral health: Promoting
preventive dentistry (recommending self-care and professionalcare) and education for health instructors and children

Domestic

Overseas

Promoting cleanliness :Promoting Educational Activities forChildren’s Hand Washing and GarglingL i o n’s
Sustainability

URL of Lion Web Page
(Websites are all in Japanese)• Enhancing work-life balance to support employees raising children and employees providing nursing care for their family• Promoting the Next Generation Support Act Phase 5 Action Plan

p.41

http://www.lion.co.jp/ja/csr/employee/work_life/• Periodically holding labor-management meetings

p.39

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 the e-learning systemp.42

http://www.lion.co.jp/ja/csr/employee/health/• Organizing Safety, Hygiene and Disaster Prevention Meetings topromote PDCA for safety activities (Twice a year)

p.42

http://www.lion.co.jp/ja/csr/employee/prevention/• Expanding biodiversity conservation activities at Lion sites• Managing the progress of the Environmental Objective of "EcoVision 2020" towards its targets for 2017p.31-34
p.45-46

http://www.lion.co.jp/ja/csr/highlight/
http://www.lion.co.jp/ja/csr/env/ecovision2020/• Thoroughly managing emissions and waste water in accordancewith statutory and voluntary criteria• River water monitoring both by industrial groups and by Lion

p.44

http://www.lion.co.jp/ja/csr/env/enhancement/• Starting the operation of a management system for information on chemical substances at all domestic research and development sites, to perform
integrated management of raw materials and component structures

p.45

http://www.lion.co.jp/ja/csr/env/enhancement/• Having suppliers self-check their sustainability activities and feeding assessment results back to the suppliers (Once a year)

p.49-50

http://www.lion.co.jp/ja/csr/businesscustom/procurement/• Holding Environmental Action Promotion Committee to manage
environmental progress (Twice a year)• Continuing purchases of RSPO certified palm oil derivatives

p.44, 46, 50

http://www.lion.co.jp/ja/csr/env/ecovision2020/
http://www.lion.co.jp/ja/csr/businesscustom/procurement/• Attaching Environmental Labels on eco products and providing
consumers with information

p.55

http://www.lion.co.jp/ja/csr/env/communication/• Creation, Accumulation, and Provision of Living Information conducted by Meisters of Daily Life
• Publishing information through Lidea, a website for lifestyle information and communicating to consumers by effectively applying Lion’s accumulated information

p.54

http://www.lion.co.jp/ja/csr/consumer/communication/• Promoting PDCA for quality assurance activities conducted by the
CS/PL Committee (Twice a year)• Providing education on Fundamental Quality Assurance through e-learning

p.35, 51

http://www.lion.co.jp/ja/csr/consumer/quality/• Enhancing customer support by the Customer Support Centerand the Marketing Department• Enhancing abilities to comply with the laws and regulations of each country

p.53

http://www.lion.co.jp/ja/csr/consumer/opinion/• Providing training through e-learning with regard to information security, risks of social media and our information management systemp.55

http://www.lion.co.jp/ja/csr/management/risk/• Implementing various measures to prevent leakage of personaland confidential information

p.55

http://www.lion.co.jp/ja/csr/management/risk/• Promoting “Preventive dentistry from Age 0”• Conducting initiatives for open innovation together with the Hirosaki University COI• Holding the “Oral Health Event of Tooth Brushing for Children” in Asian countries and regions• Implementing tooth brushing educational activities in areas near our business facilities• Implementing tooth brushing educational activities at kindergartens and preschools

p.25-28
p.29-30
p.57

http://www.lion.co.jp/ja/csr/highlight/
http://www.lion.co.jp/ja/csr/community/oral/
http://www.lion.co.jp/ja/csr/community/overseas/• Implementing promotional activities for hand-washing habits in
Asian countries and regions• Implementing promotional activities for hand-washing habits inareas near our business facilities• Implementing promotional activities for hand-washing habits at
kindergartens and preschools

p.58

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

Lion Sustainability Report 2018

Community
Involvement andDevelopment

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

ConsumerIssuesp.40

Fair Operating
Practices• Engaging in activities to achieve the targets based on the Act on Promotion of Women’s Participation and Advancement in the Workplace• Actively employing people with disabilities

The Environment

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

Labor Practices

p.39

Human Rights• Promoting the Target Management System to enhance PDCA activities toward attaining objectives and providing training thereon.
• Developing human resources with an aptitude for marketing

Organizational
Governance

RelatedInformation2017
Highlights

Achievements in 201720

Lion’s Sustainability

Identification of Sustainability Material Issues in the
Basic Approach
To realize our new management vision “Becoming
an advanced daily healthcare company” we will
move forward with the “LIVE Plan,” our medium-term management plan and promote sustainable management which strives to achieve both thedevelopment of a sustainable society and thegrowth of our businesses.
In order to achieve the target, the Lion Group has
identified Sustainability Material Issues to be engaged in by the year 2020.
We will dedicate ourselves to carrying out important initiatives as part of a management foundation
which seeks to reduce risks and to realizing individual “healthy minds and bodies for all” through oral
health care and cleanliness and hygiene rituals.

Ideal Vision

Development of a sustainable society
and business growthManagement Vision

The LIVE Plan

Promoting our 2020 Sustainability
Material Issues and objectives

Risks and Opportunities regarding Sustainability Material Issues in the Supply Chain
Major Initiatives
Undertaken by Lion

Procurement of Raw Materials,
Packages and Containers

Sustainability Material Issues

・Promoting Diversity
・Promoting a Work-Life Balance
・Developing Human Resources
・Reinforcement of Health and Productivity Management

Opportunities

・Pursuing Customer Trust and Satisfaction
・Creating Healthy Living Habits

・Promoting Environmental Initiatives for a Sustainable Planet
・Respecting Human Rights

Risks

・Enhancing the Occupational Safety Management System

・Building Responsible Supply Chain Management
・Promoting Risk Management
・Embedding Compliance・Enhancing Group GovernanceBus i ne s s P a rtne rs

Key
Stakeholders

Employees
Shareholders
Local

21

Lion Sustainability Report 2018

Steps for identifying Sustainability Material Issues
Step1

Identify social issues
Organizational
Governance

39 social issues were identified based on ISO
26000, the SDGs, the GRI Standard and the ten
principles of the UN Global Compact.

Step

Approach to identify our Sustainability Material Issues
Extremely
high2Consider their degrees of impact on society and businesses
The issues identified in Step 1 were done
important evaluation from the perspective ofdegrees of impact on society and businesses
respectively, and reviews were conducted byrelated departments, the director in charge ofsustainability, and the Board of Directors.

Human Rights

Degree of impact on society

Lion’s2020
Sustainability
Material Issues
Step

3

High

Degree of impact on businesses

Extremelyhigh

Investigate validity of material issues
The validity of each item was investigated while
incorporating the viewpoints of third-party institutions, and reviews were conducted as necessary.

Step

4

Use by Consumers

Obtain approval from the Executive Committee and Board of Directors

Labor Practices

High

2017
Highlights

We have identified our 2020 Sustainability MaterialIssues through the steps indicated to the right andhave classified them into risks and opportunities
with careful consideration for the entire supply
chain and stakeholders. We have also defined the
directions for initiatives to be executed in responseto each issues and have set targets and KPI.

L i o n’s
Sustainability“LIVE Plan” Medium-term Management Plan (2018 - 2020)

The identified 2 0 2 0 Sustainability MaterialIssues were approved by the Executive
Committee and Board of Directors.

Disposal by Consumers
The Environment
Fair Operating
Practices
ConsumerIssuesCustomers
Community
Involvement andDevelopment

and Investors
Communities
Lion Sustainability Report 201822

Lion’s Sustainability

2020 Sustainability Material Issues and Objectives
Core Subjects

E

The Environment

Human Rights

Sustainability Material Issues

1 Promoting Environmental●

Initiatives for a Sustainable
PlanetS

Build a Group system which respects humanrights.

3 Promoting Diversity●

Expand creative business activities through theapplication of diverse human resources.

4 Promoting a●

Create a uplifting feeling among employees
through work style reforms.

5 Developing Human●

Create personal dynamism by developing humanresources with diverse and abundant ideas whichenable to fulfill the expectations of global stakeholders.

6 Enhancing the Occupational●

Enhance and thoroughly enforce the Occupational Healthand Safety Management System across the entire Group.

Resources

Safety Management System

7 Reinforcement of Health and●Productivity Management

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement andDevelopment

G

Organizational
GovernanceWork together with consumers and local
communities actively to promote environmental
conservation activities, aiming harmonizationof a sustainable society and the developmentof our businesses.

2 Respecting Human Rights●

Work-Life Balance

Labor Practices

Directions for Initiatives toward the 2020 Objectives

8 Building Responsible●

Supply Chain Management

9 Pursuing Customer●

Trust and Satisfaction

10 Creating Healthy●

Living Habits

Build a Lion’s health management model,
which will be appropriate for an advanced
daily healthcare company.
Promote management with high effectiveness inthe supply chain.
Thoroughly promote corporate activities with a highlevel of credibility to customers across the entire Group,and further develop customer-oriented management.
Contribute to the creation of healthy living habits suchas oral health care, and cleanliness and hygiene practices
and habits, in order to extend healthy life expectancy ofall people and to ensure people’s everyday well-being.

11 Promoting Risk Management●

Enhance the risk management system forthe entire Group.

12 Embedding Compliance●

Enhance the effectiveness of complianceactivities across the entire Group.

13 Enhancing Group Governance●Engage in enhancing governance for theentire Group.

* Work styles to promote highly-concentrated work in order to improve productivity.
23

Lion Sustainability Report 2018

L i o n’s
Sustainability
2017
Highlights

2020 Objectives and KPI●Promotion of environmental business management●

Enhancement of initiatives for respecting human rights based on the Group philosophy●

Expansion of internal and external contacts for reporting and consultations

Organizational
Governance

Promote and achieve the “Eco Vision 2020” environmental objectives (Global)
Establish the “New Environmental Objectives 2030” to minimize environmental impacts over the entire life cycle of products,
including at the stage of their use in customer households (Global)
Promote appropriate use and management of chemical substances (Global)
Confirm and review the progress of environmental management through top environmental audits and the Environmental Action Promotion Committee (Domestic)

Formulate human rights policies for all Lion companies (Global)
100% recognition rate for the “AL Heart Hotline” (Domestic)●

Human Rights

Promotion of activity by women at the management level
Develop female employees to drive the next generation of management (Global)
20% proportion of female employees at the management level (Domestic)●

Realization of smart work* to harmonize productive work and personal lives
Implement employee awareness and behavior surveys (Domestic)
70% usage rate of annual paid leave (Domestic)

Arrangement of human resources development systems to successfully cultivate
personnel who can learn and act independently●

Thorough enforcement of occupational safety and the safety of facilities

Labor Practices●

0 serious accident and 0 serious incident (Global)●

Expansion of support programs to aid employees in forming health care habits●

The Environment

100% rate of receiving health checkups (Domestic)
100% rate of receiving dental checkups (Domestic)
100% rate of receiving examinations for cancer classified by age (Domestic)

Build more advanced and sustainable supply chains
Implement supplier sustainability self-checks related to procurement (Global)
100% implementation rate of supplier sustainability self-checks related to procurement (Domestic)

Enhancement of reliability assurance systems covering the entire supply chain●

Improvement of customer satisfaction through enhancement of customer support quality●

Enhancemnet of security system through system construction and supervisory management enhancement

Fair Operating
Practices●

Implementation of activities to establish health care habits such as preventive dentistry and hand washing, incoordination with business activities● Contribution to the resolution of social issues based on co-existence with communities, involvement by employees,
and enhancement of partnerships●

Promotion of comprehensive and extensive risk management across the entire Group●

Construction of a compliance management system

ConsumerIssues●Expand familiarity with the Lion Group Charter for Corporate Behavior and the Behavioral Guidelines (Global)
100% rate of participation in compliance-related training (Domestic)
Community
Involvement andDevelopment●

Arrangement of a Group Governance System in accordance with the Basic Policy for Corporate Governance

Lion Sustainability Report 2018

24

2017
Highlight

1

Preventive
Dentistry fromAge 0

GOOD HEALTH
AND WELL-BEING

Background
Preventive Dentistry is at the Heart of Lion
Recent studies show that oral health not only affects theLion has been a long-standing advocate of preventive

mouth but also the whole body, with an impact on a wide

dentistry aiming to support people’s healthy living. We

array of conditions such as diabetes, heart diseases andactively promote this concept through product development

dementia. It has also been revealed that without having

and awareness-raising activities in partnership withenough remaining teeth, it becomes difficult to enjoy talking

governments and dental clinics.

or eating, which impacts the quality of life (QOL). In otherIn 2017, we started promoting “preventive dentistry fromwords, maintaining oral health can extend the healthy life

age 0” to embed preventive dentistry habits at the earliest

expectancy - the number of years a person can expect to live

age possible.

in good mental and physical health.
Figure 1: Lion’s concept of preventive dentistrySelf-care==

Professional careare"Preventive dentistry" is the idea that
we should focus not on treatment aftergetting a cavity and periodontal disease,but on prevention before it happens. It is
important to maintain both professional careby dentists and daily self-care.

Dental care in which
Guidance on tooth Periodical checkups D
peopledo by thempbrushing and prevennselves
what they aresetative treatment at
taughtbydental spedental clinics, etc.
cialists

Issues Regarding Children’s Tooth Brushing
Baby teeth typically start emerging at about 8 months after
birth, and permanent teeth start replacing them when the

Figure 2: Tooth brushing habits among children under 5of the mouth of a child changes considerably as the childChildren under 5 habitually brushing
their teeth by their own.

grows. In order to protect children’s teeth, it is important(Lion survey: mothers with children under 5, n=600)

child is around 6 years old. During these years, the insidethat children are taught the correct ways of tooth brushingat different stages of dental development, with the parents
showing them how. It is also important that children
acquire the habit of tooth brushing by their own as early as
possible.
However, surveys on children’s oral hygiene habits haveshown that as many as 39% of children under 5 do nothabitually brush their teeth by their own. (Figure 2).

Habit notformed:39%

About 40% of children under 5 do
not have the habit of brushing theirown teeth* “Habit” means the child brushes his/her teeth every day by him/herself

25

Lion Sustainability Report 2018

L i o n’s
Sustainability

There are many possible reasons for the low figure, but webelieve there are two main factors.
The first is that oral hygiene maintenance is not an

2017Highlights

enjoyable time for parents nor children in the first place.
Children are not used to having a brush inserted in theirmouth and find it uncomfortable. Parents, who often haveto chase resisting children and almost force tooth brushingon them, feel stressed by the experience. The parent’s faceunconsciously shows anger as they brush the child’s teeth, andOrganizational
Governancein a vicious circle, this makes the child dislike tooth brushingeven more.
The second factor is that parents often brush their children’s
teeth for them. In order to embed the habit of brushing theirteeth by themselves , it is important that children are taught

Figure 3: W orry about injury during child’s toothbrushing

Children under 5 habitually brushing
theirtheteeth
bytheirthemselves
own. during
are worried aboutchildreninjuring

Worry about injury duringchild’s tooth brushing(Lion survey: mothers with children under 5, n=600)
tooth brushing(Figure 3) and instead brush the children’s(Lion survey: mothers with children under 5, n=600)

Human Rights

to do so at the earliest age possible. However, many parents

teeth for them. Based on these findings, we concluded that,in order to embed the habit of
tooth brushingHabit
not in children, weWorried:should focus more on safety informed:
product development.

36%

39%

We want to allay parents’ fears and turn tooth brushinginto a fun, happy time to share from a stressful time — we areLabor Practices

approaching this challenge both from product development
About 40% of children under 5 do

and communication angles. not have the habit of brushing theirown teeth

The Environment

Lion’s Approach
Product Development:
Safety Handle for Realizing Preventive Dentistry from Age 0
running around with the toothbrush in their mouth and thebrush hitting the inside or outside of the mouth when they
trip and fall. To prevent this, we aimed to develop a toothbrush effective to clean teeth, but also is safe even when the

act
s imp
Les
outh in a
m
fall
the
on

Fair Operating
Practices

Injuries during tooth brushing are typically caused by children

Bend-Not-Break

Safety Handle

child falls.
What we have come up with is the Bend-Not-Break Safety
ConsumerIssuesHandle - a toothbrush handle that bends sideways. Even when
the child falls with the toothbrush in the mouth, the brush
bends inside the mouth to lessen the impact. Its structure isdesigned to bend only sideways and not lengthways, so it
does not compromise the cleaning performance of the brush.
We have introduced this safety handle in our CLINICA Kid’s

Community
Involvement andDevelopment

Toothbrush models in a total product renewal. (CLNICA
Kid’s Toothbrush for 0 to 2 years old and 3-5 years old)Lion Sustainability Report 201826

Communication:
Adding New Value to Parent-and-Child Tooth Brushing Time
Tooth brushing is often a stressful time for parents and- being praised by the parent for brushing teeth boosts

children, but we believe it can be turned into a precious

their confidence; the use of hands and fingers aids thetime for parent-and-child bonding. For parents and children,

development of motor function. It is also an opportunity for

tooth brushing is not just about cleaning teeth. For children,communication between the parent and the child. We are

the time spent with their parents while brushing teeth isspreading this message in a variety of ways to reach a wide

also important for their mental and physical development

audience.

A movie showing an effectiveness of understanding empathy●

We developed a movie about Parent-and-Child Toothbrushing time can be an opportunity to build up parent-

Brushing Time, sharing problems and honest feelings parents

and-child communication if both enjoy brushing teeth

have, which we believe many parents can recognize an

together. It shows a new value tooth brushing can provide.

influence of empathy. In this movie, we show that toothA movie showing an effectiveness of understanding empathy:
URL http://clinica.lion.co.jp/hahahapark/douga/egao (Japanese)

Parents and children together - guidebook for “preventive dentistry from age 0”●

In order to protect children’s teeth, it is important that

units at hospitals across the country. This step-by-step guideparents have the correct knowledge and habits themselves.

to preventive dentistry teaches the correct way to brushWe distributed the “Guidebook for preventive dentistrychildren’s teeth according to different stages of dental

from age 0” to consumers at dental clinics and maternity

development.

Preventive dentistry step by step
27

Lion Sustainability Report 2018

L i o n’s
Sustainability●

Website “HA! HA! HA! Park”

We have launched “HA! HA! HA! Park,” a website to support
preventive dentistry for children with ideas to make toothbrushing a more enjoyable time for parents and children.

2017
Highlights

Here, parents and children can learn how to brush teeth
correctly through quizzes and movies. We have also prepareda movie “Tooth brushing song for parents and children” withspecial sound effects to keep children’s attention.

Organizational
Governance

HA! HA! HA! Park:
URL http://clinica.lion.co.jp/hahahapark/ (Japanese)●

Every employee is an ambassador for communicating “preventive dentistry from age 0”
Human Rights

In order to spread the message of “preventive dentistry from age 0” to the wider society,
Lion believes that it is important that every employee understands the concept. In 2017,an internal preventive dentistry learning sessions across the company was held, to foster
employees to become preventive dentistry practitioners themselves. Employees alsofriends and acquaintances who have children in order to spread the message about theimportance of “preventive dentistry from age 0.” Around 10,000 sets were distributed in
total.

Labor Practices

The
Introductory
Preventive
Dentistry Set
for Parents
and Children

handed out the Introductory Preventive Dentistry Set for Parents and Children to theirPreventive dentistry from age 0: Lion’s objective
Daily oral care is an important habit that needs to be acquiredcare in all stages of life from birth through adulthood to laterat an early age as it can have an impact on health throughout

years.

health and extend healthy life expectancy through oral health

We will continue our advocacy on preventive dentistry as acompany-wide mission.

The Environment

life. Lion is delighted to contribute to people’s whole-bodyoice

Our Employee’s V

Fair Operating
Practices

Tomohiro Aoki, Oral Care Business Department
My job is to develop the CLINICA Kid’s Toothbrush series products and communication. In the 2017 re-launch of
the series, our work was supported not only by our internal team members, but also external partners, such as
dental specialists, from product development to post-launch promotion. For example, in the development
phase, our consulting dentist gave us a lot of advice on the prototypes and helped us conduct clinical tests withchildren. In the promotion phase, their support included providing comments about the importance ofConsumerIssues“preventive dentistry from age 0” and making a joint presentation at the Japanese Society of Pediatric
Dentistry Conference. We also received many positive comments from distributors, who were kindly happy toplace our promotional tools on their premises to provide information that allays consumers’ fears.
These collaborative efforts of the manufacturer, distributors and academia to promote “preventive dentistryfrom age 0” have resulted in positive response; comments we have received include: “my children brush theirteeth without being told now” and “now I say ‘very good, well done’ to my child at tooth brushing time.”
These comments show that our mission is helping many families turn tooth brushing time into a chance for parents and children to enjoy

Community
Involvement andDevelopment

bonding and communication. The contribution of the CLINICA Kid’s Toothbrush series of products to society has also been recognized, and wehave won the Kids Design Award and Japan Mothers Selection Award.
We will continue to do our best to promote “preventive dentistry from age 0” and the concept of tooth brushing as a fun habit for parents
and children to share, and to contribute to the healthy growth of children.

Lion Sustainability Report 2018

28

2017
Highlight

2

Our OpenInnovation WorkPARTNERSHIPSFOR THE GOALS

Background
Lion’s Open Innovation
Our society and way of life are changing rapidly as we facevalue to our customers. The key to this is open innovation

increasingly serious societal issues such as low birth rates,

through partnerships with external organizations such as thean aging population and depletion of resources on the one

government and companies in the public and private sector.

hand and dramatic progress in technologies such as AI andAn example of this is the joint research we are conducting

IoT on the other. In order to keep up with these changes andunder the Center of Innovation Science and Technology based

continue supporting the public’s health we are focusing

Radical Innovation and Entrepreneurship Program, known as

not just on providing goods but also on offering new

COI STREAM.

COI STREAM
The Center of Innovation (COI) program is one of programs under the Center of
Innovation Science and Technology based Radical Innovation and Entrepreneurship
Program (COI STREAM) launched in 2013 by the Ministry of Education, Culture,
Sports, Science and Technology (MEXT). Focusing on facilitating breakthroughinnovations for the next decade, COI is aiming to realize radical innovation which
is difficult to be accomplished by industry or academia alone, but also to establish
innovation platforms in Japan.
COI at 18 locations* across the country are driving industry-academia collaborative
research. Lion has been participating in a collaborative team with Hirosaki University,where one of the COI has been hosted, since 2015.

* As of February 2018

Hirosaki University COI Program
The Hirosaki University COI is an innovative social platform

currently running a large-scale health examination program

for the creation of “sukoyaka-ryoku,” meaning the ability

for the residents of the Iwaki district in the city of Hirosaki.

to maintain health. It focuses on the research, development

Around 1,000 residents take part in the Iwaki health exam

and commercialization of solutions that uses health-related

each year, and this exam has accumulated big data on

big data to detect early signs of conditions such as dementia

health of more than 20,000 individuals in total, comprisingand other lifestyle-related diseases with the aim to prevent

approximately 2,000 data points. The Hirosaki University

their onset. One of the primary motivators of this platform

COI project uses these health data sets as the basis of theirinitiative is the fact that Aomori Prefecture, in which Hirosaki

research, development and commercialization of unique

University is located, has the lowest life expectancy in Japan.

health innovations that can only come from big data insights

Aomori Prefecture has an aging population and higher risks

from short-life expectancy regions. As a participant in thisof age-related disease and lifestyle-related diseases than the

program, Lion is engaged mainly in the research of oral healthnorm. For many years, the average life expectancy in Aomori

and sleep. We are aiming to establish correlation by seeing

has been the lowest of all prefectures both for men andhow these two factors have an influence on lifestyle habits,

women.

the physical constitution and whole body health. We effort toHirosaki University has set the goal of reversing Aomori’s
reputation as the short-life expectancy prefecture and is29

Lion Sustainability Report 2018

develop and promote solutions that help to extend healthy
life expectancy.

L i o n’s
Sustainability

Lion’s Approach
Designing a Dental Check-up System
As part of the Hirosaki University COI program, a new healthlifestyle changes in conditions such as metabolic syndrome,

2017
Highlights

check-up system that promotes health consciousness andDental Check-up system designed by Lion

locomotive syndrome, dental/oral conditions, clinicaldepression and dementia is under development. Lion is

Medical questionnaire

Intraoral camera

responsible for the dental/oral part of the health check-up
which consists of a Salivary Multi Test system (SMT) developed
Organizational
Governanceoriginally by Lion, an intraoral camera that lets the examinees
look at the state of their own teeth and gums, and a medical
questionnaire to assess changes in the examinees’ awarenessand behavior. The SMT uses an intraoral camera that lets theexaminees look at the state of their own teeth and gums, andSalivary Multi Test (SMT)a medical questionnaire to assess changes in the examinees’

Human Rights

awareness and behavior.
Currently, many companies and local authorities omit
dental checkup from their health check-up programs due totime constraints, cost or availability of dental clinicians. Lion
aims to realize a reliable and easy to use dental check-up
system, and turn them more convenient in the future.

Labor Practices

What is a Salivary Multi Test system (SMT)?
SMT is a salivary test system that can measure multiple saliva
indicators related to dental and gingival health and oral
cleanliness in just five minutes.

Oral Healthcare Studies Course Opened at Hirosaki University
oral care may prevent lifestyle-related diseases. Offered in

Hirosaki University Graduate School of Medicine for research

partnership with the Aomori Medical Association and theinto the relationship between oral health and sleep and

Aomori Dental Association, this course searches for scientific

the health of the whole body. In recent years, it has been

evidence of these links, and aims to create products andsuggested that the intraoral condition and the quality ofservices based on these research outcomes.

The Environment

Lion is funding a new Oral Healthcare Studies course at

sleep may affect the health of the whole body, and that good
Fair Operating
Practicesoice

Our Employee’s V

Tatsuyuki Midorikawa, Research and Development Headquarters, Pharmaceutical Research Laboratories
I started a two-year residency at Hirosaki University from April 2016. My job is to analyze big data
ConsumerIssueson health for lifestyle habits and physical constitutional factors that can cause sleep disorders, andto establish the relationship between sleep and health. During my residency, I also visited
Imabetsu, Mutsu and other areas in Aomori prefecture to take part in health awareness activities
to raise health literacy* in communities, workplaces and schools. I have been inspired by thepassion and commitment of the faculty, local residents, partner companies and local government
working together on this unprecedented open innovation. They are driven by the belief that
good health cannot be achieved without changing the way society works. I feel privileged to be atCommunity
Involvement andDevelopment

the forefront of this creative endeavor at the Hirosaki University COI Program to head in a new
direction for the healthcare industry. I hope that the data analysis work I carry out will lead to theintroduction of a new healthcare business that benefits society.
* Having correct health knowledge and understanding how to put it into practiceLion Sustainability Report 2018

30

2017
Highlight

Biodiversity
Conservation
Activities at Lion
Domestic Sites

3

LIFE BELOW
WATER

LIFE ON
LAND

Lion’s Approach to Biodiversity Conservation
All living creatures are connected with each other through achemical emissions and discharges from plants and offices andcomplex web of interactions that form balanced ecosystems.

greenhouse gasses from our business activities; as well as the

Humans are also part of ecosystems, and our daily life anduse of products and disposal of packaging by our customers.

business activities benefit from the biodiversity of thesesystems.

Lion provides various products aiming to help people’s daily
life, appreciating the blessings of nature. Thus, Lion considers

Lion acknowledges that it has an impact on biodiversitythat it is important that to protect biodiversity for the future

at different stages of the supply chain, either directly or

generations, and implement various biodiversity initiatives atindirectly. These include plant construction and other forms

different stages of our supply chain.

Related Information p.47

of land use; procurement of materials such as natural oils;

Initiatives at different stages of supply chain

Procurementof rawmaterials
Sustainableprocurement ofpalm oils
Sustainableprocurement of
paper and pulp

Production

Reduction ofwater use
Management of waste
water discharges

Transportation

Modal shift offreight transport
to rail and ship

Developmentof water-saving
products
Developmentof highly
biodegradable
detergents

Reduction of waste
Management ofchemical substances
Transportation

Reducing our
impact on theecosystems ofagriculturallands and forests

Use byconsumers

Disposal by
consumers
Promotion of 3Rs(Making products
refillable, morecompact, andusing recycledmaterials, etc.)

Reducing our impact on the ecosystems of rivers,
lakes, oceans, forests, soil and wetlands

We have been making various efforts to reduce our burden

and sustainable use of natural resources must suit theon the environment and minimize our impact on biodiversity

characteristics of each area. Recently, we have put more focus

in order to ensure we can continue benefiting from nature inon the areas where our plants and offices are located not onlya sustainable way.

to proactively conserve biodiversity but also to regenerate

The natural environment is varied and unique in different
areas, and we believe that biodiversity conservation

31

Lion Sustainability Report 2018

and restore it.

(including offices) by 2020. With this target, we aim to get

conservation through business activities is to raise theevery employee to participate in biodiversity conservation

awareness of individual employees. As part of our Eco

activities. Each site has defined its own theme that reflects

Vision 2020 environmental objectives, we aim to carry out

the issue of its local area and is running ongoing activities inbiodiversity conservation activities at all domestic sites

partnership with the local community.

2017
Highlights

We believe that the important first step in biodiversity

L i o n’s
Sustainability

Biodiversity Conservation Activities at Plants and Offices – Raising Employees’ AwarenessEco Vision 2020 environmental objectives (launched in 2013)●

Reduce greenhouse gas emissions

Realizing a soundmaterial-cycle society
Reduce water use
Recycle factory
waste water discharge● Achieve zero emissions●●

Harmonizing with nature
Biodiversity
conservation activities(site-based activities,
CSR procurement)●

Raising awareness

Organizational
GovernanceRealizing a low
carbon society● Raise awareness andeducation in society

Human Rights

TargetCarry out biodiversity conservation activity
at all domestic sites (including offices) by 2020

Based on the Ministry of Environment “Guidelines for Private Sector Engagement in Biodiversity,” we define the following four key
principles for site-based biodiversity conservation activities.

Labor Practices

Basic Principles of Site-Based Biodiversity Conservation Activities

Principle of prevention

Long-term vision
Have a long-term perspective
to ensure that the activities
can be maintained as along-term commitment

Flexible management
Monitor continually to understandthe impact on the naturalenvironment and local communities
and adjust the plan flexibly

Fair Operating
Practices

Take actions to avoid or
minimiz our impact on thenatural environment or
local communities

The Environment

Avoid/minimize impact

Understand risks threatening
biodiversity and takepreventative actions to sustainably
harmonize with nature.

Supervisors: Ecology Path Inc.
Fumiaki Nagaishi
Tetsuya Kitazawa

The next pages (p 33–34) present details of the biodiversity conservation activities that are taking place at Lion’s different sites.
We select activities based on the following considerations:
ConsumerIssuesLion Sustainability Report 2018

Community
Involvement andDevelopment· Providing a wildlife-friendly environment in rivers, lakes and seas that are connected to our plants either as the source ofwater or outlet for discharges· Providing habitats for creatures that are disappearing, or breeding them under protection with the aim to later return themto their natural habitats· Replicating natural habitats lost in the area on the site’s grounds and maintaining them as a biotope· Maintaining forests, conducting regular assessment of wild life living there and using forests as a place for biodiversity
education· Working in partnership with other stakeholders such as local residents, external organizations and local authorities

32

Biodiversity
Activities at Lion’s
Domestic Sites
Akashi, Hyogo Prefecture

Sakai, Osaka Prefecture

Akashi Plant●●

Creation of hackberry biotope(Protection of the Japanese emperor butterfly)

Osaka Plant

Conservation ofloggerhead sea turtles

Takahisa Yamazaki
We are now in the eighth year of ourloggerhead sea turtle conservation work, whichstarted in 2010. After much trial and error withdifferent fencing materials, we finallysucceeded in keeping the feeding damage by
raccoon dogs to zero in 2016 with the current
metal fencing. We will continue with our work
preventing from feeding disruption and beachcleaning to keep the area safe for egg-laying
turtles so that hatchlings can safely reach thesea and return to lay eggs.

Kyoichi Isobe
We joined ‘Ecowing Akashi’ in 2013 and have since been
helping to implement the Akashi City Environmental
Master Plan while working on the creation of a hackberry
biotope on the grounds of the Akashi Plant to protect
and increase species native to the local farmlands andforests. We raise caterpillars of Japanese emperor
butterflies donated by the municipal Tamba-no-moriPark. Adult butterflies are also released to the sawtoothoak forest in Tamba-no-mori Park as part of theirbutterfly release event.

Osaka, Osaka Prefecture●

Support for Protection of Japanese wisteria
The original Japanese wisteria, from which many
cultivars are derived, is said to come from the
Fukushima District of the City of Osaka, where theLion Osaka Office was located until 2017. As part ofits biodiversity awareness-raising activities, the Osaka
Office supports the Osaka Fukushima Lions Club in
its work to protect and raise native Japanesewisteria, which had almost disappeared.

Yokkaichi, Mie Prefecture●

Osaka Office

Lion Specialty Chemicals Co., Ltd. Yokkaichi Plant

Conservation of Yoshizaki Beach
Sakaide, Kagawa Prefecture(Removal of non-native species andbeach cleaning)●

Lion Chemical Co., Ltd. Oleochemical Plant

Creation of a dragonfly biotope(Breeding of the endangered
the maiko red dragonfly)

Eiji Goto
Since 2015, we have been taking part in the cleaningand non-native species removal activities that are held at
Yoshizaki Beach in Yokkaichi every first Sunday of themonth, as an event that is organized by a local
non-profit organization. The participation rate of theplant’s employees has been rising each year. We areaiming for 100% participation of the plant employees in
the ongoing effort to protect the beach and keep thepale pink flowers of sea bindweed flourishing here.

External
Certifications
Lion’ s biodiversity
conservation activities
ar e h i g h l y p r a i s e doutside the company.

33

Lion Sustainability Report 2018

Koji Kawai

In 2012, we created a dragonfly pond on the
grounds of the Plant to protect the maiko red
dragonfly a rare and endangered species native to
Kagawa Prefecture. In 2015, we confirmedsightings of the maiko red dragonflies as well as
their egg laying behavior in green spaces aroundthe dragonfly pond, which means that we havesucceeded in attracting the species and creating an
ecosystem. We hope that, in addition to conserving
the maiko red dragonfly ecosystem we can attract
as many dragonfly species as possible. Other than our ecosystem conservation work, we arealso expanding our dragonfly pond nature watch events to invite children from across theprefecture so that we can teach them about the importance of nature and ecosystems.

● Creation of dragonfly biotope by Lion

Chemical Co., Ltd. Oleochemical Plant
Japan Greener
Research andDevelopment
Center Chairman’s
Award(November 2016)● Conservation of loggerhead sea tur tles

by Osaka Plant

Biodiversity
Action Awards 2017:(December 2017)

●L i o n’s
Sustainability

Yabuki, Fukushima Prefecture

Kamisu, Ibaraki Prefecture

Lion Packaging Co., Ltd. Fukushima Plant●

Restoration of Kashimanada
coastal pine forest

2017
Highlights

Management of satoyama“Yasuragi no Satoyama Fukunoshima”

Lion Chemical Co., Ltd. Fine Chemical Plant

Yoko
Marumoto

We started environmental management of the satoyama (domestic woodland)
located at the north of the plant in 2013 and started growing pasque flower. The
main activities include satoyama restoration, installation of signboards, and a staff
photography contest. The satoyama was named “Yasuragi no Satoyama
Fukunoshima” in the employees’ vote. We will continue working together to sendout information about the satoyama and maintain its three areas (a relaxation
area for employees, a protected area and a virgin forest area) in order to cultivate
an environment where humans and wildlife can live and thrive side by side.

●

We take part in the “White Sand, Green Pines” project, whichaims to restore the seashore ecosystem of the Kashimanada Coastthrough beach conservation and the restoration of protected pine
forests. Every employee has planted a pine seed by the chemicalplant and is growing the seedling. With the seedling labeled with
their own name, they get a sense of ownership as they look after
their own seedling. After two years, the trees will be replanted
along the Kashimanada Coast.

Human Rights

Nagoya, Aichi Prefecture

Organizational
Governance

Akemi
Miyamoto

Ichihara, Chiba Prefecture

Nagoya Office●

Support for Hime-Botaru Firefly conservation
activities at Nagoya Castle Moat

TomomiShinozaki
The employees at the plant have hand-built a biotope on the groundsof the plant, and named it Leotope. We now see many plants andcreatures that live near the water there. In early summer, the ancient
Oga lotus flowers bloom. In fall, the paddy field created in the biotope
turns gold with rice panicles to the delight of visitors to the plant.

The Environment

We have been supporting the conservation work of the The Guardian
Successors of Nagoya Castle group since 2014 to protect theHime-Botaru Firefly living around the lion statue by the outer moat of
Nagoya Castle. We take part in various activities with the group, such asarea cleaning, firefly viewing evenings, lectures and pamphletproduction, as part of the Hime-Botaru Firefly conservation work.

Management of “Leotope” satoyama biotope

Labor Practices

Sanae
AmaikeChiba Plant

Odawara, Kanagawa Prefecture●

Odawara Plant
Fair Operating
Practices

Breeding of Japanese killfish and firefliesin Sakawa River basin

Osamu Tatsumi
Katsumi Nagashima
Etsuko Wada

International Sea Turtle Society
President's Award(Joint winner as “Team Minabe”＊ )(February 2018)
Community
Involvement andDevelopment

Contest for Activities
on Biodiversity
Special Award,
the Judging Committee(December 2017)

ConsumerIssues

We take part in the scheme for fostering the endangered Japanese
killfishfish of the Sakawa River basin. We raise the fish in the pond on
the grounds of the plant. Visitors to the plant can also view them. In
2017, we were able to return around 560 fish to the Odawara city
municipality.
We have also built a natural habitat for fireflies on the grounds of theplant and host firefly viewing evenings with local residents every year.

＊ Lion Osaka Plant, Kiyoshi Goto, Minabe Sea
Turtle Research Team and Youth Club Minabe

Lion Sustainability Report 201834

Organizational Governance
Basic Approach
Lion’s top priorities for corporate governance are

ensure compliance. By strengthening and enhancing

to increase management transparency, strengthen

its corporate governance systems, Lion aims tosupervisory functions, accelerate decision making andincrease its corporate value.

Corporate Governance System
At Lion, oversight of management is governed under board ofcorporate auditor’s system. In March 2004, Lion has adopted the
Executive Officer System and classified the functions that the Boardof Directors had previously carried out as follows:：the Board of
Directors is responsible for “decision making and oversight functionsof management” and the Executive Board of Directors for “businessexecution functions“.
The membership of the Board of Directors was reduced (currently
9, was 19 before the implementation of the Executive Officer
System) to ensure more substantial discussions and faster decision
making. A Nomination Advisory Committee and Compensation
Advisory Committee were established to increase managementtransparency and to further 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 oversight andmonitoring of management.
In addition, the Advisory Committee (former Management
Evaluation Committee) was set up in October 2003 to ensurethat the opinions and advice of outside experts are reflected inmanagement.

• Corporate Governance System (as of April 1, 2018)
Shareholder Meeting
Consultation
Monitoring

Auditing
Auditing
Opinions
and advice
on legalcompliance

Response

Reporting

AdviceDelegation

Reporting

Proposals
Reporting

Reporting
Auditing

Accounting Auditors

Response
Consultation[Report on Corporate Governance](Japanese)
URL http://www.lion.co.jp/ja/company/about/pdf/abo_gov.pdf
Auditing*CS/PL Committee
CS: Customer Satisfaction
PL: Product Liability
Corporate Ethics Committee
Lion Group Charter for Corporate Behavior; Behavioral Guidelines

Establishment of CSV Management Meetings
We have established CSV Management Meetings from January 2018 to promotemeasures for CSV which are aimed at achieving sustainable management. Our President
serves as Chairman for these meetings, where participants include Directors andExecutive Officers.
Through these CSV Management Meetings, we will formulate medium- to long-term
CSV strategies linked with the creation of both social values and business values while
deliberating material issues related to sustainability in our company, and will monitor the
status of their execution.
The content decided at CSV Management Meetings is discussed at Board of Directors
meetings and Executive Committee meetings if necessary, and reflected in the businessactivities of each business execution department.

35

Lion Sustainability Report 2018

Cross-departmental committee to promote quality
assurance activities. Shareholder Meeting

Board of Directors
Executive Committee
Discuss according to the case

CSV Management Meeting
Reflect content
of decisions

Business execution departmentsL i o n’s
Sustainability

Promoting Risk Management• Business Continuity Plan (BCP)

Organizational
Governance
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 a large
earthquake, spread of infectious disease (pandemic), or othercontingencies 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 wherea pandemic due to novel influenza viruses or other infectious
diseases are expected to occur, so as to respond to suchcontingencies. Whether BCP should be implemented or not
is determined depending on the size of the disaster and thedegree 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 serious impact on our business,
we update the countermeasures and report to the Executive
Committee annually.

2017
Highlights

In order to continue providing our customers with safe andreliable products, we have appointed an officer responsible
for comprehensive risk management of Groupwide risk.
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 physicalemergencies such as natural disasters and accidents arise, in
accordance with the Emergency Response System, we report
the relevant facts to the President and Corporate Auditors,
among others, and report status to the Executive Committee
and the Board of Directors.
Also, among the various risks that may arise while doing
business, the following five points are listed as the main
matters that may have a significant influence on investor's
judgment, in particular, and are disclosed in the Company’s
Securities Report.

1.Product quality evaluation 2.Fluctuation in raw material costs 3.Fluctuation in foreign exchange rates
4.Major lawsuits, etc.

5.Natural disasters (e.g. earthquakes)
Labor Practices

An arrangements of Internal Control Systems• Internal Audits[Securities Report] (Japanese)

Fair Operating
Practices

The Auditing Office implements audits on the operation
status of various business units in terms of their legality,
validity, efficiency, and risk management in order to establish
a foundation for healthy business activities. Audit results andthe status of improvements are reported to the President
after each time audit. The results at the corporate level aresummarized and reported to the Board of Directors twice ayear for PDCA management of audit work. Reports are also
provided to the Executive Committee, allowing information
to be shared with the business execution departments.

The Environment

Systems have been arranged to ensure the appropriatenessof the Lion Group’s operations in accordance with Japan’sCompanies Act and the Ordinance for Enforcement of theCompanies Act. With regard to “the systems for evaluating
and auditing internal control over financial reporting” asprescribed in Japan’s Financial Instruments and ExchangeAct, we have been establishing controls at the company-wideand business-process levels. Evaluations of internal control
effectiveness are carried out by the Auditing Office, which
reports findings to the President and corporate auditors,
as well as to the Board of Directors on a regular basis. As aresults of these evaluations, we have determined that Lion’s
internal control over financial reporting in 2017 was effective,
and submitted the Internal Control Report to the Prime
Minister together with our Securities Report in March 2018.

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

ConsumerIssuesUN Global Compact

Community
Involvement andDevelopment

The UN Global Compact (UNGC), in which Lion has participated since 2009, is a voluntary initiative ofcompanies 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 Sustainability Report 201836

Organizational Governance

Embedding Compliance• Compliance Awareness Survey
All domestic employees of Lion Group are asked annuallyto complete a compliance awareness survey. In 2017, thesurvey was conducted for the fourteenth time. The findings
are reported to management and feedback is provided toindividual divisions. This contributes to the maintenance andstrengthening of the compliance systems.
Continuing from 2016, the pool of respondents in 2017
included part-time workers. The survey (approximately 97%of the 4,492 employees responded) solicited opinions on a
range of issues including problems with work environments.

Compliance Awareness Survey
Questionnaire survey in which respondents anonymously answer
about , such as compliance staus toward the Lion Group Charterfor Corporate Behavior, whether or not the previous results of theCompliance Awareness Survey were feeded back, and awarenessof the Heart Hotline.

• The System of the AL Heart Hotline
Consulter/Informer(employees of the Lion Group, temporary staff, or external business partners)

Seeking solutions/Resolving Problems

The Corporate Ethics Committee, chaired by the Director
Responsible for Corporate Ethics, proactively works to foster
compliance awareness within the Lion Group. The basis
for compliance is the “Lion Group Charter for Corporate
Behavior” (p.3). This is distributed in pamphlet form to
all employees and is publicly available via Lion’s website.
According to an annual program, e-learning and othereducations are periodically provided.
In 2017, in addition to reading through and committing to
the Lion Group Charter for Corporate Behavior, our e-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.

Consultations
and Notifications

Consultations
and Notifications
Report contentsof consultation/
notification

Feedback

Internal Contact

External Contact(general manager specializedin corporate ethics)(lawyer)

Report results ofinvestigation andcountermeasures

Instruction

Reporting

Feedback

Director Responsible
for Corporate Ethics

Board ofDirectors

Report asneededCorporate Ethics
Committee
Set up as needed

The Ethics Evaluation Committee(consisting of external experts)• AL Heart Hotline Consultations andNotifications (2017)
Power harassment behaviors

9 cases

Personnel/labor management issues

5 cases

Others4 cases• Percentage of Employees Who
Received Survey Feedback
0

20

40

60

80

100
（％）

• Raising Awareness of the Hotline
We have set up the AL(ALL Lion) Heart Hotline in order toensure full communication with all domestic employees
including our temporary staff. Its recognition rate among
employees in 2017 was 98%.
In 2017, there were eighteen instances of consultation orreports, but no cases to be judged as serious misconduct, andall the cases were appropriately addressed and resolved.

2015

94.7％

5.1％ 0.2％

2016

95.7％

4.1％ 0.2％

2017

96.1％

3.8％ 0.1％(Year)

Feedback
received

Not
No
received response[AL Heart Hotline] (Japanese)
URL http://www.lion.co.jp/ja/company/compliance/index.php

Introduction of websites

Initiatives for Compliance in Overseas Group Companies

Sustainability Management(Japanese)

Aiming to embed compliance throughout the entire group, ouroverseas group companies are also promoting initiatives toward
compliance. In addition to familiarizing employees with the LionGroup Charter for Corporate Behavior through offices, employee
handbooks and the intranet, we are introducing a part of overseas
initiatives (such as strengthening anti-corruption measures) on thewebsite.

http://www.lion.co.jp/ja/csr/management/[Embedding Compliance](Japanese)
URL http://www.lion.co.jp/ja/csr/management/compliance/

37

Lion Sustainability Report 2018

L i o n’s
Sustainability

Human Rights
Basic Approachrights” and “observe both the spirit as well as

opportunities, fair treatment of employees, andthe letter of all applicable laws and international

human rights of suppliers. In 2009, we declared ourrules” in the Lion Group Charter for Corporate

intention to support the ten principles of the United

Behavior.” Moreover, the “Behavioral Guidelines”

Nations Global Compact.

Organizational
Governancecompulsory labor, promotion of equal employment

2017
Highlights

Lion has stipulated that we shall “respect humanrefers to the prohibition of child labor and forced orDisseminating Human Rights Policy
via e-learning or documents to gain a deeper understanding
and commitment to the Charter on an annual basis.
Additionally, we conduct a questionnaire survey every year to
confirm the extent to which the Charter has been adopted.

Introduction of websites[Respect for human rights] (Japanese)
URL http://www.lion.co.jp/ja/csr/humanrights/duediligence/

The Environment

We are enhancing our systems for reporting,correcting and following-up and thoroughly
understanding the impact of our activities on humanrights from the procurement of raw materials to theuse of products by consumers.

Labor Practices

Ensuring Human Rights Due Diligence• An Overview of Our Initiatives for Protecting Human Rights

Business Partners

Major Initiatives
Undertaken by Lion

Use by Consumers

Customers•Establishment of the Hotline
Related information p.37

•Establishment of the Hotline

Palm oil farms

Subjects for Clinical Trials•Consideration for “vulnerable
users” such as the elderly andchildren, by preparing a“labeling manual”•Participation in RSPO
activities•Continuation of thepurchasing of RSPO certified
palm oil derivatives
Related information p.50

•Widespread promotion of “Harassment Prevention
Declarations” among employees•Confirmation of recruitment, evaluation, and remuneration at each point in time
•Execution of human rights education•Creation of an environment in which discrimination on thebasis of religion, race and other factors is curbed
Related information p.37

•Aggressive pursuit of safety andfunctionality by using our own“product management system”
Related information p.51-53

ConsumerIssues•Respecting the Helsinki Declaration•Operation of the Regulations for the Implementation of Clinical Trials in orderto 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 withRelated information p.43
laws and regulations

Community
Involvement andDevelopment

Main Objectives and efforts

Employees•Efforts based on the
Procurement Principles andthe Lion Group Supplier CSR
Guidelines
Related information p.49-50

Fair Operating
Practices

Procurement of Raw
Materials, Packages,
and Containers

Human Rights

Lion has stated its policies regarding respect for human rights
in the “Lion Group Charter for Corporate Behavior” and“Behavioral Guidelines” based thereon. To ensure thoroughcommunication of the Charter to directors, Lion Group
employees, and temporary staff, we provide an opportunity•Implementation of environmental assessment ahead of construction of new plants

Lion Sustainability Report 201838

Labor Practices
Basic Approach
In the Lion Group Charter for Corporate Behavior,balance and strive to maintain work environments

Lion calls for “fair treatment respecting the diversity,that flexibly allow a variety of working styles,”individuality and personalities of our employees”“do our utmost to assist employees who strive toand “ensuring a safe and comfortable workplacelearn specialized skills and knowledge and aim

to realize the mental and physical well-being offor ambitious goals.” and “engage sincerely in

our employees.” Also included in the Behavioral

dialog and discussion with employees and their

Guidelines are “to promote a healthy work-life

representatives.”

Promoting Amicable Labor-Management Relations
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 by realizing
the social mission and responsibilities of the company andits workers’ union, and working together to achieve growthof 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 labormanagement meetings on a regular basis to consult with eachother on an equal footing.
Operating under a union shop agreement, Lion has
endeavored to build amicable labor-management relations,in which employees and management proactively conduct
activities such as reporting on business conditions andexchanging opinions about the working environment atlabor-management meetings.
In overseas group companies, efforts are also made tobuild and sustain sound labor-management relations,developing better working environments through proactive
communications between employees and managementin the meetings of the Lion workers’ union and the labormanagement council.

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.

Human Resource Development• Improving Training Systems for Each Function• LION CHALLENGE CUP - Innovation

In training for each function, measures to reinforce specialties
in each business are offered. In the marketing division,
the “Marketing Study Program” has been offered since2014. To date, employees who show high performance intheir respective divisions were appointed as staff of themarketing division. For further improvement, we havedesigned and operated a program to discover employees
who have capabilities in marketing and are enthusiastic
about continuing further efforts and learning. This programprovides systematic learning opportunities for mastering
practical marketing theories, as well as planning anddesigning based on consumer insight and on competitive
strategies. In addition to fostering marketing personnel linked
with career paths.

2017 was the third year of the “LION CHALLENGE CUP– Innovation,” in which employees can make a “dreaminspiring proposal for Lion” directly to the management. This
event aims to draw out “innovative proposals” leading tosignificant future growth of the entire company by increasing
employees’ awareness of personal development, andthoroughly by considering their further personal growth andchange. The contents of the proposals, which got through thepreliminary round, are presented to the management in the
final round.
In 2017, from amongst the 24 entries, one team wasawarded the gold prize, and two teams the bronze prize. The
proposals that won gold and silver prizes will be subject tofeasibility studies at their related divisions.

39

Lion Sustainability Report 2018

L i o n’s
Sustainability

Human Resource Diversity(Holding a Career Forum)

Labor Practices
The Environment[Declaration for the Promotion of Women’s Participation
and Advancement in the Workplace](Japanese)

Human Rights

Career Forums have been held annually since 2012 for the
purpose of assisting in the career development of young
employees, in order to provide support for designing
their future careers. In the past, the finance, legal affairs,
marketing, public relations, sustainability, sales, andinternational departments have introduced their business
operations.
In the 6th forum in 2017, award recipients spoke about
their experiences and views toward work based on the cases
which received employee awards within the company, giving
participants the opportunity to consider their own workduties and turn over a new leaf.

Lion is deeply aware that it is essential for women to work
actively in order to further strengthen our corporate value,and hence we have addressed measures to advance the active
participation of women in their working life.
In line with the “Act on Promotion of Women’s Participation and Advancement in the Workplace”, an act enacted by
the National Diet in 2016 to promote activities by women as apart of their working lives, Lion has improved childcare-related systems and implemented support measures for employees
to maintain a balance between work and childcare so thatthey can continue to work for a long time. Consequently, as
seen in Lion’s non-consolidated average service years for maleand female employees (including assigned employees), which
are respectively 20.4 years and 18.0 years, female employees
are working actively for long periods. We are also making
efforts to increase the percentage of female managerial officials* to 20% or higher in Japan by 2020. (The target has beenraised from the previous 15%.)“Lion’s Action Plans in accordance with the Act on
Promotion of Women’s Participation and Advancement in the
Workplace” and “Declaration of Women’s Participation andAdvancement in the Workplace” are available on the “Positive
Action (Women’s Promotion) Information Portal Site,” aproject commissioned by the Japanese Ministry of Health,Labour and Welfare.

Organizational
Governance• Offering Opportunities to Gain
Knowledge about Jobs in the
Company• Approach for the Promotion of
Women’s Participation andAdvancement in the Workplaces

2017
Highlights

Lion has made efforts toward promoting “human resource
diversity” in light of the need to swiftly respond to changes inthe business environment, and promoted plans and proposals
for personnel measures to make diverse human resources
more active, with the participation of employees. Currently ateam for diversity set up within the Personnel Department has
been implementing measures to promote human resource
diversity.

URL http://www.positiveaction.jp/declaration/add/search_detail/?id=1664[Lion’s Action Plans in Accordance with the Act of thePromotion of Women’s Participation and Advancementin the Workplace] (Japanese)
URL http://www.positiveaction.jp/pa/search/detail.php?company_id=1620

Career Forum

Fair Operating
Practices*Personnel in a managerial position, which is at the level of anassistant manager or higher.

• Regionally Based Employees Program

Number of Appointed Personnel
2016

2017

2018 (April)

9

9

5

16

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 andsupport such individuals in the entire workplace.
In March 2016, we established a special subsidiary, Lion
Tomoni Co., Ltd., and have been promoting the employmentof people with disabilities and expanding work opportunities
for them.
22 employees and 5 instructors of Lion Tomoni (as of theend of December 2017) are actively engaged in daily work
including the management of interoffice mail and printing ofbusiness cards for all Lion employees.
Lion Sustainability Report 201840

Community
Involvement andDevelopment

2015• Expanding work opportunities for
People with Disabilities

ConsumerIssuesSince 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 well as
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 areat a similar level to regular employees in the same region.

Labor Practices

Promoting Work-Life Balance
Lion strives to build an environment where employees candeliver results while placing value on balancing work life withprivate life.

• Building an Environment Where
Employees Can Work DynamicallySince 2010, Lion has worked to reduce prolonged work andencourage employees to take paid leaves. In 2017, a weekly“No-overtime day” and monthly “No-overtime week”
were implemented. In order to facilitate understanding ofmanagement of working hours, e-learning is provided forall employees. Furthermore, under a labor-managementagreement, we proactively encourage employees tosystematically take at least three days paid leave per year withthe aim of having them take more than 70% of paid leave.
We will make continuous efforts in this regard. (The target
has been raised from the previous 60%.)• Programs to Help Maintain a Balance
Between Work and Nursing Care
As part of creating an 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, we have in place programs fornursing 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, we have introduced awebsite targeted to employees aged 40 and provided a variety
of information on nursing care.

• Approach to Compliance with the Act for
Measures to Support the Developmentof the Next-Generation Children
Act for Measures to Support the Development of
the Next-Generation Children Phase 5 Action Plan
Four goals have been set in the Phase 5
Action Plan for the period from April 2015
to December 2018*.
*The period of the Next Generation Support Act Action Plan has beenchanged.

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.
→Launch of individual explanatory meetings for employees on childcare leave andtheir supervisors. (System implemented for each case, starting from January 2016)→Implementation of “Back-to-Work Seminars” for employees before returning towork. (Implemented in spring and autumn of every year from October 2015)→Introduction of the “website to support employees returning to workand raising children,” for supporting employees on childcare leave toachieve a balance between their career and childcare (February 2016).

Goal:2 Within the period of the action plan, implement measures to foster corporate

culture toward women’s participation and advancement in the workplace.
→Held the “Frank Exchange of Opinions on Lion’s Women
Empowerment Meeting” (June 2016).
→Held the 4th, 5th, and 6th Career Forums (2015, 2016, 2017).

Within the period of the action plan, have 13 or moremale employees take childcare leave.
→15 male employees took childcare leave (as of December 2017).

Goal:3

Goal:4 Within the period of the action plan, facilitate understanding about and the use of theWork-at-Home System, and implement measures to promote the adoption of the system.
→Promoting usage of the system through workplace hearing,utilization of internal newsletters, etc.

• Employee Data
Male
Female• Work-at-Home System

Employees

Lion has been making efforts to improve business productivity
and work-life balance. The Work-at-Home System wasintroduced in 2015 as a flexible way to work outside of theoffice. In order to facilitate understanding and a penetrationof the system, we repeatedly held explanatory meetingsand individual hearings at workplaces, and confirmed theeffects brought about by facilitating use of the system while
expanded its targets. As a result, the number of users has
been increasing every year.

Female employee ratio (%)• Approach to Compliance with the
Next Generation Support Act
Lion has formulated and addressed action plans in accordancewith 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 a company
supporting childcare with the “Kurumin” Mark.

Kurumin mark: A symbolof a company supportingchildcare

New employees*1(New graduates)
Re-hired retirees

Male
FemaleNumber of people%

Temporary employees
Female employees at
the management level
Employees withdisabilities
Employees who tookchildcare leave

Number of people%
Number of people%
Male
FemaleMale

Employees who took
shorter work hours for
Femalechildcare
Average overtime per month (hours)*1
Annual paid leave used (%)
Average service yearsMale(excluding re-hired
Femaleemployees)
Employees who resigned Number of people
within three years of%entering the company*1

2015
2,268
758
25.0
57
28
262
8.7
461
135
12.0
51
2.0
5
33
0

2016
2,239
775
25.7
49
29
250
8.3
467
149
12.9
55
2.2
2
53
0

2017
2,203
821
27.1
57
36
216
7.1
458
170
14.4
63
2.4
8
57
0

58

40

57

12.1
51.8
19.8

12.3
55.1
20.3

12.5
51.8
20.4

17.4

18.0

18.0

6

4

1

2.4

1.6

0.4

*1 S ome errors were found in past data and hence the figures have been revised.
Applicable scope: Non-consolidated, including employees assigned to affiliated companies(For female employees in managerial positions: non-consolidated, excluding employees
assigned to affiliated companies)

Employee Data related to domestic group companies are available on the Sustainability website.
(Japanese)
URL http://www.lion.co.jp/ja/csr/employee/various/

41

Lion Sustainability Report 2018

L i o n’s
Sustainability

Promoting Employees’ Health Management[Guidelines for Health](Japanese)Stress level check test

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

Test of psychological burdens on employees (obligatory since December
2015 with the revision of the Japanese Industrial Safety and Health Act).

[Programs for maintaining mental health, physical health, and health awareness](Japanese)
URL http://www.lion.co.jp/ja/csr/employee/health/• Mental Health Initiatives
Lion established our Mental Health Basic Policy in 2004, and have

In collaboration with the Lion Foundation for Dental Health(LDH), we introduced dental check-ups for all employees into
the annual health check-ups from 2002. Since 2016, we haveprovided oral care information through the e-learning system(L-navi) and have introduced a “Salivary Multi-Test System” that
can immediately measure oral cleanliness and the risks of cavities
and periodontal diseases from saliva samples. We also provide
oral health guidance by using intraoral camera. Our goal is toimprove the awareness of employees toward preventive oral
health care and to encourage the practice of healthy behavior.
[ALOHA] All Lion Oral Health Activity[Dentistry data of Lion employees](Japanese)
URL http://www.lion.co.jp/ja/csr/employee/health/

Labor Practices

At Lion, the manager who is responsible for healthmanagement of the company (The Personnel Manager)
supervises the overall health management of the entire
company, and coordinates with the Health Support Office,the Health Insurance Society, the person responsible forhealth management at each office and Industrial Health Staff
members (industrial physicians, public health nurses, etc.), toorganizationally promote employee health management.

• Preventive Dentistry Program (ALOHA)
Human Rights•O rganizational Approach to Health Management

Organizational
Governancecontinually and systematically promoted mental care for employees
based on the “Guidelines for Maintaining and Improving Mental
Health Workers ” from the Ministry of Health, Labour and Welfare.
In 2017, 96% of employees took the stress level check test.
The results are compiled and analyzed by section/department
in such a way that individuals cannot be identified. And thefeedback is sent to responsible officers and is applied to
manager training. In this way, Lion has continued to carry out
organizational mental health initiatives.

2017
Highlights

Based on the concept that the good health of employees serves
as a business foundation to support sound corporate growth,Lion has been conducting a variety of measures to assist in
maintaining and improving the health of our employees. These
include measures to improve lifestyle habits and oral health, toaddress mental health, to prevent cancer and smoking.
We also implement initiatives to improve the health-consciousnessof employees and encourage them to voluntarily practice healthy
behavior. By doing so, we aim to be a company where all of ouremployees can work dynamically and deliver fulfilling daily lives.

Enhancing Group-wide Occupational Health and Safety Management System

Number of Employees who Participated in Risk Simulation Training (Safety Training) (2017)

Chiba Plant Odawara Plant Osaka Plant Akashi Plant
429

39

138

135

Total
741

• Safety of Facilities

Introduction of websites
In collaboration with our employees (Japanese)
http://www.lion.co.jp/ja/csr/employee/

Lion Sustainability Report 201842

Community
Involvement andDevelopment

Our company conducts facility inspections to maintain safety, throughdaily routine inspections and regular maintenance. Diligently performing
maintenance inspections allow us to prevent failures and accidents
before they occur. There were 0 facility-related accident in 2017. We willcontinue to focus strongly on passing down the technical know-how to
employees and on providing facility-related training.

ConsumerIssuesA system to voluntarily conduct continuous safety and health management through PDCA.

In 2017, the number of labor-related accidents was 22 (excluding 2 cases
which occurred during commutes to work). If any occupational accidents
occur, the Safety Management Secretariat at our Headquarters conducts
on-site investigations and thoroughly identify their causes as well as
corrective response measures. Enhancing our safety management systemand our awareness of occupational safety are essential in order toprevent occupational accidents. We will continue to promote measures
to improve individual safety awareness and sensitivity.

Fair Operating
Practices

Occupational Safety and Health Management System (OSHMS)• Occupational Safety

The Environment

We are taking steps to enhance our Occupational Health and Safety
Management System in order to achieve our Group target of “Zeroserious accidents and zero serious incidents through All Lion Group”.
We hold Safety, Hygiene and Disaster Prevention Meetings twice ayear chaired by top management personnel, where ongoing initiatives
are promoted with the goal of fully eliminating risks related to facility
safety and occupational safety across the entire company.
Our company has added “disaster prevention” items into the“Occupational Safety and Health Management System (OSHMS)”
based on the guidelines of Japan’s Ministry of Health, Labour andWelfare and has established Lion’s unique “Health, Safety and Disaster
Prevention Management System” for domestic group companies andstarted its operation from 2009. And we are striving to raise standardsof Safety, Hygiene and Disaster Prevention Activities. .
Our domestic companies are also actively providing support
to overseas group companies to aid in preventing occupational
accidents. In 2018 we established a “Safety and Disaster Prevention
Promotion Department” directly below the management level,
further strengthening the Lion Group’s Occupational Health, Safety
and Disaster Prevention Management System.

The Environment
Basic Approach
Lion formulated its “Eco Vision 2020” environmental

customers’ environmental awareness through our

objectives in 2013. Beginning with “Eco Vision 2020,”

products, in addition to achieving targeted values

our thoughts regarding environmental activities arewith the aim of “realizing a low carbon society,”

represented in our environmental message “Lion and“realizing a sound material-cycle society,” andthe Environment,” from which our environmental“realizing a society harmonizing with nature.”slogan, “Everyday. For the Earth,” is derived.
We will work on communication by increasing[Every day. For the Earth. (Japanese) ]URL http://www.lion.co.jp/ja/csr/ecolion/

Environmental Guidelines
Lion’s Environmental Guidelines adhere to the spirit of
the “Lion Group Charter for Corporate Behavior,” whichstates: “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 with theformulation 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,” as well as ourstance toward our efforts overseas.

Environmental Guidelines
Lion will act voluntarily and proactively to reduce its
environmental burden to the global environment in allprocesses 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 sound material-cycle society with maximum usage ofrecycled 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 throughongoing maintenance and improvement of that system, protect
the global environment.

2. Complying with Legal and Other Requirements

Comply with the system of legislation, regulations andarrangements pertaining to environmental protection, andestablish and implement voluntary standards of conduct.

3. Setting and Verifying Implementation ofEnvironmental 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 life cycle
assessments.

5. Reducing Environmental Impacts Together with Our
Business Partners

Strive to reduce environmental burdens at all stages frompurchase through provision of products to customers, incooperation 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 Basedon Uniform Understanding of the Guidelines

Disseminate the Guidelines to all Lion employees, including
those of its affiliated companies, raise awareness ofenvironmental protection among them and bolster
environmental management activities throughout the entire
Lion Group.

8. Promoting Disclosure of Information

Seek to maintain and promote communication withstakeholders involved in Lion’s businesses. These Environmental
Guidelines are freely available to anyone upon request.

Revised January 1, 2013

43

Lion Sustainability Report 2018

L i o n’s
Sustainability

Environmental Management Structure and Management System• Environmental Management System

URL http://www.lion.co.jp/ja/csr/report/pdf/environment-Management.pdf

Group-wide
Manager ofenvironment
management(Director ofEnvironmental
Strategies Office)Production Division
Manager of environment
management(General Manager of
Production Management
Department)
Each plant

Environmental Conservation Committee
Chairman:
Director of the Board Responsible
Secretariat:
CSV Management Department,Environmental
Strategies OfficeMembers of Committee:
Directors of Production, Administrative/Sales,
R&D/Engineering, and Headquarters Staff Divisions
Administrative/Sales
Division Manager ofenvironment management(General Manager ofGeneral Affairs
Department)

R&D/Engineering
Division Manager ofenvironment management(General Manager ofCorporate Management
Department)

Each office

Each laboratory

Affiliatedcompanies

In regard to the revisions of environmental laws andregulations namely, “the Act on the Rational Use of Energy”“the Act on Promotion of Global Warming Countermeasures”“the Act on Confirmation, etc. of Released Amounts ofSpecific Chemical Substances in the Environment andPromotion of Improvements to the Management Thereof”“the Act on the Evaluation of Chemical Substances andRegulation of Their Manufacture, etc.” and “the Waste
Disposal and Public Cleansing Act” information is collectedfrom administrative agencies and industrial associations, andis then registered with an intranet system for information
on chemicals-related laws to keep the related departments
updated about latest developments.
In addition, we have specified waste management
regulations and have established a comprehensive
management system. There were no violations resulting in afine or other penalty during 2017.

Pollution Prevention
maintenance.
Data on management of chemical substances in compliancewith the PRTR system* is available on Lion’s website. We willcontinue to enhance our efforts for proper notifications andmanagement of emission volumes.

[Data of environmental impacts of production sites in Japan] (Japanese)

production sites in Japan in 2017] (Japanese)

URL http://www.lion.co.jp/ja/csr/report/pdf/domestic.pdf

URL http://www.lion.co.jp/ja/csr/env/enhancement/pdf/prevention_2017.pdf[Data of the amount of PRTR-Designated Substances released in

Fair Operating
Practices

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

The Environment

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

Labor Practices• Legal Compliance
Human Rights

Status of ISO14001 Certification

Organizational
Governance[Data on the environmental burden of group companies’ plants (overseas)]

Executive
Committee

2017Highlights

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 theenvironment, 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.

• Environmental Management Structure

ConsumerIssues* PRTR system
A system to measure, compile, and publish emissions volume ofchemical substances.

Community
Involvement andDevelopment

Lion Sustainability Report 2018

44

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 tocompliance with related laws and regulations, Lion strives toensure strict management of chemical substances at all stages
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
Product

1 Development

2 Production

3 Transportation

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

Measurement andreduction ofchemical substancereleases

Provision of safety
information duringtransportation

4 Use and Disposal

Provision of
information on
safety and handlingof chemical products

Started Operation of a Management System for Information on Chemical Substances at Lion’s Research and Development Sites
In January 2018, we started operation of a Management System for
Information on Chemical Substances at our research and development
sites.
This system is composed of databases for data related to raw materials
and product compositions, as well as legal information, and includes
functions for product composition development. The introduction ofthis system has made it possible for us to strengthen our system forlegal compliance related to the chemical substances we use indevelopment of our own products in all of our business fields, and to
immediately search for specific chemical substances contained in
products after their market release from the accumulated composition
data. We have therefore been able to successfully improve the level of
our information management, ensure traceability, and strengthen ourability for compliance.

Engaging in Progressive Environmental Activities• Achievements in the Second Phase of Eco Vision 2020 (from 2015 to 2017) and Future Plans
Eco Vision 2020 is being conducted by dividing the nine years
from 2012 to 2020 into three phases of three years each.
2017 was the final year of phase 2 (2015 - 2017). As with theprevious years, all employees of the Lion Group have been
united in promoting environmental activities and are carryingout activities according to the plans for phase 3 (2018 - 2020).

Five Key Items[Greenhouse gas emissions from business activities in Japan][Greenhouse gas emissions from overseas business activities]

In 2017, we reduced greenhouse gas emissions by 47% (compared
to 1990, emission intensity per unit total revenue), which is an
improvement over the previous year’s 43% (same unit 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 our targets for 2020.

In 2017, Lion reduced greenhouse gas emissions by 6% (compared
to 2014, emission intensity per unit of production) with an annual
average of 2%, achieving the target of 1% reduction for eachyear. Energy-saving measures conducted at each plant contributed
greatly to these reductions. We will continue to develop andimplement energy-saving programs in our overseas plants.

[Greenhouse gas emissions from post-use productions in Japan]
In order to reduce the greenhouse gas emissions from post-use
products, we are making products more compact and switchingfrom petroleum-based surfactant ingredients to plant-based
ingredients that do not lead to an increase in CO2 emissions. In
2017, emissions decreased by 53% (compared to 1990, emission
intensity per unit total revenue), a further reduction from theprevious year’s 52% (same unit as above). We will push on with ouractivities to achieve the set targets.

[Water use in domestic business activities]
In 2017, we reduced water used in domestic business activities
by 50% (compared to 2000, water used per unit total revenue),
progressing with a pace exceeding the 2020 target of 35%
reduction. This is mainly due to water-saving activities at all offices
and plants, and recycling of waste water from production processes
at our Chiba Plant as stated below. We will continue with ourwater-saving activities.

[Recycling of plant waste water discharge]
Since 2016, our Chiba Plant has operated a facility to recycle waste
water from production processes. This contributes not only to a
reduction of waste water discharge, but also of waterusage.

45

Lion Sustainability Report 2018

L i o n’s
Sustainability●

Achievements and Target Values in the Second Phase of Eco Vision 2020 (2017)
Categories

Within thecompany
Outside thecompany

Emission intensity per unit total revenue
23% reduction (compared to 2010)
40% reduction (compared to 1990)

Emission intensity per unit total revenue
34% reduction (compared to 2010)
49% reduction (compared to 1990)

Absolute quantity
47% reduction (compared to 1990)

Absolute quantity
41% reduction (compared to 1990)

Absolute quantity
40% reduction (compared to 1990)

Emission intensity per unit total revenue
9% reduction (compared to 2010)
53% reduction (compared to 1990)

Emission intensity per unit total revenue
7% reduction (compared to 2010)
52% reduction (compared to 1990)

Emission intensity per unit total revenue
9% reduction (compared to 2010)
53% reduction (compared to 1990)

Absolute quantity
51% reduction (compared to 1990)

Absolute quantity
51% reduction (compared to 1990)

Absolute quantity
41% reduction (compared to 1990)

Emission intensity per unit of production
6% reduction in three years(compared to 2014)

Emission intensity per unit of production
1% reduction year-on-year(compared to 2014)

Emission intensity per unit of production
1% reduction year-on-year

Reduction of 66 thousand tons
annually－

Reduction of 100 thousand tons
annually

Water use per unit total revenue
35% reduction (compared to 2010)
50% reduction (compared to 2000)

Water use per unit total revenue
15% reduction (compared to 2010)
34% reduction (compared to 2000)

Water use per unit total revenue
15% reduction (compared to 2010)
35% reduction (compared to 2000)

Absolute quantity
49% reduction (compared to 2000)

Absolute quantity
35% reduction (compared to 2000)

Absolute quantity
23% reduction (compared to 2000)

Water use per unit total revenue
27% reduction (compared to 2010)
52% reduction (compared to 2000)

Water use per unit total revenue
15% reduction (compared to 2010)
44% reduction (compared to 2000)

Water use per unit total revenue
17% reduction (compared to 2010)
45% reduction (compared to 2000)

Absolute quantity
51% reduction (compared to 2000)

Absolute quantity
44% reduction (compared to 2000)

Absolute quantity
33% reduction (compared to 2000)－

Zero emissions at all
domestic production sites*4

Waste
water

(8)Recycle offactory waste
water discharge*3

Stable operation of facilities
for recycling waste waterfrom production processes at
our Chiba Plant－

Recycle factory waste waterat multiple plants

Procurement(9)Procurement ofplant-derived oils
that takebiodiversity into
consideration

Continuing purchases of
RSPO*5-certified palm oil
derivatives－

All palm oil derivatives
purchased to be RSPOcertified

Biodiversity(10) Increase of
biodiversity
conservation
activities

Carried out in all of Lion's
plants, with implementation
expanding at offices of Lionand its affiliate companies－

Carry out in all domestic sites

AwarenessandEducation in
the Society(11)Environmental
awareness andeducation for
consumers

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

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

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

ConsumerIssuesAchievement of zero
emissions at all domestic
production sites*4

Fair Operating
Practices

Education(7)Zero emissions
within thecompany*2

The Environment

Harmonizing with Nature

Waste

Labor Practices

Outside thecompany(6)Reduction of water
usage at households
using our products

Emission intensity per unit total revenue
32% reduction (compared to 2010)
47% reduction (compared to 1990)

Human Rights

Within thecompany(5)Reduction of water
use in businessactivities

Target values for 2020

Organizational
GovernanceOutside thecompany(4)Reduction ofgreenhouse gases
from post-use
products overseas

Target values for Phase 2(2015 - 2017)2017
Highlights

Within thecompany(3)Reduction ofgreenhouse gases
from businessactivities overseas*1

Water(2)Reduction ofgreenhouse gases
from post-use
products

Greenhouse gases (overseas)

Realizing a Sound Material-Cycle Society

Greenhouse gases (domestic)

Realizing a Low Carbon Society(1)Reduction ofgreenhousegases frombusiness activities

Achievements in 2017

Lion Sustainability Report 2018

Community
Involvement andDevelopment*1 Target scope consists of our consolidated subsidiaries as of December 31, 2017.
*2 Set direct landfill ratio of total generated waste amount to 1% or less
*3 Waste water from production processes*4 Chiba Plant, Odawara Plant, Osaka Plant, Akashi Plant, Hirai Production Site, Sapporo Office, Sendai Office, Headquarters/Tokyo
Office, Nagoya Office, Osaka Office, Fukuoka Office, Lion Chemical Co., Ltd. Fine Chemical Production Site, Lion Chemical Co., Ltd.
Oleochemical Production Site, Lion Specialty Chemicals Co., Ltd. Yokkaichi Plant, Lion Specialty Chemicals Co., Ltd. Ono Plant, Lion
Packaging Co., Ltd. Fukushima Plant*5 Roundtable on Sustainable Palm Oil

46

The Environment• Harmonizing with Nature
Lion has taken initiative in responding to the waterrelated environment issues such as eutrophication inlakes and floating bubbles in rivers which is linked to theuse of detergents, through consideration for 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 tocoordinate with local communities to focus on conservationof biodiversity and promote sustainable use of the resources.
Additionally, it is important to promote a shift in lifestyleof 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 asustainable society through its businesses by ascertaining thenatural resources used in business activities and the impact
on biodiversity throughout the supply chain. Additionally, ourcompany will carry out biodiversity conservation activities thatwill lead to the expansion of opportunities and reduction ofenvironmental risks. Also, by having each of our employees
participate in activities to conserve biodiversity as part ofour environmental education, we will spread awareness of
biodiversity conservation to all our office sites.
Related Information

Highlight 3

p.31-34

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

Watershed* ecosystem
in raw material
origination sites
Procurement of Raw
Materials, Packages,
and Containers

Key natural
resources usedby Lion•P lants used as raw

materials (oil palms etc.)•W ood which becomes raw materials
for paper used in packaging• I mpact of palm oil

Possible major
impact of ouractivities on
biodiversity

growers on naturalenvironments and local
communities (impact on
wildlife habitats caused
by illegal logging of
tropical forests)•D amage to forest

environments which are
the source of raw
materials for paper

Watershed ecosystem
where our plants arelocatedProduction• Impact of underground water

intake by production plants on
surrounding natural environments
and local communities• Impact of waste water andexhaust gases from production
plants on surrounding naturalenvironments and local
communities

Watershed ecosystem where consumers resideUse by consumers

Disposal by
consumers•S ervice water at the time ofusing our products—• Impact of water intake by consumers

on surrounding naturalenvironments and local communities• Impact of light and odors fromproduction plants on
surrounding naturalenvironments and local
communities• I mpact of waste

water and waste
packaging materials
generated byconsumers on
surrounding naturalenvironments andlocal communities• Cooling water and raw waterfor equipment cleaning etc.,
which are used in production
plants•P romotion of

Biodiversity conservation activities

Activities toreduce risks

procurement ofsustainable palm oils
(participation in RSPO
and purchase of
RSPO-certified oils)
Related Information p.50
•P
 romotion of forest

conservation (use ofthird-party certified paper)• Reduction of production plant wastes
Related Information Web (2)—• Development of highly biodegradable

detergents

Related Information Web (2)• Reduction of water consumption at plants•S urveying

environmental
impacts of surfactants
Related Information

Web (3)

Related Information Web (2)• Conservation of rivers and otherecosystems by implementing purification
technologies on discharged waste water• Conservation and monitoring of habitats on

Activities toexpandopportunities• Development of water-saving products

the watershed where production plants arelocated (Activities include protection ofendangered loggerhead sea turtles,
maintaining biotopes, removal of non-native
species on beaches, and activities tomaintain satoyama( domestic woodlands ))Related Information Web (4)Highlight 3• Educational activities regarding care of waterand natural environments (Activities include
forest maintenance under the name of Lion
Forest in Yamanashi, conducting the Rainwater
Utilization Ideas Contest, and water-related
environmental research support through theJapan Society on Water Environment)
Related Information p.58

•P
 romotion of 3Rs (refills,

condensing of content to makeproducts more compact, anddevelopment of containers,
e.g. recycled PET (polyethylene
terephthalate) bottles andcontainers with thin-wallmolding)
Related Information

p.55, Web (2)p.31-34* Watershed: Ecosystems including forests, rivers, domestic woodlands (satoyama), tidal flats and beaches that are connected by water.

47

Lion Sustainability Report 2018

L i o n’s
Sustainability• Realizing a Low Carbon Society / a Sound Material-Cycle Society
available on our website. We will promote activities towardrealization of 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
Major Initiatives
Undertaken by Lion

• Substituting plant-

Plantsderived materials for
petroleum resources
Related Information Web (1)• Reducing the use of

Disposal by
consumers•E ducation to increase environmental awareness • Substituting plant-• Improving energy efficiency byreviewing production processes,
introducing energy-saving
equipment when upgrading
facilities, and downsizing
Related Information p.45
products

Office/Facilities• Company-wide energy-saving activities

through products (an environmental label is
attached to products that meet the “Lioneco-standards”)
Related Information p.55
•R
 educing power consumption

during the use of our power-saving
products (decreasing the number ofrinsing times when washing)including at the Administrative/Sales
Division and the R&D/Engineering Division

derived materials for
petroleum resources• Promotion of 3Rs (refills,

condensing of content to makeproducts more compact, anddevelopment of containers,
e.g. recycled PET (polyethylene
terephthalate) bottles andcontainers with thin-wallmolding)
Related Information

p.55, Web (2)Distribution after shipment• Increasing the rate of modal shift during transportation of

Human Rights

Activities forrealizing a low
carbon society

petroleum resources
with biomass-derived
container materials

Use by consumers

Organizational
Governance

Procurement of Raw
Materials, Packages,
and Containers

2017
Highlights

Lion has worked to reduce greenhouse gas emissions, aswell as to recycle and effectively use resources, at each stage
from raw material procurement to disposal. Detailed data is

products such as shifting freight from truck to rail or ship
• Improving logistics efficiency throughProcurement of Raw
Materials, Packages,
and Containers• Using plant-derived

raw materials

Activities forrealizing a soundmaterial-cycle
societymaterials

Use by consumers

Plants• Education to increase environmental awarenesswithin the company• Reducing water consumption
by recycling waste water fromproduction processes andutilizing rainwater• Reducing water usage during the• Promoting zero emissions

Office/Facilities

through products (an environmental label is
attached to products that meet the “Lioneco-standards”)
Related Information p.55

use of our water-saving products• Promoting company-wide

Related Information Web (2)Disposal by
consumers• Promotion of 3Rs (refills,

condensing of content to makeproducts more compact, anddevelopment of containers,
e.g. recycled PET (polyethylene
terephthalate) bottles andcontainers with thin-wallmolding)
Related Information

p.55, Web (2)The Environment• Using recycled

Major Initiatives
Undertaken by LionLabor Practices

means such as by increasing the transportloading rate
Related Information Web (1)• Promoting thegreen purchases

Web (1) [Realization of Low Carbon Society] (Japanese) URL http://www.lion.co.jp/ja/csr/env/climate/
Web (2) [Realizing a Sound Material-Cycle Society] (Japanese) URL http://www.lion.co.jp/ja/csr/env/resources/
Web (3) [Harmonizing with Nature] (Japanese) URL http://www.lion.co.jp/ja/csr/env/biodiversity/

Fair Operating
Practices

Toothbrush Recycling
Program

Related Information Web (2)Web (4) [Biodiversity Conservation Initiatives at Each Production Site] (Japanese) URL http://www.lion.co.jp/ja/csr/biodiversity/

ConsumerIssuesIntroduction of websites (Japanese)
Every day. For the Earth. (Japanese)

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

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

Community
Involvement andDevelopment

Together with the Global Environment (Japanese)

Lion Sustainability Report 201848

Fair Operating Practices
Basic Approach
In accordance with the “Lion Group Charter for Corporate

political bodies.” We also require business partners to

Behavior” and the “Behavioral Guidelines,” we havecomply with laws and regulations. Furthermore, in 2009,

made efforts to “engage in fair, transparent and free

Lion expressed its support for the ten principles of the UN

competition and proper transactions” while “maintaining

Global Compact, and it has made it clear that the company

sound and proper relationships with governmental andis serious about preventing bribery and corruption.

Promoting CSR Procurement
In our initiatives across the supply chain, we believe that oneof 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 the environmentand society, and to sustainably develop mutual operations,both our suppliers and our company need to enrich thecontent of sustainability.
Also, regarding the palm oils which are Lion’s primary plantderived oils used as raw materials, we are aware that it iscritical to promote procurement of sustainable palm oils andare proceeding with initiatives toward that goal.

Substitution of Plant-derived Resources
Our company is independently developing the recyclable plant-derived raw
materials “MES” and “MEE”* which are used in products such as laundry
detergents. We will continue with our activities related to plant-derived materials.

* MES: Alpha-sulfonated fatty acid methyl ester
MEE: Polyoxyethylene fatty acid methyl ester[Substitution of Plant-Derived Materials for Petroleum] (Japanese)• Promotion of Sustainability with
Material Suppliers and Outsourcing
Contractors
We require material suppliers and outsourcing contractors
to carry out self-checks based on the “Lion Group Supplier
CSR Guidelines”every year in order to facilitate responsible
procurement activities. Accordingly, we have been promoting
the development of a system to prevent risks from occurringin 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 sustainability together withour business partners.

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

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

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

English: http://www.lion.co.jp/ja/csr/businesscustom/valuechain/pdf/eng.pdf
Chinese: http://www.lion.co.jp/ja/csr/businesscustom/valuechain/pdf/cn.pdf• Timeline of Our Approach to CSR Procurement
2005
2008

2013
2014

Instituted the Basic Policy Regarding Purchasing for appropriate procurement of raw materials, packages, andcontainers, as well as products.
Established the Procurement Principles that clarified our social and environmental considerations. Conducted aquestionnaire survey for domestic and overseas material suppliers and outsourcing contractors about theircorporate activities regarding legal compliance, product service quality and safety, environmental
considerations, labor and human rights, and fair business transactions.
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 initiatives for sustainability which we expect our material suppliers and outsourcing
contractors to perform, and began asking them to conduct self-checks on their own initiatives for sustainability.
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/ja/company/compliance/procurement.php
49

Lion Sustainability Report 2018

Establishment anddisclosure of CSR Guideline

Request for self-checks
based on CSR Guideline

Share the Procurement Principles
and CSR Guideline with
suppliers.

Ask suppliers to conduct online
self-checks.

ActionCheck

Feedback and improvement

Analysis of self-checks

Give feedback to suppliers on
detailed results and ask for
improvement if necessary.

Analyze the responses andidentify suppliers that need
improvement.

No response

1%
Requested
improvement

20 %*Number of
No need forcompanies
improvementmonitored: 625%
companies which
the Lion Group’s
domestic companies
procure raw materials, packages, and containers
from or contract production to (Domestic: 549,
Overseas: 76).
* Since 2017, we have strengthened our criteria for requesting improvements, causing
an increase in the percentage of cases where improvements were requested.

79

In order to have the suppliers understand the importance of addressing
sustainability, we devise ingenuity such as to describe the circumstances surrounding
sustainability in our request documents of the self-checks.The self-checks has threestage checking criteria in accordance with the level of each initiative and a glossary.

Human Rights

Outline of Results• In 2017, the response rate was 99%. The questions asked suppliers to rate their activity levels from 1 to 3, and theoverall average was 2.74, indicating that sustainability is widely practiced within the entire supply chain.

• We are currently requesting cooperation from the 5 suppliers who did not respond, through interviews and othermeasures.

The EnvironmentLtd.’s oleochemical production site passed the supply chain
certification system inspection and was certified as a plantthat is allowed to handle RSPO-certified palm oils. As a resultof this, Lion started procuring RSPO-certified palm oils in 2012.
We set our target to complete the switch of all palm oils to
be used to certified palm oils by the end of 2015, and all thepurchased palm oil became certified in July 2014. In 2017, we
continued the purchase of RSPO-certified palm oil derivatives
to achieve the new target for 2020.
We will continue with our effort to procure sustainablepalm oils into the future.

Labor Practices•A iming for Sustainable Procurement of Palm Oils

Fair Operating
Practices

We are actively promoting the utilization of plant-derived
materials that are carbon neutral and non-depletable. As oneof the plant-derived materials, we are using derivatives ofpalm oil – an oil that is globally produced in largest quantities.
Palm oils are mainly produced in Malaysia and Indonesia.
Palm oil plants grow constantly meaning that the oil plants
can be harvested throughout the year, with the production
volumes increasing year after year. However, a number ofissues, such as the logging of tropical forests for developmentof new farms leading to a shrinking of wildlife habitats,
have risen at the production sites, as a result of the sudden
explosion of production. Also, due to inappropriate farming
operations, various labor-management issues regarding social
fairness, including terrible labor conditions with very little
consideration for health and safety, very low wages, improper
treatment of migrant workers, and child labor, have beenraised.
Since 2006, Lion has been a member of the Roundtableon Sustainable Palm Oil (RSPO), which attempts to solve allof the above-mentioned issues. In 2012, Lion Chemical Co.,

Organizational
Governance

Do

2017
Highlights

Plan• Aggregate Results ofOverall Self-Checks Basedon the Lion Group Supplier
CSR Guideline (2017)

L i o n’s
Sustainability• PDCA Cycle for CSR Self-checks by Suppliers

Target2020: All palm oil derivatives to be RSPO-certified
ConsumerIssuesRSPO

Roundtable on Sustainable Palm Oil
The RSPO sets forth 8 principles and various criteria that apply tosustainable palm oil production, including those with regard to“environmental responsibility and conservation of natural resources
and biodiversity,” “responsible development of new plantations,”
and communities who are affected by growers and mills,” and only
certifies palm oils produced in compliance with the set principles.
URL http://w w w.rspo.org/

Community
Involvement andDevelopment

and “responsible consideration for employees as well as individuals

Introduction of websites
In collaboration with our business customers (Japanese)
http://www.lion.co.jp/ja/csr/businesscustom/

Lion Sustainability Report 201850

Consumer Issues
Basic Approach
In order to provide products that will satisfy ourdevelopment, the quality of the developed products

customers, Lion carries out quality assurance activities

are verified in respect to seven metrics including

at all stages from the very beginning of the productfunction and performance while considering clear

creation process to the customer consumption of ourand easy-to-read labeling for our customers. During

products. Specifically, by identifying key requirements

production, thorough quality control is performed

for each stage of corporate activities―productwithin each process, and products that have passed

planning, product development, production, sales,

inspections are shipped with identifiable data forand customer support―we are constantly pursuingeach lot, aiding in effective after-sale management.

new heights of customer satisfaction.

A variety of information is sent to wholesalers andDuring product planning, valuable opinions
received from customers are analyzed to identify

retailers through explanations and sampling of our
products.

customers’ needs. At the stage of product• Product Development Incorporating Customer Opinions

Maximization of customers' satisfaction
Customers
Customer support
Management

Flow of developing safe and high-quality products
Product planning
Customer opinions and market
survey findings are reflected inplanning and form high target
quality for customer satisfaction.

Product development
Products are developed bytranslating target quality into
technical parameters for design
quality.

Production
Raw materials and production
processes are managed to resultin the manufacture of productswith stable quality.

Sales
Product information is communicatedin an accessible manner so that
customers can ascertain the productfeatures and usage.

In order to realize a happy life for customers, we are sharing and practicing the origin of "Customers’ Satisfaction" within the company.
By responding to customer opinions and making ongoing quality improvements, Lion will create products that can heighten customers’ satisfaction.

Group-wide Reliability Assurance System
To deliver on our promise of “providing superior productsthat are helpful in the daily lives of people”, we arepromoting the developing of safe and high-quality productsthat can satisfy our customers based on our “Quality Policy”.
With our “Pharmaceutical Affairs and Quality Assurance
Department”, established in 2014, we moved forward tobuild quality assurance and development support structures
across all functions of Lion including our overseas group51

Lion Sustainability Report 2018

companies. In 2018, we established a “Reliability Assurance
Department” for further quality assurance, centered on a
Quality Management System which extends throughout our
supply chain from planning to disposal. In order to respondto growing social quality requirement level, and to customer
needs diversified by the business expansion of domestic/
overseas group companies, Lion will continue to provide ourcustomers with safe and high-quality products.

L i o n’s
Sustainability• Developing Safe and High-quality Products

Product
planning

Planning products that further satisfy our customers

Customer
opinions

Analysis /deliberation

Deliberation and approval of the proposal
Product planning meeting2017
Highlights

Preparation ofa product
proposalMarketingresearch

Executive Committee

Organizational
Governance・Marketing
research results
・Concept
・Target quality
level

Market analysis
and customer
research

Product
development

Lion'sproposals

Building safety and quality into products
Deliberation on andchecking of labeling

Production Engineering Meeting

Seven metrics(1) Function/performance(2) Usability (3) Safety(4) Product stability(5) Environmental friendliness(6) Appearance (including design)(7) Compliance with laws andregulations, and self-imposed standards

Discussion and approval of development results

Product planning meeting
Discussion and approval of commercializationof the product

Labor Practices

Executive Committee
Decision of commercialization

Quality Verification Meeting At the completion of
When starting development, the suitability oftarget quality and matters deemed crucial todevelopment are confirmed.

Discussion and approvalof development results

Human Rights

Deliberation on the contents
and containers
Quality verification

development, the validityof the developmental
product is confirmed.

Process Safety
Verification Meeting
Safety assurance in the
manufacturing process isconfirmed.

The Environment

Production Quality confirmation under mass production
Preparation for initial manufacturing

Quality control
is performed ineach process.

Product freshness is managed.

Provision of information about product quality
Information is provided towholesalers and retailers toensure communication of
product features andusage to customers.

ConsumerIssues

Sales

Quality in trial manufacturing isevaluated.Market reception is surveyed.

Storage (shipment)

Fair Operating
Practices

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

Manufacturing

Information on products ismade available via displays
and sampleing at stores,
television and newspapers,
our website, and other media.

Community
Involvement andDevelopment

Lion Sustainability Report 201852

Consumer Issues• Approach to Safety and Reliability
We evaluate the safety of materials (at the stage of raw
materials, package and container) and during product use sothat our customers can use our products without any concern.

Safety of Materials
First of all, we examine the safety of materials. As the next
step, we determine whether or not to use it after evaluating
the sample and investigating supplier in order to ensure
a certain level of quality. In using the materials, they areclassified into drugs, quasi-drugs, cosmetics, food, andmiscellaneous, and their quality is inspected based on theinspection items and testing methods appropriate for eachclassification before they are actually accepted for use.
[Safety of Materials] (Japanese)• Enhancing the Management
Structure of Advertising
Lion are promoting to enhance the “Management Structureof Advertising” aiming to carry out responsible promotional
and advertising activities for all products which we sell(including food products and pharmaceuticals).
(1) Enhancements of the check system on advertising for allof our products including food(2) Consultation with government agencies such as theConsumer Affairs Agency as needed(3) In-depth training on related regulations, provided to
employees
We will endeavor to enhance the “Management structureof Advertising” to promote responsible advertising activities
in the future.

• Initiatives to Listen and Respond to
Our Customers

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

Safety During Product Use
By considering the various uses of products as well as productuse by socially vulnerable customers, we perform safety
evaluation of our products from the perspective of avoiding
risks at the stage of product design.
Our company uses a checklist in our evaluation to determine
whether the product design ensures safety from “normaluse” cases to “mistaken use” cases. We evaluate if risks canbe alleviated even in the event of “irregular use,” and also
evaluate whether risks can be tolerated. Such evaluations arereflected in our measures to secure product safety, such as byproviding sufficient warnings if necessary.
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 to prevent
damages during product use as well as failure to confirm 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.

The inquiries made by customers are registered in a database
under a stringent personal information management
structure and then shared throughout the company via an
information sharing system, with the exception of personal
information, so that such information can be used for
improvements of products and services, and for new productdevelopment. Among this information, which is considered
to affect customers’ satisfaction, together with any findings
discovered from our daily customers’ voices, are passed on
to top management as a VOC*1 Daily Letter. And efforts
are made to enhance quality by ascertaining the customers’
perspective and through early consideration and handlingof improvement measures led by the product planningdepartments. In 2017, we sent out 242 VOC Daily Letters. In
addition, we widely collect and analyze consumers’ opinions
not only through telephone and e-mail but also via SNS*2.
Furthermore, in order to take advantage of customers’
perspectives in our business activities, a specialized internalorganization 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
Current Status of Recall of Varsan Hyosatsu Jet

Reckless use

Unforeseeable andunreasonable usage

Because the “Varsan Hyosatsu Jet for Flying Insects”and“Varsan Hyosatsu Jet for Crawling Insects” led to fire-related
accidents, Lion has been voluntarily recalling such products

Lower risk to acceptablelevel and provide warnings Irregular use

Foreseeable usage, but defying
accepted norms (overly excessiveuse, or use for purposes very
different to those intended)

Mistakenuse

Usage not as intended
by Lion but which must
be expected

since August 27, 2007. As of the end of December 2017, 1.48
million of these products have been recalled (recall rate:
45.7%). We would like to ask our consumers who still have anyof these products and reside in Japan to assist in the recall.

Required Safety
Assurance

Normal use

53

Lion Sustainability Report 2018

Usage as intended
by LionCustomer Support for Recall of
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)

L i o n’s
Sustainability

Providing Information Useful for Daily Life and Promoting Educational Activities

Survey andresearch data

2017
Highlights

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

Customer Opinions

Information collection and accumulation

Meisters of Daily Life

Transmissionof news

Information
Publications dissemination

EventsMedia, etc. Consumers Documents

Human Rights

Government-sponsored consumer lifestyle event

The Lion Comfortable
Lifestyle Laboratories

Organizational
Governance

Creation of useful information

WebsiteProcess of providing information Useful for Daily Life

Labor Practices• Communication with Customers using “Lidea,”a Website for Useful Lifestyle Information
Lidea is Lion’s website for delivering lifestyle information and for sharing delightful ideas (tips andinformation) 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 ofDaily Life,” specialists with expertise on lifestyle information.
[Lidea]URL https://lidea.today/

Publishing a newsletter with lifestyle information
Lifestyle Tips

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

ConsumerIssuesCommunications through mass media

Lidea Promotion
Project for Cities ofHarmonious Marriages

Fair Operating
PracticesWe publish newsletters
containing lifestyle topics based on the analysis
of consumer-generated
information, including
customer inquiries, tomeet consumers’ needs.

Two-way communication with consumers

Communicating with overseas consumers
Websites of ouroverseas groupcompanies

We h o l d s e m i n a r s
regularly for reporters and editors frombroadcasters, newspapers, magazines andwebsites to provide
lifestyle information.

Lifestyle informationthat suits the culture
and habits of local markets is provided on thewebsites of our overseas group companies.

Lion Sustainability Report 2018

Community
Involvement andDevelopment

Session to share
lifestyleinformation

The Environment

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

54

Consumer Issues

Offering Products and Information that Contribute to the Development of a Sustainable Society• 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 Labels
Attached to Products[Lion’s eco-standard] (Japanese)
URL http://www.lion.co.jp/ja/csr/ecolion/“CHARMY Magica”(Dishwashing Detergents)

Reduction of Usage

Reuse of containers

Recycle wastes

Make containers andpackages morecompact

Increase refill
products

Proactively use
recycled materials•P romotion of Environmental
Communication through Products
In order to inform consumers of the importance ofenvironmental considerations through our products, Lionhas put an “environmental label” on which environmental
explanations are printed, and an “environmental logo” toproducts that fulfill our original “Lion eco-standard” since2014. The criteria for the “Lion eco-standard” are set basedon the product life cycle.

This container is made with approximately 10% (by weight) recycled plastic.

Save water with one rinse.
For more information, please visit our website.

本体容器につめかえて使うことで、
廃棄プラスチック量を約81％削減できます。
（本体450gの容器との比較。重量比）“TOP SUPER NANOX” Bottle
and its refill(Super-Concentrated Liquid
Laundry Detergent)

Using refills can reduce plastic waste byapproximately 81%. (Compared withproducts in 450g containers, by weight)“TOP Platinum Clear”(Powder Laundry Detergent)Approximately 67% of the content (organic
ingredient) consists of plant material.
For more information, please visit our website for details.

(Introduction of eco-friendly products) (Japanese)
URL http://www.lion.co.jp/ja/csr/ecolion/

Promoting Information Security
In order to thoroughly protect personal information andensure information security, Lion has established the“Personal
Information Management Regulations”, the “Basic Policyof Our Information Management”, the “Information
Management Regulations,” as well as the “Information
Security Regulations” which is conformance with 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 in order for
employees to use social media (social networking services,
blogs, etc.) to disseminate appropriate information.

In 2015, with the aim of enhancing internal information
management systems, our company revised the related
regulations. In 2017, 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

Introduction of websites
In collaboration with our customers (Japanese)
http://www.lion.co.jp/ja/csr/consumer/

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Lion Sustainability Report 2018

L i o n’s
Sustainability

Community Involvement and Development
Basic Approach
which is to “contribute to society through business activities,”

issues in cooperation with local residents, government agency

Lion engages in the activities that contribute to improveand citizens’ groups. In addition, by increasing opportunities

sustainable society and planet, through the fields of Health,for each employee to involve business-related educational

Comfort and Cleanliness with the aim of realizing “healthy

activities, we foster human resources that create new values

minds and bodies for all”.

on the basis of a high level of social and environmental

As it is necessary to co-exist harmoniously with the locations

Organizational
Governancecontinue our business, Lion works to solve regional and social

2017
Highlights

Championing the spirit of our founder Tomijiro Kobayashi,awareness.

of office sites and other related communities in order toBusiness
Domains

HealthComfortHuman Rights

Supporting
mental andphysical comfort

Promotingoral healthcare

Cleanliness
Establishingcleanliness andhygiene practices
and habits

Environmental communication

Co-existence
withcommunities

Involvementof
employees

Labor Practices

Basic
Policies

Enhancementofpartnerships

The Environment

Health, Comfort and Cleanliness Fields
dental clinics with daily self-care, the “Oral Health Event ofTooth Brushing for Children” aimed at elementary school
students, comfortable lifestyle support activities conducted
through “Meisters of Daily Life”, and activities to promote
hand washing habits which our employees participate in.

ConsumerIssues[Achieving “Healthy Minds and Bodies for All”] (Japanese) URL http://w w w. lion.co.jp/ja/csr/community/

Environmental communication
include the “Forest Maintenance Activities” conducted jointly
by employees and the local residents of Yamanashi City, andthe “Rainwater Utilization Ideas Contest” which is intended toeducate elementary and middle school students on awarenessof the water environment.

[Environmental Communication] (Japanese) URL http://w ww. lion.co.jp/ja/csr/social/
Lion Sustainability Report 201856

Community
Involvement andDevelopment

We are engaged in environmental communication with the goalof environmental contribution in building a sustainable planet.
As our company’s business is based on its deep relationshipwith water through the act of “washing”, we place emphasison the “Water Resource Conservation Activities”. These

Fair Operating
Practices

As Lion provide products and services to realize “healthy
minds and bodies for all”, we engage in programs to promoteoral health care, support mental and physical comfort andestablish cleanliness and hygiene practices and habits actively.
For example, we are taking actions across the entire
Lion Group which include: ongoing activities to promote“preventive dentistry” which combine professional care atCommunity Involvement and Development

Enhancing Social Contribution Programs to Create Healthy and Comfortable Living Habits
Activities to Promote Oral Health Care through Foundations
Lion has been consistently working on promotional and educational
activities regarding oral health since 1913, adhere to our consistentphilosophy of “returning profit obtained through corporate activities
to the society,” which has remained unchanged since the foundationof 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 the time). In
2010, the Cabinet Office approved the change in the foundation’s
status to a public interest incorporated foundation, and LDH
commenced its operations. Through the three public benefit services
shown below, LDH has consistently been coordinating with the Japan
Dental Association, universities, and administrations to maintain andpromote dental and oral health of consumers. LDH is contributing tosociety 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 Projects of LDH
1. Oral health promotion projects
Promotion activities of oral health at all life stages
2. Research and investigative projects
Investigation/research on the importance of oral healthfor extending healthy life expectancy, and provision of
information on research results obtained throughbusiness and other activities to specialists and consumers
3. Educational and training projects
Holding of various seminars and lectures for healthinstructors and dental specialists[The Lion Foundation for Dental Health, a public interest incorporated foundation]
URL http://www.lion-dent-health.or.jp/english/

Activities for oral health promotion for mothers and children“Childcare Support Programs” in thearea of “Dental and Oral Health” forexpectant mothers, infants, preschoolers
and their parents
Participants: 2,790 infants andpreschoolers
and 377 parents

1.146 million

Activities for oral health promotion for school children
Face-to-face educational activities withstudents and their parents and provisionof support for activities of healthinstructors
Participants: 5,935 students
162 parents
723 health instructors

Accumulated total participants:*[Risk Control Dentistry]

approx.

• Oral Health Event of Tooth 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).”Previous event was held all over the country by Internet deliveration.
However, from the 74th events in 2017, the event period increasedby 10 days. Accordingly, the participating schools can now set thedate from among period and participate by watching educationalDVD.
In 2017, total of approximately 160 thousand students from 2,893
elementary schools had joined this events. This events are not limited
to Japan, but is also held in other Asian countries and regions.
Number of participating
elementary school students

Accumulated
total
participants

approx.

1.24 million

Activities for oral health promotion for adults (industry)• Main Activities of LDH in 2017

Accumulated total participants: approx.

A scene from an elementary school which participatedin the Oral Health Event of Tooth Brushing for Children

23.272 million

Education and instruction focused on
prevention of a periodontal disease
and on maintenance/improvement of“Dental and Oral Health” aimed at
employees of various companies.
Participants: 21,271
Accumulated total participants: approx.

2.092 million

Activities for oral health promotion for the elderly (From 2007)
Provision of support to help maintainoral functions to enable eating with
their own teeth and mouth over a longtime in the futureParticipants: 46,648
Accumulated total participants: approx.

73,000Treatment activities
Implementation of highly-professionaland high-quality treatment andpreventive dentistry activities based on
concept of the “Risk Control Dentistry*”
Diagnosed: 11,171
Accumulated total participants: approx.

1.847 million

Accumulated totals are total numbers since establishment of the LDH (1964)

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

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Lion Sustainability Report 2018

Number of participating
elementary school students• Care for Health and Hygiene During Emergencies

approx.

25,000

Human Rights

It is important to pay attention to health especially in adisaster situation.
Lion creates and distributes pamphlets / posters tittled"Care for Health and Hygine During Emergencies"
providing information on cleanliness and health care.
From 2017, we have started conducting educational
activities for local residents in the areas of all of ourbusiness offices. We will contribute to make efforts inestablishing the cleanliness and hygiene Practices.

Accumulated
total
participants

Organizational
GovernancePrefecture where “KireiKirei” hand soaps are manufactured.
In addition, activities to promote hand-washing habits at
kindergartens and preschools are conducted jointly with ourbusiness partners and are also included as part of corporate
training programs for younger employees, which help improve
our employees’ awareness for community involvement.
Activities to promote hand-washing habits are also conductedin Asian countries where “KireiKirei” products are sold.
We work with local governments as well. Since 2014,
Sakaide City and Lion Chemical Co., Ltd., the production baseof “KireiKirei” hand soap, have been jointly promoting the“KireiKirei City-Sakaide” Project, aiming to spread and establish
cleanliness and hygiene practices and habits among the citizensof Sakaide.

2017
Highlights

Lion has been working on activities to promote proper handwashing habits mainly with the “KireiKirei” brand, aiming thedaily health and comfort of people.
With a policy of “employees voluntarily conducting
activities,” Lion is striving for 100% of employees to participate
in activities to promote hand-washing habits by the year 2050.
During the period between 2012 and 2017, 851 employees(33%) took part in the activities.
During the same period, approximately 25,000 preschoolers
participated in this activities. We conducted activities topromote hand-washing habits at kindergartens, preschools andpublic facilities in the areas where our office sites are locatedacross Japan, Ishinomaki City in Miyagi Prefecture which is adisaster area of the Great East Japan Earthquake and an area
closely connected to our founder,and Sakaide City in Kagawa

L i o n’s
Sustainability

Activities to Establish Cleanliness and Hygiene Practices and Habits

Introduction of websites
Promoting oral health care (Japaneses)
http://www.lion.co.jp/ja/csr/community/oral/

Establishing cleanliness and hygiene practices and habits (Japaneses)
Labor Practices

http://www.lion.co.jp/ja/csr/community/washing/“Care for Health and Hygiene During Emergencies” Pamphlet/Poster (Japanese)
URL http://www.lion.co.jp/ja/emergency-care/

Environmental Communication Initiatives
Through the act of “washing,” Lion has always been deeply involved with water. We are taking action proactively for forest maintenance activities and for
promotion and raising awareness of the utilization of rainwater which is a familiar water resource,as a part of our water resource conservation activities.

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
2017, a total of 154 employees
participated in the forest
maintenance activities as partof new employee training andvoluntary forest improvement
activities (which tooka place
two times).

The “Rainwater Utilization Ideas Contest” has been held since 2011 withthe aim of having elementary and middle school students across Japan
think about ways to use rainwater and realize its importance. In addition tohonoring individuals for their achievements, rainwater tanks were awarded
as group incentive prizes to
two groups which submitted
many outstanding pieces.

Number of participating
employees Accumulated total participants

1,407 employees in total

Number of entries Accumulated total participants

Fair Operating
Practices

Rainwater Utilization Ideas Contest 2017

The Environment

Forest Maintenance Activities at the Lion Forest in Yamanashi

50,435 entries[Lion Rain’s Gift Forum] (Japanese)

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

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

ConsumerIssues[Lion Forest in Yamanashi] (Japanese)

Plant Tours
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.
Chiba

OdawaraOsaka

AkashiCommunity
Involvement andDevelopment

Plants
Details of Plant
Tours in 2017

Total

Number of study tours

89

86

50

89

314

Study tour participants

2,206

1,936

1,211

2,320

7,673

Plant tour at Osaka Plant

Lion Sustainability Report 201858

Third-Party Review
The “Lion Sustainability Report 2018”, publishedalongside the Lion Corporation’s formulation of its new
management vision and medium-term management
plan, retains the fundamental structure of past CSR
Reports while addressing new issues based on recent
trends for disclosure of non-financial information. One
striking point of this report in comparison to those of thepast is a stronger overall awareness of connections withmanagement strategies.
The report begins with a “Message from theManagement” stating the company’s new management
vision for 2030: “Becoming an advanced daily healthcarecompany”. In close connection to the company’s new“The LIVE Plan” medium-term management plan which
is oriented toward this goal, value creation scenarios
which seek to create business values through new unionsof technology and services based on diverse and open
personnel, organizations, and cultures, are explained inclear detail. The new initiatives described in this year’s
report include setting a long-term time scale, clearly
identifying social issues to be addressed by focusing
attention on SDGs Target 3 - “Ensure healthy lives andpromote well-being for all at all ages”, and presenting
value creation scenarios related to invested capital. Thesecan be seen as contents that respond to demands fromthe perspective of ESG investments, which is growing
significantly in influence and importance. Emphasis
is given to the point of contributing to solutions forsocial issues through businesses, and the shift frompassive CSR management to active CSR management(CSV management) is clearly conveyed. The new
establishment of CSV Management Meetings with thecompany’s President as Chairman can be viewed as amethod of reinforcing these points from the perspectiveof corporate governance, which invites high anticipationfor even greater involvement by management in future
CSV promotion and advancement.
In conjunction with the new medium-term
management plan, sustainability material issues are
specified in terms of both risks and opportunities.
These, together with steps to deploy them throughout
the supply chain, shows a strong intention to gain anunderstanding of diverse social issues through theirbusinesses and partners. In particular, we see a firm
declaration to strengthen risk management of humanrights by the year 2020, as an extremely importantstance, since the business of overseas is expected to
expand in the future.
This Sustainability Report can be considered an
ambitious work which maintains its nature of being aneasily-understandable tool for communicating with its
assumed readers - consumers and employees - while also
undertaking the challenge of addressing difficult issues
such as responding to trends toward disclosing recent
non-financial information.

59

Lion Sustainability Report 2018

In the future, we look forward to further steps toclarify the mutual relationships within the new contents
and issues which have been incorporated in this report,
while combining them with prexisitng legacy contents
and issues which have been addressed over the past. For
example, this could include improving the presentationof the point “achieving health management”, indicatedas a key point for the sustainability material issues. Since
the “Health Guidelines” were established at an earlystage and health management systems are in place on
a company-wide cross-departmental basis, we believe
this is a topic which can effectively apply the company’s
distinctive strengths, as it has in its independent
initiatives including programs for preventive dentistry.
For that reason alone, it is regrettable that the KPIs are
set only for the target rate of participation in various
medical examinations at 100%. It may be worthwhile toconsider setting KPI connected to outcomes distinctive
to this company, which place slightly more focus on
the viewpoint of “Enriching the growth foundationthat is our human capital, by arranging environments
where employees can work energetically”. In the daily
commodity market, where it is said that generally,switching costs are low and the competition is high,there is an importance in properly understanding market
needs and being able to act accordingly. There is also ahigh interest in human capital and technical ability as a
key differentiatior to drive innovation. The presentationof the company’s strategies aimed at enhancing humancapital with “health management” as a keyword is seen
as highly meaningful from the aspect of ESG investments.
Organizing issues from such perspectives will lead toadvantageous connections over the medium-term
between sustainability material issues identified fromsocial issues, and the basic strategies of the medium-term
management plan, with great promise for non-financial
values and management strategies to become integrated
just as intended.
By means of this report, which has reached a newstage as a powerful communication tool, I am expectingthat many stakeholders will be able to deepen theirunderstanding of this company’s CSV management andthe social values achieved through it.

Development Bank of Japan Inc.
Executive Officer,
Deputy Chief Research Officer

Keisuke Takegahara

Lion’s Response
Under our founding spirit of “Benefiting Society throughBusiness Activities,” Lion has always been involved insolving social issues that change with the times.
The advance of digital transformation and otherfactors is likely to accelerate changes in our lifestyles andsociety even further hereafter. Therefore, in order to
respond successfully to these changes, this year Lion has
created a new Management Vision for 2030 : “Becoming
an advanced daily healthcare company”, and we areproceeding with “The LIVE Plan", the medium-term
management plan set for the period from 2018 to 2020.
Additionally, starting from January 2018, we havereviewed our internal organizations and meeting
structures and arranged a system for promoting CSV,
as we aim for a management with a longer term
perspective that simultaneously realizes contributions tosustainable society and business growth.
As for linkage between our non-financial information
evaluated from a third-party review and ourmanagement strategies, we have attempted for makethis report even more readily understandable for our
stakeholders, through steps such as indicating our “Value
Creation Model”.
Furthermore, our company have identified 2020
Sustainability Material Issues to be addressed by entire
Lion Group in conjunction with our “The LIVE Plan”,
and have set related objectives to realize sustainable
management. We are proceeding with initiatives
aimed at creating more robust foundation for business,
including enhancements of our risk management systemstarting with the construction of a group system whichplaces the highest respect on human rights, as wellas initiatives intended to create opportunities such asactivities to create healthy living habits for all people.

Participation in External Groups

From here on, with a view to effectively promotemeasures over the entire Group, including its overseas
consolidated subsidiaries, our company will strengthen
our sustainability promotion system while taking further
steps to advance its integration with our management
strategies for the creation of long-term values.
Regarding “reinforcement of health and productivity
management” that have pointed out, Lion is making
efforts to establish health care habits in our employees
and from 2002, we introduced a preventive dentistry
program which applies the unique characteristics of
our company to address this issue. We will consider its
future expansion over the entire Group, including ouroverseas companies. We will also build our health andproductivity management, which will be appropriate
for an advanced daily healthcare company, and proceedwith our enhancement of human capital.
Through dialogues and cooperation with our
stakeholders, Lion will strengthen our initiatives towardsustainability and will promote management to be ahighly-trusted company that can fulfill the expectations
from society.

Director, Senior Executive Officer
Director in Charge of CSV Management Department

Kenjiro Kobayashi

Evaluation and Certification from External Sources

Lion Sustainability Report 201860

Published by

Lion Corporation
Published on: June, 2018
To be published next on: June, 2019

Inquiries

CSV Management Department,
Lion Corporation 3-7, Honjo 1-chome,
Sumida-ku, Tokyo 130-8644, Japan
Website (English) : http://www.lion.co.jp/en/
Tel: +81-3-3621-6275 Fax: +81-3-3625-8625