PURPOSE

Lion Sustainability Website PDF version: From January 1, ����2021 to Present

Some parts also include information about activities conducted outside of the above periods.

* Click each item in the table of contents to move to the corresponding page in this PDF.
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Lion Sustainability Website 2023•

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Lion Sustainability Website 2023

Management Message
Message from Management

Message from the Director Responsible for Sustainability

Make a difference in everyday lives by redesigning habits: ReDesign(Left) Masazumi Kikukawa
Representative Director, Chairman of the Board of Directors(Right) Masayuki Takemori
Representative Director, President and Executive Officer

Since Lion’s founding in 1891, it has striven to help consumers realize health, comfort and cleanliness in everyday living byredesigning habits and providing the various daily commodities necessary for such habits in line with its unchanging
mission of “benefitting society through business activities.”
The COVID-19 pandemic has changed the world enormously. Lifestyles and values have changed in innumerable ways, andmany of these changes are likely to be permanent. At the same time, dealing with global environmental problems cannot be
put off any longer. Northeast Asia is facing a variety of new issues stemming from demographic graying, such as rising
medical costs, and in Southeast Asia, demand for better health and hygiene habits is growing in step with economic
development. In light of such rapid changes in the business environment and to precisely deal with diverse emerging social
issues, continuously generate business value and contribute to society going forward.
Based on our purpose, “Make a difference in everyday lives by redesigning habits: ReDesign,” we formulated a long-term
strategic framework, Vision2030, aimed at achieving our management vision, “Becoming an advanced daily healthcarecompany.”

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Lion Sustainability Website 2023

Vision2030 Long-Term Strategic Framework
Under Vision2030, we are synergistically advancing growth strategies and initiatives that address our Sustainability MaterialIssues to create social and economic value and achieve sustainable corporate value enhancement. Of these, we havepositioned “Creating Healthy Living Habits,” which contributes to the realization of everyday happiness, and “Promoting
Environmental Initiatives for a Sustainable Planet” as our top priority material issues, and we are investing management
resources in these areas accordingly.Habits have great power. Daily chores take up the majority of our time, and bytransforming this drudgery into positive experiences, or positive habits, we can increase the sum total of our happiness.
Specifically, in 2019, we established the LION Eco Challenge 2050 environmental objectives. These objectives put into words
our dedication to working in partnership with all stakeholders to realize a decarbonized, resource-circulating society.We
believe that promoting a wide range of environmentally friendly habits and products that reduce environmental impact in
the home is one effective way that Lion can contribute.
Going forward, we will continue to accelerate our growth strategies by leveraging our strengths of wide-ranging insightgleaned through the redesign of living habits as well as marketing and R&D capabilities based on consumer perspectives. By
doing so, we will contribute to the achievement of the Sustainable Development Goals as well as to health, comfort,
cleanliness and hygiene in everyday living and the realization of a sustainable society.

Masazumi Kikukawa

Representative Director,
Chairman of the Board of Directors

Masayuki Takemori

Representative Director,
President and Executive Officer

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Lion Sustainability Website 2023

We aim to contribute to a sustainable society and generate further businessgrowth with an approach that integrates sustainability into management
strategy.

Kenjiro Kobayashi
Director, Senior Executive Officer

Integrating Sustainability into Management Strategy

To remain socially relevant into the future amid the rapid change in its external operating environment, the Lion Group must
respond boldly and swiftly to help resolve various social issues. We also recognize that maintaining sustainable growthrequires us to meet the expectations of our stakeholders by backcasting—mapping out a route for achieving our goals. The
Group used this approach to consider the entire value chain and stakeholders, and to identify the Sustainability MaterialIssues to be addressed by 2030.
Identifying material issues is merely the first step. The key is how we use these material issues in management and connect
them to the actions of each business. The Sustainability Promotion Council, which I chair, formulates sustainability
strategies related to the environment, society, and governance, makes decisions on specific action plans, and monitors
progress toward medium- to long-term goals. Leveraging the strengths of the Group, I will guide sustainability management
to concentrate management resources on measures that only we can take.

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Evolving and Expanding the Redesign of Living Habits to Grow Our Businesses and Help Resolve Social
IssuesCreating healthy living habits is a top-priority material issue for the Group. We provide products, services and informationthat promote living habits that are directly linked to health, such as tooth brushing and hand washing. As we aim to provide
1 billion people around the world with products, services and information that help to create healthy living habits, a key
issue going forward will be collaboration with overseas Group companies.
Another top-priority material issue, promoting environmental initiatives for a sustainable planet involves using
environmentally friendly products to further the creation of environmentally friendly habits with consumers, such as saving
water and power, using refills and reducing waste. In other words, we will contribute to a decarbonized and resourcecirculating society by providing planet-friendly lifestyles and making daily life more sustainable. In cooperation with local
governments and competitors, we are developing recycling technologies and structuring collection systems for refill
containers. We will continue to enhance these partnerships.
A key feature of the Group is its many contact points with the daily lives of households, so we believe that our approach toresolving social issues should involve providing experiences that redesign everyday rituals to become more natural, easy
and enjoyable. In addition, we will create further business opportunities by using digital technology and data science under
the slogan “The Science of Habits”, for example, by using data to visualize behavioral changes brought about by activities topromote habit formation.

The Images of Creation of Social and Economic Value

Furthermore, we also need to nurture employees who embody our purpose, “Make a difference in everyday lives byredesigning habits: ReDesign.” In January 2023, we introduced a new personnel system for managers that incorporates anidea of job-focused perspective and eliminated the previous seniority-based system for determining job titles. Our goal isfor each leader to map out a clear picture of how they should develop themselves to achieve their aspirations, thusincreasing their motivation and expertise and maximizing the value they create. We will implement various measures that
promote long-term job satisfaction and increase employee engagement.
Going forward, we will continue to promote sustainability management while enhancing social and economic values toimprove corporate value.

Kenjiro Kobayashi

Director, Senior Executive Officer

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Related Information

LION Scope: Special Feature

Habit formation is a perennial theme. Masazumi Kikukawa explains
the importance of unconscious thought. [Japanese]

The Lion Group’s Vision for 2030

Vision for 2030, based on Lion’s Purpose

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Lion’s Sustainability
Basic Approach
Sustainability Management (Implementation Framework)
Value Creation Process

Basic Approach

Upholding its founding spirit of “benefiting society through its business activities,” Lion, in addition to pursuing economic
development, has long considered its impact on the environment and society and worked to address related issues throughits business activities.
At present, we are tackling key management issues to reduce risks and achieve our management vision for 2030 of“Becoming an advanced daily healthcare company.” At the same time, we are practicing management driven by our
purpose, “Make a difference in everyday lives by redesigning habits: ReDesign.” Based on this purpose, the Lion Group willsynergistically address its sustainability material issues and advance its three growth strategies in order to contribute to therealization of a sustainable society and achieve business growth.

The Vision2030 long-term strategic framework

What is Sustainability?

Lion focuses on sustainability for itself and for the world in terms of environmental, social, and economic factors. A
sustainable company is one that considers not only economic development, but also social and environmental impacts as it
implements ongoing business activities based on long-term strategy.

Contributing to the Achievement of the SDGs

The Sustainable Development Goals (SDGs) are a set of common goals for 2030 established by the United Nations (UN)
aimed at the realization of a sustainable world.
The Lion Group’s contribution will mainly be to the realization of SDG 3, “Ensure healthy lives and promote well-being for all
at all ages,” through its products and services. At the same time, by pursuing initiatives aimed at realizing the Vision 2030
long-term strategic framework, we will contribute to the creation of a sustainable world, the ultimate goal of the SDGs.
Lion’s SDG-Related
Initiatives

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Sustainability Management (Implementation Framework)

In order to promote sustainable management, until 2020 we held the Sustainability Promotion Meeting, comprising all
executive directors, including the president, and related departments. In 2021, we revised this implementation system andestablished the Sustainability Promotion Council, which meets twice a year.
We have established three subcommittees under the council, each headed by an executive officer, more than ever before
positioning senior management at the forefront of promoting Sustainability Material Issues. Decisions made by the Council
are reported to the Senior Executive Committee and, as necessary, presented to and discussed by the Executive Committee
and the Board of Directors, before being reflected in the business activities of the business execution departments.

Expectations for Evolving Sustainability Management
The Audit & Supervisory Board makes sustainability a priority theme
each fiscal year. I have been working in the field of sustainability formany years. As such, I look at how issues related to the environment (E)as well as people and society (S) are decided upon in the Lion Group(i.e., governance (G)), including decisions by the Board of Directors. The
Sustainability Promotion Council is an extremely important body as it
gives specific instructions with regard to sustainability issues anddemonstrates leadership in dealing with investments, risk and progress
management, among other issues. The president, the director in chargeof sustainability, directors responsible for other areas and executive
officers in charge of operations are all driven by the same purpose. As
they are serious about their work, conflict can sometimes arise.
However, I am encouraged by the fact that the more often we meet, themore often we are able to come up with various innovative ideas. Goingforward, there is urgent need to disclose non-financial information more
effectively. This is due to the growing realization that addressing ESGrelated issues is directly connected to corporate value over the medium
to long term. Our challenge will be to convey to society and the market
what it is that Lion does and the ways in which it contributes to asustainable society by redesigning habits.

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Atsuko Suzuki
External Audit & Supervisory
Board Member

Lion Sustainability Website 2023

Value Creation Process

In fulfilling its purpose, Lion has built up a portfolio of management resources over many years of sincere dedication to
manufacturing and redesigning habits for the better. To achieve our management vision for 2030, “Becoming an advanced
daily healthcare company,” we will create positive habits for even more people, regions and situations in daily life, with afocus on our four fields of value creation, which emphasize positive habits. Our aim is to increase corporate value by helping
to make daily living and society better.

Sustainability Material Issues and Objectives for
2030

Lion’s History (Sustainability)

Initiatives and External Evaluations

ESG Data and Third-Party Verification

Stakeholder Engagement

Social Contribution Activities

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Sustainability Material Issues and Objectives for 2030
Identifying Material Issues

In 2020, the Lion Group applied the steps below to revise its list of Sustainability Material Issues to address over the coming
decade in order to achieve its goals for 2030, including the realization of the management vision and contributing to therealization of the SDGs. These Sustainability Material Issues are relevant to both the Lion Group and society at large and,with the goal of helping to realize a healthy future for people and the planet, their choice was informed by broad business,environmental and social sustainability perspectives. In identifying these issues, we comprehensively considered the entire
value chain and interests of Lion's stakeholders in order to understand the risks and opportunities each represents.
In particular, we have positioned “Creating Healthy Living Habits” and “Promoting Environmental Initiatives for a
Sustainable Planet” as top priority material issues that we must invest management resources toward to secure acompetitive advantage. In addition, we revised our objectives and other indicators in 2021 due to the COVID-19 pandemic
and drastic changes in the social environment.
Our Approach to Identifying Sustainability Material Issues

Steps for Identifying Sustainability Material Issues

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Risks and Opportunities Related to Sustainability Material Issues in the Value Chain

Lion has classified its Sustainability Material Issues as presenting either risks or opportunities based on considerations of
the entire value chain and its stakeholders.

The Lion Group Sustainability Material Issues and Objectives for 2030

With an eye to achieving its management vision of “Becoming an advanced daily healthcare company” by 2030 andcontributing to the Sustainable Development Goals (SDGs), a set of shared global goals for 2030, the Lion Group has
established the Lion Group Sustainability Material Issues and objectives for 2030.
The Lion Group believes that it is crucial to take a longer-term perspective in order to ensure that it can continue to meet theneeds of society and customers and grow its businesses. In 2021, in light of the COVID-19 pandemic and changes in thesocial environment, we revised our objectives and indicators. Aiming for a higher level of achievement, the 2030 objectives
include quantitative indicators for evaluating our progress.
Taking an integrated approach that incorporates sustainability into management strategy, the Lion Group aims to contributeto the realization of a sustainable society and achieve further business growth.

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Sustainability Material Issues, 2030 Objectives and Indicators,
2022 Results and Measures to 2030
1. Promoting Environmental Initiatives for a Sustainable Planet
2. Creating Healthy Living Habits
3. Promoting Diversity & Inclusion
4. Promoting Work-Life Enrichment
5. Developing Human Resources
6. Improving Employee Health
7. Enhancing the Occupational Safety Management System
8. Respecting Human Rights
9. Building Responsible Supply Chain Management
10. Pursuing Customer Satisfaction and Trust
11. Promoting Risk Management
12. Reinforcing Compliance
13. Enhancing Governance

Promoting Environmental Initiatives for a Sustainable Planet
Material Issue 1

Environment

Top-Priority Material Issues

Objectives
1 Reduce CO2 emissions throughout business activities.
2 Reduce CO2 emissions throughout product lifecycles.
3 Achieve a CO2 emissions reduction effect in excess of Lion’s own emissions to help
society become carbon negative.
4 Promote actively the 3Rs (reduce, reuse, recycle) and renewable activities.
5 Reduce water usage throughout product lifecycles.

Objectives
Reduce CO2 emissions throughout business activities.
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030

CO2 emissions throughout business activities⇒Down 55% compared with 2017 levels (Absolute quantity
Down 13% compared with 2017
(Figure after deducting purchases of carbon credits. 4% reduction if
not deducted.)
Reduce energy usage through energy-saving activities.
Purchase electricity generated by renewable energy sources.

Details
Together with the Environment

Reduce CO2Emissions throughout Business Activities

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ESG Data

Lion Sustainability Website 2023

Objectives
Reduce CO2 emissions throughout product lifecycles.
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030

CO2 emissions throughout product lifecycles⇒Down 30% compared with 2017 levels (Absolute quantity)
Up 12% compared with 2017
Reduce household CO2 emissions from product use through theprovision of environmentally friendly products and services and thepromotion of environmentally friendly habits.
Reduce CO2 emissions at the stage of procurement through supplierengagement and the purchase of raw materials that generate low CO2
emissions.

Details
Together with the Environment

Reduce CO2Emissions throughout Product Life Cycles

ESG Data

Objectives
Achieve a CO2 emissions reduction effect in excess of Lion’s own emissions to help society become carbon
negative.
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030

Contribute to a CO2 emission reduction effect in excess of Lion’s own
emissions (Japan)
Plan to formulate actions and KPIs and verify their effectiveness
Reduce society’s overall CO2 emissions through collaboration withother industry actors and companies.
Reduce household CO2 emissions through provision of environmentallyfriendly products and services.

Details
Together with the Environment

Reduce CO2Emissions throughout Business Activities

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ESG Data

Lion Sustainability Website 2023

Objectives
Actively promote the 3Rs (reduce, reuse, recycle) and renewable resource activities.
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030

Petrochemical-derived plastic use rate⇒70% or less
97% (Japan)
Rate of containers and other packaging using sustainable materials:
3.2%
Reduce usage of petrochemical-derived materials through theincreased use of recycled plastic and biomass materials in products,
containers and packaging.
Continuously promote reduced use and reuse of plastic in products,
containers and packaging.

Details
Together with the Environment

Recycling Resources

ESG Data

Objectives
Reduce water usage throughout product lifecycles
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030

Water usage throughout product lifecycles⇒Down 30% compared with 2017 levels (Per unit of net sales)
Down 7% compared with 2017
Reduce water usage by consumers through the provision of water-saving
products.

Details
Together with the Environment

Reducing Water Use

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ESG Data

Lion Sustainability Website 2023

Creating Healthy Living Habits
Material Issue 2

HealthTop-Priority Material Issues

Objectives
1 Provide opportunities for everyone to practice oral care whenever necessary andfoster oral care habits to promote health for all.
2 Promote the establishment of hygienic habits that prevent bacteria and viruses
from entering the body across all aspects of daily living.

Objectives
Provide opportunities for everyone to practice oral care whenever necessary and foster oral care habits topromote health for all.
Indicators (2030)

Progress(2022 results)

Total number of persons provided with products, services andinformation aimed at creating healthy living habits⇒500 million
Oral care habits: 300 million*
Spreading Awareness of Preventive Dentistry Habits
Japan:
Began services supporting the oral care habits of corporate customers
and senior citizens (Okuchi Plus You and ORAL FIT)
Overseas:
Conducted educational and awareness activities to promote theformation of good tooth brushing habits among kindergartens andelementary school children
Participated in oral care improvement support program sponsored by
the Ministry of Economy, Trade and Industry
Conducted educational and awareness activities to promote oral careduring pregnancy
Putting Preventive Dentistry Habits into PracticeJapan:
Promoted greater frequency of tooth brushing.
35% of population brushed teeth after lunch (target for 2030: 50%)
Promoted greater use of products other than toothpastes andtoothbrushes.
31% of population used dental floss products (target for 2030: 50%)
*Source: Lion survey

Globally Common Measures
to 2030
Details
Creating Healthy Living Habits

Increase range of products and services that promote the creation of
better oral care habits.
Reinforce educational and awareness activities aimed at establishingpreventive dentistry and better oral care habits.
Promote activities to address personal and social challenges throughoral care(Inclusive Oral Care).

Initiatives to Establish Oral Care Habits
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ESG Data
Lion Sustainability Website 2023

Objectives
Promote the establishment of cleanliness and hygiene habits that prevent bacteria and viruses fromentering the body across all aspects of daily living, so that everyone can stay healthy.
Indicators (2030)

Progress(2022 results)

Total number of persons provided with products, services andinformation aimed at creating healthy living habits⇒500 million
Cleanliness and good hygiene habits: 120 million*
Promoting and Establishing Cleanliness and Good Hygiene Habits
through Educational Institutions
Lion Group:
Conducted educational and awareness activities at preschools,
kindergartens and elementary schools to promote hand washinghabits
Received 24,250 entries in the My Bottle Sticker Drawing Contest from 8
countries and regions where we do businessBroadening Coverage of Activities to Support the Establishment ofCleanliness and Hygiene Habits
Japan:
Conducted the Relay Project for Cleanliness in collaboration withshopping districts, local governments and elementary schools
Conducted a project to promote “HAND WASH & HYGINE before meals
at hotels and restaurants”.
*Source: Lion survey

Globally Common Measures
to 2030

Provide products and services that support the establishment of handcleanliness and hygiene habits in daily living.
Provide new customer experiences in all aspects of daily living throughthe provision of products and services that protect customers frombacteria and viruses.
Implement educational and awareness activities to establish
cleanliness and hygiene habits in all aspects of daily living.

Details
Creating Healthy Living Habits

Initiatives to Establish Cleanliness and Hygiene Habits

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Promoting Diversity & Inclusion
Material Issue 3

Emplyoee

Objectives
Enable human resources with diverse values and Ideas to fully express their individuality and abilities andsucceed professionally.
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030

Ratio of women in management ⇒ 30% or more
Employees who feel that employees with diverse values are able tosucceed professionally ⇒ 80% or more
Ratio of women in management: 20%
Employees who feel so: 54% (Japan)
Provide opportunities for employees to deepen their understanding ofdiverse values.
Create systems and mechanisms for diverse human resources tosucceed professionally.

Details
Together with Employees

Promoting Diversity & Inclusion

ESG Data

Promoting Work-Life Enrichment
Material Issue 4

Emplyoee

Objectives
Create an environment that helps employees fulfill their ambitions through synergy between work andprivate life.
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030

Employees who feel that life outside of work (role at home and activities
outside the office) has a positive impact on work ⇒ 75% or more
53% (Japan)
Create an environment that enables employees to fulfill their life
ambitions and achieve their ideal lifestyles.

Details
Together with Employees

Promoting Work-Life Enrichment

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ESG Data

Lion Sustainability Website 2023

Developing Human Resources
Material Issue 5

Emplyoee

Objectives
Foster human resources who generate dynamism to realize innovative change by creating environmentsthat allow all employees to exercise their diverse abilities to the fullest and embrace challenges.
Employees who are using diverse educational programs (Lion Career
Village) for individualized skill acquisition and ability
development⇒100％

Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030
Details
Together with Employees

57%
Introduce e-learning system and curriculum that meet the needs ofoverseas Group companies.
Create mechanisms that will be used to provide contents for learning
opportunities on an ongoing basis.

Developing Human Resources

ESG Data

Improving Employee HealthMaterial Issue 6

Emplyoee

Objectives
Support mental and physical healthcare for employees to reinforce Group human resources and achievesustainable corporate growth.
Indicators (2030)
Progress(2022 results)

Employees getting dental checkups ⇒100％
Absenteeism ⇒Improve from the 2021 level
Employees getting dental checkups: 88% (Japan)

Note: Support for dental checkups is provided (Overseas)

Absenteeism: 0.7% (Lion Corporation in Japan; unchanged from 2021)
Note: Calculation method under consideration (Overseas)

Globally Common Measures
to 2030

Use a self-administered daily oral care program and regular dental
checkups to create an environment that allows all employees toimplement a PDCA cycle and to provide information and learning
opportunities regarding oral self-care.
Provide opportunities for management to learn about checking themental health of subordinates and for all employees to learn aboutcaring for their own mental health.
Improve health literacy by providing information that helps employees
understand their own health conditions and future risks, as well as
what preventative actions to take in their daily lives.

Details
Together with Employees

Improving Employee Health
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ESG Data
Lion Sustainability Website 2023

Enhancing the Occupational Safety Management System
Material Issue 7

Emplyoee

Objectives
Enhance systems to ensure compliance with occupational safety and health laws and regulations and to
enforce safety awareness thoroughly for the safety and peace of mind of employees and outside partners
working on site.
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030
Details
Together with Employees

Participation in safety education and training ⇒Implement as planned(100%) at work sites
Compliance with occupational safety and health laws and regulations
Serious accidents and incidents ⇒Zero
Participation in training: 100% as planned
Serious accidents and incidents: Zero
Provide opportunities to learn about safety and disaster prevention,and implement activities to promote understanding of basic safety
activities.
Build mechanisms for exchanging safety information, and proactively
disclose information on levels of workplace safety based on the
management of records of occupational accident frequency.
Enhancing the Occupational Safety Management System

Respecting Human Rights
Material Issue 8

Human Rights

Objectives
Ensure respect for the human rights of all stakeholders affected by Group business activities, in line with
the LION Human Rights Policy
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030
Details
Respect for Human Rights

Human rights due diligence implementation for material human rights
issues ⇒100％
Human rights due diligence implementation
Lion Group: 100%
Suppliers: 68%
Build a mechanism for addressing human rights issues.
Identify material human rights risks and verify how those affected are
negatively impacted.
Execute and monitor measures for addressing human rights risks thathave been identified.
Proactively disclose status of response to human rights due diligence.

Measures to Prevent Human Rights Abuse（Human Rights Due Diligence）
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Building Responsible Supply Chain Management
Material Issue 9

Supply Chain

Objectives
Implement sustainable procurement with zero tolerance for human rights and labor problems (includingchild labor and forced labor) or environmental destruction in line with the Sustainable Material
Procurement Policy and Lion Group Supplier CSR Guidelines.
Indicators (2030)

Progress(2022 results)

Globally Common Measures
to 2030

Procurement of third-party certified paper and pulp (FSC, PEFC, etc.)
and palm oil, palm kernel oil and their derivatives (RSPO, etc.) ⇒100%
Procurement of third-party certified paper and pulp (FSC, PEFC, etc.)
and palm oil, palm kernel oil and their derivatives (RSPO, etc.) fromsuppliers that support efforts aimed at zero deforestation ⇒100%
Ratio of certified raw materials procurement
Japan:
Certified paper and pulp: 65%(item ratio)
Certified palm oil and palm kernel oil derivatives: 99%(based on key raw materials)
Lion Group: Certified paper and pulp: 17%(item ratio)
Certified palm oil and palm kernel oil derivatives: 48%(based on key raw materials)
Ratio of suppliers supporting zero deforestation
Japan:
48%
Lion Group: 39%
Create and promote a sustainable procurement system in cooperation
with supplier

Details
Together with Supply Chains

Aiming for Sustainable Raw Material Procurement

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ESG Data

Lion Sustainability Website 2023

Pursuing Customer Satisfaction and Trust
Material Issue 10

Customer

Objectives
Promote and reinforce customer-oriented business activities by improving customer support quality andthe value of products and services.
Indicators (2030)
Progress(2022 results)

Globally Common Measures
to 2030

Reflection of customer opinions in all products and services so that
customers will continue to choose them
To promptly respond to customer comments on social media, welaunched a social media risk management manual in January 2022 andconducted training to deal with online flaming in May 2022 (Japan)
We improved the accessibility of the corporate website through a site
renewal in June 2022 (Japan)
Evolve the activities of customer response departments by steadily
promoting three steps: Understand the current situation Formulate
plans Promote activities
Create an environment for improving customer relationships andexpanding the range of problem resolution methods.
Create and implement a system for reflecting customer feedback in
products and services.

Details
Ensuring Product Safety and Reliability

Initiatives to Respond to Our Customers

Promoting Risk Management
Material Issue 11

GovernanceObjectives
Build a comprehensive and exhaustive risk management system for identifying and quickly andappropriately dealing with risks to achieve sustainable corporate growth.
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030

Disclosure of the results of monitoring significant business risks andprogress in implementing reduction measures ⇒At least once a year
Disclosed once
Build and raise awareness of a management system that includes
overseas Group companies.
Use a consistent format for investigating risks and implement
countermeasures.
Share information on progress of response through reports to theBoard of Directors once a year.

Details
Risk Management
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Reinforcing Compliance
Material Issue 12

GovernanceObjectives
Reinforce effective initiatives to instill compliance awareness and thus earn and maintain the trust ofsociety.
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030
Details
Compliance

Participation in compliance education and training ⇒Implement asplanned (100%) at work sites
Serious compliance violations ⇒Zero
Participation in training: 100% as planned
Serious compliance violations: Zero
Build and enhance a compliance system that includes overseas Group
companies.
Further inculcate compliance through ongoing implementation ofmanagement and employee training and questionnaires, etc.
Improve Group-wide risk perception and accelerate risk response by
designating compliance managers at overseas Group companies andbuilding a global hotline.

ESG Data

Enhancing GovernanceMaterial Issue 13

GovernanceObjectives
Build a sound, fair, transparent and highly effective governance system to enable sustainable corporate
value enhancement.
Indicators (2030)
Progress(2022 results)
Globally Common Measures
to 2030

Disclosure of the results of the establishment and operation of theinternal control system ⇒At least once a year
Improvement in evaluations from external organizations⇒Continuously improve from the 2020 onward
Disclosed once
As in 2021, continued activities to improve evaluation results
Evaluate and disclose results of the operation of the current internal
control system.
Clarify status of establishment of internal control systems at overseas
Group companies and evaluate their operation.
Continuously and proactively disclose governance-related nonfinancial information.

Details
Basic Approach to Corporate Governance
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ESG Data and Third-Party Verification
Environmental Data
Third-Party Verification (Environment)
Third-Party Verification (Society)
Governance Data

Social Data

Environmental Data
Overview of Environmental Burden Created by Business Activities[Scope of Data] Lion and consolidated subsidiaries[Period Covered] January 2022 to December 2022: However, data for PRTR-designated chemical substances is for April 2022
to March 2023
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CO2 Emissions from Business Activities
Domestic
Absolute quantity

Unit

2017

Thousandt-CO2%

Reduction from 2017
Overseas

Unit

Reduction from 2017

2020

77
—

70
—

2017

Thousandt-CO2%Absolute quantity

2019

2021

67
—

2019

74
5

2020

94
—

93
—

2022

73
5

2021

96
—

2022

86
8

77*1
19

*1 Excludes carbon credit purchases. Including these, the amount is 92,000 tons, a 2% reduction.
Domestic and overseas total
Absolute quantity
Reduction from 2017

Unit

2017

Thousand
t-CO2
%

2019

171
—

2020

163
—

2021

163
—

2022

160
7

150*2
13

*2 Excludes carbon credit purchases. Including these, the amount is 165,000 tons a 4% reduction.

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Total Energy Consumption in Business Activities
Unit

Domestic
Overseas
Domestic and overseas total

2018

2019

840
1,183
2,509

TJ
TJ

817
1,118
2,404

2020

2021

799
1,139
2,409

2022

841
1,275
2,632

839
1,143
2,507

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Total renewable and Non-Renewable Energy Consumption in Business Activities
Unit
Total non-renewable energy
consumption
Total renewable energy
consumption
Total renewable energy
consumption/
total energy consumption

Domestic
Overseas
Domestic andoverseas total
Domestic
Overseas
Domestic andoverseas total
Domestic andoverseas total

2018

GWh

233
329
562
0.04
0
0.04

%

0.01

GWh
GWh
GWh

28

2019

227
310
537
0.04
0.01
0.05
0.01

2020

222
316
538
0.04
0.01
0.05
0.01

2021

233
313
546
0.18
42
42
7.12

2022

232
316
549
0.45
1
1.8
0.33

Target for
2022

—
—
540
—
—
—
—

Lion Sustainability Website 2023

Greenhouse Gas Emissions throughout the Supply Chain
Scope 1
Scope 2

Scope 3

Unit

%
%
%
%
%

Purchased goods and services
Capital goods
Fuel- and energy-related activities
not include in Scope 1 or Scope 2
Upstream transportation anddistribution
Waste generated in operations
Business travel
Employee commuting
Downstream transportation anddistribution
Processing of sold products
Use of sold products
End-of-life treatment of soldproducts
Investments

2017

%
%
%
%
%
%
%
%
%
Million tCO2

Total

2019

1.6
2.1
21.8
0.8
0.5
3.4
0.1
0.1
0.1
0.1
5.3
54.2
9.5
0.4
4.62

1.6
2.1
20.4
1.3
0.4

2020

4.6
0.1
0.1
0.1
0.2
2.6
55.8
10.4
0.6
4.50

1.5
1.9
23.1
2.5
0.6

2021

4.3
0.3
0.1
0.0
0.2
1.8
52.8
10.2
0.7
4.83

1.7
1.5
23.5
1.1
0.6

2022

3.8
0.4
0.0
0.1
0.2
2.0
54.5
9.9
0.6
4.92

1.5
1.8
23.7
1.2
0.6
3.9
0.1
0.0
0.0
0.2
2.2
54.3
10.0
0.5
5.03

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Notes: Scope: Lion and domestic and overseas consolidated subsidiaries
Scope 1: Direct emissions from operating sites
Scope 2: Indirect emissions from the generation of purchased energy (electricity generation, etc.)
Scope 3: Emissions from the supply chain not included in Scope 1 or Scope 2

Scope 1 and 2 Greenhouse Gas Emissions from Operating Sites
Domestic
Scope 1
Scope 2 (location basis)

Scope 1 + 2 (location basis) total
Scope 2 (market basis)
Scope 1 + 2 (market basis) total
Amount of carbon credits purchased
Overseas
Scope 1
Scope 2 (location basis)
Scope 1 + 2 (location basis) total
Scope 2 (market basis)
Scope 1 + 2 (market basis) total
Amount of carbon credits purchased

Unit

Thousandt-CO2
Thousandt-CO2
Thousandt-CO2
Thousandt-CO2
Thousand
t-CO2
Unit

Thousandt-CO2
Thousandt-CO2
Thousandt-CO2
Thousandt-CO2
Thousand
t-CO2

2017

2017

22
55
77

2019

21
52
73

2020

19
50
70

2021

21
52
73

2022

21
51
72

55

50

48

52

52

77

70

67

74

73

0

0

0

0

0

51
43
94

2019

50
43
93

2020

54
42
96

2021

64
22
86

2022

56
36
92

43

43

42

22

36

94

93

96

86

92

0

0

0

0

16

29

Lion Sustainability Website 2023

Domestic and overseas total

Scope 1
Scope 2 (location basis)

Scope 1 + 2 (location basis) total
Scope 2 (market basis)
Scope 1 + 2 (market basis) total
Amount of carbon credits purchased

Unit

Thousandt-CO2
Thousandt-CO2
Thousandt-CO2
Thousandt-CO2
Thousand
t-CO2

2017

73
98
171

2019

2020

70
95
165

2021

73
93
166

85
74
160

2022

76
88
164

Target for 2022

85
74
—

98

93

90

74

89

74

171

163

163

160

165

—

0

0

0

0

0

16

Notes: Scope 1：Direct emissions from operating sites
Scope 2：Indirect emissions from the generation of purchased energy (electricity generation, etc.)

Raw Material Usage (Domestic Household Products)
Unit

Raw material usage

Thousand
tons

2018

2019

251

2020

245

2021

250

2022

252

233

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Container and Packaging Material Usage (Domestic Household Products)
Plastic
Corrugated cardboard
Cardboard
Glass
Metals
Total

Unit

2018

Thousandtons
Thousand
tons

18
24
6
6
0.2
54

2019

20
26
6
6
0.2
57

2020

20
27
5
5
0.1
58

2021

19
27
5
6
0.1
57

2022

18
27
5
6
0.1
56

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Container and Packaging Material Usage (Domestic and Overseas Total Household Products)
Plastic
Corrugated cardboard
Cardboard
Glass
Metals
Total

Unit

Thousandtons
Thousand
tons

Water Usage (Water Withdrawal) in Business Activities
Domestic
Overseas
Total

2018

Unit

Thousandm3
Thousand
m3

34
56
8
6
0.2
105

2017

917
670
1,586

2019

2019

37
57
9
6
0.2
110

862
706
1,568

2020

2020

42
59
13
5
0.1
119

823
713
1,536

2021

2021

43
58
13
6
0.1
120

920
704
1,624

2022

36
56
7
6
0.1
105

2022

940
683
1,623

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30

Lion Sustainability Website 2023

Water Usage (Water Withdrawal) by Source
Tap water

Domestic
Overseas

Industrial water

Domestic
Overseas

Groundwater

Domestic
Overseas

Rain water

Domestic
Overseas

Unit

Thousandm3
Thousandm3
Thousandm3
Thousandm3
Thousandm3
Thousandm3
Thousandm3
Thousand
m3

Total

Total

Total

Total

Wastewater Discharge in Business Activities

Unit

Domestic
Overseas

Thousandm3
Thousandm3

Total

Wastewater Discharge by Destination
Sewage systems
Sea areaRiver
Other (industrial park treatment
facilities)

Domestic
Overseas
Total
Domestic
Overseas
Total
Domestic
Overseas
Total
Domestic
Overseas
Total

2017

2017

339
645
983
538
25
563
38
0
38
1
0
1

526
172
699

Unit

Thousand m3
Thousand m3
Thousand m3
Thousand m3
Thousand m3
Thousand m3
Thousand m3
Thousand m3

2019

353
681
1,033
507
25
532
0
0
0
2
0
2

2019

448
190
638

2020

2021

343
690
1,033
479
23
502
0
0
0
2
0
2

2020

2021*

2022

387
689
1,076
507
15
522
25
0
25
2
0
2

2021

428
183
611

302
64
366
118
0
118
53
44
97
0
103
103

365
655
1,020
529
28
557
44
0
44
2
0
2

2022

474
211
684

2022

512
180
692

322
74
396
130
0
130
60
5
65
0
101
101

* Disclosed from 2021

31

Lion Sustainability Website 2023

Breakdown of Water Use over the Life Cycles of Lion Products
Raw material procurement
Production
Transport
Use by consumers
Disposal by consumers

Unit

％
%
%
%
%

2019

2020

19.3
0.1
0.0
76.8
3.8

2021

19.3
0.1
0.0
76.2
4.4

2022

19.4
0.1
0.0
76.2
4.3

19.8
0.1
0.0
75.8
4.3

* Scope: Lion and domestic and overseas consolidated subsidiaries

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Water Use over the Life Cycles of Lion Products
Unitmillion m3
thousandm3/million
Usage intensity per unit net sales
yenDecrease in usage intensity per unit net sales%
from 2017
Water Usage

2017

2,178

2019

2,230

2020

2,273

2021

2,291

Overseas
Total Waste Generation
Total Waste Consigned to Final Disposal in
Landfills
Total Resources Recovered
Domestic and overseas total
Total Waste Generation
Total Waste Consigned to Final Disposal in
Landfills
Total Resources Recovered

Unit

2018

Thousand
tons
Unit

2018

Thousand
tons
Unit

Thousand
tons

2,303

6.36

—

—

6.26

5.91

0

—

—

2

7

Total Waste Generation, Total Waste Consigned to Final Disposal in Landfills and Total Resources Recovered
Domestic
Total Waste Generation
Total Waste Consigned to Final Disposal in
Landfills
Total Resources Recovered

2022

8.29
0.01
3.16
4.49
2.83
3.59

2019

2019

8.59
0.01
4.05
4.15
1.04
2.76

2020

10.43
0.01
3.13

2020

3.96
0.74
3.13

2021

2021

9.08
0.01
3.73
3.89
0.54
3.22

2022

11.22
0.00
3.22

2022

2018

2019

2020

2021

2022

2018

2019

2020

2021

2022

12.79
2.83
6.75

12.74
1.05
6.81

14.39
0.75
6.26

12.97
0.54
6.95

4.19
0.38
3.15

15.41
0.38
6.37

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Waste Disposal by Method (Domestic + Overseas)
Recycled or reused
Landfill
Incinerated (with energy recovery)
Incinerated (without energy recovery)
Disposal method unknown

Unit

Thousand
tons

12.93
2.83
3.42
0.14
0.00

32

14.55
1.05
3.64
0.09
0.00

16.38
0.81
3.22
0.13
0.00

15.15
0.65
3.49
0.46
0.00

17.56
0.38
3.20
0.44
0.00

Lion Sustainability Website 2023

Management of Chemical Substances
PRTR-Designated Substance Emissions (Domestic)
PRTR-Designated Substance Emissions

Unit

Tons

2018

18

2019

2

Emissions of Nitrogen Oxides (NOX), Sulfur Oxides (SOX) and Particulate Matter
Domestic
Emissions of Nitrogen Oxides (NOX)
Emissions of Sulfur Oxides (SOX)
Particulate Matter
Overseas
Emissions of Nitrogen Oxides (NOX)
Emissions of Sulfur Oxides (SOX)
Particulate Matter
Domestic and overseas total
Emissions of Nitrogen Oxides (NOX)
Emissions of Sulfur Oxides (SOX)
Particulate Matter

VOC Emissions (Domestic)
Volatile organic compound (VOC) emissions

COD in Business Activities
Domestic
Overseas
Total

Unit

2018

Tons
Unit

2018

Tons
Unit

2018

Tons

Unit

2018

Unit

2018

Tons

Tons
Tons

28
4
1
57
1
13
85
5
14

78

14
38
52

2019

2019

2019

2019

2019

25
3
1
107
1
13
132
5
15

67

18
41
59

2020

2020

2020

2020

2020

2020

2

29
4
1
71
2
8
100
6
9

68

20
76
96

2021

2021

2021

2021

2021

2021

3

27
3
1
33
1
58
60
5
59

69

22
77
100

2022

2022

2022

2022

2022

2022

2

26
3
1
31
3
26
56
6
28

57

28
18
47

* Total organic carbon value for Lion Corporation (Korea) in and after 2021.

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33

Lion Sustainability Website 2023

Environmental Accounting

Based on the Ministry of the Environment’s guidelines, every year we calculate and disclose the environmental conservation
cost and the economic benefits (real effect) of environmental conservation measures for the entire domestic Lion Group.
(January 2022 to December 2022)
Breaking down total environmental conservation cost in 2022, although investment (capital expenditure) decreased
approximately ¥1,34 billion year on year, overall cost decreased approximately ¥1,21 billion.
Environmental Conservation Cost
Category
Business area cost
Upstream/downstream cost
Administration cost
R&D cost
Social activity cost
Environmental remediation
cost
Domestic Group total(Millions of yen)
Key activity

Pollution prevention
Global environmental conservation
Resource recycling
Environmentally friendly productsContainer/packaging recycling
ISO 14001 registration, environmental education
R&D of environmentally friendly products, etc.
Environmental improvement measures, donations toorganizations
Pollution burden duties, etc.
YoY

January 2022 to December 2022
Investment
Cost

18
361
41
2,982
—
0
64
0

273
3,632
400
2,990
782
658
983
8

0
3,466
-1,340

5
9,732
1,209

Economic Benefit Associated with Environmental Conservation Measures
Effects
Cost reduction due to energy saving
Cost reduction due to resource saving
Reduced water utility cost
Waste disposal reduction*(Millions of yen)
YoY reduction-1,102.8
47.0
-3.6
-73.9

* Includes cost of sales of valuable waste

34

Lion Sustainability Website 2023

Environmental Efficiency

Every year, Lion calculates its environmental efficiency using the formula below to evaluate how efficient its businessactivities are in terms of the environmental burden they create. We continually strive to improve environmental efficiency.

* Environmental impact (harm) is calculated as a monetary amount using the Life-cycle Impact assessment Method based on Endpoint
modeling (LIME).

Environmental Efficiency and Monetary Value of Environmental Burden (comparison with 2005)
Monetary value of environmental burden(comparison with 2005)
Environmental efficiency

Unit

%

2018

74
374

2019

79
350

2020

84
340

2021

84
344

2022

90
326

* The monetary value of environmental burden was calculated using the LIME2 integrated coefficient list (July 1, 2010 version).

Production Site Environmental Data

Lion and domestic consolidated subsidiaries （PDF：7KB）
Overseas consolidated subsidiaries （PDF：60KB）

Certification under ISO 14001 (2015 Version)
8 locations
5 locations

Domestic
Overseas

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35

Lion Sustainability Website 2023

Conducting Third-Party Verification (Environment)

To ensure the transparency and accuracy of its environmental data, the Lion Group obtains third-party verification opinions
regarding data on its greenhouse gas emissions (Scope 1 and Scope 2 and Scope 3 some categories), energy consumption,
and water withdrawal and discharge from SGS Japan Inc. Most recently, the Group obtained third-party opinions regarding
its environmental data for 2022.
Going forward, we will seek to put third-party opinions to good use and enhance accuracy.

Verification Opinion

Verification Opinion （PDF：750KB）

PRTR-Designated Substance Emissions

2022 PRTR-designated substance emissions data for production sites (domestic group companies)

Industrial Waste Disposal Facility Maintenance and Management Data
Chiba Plant

2023 Maintenance and Management Data (updated July 26, 2023) （PDF：88KB）[Japanese]
2022 Maintenance and Management Data (updated May 19, 2023) （PDF：88KB）[Japanese]
2021 Maintenance and Management Data (updated April 26, 2022) （PDF：98KB）[Japanese]2020 Maintenance and Management Data (updated April 23, 2021) （PDF：107KB）[Japanese]36

Lion Sustainability Website 2023

Social Data
Employee Data
Scope: Lion Corporation + employees on loan / the Lion Group (Lion Corporation + domestic and overseas Group
companies; employees on loan from Lion Corporation are counted only for Lion Corporation). All as of December 31.

Diversity & Inclusion
Lion Corporation(including employees on loan)
Lion Group

Male
FemaleMale
FemaleLion Corporation(including employees on loan)
Lion Group
Lion Corporation(including employees on loan)
Lion Group

Below 30 y/o
30-50 y/oOver 50 y/oBelow 30 y/o
30-50 y/oOver 50 y/oLion Corporation(including employees on loan)

MaleFemaleLion Group%

Lion Corporation(including employees on loan)
Lion Group%%

Lion Corporation(including employees on loan)

Number%Lion Corporation(including employees on loan)
Lion Corporation(excluding employees on loan)
Lion Group

Number%Number%2018
Employees

2019

2020

2021

2022

2,827
1,062
-

2,237
1,044
-

2,355
1,205
-

2,347
1,238
4,454
2,944

2,317
1,270
4,425
2,979

27.3%
-

31.8%
-

33.8%
-

34.5%
39.8%

35.4%
40.2%

-

-

16%
47%
37%
21%
52%
27%

16%
46%
38%
20%
53%
27%

16%
46%
38%
19%
53%
28%

63
33

42
34

54
33

46
38

35
30

-

-

86.4%

86.4%

86.4%

-

-

66.2%
73.4%

77.9%
75.1%

65.9%
72.9%

210
6.6%

207
6.3%

243
6.8%

293
8.2%

343
9.6%

512

400

196

130

104

77
2.8%
-

75
2.7%
94
1.3%

77
2.7%*1127
1.7%

79
2.8%*1131
1.8%Female employee ratio

Ratios of employees by age group

New hires (new graduates)

Ratio of companies with an independent trade union or collective bargaining
agreements
Ratio of employees represented by an independent trade unions or covered bycollective bargaining agreements

Re-hired retirees
Temporary employees

Employees with disabilities

76
2.8%
-

37

Lion Sustainability Website 2023

Lion Corporation(including employees on loan)

MaleFemaleLion Corporation(including employees on loan)

Lion Corporation(including employees on loan)

Number%Lion Corporation(including employees on loan)

Number%Number%Lion Corporation(including employees on loan)
Lion Group
Lion Corporation(including employees on loan)
Lion Group
Lion Corporation(including employees on loan)
Lion Group
Lion Corporation(including employees on loan)
Lion Group
Lion Corporation(including employees on loan)
Lion Group

Number%Number%Number%Number%Number%Number%Number%Number%Number%Number
%

2021

2022

19.6
16.8

20.1
15.1

19.7
14.0

19.5
14.1

19.6
14.2

-

4.6%

2.4%

2.8%

3.3%

Total employee turnover rate*2

Voluntary employee turnover rate

Lion Corporation(including employees on loan)
Lion Group

Lion Group

2018
2019
2020
Average service years (excluding rehired retirees)

-

-

1.2%
3.0%

2.3%
4.9%

1.6%
5.5%

2
0.80%

8
3%

10
4%

4
1.60%

6
2.42%

76
7.4%
-

81
9.2%
-

83
9.1%
-

93
10.3%
289
20.4%

98
11.1%
267
19.6

-

-

-

2
12.5%
47
40.2%

2
9.1%
44
38.9%

-

-

-

91
10.3%
242
18.6%

96
11.2%
223
17.8%

-

-

-

163
27.8%
232
28.1%

180
31.4%
231
30.2%

-

-

-

36
9.9%
154
24.0%

37
10.5%
147
23.1%

-

-

-

19
11.8%
39
16.8%

19
12.3%
40
16.3%

Employees who resigned within three years of entering the Company
Women in all management positions*3

Women in top management positions

Women in low- and mid-level management positions

Women in junior management positions*4

Women in management positions with revenue-generating functions

Women in STEM-related positions

38

Lion Sustainability Website 2023

Lion Corporation(including employees on loan)

Lion Group

Male directors
Female directors
Male external
directors
Female external
directors
Male employees inmanagement
positionsFemale employees
in management
positionsMale employees in
non-management
positionsFemale employees
in nonmanagement
positionsMale employees inmanagement
positionsFemale employees
in management
positionsMale employees in
non-management
positionsFemale employees
in nonmanagement
positions
Users

2018
2019
2020
2021
2022
The percentage of average salary of female employees against that of male
employees (gender pay gap)

-

-

100%
100%

100%
100%

100%
100%

-

-

100%

100%

100%

-

-

100%

100%

100%

-

-

89%

89%

93%*5

-

-

100%

100%

100%

-

-

76%

79%

79%*5

-

-

100%

100%

100%

-

-

88%

93%

97%

-

-

100%

100%

100%

-

-

90%

91%

89%

17

2

0

8

Regionally based employees

17*1 Uses the standard calculation for the domestic hiring rate
*2 Total employee turnover rate number should be the sum of the Voluntary employee turnover and the involuntary employee turnover rate
(such as retirement, end of term, death)*3 Total of those in top-level (equivalent to Executive General Managers, Deputy Executive General Managers, etc., excluding the CEO anddirectors) and mid-level and low-level (equivalent to General Managers, managers, etc.) management positions*4 Equivalent to supportive roles, such as assistant managers, etc.
*5 Verified by a third party

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39

Lion Sustainability Website 2023

Work-Life Enrichment
Lion Corporation(including employees on
loan)

Male
FemaleLion Corporation(including employees on
loan)

Male
FemaleLion Corporation(including employees on loan)

2018
2019
Employees who took childcare leave

Users
Days taken

Lion Corporation(excluding employees on
loan)

Overall response
rate
OverallMale
FemaleBelow 30 y/o
30–39 y/o
40–49 y/o
50–59 y/o
60 y/o and above
Non-management
positionsManagement
Positions(Including officers)

2022

13
61

32
78

54
84

55
77

0
64

0
66

0
77

0
78

0
65

13.7

11.2

9.2

12.5

13.8

74.0%

68.0%

65.9%

69.2%

13
16

15
19

0
-

0
-

0
-

91.5%
96.2%
97.2%
94.5%
94.1%
94.8%
95.3%
97.7%
98.1%
95.1%

85.8%
95.7%
96.5%
94.3%
94.0%
93.9%
96.1%
95.7%
98.0%
94.4%

83.0%
97.3%
97.5%
96.8%
95.3%
96.7%
96.8%
97.9%
97.2%
96.6%

84.3%
80.5%
84.3%
77.0%
74.9%
78.9%
79.0%
84.6%
85.4%
77.5%

89.5%
77.1%
78.2%
78.1%
71.9%
76.9%
75.9%
79.5%
82.1%
74.9%

98.5%

98.7%

98.8%

89.6%

85.1%

Employees who took shorter work hours for childcare
Average overtime per month [hours]

60.3%

Lion Corporation(including employees on
loan)

2021

16
53

Annual paid leave used

Lion Corporation(including employees on loan)

2020

Volunteer leave used

Employee Awareness and Behavior Survey
Employees who take pride in their work** Because the rate of employees answering that they took pride in their work neared 100% in 2020, the survey options were changed toenable Lion to gather data to seek further improvement

More about related initiatives

40

Lion Sustainability Website 2023

Developing Human Resources
Lion Corporation(including employees on loan)
Lion Group

Lion Corporation(including employees
on loan)Lion Group

Employees below 30 y/o
Employees 30–50 y/o
Employees 50 y/o and above
Male
FemaleTop management positions
Low- and mid-level
management positions
Junior management positions
Employees below 30 y/o
Employees 30–50 y/o
Employees 50 y/o and above
Male
FemaleTop management positions
Low- and mid-level
management positions
Junior management positions

Lion Corporation(including employees on loan)
Lion Group

Lion Corporation(including employees
on loan)Lion Group

Employees below 30 y/o
Employees 30–50 y/o
Employees 50 y/o and above
Male
FemaleTop management positions
Low- and mid-level
management positions
Junior management positions
Employees below 30 y/o
Employees 30–50 y/o
Employees 50 y/o and above
Male
FemaleTop management positions
Low- and mid-level
management positions
Junior management positions

2018
2019
2020
Average hours per FTE of training and development

2021

2022

-

-

14.6
12.1

52.8*131.0*1

58.1
34.9

-

-

-

97.7
49.3
54.5
49.2
59.8
39.7
83.3
42.9
44.2
26.3
36.6
30.1
30.3
21.1
60.4
33.4

93.1
55.2
46.3
66.9
41.9
281.5
128.5
18.7
44.1
31.7
34.1
40.9
26.1
63.8
95.0
16.8

-

-

¥52,300¥29,300¥67,100¥36,700¥94,800¥51,400---¥67,100¥107,700¥24,100¥70,800¥60,000¥65,000¥105,000¥44,000¥43,500¥46,700¥16,900¥41,300¥29,200¥33,700¥76,800¥33,500¥288,300¥82,900¥27,700¥98,300¥87,500¥643,500¥176,600¥182,900¥120,000¥40,700¥20,400¥55,900¥41,900¥108,200¥127,600¥139,200

Average hours per FTE of training and development breakdown

Average amount spent per FTE on training and development

Average amount spent per FTE on training and development breakdown

41

Lion Sustainability Website 2023

Coverage of the MBO
system*2 at Lion
Corporation

Coverage of the MBO
system: % of all
employees

Top management positions
Low- and mid-level
management positions
Junior management positions
Employees in nonmanagement positions
Top management positions
Low- and mid-level
management positions
Junior management positions
Employees in nonmanagement positions

Lion Corporation(including employees on loan)
Lion Group

2018
2019
Type of individual performance appraisal

-

2020

2021

2022

○
○
○
○

○
○
○
○

○
○
○
○

-

-

-

55.7%
95.4%
94.6%
62.1%

57.3%
95.5%
94.9%
63.6%

Percentage of open positions filled by internal candidates (internal hires)*3

-

-

88.5%
49.2%

69.0%
55.7%

53.3%
94.8%
94.4%
66.2%
89.1%
67.6%

*1 Figures for 2021 increased due to the inclusion of divisional training and development hours*2 MBO: Management by Objectives*3 Percentage of internal hires: Internal hires / (external mid-career hires + internal hires)

More about related initiatives

42

Lion Sustainability Website 2023

Key Health Indicators

Physical health

Lion Corporation(including
employees on loan)

Living habits

Mental health

Health history

Rate of employees getting regular
health checkups
Rate of employees getting necessary
follow-up examinations
Rate of employees requiring specifichealth guidance related to metabolic
syndrome (ages 40 and over)Rate of employees getting specifichealth guidance related to metabolic
syndrome (ages 40 and over)Rate of employees maintaining ahealthy body weight
Employee smoking rate
Rate of employees who habitually
exercise
Proportion of employees who are
sufficiently rested after sleep
Proportion of employees who eat
breakfast habitually
Rate of employees who habituallydrink alcoholStress level check implementation
rate
Rate of employees with high stresslevels
Proportion of employees who
respond that they “mostly
understand” or “understand well”
their health checkup results
Proportion of employees who
respond that they “know what todo” or “mostly know what to do” toimprove their health based on theirhealth checkup results

2020

100.0%

2021

100.0%

2022

99.9%

58.0%

59.6%

59.4%

17.8%

16.8%

*

74.9%

83.6%

*

69.4%
18.5%
23.7%

66.9%
17.0%
24.5%

67.9%
17.0%
25.8%

66.0%

67.6%

67.9%

80.7%

74.9%

74.5%

17.7%

14.8%

16.4%

98.2%

99.5%

98.8%

7.9%

9.0%

8.9%

89.8%

89.3%

91.3%

86.3%

86.6%

88.6%

* Planned to be updated in August 2023

43

Lion Sustainability Website 2023

Productivity and Professional Fulfillment Indicators
Productivity
Lion Corporation(including
employees on loan)

Professionalfulfillment*3

Performance*1
Rate of absence due to illness orpoor health*2
Work engagement
Proportion of employees that
respond that they are “satisfied” or“mostly satisfied” with their jobs
Proportion of employees that
respond “Yes” to the statement “Myjob is professionally fulfilling”

2020

74.5%
0.8%
2.7

2021

87.0%
0.7%
2.6

2022

86.3%
0.8%
2.6

74.3%

71.4%

70.5%

76.3%

74.5%

74.3%

*1 Presenteeism: Measured using the SPQ (University of Tokyo single-item version)*2 Absenteeism: Absence rate = Days absent/Total work days
*3 Measured using stress level check tests (work engagement: average of responses to two questions answered on a four-point scale)

Conducting Third Party Verification (Society)To ensure the transparency and accuracy of Lion’s social data (rate of occupational accidents, number of deaths due tooccupational accidents, and average compensation ratio between men and women), the Company has undergone thirdparty verification by SGS Japan Inc. The results of this verification are disclosed on the Lion website. Going forward, we will
enhance the reliability of this data by expanding the scope of verification. In addition, we will utilize third-party verification
and work continuously to improve accuracy.

Verification written opinion

Verification opinion （PDF：3.85MB）

44

Lion Sustainability Website 2023

Supply Chain

Switching rate to RSPO-certified products for key raw materials (Domestic)

All as of December 31.
2019

14%

2020

2021

93%

2022

93%

Procurement rate of third-party certified paper from domestic paper manufacturers for key
products

99%

All as of December 31.
2019

96%

2020

2021

98%

2022

98%

99%

More about related initiatives

Number of Suppliers Evaluated and Response Rate

Number of suppliers
Response Rate

2018

2019

610
98%

585
99%

2020

574
100%

2021

502
100%

2022

474
96%

More about related initiatives

Key Suppliers

Number of key suppliersPortion of all primary suppliers that are key
suppliers
Portion of purchasing that is from key suppliers(monetary basis, among all primary suppliers)

2018

2019

90
14.8%

90
15.4%

87%

80%

2020

90
15.7%
89%

2021

90
17.9%
89%

2022

90
17.9%
89%

More about related initiatives

45

Lion Sustainability Website 2023

Governance Data

Scope: Lion Corporation + domestic Group companies
Compliance E-learning Participation Rate
2018

100%

2019

2020

100%

2021

99.5%

2022

99.2%

98.1%

More about related initiatives
The AL Heart Hotline Recognition Rate Among Employees
2018

98.5%

2019

98.6%

AL Heart Hotline Consultations and Reports
2018

Harassment
Personnel and labor
management issues
Others

2019

15
6
2

2020

11
11
3

2021

99.5%
2020

2021

8
7
58

2022

99.0%

12
5
2

2022

99.4%

13
9
3

More about related initiatives
Product recalls* from consumers or distributors
Scope: Lion Corporation
2018

0

2019

0

2020

0

2021

0

2022

0

* Recalls accompanied by company notice on a national newspaper

46

Lion Sustainability Website 2023

Initiatives and External Evaluations
Participation in Initiatives

Status of Inclusion in SRI Indices

Evaluations and Certifications

Participation in Initiatives

The United Nations Global Compact (UNGC) is a global initiative in which companies
and organizations take action as upstanding members of society by exercising
responsible, productive leadership to realize sustainable growth. Participatingcompanies and organizations are asked to uphold and put into action ten principles in
the four areas of “Human Rights,” “Labour,” “Environment” and “Anti-Corruption.”
Human Rights

LabourEnvironment

Anti-Corruption

The Ten Principles of the UN Global Compact
Principle 1:
Business should support and respect the protection of internationally proclaimed
human rights; andPrinciple 2:
Make sure that they are not complicit in human rights abuses.
Principle 3:
Business should uphold the freedom of association and the effective recognition of theright to collective bargaining;
Principle 4:
The elimination of all forms of forced and compulsory labour;
Principle 5:
The effective abolition of child labour; andPrinciple 6:
The elimination of discrimination in respect of employment and occupation.
Principle 7:
Business should support a precautionary approach to environmental challenges;
Principle 8:
Undertake initiatives to promote greater environmental responsibility; andPrinciple 9:
Encourage the development and diffusion of environmentally friendly technologies.
Principle 10:
Business should work against corruption in all its forms, including extortion andbribery.

47

Lion Sustainability Website 2023

Lion announced its support for the UNGC in 2009 and takes part in related initiatives. Furthermore, Lion is a member of the
Global Compact Network Japan (GCNJ)[Japanese] , a local network of the UNGC. The CGNJ has subcommittees aimed atpromoting the CSR activities of its member companies. Lion participates in the Supply Chain, Environmental Management,
HRDD and SRI/ESG subcommittees. The subcommittees share information on the latest CSR-related developments throughlectures by experts and examples of initiatives at participating companies. They also prepare various publications to
support the CSR efforts of diverse corporate actors based on the experience of the participating companies across a wide
range of industries.
Publications Lion Has Helped Prepare◎Supply Chain Subcommittee
Introductory text on CSR procurement (bringing CSR to the supply chain) [Japanese]
CSR procurement self-assessment tool set [Japanese]

OthersParticipation in External Environmental Initiatives
Participation in Pharmaceutical Product Safety Initiatives
Participation in External Supply Chain Initiatives
Participation in External Human Rights Initiatives

Status of Inclusion in SRI Indices

In addition to financial considerations, Lion works to address environmental, social and governance issues. Lion has been
selected for inclusion in leading socially responsible investing (SRI) indices in and outside Japan, namely the FTSE4Good
Global Index (based in the UK) and the Dow Jones Sustainability Asia/Pacific Index (U.S.A. and Switzerland).
We are also included in the ESG indices used by Japan’s Government Pension Investment Fund (GPIF): the FTSE Blossom
Japan Index, the FTSE Blossom Japan Sector Relative Index, MSCI Japan ESG Select Leaders Index, MSCI Japan Empowering
Women Index (WIN), S&P/JPX Carbon Efficient Index and Morningstar Japan ex-REIT Gender Diversity Tilt Index. Inclusion inthese indices indicates that Lion is recognized globally as a highly trustworthy company that meets high standards ofcorporate ethics and corporate social responsibility.
As of July 2023

2023

July 2023
FTSE4Good Global Index
An index developed by U.K.-based FTSE Russell that evaluatescompanies’ sustainability from ESG perspectives and selects
companies that meet its standards.
Lion has been included in this index for 16 consecutive years
beginning in 2008.
FTSE4Good Global Index
News Release48

Lion Sustainability Website 2023

July 2023
FTSE Blossom Japan Index
An index developed by U.K.-based FTSE Russell that selects
Japanese companies with outstanding ESG performance.
Lion has been included in this index for seven consecutive years
beginning in 2017.
FTSE Blossom Japan Index
News Release

July 2023
FTSE Blossom Japan Sector Relative Index

FTSE Russell (registered trademark of FTSE
International Limited and Frank Russell
Company) hereby confirms that Lion
Corporation has been independently
assessed and found to satisfy therequirements for inclusion in the FTSE
Blossom Japan Sector Relative Index. The
FTSE Blossom Japan Sector Relative Index
is widely used in the creation andevaluation of sustainable investment funds
and other financial products.

An index developed by U.K.-based FTSE Russell that reflects theperformance of Japanese companies that demonstrate strong ESG
practices relative to their respective sectors.
Lion was included in this index for second consecutive years
beginning in 2022.
FTSE Blossom Japan Sector Relative Index
News Release49

Lion Sustainability Website 2023

July 2023
MSCI Japan Empowering Women Index (WIN)THE INCLUSION OF LION CORPORATION IN
ANY MSCI INDEX, AND THE USE OF MSCILOGOS, TRADEMARKS,SERVICEMARKS OR INDEX NAMES HEREINDO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT OR PROMOTION OF LIONCORPORATION BY MSCI OR ANY OF ITS
AFFILIATES. THE MSCI INDEXES ARE THE
EXCLUSIVE PROPERTY OF MSCI. MSCI AND
THE MSCI INDEX NAMES AND LOGOS ARE
TRADEMARKS OR SERVICE MARKS OF MSCIOR ITS AFFILIATES.

An index developed by U.S.-based MSCI that selects for Japanesecompanies that promote the professional participation andadvancement of woman and earn high gender diversity scores.
Lion has been included in this index for seven consecutive years
beginning in 2017.
MSCI Japan Empowering Women Index(WIN)
News Release

July 2023
S&P/JPX Carbon Efficient Index
An index comprising the companies in the Tokyo Stock Price Index(TOPIX) that weights said companies based on their disclosure ofenvironmental data and carbon efficiency (carbon emissions per unitof net sales). Japan’s Government Pension Investment Fund (GPIF)
has used this index since 2018.
Lion has been included in this index since its establishment in 2018.
S&P/JPX Carbon Efficient Index
News Release

June 2023
SOMPO Sustainability Index
An index operated by Sompo Asset Management Co., Ltd. Every year,
approximately 300 companies are selected for this index, which
Sompo Asset Management uses for its SOMPO Sustainable
Management investment product.
Lion was selected for inclusion in the SOMPO Sustainability Index inrecognition of its ESG initiatives for three consecutive years
beginning in 2021.
SOMPO Sustainability Index [Japanese]50

Lion Sustainability Website 2023

April 2023
Morningstar Japan ex-REIT Gender Diversity Tilt Index（GenDi J）

Morningstar, Inc., and/or one of its affiliated companies(individually and collectively, “Morningstar”) has authorized
Lion Corporation to use of the Morningstar Japan ex-REIT
Gender Diversity Tilt Logo (“Logo”) to reflect the fact that,for the designated ranking year, Lion Corporation ranks inthe top quintile of companies comprising the Morningstar®
Japan ex-REIT Gender Diversity Tilt IndexSM (“Index”) on
the issue of gender diversity in the workplace. Morningstar
is making the Logo available for use by Lion Corporation
solely for informational purposes. Lion Corporation use of
the Logo should not be construed as an endorsement by
Morningstar of Lion Corporation or as a recommendation,offer or solicitation to purchase, sell or underwrite any
security associated with Lion Corporation. The Index isdesigned to reflect gender diversity in the workplace inJapan, but Morningstar does not guarantee the accuracy,completeness or timeliness of the Index or any data
included in it. Morningstar makes no express or implied
warranties regarding the Index or the Logo, and expressly
disclaim all warranties of merchantability or fitness for aparticular purpose or use with respect to the Index, any data
included in it or the Logo. Without limiting any of theforegoing, in no event shall Morningstar or any of its third
party content providers have any liability for any damages(whether direct or indirect), arising from any party’s use or
reliance on the Index or the Logo, even if Morningstar isnotified of the possibility of such damages. The Morningstar
name, Index name and the Logo are the trademarks orservices marks of Morningstar, Inc. Past performance is no
guarantee of future results.

An index developed with the help of Netherland-based Equileap thatreflects the performance of Japanese companies that have strong
gender diversity policies embedded in their corporate culture andthat ensure equal opportunities to employees, irrespective ofgender.
Lion was included in this index for the first time in 2023.
Morningstar Japan ex-REIT Gender Diversity Tilt Index

2022
2021
2020
2019

51

Lion Sustainability Website 2023

Evaluations and Certifications

Our environmental, logistics and human resources initiatives have been highly evaluated by governmental and otherexternal institutions.
As of March 2023

2023

March 2023
SBT Initiative

Environment

A collaborative international initiative established in 2015 by the
CDP, the United Nations Global Compact (UNGC), World Resources
Institute (WRI) and the World Wide Fund for Nature (WWF). Lion’s
greenhouse gas reduction targets for 2030 were validated by the
initiative as being based on sound scientific grounds and alignedwith the target of limiting global warming to 1.5°C.
News Release

March 2023
CDP Supplier Engagement Rating

Environment

The CDP is an international NGO based in the United Kingdom thatencourages companies to disclose data on their initiatives to combat
environmental problems and surveys and evaluates such disclosure.
The Supplier Engagement Rating (SER) is based on the CDP climatechange questionnaire items about governance, targets, value chain(scope 3) emission calculations and supplier engagement strategies.
As one of the companies that received the highest ratings, Lion was
listed on the Supplier Engagement Leaderboard for a fourthconsecutive year.
News Release

March 2023
The Health & Productivity Stock Selection

Human Resources

Under this program, the Ministry of Economy, Trade and Industry
and the Tokyo Stock Exchange recognize enterprises engaging inparticularly outstanding efforts to promote health and productivity
management.
Lion has been selected under this program for the first time in 2023.
News Release [Japanese]
52

Lion Sustainability Website 2023

March 2023
White 500 Company under the Certified Health & Productivity Management
Outstanding Organizations Recognition Program

Human Resources

Under this program, the Ministry of Economy, Trade and Industry
and the Nippon Kenko Kaigi recognize enterprises engaging inoutstanding efforts to promote health and productivity
management.
Lion has been selected under this program for seven consecutive
years, since its establishment in 2017.
News Release [Japanese]

February 2023
Japan Sports Agency’s Sports Yell Company

Overall CSR

A certification program created by the Japan Sports Agency in 2017
to recognize companies that support or promote sports activities toimprove their employees’ health.
Lion was certified under the Japan Sports Agency’s Sports Yell
Company 2023 program.
News Release [Japanese]

January 2023
Sustainability Site Awards

Overall CSR

The Association for Sustainability Communication of Japan awards companies with outstanding sustainability
websites based on the quality of their sustainability information provision.
Lion received the Silver Award, in the Sustainability Site Awards 2023.

2022
2021
2020
2019

53

Lion Sustainability Website 2023

Stakeholder Engagement
Approach

Lion’s Main Stakeholders

Stakeholder Engagement

Stakeholder Dialogue

Approach

The Lion Group recognizes the importance of meeting the expectations and demands of stakeholders. To that end, mutual
understanding with our stakeholders is essential for us to continue our sustainable growth. We strive to actively engage
stakeholders in dialogue and collaboration by through various forms of communication.
We value and take seriously our stakeholders’ opinions and suggestions. After analyzing and reviewing them internally, we
incorporate them into our future corporate activities to further improve our sustainability efforts.

Lion’s Main Stakeholders

Lion considers its main stakeholders to be its shareholders, investors, customers (consumers) and business partners, as wellas municipalities, governments, non-profit organizations, local communities and employees.

Stakeholder Engagement

To ensure that it will be able to continue to contribute to society, Lion listens carefully to the opinions of stakeholders andpromotes stakeholder engagement* via the following communication methods. The opinions we receive are reported to
management and the relevant departments and are utilized in our business activities.
* The process in which a company actively engages with its stakeholders through dialogue and other means to achieve mutually acceptableoutcomes in order to fulfill its corporate social responsibility (see the Japan Business Federation’s Implementation Guidance on Charter ofCorporate Behavior, 7th Edition)

54

Lion Sustainability Website 2023

Main Stakeholder Communication Methods
Putting Our Purpose into Practice: “Make a difference in everyday lives by redesigning habits: ReDesign”
Stakeholder
Major responsibilities
Main engagement opportunities
Annual Meeting of Shareholders, Annual
Business growth (sales and profit)
Meeting of Shareholders convocation notice
Returning profits to shareholders
Financial results briefings
Sound and transparent management
Briefings for individual investors andinstitutional investors
Accountability and constructive dialogue
IR tours: Individual interviews with overseas
Shareholders andEffective corporate governanceinstitutional investors and analysts
investors
Enhancing disclosure content
Website: Investor Relations and News Release
Timely disclosure of management-related sections
information
Proactive disclosure of financial and nonIntegrated Reportfinancial information
Redesigning habits
Promotional activities and exhibition events
Safe and reliable manufacturing
Factory tours
Product development emphasizing theConsumer research: group interviews,
consumer's perspective
monitoring surveys
Customers
Supplying superior products and services
Commercials, in-store shopping, online(consumers)
useful for everyday living
shopping
Promoting information useful for everyday
Lion’s website and social media
livingAppropriate, sincere customer service
Customer support

55

Lion Sustainability Website 2023

Stakeholder

Business partners

Governments andmunicipalities

Non-profit
organizations

Local communities

Major responsibilities●Suppliers (raw material manufacturers,
production contractors)
Establishing supply chain management thattakes human rights and the environment
into consideration
Responsible raw material procurement●Retail stores, wholesalers
Building relationships of trust through fairand equitable trade
Stable supply of products
Proposing value-added products andservices that meet consumer needs
Contributing to the revitalization of markets
in each category
Appropriate dialogue with supervisory
authorities
Collaboration to resolve local social issues
Building and maintaining equitable and soundrelationships

Main engagement opportunities
Self-checks/feedback based on the LionGroup Supplier CSR Guidelines
Compliance consultation and whistleblowing system (AL Heart Hotline)
New product briefings, product seminars
Lion network, wholesaler meetings
Sales floor strategy proposal meetings,
merchandising meetings
Collaborative events and fairs
Collaborative environmental initiatives

Councils, committees, opinion exchange
meetings, personnel exchanges
Conclusion of agreements, collaborative
events and initiatives
Debriefings and information exchange
meetings
Conclusion of agreements, collaborative
events and initiatives
Collaborative, cooperative support for solving Opinion exchange meetingssocial and environmental issues
Support through monetary and productdonationsSocial contribution activities and participation
Solving social and economic issues
in the local community
Contributing to regional revitalization andConnecting with local residents throughdevelopment and collaboration with local
eventscommunities
Health seminars
Promoting health and educating the next
generation on hygiene and cleanliness
Disaster relief
Proposing educational curriculums
Supporting science classes
Environmental education
Forest maintenance activities
Consideration for the natural environment
Environmental beautification activities
Biodiversity conservation
Conservation activities with local residents

56

Lion Sustainability Website 2023

Stakeholder

Major responsibilities
Providing a comfortable working
environment for employees.
Support for job satisfaction

Employees

Building good relationships
Fostering an organizational culture thatencourages innovation
Fair evaluation and treatment
Improving the employee benefits system
Utilizing and developing human resources
Promoting occupational safety and health
Promoting and managing healthRespecting human rights
Respecting diversity

57

Main engagement opportunities
Internal communications through the Group
intranet, etc.
Employee awareness and behavior surveys
Compliance Awareness Survey
Roundtable with the President to exchange
ideas with management
Creating new businesses through the newvalue creation program
Labor-management meetings
Individual interviews
Various educational programs and training
for skills acquisition and ability
development
Rank-specific training
Workplace accident prevention program
e-learning training
Health checkups, dental checkups
Compliance consultation and whistleblowing system (AL Heart Hotline)
e-learning training

Lion Sustainability Website 2023

Stakeholder Dialogue

Lion regards dialogue with stakeholders as a valuable opportunity for seeing how its aspirations as a company comparewith society’s demands and calibrating its sense of balance as a good corporate citizen.
In recent years, in light of the growing importance of responding to new demands from society, we hold study meetings for
management as part of our stakeholder dialogues. These meetings bring together outside experts with Lion’s top
management to discuss sustainability topics directly related to corporate operations. The suggestions and opinions
expressed in these dialogues are reflected in Lion’s operations and used to further promote sustainability activities.
In May 2022, we held a study meeting on the topic of respect for human rights, which has been attracting attention as amajor social issue in recent years. At this meeting, an outside expert specializing in human rights served as an instructor,
leading discussion with Lion’s chairman, president, directors, Audit & Supervisory Board members and executive officers.
We will continue working to understand and meet the needs of our customers and society through a variety of forms of
dialogue with stakeholders.
Implemented
2022
2021
2020
2019

Participating stakeholders

Theme
Respect for human rights (United Nations Guiding
Principles on Business and Human Rights)—Why it isOutside experts
crucial to strengthen initiatives to ensure respect forhuman rights now
An NPOThe Okuchikarada Project for children (Inclusive oral care)
Outside experts, employees Spreading awareness of sustainability
Outside experts
ESG-oriented management
Outside experts
Promoting sustainability-oriented management

58

Lion Sustainability Website 2023

Social Contribution Activities
Approach
Overview
Initiatives with Local Governments
Initiatives Supporting Education
Sports Promotion Activities
Working towards Gender Equality
Collaboration with Local Communities
Donation Activities (Philanthropy)
Overseas Social Contribution Activities

ApproachSince its founding, Lion has sought to help consumers enjoy healthy living through the provision of products while carryingout educational activities and communication aimed at creating better living habits.
In Japan and other Asian countries, Lion is engaged in initiatives that contribute to the sustainable development of society
and the global environment through the areas of health, comfort and cleanliness. We believe that our continued businessviability depends on co-existing harmoniously with the communities in which we are involved, such as those where Lion
facilities are located. We therefore strive to help solve issues in and invigorate local communities by strengthening
partnerships with local residents, government agencies and citizens’ groups. In addition, by increasing opportunities forevery employee to get involved in business-related educational activities, we foster human resources that create new value
informed by a high level of social and environmental awareness.

Overview

59

Lion Sustainability Website 2023

Initiatives with Local Governments
Ishinomaki City, Miyagi Prefecture
Lion’s founder, Tomijiro Kobayashi, had close ties to Ishinomaki City. Honoring thisconnection, Lion has pursued recovery support initiatives in the city on a continuous
basis since the Great East Japan Earthquake in 2011.
In January 2019, Lion formed a comprehensive collaboration agreement with the city
to promote the health of city residents and revitalize the area using its accumulated
health improvement expertise. One initiative under the agreement is tree planting at
Ishinomaki Minamihama Tsunami Memorial Park, and Lion staff, partners andIshinomaki locals have teamed up to plant trees every year. We will continue to
implement a variety of initiatives based on employee participation.

A group photo of a tree planting
event at Ishinomaki Minamihama
Tsunami Memorial Park

Lion’s initiatives to promote recovery from theGreat East Japan Earthquake

Yamanashi City, Yamanashi Prefecture
Since October 2006, in accordance with an agreement with Yamanashi City, Lion has
been involved in the maintenance of a city-owned forest, the first of the Company
Forest Promotion Projects being promoted by Yamanashi Prefecture. Our goal is toincrease employee awareness of the environment through the experience of caring forthe forest, which serves as a water source. In the future, we would like to focus onenvironmental education and offer a venue for interaction and exchange with a diverse
group of people, including local residents.

Forest maintenance activities

Lion Forest in Yamanashi

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Sakaide City, Kagawa Prefecture

The KireiKirei City-Sakaide Project is an initiative implemented through a partnership agreement signed in 2014 by SakaideCity, the Lion Chemical Co., Ltd. Oleochemical Production Site and Lion that aims to improve the health of the citizens of
Sakaide City by educating them about healthy habits such as hand washing and tooth brushing.

Hand washing awareness activities at the Furusato no Oyako Festival

KireiKirei City-Sakaide Project [Japanese]

Sumida-ku, Tokyo

In 2020, Lion formed an agreement with the municipality of Sumida-ku, where our headquarters were formerly located, tocollect and recycle used toothbrushes with the aim of recovering plastic resources.
Between April 2020 and March 2021, used toothbrushes were collected from elementary schools and other organizations(many of which are educational institutions), recycled into rulers, and returned to the collecting organizations.

A visit to a participating
elementary school

An elementary school student
showing off his new ruler

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15 cm rulers incorporating
recycled toothbrush plastic

Lion Sustainability Website 2023

Taito-ku, Tokyo
In March 2023, we concluded an agreement with the municipality of Taito-ku to collaborate and cooperate in the promotionof local residents’ health and to contribute to community development for the realization of a sustainable society and ourharmonious coexistence with the community.
Based on this agreement, in the following month we began toothbrush recycling initiatives to recycle plastic resources.
Collected toothbrushes will be processed by a recycling company chosen by Lion and then returned to Taito-ku locals in theform of useful plastic goods.

Signing Ceremony for theComprehensive Collaborative
Agreement

A collection box at the entranceof the main building of the Taitoku City Office

Toothbrush Recycling Program [Japanese]

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Initiatives Supporting Education
Employee Participation
Since 2014, as part of Lion’s training program, junior employees go to kindergartens and preschools across Japan to teachchildren about the importance of hand washing habits through a set of fun song and dance activities. In 2021, the program
was extended to include elementary schools, with lessons delivered using simple-to-follow instructional videos and othervisual aids. In addition to providing products, our employees play a helpful role in promoting self-directed cleanliness andhygiene habits.
Lion is proactively implementing these activities, which not only serve communities, but contribute to human resource
development. By participating in these initiatives, employees learn about social issues through direct contact with
communities and improve their problem-solving skills, teamwork skills and empathy in addition to increasing theirawareness of the importance of contributing to society.

A video is shown during an event at an elementary school

Events held in kindergartens and preschools

Supporting Science Education“Rico-Challe” Training Event Participation

Since 2019, Lion has been holding events to support “Rico-Challe,” a campaign to support female junior high, high school
and university students choosing STEM fields being implemented by the Gender Equality Bureau Cabinet Office, the Ministryof Education, Culture, Sports, Science and Technology Education Policy Bureau and the Japan Business Federation.

Rico-Challe [Japanese]
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Education Support Activities for Science Students

One example of how Lion supports science education is by conducting experience-based lessons for high school students
from Super Science High School designated schools,* helping these students to deepen their knowledge, and by offering
tours of the Research and Development Headquarters that cover the history of Lion’s technological development, themotivations of the developers and the technologies used in Lion products in order to foster their interest in science. Because
students are able to hear from researchers directly, these events help students develop a sense of what it is like to work inresearch.
* The Ministry of Education, Culture, Sports, Science and Technology has implemented the Super Science High School program since 2002 tocarry out research and development focused on math and science education with the goal of developing future international scientists andengineers. Under the program, upper secondary schools providing advanced math and science education are designated as Super Science
High Schools and receive special support.

Volunteer Researchers Conduct Science Classes

Edogawa-ku, where Lion’s Hirai Research Center is located, has been conducting an ongoing science education center
project for more than 50 years in which the ward, schools, and local residents collaborate to teach children about the
fascinating scientific phenomena happening around them. For more than 15 years, we have been holding science classes forelementary school students to familiarize them with interface science, which is the foundation of Lion’s products, and tohelp them become familiar with science in their daily lives.
Click here for more research institute activities [Japanese]Sports Promotion Activities
Activities of Lion’s Rugby Club
Lion’s rugby club is celebrating its 51st anniversary in 2023. We would like to take this opportunity to thank the many people
who have continued to support us and help us achieve this milestone. We would like to express our sincere gratitude. Everyspring, the club holds the Lion Rugby Festival at the Chiba Plant sports field to build relationships with local residents,
children of a local rugby school, coaching staff and many parents. To prevent the spread of COVID-19, club activities weresuspended in 2020, but resumed in spring 2022. At the rugby classes held here, our current players, who go by the teamname “Lion Fangs” teach rugby skills in an easy-to-understand manner to ruggers ranging from kindergarteners to upper
elementary students.
In addition, since 2012, as part of Lion’s project to promote recovery from the Great East Japan Earthquake, the rugby clubhas been holding rugby classes in the city of Ishinomaki, as well. From 2020, these activities were suspended due to the
COVID-19 pandemic, but will resume for the first time in four years in 2023.
Through rugby, we will continue to participate in a variety of community and social contribution activities.

Participants

Chiba

Rugby Lesson Participants
2018
2019
2020
Approx. 500 Approx. 700 Suspended

2021
Suspended

Ishinomaki

Approx. 80

Suspended

Approx. 90 Suspended

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2022
2023
Approx. 600 Approx. 700
Scheduled
for August

Lion Sustainability Website 2023

Activities at the Chiba Plant (April 2023)

Activities in Ishinomaki (2019)

Lion Fangs [Japanese]

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Other Sports Events Supported by Lion

RCC Hiroshima Women’s Ekiden (long-distance
relay race) [Japanese]

RKK Women’s Ekiden (long-distance relay race)[Japanese]

All Japan IAIDO TAIKAI (kendo tournament)[Japanese]

Walking Event [Japanese]

Recognized as a Sports Yell Company 2023 by the Japan Sports Agency
Lion was recognized by the Sports Agency as a Sports Yell Company in2023 for its efforts to promote sports activities among its employees andits active support in the field of sports.
News Release [Japanese]

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Working towards Gender Equality
Kaji × Kaji Happy Share Project
Lion is promoting the Kaji × Kaji Happy Share Project in partnership withmunicipalities and companies across Japan with the aim of eliminating the “choregap” in households. By helping foster smoother relations within households in thecommunities where we promote this project, we are supporting the resolution of avariety of social issues, such as women’s participation in the labor force and the lowbirth rate. Through this project, we are working with municipalities to provide useful
information not only to married couples, but broadly throughout communities.

Household chore seminar in Akashi
City

Kaji × Kaji Happy Share Project [Japanese]

Collaboration with Local Communities
Plant Tours
Lion considers plant tours to be an important contact point between customers and the Company. So that customers can
get to know Lion products and witness the extremely high priority the Company places on safety and environmental
conservation in its operations, we welcome many visitors to the plants every year. Plant tours were suspended fromFebruary 2020 to prevent the spread of COVID-19 but have gone back to a regular schedule in 2023.

Odawara Plant (2019)

Odawara Plant (2019)

Chiba Plant (2019)

Akashi Plant (2019)67

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PlantPlant tours
Participants2020 Plant Tours(January 1, 2020 to December 31, 2020)
Chiba
Odawara
Osaka
3
11
5
50
231
126

Akashi

7
150

Total

26
557

Chiba Plant
Odawara Plant
Osaka Plant
Akashi Plant

Environmental Beautification Activities

Cleanup Activities Near Plants and Offices

Valuing communication with local communities, Lion Group plants and offices proactively engage in cleanup activities notjust within their own grounds, but in the surrounding areas, as well.

Cleanup activities near the Akashi Plant

Cleanup activities near the Odawara Plant

Cleanup activities near the Chiba Plant

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Cleanup activities at a seaside park near the Fukuoka Office

In addition to those shown above, Lion is implementing cleanup activities around the Sapporo Office, Tokyo Office, Nagoya
Office, Osaka Plant, Lion Chemical Co., Ltd. Fine Chemical Production Site and Oleochemical Production Site, and Lion
Specialty Chemicals Co., Ltd. Ono Plant and Yokkaichi Plant.

Sekiguchi River Cleanup Participation (Odawara Office Site)

The Odawara City Kouzu Ward Neighborhood Association holds an annual cleanup of the Kouzu Coast. Lion employees in
Odawara have been participating in the cleanup activities since 2003. In 2008, the location of the cleanup was changed to
the nearby Sekiguchi River. We have continued participating in the cleanup every year. However, the activity has beensuspended since 2020 to prevent the spread of COVID-19. Though the activity was resumed in 2022, it was cancelled in 2023
due to heavy rain.

Employees engaged in cleanup activities

Participants

2018

43

2019

36

2020
Suspended69

2021
Suspended

2022

32

2023
Suspended

Lion Sustainability Website 2023

Kamisu City Coastal Cleanup Activities (Lion Chemical Corporation Fine Chemical Production
Site)

The Lion Chemical Corporation Fine Chemical Production Site has been conducting cleanup activities with employees andlocal residents on the Kamisu City coastline (Hikawa and Hasaki beaches) every June since 2009 as part of our community
contribution activities.

Wearing matching green T-shirts
during cleanup activities

Participants

2017

51

2018

Employees engaged in cleanup
activities

2019

46

46

2020
Suspended

2021
Suspended

Biodiversity Conservation Activities at Lion’s Operating Sites
Lion provides a wide variety of products that support daily living based in significant part on value derived from nature.
In addition to striving to use resources in a sustainable manner, Lion is engaged in biodiversity conservation, aiming foreach employee of Lion’s operating sites to proactively contribute to the realization of a society in harmony with nature.

Biodiversity Conservation Initiatives [Japanese]

Other Events Supported by Lion

Lion Chura Action [Japanese]70

Lion Sustainability Website 2023

Donation Activities (Philanthropy)

Every year, Lion surveys the domestic Group on the implementation status of social contribution activities to collect andmanage data on monetary and product donations for and spending on each activity.
The total amount spent on social contribution activities in fiscal 2022 was approximately ¥605.8 million.
Fiscal 2022 expenditure on social contribution activities (Millions of yen)

* Monetary donations include donations to the Lion Foundation for Dental Health (LDH)[Japanese]

2018
655million yen

Social Contribution Activity Expenditure
2019
2020
2021
519million yen
1,041million yen
778.2million yen

2022
605.8million yen

20187,426hours

Hours Volunteered by Employees During Working Hours
2019
2020
2021
5,956hours
1,923hours*
1,053hours*

2022
2,826hours* In 2020 and 2021, volunteer hours were decreased to prevent the spread of COVID-19 pandemic.

Overseas Social Contribution Activities
Initiatives at overseas Group companies

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Lion’s SDG-Related Initiatives

Since its foundation, Lion has been promoting awareness-raising activities and information provision for consumers whiledeveloping products that support healthier daily living and proposing the creation of better living habits. Deeply aware thatthe pollution of the global environment is a worldwide issue, we have long strived to respond to environmental concerns,
for example, by developing environmentally friendly products.
Responding to evolving social issues while contributing to each new day in order to create a brighter future for all—this is
the unique contribution Lion can make to the achievement of the Sustainable Development Goals (SDGs).*
Lion alone can only contribute so much to the achievement of the SDGs. In promoting activities, we work to solve problems
through partnerships with a wide range of stakeholders, including consumers, other companies, NGOs, NPOs, government
agencies and municipalities.

* The SDGs are the 17 goals for the period from 2016 to 2030 described in the “2030 Agenda for Sustainable Development” adopted by 193
participating countries at the United Nations Summit in September 2015. (Based on information from the website of the United Nations
Information Centre)

Lion’s Sustainability: SDG-Related Initiatives

In August , Lion published “Lion’s Sustainability
activities from an SDG-centric perspective.

: SDG-Related Initiatives.” This document highlights Lion’s

A -size LION's SUSTAINABILITY (for viewing) [Japanese] ( . MB)
A -size LION's SUSTAINABILITY (for printing) [Japanese] ( . MB)*Click URLs in the PDF to jump to related videos and web pages.
Previous Issue
Lion’s Sustainability: SDG-Related Initiatives[Japanese] ( . MB)

Previous Issue
Lion’s Sustainability: SDG-Related Initiatives[Japanese] ( . MB)

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SDGs: Lessons for the Future

The YouTube channel SDGs MIRAI KAIGI features videos that explain the SDGs for children. The channel includes a series ofvideos called “SDGs: Lessons for the Future,” beginning with a video explaining what the SDGs are and explaining each of
the 17 SDGs in an easy-to-understand way.

The channel also offers a series of videos highlighting companies implementing SDG-related initiatives. These videos are
aimed at helping children understand the SDGs as something familiar and relevant to their lives and help them think about
their own futures by showing actual initiatives being undertaken by companies to solve social issues. Lion's initiatives
regarding SDGs are featured as follows.

Video about Lion’s SDG-Related Initiatives [Japanese]
Efforts to Achieve Gender Equality through Housework Sharing

Video about Lion’s SDG-Related Initiatives [Japanese]
Initiatives to create a healthy future from oral health73

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Video about Lion’s SDG-Related Initiatives[Japanese]
Initiatives to reduce plastics and the importance of hand washinghabitsLion’s SDG-Related Initiatives
Creating Healthy Living Habits

Lion is advancing the goal of creating healthy living habits, the foundation of health, in order to help achieve health,comfort and cleanliness in everyday living.

① Promoting oral healthcare

Lion is working to promote the establishment of good oral healthcare habits. To this end, in addition to developing andproviding products and services, we implement activities to promote oral healthcare at all stages of life, from infancy to oldage.

Main Activities

Preventive Dentistry (Self-Care/ Professional Care)
Oral Health Event of Tooth Brushing for Children (since 1932)
Inclusive Oral Care

② Promoting cleanliness and hygiene habits

Aiming to realize health, comfort and cleanliness in everyday living for consumers, Lion implements initiatives incoordination with national and local governments, focusing mainly on promoting proper hand washing habits.

Main Activities

Establishing Cleanliness and Hygiene Habits
Hygiene and Health Care in Times of Disaster
Hand Hygiene Management for Professionals

Promoting Environmental Initiatives for a Sustainable Planet

Driven by our purpose, we work with consumers to create environmentally friendly habits in order to continuously offer
planet-friendly lifestyles that make living more sustainably easy, striving to contribute to the environment not only in Japanbut across Asia.

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③ Environmental protection activities

Lion’s products, used for such purposes as tooth brushing and washing, are deeply connected to environmental issues inareas related to CO2, plastics and water resources. Accordingly, to realize a decarbonized, resource-circulating society, Lion
proactively carries out environmental protection activities.

Main Activities

Water Resource Conservation Activities (Forest Maintenance Activities at the Lion Forest in Yamanashi)
Toothbrush Recycling
Biodiversity Conservation Activities (Promoting Various Activities at Business Locations)
Chura Action (Support for Eco-Activities of Children Nurturing the Future of Okinawa)
Lion’s Environmentally Friendly Products
Related Information
News Release: Lion Exhibits at SDGs AICHI EXPO 2022, One of Japan’s Largest SDG-Promotion Events [Japanese]
News Release: Lion Launches Inclusive Oral Care Activities Aimed at Addressing Social and Environmental Issues via Or
al Care and Achieving the SDG “Ensure Healthy Lives and Promote Well-Being for All at All Ages” [Japanese]
Ad highlighting Lion’s SDG-related initiatives (Japanese; printed in the December 20, 2020 Yomiuri Shimbun national ed
ition) (1,273 KB)

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Creating Healthy Living Habits

Creating Healthy Living Habits

Sustainability Material Issue Creating Healthy Living Habits

Basic Approach

The Lion Group plays an important role in society as a provider of daily necessities and services, and we believe that thestarting point for value creation is the establishment of lifestyle habits directly related to health, such as brushing teeth andwashing hands. Our purpose is “Make a difference in everyday lives by redesigning habits: ReDesign.” Based on this purpose,by providing healthy living habits to the 1 billion people in our business areas, we will seek to contribute to better everyday
lives and expand our businesses.

The Lion Group’s initiatives leading up to 2030

Initiatives
Initiatives to Establish Oral Care Habits

Initiatives to Establish Cleanliness and Hygiene
HabitsThe Lion Group’s Social Contribution Activities

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Creating Healthy Living Habits

Initiatives to Establish Oral Care Habits

Sustainability Material Issue 2 Creating Healthy Living Habits
ApproachPreventive Dentistry (Self-Care)
Preventive Dentistry (Professional-Care)
Inclusive Oral Care
Research and Academia (Preventive Dentistry Research)

Approach

To date, the Lion Group has worked to establish tooth brushing habits to maintain and improve overall oral health, including
the prevention of cavities and gum disease. With the theme of “realizing healthy minds and bodies,” we will strive to evolvethe idea of preventive dental habits through self-care that can be done at home as well as professional care through theguidance of dentists and dentistry experts. We will make use of AI and IoT to promote enjoyable preventive dentistry*
habits, while also broadening our solutions in other ways to benefit the lives of people. Furthermore, we will work with local
governments to promote preventive dentistry habits with people whom we previously have not been able to focus on. By
providing people with opportunities to engage in proper oral care, we will realize “Creating healthy living habits.”* The idea is that preventive dentistry focuses not on waiting to treat cavities until after they form, but preventing them before they can occur.

Preventive Dentistry (Self-Care)
Self-Care (Self-Implemented Preventive Dentistry)
Tooth Brushing Song, Videos and Posters
Promoting After-Lunch Tooth Brushing
Promoting the Use of Dental Floss
Promotion of Periodic Toothbrush Replacement and Recycling
Development of Products and Services Using IoT and AI
Educational Activities to Promote Oral Care at Specific Life Stages
Developing Oral Healthcare Leaders
Corporate Wellbeing Support Service

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Lion Sustainability Website 2023

Self-Care (Self-Implemented Preventive Dentistry)
Even if you take care to brush your teeth carefully, without the proper knowledge and techniques, you can still end up
leaving plaque behind. Establishing daily self-care habits in line with the principles of preventive dentistry is key toeffectively managing and maintaining oral health.
The Lion Group is implementing a range of initiatives to promote brushing techniques that effectively remove plaque alongwith new habits that help foster awareness of preventive dentistry based on an understanding of one’s own oral conditions.

Tooth Brushing Song, Videos and Posters
In order to help elementary school-aged children acquire correct and thorough tooth brushing habits in a fun way, Lion has
created a tooth brushing song with lyrics about the steps of tooth brushing, videos featuring the song as well as posters withthe brushing steps. One of the videos is instructional and teaches children the proper brushing method and steps, andanother is a fun animated version for children to watch once they have learned how to brush.

“Ee, Ha” Tooth Brushing Song Lyrics and Composition: Yoshida Yamada

Download the lyrics [Japanese]

Video (instructional version) [Japanese]A dental hygienist teaches key points and demonstrates the brushing steps while following along with the song.
* Recommended for children who are still learning how to brush.

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Video (animated version)

This animated video is designed to help children enjoy forming tooth brushing habits.
* Recommended for children who have already learned how to brush.

Tooth Brushing Steps Poster

Art: Yoshitaka Yamada (Yoshida Yamada)Children can check the steps and key points of tooth brushing with the lyrics on the poster.
Character design: Yoshitaka Yamada (Yoshida Yamada)

Download A1 version [Japanese]

A3 version [Japanese]

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Lion Sustainability Website 2023

Promoting After-Lunch Tooth Brushing
Lion is advancing initiatives to promote after-lunch tooth brushing, aiming to help
establish the habit of brushing three times a day.
With more women entering the workforce, the employed population in Japan has beensteadily rising. Today, approximately 60% of those over the age of 15 are employed(Fiscal 2018 Labour Force Survey, Japan Statistics Bureau). While many consumers
spend their afternoons in the workplace, only 40% of workers in offices and similar
environments report regularly brushing their teeth after lunch, while another 22%
report wanting to but not actually doing so (Lion survey).
To address the needs of working people, Lion launched MIGACOT, an oral care set
designed for tooth brushing at the office that includes a cup. Lion is promoting thisproduct along with educational activities to spread the mindset that brushing one’s
teeth after lunch is a normal part of the workday among as many people as possible.

Related Information: Co-Creation Space: point 0 marunouchi (Demonstration 1: Office toothbrush set)

Promoting the Use of Dental Floss
Under the theme "Taking preventive dentistry a step forward," we promote initiatives to communicate the necessity andbenefits of preventive dentistry.
One of the key points of effective oral self-care is to completely remove all dental plaque. Only about 60% of the plaque that
forms between the teeth can be removed using a toothbrush alone. The combination of toothbrush and dental floss,
however, improves plaque removal by 50%.
In addition to providing products for children old enough to floss (those in elementary school and above) and otherconsumers who may not be used to using dental floss, Lion carries out activities to promote the necessity of using dental
floss and correct flossing techniques.** Lion holds the Oral Health Event of Tooth Brushing for Children every year to provide a fun opportunity for elementary school students tolearn how to use dental floss and brushing techniques suited to the arrangement of their own teeth.

CLINICA ADVANTAGE Dental Floss

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Lion Sustainability Website 2023

Promotion of Periodic Toothbrush Replacement and Recycling

Contributing to the SDGs by realizing “Good for the mouth!” and “Good for the Planet!”

Since its founding, Lion has worked to promote healthy oral care habits among consumers. In recent years, marine plastics
have become a major social issue. As a leader in oral care and a manufacturer, Lion recognizes that it has a duty to address
the issue of plastic recycling. By focusing on toothbrushes, which account for more plastic use than any other Lion product,
we are working to contribute to the formation of healthy consumer living habits while helping to reduce environmental
impact.

Instituting Toothbrush Replacement Day

Over time, regular use of a toothbrush causes the bristles to splay apart, reducing the brushing efficacy. According to a Lion
survey, only about 40% of consumers replace their toothbrushes every month.* Those that do not give such reasons as “It’swasteful to throw it out,” and “I wasn’t aware that the brushing effectiveness diminishes.”* Although the exact timing may vary by individual, we generally recommend replacing your toothbrush every month.

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In February 2018, we designated the 8th of every month Toothbrush Replacement Day*and started calling for monthly toothbrush replacement.
To expand this program, we are collaborating with business partners by developing instore point-of-purchase displays to remind consumers to replace their toothbrushes on
the 8th of every month and creating posters promoting periodic toothbrush
replacement for use in dental clinics.
Lion will continue these activities to promote toothbrush replacement with ourbusiness partners and dental clinics so that monthly toothbrush replacement becomesa regular habit.
* This day was registered and certified by the Japan Anniversary Association on December 27, 2017, and has been established as a new annual
event.

News release: New Habit! Start Your Own Personalized “My Brush Day” on the First Day of the Month! [Japanese]

Promoting Toothbrush Recycling

There is a concern that an increase in the frequency of toothbrush replacement due tothe promotion of toothbrush replacement could lead to a rise in waste.
Addressing this concern, and in light of problem of marine plastics in recent years, Lion initiated its Toothbrush Recycling
Program,* a first in Asia, to collect and recycle used toothbrushes, which had previously just been thrown away, incooperation with TerraCycle Japan. Furthermore, in 2020, we launched a toothbrush recycling initiative in coordination withmunicipal garbage collection operations, a first in Japan. Adopting the perspective that each consumer who participates in
toothbrush recycling is an important partner, we are moving forward with the aim of realizing a resource-circulating society.

Toothbrush recycling activities

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Development of Products and Services Using IoT and AI

Oral Fitness Service ORAL FIT

In November 2022, we launched ORAL FIT, a service that proposes the new habit of oral
fitness. The aim is to maintain and improve oral fitness to prevent the loss of muscle
strength around the mouth, which can lead to choking, difficulty speaking, difficultychewing, and other problems. This app-based service proposes a two-month programwith ten minutes of oral exercise a day to prevent deterioration of and improve oral
functions.

Children’s Development Support Service Okuchi-iku

In April 2023, we launched the Okuchi-iku oral care program via a dedicated ecommerce site. The aim of the program is to support the development of proper toothbrushing habits and the creation of a strong foundation for straight teeth in line withchildren’s varying stages of growth. As the first step, we are offering Okuchi-iku
Kamotto! for children whose baby teeth are in the process of being replaced by adultteeth, an important period for establishing a foundation for straight teeth. This threeitem set includes gummies for daily consumption to develop chewing strength,
chewing gum for monthly use to check chewing strength, and an AI app to check teethalignment via the Okuchi-iku members website.

Gum Health Assessment Tool HAGUKI CHECKER

Aiming to increase awareness of preventive dentistry, in 2019, we launched HAGUKI CHECKER,*1 an online tool that checks
the state of users’ teeth and gums. Users simply use a smartphone or other device to take photos of the inside of theirmouths, including the teeth and gums, and upload them to HAGUKI CHECKER. The online service then uses AI to identify
individual teeth and check the state of the gums around each tooth (receding, dullness, swelling). Since its launch,approximately 16,000 people*2 have used the service.
In February 2022, we have signed a comprehensive partnership agreement with Koshi City in Kumamoto Prefecture toprovide citizens with opportunities to think about their own oral health by answering a simple questionnaire, either athome or on the go. We plan to use technologies that leverage machine learning to process data on gum conditions from thesmart app HAGUKI CHECKER, as well as health checkup data, to visualize participants’ level of oral health.
By helping consumers see and understand their own oral environments, HAGUKI CHECKER sparks greater interest in thestate of their gums. Periodic use over time can help consumers see the effects of changes in their oral care habits by forexample, making changes to their gums more readily apparent.
News release:Comprehensive Partnership Agreement with Koshi City, Kumamoto Prefecture, for Community Developm
ent*1 Developed based on Lion’s data and expertise, and created using the AI image analysis technology of Automagi Inc. and the service
development technology of MTI Ltd.
*2 Figure for July 22, 2019 to December 26, 2019.

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Items Checked

HAGUKI CHECKER provides an analysis of the state of the user’s
gums around each tooth, evaluating the following three factors
on a three-point scale.
Gum recession
Gum dullness
Gum fullness
The service also provides information about care methods, oral
care products and other aspects of oral care in line with theanalysis results.
HAGUKI CHECKER

Educational Activities to Promote Oral Care at Specific Life Stages
Daily oral care is an important habit that affects lifelong health. Forming healthy oral care habits from a young age is crucial.
Lion believes that practicing self-care at all life stages is important. In order to firmly establish healthy oral care habits
appropriate to the needs of specific life stages, Lion is advancing initiatives in cooperation with external organizations,
including government bodies, schools, hospitals and dental clinics. In addition, Lion supports the oral care promotion
activities of The Lion Foundation for Dental Health (LDH).
* Established in 1964, the Lion Foundation for Dental Health (LDH) changed its status to a public interest incorporated foundation in 2010.
Lion fully supports LDH’s activities to promote oral care awareness and education. LDH coordinates with the Japan Dental Association,
universities, governmental bodies and other partners to help maintain and improve the dental and oral health of consumers through its
three projects. By doing so, LDH stays at the forefront of oral health, contributing to society by helping to improve the quality of life of all
people.

The Three Projects of LDH

Maternity

Lion runs the dentistry information website ORALcom, where it offers answers to common questions about issues related tothe oral health of expectant mothers and infants.

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Infancy

Promoting Preventive Dentistry from Age 0
Lion aims to help establish preventive dentistry habits from as early in a child’s life as possible. To this end, in terms of
product development, we are enhancing our CLINICA Kid’s series, which enables preventive dentistry from age 0. Samplesof CLINICA Kid's Gel Toothpaste are offered at 18-month checkups.
We believe that time spent on parent-assisted brushing is a valuable opportunity for deepening parent-child bonds.
Therefore, in terms of making this information more prevalent, we are providing information through the website“HA!HA!HA! Park,” which encourages preventive dentistry efforts for children, and includes videos designed to spread
empathy.
As for the services provided, as part of an initiative to promote collaboration between the Japan Dental Association and theJapan Society of Obstetrics and Gynecology, Lion is collaborating in the creation of preventive dentistry content for theBaby Plus app for expectant and nursing mothers provided by the Society, under the supervision of the Japan Dental
Association, which positions the app as a guide to preventive dentistry for expectant and nursing mothers.

Elementary school students

The Oral Health Event of Tooth Brushing for Children—Reaching a Cumulative Total of More Than
2,460,000 Children in and Outside JapanThe Oral Health Event of Tooth Brushing for Children, started in 1932, is held every year for elementary school students
during Dental/Oral Health Week (June 4th to 10th). For the 79th event in 2022, participating schools chose a date toparticipate and took part by watching an approximately 40-minute long educational DVD. Approximately 250,000
elementary school students attending a total of 4,585 schools participated in 2022, including students in Japan and other
Asian countries. The theme of the 2022 event was “Brush Up Your Teeth and Yourself.” Prepared with editorial supervisionfrom Toshikazu Yasui of Meikai University, the program focuses on the gums, including learning about individual oral
conditions and using dental floss. In addition to promoting understanding of preventive dentistry, the program taught
students about the importance of consistency through oral care, a central part of healthy living habits.
Cumulative participants: 2,460,000

The Oral Health Event of Tooth Brushing for Children in Japan and other Asian countries.
The Oral Health Event of Tooth Brushing for Children in Japan and other countries(mainly in Asia)

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KidZania
Lion has been providing dental clinic-themed pavilions at KidZania Tokyo since 2006, at KidZania Koshien since 2009 and at
KidZania Fukuoka since 2022. These pavilions have been popular with kids. At them, children can choose from two
activities: the “Dentist” experience or the “Dental Hygienist” experience. These allow them to experience what it is like towork in these jobs.
At the pavilions, kids first undergo “training” as dentists or dental hygienists, learning about the importance of teeth taking
care of their own oral health and hygiene. Then, they use tools that are nearly identical to the real things, including
polishers and dental vacuums, to treat cavities and apply fluoride treatments to patients (training mannequins used in
dentistry schools) in the dentist’s chair. For completing their work, they receive a salary paid in the official currency of
KidZania, usable at other pavilions.
After their work experience, kids have commented that “treating cavities seemed really difficult,” that they “learned theproper way to brush teeth” and that they were “happy to protect teeth by getting rid of plaque.” The dental clinic pavilions
thus appear to be effective in communicating the importance of cavity prevention and oral health.

The Dental Clinic pavilion at
KidZania Tokyo

Kids treating a patient with acavityThe Dental Clinic pavilion at
KidZania Koshien

Kids undergoing training

The Dental Clinic pavilion at
KidZania Fukuoka

Kids learn how to hold and use
dental tools

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Developing Oral Healthcare Leaders
Lion seeks to promote preventive dentistry practices that consumers can performthemselves. To this end, in communities with which we have formed partnerships, wehold oral healthcare leader development lectures to empower local governments, asoral healthcare leaders, to provide residents with tooth brushing information andpractical techniques that can be beneficial to overall health. We are currently carryingout these activities in the cities of Ishinomaki and Sakaide.
Ishinomaki [Japanese]
Sakaide [Japanese]

Oral healthcare leader development
lecture in October 2022 in a meetingroom at Sakaide City Hall

Corporate Wellbeing Support Service
Lion offers oral care seminars and five-minute saliva tests for corporate employees and municipal employees to ascertain
their oral conditions. We strive to promote oral health care by helping people develop healthy habits starting with themouth.

Corporate Wellbeing Support Service

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Preventive Dentistry (Professional-Care)
Professional Care (Preventive Dentistry Implemented by Dentistry Specialists)
Salivary Multi Test (SMT)Supporting the Implementation of Preventive Dentistry at Dental Clinics: L-Support

Professional Care (Preventive Dentistry Implemented by Dentistry Specialists)
The alignment of the teeth and other oral conditions are unique to each individual. Receiving professional care fromdentists or dental hygienists is crucial—not just to treat dental problems, but to prevent issues like cavities and gum disease
before they arise. Such care includes fluoride treatments and instruction on brushing methods suited for one’s own oral
conditions. In addition, it is best to get regular checkups at a dental clinic two to three times per year to check the state ofyour oral conditions, including the health of the teeth and gums. Lion promotes the habit of receiving regular professional
care.

Salivary Multi Test (SMT)
SMT is a five-minute testing system that can measure the levels of six analytes related to dental and gum health (cariogenic
bacteria, acidity, buffer capacity, leucocytes, proteins and ammonia) in saliva collected by rinsing the mouth with 3 ml ofdistilled water. This allows dentists or dental hygienists to provide immediate feedback to their patients as part of a dental
checkup. Knowing objectively their oral health conditions helps motivate patients to engage in preventive dentistry.
Furthermore, as part of Lion’s efforts to promote preventive dentistry, this test is incorporated into the Company’s internal
dental checkups and utilized to establish good oral care habits among employees. Dental checkups with SMT are currently
suspended due to COVID-19.

Collecting a saliva sample afterrinsing

Measured with test paper andspecial equipment
Share measurement results

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Supporting the Implementation of Preventive Dentistry at Dental Clinics: L-Support
Lion Dental Products Co., Ltd.* operates L-Support, a program to support the implementation of preventive dentistry at
dental clinics.
The L-Support program provides information and services useful for regular patient care to registered clinics so that theycan effectively focus on preventive dentistry. The program offers seminars, video content and a dedicated website for
dentistry professionals, providing opportunities to gain a broad range of preventive dentistry knowledge, including about
oral care products for dental clinics.

A preventive dentistry seminar

Using video content*Lion Dental Products Co., Ltd. [Japanese]

Inclusive Oral CareTo ensure that anyone can develop effective oral care habits, we are increasing opportunities for people to learn about oral
care through the Inclusive Oral Care project as a way to tackle social issues. In Japan, the relative poverty rate amongchildren (13.5%*1) is becoming a public concern. Children of economically disadvantaged families have inferior healthhabits*2 and fewer beneficial experiences*3 than the children of more affluent households. In particular, the percentage ofchildren with five or more cavities is nearly double.
Since 2021, based on the “Dental and Oral Health” concept, Lion has developed an experience-based program called the
Okuchikarada Project. We are working with NPOs and local governments at children’s cafeterias to promote preventive
dentistry habits and boost children’s self-esteem. We are also creating opportunities for Lion employees to participate inthese activities to experience these social issues directly, thus promoting understanding of the importance of the direction
the Group’s direction is aiming for and of contributing to putting our purpose into practice.
Furthermore, in 2022, we verified the effectiveness of the experiential program conducted in collaboration with partners inindustry, government and academia in Okinawa Prefecture, which has the highest percentages of child poverty and children
with cavities in Japan. Results showed the signs that the experiences helped children to form oral care habits and boost selfesteem. We will use the knowledge we gained from this verification to provide even more effective experiential programs.

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plaque buildup before andDental and Oral Health Program Dental
after the experiential program(The dyed areas indicate plaquebuildup.)*1 Source: Ministry of Education, Culture, Sports, Science and Technology, 2020 School Health Survey Statistics*2 Source: Department of Social Medicine, National Institute of Child Health and Development, Adachi City and Adachi City Board of
Education (FY2016)*3 Receiving praise from others, communicating with adults, acquiring life skills, etc.

Inclusive Oral Care [Japanese]

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Research (Preventive Dentistry Research)
Partnerships in Industry and Academia

The Lion Award

Partnerships in Industry and Academia
Our society and ways of living are changing rapidly as we face such increasingly serious social issues as low birth rates, anaging population, declining population and the depletion of resources on the one hand and dramatic technological progressin such areas as AI and IoT on the other. In order to keep up with these changes and continue supporting the public’s health,
we are focusing on not just providing goods but offering new value to our customers. Open innovation through partnerships
with external organizations, such as government agencies and other companies, is key to this endeavor.
In the oral health field, we are investigating the status of dental alignment in the children of elementary schools of Kuroishi
City in Aomori Prefecture and students of Hirosaki University, a Designated National University, to confirm the relationshipbetween dental alignment and living habits. In addition, in collaboration with Hitachi Ltd. and Hitachi Health Center, Lionhas confirmed the benefits of dental health checkups in the workplace on a 10,000-person scale, as well as obtained usefuldata that will lead to healthier employees. By acquiring and disseminating this new information and utilizing it in thedevelopment of products and services, we are able to derive value for the creation of healthier living habits.

The Lion Award

Lion established the Lion Award in 2001 to support the activities of academic associations and the development of young
researchers. The prize is awarded via the International Association for Dental Research, the world’s largest dental research
association, as well as, in Japan, the Japanese Society of Pediatric Dentistry, Japanese Society for Oral Health, JapaneseSociety of Gerodontology, Japanese Association for Oral Biology and Japanese Society of Periodontology. In the 21 years
since its establishment, the prize has been awarded to 219 researchers.
Lion Award

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Creating Healthy Living Habits

Initiatives to Establish Cleanliness and Hygiene Habits
Sustainability Material Issue 2 Creating Healthy Living Habits

Approach
Activity Policy
Establishing Proper Cleanliness and Hygiene Habits
Hygiene and Health Care in Times of Disaster
Hand Hygiene Management for Professionals

ApproachSince the 1890s, Lion has implemented educational activities aimed at spreading the practice of washing with soaps anddetergents. Furthermore, since the 1990s, when group infections through food poisoning came to be seen as a social
problem in Japan, Lion has advanced the unique concept that washing with antibacterial hand soap can be fun, promoting
the formation of proper hand washing habits alongside its products.
We can work together to keep germs and viruses off of us and keep from bringing them into the places we live, work andplay. The first step is to wash our hands and gargle as soon as we get home. To help realize healthy living for all, Lion seeks
to help firmly establish basic habits like these. Lion has long carried out activities to this end in Japan and across Asia.

Activity Policy

To establish cleanliness and hygiene habits, Lion’s policy is to foster proper habits that can be practiced anywhere, anytime.
In addition to fostering proper cleanliness and hygiene habits in everyday life with a focus on children, Lion promotes handcleanliness care that can be practiced when there is insufficient water for washing and the establishment of cleanliness andhygiene practices for food service professionals, such as those working at restaurants and hotels. In doing so, we seek to go
to consumers where they are under the KireiKirei banner, partnering with local communities, including government bodies
and schools, to advance employee-led activities together.

Establishing Proper Cleanliness and Hygiene Habits
Employee Participation
Lion carries out activities to promote proper hand washing habits as part of junior employee training. Every year, around
100 junior employees work in teams to teach children at kindergartens and preschools around Japan the importance ofhand washing.
Furthermore, we are helping increase awareness among employees through activities in coordination with retailers and byincorporating activities to promote proper hand washing habits at kindergartens and preschools into the training of junioremployees. We are advancing initiatives with trading partners around the country, such as Sugiyama Drugs Co., Ltd., in
Nagoya.

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Activities to promote proper hand washing habits as part of junior employee training (2019)

In 2021, we expanded the scope of employees’ activities to promote proper hand washing to include elementary schools. To
minimize the number of visitors to elementary schools and thereby lower virus infection risk, the employees leading theactivities conducted hybrid class visits that could be joined online. Since 2022, we have been shifting toward holding theevents in person.
The theme of the classes was “learning proper hand washing to protect our health and the health of those we care about.” In
the classes, the employees worked to instill understanding of hand washing and proper habits by encouraging theparticipating children to think about why hand washing is important and ways of protecting themselves from viruses andbacteria.

A hybrid class merging in-person
and online learning (2021)

A school visit (2022)

Lion aims for all current employees to have participated in activities to promote good hand washing habits by 2050. From2012 to 2022, 1,569 employees have participated (cumulative participation rate 49.2%). Over this period, approximately
39,000 children took part in these activities.
Percentage of All Current Employees
That Have Participated in Activities to Promote Proper Hand Washing Habits

Preschoolers, Students and Faculty Participating in Activities to Promote Proper Hand Washing Habits
2018
2019
2020
2021
2022
5,900
4,100
200
1,300
2,300
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Promotion through Our Businesses

The KireiKirei brand has continued implementing the Kirei Relay Project, which aims to realize a society full of humaninteraction by encouraging people to practice hygiene habits for the sake of the people they care about.
This project seeks to make everyday hand washing more fun. For example, one activity has participants create one-of-kindpersonalized KireiKirei hand soap bottles, and another involves holding a week-long hand washing challenge for preschools
and elementary schools. Through these and other activities, the project is promoting the formation of proper hand washingand gargling habits.
Washing for at least 30 seconds is fundamental to the effective removal of viruses and germs from the hands. We are
implementing fun activities to help foster proper habits like this even among small children.
In 2022, ｔo prevent infection outside the home, the Lion Group collaborated with shopping districts and local governments
to promote the habits of cleanliness and hygiene through the Relay Project for Cleanliness, and conducted a project topromote “HAND WASH & HYGIENE before meals at hotels and restaurants”. Moreover, in support of Global Handwashing Day
on October 15, we hosted the Global My Bottle Sticker Drawing Contest, with the aim of establishing fun hand washinghabits for the whole family. For the contest, children created their one-and-only KireiKirei bottles with their own drawings.
We received more than 24,000 entries from children in Japan and seven other countries and regions in Asia.

Installation of automatic soap
dispensers in toilets at Kakogawa
City Hall in 2021
(Relay Project for Cleanliness)

Entries for the Global My Bottle
Sticker Drawing Contest

HAND WASH & HYGIENE before meals
at hotels and restaurants [Japanese]
Proper Hand Washing, Gargling
and Sanitizing Techniques [Japanese]
The Secrets of the Bacterial Barrier [Japanese]
Bacteria Battle! Project [Japanese]Let’s Create Together!KireiKireiMy Bottle Campaign [Japanese]Life Hygiene Information (Lidea) [Japanese]

Local Communities

We are promoting proper hand washing habits at kindergartens, preschools, elementary schools and public facilities,
mainly in areas across Japan where Lion facilities are located as well as in Ishinomaki City (Miyagi Prefecture), which wasaffected by the Great East Japan Earthquake and an area closely connected to our founder, and Sakaide City (Kagawa
Prefecture), where KireiKirei Hand Soap is manufactured.
Specifically, we have been promoting proper hand washing habits at kindergartens and preschools in Ishinomaki City since2012 as part of support for recovery from the Great East Japan Earthquake. Since 2015, junior employees at Lion’s Sendai
Office (also in Miyagi Prefecture) have taken part in these activities as part of their training.
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Activities to promote proper hand washing habits in Sakaide City

Activities to promote proper hand washing habits in Ishinomaki City

KireiKirei City-Sakaide Project [Japanese]

Lion’s initiatives to promote recovery from theGreat East Japan Earthquake

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Overseas Initiatives
Lion began marketing KireiKirei hand soaps overseas in 2005. Today, the brand is sold by Lion Corporation (Singapore) Pte
Ltd, Lion Corporation (Thailand) Ltd., Southern Lion Sdn. Bhd., Lion Corporation (Korea), Lion Daily Necessities Chemicals(Qingdao) Co., Ltd., Lion Corporation (Hong Kong) Ltd. and Lion Home Products (Taiwan) Co., Ltd. Each company, alongside
the provision of products, carries out activities to promote the formation of cleanliness and hygiene habits, aiming toincrease awareness of cleanliness and hygiene. In Bangladesh, a new market for the Group, we will also contribute to thedevelopment of cleanliness and hygiene habits by providing educational materials through the Japan International
Cooperation Agency (JICA) as a means of supporting children’s hygiene education.

Ai! Kekute* hand washing class in Lion
Promoting hand washing habits in Lion
Corporation (Korea)
Corporation (Thailand) Ltd.
* Ai! Kekute (literally, Oh! Clean!) is a hand soap brand marketed by Lion Corporation (Korea).

Lion Group’s Social Contribution
Activities

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Hygiene and Health Care in Times of DisasterIn times of disaster, living in evacuation shelters, a limited water supply and other factors can increase hygiene-related risks
in daily life, so keeping clean and taking care to stay healthy are extra important. In particular, maintaining oral hygiene andhealth—which is connected to one’s overall health—is crucial.
Lion has published a pamphlet covering oral and hand hygiene and health care in times of disaster as well as ways of
preparing for such situations. In addition to providing information about hygiene and health in times of disaster, Lion
participates in disaster readiness and other events around Japan to promote awareness and good practices.

“Hygiene and Health Care inTimes of Disaster” bookSix-sheet version
Print out and fold stacked sheets
down the center to make a book

“Hygiene and Health Care inTimes of Disaster” pamphlet

The “Hygiene and Health Care in Times of Disaster” pamphlet is available for download here (in English, Japanese, Simplified Chinese and Traditional Chinese)

Sumida-ku disaster
preparedness fair
(Ryogoku area)

Edogawa-ku disaster drill(Hirai area)

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Kita-Harima business fair
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Hand Hygiene Management for Professionals

Professionals who handle food, be it in restaurants, hotels, food product factories or other industries, all want to provide thebest service possible so that their customers will enjoy their food with peace of mind, have a good time, and make great
memories.
Lion Hygiene Co., Ltd., as a comprehensive hygiene management company, helps create clean, safe and hygiene
environments through products, hygiene assessments and other forms of support based on scientific insights in order tohelp food service professionals make their vision a reality. In particular, the foundation of hygiene management for
professionals who handle food is thorough hand washing. As part of support efforts, Lion Hygiene provides hygiene
management information that is important for such professionals, including not only hand washing techniques, but key
points about hand washing timing and facilities, among other topics, through “Hygiene Tayori” fliers issued four times a
year.

* “Hygiene Tayori” fliers offering hygiene management information

When to wash hands: handlingfood

Key points for hand washingfacilities

Key points of hygienic handwashing

Infectious disease prevention:bathrooms

Supporting Hand Hygiene
Management by Professionals (Lion
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AI/IoT Cleanliness and Hygiene Initiatives

Related Information
Joint initiative withKireiKireiand teamLab [Japanese]
KireiKirei× Sony ExploraScience joint workshop [Japanese]
Lion and Hakuhodo i-studio jointly develop IoT device KireiKirei Push Connection [Japanese]

Academic Research on Cleanliness and Hygiene Initiatives

Related Information
News Release:A simulation model that visualizes the risk of viral infection in a residence immediately after returning ho
me was developed. [Japanese]
News Release:Bacteria growth that finds its way to your hands before you know it is inhibited by hand wash containing
soap ingredients! [Japanese]
News Release:Results of ｈygiene awareness survey and handwashing behavioral observation against COVID-19 in 2021
— More than 60% of respondents want frequent handwashing to continue even after the pandemic ends! [Japanese]

News Release:Around 90% of consumers say they wash their hands after returning home, but a simulation shows that people are spreading viruses before they wash their hands [Japanese]
News Release:Bad breath and susceptibility to getting colds are correlated! The findings of a study of 4,491 men and wo
men aged 20 to 69. [Japanese]
News Release:Hygiene habits are shifting from something we need to do to something we want to do. We set up a “Cleanliness Voting Booth” for a limited time at Shinjuku Station as an experiment to encourage hygiene behavior among pe
ople out and about at the gateway to the city. [Japanese]
News Release:Survey of actual hand washing during the COVID-19 pandemic [Japanese]
News Release:Worried about germ transmission at the office? Places and things to watch out for and ways to brush your teeth that reduce risk at the office [Japanese]
Lidea lifestyle information website (content relating to handwashing, gargling, disinfection, etc.) [Japanese]99

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The Lion Group’s Social Contribution Activities
Basic Approach

The Lion Group believes that advancing initiatives to create healthy living habits by providing products and services as wellas conducting educational activities and disseminating information is its social responsibility and a way of putting its
purpose, “Make a difference in everyday lives by redesigning habits: ReDesign,” into practice. The Group is engaged inestablishing oral care habits as well as cleanliness and hygiene habits in Asia. In addition, we have been involved withenvironmental conservation activities and donation activities at various business locations and in the regions served by ouroverseas Group companies. In carrying out such activities, our employees take the initiative, promoting the activities whileworking closely with local citizens, forming partnerships with local governments, retailers, schools, dental experts andcommunities.

Sustainable Activities Conducted by Overseas Group Companies* Some activities have been cancelled or postponed to prevent the spread of COVID- . The Lion Group isrevising its activities, including the use of online technologies, as it continues working to create healthy living
habits.

Lion Corporation (Singapore) Pte Ltd

Lion Corporation (Thailand) Ltd.

Southern Lion Sdn. Bhd.

PT. Lion Wings

Lion Corporation (Korea)

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

Lion Corporation (Hong Kong) Ltd.

Lion Home Products (Taiwan) Co.,Ltd.

Activities Creating Healthy Living Habits as a GroupThe Oral Health Event of Tooth Brushing forChildren in Japan and other countries (mainly in
Asia)

Promoting Cleanliness and Hygiene Habits

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Creating Healthy Living Habits

Activities at Lion Corporation (Singapore) Pte Ltd
Oral Health Care

Cleanliness

Donation Activities* Some activities have been cancelled or postponed to prevent the spread of COVID-19. The Lion Group isrevising its activities, including the use of online technologies, as it continues working to create healthy living
habits.

Oral Health Care
1 Participation in the Singapore Oral Health Conference 2022 in Collaboration with the National Dental
Centre Singapore

The National Dental Centre Singapore (NDCS) celebrated its 25th anniversary in 2022. As part of the celebration, NDCS
organized an online event titled “NDCS 25th Anniversary - Bridging the Past, Present and Future” that brought together
dentists, general practitioners, specialists and researchers to exchange information on progress to date and expected future
developments in academic and clinical dentistry.
The event included a virtual exhibition featuring the latest products related to oral health care and talks by prominent
national and international dental experts. Lion Corporation (Singapore) Pte Ltd. (“LCS”) provided all 500 participants with aset of oral care products that included Systema and NONIO products. Systema & NONIO were also acknowledged during theonline event and in the digital program booklet, with the brand logos & full page advertisement featured to expand brandrecognition.

Online program booklet with full-page ad and logo for Systema

2 Educational Activities on Oral Health Care for the Silver Population

On August 22, 2022, NDCS collaborated with Singaporeʼs National Library Board (NLB) to hold an oral care seminar at theJurong Regional Library to provide oral care tips and knowledge to participants aged 50 and above as part of the 8020
campaign (referring to having 20 teeth left at the age of 80). The aim of this seminar was to improve the oral health of thoseof advanced age in Singapore. LCS supported the event by providing Systema and NONIO products to be distributed to its 40
participants, along with LION gift sets as prizes during the Q&A session. In a post-seminar participant survey, the event
received positive feedback, “I and the participants found this session fascinating and insightful.”

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3 Partnership with Health Promotion Board in Afterschool Oral Care Program

Singapore’s Health Promotion Board (HPB) launched the Afterschool Oral Care Program, a one-year program targetingchildren aged 3 to 5 at day-care centers and nursery schools with the aim of teaching the importance of oral care from ayoung age. The program entails dental clinic staff visiting day care centers and nursery schools to perform dental screenings
and educate children about the importance of oral care. Through June 2022, LCS supported the program by providing
60,000 sets containing KODOMO Toothpaste and leaflets for distribution to the children.

4 Partnership with Health Promotion Board in Afterschool Oral Care Program

In August 2021, the Health Promotion Board (HPB) launched the Afterschool Oral Care Program, a one-year program
targeting children aged 3-5 years at day-care centers and nursery schools with the aim of teaching the importance of oral
care from a young age. The program entails dental clinic staff visiting day care centers and nursery schools to perform
dental screenings and educate children about the importance of oral care. LCS provided 60,000 sets containing KODOMO
Toothpaste and leaflets for distribution to the children after the conclusion of the program.

KODOMO brand pamphlets

5 Product Sponsorship to Smileworks Dental Clinic

LCS is working with Smileworks Dental Clinic to promote oral care habits so thatpatients can continue to take care of their oral health at home after receiving
treatment.
The collaboration was continued in 2022 and 300 sets of Systema & Kodomo products
were distributed to the patients from August to December.
Systema and KODOMO oral care sets

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6 Promoting Good Oral Health through Dental Clinics

LCS supports Thomson Dental Centre, a dental clinic group in Singapore, in educating patients on good oral health habits. A
dental care set containing KODOMO or Systema oral care products (products of LCS) is provided to first-time patients at
Thomson Dental Centre. Dentists educate patients on correct tooth brushing and oral care habits using a dental care set(KODOMO Kid Set or Systema Gum Care Set) selected based on the patient’s age and oral health conditions. Each dental set
consists of an oral care information leaflet, a toothbrush and toothpaste. The Systema sets also include mouthwash.
In 2022, a total of 10,100 patients from Thomson Dental Centre had received the dental care sets.

KODOMO Kid Set

Systema Gum Care Set

7 Community Dental Checkups for the Elderly in Collaboration with National Dental Centre Singapore

National Dental Centre Singapore (NDCS) has established a program of community dental checkups with the goal of raisingawareness of the importance of oral health among the elderly. The checkups include the provision of guidance on theproper care of dentures and programs aimed at helping to provide treatment to relieve pain and maintain/restore patients’
oral function.
This program was temporarily suspended to prevent the spread of COVID-19 but was resumed at the end of 2020. LCS
distributed Systema Toothpaste to 200 people over the age of 40 and senior citizens who participated in the community
dental checkups on October 16, 2022.

8 Educational Event Held by the PAP Community Foundation Sparkletots Preschool
22nd March is designated by the United Nations as World Water Day. In celebration ofWorld Water Day in 2021, the PAP Community Foundation (PCF)* Sparkletots Preschooltaught children about the importance of saving water in their daily routines, such as
during tooth brushing. Lion Corporation (Singapore) Pte Ltd (“LCS”) supported theevent by providing 600 KODOMO Toothbrush and KODOMO Toothpaste sets for thepreschool’s 5- and 6-year-old pupils.

Newsletter distributed to parents* PAP Community Foundation (PCF) is a charitable foundation founded by the Singapore People’s Action Party (PAP) in 1986 and is committed
to nurturing a multi-racial, fair, just and inclusive society through the provision of educational, welfare and community services.

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9 Supported the Singapore Dental Association’s Oral Health Awareness Campaign
In March 2021, the Singapore Dental Association (SDA) launched an integrated online
communication campaign targeting consumers to raise awareness and correct
misconceptions regarding oral care. The campaign comprised of the three parts shown
below. Invited by SDA to participate the third part, LCS provided SG$60 worth of
Systema and KODOMO products to each of the 22 key opinion leaders.

Campaign card

I. Survey of Singaporeans on their oral health habits: 500 respondents
II. Solicitation of user generated content under the hashtag #toothtruths on Instagram to encourage Singaporeans to talkabout their oral health journey
III. 22 key opinion leaders received oral care gift boxes and talked about their oral health journey on their Instagram
accounts

10 Singapore Oral Health Therapy Congress

The Singapore Oral Health Therapy Congress is an annual meeting of dentistry experts, where speakers discuss a wide rangeof topics that are not limited to oral hygiene, but also include total well-being and pediatric management.
Program was continued in 2021 on 17th & 24th October, with about 300 participants from dentistry experts.
LCS sponsored the event with cash support, but the event organizer suspended its planned distribution of products in orderto maintain social distancing

Event held online
Event poster

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Hygiene Care
1 Educational Hand Washing Activities at Elementary School

On September 22, 2022, 125 students from The Japanese School in Singapore attended a fun lesson on how to properly
wash their hands, conducted by LCS in anticipation of Global Handwashing Day. The activity included an education session
on the importance of hand washing, along with a fun quiz and the opportunity for the children to design their own handsoap bottle stickers to participate in a drawing contest. Through the activity, the children learnt the importance of handwashing while displaying their creativity through designing of the bottle stickers.

Children creating their own original soap bottle stickers

Children washing their hands using the correct hand-washing methods they learnedChildren from a Japanese school in Singapore participate in an educational hand washing event

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Teaching Correct Hygiene Habits in Collaboration with Manulife

Free Bee SG* tied up with insurance company Manulife to promote a “Prevent and Protect” program for infectious diseases
such as hand-foot-and-mouth-disease.
This program was held in April 2019 and reached out to preschools in Singapore to provide information about insurance
coverage for hand-foot-and-mouth disease and other diseases. Approximately 1,100 goodie bags, which included KireiKirei
products, were distributed to families with young children. As part of the program, LCS visited preschools with the Lion
mascot to educate children on hygiene tips and encourage good hygiene practices using KireiKirei brand hand soap andbody soap marketed by LCS.
* Free Bee SG is a non-profit online community for parents to obtain information, freebies, etc., regarding pregnancy and parenting.

Poster to promote logo
recognition during events

Facebook post to promote
KireiKirei productsHygiene-related Q&A during
eventsLion mascot visits a preschool

Donation Activities

To fulfill its corporate social responsibility, LCS actively engaged in such corporate social responsibility activities as in-kind
donations of hygiene products sold by the Company.

Donation Activities through Online Events

Collaboration with Centre for Domestic Employees (CDE) - May Day Domestic Employees
Celebration
PeriodOutside collaborators
Donations
Details

June 2021
National Trades Union Congress (NTUC)
Centre for Domestic Employees (CDE)
Systema and Kyusoku Jikan products
The May Day Domestic Employees Celebration 2021 virtual live show was organized by
the CDE, which is a unit under NTUC. The program was live-streamed to domestic
employees in recognition of their hard work and contributions. 250 domestic
employees took part in the program, and LCS supported the event by sponsoringproducts for the game show segment.

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Slide showing appreciation for sponsors shown during the event(featuring the Systema and Kyusoku Jikan logos)

Donation Activities Related to the COVID-19 Pandemic

Collaboration with Specialist Dental Group for oral kits to medical staff in Hospital
PeriodOutside collaborators
Donations
Details

November 2022
Mount Elizabeth Medical Centre
750 sets of oral care products including NONIO mouthwash
LCS collaborated with Specialist Dental Group to distribute oral care sets to 750 healthcare workers at Mount Elizabeth Medical Centre as a token of appreciation.

Oral care kits provided to healthcare professionals

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Creating Healthy Living Habits

Activities at Lion Corporation (Thailand) Ltd.
Oral Health Care

Cleanliness

Environmental Conservation Activity

Donation Activities* Some activities have been cancelled or postponed to prevent the spread of COVID-19. The Lion Group isrevising its activities, including the use of online technologies, as it continues working to create healthy living
habits.

Oral Health Care
1 Lion Oral Health AwardOn July 22, 2022, Lion Corporation (Thailand) Ltd. (LCT) held a ceremony for the Lion Oral Health Award at the TK. Palace
Hotel & Convention in Bangkok. In collaboration with Thailand’s Ministry of Public Health, LCT has been supporting andfostering people by conducting studies and activities that are beneficial to preventive dentistry in Thailand since 2009.
For the 2022 Lion Oral Health Award, LCT bestowed six awards (first through third place and three consolation prizes) todentists and dental nurses. About 180 people, including dentists and dental nurses, participated in the accompanying
seminar, where Dr. Paiboon gave a lecture on oral care for the elderly.

Images from the awards ceremony

2 Improving the Oral Function of Senior Citizens in Cooperation with a Provincial Public Health OfficePhrae Province is a markedly graying area in northern Thailand. Since 2018, in cooperation with the Provincial Public Health
Office, LCT has been promoting activities to increase senior citizens’ quality of life by reducing incidents of choking,increasing chewing strength and improving dry mouth. The concept behind these activities was the topic of a talk given by adental specialist at the Lion Oral Health Award 2016. Dentists of the Provincial Public Health Office regularly present
lectures about oral care in communities with large concentrations of senior citizens. To prevent declines in the mouth’sfunction and to maintain and improve the vitality of the area around the mouth, the dentists teach mouth exercises called“Kenkobi” These exercises were developed by Lion Foundation of Dental Health (LDH), a public interest incorporated
foundation established by Lion Corporation in Japan. Most attendees see improvement within six months of starting theexercise program, and their difficulties with dry mouth and choking are reduced. LCT provides the province with “Kenkobi”
brochures and display boards to help more senior citizens do the exercises.

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In 2022, LCT implemented “Kenkobi” mouth exercises for medical volunteers and care givers from Laemchabang at LCT’s
guest room in Sriracha on June 20, students at Thung Krad Elderly School in Sriracha on July 7, people at We Share
Foundation in Bangkok on July 14 and students at Yannawa elderly school in Bangkok on October 7. A total of 168 seniorcitizens participated in the event.
LCT will continue to contribute to improving oral care for the citizens of Thailand in cooperation with the Provincial Public
Health Office.

Participants practicing “Kenkobi” mouth exercises together

3 Collaboration with Provincial Hospitals, Health Offices and Retailers

Milk teeth sometimes receive less attention than adult teeth because they eventually fall out. However, implementing oral
care from a young age is very important because oral health affects overall health.
With the aim of promoting proper oral health care and firmly establishing the concept of preventive dentistry,* LCTcollaborates with provincial hospitals and health offices to carry out related activities, for example, offering dental
checkups, treatment and instruction in proper brushing to children. At local schools this begins with local dental hygienists
conducting dental checkups. Then, if cavities are found, a treatment called the “Smart Technique” is performed.
In 2018, LCT collaborated with local retailers to introduce correct brushing methods through a show for children aged 2 to 5
using the KODOMO brand. LCT provided discount coupons for LCT products viable only at the cooperating retailers. Thisinitiative is aimed at encouraging children to continue to brush their teeth correctly at home.
In 2022, these activities were held at Banbanramung School on July 26 and a school in Laem Chabang on September 2, with65 children and 10 dentists and dental assistants participating. LCT will expand this initiative to other areas to teach more
people in Thailand about oral care.
*Lion Group companies overseas are collaborating with dental professionals and retailers on initiatives based on theconcept of preventive dentistry. Working together with dental professionals, Lion strives to increase awareness andunderstanding of oral care by sharing information on good oral care and practical tooth brushing methods. In addition, Lion
promotes good oral care habits by providing products that suit individuals’ specific oral care needs through retailers andother markets.

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A dentist delivering a lecture to company officials

Dentists and dental hygienists performing a treatment

4 Oral Care and Health Education for Employees during Their Pregnancy

During pregnancy, the secretion of saliva tends to decrease due to an increase in the production of such hormones as
estrogen, causing the risk of cavities and periodontal disease to rise.
LCT conducts seminars to communicate the importance of health and oral care during pregnancy to expectant employees at
its Humanized Hall facility. Regarding health management, nurses from LCT’s nurse office and doctors give lectures onnecessary nutrition during pregnancy. With regard to oral care during pregnancy, they conduct lectures on how a mother’soral condition can affect her baby’s oral health and teach correct tooth brushing practices.
In 2020, 10 employees who were either expecting or recent mothers participated in this seminar.

Presentation of proper
toothbrushing technique by LCT
staff

Attendants brushing their teeth
after a lecture

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5 Working with a Provincial Public Health Office in Southern Thailand to Reduce Cavities

Childhood cavities are a big problem in southern Thailand. To solve this problem, LCT has started a project aimed at
reducing cavities among five local families in cooperation with the Provincial Public Health Office in Pattani Province. The
issue in this area is that neither adults nor children are well educated about oral care. They do not know correct practices forpreventing cavities. The idea for this project, called “preventive dentistry with the whole family,” was the topic of a lecture
given by a dentist at the Lion Oral Health Award 2017.
The participating five families will practice correct self-care at their homes and go to see a dentist periodically for additionalroutine care. Their dentist will record their oral conditions using smartphones and use these records to give them feedback.
LCT will contribute to solving social issues in southern Thailand by establishing good oral care habits and reducing cavities
through this project.

Routine care at the dentist’s
officeRecording oral conditions using asmartphone

6 Oral Care Promotional Activities in Cooperation with the Government

The Thai government has held an annual Health Fair since 2012 with the aim of increasing Thai citizens’ awareness of healthissues. The 2018 Health Fair was held at the Ao Udom Community Center in Laem Chabang, Sriracha district. The fair’s
events take place in local community centers, where medical facilities and health product retailers set up booths manned byvolunteer physicians and nurses who provide checkups for participants and prescribe medicine. LCT ran a booth in this fairto introduce and practice “Kenkobi” mouth exercises with participants over 50 years old. LCT also gave participants
products from its GoodAge and SALZ oral care brands for seniors. About 1,000 people participated in the Health Fair in 2018.

“Kenkobi” mouth exercises with participants

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Cleanliness
1 Lion Hand Washing Stations

In accordance with LCT's commitment to building goodness in society and bringing good health to consumers, the company
promotes hygiene by providing hand washing stations and educating the community on hygienic hand washing techniques.
In 2022, KireiKirei hand washing stations, equipped with sponsored hand soap and hand soap dispensers as well as posters
that promote proper hand washing techniques were set up at the Yannawa district’s elderly school (Bangkok) on January 28,
Ban Rai Nueng Elderly School (Sriracha) on May 18, Thai Kasikorn Songkrow School (Sriracha) on May 20 and Wat Dok Mai
School (Bangkok) on June 6. Instructors use black lights to make it easy for participants—from first- and second-grade
elementary school students to those over the age of 50—to see where hands are dirty or unwashed. The hand washingstation allows everyone to wash their hands immediately after touching anything they use.

Holding bottles of KireiKirei hand soap, LCT staff members pose in front of hand washing stations

Learning about hand washing at Yannawa district’s elderly school

A hand washing lesson at Ban Rai Nueng Elderly School

A hand washing lesson at Wat Dok Mai School

A hand washing lesson at Thai Kasikorn Songkrow School
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2 Instruction on Healthy and Hygienic Living Habits at Elementary Schools

On December 1, 2022, LCT gave an extra-curricular lecture to first- and second-year students of Bangkok Christian College on
tooth brushing and hand washing. 833 students participated in this event.

Students have fun while learning with LION-chan

3 ‘Happy Life Happy Home’ Programme at Elementary Schools

LCT held the Happy Life Happy Home program at elementary schools. This program taught the students techniques forkeeping their bodies healthy and clean and for keeping their homes clean and comfortable. The program comprises twoparts, Happy Life (covering tooth brushing, hand washing, face washing and showering) and Happy Home (covering laundry,
dish washing and floor cleaning), and is aimed at increasing awareness of health, comfort and cleanliness through the useof LCT products.
In 2022, a total of 157 fourth grade students from both Bangkok’s Wat Dok Mai School on September 15 and Thai Kasikorn
Songkrow School on September 27 were taught not only how to brush their teeth and wash their hands, butalso how towash and care for their clothes.
The children were very interested in the program and they have been practicing what they learned at home.

Learning about tooth brushing during the Happy Life portion of the program

Learning about laundry in a hands-on setting during the Happy Home portion of the program

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A group photo with LION-chan after the program

4 The Public-Private Collaboration Project

LCT contributes to the Public-Private Collaboration Project being advanced by the government of Thailand. In 2019, oral
health and hand-washing educational activities were held in Lamphun Province and at the Saha Group’s Fair.* The theme of
LCT's booth was the importance of proper oral health and hygiene practices.
At the Saha Industrial Park in Lamphun, LCT encouraged good hygiene practices using KireiKirei hand soap to teach thelocal students and provided education about “Kenkobi” mouth exercises for senior citizens.
At the Saha Group Fair, Saha Group companies meet each year and set up booths to exhibit their public-private
collaboration projects. In 2019, LCT invited senior citizens from a senior club in Yannawa district, Bangkok, and Rai Nueng
community center in Sriracha district, Chonburi, to join in “Kenkobi” mouth exercises training and provided instruction onproper tooth brushing methods at the booth. About 360 people from nearby communities participated this year.
* LCT is a joint venture of Lion Corporation and the Saha Group.

Encouraging good hygiene practices with KireiKirei hand soap at the Saha Industrial Park in Lamphun

Presentation on oral care at the Saha Industrial Park in Lamphun“Kenkobi” mouth exercises forsenior citizens at Saha Group Fair

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Environmental Conservation Activity
1 Environmental Awareness for Communities near LCT

On November 25, 2022, LCT educated 42 seniors in the Yannawa area neighboring LCT’s facilities on how to separate
reusable and recyclable waste. LCT encourages environmentally friendly habits through a point system in which employees
receive points by bringing in reusable waste and properly disposing of it.

A lecture on properly sorting garbage

2 Tooth Brushing Lectures at an Environmental FairLCT operated a booth at the “Eco-Products International Fair 2016,” an environmental fair. The concept of the booth wasthat humans are part of the environment and that “people can harmonize with the environment as long as they arehealthy.” The booth also featured the environmental efforts of LCT and Lion Corporation Japan.
On the event’s main stage, LCT conducted tooth brushing seminars for elementary school students, teaching that one’s
overall health starts with oral health, in line with LCT’s booth concept.

Tooth brushing lectures on themain stage

Students visiting LCT’s booth

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Donation Activities

To fulfill its corporate social responsibility, LCT, as a hygiene product manufacturer, actively engages in social contribution
activities, such as in-kind donations of hygiene-related products sold by the company.

Activity 1 Supporting oral care for the elderly
PeriodLocation
Donations
Details

July 14 and August 18, 2022
Thian Fah Foundation Hospital and the Weshare Foundation
Ascor-10 dietary supplement tablets
Under the theme of oral health, oral beauty and communication, LCT’s marketing teamled exercise sessions and provided Ascor-10 dietary supplement tablets to local seniorcitizens.

Activity 2 Sanitary napkin donations in Bangkok
PeriodLocation
Donations
Details

August 4, 2022
Wat Dok Mai School
Approximately 5,000 baht worth of sanitary napkins
As Bangkok has a policy of providing sanitary napkins to students free of charge,
sanitary napkins were donated to Wat Dok Mai School to support the students.

Activity 3 Supporting local cat and dog rescue efforts
PeriodLocation
Donations
Details

September 1, October 27 and November 3, 2022
Laem Chabang City Municipality, Wat Dok Mai Temple and the Soi Dog Foundation
Pet Care pet shampoo and other pet care products
LCT supported the rescue of stray or abandoned cats and dogs by providing donationsof the Pet Care brand of pet products.
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Laem Chabang City Municipality

Activity 4 Support for hospital repairs
PeriodLocation
Donations
Details

Wat Dok Mai Temple

Soi Dog Foundation

October 11, 2022
King Chulalongkorn Memorial Hospital
1 million baht
LCT donated funds through the Thai Red Cross Society toward repairs to the TiamSaipin Chokuwattana building carried out in 2022 by the Saha Group.

Saha Group executives presenting the donation to the Thai Red Cross Society

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Activity 5 Donations for seniors in rural areas
PeriodLocation
Donations
Details

March 2021
Disaster Action Center, The Thai Red Cross Society
3,600,000 units of KireiKirei alcohol gel 50 ml
Working with the Relief and Community Health Bureau of the Thai Red Cross Society,
LCT donated KireiKirei alcohol gel for inclusion in health care bags provided to seniors
in rural areas who require long-term support.

Activity 6 Donation of products for flooding victims
PeriodLocation
Donations
Details

October 2021
MCOT Public Company Limited (Thai state-owned public broadcaster)
LCT hygiene products
LCT took part in the MCOT Careless Project, donating hygiene products to support
victims of flooding in Saraburi.

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Donation activities related to the COVID-19 pandemic

Activity 1 Support for those in COVID-19 quarantine facilities
PeriodLocation
Donations

Details

March 7, 2022
A facility at Wat Dok Mai School for patients with COVID-19 who were not admitted tothe hospital
LCT hygiene products worth 6,700 baht, including the following:·SALZ toothbrushes and toothpaste·Shokubutsu-Monogatari liquid soap
·108 powdered laundry detergent·KireiKirei alcohol gel and hand soap
Provided oral care and hand washing products to 100 patients with COVID-19

Wat Dokmai School

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Activity 2 Donation of products for medical personnel and patients
PeriodLocation
Donations
Details

May 2021
Charoenkrung Pracharak Hospital (Bangkok)
LCT products worth 1,000,000 baht
LCT donated hygiene products to medical personnel and COVID-19 patients at a field
hospital managed by Charoenkrung Pracharak Hospital.

Activity 3 Donation of products for medical personnel and patients
PeriodLocation
Donations

Details

May 2021
Royal Thai Air Force Hospital (Bangkok)
LCT hygiene products worth 500,000 baht, including the following:·Systema toothpaste·Q’lean Shampoo·Shokubutsu-Monogatari (Plant Story) Shower Cream·Flore bar soap
·Dentor Pro Clean toothbrush·Kodomo talcum powder·Lipon F Purify dishwashing detergent·Silver Nano Powder Detergent·KireiKirei alcohol spray·Essence alcohol spray·Look Multi Surface Spray·Look floor cleaner
LCT donated hygiene products to medical personnel and COVID-19 patients at a field
hospital managed by Royal Thai Air Force Hospital.

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Activity 4 Donation of products for medical personnel and patients
PeriodLocation
Donations
Details

May 2021
Banphaew Hospital
LCT hygiene products worth 121,662 baht
LCT donated hygiene products to medical personnel and COVID-19 patients at a field
hospital managed by Banphaew Hospital.

Activity 5 Donation of products for medical personnel and patients
PeriodLocation
Donations
Details

May 2021
Bangkok Metropolitan Administration City Hall
Saha Group hygiene products worth 2,500,000 baht
LCT partnered with Saha Group to donate Saha Group hygiene products, including LCT
products, to medical personnel and COVID-19 patients at a field hospital managed by
the Bangkok Metropolitan Administration City Hall.

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Activity 6 Donation of products for medical personnel and patients
PeriodLocation
Donations
Details

June 2021
Medical Service Department, Bangkok Metropolitan Administration
LCT hygiene products worth 200,000 baht
LCT donated hygiene products to medical personnel and COVID-19 patients at a field
hospital managed by the Bangkok Metropolitan Administration.

Activity 7 Donation of products for medical personnel and patients
PeriodLocation
Donations
Details

July 2021
Takbai Hospital (Narathiwat Province)
LCT hygiene products worth 100,000 baht
LCT donated hygiene products to medical personnel and COVID-19 patients at Takbai
Hospital.

Activity 8 Donation of products for medical personnel and patients
PeriodLocation
Donations
Details

July 2021·Laem Chabang Hospital·Somdej Phraborom Ratchathewi Hospital·Chonburi Hospital
LCT hygiene products
LCT donated hygiene products to medical personnel and COVID-19 patients at threehospitals near its factory.

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Activity 9 Donation of products for patients
PeriodLocation
Donations
Details

July 2021
Wat Dok Mai School
LCT hygiene products
LCT donated hygiene products for COVID-19 patients at an isolation center set up at Wat
Dok Mai School.

Activity 10 Donation of products to a temple
PeriodLocation
Donations
Details

August 2021
Wat Ton Bon Temple·108 Shop laundry detergent·Essence Alcohol Spray·Lipon-F dishwashing detergent
LCT cooperated with Wat Ton Bon Temple and the Yannawa district's elderly school tosupport local residents impacted by COVID-19 by donating hygiene products.

Activity 11 Donation of products for patients
PeriodLocation
Donations
Details

August 2021
National Health Security Office, Ministry of Public Health (Bangkok)·Essence Alcohol SprayLCT worked with the National Health Security Office of the Ministry of Public Health todonate products for use in health care bags provided to COVID-19 patients.

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Creating Healthy Living Habits

Activities at Southern Lion Sdn. Bhd.
Oral Health Care
Cleanliness
Donation Activities

Environmental Conservation Activities* Some activities have been cancelled or postponed to prevent the spread of COVID-19. The Lion Group isrevising its activities, including the use of online technologies, as it continues working to create healthy living
habits.

Oral Health Care
1 Promoting the Lion Dental Health Program at Kindergartens and Primary Schools throughout Malaysia

The Lion Dental Health Program is a social contribution program established in 1998 by Southern Lion Sdn. Bhd. (“SL”) topromote good oral health habits in kindergartens and elementary schools throughout Malaysia. It is conducted throughout
the year. The main objective of the program is to create awareness of the importance of maintaining good oral hygiene forbetter overall health. The program is targeted at children between the ages of 4 and 12 as SL believes that good oral hygiene
must be cultivated from a young age.
The program was developed by the Lion Foundation for Dental Health (LDH) , a public interest incorporated foundation
established by Lion Corporation in Japan. SL has localized the program in terms of content and techniques to the local
audience. Over the years, it has worked with government-run dental clinics and the Malaysian Dental Therapists’
Association (MDTA) throughout Malaysia, and SL believes this program is an effective way to teach the Malaysian public
proper brushing techniques.
The program is conducted in a fun and interactive way to make it more interesting to children. It includes activities such as astorytelling session, a slideshow, tooth brushing demonstrations, tips on good dental habits and a simple quiz. As a part ofSL's commitment to creating awareness of good oral hygiene, every child involved in the program receives a KODOMO goody
bag with a toothbrush and toothpaste inside.
In 2022, the program was held from April to December, with 22,501 children participating. Total participants across Malaysia
since the program started in 1998 number more than 1.14 million.

A demonstration of tooth brushing technique

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Online instruction on toothbrushing techniques

Students happily receiving their
KODOMO goody bags

2 Online Oral Care Educational Program

As a countermeasure against the spread of COVID-19, SL initiated an online oral care educational program aimed at
kindergarteners aged 4 to 6 from April to November 2022. A total of 486 children took part in the fun, interactive program,which included instruction on tooth brushing techniques and oral care trivia.

Scenes from an online educational program

3 Oral Care Awareness Programs Held by the KODOMO Brand Team

From July 18 to September 30, 2022, the KODOMO Brand Team of Southern Lion’s marketing division distributed KODOMO
brand oral care products and branded goods to children aged 3 to 6 at Government Pre Schools to raise awareness about
the importance of regular toothbrushing habits from an early age. The program began with an online workshop for teachers.
After completing the workshop, teachers received KODOMO workbooks, teacher’s guides and posters as well as folders,samples and other materials provided by SL to distribute to the preschool children. Using these materials, the teachers thencarried out the five-day tooth brushing instruction program. After the program ended, reports from the schools werecollected. 15,000 children participated in the program, learning about oral care from their teachers.

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A group photo of students holding their KODOMO merchandise

4 Dental Academy Gum Health Check Program

On October 3, 2022, SL sponsored a program for expectant mothers in the KLCC area of Kuala Lumpur, during which dental
professionals from University Malaya conducted gum health checks and explained oral hygiene using Systema samples andeducational leaflets. 504 soon-to-be mothers participated in the program.

A dental professional explains oral hygiene

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5 Oral Health Day

As part of the company’s efforts to promote preventive dentistry,* SL has been conducting Oral Health Day once a year since
2018 to create awareness among internal staff of the importance of good oral hygiene and gum disease prevention. The
event was postponed in 2020 and 2021 due to the COVID-19 pandemic.
On November 9 and 10, 2022, the event was held for the first time in three years at SL’s headquarters in Johor Bahru incollaboration with the Oral Health Division of the Ministry of Health (MOH) under KP Abdul Samad. Free dental check-ups
and treatment were provided for SL Staff. 169 employees participated in the dental check-ups (up 30% compared to the lastyear the event was held). SL will continue this annual activity in an effort to increase awareness of good oral hygiene
practices among all its staff.

* Lion Group companies overseas are collaborating with dental professionals and retailers on initiatives based on the concept of preventive
dentistry. Working together with dental professionals, Lion strives to increase awareness and understanding of oral care by sharing
information on good oral care and practical tooth brushing methods. In addition, Lion promotes good oral care habits by providing productsthat suit individuals' specific oral care needs through retailers and other markets.

Dental check-ups by dentist

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6 Participation in the Malaysian Dental Therapists’ Scientific Conference (MDTSC)

The Malaysian Dental Therapists’ Scientific Conference (MDTSC) was held June 24 and 25, 2022, at the Summit Hotel Subang
USJ. This event is held every two years and SL participates as one of its major sponsors with the aim of strengthening its
relationship with the Malaysian Dental Therapists Association (MDTA) and to introduce the Systema brand. The conference isa good opportunity to increase awareness of the Lion Dental Health Program and increase collaboration with the MDTA, as it
welcomes dental professionals from all over Malaysia. A total of 550 dental therapists from across Malaysia attended thisconference.

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Cleanliness
1 Promoting Good Hygiene for Children

The spread of COVID-19 has brought the importance of hand washing to the forefront of everyone’s mind. Responding to thisshift, from April to December 2022, SL conducted the Lion Dental Health Program (see article 1 under Oral Health Care) as
well as hand washing awareness activities at kindergartens and elementary schools in Malaysia.
Also, from March to July and August to September of 2022, SL collaborated with the MOH and Bridges PR & Events Sdn. Bhd.
to hold educational events for children aged 7 to 9 in Klang Valley, Selangor. Using KireiKirei products, these events taught
children the proper steps of hand washing and encouraged voluntary hand washing habits. Approximately 5,500 children
participated, and there are plans for the events to continue in 2023.

Children learning proper hand washing techniques while watching a video

2 Lion Hygiene Program for Indigenous Children

On July 19, 2022, SL, in collaboration with the Mersing Dental Office under the MOH, conducted a hygiene habit-enhancing
activity at a school in SK Tanah Abang, Mersing.
180 indigenous children participated in interactive sessions with rhythmic tooth brushing training, tooth brushing with adental therapist, a coloring competition, a “beautiful teeth” competition and a hand washing lesson.

Teaching tooth brushing techniques with a tooth modelChildren learning proper hand washing techniques

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3 Activities to Support the Health and Hygiene of Refugee Children

SL has been involved with health and hygiene awareness programs for refugee children since 2013. The activities have been
conducted in cooperation with NGOs and the United Nations High Commissioner for Refugees (UNHCR) staff in Kuala
Lumpur and Johor Bahru. The event has been cancelled since 2020 due to COVID-19.
On October 23, 2019, SL conducted a program with a school in Kota Tinggi District, Johor, to raise awareness of cleanlinessand hygiene among Rohingya refugee students protected under the UNHCR.
In addition to the programs, employees from SL celebrated children’s birthdays with them and shared happy moments. All
the children were given goody bags with SL products for general personal hygiene. 90 students aged 7 to 16 were taught
basic hygiene and personal care, including good oral health habits and proper handwashing. About 660 children haveparticipated since the program began.

Demonstration of tooth brushing and hand washing

Learning proper hair washing

Kids receiving sponsorship items

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Environmental Conservation Activities
1 Greening Activities around SL facilities

On April 6, 2022, SL began greening its grounds and growing herbs and vegetables to promote the physical and mental
health of its employees as well as the beautification of the environment. A total of 10 employees are participating in the
project, which involves:
1. Preparing and beautifying the grounds to create garden plots
2. Planting herbs and vegetables for harvest and distribution to employees
3. Picking and packaging herbs and vegetables and offering them to employees free of charge in the cafeteria
4. Allowing employees to pick herbs for home use at any time

Employees preparing the site for garden plots

Cultivating herbs and vegetables Offering harvested produce in thecafeteria

The SL employees participating in greening activities

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2 Campaign for Sustainable Recycling

From June 15 to 22, 2022, a campaign was held in SL’s cafeteria to raise employee awareness of recycling with the aim ofachieving zero waste. Employees also brought in items they no longer use at home to turn them into gifts for those in need.
During the campaign, 200 employees visited the cafeteria, raising environmental awareness.

Donated items

Participants holding donateditems in the cafeteria

Executives receiving reports on
activities

The SL staff leading the activity

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3 Environmental Conservation Activities on SL Environmental Day

To raise employees' awareness of the need to protect the global environment, SL has declared November 27 as its very own“Environmental Day.” In 2022, however, the activity was cancelled due to COVID-19.
In 2020, three initiatives were implemented to promote the 3Rs (reduce, reuse, recycle) and raise employee’s awareness andinterest in environmental issues by having them experience the importance of growing and eating healthy foods bythemselves.

1. The collection of recyclable materials

Employees collected recyclable materials, such as books, paper, plastic and aluminum from their homes.

2. Making soap from used cooking oil

Collecting recyclable materials

Employees brought used cooking oil from home and tried their hand at reusing it to make soap.

3. Plant adoption plantations

Creating hand-made soap from used cooking oil

Plots of land were used to plant salad vegetables and herbs.
400 employees participated in this activity.

Working in the SL herb garden

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Donation Activities

To fulfill its corporate social responsibility, SL, as a hygiene product manufacturer, actively engaged in social contribution
activities, such as in-kind donations of hygiene-related products sold by the company.

Donation activities related to natural disasters

Activity 1 Provision of supplies to flood victims in cooperation with the Malaysian Red
Crescent Society
PeriodOutside collaborators
Donations
Details

December 16, 2022
Malaysian Red Crescent Society
Provided essential cleanliness and hygiene supplies during floods
Provided 2,000 flood victims and volunteers with essential cleanliness and hygiene
products in the affected areas

Items donated by SL

Activity 2 Educational activities in rural areas in collaboration with NGOs
PeriodOutside collaborators
Donations
Details

September – November 2022
Yayasan Sukarelawan Siswa (NGO)
Educated children in rural communities on tooth brushing techniques
Worked with volunteers to provide dental check-ups and tooth brushing instruction to
1,200 children between the ages of 4 and 12 in rural Sabah to spread awareness about
dental hygiene

NGO volunteers teach children how to brush their teeth
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Activity 3 Support for people affected by flooding
PeriodOutside collaborators
Donations

Details

December 2021
Malaysian Red Crescent Society
Shokubustu Active Guard Body Shower Foam
Bio Zip Detergent Powder
Fresh & White Toothpaste
KODOMO Lion Toothbrush
KODOMO Lion Toothpaste
Emeron Shampoo
Systema ToothbrushThrough the Malaysian Red Crescent Society (an NGO), SL donated products forapproximately 100–150 families affected by the flooding resulting from heavy rains in
Selangor and Johor.

Handing off hygiene products to Malaysian Red Crescent Society staff

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Donation activities related to the COVID-19 pandemic

Activity 1 Donation of hygiene products to support medical professionals and patients
PeriodOutside collaborators
Donations

Details

June 2021
Low-Risk Quarantine and Treatment Centre (PKRC), Johor Bahru
Shokubustu Active Guard Body Shower Foam
Bio Zip Detergent
Fresh & White Toothpaste
KODOMO Lion Toothbrush
KODOMO Lion Toothpaste
Emeron Shampoo
SL donated hygiene products for approximately 585 women (including pregnant
women) and children under 12 years old undergoing treatment and quarantining at the
Low-Risk Quarantine and Treatment Centre (PKRC) in Johor Bahru.

SL employees moving products to
be donated

PKRC and SL employees

Activity 2 Donations of hygiene products to support students
PeriodOutside collaborators
Donations

Details

November 2021
Sekolah Kebangsaan Kangka Tebrau School, Johor Bahru
Fresh & White Toothpaste
KODOMO Lion Toothbrush
KODOMO Lion Toothpaste
KireiKirei Hand Soap
SL donated products for approximately 600 students at Sekolah Kebangsaan Kangka
Tebrau School, which it sponsors, in Johor Bahru, to celebrate the school’s reopening
and help maintain a hygienic environment.

SL employees handing off donated products to school staff
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Activity 3 Donations of care kits to support medical professionals and patients
PeriodOutside collaborators
Donations
Details

April 2020
Ministry of Health2,000 care kit sets containing hand soap, toothpaste, toothbrushes, shampoo and liquid
laundry detergent
Donated care kits to medical professionals and COVID-19 patients at three hospitals inJohor. The kits were assembled as sets in bags for ease of distribution.
This social contribution activity was featured in the newspaper, Harian Metro (Malay) .

Activity 4 Support for families impacted by COVID-19 directly or by the indirect effects of thepandemic
PeriodOutside collaborators
Donations
Details

May 2020
Malaysian Red Crescent SocietySouthern Lion products
Donated relief supplies to 200 impacted households through the NGO the Malaysian
Red Crescent Society.

SL employees carrying donated products

Handing over donated products

Photo published in thenewspaper

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Creating Healthy Living Habits

Activities at PT. Lion Wings
Oral Health Care

Donation Activities

Oral Health Care
1 Oral Care Educational Events

PT. Lion Wings (“LW”) values the establishment of good oral care habits from early childhood and has conducted oral careeducational events in cooperation with educational facilities such as kindergartens and elementary schools in Indonesia
jointly with local dentists since 2008.
Kindergarteners from age four to five and elementary school students up to ten years old are the main targets of the event,at which the importance of oral care is taught through a video featuring the brand characters of KODOMO (LW’s oral careproduct line for children) and instruction on tooth brushing techniques offered by dentists. At the end of the event, allparticipants, including the children and their families, brush their teeth together using the correct techniques so that they
can then practice at home what they have learned through the event.
Moreover, LW visits every year the same kindergartens and elementary schools to ensure the establishment of good oral
care habits.
In 2022, the event was held at 85 educational facilities from January to May, with about 8,500 children participating.

Teaching children correct tooth brushing

Photos from the day of an event

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2 Activities for Adults to Promote and Raise Awareness of Oral Care Habits

In 2022, LW provided dental examinations and samples of its Ciptadent toothpaste in the residential areas of 10 Indonesiancities. Approximately 10,000 residents participated in the activities, which provided an opportunity to learn the importanceof creating healthy oral care habits.

Photos from the day of an event

3 Inclusive Oral Care Activities

Lion Group is advancing inclusive oral care activities aimed at providing opportunities for oral care (via products, services
and education) to people dealing with economic hardship, physical limitations or disparities in education or information.

Activity 1 Donations to an orphanage to support education on oral care and hygiene habits
PeriodLocation
Outside collaborators
Participants
Details

August 2020
Pondok Taruna Orphanage, Jakarta
GBI Jemaat Induk Senayan Church
30 people
150 packages of KODOMO Wet Wipes
150 tubes of KODOMO Toothpaste (20g)
150 bottles of KODOMO shampoo (45ml)
60 tubes of Systema toothpaste (20g)
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Activity 2 Donations to disadvantaged children supported by a church
PeriodLocation
Outside collaborators
Participants
Details

December 2020
Saint Albertus Harapan Indah Church
30 people
120 bottles of Zinc shampoo (70ml)
44 tubes of KODOMO toothpaste (45g)
44 KODOMO toothbrushes
144 Ciptadent toothbrushes
144 tubes of Ciptadent toothpaste (75g)

Commemorative photo withchildren andstaff from the orphanage

At Saint Albertus Harapan Indah
ChurchDonation Activities

As a company that manufactures and sells products used in everyday living, and to fulfill its corporate social responsibility,
LW actively engaged in such social contribution activities as donations of products sold by the company.

Donation activities related to natural disasters

Activity 1 Support for people affected by the 2021 West Sulawesi Earthquake
PeriodLocation
Details

January 2021
Mamuju Regency, West Sulawesi
Donation of Rp10,272,000 worth of LW products for approximately 500 people affectedby the magnitude 6.2 earthquake that struck West Sulawesi in 2021.

Activity 2 Support for people affected by floods
PeriodLocation
Details

February 2021
Karawang, West Java
Donation of Rp11,027,200 worth of LW products for approximately 500 people affectedby heavy rains and flooding in West Java.

Activity 3 Support for an orphanage
PeriodLocation
Details

April 2021
Depok, West Java
Donation of Rp2,680,000 worth of LW products for approximately 200 orphans.
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Activity 4 Support for people affected by floods
PeriodLocation
Details

June 2021
Lebak Regency, Banten
Donation of Rp3,544,000 worth of LW products for approximately 300 people affected byheavy rains and flooding in Banten.

Activity 5 Support for an orphanage
PeriodLocation
Details

September 2021
Kramat Jati, East Jakarta
Donation of Rp3,544,000 worth of LW products for approximately 200 orphans.

Activity 6 Support for people affected by the eruption of Mount Semeru
PeriodLocation
Outside collaborators
Details

December 2021
Semeru, East Java
CT ARSA Foundation
Donation of 10,272,000Rp worth of LW products for people affected by the eruption of
Mount Semeru in East Java (for approximately 100 children and 300 adults) through CT
ARSA Foundation, an organization that supports poor rural communities.

Children receiving LW products

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Donation activities related to the COVID-19 pandemic

Activity 1 Donation of LW products to Faculty of Dentistry, University of Indonesia
PeriodLocation
Outside collaborators
Donations

Details

April 2020
Faculty of Dentistry, University of Indonesia
21 boxes of Zinc shampoo (70ml)
20 boxes of Serasoft shampoo (70ml)
20 boxes of Emeron shampoo (70ml)
19 boxes of Ciptadent toothbrush
19 boxes of Ciptadent toothpaste (75g)
Donation of LW products to those working at the Faculty of Dentistry of the University ofIndonesia affected by COVID-19.

Activity 2 Donation of LW products to disadvantaged communities
PeriodLocation
Outside collaborators
Donations

Details

May 2020
Kodi Utara, East Nusa Tenggara
CT Arsa Foundation
21 boxes of Zinc shampoo (70ml)
7 boxes of KODOMO Wet Wipes (10 sheets)
21 boxes of MAMA Lime dishwashing detergent (230ml)
7 boxes of Ciptadent toothbrush
7 boxes of Ciptadent toothpaste (75g)
Donation of LW products to disadvantaged communities affected by COVID-19 throughCT Arsa Foundation, which supports poor rural communities.

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Creating Healthy Living Habits

Activities at Lion Corporation (Korea)
Oral Health Care

Cleanliness

Environmental Conservation

Donation Activities* Some activities have been cancelled or postponed to prevent the spread of COVID-19. The Lion Group isrevising its activities, including the use of online technologies, as it continues working to create healthy living
habits.

Oral Health Care
1 Oral Care Product Promotion in Collaboration with Baby Food Companies

From 2022 and into 2023, Lion Corporation (Korea) (“LCK”) has been running a campaign offering two-packs of KODOMO
Reliable Jelly Toothbrushes to first-time customers of baby food for children aged 0 to 2. These customers also receive
coupons they can use for future purchases of these toothbrushes. For families starting weaning, children learning to brushtheir teeth on their own with parents supervising and finishing up the job are very important habits to form. With the aim ofestablishing the habit of tooth brushing from an early age, LCK plans for 5,000 people per month-for a total of 60,000 people
over the course of the promotion-to participate in this activity.

A promotional advertisement

2 Oral Care Education for Children at Playtime Kids Café

In 2022, LCK partnered with Playtime, South Korea’s No. 1 local kids cafe, to provide 13,000 children aged 3 to 7 who visited
Playtime facilities with a KODOMO Toothbrush. This activity was aimed at reducing children’s reluctance toward toothbrushing and informing them about the importance of oral care. A KODOMO Toothbrush commercial also played inside
Playtime to increase brand recognition.

The promotion development process
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3 Oral Care Guidance at Nursery Schools, Elementary Schools and Welfare Facilities

In cooperation with Seodaemun-gu Health Center and the Department of Preventive Dentistry and Public Oral Health atYonsei University College of Dentistry, LCK has set up tooth brushing facilities that provide dental checkups and instruction
on proper oral care at educational institutions, where education on tooth brushing has been provided since 2014.
Since 2022, LCK has set up tooth brushing facilities targeted toward children aged 6 to 7 and first-year elementary school
students within Seoul’s Seodaemun District. At these facilities, dentists and dental hygienists provide ongoing oral careeducation and monitoring. Dental examinations are conducted twice a year for four years with follow-ups as needed. Inorder to ensure the children develop proper oral care habits, dental hygienists visit nursery schools, elementary schools andwelfare facilities to educate them on such habits as brushing their teeth after meals as well as on correct preventive
dentistry.
In 2022, 62 nursery schools, 18 elementary schools and 14 welfare facilities participated with approximately 6,300 students
receiving instruction on oral care, bringing the cumulative total number of students served to approximately 61,377.

An oral care lesson in progress

A participating group of students

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4 Holding the Oral Health Event of Tooth Brushing for Children

The Lion Group places emphasis on fostering children’s awareness of dental and oral health in order to help them stayhealthy for a lifetime. Aiming to teach correct oral care to elementary school students, the Lion Group has held the Oral
Health Event of Tooth Brushing for Children since 1932. Currently, the event is held annually in Asia.
LCK has held the Oral Health Event of Tooth Brushing for Children since 2009. In May 2022, 43 students - 3 fourth gradestudents from a Japanese school in Seoul and 40 fifth grade students from a Japanese school in Busan - participated in theevent. In total, 8,203 children have participated in this event since 2009.

Oral Health Event of Tooth Brushing for Children (2019)Children who participated in theevent (2019)

LCK employees who participatedin the event (2019)

5 Tooth Brushing Sets Given to Celebrate the Start of School

In April and May 2021, LCK provided sets of its Kids safe toothbrushes and toothpaste for 5,300 first-graders in elementary
school with the aim of developing proper oral care habits to maintain their health. The sets were provided through Teacher
Mall, a specialized online mall where teachers at registered schools purchase teaching supplies.

Kids safe toothbrushes andtoothpaste

Kids safe promotional pop-up on
the Teacher Mall website

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6 Lectures about Health Care for Local Residents

LCK has been contributing to the improvement of local residents’ health care by joining health care programs (promoted by
local community organizations such as public healthcare centers, cultural centers and school nurse associations) andconducting health care lectures.
The content of each lecture is tailored to its target audience. Specialists assigned by LCK give lectures on a wide range ofhealth-related topics, such as correct oral care for infants and parents, oral health management, the relationship between
oral health and systemic illness, and living habits to prevent infectious diseases.
In 2021, to prevent the spread of the COVID-19, lectures were held twice via Zoom, with approximately 250 people
participating, bringing the total number of participants since 2012 to 19,150.

Lectures on health care for local residents (2020)

7 Running the Oral Care Consultation Room Jointly with a Public Health Center

Aiming to increase local residents’ awareness of oral health and preventive dentistry, LCK and Gwangjin-gu Public HealthCenter have jointly held the Oral Care Consultation Room every Tuesday since 2012. Participants learn to conduct selfchecks of their dental and oral conditions and then receive individual professional examinations. Based on these, theyreceive personal guidance on self-care methods in accordance with their individual dental and oral needs.
A total of approximately 17,000 people, including around 1,790 people in 2019, have taken part in the Oral Care Consultation
Room. In 2022, LCK paused this activity due to COVID-19.

Personal guidance on oral care methods based on individual dental and oral conditions

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Cleanliness
1 Collaborative Promotional Campaign with Challengers, a Health Management Mobile App Targeting
Generation MZ

From September to October 2022, LCK conducted a hand washing awareness campaign coinciding with Global Handwashing
Day on October 15, 2022, using the Challengers health management mobile app marketed toward Generation MZ.*1 During
the campaign, 500 Challengers app users were given a mission to wash their hands correctly using LCK's Ai! Kekute*2
foaming hand soap and authenticate their efforts by uploading photos to Instagram to get the word out about creating
healthy living habits. By promoting activities such as this, LCK will fulfill its duty as the number one hand soap company in
Korea.
*1 Generation MZ is a combination of two generations: the “Millennials,” born from the mid-1980s to the early 1990s, and “Gen Z,” born
between the late 1990s and 2010.
*2 Ai! Kekute (literally, Oh! Clean!) is a hand soap brand marketed by LCK.

Campaign ad

2 Supporting the Korea Disease Control and Prevention Agency’s Proper Handwashing Campaign

LCK has established a relationship with the Korea Disease Control and Prevention Agency,* an agency under the Korean
Ministry of Health and Welfare that was established to protect the health of the public.
In cooperation with the Korea Disease Control and Prevention Agency’s hand washing campaign and in celebration of Global
Handwashing Day on October 15, LCK's marketing office adhered campaign stickers to five long-selling Ai! Kekute products,
which sold approximately 3.8 million units between November 2022 and March 2023 through all distribution channels.
* The COVID-19 pandemic demonstrated the need to strengthen the government's disease control capabilities. Therefore, in 2020, the Korea
Centers for Disease Control and Prevention were raised to agency status as the Korea Disease Control and Prevention Agency.

Leaflet provided by Korea Disease
Control and Provention Agency

Five Ai! Kekute products withcampaign stickers

3 Ai! Kekute and CGV Launch Collaborative Promotional Campaign

LCK is carrying out a large-scale promotional campaign for Ai! Kekute Premium Moisture in movie theaters operated by CGV,South Korea’s largest movie theater chain.
The campaign features posters and video advertisements in cinema lobbies across the country. Furthermore, theater
restrooms are set up with posters, Ai! Kekute products and stickers that provide proper hand washing instructions. In 2022,
the theaters saw 50 million visitors.
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Large-scale advertising in theaters (on screens and hanging banners, etc.)

Sticker posted in theater restrooms providing instructions for hand washing using Ai! Kekute Premium Moisture

4 Ai! Kekute and ChildFund Korea Launch Colorful Bathroom Campaign

In May 2020, LCK signed a basic agreement with the ChildFund Korea, the largest charitable foundation serving
underprivileged children in Korea, to jointly pursue the following.
Improving the hygiene of hand washing environments in facilities used by children, such as local children’s community
centers
Supporting children with disadvantaged hygiene environments by encouraging the use of hygiene products andestablishing hand washing habits, which have become even more important with the COVID-19 pandemic
Providing hygiene education by employees

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As part of this initiative, LCK has donated a portion of the sales of Ai! Kekute (100 million KRW) to the foundation. The
donated funds will be used to cover the sanitation maintenance expenses for sinks and toilets in facilities used by children.
The goal of the Colorful Bathroom Campaign is to improve the health of children and the local community as a whole byadding color to the sanitary environment by putting out Ai! Kekute and keeping sink areas clean at all times.
In 2022, the project visited and provided maintenance at a total of 13 local children’s community centers serving 500
children 4 to 16 years old in the Seoul area.

Ai! Kekute in bathrooms before and after
remodeling

Collaborated with cartoonists to promote thecampaign on Instagram

5 Ai! Kekute Limited Edition Products Created in Collaboration with People with Disabilities: Season 3
Project

LCK releases Ai! Kekute limited edition products every year. Through the Miral Welfare Foundation and Goodwill,* people
with disabilities are involved throughout the processes of product design, packaging, sales and handling donations related
to these products. Proceeds of the donated Ai! Kekute Limited Edition to the Miral Welfare Foundation are used to create
jobs for employees at Goodwill and BridgeOn Arte, an organization under the Miral Welfare Foundation that supports artists
with developmental disabilities. This initiative is aimed at contributing to the employment and income growth of people
with disabilities.

Project aims

Create social and economic value through collaborative creation with people with disabilities
Overcome subconscious prejudice against disabilities and respect the diversity of each individual
Create a positive image of the brand and the company by showing that this campaign is unique to Ai! Kekute
In April 2022, the limited-edition products (Season 3) were launched, and the initiative contributed to the creation of
employment for 45 people with disabilities.

* Goodwill is a non-profit organization that provides job training and employment services for people who are socially disadvantaged in theirsearch for work, such as people with disabilities and homeless individuals.

An artist with a developmental
disability participated in the
package design

Ai! Kekute Season 3 limited
edition149

In-store sales promotion
at Goodwill store

Lion Sustainability Website 2023

6 Hygiene Care Activities in Cooperation with Municipalities

The declining birthrate is a social issue facing South Korea, and municipalities are promoting activities to counter it. Aiming
to improve the birthrate, LCK has signed partnership agreements with municipalities and is implementing measures incooperation with the government. To support the health of newborns, LCK provides a Hygiene Care Set to families who haverecently filed birth certificates.
In 2022, LCK expanded this initiative, signing partnership agreements with 54 municipalities. In addition, LCK aims to reduce
anxiety about rising health risks in South Korea stemming from environmental pollution, such as fine particulate matter(PM2.5), and provided information on correct hand washing steps to 287,691 households, for a cumulative total of about
566,397 households, along with Ai! Kekute hand soap.

Partnership agreements with municipalities

7 Supporting Healthy Living Environments for Socially Vulnerable People

Health problems arising from poor living environments (such as sick building syndrome and issues caused by house dust)
among the elderly and other socially vulnerable people have become a social issue in South Korea. The Korean Government
has launched a support project (via the Korea Environmental Industry & Technology Institute affiliated with the Ministry ofEnvironment) to tackle this issue in cooperation with companies, hospitals and municipalities.
LCK has been a supporting member of this project since 2015, distributing daily care products such as dishwashingdetergents, laundry detergents and oral care products in areas with significant vulnerable populations.
In 2022, LCK offered support to 1,750 households, and it will continue to support this project with the aim of realizing
healthy living environments for everyone.

Partnership agreement

Donating products to the elderly

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8 Promoting an Educational Hygiene Program for Children in Cooperation with Happy Alliance*

LCK signed a partnership agreement with Happy Alliance in August 2017 to engage in social contribution activities andpromote a sustainable social contribution business model.
In December 2022, LCK provided Happy Boxes to 12,000 children suffering from food insecurity or living in economic
conditions that present hygiene difficulties. These Happy Boxes contain Kids safe toothbrushes and toothpaste marketed by
LCK and leaflets about cavity prevention, enabling children to practice proper brushing at home.
Moving forward, LCK will continue its partnership with Happy Alliance to contribute to improving children’s quality of life.
* Happy Alliance is a network of enterprises, institutions and individuals that, based on sharing and cooperation, are working to bring aboutchange by proactively addressing social issues.

Happy Alliance signing ceremony

LCK employee volunteers withboxes of products that include
LCK daily necessities for delivery
to the socially vulnerable

9 Ai! Kekute Hand Washing Class for Children

To teach children ways to protect their health, LCK has conducted educational activities on hand washing using Ai! Kekute, ahand soap marketed by LCK. Childhood is the most critical period for establishing good hygiene care habits.
In 2016, LCK conducted Ai! Kekute hand washing classes for kindergarteners aged 4 to 6 in Seoul and nearby cities. These
classes involved a bubbly foam-shaped mascot character and a facilitator that captured the children’s attention andencouraged active participation. In 2017, LCK carried out the event at 50 kindergartens, with 6,580 kindergarteners
participating.
In 2019, through monthly volunteer programs, LCK taught children at two local community centers as well as four
kindergartens attended by children of LCK employees how to wash their hands properly (target age group: 4 to 13 years old,
for a total of 300 participants). Through hand washing songs and exercises, children learn that hand washing is not boring,
but actually fun.

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10 Hand Washing Educational Activities in Cooperation with Five Libraries in Seoul

Usually located near their homes, libraries are facilities children use often. Knowing this, LCK has implemented the “LION
reading a book is Ai! Kekute” campaign in cooperation with five children’s libraries in Seoul, namely, Seoul Children’s Public
Library, Dongjak Public Library, Nowon Library, Gangnam-gu Library and Dobong Culture Information Library. This
campaign is aimed at promoting washing hands properly before and after reading books, which can carry a myriad ofinvisible bacteria. This practice is good not only for hygienic purposes; LCK’s campaign also points out that keeping books
clean contributes to the global environment as clean books last longer and longer-lasting books require fewer trees to be
chopped down to make paper.
Librarians use Value BOXes* to teach children the importance of washing hands before and after reading books. These boxes
show the spots where bacteria tend to adhere in daily life, the proper way to wash the hands and tips for keeping hands
clean after washing. Children are given Value BOX sets consisting of one box for educational purposes for use in the library
and another for use at home with quiz contents about hand washing that make hand washing fun to help establish it as ahabit.
LCK conducted this campaign from December 2018 to February 2019, and approximately 615 families participated in it.
* Each Value BOX leaflet shows the proper way to wash the hands, when to wash and the top spots where bacteria tend to adhere in daily life.
After studying it to learn about hand washing, children can fold it into a Value BOX.

“LION reading a book is Ai!
Kekute” campaign

Two versions of Value BOX

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Environmental Conservation
1 Environmental Cleanup Activities in Incheon’s Seunggicheon Area

In 2022, LCK participated in an environmental cleanup in the Seunggi Stream area hosted by Incheon Metropolitan City
Government. This event is a community cleanup activity held roughly two to three times a year. It was paused during the
COVID-19 pandemic, but has since resumed with the pandemic’s easing.
This project involves picking up trash and removing invasive plants from around the Incheon Seunggi Stream to improve thewater quality and restore the water ecosystem, contributing to the improvement of nearby residents’ quality of life. 20 LCK
employees participated in the activity conducted in collaboration with the Incheon Metropolitan City Government, theCrime Prevention Policy Bureau of the Ministry of Justice, the Incheon Naval Sector Defense Command, Incheon Transit
Corporation, the Environmental Corporation of Incheon, CJ CheilJedang and the Incheon Metropolitan City River
Revitalization Preparation Group.
LCK is committed to the theme of “One Company, One River, One Company, One Road Building Campaign and Urban
Development” and will continue to regularly participate in the West Sea Coastal Cleanup activities.

Cleanup activities in progress

2 Supporting a Forest Development Project

A small island on the Han River, Nanjido became Seoul’s official landfill in the 1970s. Due to Seoul’s rapid urbanization andeconomic growth, Nanjido was eventually covered by enormous mountains of garbage. After the landfill site closed downaround 1990, the government gave the issue serious consideration and planned the Landfill Recovery Project. The project
aims to recover the site, transforming it into “ecological parks.” One of these is Haneul Park, where citizen groups,
companies and the government are working together to promote a forest development project aimed at restoring
biodiversity. As an environmentally friendly company, LCK has been supporting this project since 2017.
LCK has developed its own forest with the name of Ai! Kekute, where employee volunteers have planted approximately 100
trees. As the young trees reach sufficient size and strength, LCK employees transplant them to the Haneul Park forest.
This activity was conducted by 86 employees and their families in 2019.

Finding places to transplant thetrees

Tree transplanting

153“Ai! Kekute Forest” project
participants, including membersof employees’ families

Lion Sustainability Website 2023

Donation Activities

To fulfill its corporate social responsibility, LCK, as a hygiene product manufacturer, actively engaged in such social
contribution activities as in-kind donations of hygiene products sold by the company.

Activity 1 November Braille Day commemoration activities
PeriodOutside collaborators
Donations
Details

Ongoing since 2022
Regular Consultative Committee for Household Goods Business Operators (LCK, LG
Household & Health Care, AK, P&G Korea, Henkel Korea), Korea Consumer Agency,
Korea Blind Union and the Community Chest of Korea
Produced Braille tags for product identification
The Regular Council of Household Goods Suppliers produced Braille tags for productidentification, and LCK participated in their distribution.
In some product categories, it can be difficult for visually impaired consumers to
distinguish between products because the container shapes are the same or similar. To
solve this problem, LCK has produced and distributed Braille tags that can be applied toa variety of products, contributing to the safety of the visually impaired.

Activity 2 CSR donation promotions for eye health
PeriodOutside collaborators
Donations
Details

March and September 2022
Miral Welfare Foundation Helen Keller Center and Korea Foundation for the Preventionof Blindness
Assistance with eye surgery costs through organizations associated with eye health
LCK provided substantial support to fulfill the company’s corporate social responsibility
and improve brand leadership by helping to pay for eye surgeries through eye healthrelated organizations.
Support for cultural activity planning and outdoor activities to promote the emotional
well-being of people with visual or auditory impairments.

Participants dig for clams

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Activity 3 Ai! Kekute Limited Edition donation event
PeriodOutside collaborators
Donations
Details

April 2022
NAVER
Donation of proceeds
Donation promotions with consumer-participation help reinforce positive perceptionsof the company and restore trust in its products.
For every Ai! Kekute Limited Edition Season 3 set purchased via NAVER live-streaming,
one set was donated to Goodwill.
In addition, the donation status was relayed in real-time to encourage more donations,with the proceeds going toward creating employment opportunities for people withdisabilities.

An advertisement for the live streaming event

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Donation activities related to the COVID-19 pandemic

Activity 1 Donation of hygiene products for blood donation
PeriodOutside collaborators
Donations
Details

January 2021
Korean Red Cross Blood Services
2,021 hygia sets
LCK created hygiene sets of three types of products marketed under its new hygiene
brand, hygia, and provided them to blood donation event participants to encourage
blood donation and help overcome the nationwide blood shortage caused by the third
wave of COVID-19 infection.

Blood donation drive poster featuring three hygia products

Activity 2 Support for the skin care of healthcare workers wearing masks for long periods oftime
PeriodOutside collaborators
Donations
Details

September 2020–February 2021
Korean Red Cross
3,500 ampoules of RAWQUESTDonated ampoules of the new cosmetics brand RAWQUEST to medical personnel at
hospitals designated for COVID-19 patients

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Other Donation Activities

Activity 1 Donated proceeds from eco-certified product sales under the “Green Hi, Carbon
Bye” campaign for World Environment Day 2021
PeriodOutside collaborators
Donations
Details

May 2021
Korea Environmental Industry & Technology Institute, Miral Welfare Foundation
Proceeds from sales of Chamgreen
LCK participated in an eco-campaign as a certified Green Company in the run-up to
World Environment Day.* As part of efforts to promote ethical consumption, LCK
advertised eco-certified Chamgreen products, selling 3,150 units.
A 2% portion of the proceeds of these sales were donated to support environmental
conservation. The remainder of the proceeds were donated to support job creation forpeople with disabilities.

Eco-certified Chamgreen products* The United Nations designates June 5 every year as World Environment Day, a day for raising awareness of environmental conservation andconducting educational activities. World Environment Day was as established in 1972 at the Stockholm Conference on the Human
Environment.

Activity 2 Emergency Aid: Donation of hygiene products to Afghan refugees
PeriodOutside collaborators
Donations
Details

September 2021 (Part 1), November 2021 (Part 2)
Korean Red Cross
10 million KRW
LCK donated hygiene products for Afghan refugees (approximately 400 individuals in 80
families) who entered the country on an emergency basis due to the crisis in
Afghanistan.

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Creating Healthy Living Habits

Activities at Lion Daily Necessities Chemicals (Qingdao) Co.,Ltd.
Oral Health Care

Cleanliness

Donation Activities* Some activities have been cancelled or postponed to prevent the spread of COVID-19. The Lion Group isrevising its activities, including the use of online technologies, as it continues working to create healthy living
habits.

Oral Health Care
1 Online Oral Care Education Activities in Collaboration with IBQ Dental Clinic

Lion Daily Necessities Chemicals (Qingdao) Co., Ltd. (“QDL”), in collaboration with IBQ Dental Clinic in Shanghai, presented“LION first class,” an online educational program on the subject of oral care, from January to December 2022. The program
was viewed by approximately 100,000 people. In the course of giving viewers a tour of the clinic, the program introduced
oral care products sold by QDL, helping spark their interest in such products and thereby creating potential customers. Also
highlighted were creative displays designed to help viewers find the right oral care products for them online. Even amid acrisis like the COVID-19 pandemic, home oral care is important to dental health. The program provided a fun experience that
helped viewers get a sense of that importance.

Inside IBQ Dental Clinic

Displays that help viewers find the right oral care products for them

2 Product Promotion at NEOBIO Parent-Child Paradise

A mouthwash promotion display was set up at NEOBIO, a major science amusement park, from January to December 2022,
welcoming 36,000 families with children aged 3 to 10. Using mouthwash is a very important habit that helps people
maintain a clean mouth. Pocket-size samples of NONIO mouthwash were placed in the park’s restrooms, giving visiting
families the opportunity to try it for themselves. In addition to Shanghai, this promotion was rolled out in Wenzhou,
Shenzhen, Chengdu, Guangzhou, Changsha, Hangzhou, Xi’an, Chongqing, Ningbo, Nanjing and Suzhou.

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A park restroom where pocket-size samples of NONIO mouthwash were offered

3 Oral Care Education Program for Expectant Mothers at MMBang Mother Care Institution

Due to fluctuating hormones during pregnancy, expectant mothers are more prone to dry mouth than other women. To
assist with oral care during this special time, bottles of NONIO Mouth Spray, an oral care product sold by QDL, were
distributed to 20,000 expectant mothers at MMBang, a care facility for soon-to-be mothers, from January to December 2022.
This promotional activity was conducted in Shanghai, Beijing, Tianjin and Guangzhou to raise awareness of the importanceof oral care among pregnant women.

An expectant mother and a healthcare worker hold up packages of NONIO Mouth Spray

4 Supporting Maternity Classes

Since 2013, maternity classes have been held annually at about 200 obstetrics and gynecology clinics located in 15 cities in
China. The maternity classes are conducted for soon-to-be mothers to support them as they prepare to give birth. The
maternity classes include periodic lectures on oral care during pregnancy, as expectant mothers tend to be especiallysusceptible to oral health issues.
QDL supports these lectures by providing oral care products and information on correct oral care to the clinics.

Lecture at the Maternity Class

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Oral care gift sets were provided to expectant mothers

5 Raising the Oral Care Awareness of Expectant Mothers

In every district of Shanghai, expectant mothers who have reached the third month of pregnancy are required to register
personal information regarding their pregnancy and birth plans at a community hygiene health care center in their towns.
QDL cooperates with the Shanghai Institute of Planned Parenthood Research, a municipal government department, topromote the importance of oral care during pregnancy. Oral care gift sets that contain leaflets titled “Oral Care Directions forSoon-to-Be Mothers” and Systema toothbrushes and toothpaste (both products sold by QDL) are distributed to expectant
mothers who come to health care centers to register. The oral care gift sets have been provided to about 300,000 expectant
mothers every year from 2014 to 2017.

Oral care gift sets given to expectant mothers (left)
Leaflet titled “Oral Care Directions for Soon-to-Be Mothers” (right)

Handing out the oral care gift set

6 Oral Health Event of Tooth Brushing for Children

The Lion Group places emphasis on fostering children’s awareness of dental and oral health in order to help them stayhealthy for a lifetime. Aiming to teach correct oral care to elementary school students, the Lion Group has held the Oral
Health Event of Tooth Brushing for Children since 1932. Currently, the event is held annually in Asia.
QDL has held the Oral Health Event of Tooth Brushing for Children since 2017. In 2021, about 30 students from Japaneseelementary schools in Shenzhen and Qingdao participated in the events held in June and November. An educational DVD
and oral care sets (including an event booklet, toothbrush, toothpaste, dental floss and mirror) were sent to theparticipating schools in advance. Using the distributed oral care sets, the students learned the causes of cavities and how toproperly use toothbrush and dental floss.

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Cleanliness
1 Hand Washing Promotion for Children at Educational Institutions

QDL is promoting the importance of hand washing among children ages three and up at various educational institutions inShanghai. With the hope of making hand washing fun for children, QDL provides KireiKirei hand soap (a product it sells) andposts the “Happy Hand Washing” slogan and stickers showing correct hand washing steps at hand washing sinks.
In 2022, this activity was conducted in 180 educational institutions, teaching more than 180,000 children correct handwashing methods.

Facilities with promotional installations for KireiKirei

2 Hand Washing Activities at Kindergartens

In Shanghai, to prevent the spread of infectious diseases, children are encouraged to wash their hands before entering thekindergarten building. As a support measure, QDL has supported hand washing activities aimed at children ages three to six
in kindergartens in Shanghai since 2016.
QDL provides KireiKirei hand soaps (a product it sells) to kindergartens for children to use at hand washing sinks. Moreover,
QDL supports the hand washing classes conducted in kindergartens. In the hand washing classes, children are taught theimportance of hand washing by their teacher, and every child receives a KireiKirei Health Diary, which contains instructions
on correct hand washing techniques and timing.
In 2021, in addition to Beijing, Guangzhou, Hangzhou, Nanjing, Shenzhen and Chengdu, QDL expanded this activity to
Suzhou, allowing the company to distribute KireiKirei Health Diaries to approximately 76,000 children at 255 kindergartens.

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Children washing their hands at kindergarten upon arrival

Children carefully washing their hands, following the steps recommended by KireiKirei Hand Soap

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3 Awareness-Raising Videos about Hand Washing in Taxis

KireiKirei brand hand soap is sold in a number of countries and regions, including China, by Lion Group companies.
From April to October 2020, amid the COVID-19 pandemic, QDL partnered with a taxi company in Shanghai to raiseawareness about hand washing and hand sanitizing, using taxis as a way to reach a large number of people. Whenpassengers boarded a taxi, screens mounted in the front seat backs played a video explaining correct hand washingtechniques and promoting KireiKirei Hand Soap. The video not only provided information about the product, but
communicated the importance of hand washing for preventing infection during a pandemic and correct hand washingtechniques. This video ran in approximately 8,000 taxis, reaching around 70 million passengers. At the end of the video, thescreens displayed a QR code linking to the major Chinese e-commerce site JD; by visiting this link, consumers were able toeasily purchase KireiKirei products.

When passengers boarded the taxi, the video played, communicating the importance of hand washing for preventing infection

4 Raising Awareness of Health and Hand Washing at Hospitals in Shanghai

QDL has posted hand washing wall-posters featuring KireiKirei illustrations in hospitals to raise awareness of health andhand washing among children and their parents and promote healthy living since 2018. These posters depict correct handwashing practices.
In 2020, these posters were put up at a new hospital in Shanghai, and approximately 250,000 families had the chance tolearn from them. Also, QDL provides KireiKirei samples so visitors can try using it and practice correct hand washingtechniques.

KireiKirei illustrations to raise awareness of the connection between health and hand washing at hospitals

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5 Setting up the LION’s Wonderful House in Big Parks in Shanghai

In Shanghai, spring and autumn are the most popular seasons to spend time outdoors, and many people gather at parks.
However, there are not many places at such venues for people to wash their hands before eating and drinking.
Since 2016, QDL has set up the Hand Washing House at key times of year in big parks in Shanghai. Users of the Hand
Washing House are taught how to wash their hands correctly, and KireiKirei Health Diaries, containing instructions oncorrect hand washing techniques and timing, are distributed to all participants.
In 2019, the Hand Washing House was updated to become LION’s Wonderful House. This limited-time event aimed to teachvisitors about the merits of QDL’s products. In addition to conventional KireiKirei hand soap, the house had exhibitionbooths promoting such oral care products and brands as the KODOMO brand. Furthermore, to offer a more comprehensive
look at house cleaning lifestyle options, QDL expanded the display area to include household products for fabric care andliving care, such as TOP brand items. Staff encouraged visitors to try the product samples and explained the products’ key
functions and features. If, after being given the chance to browse all the products, visitors chose to buy a QDL productthrough its website, they were given the chance to play the Interactive Gachapon Machine,* which gives good odds on
winning QDL products. These park events reached appropriately 70,000 park visitors.

LION’s Wonderful House in a big park

Visitors trying TOP & KODOMO productsInteractive Gachapon Machine* Interactive Gachapon Machine
How to play:
1. Visitors throw a big coin into the hole of the lower green box.
2. A pink or blue capsule containing papers will fall from the upper space automatically.
3. After opening the capsule, visitors can get a gift card for the QDL product named on the paper.
4. With this card in hand, visitors can go to the lottery desk to get the appropriate gift on the spot.

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Donation Activities

To fulfill its corporate social responsibility, QDL, as a hygiene product manufacturer, actively engaged in social contribution
activities, such as in-kind donations of hygiene products sold by the company.

Donation activities related to heavy rain

Activity Support for people affected by flooding
PeriodOutside collaborators
Donations
Details

July 2021
China Children and Teenagers’ Fund
Donations worth RMB1,419,400, including laundry detergent and hand sanitizer
In coordination with 36 companies and institutions, QDL donated its products and cash
to support children affected by flooding in Henan.

Staff and trucks carrying relief supplies

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Donation activities related to the COVID-19 pandemic

Activity Donations of KireiKirei Hand Soap in areas with high rates of COVID-19 infection
PeriodOutside collaborators

Donations
Details

April–October 2020
Hospital and Medical Institutions in Wuhan and Shanghai·Wuhan Jinyintan Hospital·Hubei 672 Hospital of integrated traditional Chinese and Western Medicine·Shanghai Jiading Maternal and Child Health Hospital·Shanghai Jiading District Women’s Federation
A total of 180 boxes of KireiKirei Hand Soap
The pandemic created supply shortages. QDL donated KireiKirei Hand Soap to a
hospital in Wuhan and medical professionals at three medical institutions in Shanghai,areas that faced major COVID-19 outbreaks. This helped medical professionals keep
their hands clean and maintain their health while treating patients.

Relief supplies stacked in awarehouse

Qingdao Lion employees loading
relief supplies onto a truck

Medical professionals receiving
the donated relief supplies

Relief supplies stacked in awarehouse and Qingdao Lion
employees

KireiKirei Hand Soap after arriving at the hospital and medical institutions

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Creating Healthy Living Habits

Activities at Lion Corporation (Hong Kong) Ltd.

* Some activities have been cancelled or postponed to prevent the spread of COVID-19. The Lion Group isrevising its activities, including the use of online technologies, as it continues working to create healthy living
habits.

Oral Health Care
1 Supporting “Love Teeth Day”

Lion Corporation (Hong Kong) Ltd. (“LCHK”) participated in “Love Teeth Day,” an annual charity fund-raising event in Hong
Kong started in 2008, organized by the Community Chest of Hong Kong, the Hong Kong Dental Association and the Hong
Kong Department of Health. LCHK has taken part for 13 consecutive years, since 2009. The aim of this campaign is toheighten public awareness of oral health and to encourage people to practice preventive oral care.
On December 2, 2022, “Love Teeth Day” was held and donations were collected from Hong Kong citizens to support oral
health services for the needy. Participants who donated more than HK$35 received the “Love Teeth Day Pack” inappreciation of their support. This is a gift set of various oral care products that promote oral care at home.
In 2022, LCHK donated 40,000 Systema toothbrushes for inclusion in the “Love Teeth Day Pack.”

Love Teeth Day 2022 poster

Love Teeth Day Pack

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2 Supporting Oral Care Education Classes at Kindergartens and Nurseries

The “Brighter Smiles for the New Generation” is a territory-wide oral health promotion program organized by the Hong Kong
Department of Health and the Hong Kong Dental Association. Oral care education classes are conducted at kindergartensand nurseries. LCHK supports this program. (From November 2015 to June 2020.)
In the oral care education classes, children aged three to six are taught how to brush their teeth correctly in a fun manner by
their classroom teacher. After the class, each child is awarded a certificate of class completion and given a Systema Kid’s
Toothbrush and KODOMO Toothpaste (oral care products of LCHK) for use at home.
99,000 children at about 770 kindergartens and nurseries participated in this program in 2020.

Children show their brightest smiles as they hold their Systema Kid’s Toothbrushes.

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Creating Healthy Living Habits

Activities at Lion Home Products (Taiwan) Co., Ltd.
Oral Health Care

Hygiene Care

Donation Activities* Some activities have been cancelled or postponed to prevent the spread of COVID-19. The Lion Group isrevising its activities, including the use of online technologies, as it continues working to create healthy living
habits.

Oral Health Care
Oral Health Class for Children

With the aim of fostering children’s awareness of dental and oral health from a young age, the Lion Group has held the Oral
Health Event of Tooth Brushing for Children since 1932. Started in Japan, the event is presently held in Asia.
As part of this event, in cooperation with the Lion Foundation for Dental Health (LDH) , Lion Home Products (Taiwan) Co.,
Ltd. (“LHPT”) conducted oral health classes at two Japanese elementary schools and three local elementary schools in June
2019.
76 children from Japanese elementary schools (33 from Kaohsiung Japanese School and 43 from Taichung Japanese
School) and 820 children from local elementary schools (120 from Taichung Wurih Elementary School, 100 from Kaohsiung
Wucyuan Elementary School and 600 from New Taipei City Jimei Elementary School), for a total of 896 students,
participated in the event. LHPT first held such classes at local elementary schools in 2018 and extended its outreach todifferent local schools in 2019. The event featured programs prepared specifically for students in lower grades (grades 1 to3) and higher grades (grades 4 to 6).*Students in lower grades were taught about the “function of teeth and replacement of the baby teeth by adult teeth” and“the source of cavities (plaque)” in a 30-minute class. They were also taught tooth brushing techniques for their specifictooth alignment using hand mirrors and toothbrushes.
For students in the higher grades, LDH explained the cause of gingivitis, gave tips for observing the gums, and then provided
individual instruction on how to brush according to specific tooth alignment for preventing gingivitis using a model set ofteeth.
Participating students found the content easy to understand and learned about the importance of teeth and tooth brushing.
* The Japanese elementary school system lasts for six years, from first grade to sixth grade.

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Photos of the oral health class for children at Japanese elementary schools

Children from Kaohsiung Japanese Elementary School
enthusiastically answering oral hygienist's (LDH) questions

Children from Taichung Japanese Elementary School
listening carefully to a lecture delivered by an LDH oral hygienist

Photos of the oral health class for children at local elementary schools

Teaching correct tooth brushing methods to children(Left: Taichung Wurih Elementary School, Center: Kaohsiung Wucyuan Elementary School,
Right: New Taipei City Jimei Elementary School)

Commemorative photo with the LION mascot, who is popular in Taiwan(Left: Taichung Wurih Elementary School, Center: Kaohsiung Wucyuan Elementary School,
Right: New Taipei City Jimei Elementary School)

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Hygiene Care
1 Educational Programs to Raise Awareness of Hand Washing Habits at Kindergartens

Hand washing has taken on an increased importance as a preventive measure against the ongoing COVID-19 pandemic.
LHPT conducted educational programs on hand washing habits at 10 kindergartens across Taiwan from April to May, 2022,with the aim of teaching children the importance of hand washing and proper hand washing methods. Classes conductedunder the program last 30 to 40 minutes and comprise the parts listed below. Approximately 600 kindergarten students,
teachers and parents participated in the programs.
1. Lesson from the teacher on hand washing hygiene
2. Singing and dancing to a special hand-washing song
3. Drawing original hand soap bottle labels and putting up posters
4. Hand washing
5. Bacteria check
We also donated KireiKirei Foaming Hand Soap to the schools for use in their hand washing areas so children could put thelessons into practice.
In the lesson on hand washing hygiene, the teachers talked about germs and viruses, how hand washing can protect yourloved ones, the correct way to wash hands and the features of KireiKirei Foaming Hand Soap.
After the lesson, the children took home their original soap bottles drawn with crayons to use with their families, helping topromote their continued use of KireiKirei Foaming Hand Soap.
At the same time, we worked to encourage parents to purchase and try the product by offering special discounts on our ecommerce site, thereby promoting sales and expanding recognition of the KireiKirei brand.
Furthermore, to publicize the event, in addition to posting on the kindergarten website and Facebook, we collaborated withnewspapers to publish articles in print and online. This increased the exposure of the event and boosted awareness of theimportance of hand washing among an even greater segment of the public.

Kindergarten event

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2 Educational Activities on Hand Washing Habits at Elementary Schools

In 2022, LHPT conducted educational activities at 48 elementary schools in Taiwan to establish hand washing habits andraise awareness of cleanliness and hygiene, with 15,369 elementary school students, teachers and parents participating. At
eight of these schools, workshops utilizing hand washing boxes were held. A hand washing box shines a black light onparticipants’ hands and those areas not properly cleaned will glow. By encouraging children to wash their hands more
carefully, these workshops help them learn proper hand washing techniques.
In conjunction with Global Handwashing Day on October 15 (established by UNICEF and other international organizations,
universities and companies working to address water and sanitation issues), the workshop at Taipei City Municipal Zhishan
Elementary School was covered by the media to generate public interest.
LHPT will continue working to help more children create good hand washing habits for healthy daily living.

Children learning about correct hand washing with the LION mascot

Donation Activities

To fulfill its corporate social responsibility, LHPT actively engaged in such social contribution activities as donations of
products sold by the company.

Donation activities related to the COVID-19 pandemic

Activity Donation of products to local residents
PeriodLocation
Outside collaborators
Donations
Details

August 2022
Southern Taiwan (Jiayi Village, Majia Township, Pingtung Prefecture; Maer Village andAnpo Village, Sandimen Township; Guangfu Village, Gao Shu Township; and Qingye
Elementary School, Sandimen Township, Pingtung Prefecture)
Taipei Medical University·150 Lion toothbrush/toothpaste sets for travel
The total (retail) value of the above products is NT$1,500
Provided knowledge of correct oral care and donated LHPT products to Southern
Taiwan residents ages 6 to 80 with the aims of reducing future needs for dental
treatment and promoting health.

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Creating Healthy Living Habits

The Oral Health Event of Tooth Brushing for Children in Japanand other countries (mainly in Asia)

In order to maintain lifelong dental and oral health, it is important to establish proper oral care habits early on. Placingemphasis on fostering elementary school students’ awareness of dental and oral health, Lion has held the Oral Health Eventof Tooth Brushing for Children since 1932, in cooperation with the Lion Foundation for Dental Health (LDH) . The event isheld every year during dental/oral health week, from June 4 to 10.
2022 marked the 79th year of this event. Instead of holding a single event via live webcast, as in recent years, a more flexible
format was adopted. Schools in Japan could participate on any day by using a 45-minute educational DVD. In 2022,
approximately 250,000 children at 4,585 schools participated.
The annual event is held in Japan as well as other countries, mainly in Asia.

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Lion Group's Social Contribution Activities

Promoting Cleanliness and Hygiene Habits

The Lion Group provides stable supplies of the hand soaps and sanitizers that are used in a variety of settings as well as
conducts educational programs in Japan and across Asia mainly to promote the prevention of infection in the home and its
transmission among family members.
The World Health Organization (WHO) has urged nations to exercise caution despite announcing the end of its declaration of
a “public health emergency of worldwide concern” regarding COVID-19.
It is crucial to establish proper hygiene practices as opportunities for face-to-face interaction grow alongside the resurgenceof socioeconomic activity. We will therefore promote both awareness and the spread of hygiene habits in collaboration withlocal governments and other organizations seeking to help form clean and hygienic habits that keep loved ones safe thoughprograms that include enjoyable and practical elements unique to the Lion Group.
Originating in Japan,KireiKirei is sold in many Asian countries and areas.
The Lion Group held the Global My Bottle Sticker Drawing Contest in the countries and areas where we operate on October
15, Global Handwashing Day.＊ The contest is aimed at promoting the development of enjoyable hand washing habits to aid
all families in leading healthier lives.
In 2022, we received over 24,250 applications from eight countries and areas. We will continue to work together as theGroup to create cleanliness and hygiene habits.
＊ Established in 2008, the International Year of Sanitation, by international institutions, universities, companies and other actors working toaddress problems related to water and sanitation

For more details, please visit our website.

KireiKirei キレイキレイsupports Global Hand Washing Day : My Bottle Sticker Drawing Contest

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Together with the Environment

Together with the Environment

Sustainability Material Issues １ Promoting Environmental Initiatives for a
Sustainable Planet

Basic Approach

We at the Lion Group believe it is our solemn responsibility to provide excellent customer experiences in the areas of health,comfort and cleanliness while protecting the global environment—the foundation of health and daily living—in accordancewith our aim of “Becoming an advanced daily healthcare company.”
We have strived to realize a sustainable planet while working to achieve the targets of Eco Vision 2020.
From 2021, we will strive to achieve LION Eco Challenge 2050, a set of long-term environmental objectives formulated in
2019. Going forward, the Group will ambitiously work toward the realization of a decarbonized, resource-circulating society.

Lion’s Commitment to the Environment

In line with the corporate slogan, “life.love.” we have written “Lion and the Environment” to encapsulate our commitment to
the environment, expressing our aim of reducing environmental burden not only through our business activities, but
through our products as well, while making every day brighter for each individual.

Lion and the Environment
Making daily life more pleasant should also mean caring for the environment.
Each everyday activity can do good things for our planet.
That’s Lion’s eco-philosophy. It’s why we make environment-friendly products that fit right into your lifestyle.
For example, we use renewable plant-derived carbon-neutral ingredients.
And we help you conserve water resources with our water-saving products while protecting the water
environment.
So, day by day, without even thinking about it, you help keep our planet healthy.
It’s an eco-lifestyle for everyday life.
That’s Lion's promise to you and the Earth.
“Every Day. For the Earth” pamphlet [Japanese] (5.01MB)

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Approach / Management / Targets and Achievements
Environmental Approach and Policy /Management

Environmental Objectives and Achievements

ESG Data and Third-Party Verification

Disclosure based on TCFD recommendations

Initiatives
Realizing a Decarbonized Society

Realizing a Resource-Circulating Society

Reducing CO2Emissions throughout Business Activities
Reducing CO2Emissions throughout Product Life Cycles

Recycling Resources
Reducing Water Use

Harmonizing with Nature (Biodiversity)

Environmental Communication

Chemical Substance Management

Environmentally Friendly Technologies in theChemicals BusinessLion’s Environmentally Friendly Products

Products with the “eco Lion” Mark [Japanese]

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Together with the Environment

Environmental Approach and Policy / Management
Approach
Environmental Policy
Environmental Management Structure

Environmental Management System
Legal ComplianceApproach

In 2019, the Lion Group established the LION Eco Challenge 2050, a set of long-term environmental objectives, with the goalof promoting business activities that help to address global problems, such as those identified in the Paris Agreement andthe Sustainable Development Goals (SDGs). In 2022, many countries, including Japan, began raising their environment- andsustainability-related targets. We have also revised our objectives as we work to achieve carbon neutrality by 2050. Aiming
to realize a decarbonized, resource-circulating society, we will promote environmentally friendly habits with consumers tocontinuously provide planet-friendly lifestyles that make more sustainable living easy.

Environmental Policy

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

Environmental Management System

The purpose of the Lion Group’s Environmental Management System is to identify, evaluate and remedy the adverse
environmental impacts of our business activities, products and services, and to improve our environmental conservation
activities on an ongoing basis.
We strive to enhance systems for environmental management and reporting with the aim of addressing environmental
issues globally. Environmental data on the Lion Group is available on our website.
Environmental Data

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Status of ISO 14001 Certification
Lion acquired ISO 14001*1certification covering its production sites in July 2001 and has maintained this certification since.
Including the plants of Group companies in and outside Japan, the Lion Group continues to push ahead with its
management systems and environmental conservation activities by obtaining ISO 14001 certifications and ensuring
operations are in compliance with ISO 14001.

ISO 14001 Certificate of Registration

Lion Corporation (Korea) (“LCK”) has received certification as a “Green Company”*2 from the government of South Korea.
The certification period is 3 years, and as a result of the examination in November 2021, LCK received recertification (period:
November 2021 to November 2024) following the previous term (period: November 2018 to November 2021).

Certification*1 ISO 14001: An international standard for environmental management*2 Green Company: A company that contributes to the improvement of the environment by significantly reducing pollutants, saving resourcesand energy, improving the environmental effect of products and establishing a green management system, as stipulated in Article 16 of theEnvironmental Technology and Industry Support Act

Lion Group ISO 14001 certifications

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Environmental Management Structure

To grow our businesses while reducing our impacts on the global environment, the Sustainability Promotion Council, which
consists of the executive corporate officers, including the President, and representatives of related divisions. The council
deliberates on policy for dealing with environmental problems and monitors the progress of related efforts.

Top Environmental Audits
Lion’s top management has been carrying out environmental audits of domestic Group production sites since 1999. Since
2009, we have formulated audit plans based on the characteristics of each plant and carried out regular audits every three
years. Top environmental audits scheduled for 2020 were postponed to the second half of 2021 due to the COVID-19
pandemic. In 2021, we carried out top environmental audits of the Lion Specialty Chemicals Co., Ltd. Ono Production Siteand the Lion Chemical Co., Ltd. Fine Chemical Production Site in a hybrid format combining in-person and online auditing.
Lion Chemical Co., Ltd.’s Oleochemical Division , Lion Specialty Chemicals Co., Ltd.’s plant in Yokkaichi and the Odawara
Plant underwent environmental audits in 2022 as the Company returned to its standard format of auditing under Director
Kobayashi, the director in charge of the Sustainability Promotion Department.

Top environmental audits (2022) Left: Lion Chemical Co., Ltd.’s Oleochemical Division . Right: Odawara Plant

Internal Environmental Audits
Trained internal environmental auditors regularly conduct internal environmental audits to check compliance with therequirements of ISO 14001. The relevant departments then take responsibility for implementing improvements regarding
any issues thus identified. In addition, the general managers of offices and plants conduct management reviews to confirm
that organizational management systems are constantly being improved to be more apt, fair and effective.

Legal Compliance

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

Proper Waste Disposal
For waste disposal, a waste disposal officer at each operating site commissions waste disposal contractors based oncontractor selection standards laid out in Lion’s waste management regulations. We also perform regular on-site
inspections of waste disposal contractors’ facilities to determine whether we should continue to commission them.

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Proper PCB Waste Storage and Disposal
Polychlorinated biphenyl (PCB) was once widely used as an insulating oil in electrical equipment for its excellent fire
resistance and electrical insulation properties, but its manufacture and import are now prohibited by law. Lion had beenstrictly storing and disposing of PCB-containing equipment in its possession in compliance with the Act on Special Measuresconcerning Promotion of Appropriate Handling of PCB Wastes until disposal could be outsourced. The disposal wascompleted in 2022.

Wastewater Management
We manage ordinary wastewater to ensure that we do not emit wastewater that violates legal or regulatory water quality
standards through such means as enhancing the stability of wastewater treatment facilities, maintaining and reinforcing
treatment control, and carrying out emergency drills. Furthermore, operating sites form agreements with individualmunicipalities and establish and enforce voluntary standards to ensure thorough wastewater management.

Proper Management of Fluorocarbons
Identifying the facilities covered by the Fluorocarbon Emissions Control Act, doing simple and periodic inspections, keeping
records, and calculating the amount of leakage are all part of Lion’s response to the legislation. No operating sites in fiscal
2022 had fluorocarbon leaks that required notification. We will keep working to prevent leaks and encourage theintroduction of non-fluorocarbon and low Global Warming Potential (GWP) equipment when updating facilities.

Responding to Legal and Regulatory Changes Related to the Environment
With regard to revisions of environmental laws and regulations, namely, the Act on the Rational Use of Energy, the Act on
Promotion of Global Warming Countermeasures, the Act on Confirmation, etc. of Released Amounts of Specific Chemical
Substances in the Environment and Promotion of Improvements to the Management Thereof, the Act on the Evaluation ofChemical Substances and Regulation of Their Manufacture, etc., the Waste Disposal and Public Cleansing Act and the Soil
Contamination Countermeasures Act and the Fluorocarbon Emissions Control Act, information is collected fromadministrative agencies and industrial associations to ensure that related departments are up to date on and fullycompliant with the latest developments.
There were no violations resulting in fines or other penalties in 2022.

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Together with the Environment

Environmental Objectives and Achievements
LION Eco Challenge 2050 Long-Term Environmental Objectives
The Lion Group’s Initiatives to Address Climate Change
Eco-First Commitment
Participation in External Organizations

LION Eco Challenge 2050 Long-Term Environmental Objectives

In 2019, the Lion Group established the LION Eco Challenge 2050, a set of long-term environmental objectives, with the goalof promoting business activities that helping to address global problems, such as those identified in the Paris Agreement
and the Sustainable Development Goals (SDGs). In 2022, many countries, including Japan, began raising their environmentand sustainability-related targets. We have also revised our objectives as we work to achieve carbon neutrality by 2050.
Aiming to realize a decarbonized, resource-circulating society, we will promote environmentally friendly habits with
consumers to continuously provide planet-friendly lifestyles that make more sustainable living easy.

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Lion Group Initiatives for 2030

1. Zero-carbon throughout business activities (Scope 1 and 2) / Shift to smart energy Reduce absolute quantity of Scope 1
and 2 CO₂ emissions by 55% in comparison with 2017 by 2030
⇒ KPI: Conversion of all electricity used in-house to renewable energy by 2030 (by 2024 in Japan)
2. Carbon neutral product lifecycles (Scope 3) / Decarbonize the value chain Reduce absolute quantity of Scope 1, 2, and 3
CO₂ emissions by 30% in comparison with 2017 by 2030
Lower petrochemical-derived plastic use rate to 70% or less by 2030
⇒ Develop and supply environmentally friendly products and services through environmentally friendly design⇒ Increase the sophistication of recycling initiatives and transform to a circular business model⇒ Promote water- and power-saving habits, and refill and waste-free habits
3. Help achieve a carbon negative society by reducing its environmental burden (Scope 4) / Create green innovations
Contribute to reducing CO₂ emissions in society by using our products (Japan)⇒ Propose environmentally friendly, fulfilling lifestyles and create new markets (sustainable fashion, smart homes anddecarbonized transportation fields) through collaboration with lifestyle-related companies

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Activities for Reducing Environmental Burden
As part of its responsibility as a producer, the Lion Group is working to achieve decarbonization and to solve plastic andwater resource issues in every stage of the product lifecycle, from the procurement of raw materials to use by consumers,
disposal and recycling. As laundry and other housework requires electricity and water, CO₂ emissions and water usage are attheir highest at the stage when consumers use our products. Going forward, we will work to reduce the environmental
burden of our products at this stage through the provision of environmentally friendly products and services and thecreation of environmentally friendly habits for consumers.

The Lion Group’s Initiatives to Address Climate Change

Climate change has become a pressing social issue in recent years and presents serious future risks to corporate
management as well as the possibility of new opportunities for corporate activities. Under the Vision2030 long-term
strategic framework, the Lion Group has made reinforcing initiatives to address the sustainability material issues one of its
management strategies and designated creating healthy living habits and promoting environmental initiatives for asustainable planet as its top priority material issues. Accordingly, we are working to mitigate risk by reducing CO₂ emissions
and other means while advancing a variety of initiatives to address the risks and opportunities presented by climate change,such as promoting the formation of environmentally friendly habits together with consumers.

Disclosure based on TCFD recommendations

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Lion’s Greenhouse Gas Reduction Targets Validated by the SBT Initiative
In March 2023, Lion has had its greenhouse gas (GHG) reduction targets for 2030
validated by the Science Based Targets (SBT) initiative*1 as being based on soundscientific grounds and aligned with the target of limiting global warming to 1.5°C. Thisvalidation follows a previous validation from SBT in 2020 as being aligned with thetarget of limiting global warming to well below 2°C.

Science Based Targets*1 The SBT initiative (SBTi) is a collaborative international initiative established in 2015 by the CDP, the United Nations Global Compact(UNGC), World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The initiative assesses and validates whether GHG
reduction targets set by companies based are properly science-based to help achieve the Paris Agreement goal of keeping the increase in
the global average temperature to 1.5°C above pre-industrial levels.

■Validated GHG Reduction Targets (Targets for 2030)
Reduce total Scope 1*2 and 2*3 GHG emissions*4 (absolute quantity) by 55% (compared with 2018 levels)
Reduce Scope 3*5 GHG emissions (absolute quantity) by 30% (compared with 2018 levels)
Increase annual electricity procurement from renewable sources to 100% (from 0% in 2018)*2 Scope 1: Direct emissions from the use of fuel by the Company.
*3 Scope 2: Indirect emissions from electricity and heat purchased and used by the Company.
*4 CO2 emissions account for 99.8% of Lion’s GHG emissions (2022 figure).
*5 Scope 3: Indirect emissions from the Company’s value chain (excluding those covered by Scope 1 and Scope 2) attributable to purchased
goods and services (category 1) or end-of-life treatment of sold products (category 12).
News release: Lion’s Greenhouse Gas Reduction Targets Validated by the SBT Initiative

Eco-First Commitment

Under the Eco-First Program, companies make a commitment to the Minister of the Environment regarding their global
warming countermeasures, efforts to reduce waste and promote recycling, and other voluntary initiatives to conserve theenvironment (Lion’s Eco-First Commitment [Japanese] ). The Minister of the Environment then certifies that suchcompanies are leaders in their industries in terms of implementing forward-looking, voluntary business activities inenvironmental areas.
In 2008, Lion became the first company in a manufacturing industry to be certified as a member of the Eco-First Program.
Since then, we have updated our Eco-First Commitment in step with the establishment of long-term environmental
objectives. The last such update was made in 2019 to reflect the LION Eco Challenge 2050 long-term environmental
objectives.

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Eco-First Promotion Council
The Eco-First Promotion Council [Japanese] is an organization established in December 2009 to reinforce coordination
among environment-related governmental bodies and EcoFirst Program member companies, increase awareness of the
program and further enhance initiatives to address environmental issues.
Since the council’s establishment, Lion has actively participated as a core member, serving as the chair company from fiscal
2012 to 2013 (Chairman: Lion President Itsuo Hama, current Lion Chairman). Lion is currently involved with council
operations as the managing company.

Participation in External Environmental Initiatives
TCFD

Eco First Companies Asso
ciation [Japanese]

CLOMA Japan Clean Ocean Material AllianceJapan Climate Initiative

Plastics Smart [Japanes e]

Keidanren Initiative
for Biodiversity

GX League [Japanese]

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Together with the Environment

Disclosure based on TCFD recommendations
The Lion Group’s Response to the TCFDIn May 2019, Lion endorsed the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), an organization established by the Financial Stability
Board (FSB). From October 2019 to January 2020, Lion took part in the Ministry of theEnvironment’s Project to Analyze Scenarios of Climate Risks and Opportunities in
Accordance with TCFD, evaluating the financial impact on its operations of climaterelated risks and opportunities. In 2022, Lion expanded the scope of its analyses toencompass businesses, communities, product categories and supply chains,developing them into full-scenario analyses. The climate-related information resulting
from these analyses is disclosed based on the TCFD framework.
Initiatives and Policy to Address the TCFD Recommendations
Core Elements of the TCFD’s Recommended
The Lion’s Group’s Initiatives
Climate Related Disclosures
Climate-related risks and opportunities are reported to the
Sustainability Promotion Council (which meets twice a year) by
its E Subcommittee and also reported, as needed, to the Senior
The organization’s governance
Executive Committee, Executive Committee and Board of
Directors.
Governance around climate-related risks andopportunities.
In addition, a working group had been established under theCouncil to responsively look for business opportunities in thechanges in external conditions brought about by climatechange.
Based on the TCFD recommendations, we conducted scenario
analyses using a 1.5°C scenario and a 4°C scenario for the
The actual and potential impacts
Consumer Products Business and some countries of theof climate-related risks andOverseas business, the operations of which are likely to be
impacted by climate change by 2030 and 2050.
Strategy
opportunities on theorganization’s businesses,
We worked to identify and evaluate short-, medium- and longterm climate-related risks for the period from the present tostrategy, and financial planning
2050 and factor them into our businesses, strategy andfinancial planning.
The Lion Group has designated certain climate-related risks
that have the potential to significantly impact the Group’s
The
processes
used
by
the
Risk
businesses as “shared risks” to be managed Group-wide. The
to identify, assess,
Planning Department and E Subcommittee
Management organizationand manage climate-related risks Corporate
coordinate such management, working together to identify,
assess and manage these risks.
The CO₂ emissions of Lion Corporation and its domestic andoverseas consolidated subsidiaries (Scopes 1, 2 and 3) are
The metrics and targets used tocurrently disclosed on Lion’s website. The LION Eco Challenge
Metrics and assess and manage relevant
2050 long-term environmental objectives include realizing aTargets
climate-related risks anddecarbonized, resource-circulating society as well as targets
opportunities
for 2030 based on the metrics of CO₂ emissions, petrochemicalderived plastic usage and water usage.

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Overview of Scenario Analyses

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

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

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

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The Lion Group’s Main Climate-Related Risks and Opportunities
ImpactRisks and Opportunities
Description
4℃
Increased factory operating costs dueto the full-scale introduction ofemissions trading and the applicationof carbon taxes by governments
Introduction of a carbon tax
Small(Scopes 1, 2 and 3)
Increased raw material procurement
costs due to carbon taxes on
emissions, including Scope 3
emissions
Increased costs due to the full-scale
Fossil fuel-derived
introduction of emissions trading and Large
the application of carbon taxes
Increased
Increased costs due to tightening of
cost ofPalm
oil-derived
palm oil regulations and increased use Smallraw
of certified oilmaterials
Plant-derived
Transition
Increased prices due to decreases inSmallcrop yields(from corn, mint, etc.)
Increased costs due to regulations on Small
Plastic-derived
plastic use
Increased
Increased costs due to a shift from ironcost of
Aluminum-derived
to aluminum as a result of regulations Small
packagingon vehicle weight, etc.
andIncreased costs due to forest fires,containers Timber
Smallforest protections or logging
resource-derived
regulations
Expansion of demand for sustainableproducts, including those that save
Expansion of markets for
Smallwater and power, due to risingsustainable products
customer awareness of ethicalconsumption
Increased operational and personnel
costs due to growing energy costs and Smallburden on workers
Increased sales of laundry-related
Increased average temperature
products due to higher temperaturesand of hygiene-related products and Medium
services due to increases in infectious
diseaseIncreased costs of dealing with
impacts on the operations of Lion or
Physical Changes in precipitation and weather
its suppliers due to increased flooding Medium
and water stress. Potential for
patterns
decreased credibility in the event thatstable supply cannot be maintained.
Decreased revenue due to internal
logistics delays and supply chaininterruptions resulting from increased
Increased severity of extreme weather
Smallseverity of extreme weather events.
eventsPotential for decreased credibility inthe event that stable supply cannot be
maintained.

1.5℃
Large*

MediumMediumSmall
MediumMedium
Small
Large
Small
Small

Small

Small

Note: Risks are shown in red, opportunities are shown in blue
* Impact if the LION Eco Challenge environmental objectives are not met and CO₂ emissions are not significantly reduced
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Summary of Scenario Analysis Results

Lion has been advancing efforts to address the scenarios used in the most recent analyses for some time but will continue
to direct management effort at further reinforcing resilience to change going forward.
Under the 4°C scenario, the increased cost of fossil fuel-derived raw materials is a major risk. Lion is already advancing
efforts to replace such raw materials with plant-based materials and reinforcing other efforts aimed at decarbonization.
Furthermore, to address rising physical risks, such as those of floods and water stress, we are advancing such efforts asreinforcing business continuity planning and supply chain data coordination. In terms of opportunities, the markets insuch areas as products related to infection prevention and laundry are expected to grow, so we are working to develop
related products and reinforce related services. Furthermore, we will continue to explore growth opportunities in thefields of inclusive oral care and infection control—areas of strength for Lion—to address the increase in the risk of the
spread of infectious disease.
Under the 1.5°C scenario, the increased cost of plastic-, aluminum- and palm oil-derived raw materials and packaging is amajor risk. Lion is already advancing initiatives to reduce such risk, including reducing the use of petroleum-derived
plastic and procuring RSPO-certified palm oil and palm kernel oil derivatives. In terms of opportunities, we expect
substantial expansion in demand for environmentally friendly products, presenting the potential for business expansion
by increasing offerings of products that meet the Lion eco-standard. Furthermore, these initiatives will help to reduce CO₂
emissions during the product use and disposal stages, which account for the majority of Lion’s Scope 3 emissions. In
addition to these efforts, as under the 4°C scenario, we are exploring other ways of securing opportunities for further
growth. These include the development of technologies suited to the growth of sustainable fashion and other lifestylechanges as well as expanding the supply of electro-conductive carbon, which will be necessary for the development ofdecarbonized transportation, including the spread of electric vehicles.
In addition, we will monitor social trends as we consider measures to address issues that currently have only a small
quantifiable financial impact but could present a large future risk to Lion (such as procuring high-quality mint).

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190＼

Lion Sustainability Website 2023

Together with the Environment

Realizing a Decarbonized Society
ApproachSince the Industrial Revolution, rising emissions of CO2 and other greenhouse gases (GHGs) have contributed to global
warming. The impact of global warming-driven climate change on people and ecosystems is expected to become
increasingly severe, coming in such forms as more frequent heavy rains, flooding and other natural disasters, dwindlingfood and water resources, extreme heat, and outbreaks of infectious disease.
The Lion Group conducts businesses that utilize natural resources, such as oil palm and pulp and paper, and therefore
recognizes global warming as major risk to its operations.
The Paris Agreement, aimed at mitigating climate change and transitioning to a decarbonized society, came into effect in2016. The agreement includes the shared global long-term targets of limiting the average global temperature increase towell below 2°C (the “well below 2°C target”) and of pursuing efforts to limit the increase to 1.5°C. In support of the targets of
the Paris Agreement, in June 2019, Lion set the long-term CO2 emissions reduction targets of a 30% reduction by 2030
compared with 2017 and net zero by 2050. In 2020, one of Lion’s targets was validated by the Science Based Targets (SBT)
initiative as being aligned with the well below 2°C target.
Furthermore, in May 2019, Lion endorsed the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD).
In May 2021, the LION Group took into consideration such social trends as the Japanese government’s increase in its 2030
greenhouse gas emission reduction target from 26% to 46% (compared to 2013). Based on this, to help realize the common
global goal of limiting the temperature increase from pre-industrial times to within 1.5°C, we raised the 2030 CO2 reduction
target under the LION Eco Challenge 2050 for business site activities from 30% to 55% (compared to 2017).
To speed up the achievement of this goal, we also decided to switch the sourcing of all of the Group’s purchased electricity
to renewable energy sources by 2030. Furthermore, to facilitate capital expenditure on decarbonization, we introduced theInternal Carbon Pricing (ICP) system, which virtually converts CO2 emissions into costs based on our own criteria, thus
securing a reference for environmental investment decisions.
Based on its Environmental Policy and the LION Eco Challenge 2050, the Lion Group strives to reduce GHG emissions in its
business activities and to contribute to decarbonization by providing environmentally friendly products and services in
addition to promoting eco-friendly habit creation together with consumers. Through such efforts, we will contribute to themitigation of climate change.
Utilization of Internal Carbon Pricing (ICP) (Lion Integrated Report p.48)
Create Environmentally Friendly Habits with Consumers (Lion Integrated Report 2022 p.27 Growth Point 3)

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Overview

The Lion group is working to reduce GHG emissions at all stages, from raw material procurement to consumer disposal. We
will continue to promote efforts toward the realization of a Decarbonized Society.
Activities Aimed at Realizing a Decarbonized Society

Initiatives
Reduce CO Emissions throughout Business
Activities

Reduce CO Emissions throughout the Life Cycleof Products

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Together with the Environment

Reduce CO Emissions throughout Business Activities

Sustainability Material Issues １ Promoting Environmental Initiatives for a
Sustainable Planet
Promotion of Energy Conservation Activities
Carbon Offsetting

Utilization of Renewable Energy

Promotion of Energy Conservation Activities

In 2021, the Lion Group raised the target of reducing CO2 emissions from its business activities from a 30% reduction(compared to 2017) to a 55% reduction by 2030 (compared with 2017). As the first part of efforts to achieve our CO2
emissions reduction target, we are implementing thoroughgoing energy-saving activities at our various plants, offices andother facilities in Japan and overseas to increase energy efficiency.
Our production divisions consume higher amounts of energy, but are aiming to reduce CO2 emissions by 1% or more perunit of production every year through energy-saving activities such as improving productivity and adopting high-efficiency
equipment while working to reduce energy loss from utilities in such forms as steam and pressurized air and by recovering
heat to save energy. In addition, our offices have set up power-saving projects as they strive to save energy.
When constructing new buildings, such as plants and employee facility buildings, we strive to implement energy-efficientfacility design to reduce energy consumption. The Lion Group moved to its new headquarters (Kuramae, Taito-ku, Tokyo) in
January 2023, and the building acquired the “S Rank” certification of the CASBEE-Smart Wellness Office system in 2021,
which certifies a building’s wellness performance and overall environmental performance. In the future, by comprehensively
understanding the energy consumption status of all plants, we will discover more ways to conserve energy and achieve
further energy savings.
Going forward, we will continue to advance measures to further reduce CO2 emissions.

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

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

193

Energy efficiency label at the
new LCCOC employee facility
building

Lion Sustainability Website 2023

Received Commendation from the Director-General of the Kanto Bureau of Economy, Trade andIndustry for Two Consecutive Years for Excellence in Energy Management
Lion received the Kanto Bureau of Economy, Trade and Industry
Director-General’s Award for Excellence in Energy Management in fiscal
2019 as an excellent business operator that has made notable
contributions to energy conservation. This award was given for Lion’s
former headquarters building, following the award given for our former
Tokyo office building in the previous year. Lion was rated highly for its
efforts to reduce energy consumption by utilizing BEMS (Building Energy
Management System) data during the relevant period (April 2014 toMarch 2019) to understand the status and ensure the proper operation ofeach piece of equipment within the building and by implementing
detailed energy management. (Relevant location: former headquarters
building)Award ceremony for fiscal 2019

Received the Osaka Prefectural Governor’s Award in the Osaka Stop Global Warming Awards forContributions to the Prevention of Global Warming
Lion previously received the Osaka Prefectural Governor’s Award,
sponsored by the Osaka Prefectural Government, in 2018 as the mostoutstanding business operator in terms of efforts to prevent global
warming.
The Osaka Plant (Sakai City) was recognized for its excellent overall
efforts to reduce greenhouse gas emissions through energy-saving
activities with the participation of all employees, reduction of energy
consumption by changing manufacturing processes and types of
production, introduction of energy-saving facilities and equipment, andimprovement of equipment operations. (Relevant locations: Osaka Plant
and Osaka Office)194

Osaka Stop Global Warming Award

Lion Sustainability Website 2023

CO2 Emissions in Business Activities (Domestic and Overseas)* Excludes carbon credit purchases. Including these, the amount is 165 thousand tons and 96%.

ESG Data

Utilizing Renewable Energy

The Lion Group is committed to implementing thorough energy-saving activities but does not expect these to be sufficient
to meet its CO2 emission reduction targets. To make up the difference, it will be necessary to utilize renewable energy bysuch means as installing facilities to generate solar power for in-house use and switching to purchasing electricity fromrenewable sources.

Introduction of Solar Power Generation System for In-House Consumption

We have already installed facilities to generate solar power for in-house use at the Hirai Office Site. In 2021, we additionallyinstalled such facilities at LCCOC. Overseas, in the same year, a new solar power generation facility was installed and began
operation in the building of the new drying tower added to Lion Corporation (Thailand) Ltd. (LCT). We intend to further
increase the amount of solar power generated and increase renewable electricity procurement.

Solar power generation facility at the Hirai Research Center

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Solar power generation facility at LCCOC

Exterior view of the new drying tower building at LCT

Switching to Renewables for Purchased Electricity

Lion has changed over its power contracts to power companies that supply 100% renewably sourced energy . As a result, alldomestic plants have been using renewable energy since January 2023 as has the new headquarters since April 2023
(partially using J-Credits ).
We began by utilizing renewable energy and green power certificates at our domestic offices, and were able to eventuallyrealize our goal of converting all our offices’ electricity consumption to that from renewable sources in May 2023. In
addition, at Lion’s overseas operating sites, we are gradually advancing the switch to renewable energy, and aim topurchase 100% renewable energy across all of Lion’s operating sites by 2030.

Carbon Offsetting

Lion Corporation (Thailand) Ltd. has purchased T-VER*(derived from solar powerX), a carbon offsetting credit, to offset theCO2 from its electricity purchases for 2022.
* T-VER is a credit system operated by a Thai public organization.

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Together with the Environment

Reduce CO2 Emissions throughout Product Lifecycles

Sustainability Material Issue １ Promoting Environmental Initiatives for a
Sustainable Planet

Lion is taking on the challenge of resolving issues related to decarbonization by focusing not only on reducing CO2
emissions at its business sites but also on reducing CO2 emissions throughout the product lifecycles from raw material
procurement to disposal by consumers, as part of its producer responsibility.
LION Eco Challenge 2050 and Targets and Indicators for 2030
Aim to reduce CO2 emissions throughout the lifecycles of its products by 30% from 2017 levels (absolute amount) by 2030
Aim to halve CO2 emissions throughout the lifecycles of its product by 2050

Greenhouse Gas Emissions throughout the Supply Chain

Lion Group recognizes that understanding greenhouse gas (GHG) emissions throughout the supply chain is important torealizing a decarbonized society. Accordingly, since 2013, we have calculated GHG emissions throughout the supply chain
based on the GHG Protocol Scope 3 standard. In fiscal 2022, our Scope 1, 2 and 3 emissions totaled 5.02 million t-CO2.
Going forward, we will continue to promote and develop products that help reduce emissions during product use, a stage
that accounts for a large portion of product lifecycles GHG emissions. By doing so, we will work to reduce GHG emissions.
GHG Emissions throughout the Supply Chain (2022)

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Scope 1 and 2 Greenhouse Gas Emissions from Domestic Operating Sites
Scope 1
Scope 2
Total
Carbon credits
purchased

2018

22
53
74

2019

0

21
50
70

2020

0

19
48
67

2021

0

21
52
74

(thousand tons)
2022
21
52
73

0

0

64
22
86

(thousand tons)
2022
56
36
92

0

16

Scope 1 and 2 Greenhouse Gas Emissions from Overseas Operating Sites
Scope 1
Scope 2
Total
Carbon credits
purchased

2018

54
45
98
0

2019

50
43
93
0

2020

54
42
96

2021

0

Included as a Supplier Engagement Leader under the CDP Supplier Engagement Rating for a FourthConsecutive Year
The Lion Group was included for a fourth consecutive year as a Supplier Engagement Leader, aselect list of the highest rated companies under the Supplier Engagement Rating (SER) of the CDP,
an international non-profit organization that provides systems for environmental information
disclosure.
The SER is based on the CDP climate change questionnaire items about governance, targets, value
chain (scope 3) emissions and supplier engagement strategies. The rating covers companies thatcomplete and return the CDP climate change questionnaire. The companies that receive thehighest ratings for their actions and strategies to reduce greenhouse gas emissions and manage
climate risk in their supply chains are selected for inclusion in the list of Supplier Engagement
Leaders. In 2022, 653 companies including Lion (131 Japanese companies) were selected as
Supplier Engagement Leaders.
CDP Supplier Engagement Rating

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Logistics Division Initiatives

Lion works to reduce CO2 emissions and energy consumption intensity through the following efforts.
Using larger transport trucks
Improving the transport loading rate
Expanding direct shipping from plants to shorten transport distances
Promoting modal shifts from trucking to transport by rail or ship
As a result of increased truck transport attributable mainly to urgent transport related to the COVID-19 pandemic, Lion’s
overall modal shift rate in 2022 declined year on year. The modal shift rate for intra-company transport was 10.5%(compared with 11.2% in 2021).
Although modal shift rates decreased, by using larger transport trucks and improving logistics efficiency regarding suchfactors as loading ratios, annual CO2 emissions from logistics came to 21,700 tons, down 0.7% year on year. Energy
consumption intensity decreased 5% compared with the previous year, for a five-year average annual increase of 0.2%,
falling short of Lion’s target average annual reduction of 1% or more. We will continue efforts in these areas going forward.

Eco Rail Mark Certification「The Eco Rail Mark system was created by the Ministry of Land, Infrastructure and Transport tocertify companies and products that use rail freight transport for a certain portion of productshipment. Because distribution processes are typically opaque to consumers, the Eco Rail Mark is
a useful means for companies to indicate that they use or their products are shipped using
environmentally friendly rail freight transport.
Lion’s Eco Rail Mark certification was renewed in 2021. The certified Lion products are listed in
the Eco Rail Mark pamphlet published by the Railway Freight Association and introduced on thewebsite of the Ministry of Land, Infrastructure, Transport and Tourism.
The following six products are certified (as of October 2021).
1. Ofuro no Look
2. KireiKirei Medicated Foaming Hand Soap
3. KireiKirei Medicated Liquid Hand Soap
4. Between toothbrush
5. TOP SUPER NANOX
6. Soflan Premium Deodorizer

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Kao and Lion Conduct Joint Two-Way Transportation
In October 2020, Lion and Kao Corporation commenced regular joint two-way transportation between their respective
operating sites. This initiative is expected to significantly reduce CO2 emissions.* At the same time, by making long-distancetransport more efficient, the initiative is helping to reduce the burden on drivers. Going forward, by expanding joint logistics
and improving labor conditions using relay transportation, we will work to improve logistics environments based on mutual
understanding and cooperation with our trading partners and logistics contractors.
* 45% reduction in CO2 emissions (total for both companies, compared to previous transportation methods)

Logistics flow of regular joint two-way transportation with Kao Corporation

News Release: Kao and Lion Begin Collaboration on Smart Logistics Initiative Taking Part in the Strategic Innovation Pr
omotion Program Being Led by the Cabinet Office [Japanese]
Related SDGs

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Building a Logistics EDI
In the field of logistics data platforms, Lion is taking a leading role in solving logistics challenges facing the household
consumer product industry. Lion collaborated with PLANET, INC., which operates a commercial logistics electronic datainterchange (EDI), a logistics information infrastructure for the industry. Furthermore, Lion carried out demonstrations of
the use of advanced shipping notices (ASNs) to digitize receipts and simplify inspections, and is rolling out the use of ASNs
sent to wholesalers for individual delivery trucks.
We are also involved in activities to improve the efficiency and standardization of business processes at logistics sites,
including the Study Group for Logistics Productivity in the Supply Chain sponsored by the Distribution Economics Instituteof Japan, the membership of which comprises industry manufacturers and the logistics businesses responsible for theirdeliveries. We are leading the establishment of an industry-wide supply chain standard model, in cooperation with othermanufacturers and logistics businesses. Through these initiatives, we aim to improve work environments, improve laborproductivity and reduce environmental burden while building sustainable, resilient supply chains.
Aiming for inspection-free logistics using ASN

Related SDGs

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Lion Sustainability Website 2023

Together with the Environment

Realizing a Resource-Circulating Society
Approach

The Lion Group will address environmental issues, such as plastic-related problems and water resource shortages, bypromoting various activities to realize a resource-circulating society. By doing so, we will contribute to the solution of social
issues.
Plastic-related problems are related to other environmental issues as well. For example, excessive plastic use increases
lifecycle CO2 emissions, contributing to global warming, and improper disposal can result in marine plastics, negatively
impacting biodiversity. Because Lion manufactures and sells plastic products, it has a significant responsibility regarding
plastic-related problems.
The Group has published the Lion Group Plastics Environmental Declaration, which lays out its policy for addressing plasticrelated problems. Going forward, based on this policy, we will set targets aimed at realizing a resource-circulating society
both in Japan and abroad and continuously work to solve related issues.
Water is a resource of utmost importance and vital for all living creatures. Concerns are rising about elevated dangers ofdrought and water treatment in Japan are as consequences of global warming.To address the shortage of water resources,
we are working to reduce water usage throughout our product lifecycles. As a corporation that provides products that are
helpful in daily lives, we believe it is our responsibility to reduce water usage not only in business activities, but by offering
water-saving products. Since 2010, we have been selling TOP NANOX (now TOP SUPER NANOX), a highly concentrated liquid
laundry detergent that washes away easily for one-rinse, residue-free washing. In addition, as of 2020, our entire lineup ofliquid laundry detergents can be used in single-rise washing. Moreover, we introduced Acron Smart Care in February 2023, aliquid detergent that eliminates the rinse stage. We will continue to strive to reduce water usage.
* White Paper on Water Cycle FY2022 published by the Headquarters for Water Cycle Policy 〔Japanese〕

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Overview

The Lion Group promotes the recycling and effective use of plastic, water and other resources at all stages from raw material
procurement to disposal by consumers. We will continue to promote initiatives to realize a resource-circulating society.
Activities for Realizing a Resource-Circulating Society

Initiatives
Recycling Resources

Reducing Water Use

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Together with the Environment

Recycling Resources

Sustainability Material Issue １ Promoting Environmental Initiatives for a
Sustainable Planet
Reducing Raw Material Usage
Reducing Waste

Measures Aimed at Realizing a Resource-Circulating Society

Reducing Raw Material Usage

The Lion Group understands that the use of raw materials is the use of resources. We therefore work to reduce our use of
raw materials by making product contents more compact, expanding our lineup of refill products and making containers
lighter.
Raw Material Usage (Domestic Household Products)

Measures Aimed at Realizing a Resource-Circulating Society—Reducing
Container and Packaging Materials—the Rs and Renewable Materials

The Lion Group is promoting a wide range of initiatives aimed at realizing a resource-circulating society. We aim to minimize
the volume of resources used in business operations, collect resources after their use, and effectively reuse or otherwise
employ those resources that retain utility in business operations.

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To reduce container and packaging materials, Lion complies with theLion eco-standard, which is designed to evaluate products over their entire life cycles
by examining each life cycle stage, from raw material procurement to distribution anddisposal. We are increasing the concentration of such products such as laundry
detergents, fabric softeners and dishwashing detergents to make their containers morecompact while using sophisticated design technology to make containers more
lightweight.
In 2021, Lion’s total container and packaging material usage was around 57,100 tons,
almost the same as the previous year.
Going forward, we will continue working to reduce container and packaging material
usage through such means as making products more compact and developing
innovative container structures.
Lion’s Container and Packaging Material Usage (Domestic Household Products)＊ Until fiscal 2021, only containers and packaging materials are taken into account; starting in fiscal 2022, some product plastics are as well.

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Plastic bottles can be refilled and reused. Film packaging for refill packs can beproduced using less material than product bottles, and because they weigh less andtake up less space after use, they also help reduce household waste.
Going forward, we will work to minimize the use of plastic materials by both reducing
and reusing.
Lion’s Use of Plastic for Packaging and Reduction Effects

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Using Recycled Plastics

Lion proactively uses recycled plastic in products and containers. Our dishwashingdetergent bottles, liquid laundry detergent bottles and toothbrush blister packs are
made with plastic recycled from disposable drink bottles and other sources.

Main Uses of Recycled Plastics
Type of plastic

Type of productProduct name

CHARMY Magica, etc.
TOP SUPER NANOXTOP SUPER NANOX,
KireiKirei hand soaps,
Pop-up sticker
Hadakara liquid body soaps
TOP Clear Liquid
Refill pouch
Antibacterial
NONIO,Systema Sonic
Assist Brush,Clinica
Blister dome packaging
Advantage,etc.
BottleOFLAN Aroma Rich
Refill pack
TOP SUPER NANOX For
Refill pack
Odors

Dishwashing detergent
Liquid laundry detergent
Liquid laundrysoaps,Polyethylene terephthalate detergent,handbody soaps(PET)

Liquid clothing detergent
Toothbrushes

Polyethylene

Parts using recycledplastic
BottleBottle (including large
sizes)

Fabric softener
Liquid laundry detergent

As of May 31, 2023

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Promoting Plastic Product, Container and Packaging Resource Recycling

Aiming to achieve a continuous cycle of plastic use in society, Lion is conducting pilot testing for the recycling of usedproducts and containers and packaging in cooperation with household product manufacturers, recyclers, retailers andmunicipalities.
Main Activities
Recyclable items
Toothbrushes

Refill packs

Bottles and refill packs

Bottles

Activity nameArea
Over 1,000 locations
nationwide

Toothbrush recycling

Main partners
TerraCycle

Joint municipal toothbrush Sumida-ku, Itabashi-ku and Taito-ku
recycling
Ito-Yokado’s Hikifune Store Kao
Welcia Pharmacy stores
Ito-Yokado
RecyCreation(parts of Tokyo andWelcia Pharmacy Store
Saitama)
Hamakyorex
Kobe City
Kobe Plastic Next: Joining 75 stores and 3 otherHousehold product
Forces to Recycle Refill
manufacturers
facilities in Kobe City
Packs
Retailers
18 recycling companies
Japan Association of Chain“Getting healthy with theStores31 locations in Yokohama Drugplanet” JACDS Circular
distribution companies
Economy Project (June–City
4 household productDecember 2022)
manufacturer
Making New Bottles from
Used Bottles Collaboration Higashiyamato City, Komae 4 household productamong consumers, local
City, Kunitachi City, Joso
manufacturers
governments, andCity
companies
As of May 31, 2023

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Promoting Circulation of Plastic Containers and Packaging Resources through Partnerships
Kao and Lion are reaching out beyond their corporate groups in an effort to recycle plastic refill containers andpackaging (film packaging), aiming to realize a resource-circulating society.
To accelerate the adoption of recycling, building basic systems for resource collection and developing recycling
technologies are indispensable. At the same time, it is necessary to change mindsets across society incooperation with stakeholders, including consumers, with regard to, for example, sorting plastic packaging
after product use.
To this end, we are conducting the following four activities.
1. Studying ways to sort and collect plastic film packaging in cooperation with consumers, government
agencies and retailers.
2. Creating recycled materials and packaging quality design with consideration for usability in a wide range of
products, ease of sorting and collection by consumers, and potential for use across companies or industries.
3. Studying ways to jointly use materials that are collected and recycled.
4. Engaging in promotional and educational activities that will foster greater understanding and cooperation
regarding recycling among consumers.
Through the above activities, we are working to improve the economic efficiency of collection and recycling as
a whole. First, we are launching collaborative RecyCreation* activities to sort and collect film packaging andraise awareness in cooperation with local residents. By doing so, we are sharing information about thetechnological hurdles to plastic film packaging recycling.
Going forward, we will advance RecyCreation activities. Furthermore, we are investigating ways to makecontainers more recyclable and developing technologies for the horizontal recycling of film packaging into new
packaging with the aim of achieving a continuous cycle of plastic use.
These RecyCreation activities received the Selection Committee Chairman’s Commendation in the fiscal 2021
Good Practices of Consumer-Oriented Management Awards.
News Release: Kao and Lion Awarded the New Selection Committee Chairman’s Commendation in the Good Practices of Consumer-Oriented Management Awards [Japanse]* “RecyCreation” denotes upcycling through which more enjoyable and improved products are developed and resulting in newvalue creation, rather than recycling materials for the purpose of reproducing the same types of materials. The concept of thisinitiative is “Throwing it away after use. We want to change this common practice.”

We have released a concept film presenting these initiatives

Youtube (Japanese)
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In-store Collection of Used Refill Packs—Recycling Field Testing
RecyCreation activities are under way at Ito-Yokado’s Hikifune Store (Sumida-ku, Tokyo) and 31 Welcia
Pharmacy stores with the aim of field testing the sorted collection of film packaging from used refill packs.
Under this initiative, a special collection box has been installed at the store to collect customers’ used refill
packaging for such products as laundry detergents and shampoos.

The process of recycling used refill packs in the RecyCreation initiative

Overview of the Field Test

PurposeTo examine processes for the sorted collection of used refill packs in collaboration with consumers andretailers.
Content
To enhance consumers’ enthusiasm for recycling through RecyCreation. Through the test, we are collecting
used refill packs for such products as detergents and shampoos at Ito-Yokado’s Hikifune Store and Welcia
Pharmacy stores, studying effective collection systems and developing new recycling technology.
Implementation period
Starting from October 30, 2020
Location of collection box for used refill packs
Ito-Yokado’s Hikifune Store (Sumida-ku, Tokyo) and Welcia Pharmacy
stores (eastern Tokyo and parts of Saitama) We will gradually expand
this initiative to more locations.
How to prepare and return a pack for collection
1 Cut along the top of the pack to open it
2 Rinse out the inside of the pack twice with water
3 Shake off excess water and let dry
4 Put in the collection box
We have released a concept film of how to wash a used refill packYouTube (Japanese)

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Demonstration of the Horizontal Recycling of Refill Packs
In 2020, Lion began partnered with Kao Corporation on a project aimed at realizing a resource-circulating
society by plastic product packs, through which a portion of its used refill packs have been collected.
On May 29 2023, the collaboration launched a recycled plastic version of the XXL refill pack for Lion’s TOP
SUPER NANOX For Odors,a highly concentrated liquid laundry detergent. The materials used to create the refill
pack consisted in part of recycled materials from used refill packs that had been collected. (Limited quantities
available.)This packaging incorporates 9% recycled materials derived from factory waste and 1% derived from recycledconsumer products.

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Recycling of Used Containers in Accordance with the Containers and Packaging Recycling
SystemBeing a designated business operating under the Containers and Packaging Recycling Act, we contributetoward the cost of recycling not only our own goods but outside consignments. For the most recent status ofoperations under this system, please visit the Japan Containers and Packaging Recycling Association website.
The Japan Containers and Packaging Recycling Association [Japanese]*Total of Lion Corporation, Lion Pet Co., Ltd. and Lion Dental Products Co., Ltd.

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About the Toothbrush Recycling Program
Program participation is very easy and free.
1 Register an account as an individual, school or other organization in advance
2 Set out collection boxes and collect used toothbrushes
3 A designated carrier will pick up the box by the second business day after a collection request is made4 The toothbrushes will be reborn as new plastic products, such as planters, instead of being sent to a landfill
or incinerator

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

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

Domestic Group company Lion Pet Co., Ltd. is currently rolling out the Love Cats Love Earth Sakura Project,through which it donates cat litter boxes and cat litter sets to support people fostering rescue cats. The cat litter
boxes are made from 10% recycled plastic from toothbrush recycling.

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Using Recycled Paper

The containers and packaging for our powder laundry detergents and other products
are made with recycled paper containing recycled pulp.

Using Plant-Based Plastics in Containers and Packaging

The containers and packaging of some Lion products are made with biomass plastic, made from such plant-based raw
materials as corn and blackstrap molasses, a byproduct produced in the process of refining sugar from sugarcane.

Main Uses of Plant-Based Plastics
Type of plastic

Parts using plant-based
plastic
NONIO
BottleHadakaraliquid body soaps Bottle
CLINICA Advantage NONIO, Tubeetc
TOP SUPER NANOX
Bright STRONG Gel
Refill packKireiKirei Medicated Hand
Conditioning Soap

Type of productProduct nameDental rinse
Polyethelene terephthalate Body soap
(PET)
Toothpaste
Polyethylene

Liquid laundry detergent
Laundry bleachHand soap

As of May 31, 2023

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Reducing Waste
Zero Emissions from Operating Sites (Domestic)
Lion’s four domestic plants all achieved zero waste emissions＊ in 2002. All of Lion’s operating sites,＊＊ including research
institutes and offices, achieved zero waste emissions in 2017.
* Our definition：The waste recycling ratio is 99% or more, excluding recycling residues** Chiba Plant, Odawara Plant, Osaka Plant, Akashi Plant, Hirai Office 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

Total Waste Generation(Domestic)

Total Waste Consigned to Final Disposal in
Landfills (Domestic)

Total Resources Recovered(Domestic)

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Waste Generation (Overseas)

Total waste generation overseas in 2021 was down year on year as a result of initiatives to promote recycling. We willcontinue to advance initiatives to reduce waste going forward.
Total Waste Generation
Total Waste Consigned to Final Disposal in(Overseas)
Landfills (Overseas)

Total Resources Recovered(Overseas)

Scope of Overseas Data

All maintenance and management information for overseas consolidated subsidiaries is published (in Japanese only) inaccordance with the Waste Disposal and Public Cleansing Act (Article 15-2-3, Paragraph 2).

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Together with the Environment

Reducing Water Use

Sustainability Material Issue １ Promoting Environmental Initiatives for a
Sustainable Planet

The Lion Group is working to reduce water use in line with the LION Eco Challenge 2050, a set of long-term environmental
objectives formulated in 2019 with the aim of realizing environmental sustainability. In 2019, Lion began calculating water
use throughout the supply chain in order to understand water use throughout product lifecycles—from raw material
procurement to production, transport, use and disposal. Total water use throughout the lifecycles of Lion’s products in 2022
was approximately 2.3 billion m3.
Breakdown of Water Use over the lifecycles of Lion Products** Scope: Lion and domestic and overseas consolidated subsidiaries, January–December 2022.

At 75.8%, the product life cycle stage that accounted for the largest portion of total water use in 2021 was use by consumers.
This is because many Lion Group products, such as laundry detergents, are used with water for washing. The Lion Group willcontinue to work with consumers to reduce water use throughout product lifecycles by providing environmentally friendly
products and services that help save water and promoting the formation of environmentally friendly habits.

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

The Lion Group continuously monitors water usage (water withdrawal) and wastewater discharge in its business activities as
it strives to alleviate environmental impact and reduce water usage through recycling. We have been implementing ongoingmeasures to reduce water used in cleaning processes. As part of these efforts, in 2016, we began operating industrial
wastewater recycling facilities at the Chiba Plant. In addition, we use limited quantities of rainwater collected from the plantroof for cooling and for watering flowerbeds.
Identification and Evaluation of Water-Stressed Regions
The Group performs water stress evaluations for all its business locations using Aqueduct, a set of tools developed andannounced by the World Resources Institute. We consider the regions in which our business locations are located to bewater-stressed if their baseline water stress (one of the indicators outlined by Aqueduct) is designated “extremely high.” The
results of the evaluation showed that, in 2020, the Group had one location in a water-stressed region, and its water intake
was 2% of the Group’s total. In 2021 and 2022, there were no locations in water-stressed regions.

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

The Chiba Plant’s Wastewater Recycling Facilities
The Lion Group manufactures and sells products that are closely tied to water usage. Moreover, Lion’s plants use a great
deal of water in manufacturing processes to clean facilities and in heating and cooling equipment. Recycling wastewater
after use can thus produce a significant water-saving effect. To this end, Lion introduced a wastewater recycling system at
the Chiba Plant—which uses the most water among Lion’s plants—in 2016 that has been in continuous use since installation.
The greatest feature of this system was the adoption of new wastewater recycling facilities (①). Thanks to these facilities, weare now able to recycle wastewater from production processes that was previously discharged into the environment.
Furthermore, we installed new wastewater treatment facilities (②) that enable greater purification of water from employee
sanitary facilities and cleaning facilities than was previously possible, better removing nitrogen, which is a source of marine
eutrophication.
In 2022, we conserved about 190,000 tons of water annually compared to 2010. That amount is equivalent to about 21% of
the total water usage of all domestic operating sites in 2022.
The Chiba Plant’s Wastewater Recycling System

The Chiba Plant was the first household product factory in Japan to recycle wastewater. In 2017, the plant received the New
Technology Encouragement Award*1 from the Japan Society on Water Environment and the Responsible Care Award*2 fromthe Japan Chemical Industry Association.
*1 In June 2017, the development of the Chiba Plant’s wastewater recycling system was recognized with the New Technology Encouragement
Award from the Japan Society on Water Environment, Japan’s largest academic society related to protecting the aquatic environment. Thisaward is given for research related to aquatic environments or to individuals or organizations that have devised innovative, promisingaquatic environment technologies from the perspective of social contribution.
The Japan Society on Water Environment New Technology Encouragement Award [Japanese]*2 In May 2017, the Chiba Plant received the 11th Responsible Care Award from the Japan Chemical Industry Association for its initiatives toprotect the aquatic environment and contribute to the local community. Since the start of its operations, the Chiba Plant has continuously
implemented activities to protect the aquatic environment.
Lion’s Responsible Care Activities

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Reducing Water Usage During Product Use

The Lion Group is working to reduce water usage throughout the lifecycles of its products. To reduce water usage during
product use—the product life cycle stage that accounts for the greatest portion of water use—we provide environmentallyfriendly products that help save water. For example, since 2020, all Lion liquid laundry detergents can be used with just one
rinse cycle.In 2023, we also developed and marketed Acron Smart Care, a zero-rinse laundry detergent.
Under LION Eco Challenge 2050, a set of long-term environmental objectives, the Group set the target of reducing water
usage 30% per unit of net sales across product lifecycles by 2030 in comparison with 2017 levels. In 2022, life cycle water
usage was reduced 7% per unit of net sales in comparison with 2017.
Going forward, we will continue to develop products that help reduce water usage during product use and promote
environmentally friendly habits as we strive to reduce the environmental impact of households.
Development of Zero-rinse Laundry Detergent Acron Smart Care(Lion Integrated Report 2023 p.48)
Water Use over the lifecycles of Lion Products

Water-Saving Products (Domestic)
TOP SUPER NANOXTOP SUPER NANOX For Odors

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

CHARMY Crysta Gel

These dishwasher detergents demonstrate high detergency even when used in quick
wash cycles, effectively removing grime from dishes and dishwasher interiors.

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

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

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Water-Saving Products (Overseas)

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

TOP SUPER NANOX
at Lion Corporation (Singapore)
Pte Ltd.

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

TOP SUPER NANOX
at Lion Corporation (Hong Kong)Ltd.

TOP SUPER NANOX
at Lion Home Products (Taiwan)Co., Ltd.

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Together with the Environment

Harmonizing with Nature (Biodiversity)
Approach

Lion has long taken the lead in addressing problems in the aquatic environment, such as stream foaming andeutrophication linked to the use of detergents, considering biodiversity at each stage from raw material procurement todisposal by consumers. To continue benefiting from the value provided by biodiversity into the future, we must work withlocal communities to protect biodiversity and utilize such value in a sustainable, non-depleting way. Furthermore, it isimportant that we contribute to the realization of a society in harmony with nature by encouraging changes in consumer
lifestyles through biodiversity-friendly products.
To this end, Lion will contribute to the development of a sustainable society through its businesses by determining which
natural resources are used in business activities and the impacts on biodiversity throughout the value chain. Based on thisinformation, Lion will implement biodiversity conservation activities that help reduce risk and expand opportunities. Also,
by having every employee participate in biodiversity conservation activities as part of our environmental education efforts,
we are spreading awareness of this important issue throughout our operating sites.

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

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

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

Lion Sustainability Website 2023

Overview

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

Initiatives
Biodiversity Conservation Initiatives

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Together with the Environment

Biodiversity Conservation Activities
Activities at Operating Sites

Environmental Impact Surveys of Surfactants MEE

Lion conducts biodiversity conservation activities at all of its operating sites. Its plants, in particular, have expansive
premises and handle a wide range of raw materials and thus have the potential to impact the nearby natural environmentand communities. We therefore work to reduce the impact caused by plant operations and, in cooperation with local NPOs
and other organizations, proactively implement biodiversity conservation activities in the watersheds where plants arelocated so that the benefits of biodiversity can be sustainably enjoyed throughout local communities.

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

Activities at Operating Sites
Basic Principles of Biodiversity Conservation Activities at Operating Sites
Based in part on the Ministry of Environment’s Guidelines for Private Sector Engagement in Biodiversity (2nd Edition), we
have defined the following four key principles for biodiversity conservation activities at operating sites.

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Below are some of the biodiversity conservation activities being implemented at Lion’s operating sites. We select activities
to pursue based on the following considerations:Improving wildlife-friendly environments in the rivers and lakes of the watersheds that are connected to our plants via
business activities or products as well as downstream coastal areas
Providing habitats for creatures that are disappearing and breeding and raising them with the aim of returning them totheir natural habitats
Replicating natural habitats lost in the nearby area on operating site grounds and maintaining them as biotopes
Cleaning up and improving business sites, conducting regular assessments of wildlife living there and using business sites
as a place for biodiversity education
Working in partnership with other stakeholders, such as local residents, external organizations and local authorities

Biodiversity Conservation Initiatives

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

Lion provides a wide variety of products that support daily living based in significant part on value derived from nature. In
addition to striving to use resources in a sustainable manner, Lion is engaged in biodiversity conservation, aiming toproactively contribute to the realization of a society in harmony with nature.

Sustainable palm oil procurement
Plants (operating sites)
Treated and purified water discharge
Waste reduction at plants
Water-saving at plants
Lion products
Lion Forest in Yamanashi
Promoting the Rs
Developing water-saving detergents
Evaluating environmental impact
Developing highly biodegradable detergents
Customers [Japanese]

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Environmental Impact Surveys of Surfactants MEE

Lion evaluates and confirms the environmental safety of its products during product development, because almost all Lion
products are discharged into rivers and streams after their use. Furthermore, Lion takes part in the Japan Soap and Deterge
nt Association’s measurement of the concentrations of four types of surfactants in four river systems near Tokyo andOsaka and evaluation of related ecosystem risk, which it has conducted four times a year since 1998, to confirm that said
surfactants are not negatively impacting the environment. The measurements to date have consistently found surfactant
concentrations below the maximum level thought to have no impact on aquatic ecosystems, indicating that there is little
environmental impact from detergents.
Furthermore, because Lion developed the plant-based surfactants MEE, it conducts its own measurement of theconcentrations of this substance in the same watersheds. By doing so, we confirm that its impact on ecosystems is extremely
small.
Evaluating and confirming safety is not a task for Lion alone. In addition to gathering and utilizing the latest technological
data from in and outside Japan, Lion is working to provide data to other users in order to enhance safety evaluation
technologies.

Supporting Young Researchers
As part of efforts to protect water resources, in 2009, Lion established the Lion Award, which is bestowed through the Japan
Society on Water Environment (JSWE). By using the award to recognize outstanding research activities, we are supporting
young researchers.
Support for Japan’s largest academic society focused on protecting the aquatic environment

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Together with the Environment

Environmental Communication
Approach

We at Lion believe it is our solemn responsibility to provide excellent customer experiences in the areas of health, comfort
and cleanliness while protecting the global environment—the foundation of health and daily living—in accordance with ouraim of “Becoming an advanced daily healthcare company.” By using various means of communication to convey ourapproach to addressing environmental issues, related initiatives and the environmentally friendly features of our products,
we promote the formation of eco-friendly living habits.
In addition, we strive to foster environmental awareness among employees through such means as education for new hires
and employees in specific job categories.

Overview

Initiatives

Lion believes that environmental communication with consumers plays an important role. In , we explained our
initiatives and fostered contact with stakeholders via both in-person events and on our website, as appropriate.

Events, Websites, and Building Relationships
with Communities and External Organizations

Environmental Communication throughActivities

Environmental Communication throughAcademic Support
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Together with the Environment

Events, Websites, and Building Relationships with
Communities and External Organizations
Events and Websites

Through participation in environmental exhibitions and other channels, Lion seeks to communicate to consumers ways they
can be more environmentally friendly both in the course of daily life and through comfortable, clean living using Lion
products.In 2022, Lion exhibited at the GOOD LIFE Fair 2022 and SDGs AICHI EXPO 2022 , introducing water-saving ideas thatcan be applied in our daily lives through Lion products and how they can also help prevent global warming. Furthermore,
we implement educational programs for the next generation to foster environmentally friendly habits.

Virtual exhibition

Our booth exhibited at EcoPro 2021 is re-enacted with 360° images. Users can learn about our various activities to realize aresource-recycling society through employee explanation and links to the website.

Virtual exhibition [Japanese]

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Building Relationships with Communities and External Organizations

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

Japan Chemical Industry Association

Responsible Care* Activities at the Chiba and Osaka Plants
As a member company of the Japan Chemical Industry Association RC Committee, Lion proactively engages in dialogue
with local communities. Each plant provides opportunities for dialogue suited to the characteristics of its local community
to promote communication with community members.

12th annual Sakai/Senboku responsible care community dialogue meeting held in February 2020

The 13th Responsible Care Sakai/Senboku Regional Dialogue was held in February 2022 via written communication in theform of booklets to curb the spread of COVID-19. Booklets were distributed with information supplied by the Osaka Plant,
which summarized the corporate activities undertaken in the Sakai and Senboku districts. The booklet was mailed toneighborhood associations, governments, NPOs, and other organizations included a survey to collect opinions. In the
future, as we continuously work toward improvement, we plan to take the survey's findings into consideration.
In addition, the 14th Responsible Care Chiba Regional Dialogue took place in February 2023 and followed the same written
communication in the form of booklets.
Booklets were distributed and from the initial stages of the planning process, the Chiba Plant participated and cooperated
in the discussions. Neighborhood associations, municipalities, NPOs, and others received a booklet highlighting the SDGs
initiatives of businesses in the Chiba area, and feedback was gathered via the included survey. The gathered feedback will
be implemented in our future endeavors.

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Moreover, in May 2017, the Chiba Plant received the 11th Responsible Care Award from the Japan Chemical Industry
Association for its initiatives to protect the aquatic environment and contribute to the local community. Since the start of its
operations, the Chiba Plant has continuously implemented activities to protect the aquatic environment from water-relatedrisks. The plant’s efforts to purify industrial water for various applications, recycle wastewater used in industrial processes
and manage wastewater according to standards stricter than those required by law have led to reductions in water usage
and discharge volumes and the conservation of water quality. The award also praised the plant for providing education
about the importance of water through initiatives with local children and plant tours.

11th Responsible Care Award Plaquefrom the Japan Chemical Industry Association* Responsible care refers to voluntary management activities performed by companies that handle chemical substances, encompassing theassurance of protections for the environment, safety and health throughout all processes of product manufacturing, distribution, use, final
consumption, disposal and recycling as well as the disclosure of the results of such activities and dialogue with society.

Support for Environmental Organizations
Lion supports the following organizations.

Sea Turtle Association ofJapan [Japanese]

Japan Society on Water
Environment

OISCA

Lion is a member of the following organization.

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

30by30 Alliance for Biodi
versity[Japanese]

Keidanren Initiative for
Biodiversity
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Together with the Environment

Environmental Communication through Activities
Lion Forest in Yamanashi

The Lion Forest in Yamanashi is a project launched in October 2006 for the maintenance of an approximately 65-hectare areaof forest owned by Yamanashi City in Mizukuchi, Yamanashi City. Yamanashi Prefecture’s first Company Forest Promotion
Project , it is aimed at fostering environmental awareness among Lion employees by providing experience in themaintenance of forests, a water resource. Lion provides funding for forest maintenance, and employees engage in forest
maintenance as volunteers or as part of training for new hires while building relationships with members of the local
community.

The Lion Forest in Yamanashi—
Where our commitment to protecting water resources
takes concrete form

We have been implementing Lion Forest in Yamanashi activities since 2006 to foster awareness of the aquatic environment
among participating employees through the maintenance of forests, a water resource. Water is not only necessary for lifeand living, but crucial to maintaining business activities. In particular, Lion’s businesses—with such mainstay products as
toothpastes, detergents and hand soaps—are deeply related to water through the act of washing. As such, we particularly
focus efforts on conserving the aquatic environment through business and social contribution activities.
Through activities spanning more than a decade, the Lion Forest in Yamanashi has achieved progress in forest maintenance,
including concrete results, such as promoting tree growth and CO2 absorption. The greatest achievements, however, havebeen the personal connections and communication built with local residents, including local elementary school students
and ladies’ groups, and with forestry staff as well as the enhancement of employees’ environmental awareness that comesfrom getting their hands dirty. These activities allow participants to feel first-hand the importance of working with andconnecting with people and protecting the global environment.
In line with its aim of being an environmentally advanced company, Lion aims to enhance the environmental awareness ofeach employee through Lion Forest in Yamanashi activities while further focusing efforts on environmentally friendly
business activities.

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Toothbrush Recycling Program

The Toothbrush Recycling Program is a program to collect used toothbrushes, which are commonly just thrown away as
non-recyclable garbage, and recycle them into planters and other new plastic products. Lion launched the program, the firstof its kind in Asia, in 2015, in cooperation with TerraCycle Japan.

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

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

Get Involved

Sign up to participate through this website [Japanese] . The website offers further details about the program and points
awarded for toothbrushes collected.

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Lion Chura Action

Lion Chura Action is a project to support the eco-activities of children nurturing the future of Okinawa, aimed at protecting
and developing the rich ecosystems of the region and achieving lasting harmony with nature.

Lion Chura Action [Japanese]

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Together with the Environment

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

To motivate and support young researchers working in areas related to the aquatic environment, in 2009 Lion created the
JSWE-LION Best Student Poster Presentation Award (the “Lion Award”), bestowed through the Japan Society on Water
Environment (JSWE) in recognition of outstanding research activities.*1
In 2021, 17 students were chosen to receive the Lion Award, one of whom received the Grand Prize, by the 56th Annual
Conference of the JSWE.*2*1 The award is bestowed in recognition of outstanding poster presentations at the JSWE’s annual conference.
Eligible persons: Undergraduate university students, technical school students, junior college students.
Selection method: Based on the votes of regular and corporate JSWE members, winning presentations are selected by the Awards
Committee of the Board of Directors.
*2 The 56th Annual Conference of the Japan Society on Water Environment was held online.

The Lion Award (Japan Society on Water Environment)

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Together with the Environment

Management of Chemical Substances
ApproachChemical Substance Management Policy
Overview
Chemical Substance Management Initiatives at Each Product Life Cycle Stage

ApproachChemical substances are indispensable for people to lead comfortable and fulfilling lives. Failure to properly manage
chemical substances, however, can result in accidents that put human health and ecosystems at enormous risk. In addition
to compliance with related laws and regulations, the Lion Group strives to ensure the strict management of chemical
substances at all stages from product development to use and disposal in accordance with its own independent standards.

Chemical Substance Management Policy

Based on the spirit of the Lion Group Charter for Corporate Behavior, the Group has established the Chemical Substance Ma
nagement Policy. This policy was formulated in light of international trends in chemical substance management and isaligned with the Strategic Approach to International Chemicals Management (SAICM). The policy stipulates that we will
strive to implement sound management of chemical substances throughout their life cycles, minimize significant adverse
impacts on the environment and human health, and promote communication.

Overview

Group-Wide Management of Chemical Substances

Management System for Information on Chemical Substances

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Chemical Substance Management Initiatives at Each Product Life Cycle Stage
1. Product Development

Selection of Chemical Substances for Use in Products

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

2. Chemical Substance Registration and Notifications

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

Based on the Act on the Regulation of Manufacture and Evaluation of Chemical Substances, Lion notifies the relevant
authorities of the use classifications and volumes of all the general chemical substances and priority assessment chemical
substances it manufactures or imports (with exceptions based on the provisions of the Act, such as for substances
manufactured or imported in quantities of less than one ton per year).As needed, our chemicals departments also notify therelevant authorities of the use classifications and volumes of small-volume and low-volume new chemical substances it
manufactures or imports. We will continue to gather information about the volumes and uses of manufactured or imported
chemical substances and file proper notifications.

EU: Complying with REACH

Our chemicals departments register chemical substances as required under the EU’s REACH*1 chemical substancemanagement system.
*1 REACH:Registration, Evaluation, Authorisation and Restriction of Chemicals

South Korea: Complying with K-REACH

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

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3. Production
Going forward, calls for the improvement and reinforcement of chemical substance management will grow. Accordingly, we
aim to continue as well as to step up the filing of proper notifications and management of emissions volumes as required
under volatile organic compound (VOC) regulations, the Water Pollution Prevention Act and the Act on Confirmation, etc. of
Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management
Thereof.

Management of Total PRTR-Designated Substance Emissions

The PRTR (Pollutant Release and Transfer Register) system is a scheme for collecting, compiling, and publishing data on the
degree to which a wide variety of potentially harmful chemical substances are released into the environment from whatsources, or are transported off of production sites through waste disposal.
The Company’s emissions of PRTR-designated substances have remained at approximately 2 tons since 2019.
2022 PRTR-Designated Substance Emissions Data for Production Sites in Japan
PRTR-Designated Substance Emissions (Domestic)
PRTR-Designated Substance Emissions

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Air Quality-Conscious Production Activities

Lion implements initiatives to reduce emissions of chemical substances that cause air pollution, including nitrogen oxides(NOX), sulfur oxides (SOX), particulate matter and VOCs. The Air Pollution Control Law designates emissions standards bytype of substance and by type and scale of emitting facility, and many regional governmental bodies have establishedadditional regulations by ordinance. In addition to complying with such laws and ordinances, each plant has formed strict
agreements with local municipalities and established strict voluntary standards, in accordance with which we strive toprevent pollution. Furthermore, we are working to reduce emissions by such means as improving the efficiency of
production processes and utilizing environmentally friendly equipment, such as nitrogen and sulfur scrubbers.
Emissions of Nitrogen Oxides (NOX), Sulfur Oxides (SOX) and Particulate Matter

VOC Emissions

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Water Quality-Conscious Production Activities

A maximum limit on COD*1 of 160mg/L (and a daily average of 120 mg/L) has been set by law as a uniform standard within
environmental standards related to water pollution per the Water Pollution Prevention Act and Sewerage Act. Lion
meticulously complies with these regulations in its business activities. Furthermore, Lion aims for even stricter wastewater
quality management, and some of our operating sites have formed agreements with local governments to maintain a COD
limit stricter than the uniform standard. By stabilizing the operations of the wastewater treatment facility, performing
regular maintenance and improving treatment methods, we are working to further reduce COD in wastewater emissions.
COD in Business Activities*1 COD
Chemical oxygen demand. An indicator of water contamination. Indicates the amount of oxygen that will be consumed in the oxidizationand decomposition of the organic matter content of the water.

Utilizing SDSs

Lion prepares safety data sheets (SDSs)*2 on its chemical products and provides them to its customers. We also receive SDSs
on all the raw materials we use from our suppliers. These SDSs are listed in a database to be used effectively.
*2 SDSs
Safety data sheets. Documents providing information about the environmental impact of, safety precautions regarding and the appropriate
handling of chemical products, aimed at preventing accidents caused by chemical substances.

4. Transportation

Provision of Safety Information during Transportation

In case of an accident during the transportation of raw materials or intermediate products, Lion provides information tocarriers about emergency response by distributing and attaching yellow cards and container yellow cards to shipments** Yellow cards and container yellow cards
Yellow-colored emergency contact cards providing information about the properties of and emergency response methods regarding
chemical substances in case of leaks of other issues during transportation. Yellow cards are for carriers to keep with them duringtransportation, while container yellow cards are attached to the containers in which chemical substances are stored. Both are preparedbased on voluntary industry standards determined by chemical companies.

5. Use and Disposal

Environmental Impact Surveys

After being used, the surfactants in detergents and other products are discharged into the environment. Lion takes part in
the Japan Soap and Detergent Association’s environmental monitoring and risk assessment of four types of surfactants inrivers near Tokyo and Osaka, which it conducts four times a year. Furthermore, Lion conducts its own monitoring of theconcentrations of the surfactants MEE* in the same watersheds, because this surfactant was developed by Lion. By doing so,
we confirm that it has little impact on ecosystems.
Environmental Impact Surveys of Surfactants MEE* MEE
Methyl ester ethoxylate
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Together with the Environment

Environmentally Friendly Technologies in the Chemicals
Business
Products Made with Sustainable Resources

Lion uses natural plant-derived oils, such as palm oil and coconut oil, as raw materials in its products with an eye to making
effective use of renewable resources.

Products That Contribute to Energy Saving

In the automotive field, Lion offers electro-conductive plastic, an alternative to metal materials that helps improverecyclability and reduce weight. Lion also provides electro-conductive carbon, which is used in batteries in the growing fieldof electric vehicles.

Products That Help Prevent Pollution

Lion does not use chlorofluorocarbons or organic solvents to clean metal components, instead using water-based industrial
cleaners to help reduce emissions of volatile organic compounds (VOCs).
Environmentally Friendly Products
Lion Specialty Chemicals Co., Ltd.

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Lion’s Environmentally Friendly Products
About Lion’s Environmentally Friendly Products
The Lion Eco-Standard
Lion’s Environmentally Friendly Products—Water Saving

The “eco Lion” Mark

About Lion’s Environmentally Friendly Products

Lion considers products that have cleared the proprietary Lion eco-standard to be environmentally friendly. The Lion Group
provides products that create effortless ways for consumers to be more environmentally friendly just by living comfortably
and promotes the formation of eco-friendly living habits by engaging in interactive communication with consumers.

The Lion Eco-Standard

Lion has created the Lion eco-standard based on life cycle assessment (LCA), in which the environmental burden created bya product is quantitively assessed at every stage from raw material procurement to disposal. Products that meet at least one
evaluation standard in each evaluation category can bear the “eco Lion” mark. In 2021, 82% of Lion’s household product*sales were from environmentally friendly products that meet the Lion eco-standard.
Products with the “eco Lion” Mark [Japanese]

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

76%

2019

77%

2020

80%

2021

82%

2022

81%

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

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Lion Eco-Standard Evaluation Categories and Standards
Life cycle stage

Evaluation category①Raw material
procurement

Use of plant-based materials
Use of sustainable raw materials②Material
procurement

Use of recycled materials
Use of plant-based materials③Manufacturing

Energy saving
Water saving
Chemical substance use reduction
Waste reduction④Logistics

Making products moreconcentrated and compact⑤Use

Energy saving during use
Reduction of greenhouse gas
emissions during use
Water saving during use⑥Disposal

Packaging reduction
Refill packs

Evaluation standards
At least 50% of the raw materials of product contents(organic ingredients) is plant-based
Of the plant-based materials used, at least 50% arebiodiversity-friendly
At least 10% of the materials used are recycled
Cardboard used is at least 94% recycled paper or
certified pulp from forest thinning
At least 20% of resins used are plant-based
A reduction of at least 20% in greenhouse gas emissions
at the manufacturing stage compared with the baseline
product*
A reduction of at least 20% in water use at the
manufacturing stage compared with the baseline
product*
A reduction of at least 20% in use of chemical substances
other than raw materials at the manufacturing stage
compared with the baseline product*
A reduction of at least 20% in waste generated at the
manufacturing stage compared with the baseline
product*
An increase of at least 20% in product content
concentration or packaging compactness compared withbaseline product*
A reduction of at least 20% in energy consumed byproduct use compared with baseline product*
A reduction of at least 20% in greenhouse gas emissions
after product use compared with baseline product*
A reduction of at least 20% in water use during productuse compared with baseline product*
A reduction of at least 15% in packaging materials usedin bottles compared with baseline product*
A reduction of at least 50% in packaging materials usedin refill packs compared with corresponding productbottles* Baseline product: Products released in 2017, the baseline year for the LION Eco Challenge 2050.

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The “eco Lion” MarkThe “eco Lion” mark symbolizes Lion’s environmental activities and incorporates Lion’senvironmental slogan, “Every Day. For the Earth” which concisely expresses Lion’scommitment to the environment in line with the corporate slogan, “life. love.” To help
customers choose environmentally friendly products, we use this mark on productsthat meet the proprietary Lion eco-standard. The factors that make each productenvironmentally friendly are printed within the mark.

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

Other Examples of Products with the “eco Lion” MarkTOP SUPER NANOXCHARMY Magica

KireiKirei Medicated Foaming Hand Soap refill packEnvironmentally Friendly Products
TOP SUPER NANOX
MagicaOfuro no LOOKLOOK Plus Bath Antimold Fogger
Soft-in-1 Shampoo

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Basis for Water Savings Calculations (Lion data)

TOP SUPER NANOX laundry detergent
Washing 3 kg of clothing in a top-loading washing machine (a major manufacturer’s 2019 model with 10 kg capacity), theamount of water saved is 15.7 l per load, or 7,035 l per year (at 8.6 loads per week)
Magica dishwashing detergent
Washing 20 items per wash, the amount of water saved is 3 l per wash, or 2,210 l per year (at two washes per day)
Ofuro no LOOK bath cleaner
Compared with previous detergents, the amount of water saved is approximately 3.2 l per cleaning of the bath, or 1,100 l per
year (365 days’ worth)
LOOK Plus Bath Antimold Fogger mold-preventing fungicide
Assuming cleaning off mold once takes 24 l of water, the amount of water saved is 144 l per year (assuming one moldremoval cleaning every two months)
Soft in1 two-in-one conditioning shampoo
The amount of water saved is 5.7 l per wash compared with using shampoo and conditioner separately, or 2,081 l per year
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Ensuring Product Safety and Reliability

Ensuring Product Safety and Reliability

Sustainability Material Issues １０ Pursuing Customer Satisfaction and
Trust

Basic Approach

In order to provide products that will satisfy customers, Lion carries out quality assurance activities at all stages from thevery beginning of the product development process to consumption by customers.
Specifically, by identifying the key requirements at each stage of corporate activities— ①product planning, ②productdevelopment, ③production, ④sales and ⑤customer support—we are constantly pursuing customer satisfaction.
During product planning, valuable customer opinions are analyzed to identify specific needs. At the product development
stage, product quality is verified with respect to seven metrics, including function and performance, and consideration is
given to making labeling easy to read and accessible. During production, quality is thoroughly managed within eachprocess, and products that have passed inspection are shipped in identifiable lots, aiding in effective after-sales
management. A variety of information is sent to wholesalers and retailers, including product descriptions and samples.

Overview

Product Development Incorporating Customer Opinions

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Developing Safe and High-quality Products* Access the Research & Development page for more information.

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Initiatives
Approach to Quality Assurance, Safety andReliability

Initiatives to Respond to Our Customers

Reinforcing the Provision of Information to
Customers

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Ensuring Product Safety and Reliability

Approach to Quality Assurance, Safety and Reliability
Approach
Quality PolicyGroup-wide Reliability Assurance System
Approach to Quality Assurance
Approach to Safety and Reliability
Approach to Responsible Product Representations
Participation in Pharmaceutical Product Safety Initiatives
Animal Testing Policy

Approach

Lion’s mission is to earn the confidence and satisfaction of customers by providing excellent goods and services that make adifference in everyday lives by redesigning habits.

Quality Policy

Based on our Quality Policy, we create high-quality products that meet customer needs.

Group-wide Reliability Assurance System

In 2018, we established the Reliability Assurance Department to reinforce quality assurance based on a Product Management System covering the entire supply chain.
To implement quality assurance activities on a Company-wide basis, we have established the CS/PL Committee,* comprising
representatives of the Product Planning Division, Production Division, R&D Division, Consumer Service Center andheadquarters staff divisions. The Reliability Assurance Department serves as the secretariat for this committee. The CS/PL
Committee provides overall management of quality assurance activities, monitoring Group-wide efforts and responses toissues in the areas of legal compliance, setting voluntary standards and targets, and developing superior products from theperspective of reliability assurance. Lion manufactures and sells products ranging from everyday sundries topharmaceuticals, so its quality assurance system is designed in line with the respective standards for each product category.
Furthermore, Lion maintains a system for swiftly taking the necessary measures to address any serious problems that may
arise with its products. These measures include responding to individuals harmed or affected, disclosing relevant
information to government authorities and customers, issuing product recalls and taking steps to prevent recurrences.

Reliability Assurance System* CS/PL Committee: A committee focused on customer satisfaction (CS) and product liability (PL)248

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Approach to Quality Assurance
Product Management System
Based on its Quality Policy, Lion has established a Product Management System, comprising regulations stipulating work
processes at each stage of product development and quality assurance practices, in order to steadily and rationally develop
excellent goods and services that make a difference in everyday lives by redesigning habits.
This system is compliant with ISO 9001, the international standard for quality management systems. It defines the flow andmechanisms of quality assurance processes at each step of product development (strategy, planning, development,
production, sales, post-launch improvements and discontinuation. Through the system, we put these processes into
practice. Lion’s headquarters, Sapporo office, Sendai office, Nagoya office, Osaka office, Fukuoka office, research centers(Hirai Research Center and Odawara Research Center) and plants (Chiba Plant, Odawara Plant, Osaka Plant and Akashi
Plant) have acquired the ISO 9001 certification.

Managing Chemical Substances in Products
Since January 2018, Lion has been rolling out a Management System for Information on Chemical Substances at its
purchasing departments and research and development sites, including those of domestic affiliated companies, to reinforce
the proper use of chemical substances. We use this system for the management of raw materials and the chemical
substances contained in products.
The system comprises a database of raw materials and product formulation data, a database of regulatory data, andproduct formula development support functions. The adoption of the system has reinforced our framework for ensuring
legal compliance regarding chemical substances used in products during product development across all our businessfields. In addition, the system’s accumulated data allows employees to instantly search through the chemical substances
contained in products that have been released. This has helped enhance data management, secure traceability andreinforce our ability to ensure compliance.
In addition, as a member of the Joint Article Management Promotion-consortium (JAMP), we ensure that our chemicals
departments provide customers with information on the chemical substances contained in products using JAMP’s
chemSHERPA common format.*1 We also provide information on REACH SVHCs.*2*1 chemSHERPA: A common scheme for the transfer across a supply chain of information about chemical substances contained in products.
*2 SVHC (substances of very high concern): Substances that are candidates for inclusion in REACH Annex XIV as substances subject toauthorization. “Authorization” here refers to the step indicated in the name REACH, which stands for Registration, Evaluation, Authorisation
and Restriction of Chemicals.

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Management System for Information on Chemical Substances Diagram

Quality Audits

Lion’s auditing officers and staff periodically carry out quality audits of Lion and its contractors, providing guidance on
improvement as needed. Locations are chosen from among all the operations of Lion and its contractors that are subject tothese audits, and the selection of locations to undergo on-site surveys is informed by the timing and results of previous
surveys.

Reinforcing the Quality Management Network among Overseas Group Companies

The Lion Group is expanding operations across Asia in line with its mission of providing excellent goods and services thatmake a difference in everyday lives by redesigning habits. In recent years, the volume of intercompany import and export
business between overseas Group companies has been expanding. At the same time, there is a growing trend toward tighter
regulations internationally, increasing the importance of greater coordination among quality management staff in eachcountry.
In light of these changes, starting in 2018, we held the first annual Asia QA* Meeting, bringing together import, export andquality management staff from overseas Group companies. In 2022, the meeting was once again held remotely (a practicebegun in 2020), with discussions focusing mainly on the status of operations and issues on the ground as well as thecreation of a system for coordination going forward, with the aim of reinforcing the Group-wide quality assurance system.
Going forward, we will continue to implement initiatives like this, striving to provide better products and services tocustomers in all the countries where we do business.
* QA: Quality assurance

The Asia QA Meeting (2018)250

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Approach to Safety and Reliability

To ensure that customers can use Lion products with confidence, we evaluate the safety of raw materials and ingredients aswell as of final products during use.

Safety of Raw Materials and Ingredients
Before using a raw material, we first review existing data and information to determine its physical characteristics and if it
has any hazardous properties (hazard assessment) as well as whether we will be able to safely use it in the product being
developed (risk assessment). With the wide-ranging customers that use our products in mind, and with reference to safety
reports from international organizations and standards in and outside Japan, we determine whether or not the material issuitable for use in the product.
Furthermore, in addition to health-related considerations, we similarly examine the material’s impact on the environment
after its use by consumers in line with the latest scientific appraisals. Based on these comprehensive considerations,substances deemed to require caution are carefully documented and managed.
When existing data is insufficient to reach a determination, we perform safety tests using officially designated and otherobjective methods of evaluation. Through such testing, we determine the limits within which the raw material can be usedsafely, taking into account the way the product will be used. Finally, for raw materials deemed suitable for use, we establish
standards based on their applications (such as use in pharmaceuticals, food products, quasi-drugs, cosmetics or sundries).
Raw materials that meet these standards are used in product manufacturing.
As with the raw materials of the product contents, we use only materials that meet appropriate standards for productpackaging and containers.
Even after products are launched, we continue to analyze research data on the raw materials and ingredients used toconfirm that there are no issues with their continued use.
In some cases, small amounts of impurities arising from raw materials or manufacturing processes end up in products. Evenif such impurities present no health concern, Lion implements quality management at every stage, including raw materialpurchasing and production, to reduce impurities as much as is feasible. One example of such efforts is Lion’s response to a
notice published by the Japanese government in 2012 about organic pigments that could have been unintentionallycontaminated with polychlorinated biphenyls (PCBs). Upon the notice’s publication, Lion moved quickly to confirm that
there were no safety issues with its products. Since then, in accordance with the government’s guidance, Lion haspurchased and used such raw materials produced using designated best available technologies (BATs). Through efforts likethese, we ensure that any impurities in our products are maintained at low levels that are safe for customers and theenvironment.
Fragrance Policy

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Safety of Products During Use
Giving due consideration to the various ways products may be used as well as product use by socially vulnerable customers,
we perform safety evaluations based on an approach of avoiding risks at the product design stage.
To this end, we use a checklist to determine whether the product design ensures safety in both “normal use” and “mistakenuse” cases. For “irregular use” cases, we assess whether risk reduction is possible and whether the risk is tolerable, and asnecessary clearly label the product with an explicit safety warning.

Scope of Safety Assurance

In addition, the quality verification meeting, which encompasses representatives of related departments, performs
assessments based on customer use scenarios in order to prevent harm related to product use and to prevent the omissionof items that should be checked for safety.
If there is trouble with a product, we have an internal system in place, ready to promptly issue product recalls or otherwise
respond as needed.

Centralized Management of Data on Bodily Issues Experienced by Consumers
Businesses must swiftly collect and centrally manage information from customers about the bodily issues they experienceand quickly respond as appropriate.
Information on bodily issues from customers who have used Lion products is collected and centrally managed by theConsumer Service Center. We have in place a framework for quickly and appropriately responding to such information,
including sharing the information received with multiple specialized departments and reporting it to top management.
Going forward, we will continue to educate staff involved in implementing responses about the importance of centralized
data management and to collect and manage such information.

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Approach to Responsible Product Representations
Basic Policy
In accordance with the Lion Group Charter for Corporate Behavior and Behavioral Guidelines, Lion complies with thePharmaceuticals and Medical Devices Act, Act against Unjustifiable Premiums and Misleading Representations, Health
Promotion Act and other related laws and regulations. Furthermore, Lion strives to consider customer perspectives in orderto make accurate and reasonable product representations (such as labels and advertising) that will not lead tomisunderstandings or negative customer experiences.
To improve the quality of representations about all the products it sells (including food and pharmaceutical products), Lionhas clearly defined its basic approach to product representation and established a representation drafting manual,comprising guidelines for preparing precise, appropriate product representations at each step of product development
under its Product Management System. These guidelines apply to all product packaging and presentation as well as thewording and expressions used in instructions, pamphlets, sales handbooks, advertisements and other representations(including those for samples).
In line with the guidelines for product representations, representations are subject to stringent checks by specialized staff
as well as external experts (attorneys, etc.), as needed. Through this system of thorough management, we advance the useof representations that are clear and easily recognizable to customers.
Lion’s specialized representation checking staff strive to improve their expert abilities to ensure that they can makedecisions and offer advice about representation quality that accurately reflect the latest legal interpretations, governmental
tendencies and changes in society. To this end, they participate in lectures offered by governmental bodies and externalseminars and, as needed, consult with external experts and governmental authorities.

Product Representations in the OTC Drug* Business

The information displayed on pharmaceutical product labels is subject to the stipulations of the Pharmaceuticals andMedical Devices Act (statutory labeling). The laws and regulations regarding fairness and appropriateness in pharmaceuticalproduct advertising include the Pharmaceuticals and Medical Devices Act and the Standards for Proper Advertisement ofPharmaceuticals, etc., while industry self-regulations include the Japan Federation of Self-Medication Industries’ Guidelines
for the Proper Advertising of Over-the- Counter Medicines.
Pharmaceutical products serve to protect users’ lives and health. Advertisements for pharmaceutical products must
therefore serve not only as marketing tools, but as information sources that encourage customers to use products correctly.
Such advertisements must not encourage improper use, abuse or overuse due to insufficient caution.
Lion’s departments in charge of creating and checking product representations share pharmaceutical product information
templates for statutory labeling and an advertising check sheet based on the Standards for Fair Advertising Practices
concerning Pharmaceutical Products, etc., for advertisements. By ensuring that representations are created and managed
based on a common understanding of the regulations stipulated in the Pharmaceuticals and Medical Devices Act, we strive
to efficiently and accurately advance proper representations.
The Japan Federation of Self-Medication Industries has established an advertising screening committee, which evaluates
pharmaceutical product advertisements after their publication. Comprising third-party and over-the-counter (OTC) drug
manufacturer representatives, the committee works to ensure proper expressions in pharmaceutical product advertisingand enhance confidence in such advertising. Lion participates as a corporate member, contributing to efforts to ensure
proper OTC drug advertising.
* OTC drugs: Pharmaceutical products that can be purchased at a pharmacy or drug store without a prescription. (Source: Japan SelfMedication Industry)
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Product Representations in the Food Product Business
The information displayed on food product labels is subject to the stipulations of the Food Labeling Act and thegovernment’s Food Labeling Standards (statutory labeling). In addition, laws and regulations regarding fairness andappropriateness in the health food products*1 that Lion offers include the Act against Unjustifiable Premiums andMisleading Representations and the Health Promotion Act, while regulations related to fair competition for such products
include the Code of Fair Competition Regarding the Labeling of Food for Specified Health Uses and its enforcement
regulations, and industry self-regulations include voluntary standards for the proper advertising of foods with function
claims.*2
Food products have three basic functions. The first and most important is nutrition (the primary function), the second is thesensory and enjoyment function (the secondary function) and the third is contributing to biological regulation to help
maintain or improve health (the tertiary function). The food products that Lion sells are health food products that provide
this tertiary function. While these products are thought to provide a health effect, it is important to ensure that they areproperly marketed to avoid such misunderstandings as their being confused with pharmaceutical products or their effects
being exaggerated.
Lion uses food product information templates for statutory labeling and an advertising check sheet based on related laws
and regulations and voluntary industry rules for advertising. Furthermore, to ensure the provision of appropriate
information to customers, we include a check by external experts (attorneys, etc.) as a third-party perspective during thefood product advertising checking process.
The Japan Health and Nutrition Food Association, an industry organization, maintains a foods with function claims
advertisement committee and foods with function claims advertisement screening committee, with the aim of enhancing
the appropriateness of foods with function claims advertisements. The foods with function claims advertisement screening
committee, which comprises third-party and manufacturer representatives, screens advertisements after their publication.
Lion is a member of the foods with function claims advertisement committee, contributing to efforts to ensure appropriate
representations of foods with function claims. Furthermore, Lion participates as a member of the operating committee andadvertising study committee of the Foods for Specified Health Uses*3 Fair Trade Council, contributing to the prevention of
inappropriate representations and exaggerated advertisements for foods for specified health uses as well as ensuring faircompetition between businesses in the industry.
*1 Health Food Products
The term “health food product” generally refers to any product that is claimed to be beneficial to health. In Japan, health food productsthat are labeled as having certain functions based on standards of safety and effectiveness established by the national government areclassified as foods with health claims. There are three types of foods with health claims: foods with function claims, foods for specified
health uses, and foods with nutrient function claims.
*2 Foods with function claims are food products that display claims of functions for which, prior to sale, manufacturers must submit
scientifically based information on safety and functionality to the Director-General of the Consumer Affairs Agency. The manufacturers
themselves are responsible for ensuring the accuracy of such information.
*3 Foods for specified health uses
Foods for specified health uses are food products for which permission to display claims of health functions has been granted by the
Director-General of the Consumer Affairs Agency based on evaluations by the agency of the product’s safety and usefulness in maintaining
or improving health.

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Admonishment from the Consumer Affairs Agency Regarding Product Representations

Lion received an admonishment from the Consumer Affairs Agency regarding an advertisement for its product Tomato Su
Seikatsu Tomato Su Inryo that ran from September 15 to November 27, 2015 in the Nikkei Shimbun on the grounds that said
advertisement could be misunderstood by general consumers.
Lion takes this admonishment seriously. We have further reinforced advertisement submission management and aresteadily advancing measures to prevent recurrences of such issues.

Initiatives to Ensure Proper Use

Lion’s food products, particularly its processed food products in tablet form, are easy to consume and therefore present thepotential risk of excessive intake. By such means as displaying recommended intake amounts in large print on the front of
packages, Lion strives to provide clear labeling so that consumers can use its health food products appropriately.

Allergen LabelingLion requires its raw ingredient manufacturers and suppliers to provide information about their use of the seven ingredientsthat under the Food Labeling Standards are required to be listed on food product labels as allergens, as well as the 21
ingredients recommended for such labeling. In particular, we carry out tests as appropriate to ensure appropriate labelingregarding functional substances (used as ingredients in foods with function claims) and substances with specified uses
(used in foods for specified health uses).
Seven raw ingredients required to be listed as allergens: Eggs, milk, wheat, buckwheat, peanuts, shrimp and crab 21 raw
ingredients recommended to be listed as allergens: Apples, oranges, soy, sesame, etc.
Lion shares information about revisions to allergy labeling regulations and other such developments internally, mainly
through a food safety team.

Raising Awareness of Balanced Dietary Habits

Exercise, rest and a balanced diet are all important to maintaining and improving health. Japan’s Food Labeling Standards
require the packaging of foods with function claims, foods for specified health uses and foods with nutrient function
claims*4 to display text reminding users of the fundamental importance of dietary balance based on different food groups.
All of Lion’s food products, including its general health food products, carry this text to enhance awareness of healthy
dietary habits.
*4 Foods with nutrient function claims
Foods with nutrient function claims are food products that display claims of nutrient functions established by the government, backed by
the manufacturer’s self-certification that said items contain certain amounts of nutrients that are believed to affect the body based on
scientific evidence (vitamins, etc.).

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Labeling in the Languages of the Places Where Products Are SoldTo ensure that customers can accurately understand the features of our products, our product labels, including usage
instructions and ingredient lists, are presented in the official languages of the places where they are sold.

KireiKirei Hand Soap labels

Thai

KoreanChineseEmployee Education and Training

To ensure thorough compliance with laws and regulations related to product representations (the Pharmaceuticals andMedical Devices Act, Act against Unjustifiable Premiums and Misleading Representations, Health Promotion Act, etc.), Lion
provides e-learning for all employees and lectures for employees in related divisions as part of its legal education initiatives.

OTC Drugs

Twice a year, Lion educates employees involved in the planning and sale of pharmaceutical and related products on productsafety. This education, based on the Ministerial Ordinance on Good Vigilance Practice for Drugs, Quasi-Drugs, Cosmetics,
and Medical Devices (the GVP Ordinance), teaches employees about the handling and correct use of safety information. Lion
uses specified procedures for education about product representations to promote proper promotional activities. The
education also covers related laws and regulations and appropriate product representations.

Health Food Products

Twice a year, Lion educates employees involved in the food product business on product representation regulations,
including those of the Health Promotion Act and Act against Unjustifiable Premiums and Misleading Representations.
Through such efforts we strive to ensure thorough legal compliance.

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Participation in Pharmaceutical Product Safety Initiatives
Pharmaceutical Product Safety Activities
In Japan, under the Pharmaceuticals and Medical Devices Act, businesses must obtain a marketing license to manufactureand sell pharmaceutical products and quasi-drugs. Per this law, businesses must conduct appropriate management andsupervision by establishing and properly operating systems of quality assurance and post-marketing safety control for suchproducts and appointing a general marketing director, quality assurance director and safety control director.
As a company that manufactures and sells pharmaceutical products, quasi-drugs, cosmetics and medical devices, Lioncomplies with such legal requirements and operates an appropriate marketing framework. Lion has created a manual forcompliance with the GVP Ordinance for use in safety control. Safety control is carried out in accordance with this manualand managed by the safety control director. Furthermore, the safety control director manages the safety control divisions,and the general marketing director provides oversight to ensure proper operations and conducts post-marketing safetycontrol. The safety control divisions operate according to internal manuals, including implementing post-marketing safetymeasures for the products Lion sells, collecting and evaluating safety data about pharmaceutical and other products, and,as needed, implementing safety measures.
Twice a year, the safety control divisions provide education and training to divisions that implement safety control to better
promote the proper use of pharmaceutical and other products.

Participation in Industry Groups
To further enhance the safety of the pharmaceutical products it sells, Lion has been a member of the Japan Self-Medication
Industry, an organization of OTC drug manufacturers, since 1978. A representative from Lion serves as a vice chair of saidorganization. The Japan Self-Medication Industry works to provide information about the correct use of OTC drugs andexamines all kinds of issues related to OTC drugs, for example, researching how to make drug package inserts easier to readand understand.
Lion’s safety control director regularly takes part in the organization’s committee meetings to gather the latest information
about pharmaceutical product safety for use in safety control.
In addition, to increase the safety of pharmaceutical products, Lion has been involved in creating shared guidelines for
preparing product instructions and warnings in multiple languages. These guidelines help companies meet the needs of
non-Japanese speakers by offering product inserts in English, Chinese and Korean.
In addition to the Japan Self-Medication Industry, in the area of pharmaceutical products, Lion is a member of thePharmaceutical Manufacturers’ Association of Tokyo, and in the areas of quasi-drugs and cosmetics, Lion participates in theactivities of the Japan Dentifrice Manufacturers’ Association (JDMA) and the Japan Cosmetic Industry Association. Throughsuch participation, Lion suggests research initiatives and measures related to regulations and conducts educational
programs for customers about correct product use with the aims of promoting the manufacturing and quality control ofpharmaceutical and other products as well as post-marketing safety management and correct product use.

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Animal Testing Policy

The Lion Group adheres strictly to the international principles of the 3Rs for animal testing (Replacement, Reduction,
Refinement) and supports the philosophy of animal welfare.
We proactively work to thoroughly ensure the safety and enhance the functionality of our wide range of products andservices to better serve our customers. In developing cosmetics (including medicated cosmetics), we do not use animal
testing apart from exceptional circumstances in which it is required to ensure safety or satisfy legal requirements. Similarly,
in developing other products, we employ alternative methods as long as the accuracy and replicability of the scientific data
used as the basis for evaluating products are not negatively affected. When no alternative methods are available and wemust use animal testing, we strive to do so properly and in line with the principles of the 3Rs and the laws of relevant
countries.
Lion Corporation has long focused efforts on related research through participation in the Long-range Research Initiative of
the Japan Chemical Industry Association and the Japanese Society for Alternatives to Animal Experiments. We will continue
actively developing alternatives to animal testing and advancing business activities that contribute to both the health of ourcustomers and animal welfare.

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Ensuring Product Safety and Reliability

Initiatives to Respond to Our Customers

Sustainability Material Issue 10 Pursuing Customer Satisfaction and TrustApproach

So that we may leverage inquiries received from customers to develop new products and improve our products andservices, such inquiries are registered in a database operating under a strict personal information management system andshared across the Company through an information sharing system that excludes personal information.
Items that are considered impactful to customer satisfaction and product use, and insights gleaned from contact withcustomers are reported daily to top management- and development-related departments in the form of the VOC*1 Daily
Letter. Through such efforts, Lion works to improve customer support quality by gaining an understanding of the customer’s
perspective and by quickly considering and responding through improvement measures. In 2022, we sent out 240 VOC Daily
Letters.
Customer feedback comes from a wide range of sources, including not only telephone calls and emails, but also SNSs*2 andthe like. An internal dedicated organization (The Consumer Service Center) interprets and analyzes such this feedback andproactively disseminates information gleaned from it to the relevant departments.
*1 VOC: Voice of Customers*2 SNS: Social networking services (Twitter, Instagram, etc.)

Overview

More information about how our customer feedback is put to concrete use is available here [Japanese]

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Customer-Oriented Management Declaration

In the course of developing and providing products and services, Lion places the utmost priority on customer satisfaction.
At the same time, by implementing environmental conservation activities and further enhancing the corporate governancesystem, we aim to ensure the high level of trustworthiness that stakeholders expect. Currently, government agencies,
consumer groups and business associations are working together to promote customer-oriented management initiatives atcompanies. In January 2017, Lion voluntarily declared that it would proactively work toward customer-oriented
management, and we report progress on this front on our website and to the Consumer Affairs Agency. Lion’s voluntarydeclaration of customer-oriented management was revised to reflect the corporate philosophy introduced in 2021, andpublished on its website in March 2022.
More information about Lion’s customer-oriented management declaration is available here [Japanese]

Received an Award in the Good Practices of Consumer-Oriented Management Awards for the Second
Consecutive Year
Lion received the Minister of State’s Award in the Good Practices of Consumer-Oriented Management Awards in 2020, and in
2021, won the Selection Committee Chairman’s Award together with Kao Corporation. This award recognizes companies
that have made a consumer-oriented management declaration and implemented outstanding initiatives based on suchdeclarations.
Spurred on by this award, Lion will continue advancing consumer-oriented management and contribute to the realization ofa sustainable society.

News Release: Lion Receives the Minister of State’s Award in the Good Practices of Consumer-Oriented Management Aw
ards
News Release: Kao and Lion Awarded the New Selection Committee Chairman's Commendation in the Good Practices of Consumer-Oriented Management Awards

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Summary of Customer Inquiries in 2022

The Consumer Service Center receives an enormous volume of customer inquiries every year. In 2022, we received
approximately 81,000 inquiries (excluding those sent to direct-to-consumer sales divisions), 95% of the previous year’s
volume. By content, questions about product use, retail outlets that carry Lion products, product quality, safety and othertopics accounted for approximately 70% of all inquiries, while complaints and inquiries regarding problems and similar
topics accounted for around 30%.
Going forward, we will continue aiming to provide an environment that facilitates customer inquiries while responding toinquires in a sincere and timely manner. Contact information for inquiries by phone or email is available on the customer su
pport [Japanese] page of Lion’s website.
A list of contact points by topic is available here [Japanese].
Inquiries by Type (2022)

Information Provision Leveraging Customer Feedback

The customer support [Japanese] page of Lion’s Japanese-language website offers answers and solutions to common
customer questions and problems as well as examples of products improved based on customer feedback, attracting
considerable customer traffic. In addition, to customers that contact us by mail, we send a living information newsletter that
includes content related to common customer questions and seasonal living tips, such as those from Lion’s Meisters of Daily
Life, as well as recommended articles on the Lidea website.
Going forward, we will continue to provide useful information to customers.

Customer support page on Lion’s
website [Japanese].

Recommended articles
information from on the Lidea
website [Japanese]

Examples of products developed or improved based on customer feedback are available here [Japanese].
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Proactive Utilization of Employees

Lion strives to hire and develop the necessary human resources and foster an open and frank corporate culture in order tocreate innovative products and services that provide a high level of value to customers.

Fostering a Corporate Culture that Leverages Customer Opinions
We are working to foster a corporate culture in which all employees think and act based on an understanding of thecustomer’s perspective.
We hold events for new graduate hires and product development staff, etc., in which they listen to recordings of customer
inquiry calls or handle such calls themselves to experience hearing directly from customers. These events help participants
understand the importance of the Company’s contact points with customers and serve as an impetus to think about
customer perspectives in their work. Furthermore, we report the status of customer inquiries at regular meetings in related
departments and morning briefings at operating sites (offices, research institutes and plants) to share such informationinternally.
Going forward, we will work to further enhance employee awareness in order to better provide products and services basedon customer perspectives.

Employees experience providing customer support over the phone

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Leveraging an Understanding of Consumer Perspectives in Our Operations
We are working to foster a corporate culture in which all employees think and act based on an understanding of thecustomer’s perspective. As part of our response to Japan’s severe demographic graying, we have a set of equipment thatsimulates the physical conditions of old age on hand at all times at the Consumer Service Center. By listening to feedback
from our senior customers and wearing the simulation equipment while looking at product labels or holding productcontainers, we strive to deepen our customer insight and foster consideration and understanding of seniors and all
customers among our human resources. These insights and considerations are put to use in product development,
customer support and communications.
We are expanding the range of these efforts to include not only staff involved in product development, but thecommunicators that staff our phone lines and the Meisters of Daily Life engaged in communication efforts.

Meisters of Daily Life using equipment that simulates old age

Initiatives to Provide Support that Satisfies Customers
We hold phone service training in which customer support [Japanese] phone operators learn the skills to quickly andaccurately understand and respond to the issues that customers seeking support have as well as a broad knowledge of Lion
products and related topics. Specifically, we offer training in which operators discuss a wide range of case studies tomutually reinforce their skills, study groups focused on the health and living issues behind products, and training inpronunciation and word choice to make themselves easier for customers to understand over the phone in order to enhancecommunication.
We have the results of these activities evaluated by a third party and strive to provide service that will better satisfy
customers. In addition, we have launched two systems that enable us to resolve customers’ problems 24/7, 365 days a year:
a product retail distributor search service (February 2021) and a chatbot system (April 2021).

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Further Enhancing Quality and Customer Satisfaction
Lion monitors its corporate brand penetration with the help of a market research company. The survey shown below
examines the likelihood of product users recommending Lion products and services, the degree to which they feel they needsuch products and their desire to and their preferences at the time of questioning (for the purposes of the study, the Lion
product users targeted were male and female general consumers over the age of 16). We will continue to gather objective
data on customer opinions in order to provide high-quality products and services.
2018
2019
2020*1
2021
2022
752
784
783
773
783
644
641
664
628
640
85.6
81.8
84.8
81.2
81.7
43.6
43.1
47.6
40.0
44.7
Data from “Brand Strategy Survey,” Nikkei Research Inc.

Overall number of survey respondents
Of these, current product users
Response rate*2(%)
Recommendation rate*3(%)*1 Overall scores of hygiene product suppliers increased due to the COVID-19 pandemic.
*2 Refers to the percentage of total survey respondents who reported that they currently use such products and services.
*3 Refers to the percentage of current users who intend to recommend the products and services.

Customer Support Initiatives at Lion Corporation (Korea)

We maintain mechanisms for responding to customer opinions via customer support hotlines and marketing divisions at ouroverseas Group companies, as well.
Since 2004, Lion Corporation (Korea) has responded to customer opinions and requests in accordance with its customer
inquiry response regulations via a customer support division. Quarterly reports on customer inquiries are made to
management, and important requests are reported to management immediately.

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Ensuring Product Safety and Reliability

Reinforcing the Provision of Information to Customers
Providing Useful Information for Daily Living and Promoting Educational
Activities

Lion actively engages in communication with consumers with the aim of expanding our creation and dissemination of
information that contributes to healthy and comfortable living.

* Specialists who research and provide information useful for comfortable, healthy living

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Initiatives of the Meisters of Daily Life
Lion’s Meisters of Daily Life, career researchers with specialist expertise, are conducting the following activities in the fieldsof oral care, healthcare, hygiene, laundry and living care. Meisters of Daily Life research useful lifestyle information to makeeveryday life healthy and comfortable and share colorful living ideas through various media and events.

Communication with Customers through Workshops

Oral care workshop at anelementary and junior highschool (June 17, 2022)

Laundry workshop at a consumer
lifestyle seminar(October 5, 2022)

Kaji × Kaji Happy Share ProjectHousework sharing seminar cohosted by LION and Akashi City
(October 9, 2022)

Hygiene seminar collaborationwitha restaurant’s website(October 19, 2022)

Seminars covering the healthcare and living care fields were conducted at the event (October 28, 2022)

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Communication with Customers Using the “Lidea” Lifestyle Information Website
Lidea is a lifestyle information website aimed at inspiring curiosity about living habits andhelping users cherish each day by providing content about Lion products, the technologies
behind them, and approaches to daily living. The site provides accurate information that isuseful for consumers’ daily living, presented mainly by the Meisters of Daily Life, lifestyle
information specialists.
Going forward, Lion will continue to provide information useful for daily living through Lidea
and use the information accumulated through Lidea to deepen diverse forms ofcommunication with customers.

Lidea [Japanese] https://lidea.today/

Sustainability Communication Booklet

To help consumers easily and enjoyably understand Lion’s sustainability initiatives,
Lion has created a booklet titled “Foundation of Daily Life: In Numbers” (in Japanese).
The booklet uses numbers to illustrate a variety of social issues closely related to dailyliving and highlights the ways that Lion is working to help solve these issues throughproducts, educational activities and communications.
The booklet is distributed at events related to health, cleanliness and the environment,
where Lion comes into direct contact with consumers.

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Media for the Visually Impaired

Lion uses a variety of media to provide information for the visually impaired.

The Roots of Our Information Provision
Across Japan, Lion provides everyday household goods, such as detergents,
toothpastes, toothbrushes, shampoos and household cleaners. We believe it is our
mission to provide such products as well as clear information about them to all
customers.
The Roots of Our Information Provision [Japanese]

Sawatte Wakaru Tooth Brushing Book

In collaboration with Dai Nippon Printing Co., Ltd., Lion issues the Sawatte Wakaru
Tooth Brushing Book, a health guidebook incorporating universal design with tactile
diagrams for the visually impaired.
Sawatte Wakaru Tooth Brushing Book [Japanese]

Making Products Barrier Free
The page below highlights products developed incorporating a barrier-free perspective
and products that visually impaired customers have commented are convenient basedon their actual usage experience.
Making Products Barrier Free [Japanese]

Timeline of Initiatives
The page below provides a timeline of Lion’s initiatives aimed at addressing the needsof the visually impaired.
Timeline of Initiatives [Japanese]

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Together with supply Chains

Together with Supply Chains

Sustainability Material Issues ９ Building Responsible Supply Chain
Management

Basic Approach

The Lion Group regards the creation of responsible supply chain management through reinforced coordination withmaterials manufacturers and production contractors as a key issue in its supply chain initiatives. To reduce the negativeenvironmental and social impacts of business activities and advance sustainable mutual business development, we must
work with suppliers to evolve our sustainably initiatives based on our Procurement Principles. These principles clearly lay
out Lion’s policy of considering legal compliance, environmental conservation and respect for human rights when selecting
suppliers.
Furthermore, Lion recognizes the importance of promoting the sustainable procurement of palm oil, a key plant-based raw
material for the Company, and is advancing initiatives to that end.

Instituting the LION Anti-Bribery Principles
The Lion Group established the LION Anti-Bribery Principles in January 2019 in light of developments around the world
related to strengthening legal regulations against acts of bribery and corruption.
Going forward, we will continue working to ensure that our business activities are fully compliant with the laws andregulations of the countries and regions in which we do business.

Overview and Implementation Framework

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Initiatives
Promoting Sustainability with Materials
Manufacturers and Production Contractors

Aiming for Sustainable Raw Material
Procurement

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Together with Supply Chains

Promoting Sustainability with Materials Manufacturers andProduction Contractors
Self-Checks Based on the Lion Group Supplier CSR Guidelines*1

To advance responsible procurement activities, each year the Lion Group asks that the materials manufacturers andproduction contractors (suppliers) it works with implement self-checks based on the Lion Group Supplier CSR Guidelines. In this way, we are promoting the creation of frameworks throughout the supply chain to avoid risk related to humanrights, labor practices, the environment, fair operating practices, consumer issues and compliance.
Since 2014, we have moved the self-checks entirely online, enabling suppliers to respond more efficiently. We also provide
suppliers with feedback based on the self-check results. The result of these efforts is a system that continuously advances
CSR procurement. We aim for a 100% response rate every year.
In 2022, Lion Corporation (Korea) requested self-checks from its 129 suppliers , achieving a response rate of 57%. Lion Daily
Necessities Chemicals (Qingdao) Co., Ltd., requested self-checks from its 42 suppliers, achieving a response rate of 100%.
Southern Lion Sdn. Bhd. requested self-checks from its 71 suppliers, achieving a response rate of 49%.
Additionally, self-checks*2 were also conducted by 72 trading partners of Lion Engineering Co., a domestic Group company,
achieving a response rate of 99%.
We will continue to promote sustainability initiatives with our suppliers.
*1 The Lion Group Supplier CSR Guidelines comprise 21 guidelines under the five categories (Human Rights/Labor Practices, The
Environment, Fair Operating Practices, Consumer Issues, Compliance)

Lion Group Supplier CSR Guidelines and Glossary (English)
Lion Group Supplier CSR Guidelines and Glossary (Japanese)
Lion Group Supplier CSR Guidelines and Glossary(Japanese) (Lion Engineering Co. Ltd. version)
Lion Group Supplier CSR Guidelines and Glossary (Chinese)
Lion Group Supplier CSR Guidelines and Glossary (Korean)*2 Lion Engineering Co., Ltd.'s version of the self-check includes the addition of “Confrontation with antisocial entities: Cut off relations with
antisocial entities and reject any unreasonable demands” to item 21.

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2005
2008

2013

2014
2018
2019

2020
2021
2022

Timeline of Sustainable and Responsible Procurement Initiatives
Instituted the Basic Policy Regarding Purchasing and implemented appropriate
procurement of raw materials and products.
Established the Procurement Principles, which clarify our social and environmental
considerations. Conducted a questionnaire survey for domestic and overseas raw
material manufacturers and production contractors about their corporate activities
regarding legal compliance, product service quality and safety, environmental
considerations, labor practices and human rights, and fair trade.
Amended the Procurement Principles and clarified our stance of considering legal
compliance, environmental conservation and respect for human rights when selecting
suppliers. Instituted the Lion Group Supplier CSR Guidelines , which specify thesustainability initiatives we expect from raw material manufacturers and production
contractors and asked our suppliers to conduct self-checks of their sustainability
initiatives.
Introduced an online self-check system.
Lion Corporation (Korea) requested self-checks from its suppliers, expanding thenumber of countries in which the Group implements self-checks.
Established the LION Human Rights Policy and LION Anti-Bribery Principles to clarify
our stance on initiatives for sustainable and responsible procurement.
Established the Sustainable Material Procurement Policy to advance initiatives aimed
at the sustainable procurement of palm oil derivatives and pulp and paper products,
which are key raw materials for the Lion Group.
Took part in the Supplier Ethical Data Exchange (Sedex)—headquartered in the United
Kingdom—in order to further reduce social and environmental risk in purchasing.
Overseas Group company Lion Daily Necessities Chemicals (Qingdao) Co., Ltd.
requested self-checks from its suppliers.
Domestic Group company Lion Engineering Co., Ltd. requested self-checks from its
suppliers.
Overseas Group company Southern Lion Sdn. Bhd. requested self-checks from its
suppliers.

The Lion Group does business with suppliers who have implemented self-checks based on the Lion Group Supplier CSR Guidelines .

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PDCA Cycle for Self-Checks

In order to ensure that our suppliers understand the importance of addressing sustainability-related issues, we include a
section explaining the situation surrounding sustainability in our self-check request form. The self-check employs a threestep checking standard for each initiative and a detailed glossary.

2017
2018
2019
2020
2021
2022

Number of Suppliers Evaluated and Response Rate (Target: 100% every year)
Suppliers
Response Rate
625
610
585
574
502
474

273

99%
98%
99%
100%
100%
96%

Lion Sustainability Website 2023

Results Summary
Self-Check Results (2022)

The response rate in 2022 was 96%, and the average score, on a scale of 1 to 3 points, was 2.62, confirming thatsustainability measures are being implemented throughout the supply chain.
There were 21 suppliers that did not respond.

Key Suppliers
The Lion Group considers suppliers from whom it purchases substantial amounts of raw materials and suppliers that cannot
be readily replaced to be key suppliers. We monitor the sustainability initiatives of key suppliers on an ongoing basis.
Specifically, we define key suppliers as those that provide 80% or more (on a purchase price basis) of a given material usedby the Lion Group and suppliers that are necessary to the Lion Group’s ability to stably supply products to the market.
Key Suppliers

2017
2018
2019
2020
2021
2022

Number of key suppliersPortion of all primary
suppliers that are key
suppliers

90
90
90
90
90
90

14.4%
14.8%
15.4%
15.7%
17.9%
17.9%

274

Portion of purchasing thatis from key suppliers(monetary basis, among
all primary suppliers)
80%
87%
80%
89%
89%
89%

Lion Sustainability Website 2023

High-Risk Suppliers
After receiving the self-checks, the Lion Group confirms whether or not suppliers are meeting the standards it has set for its
key sustainability items. Suppliers with low scores are designated as high-risk suppliers.

Selecting New Suppliers
Before doing business with a new supplier, Lion requires the company to perform a self-check based on the Lion Group Sup
plier CSR Guidelines to confirm that the company meets the standards it has set for its key sustainability items.

Joined Sedex, the Supplier Ethical Data Exchange

Headquartered in the United Kingdom, Sedex is a not-for-profit organization thatprovides the world’s largest platform for managing and sharing ethical supply chain
data, with the aim of establishing ethical and responsible business practices in global
supply chains. The Lion Group joined Sedex as an AB member at the end of 2019 inorder to further reduce social and environmental risk in its purchasing. We encourage
our suppliers to join Sedex to reduce the burden of self-checks and request that they
use the platform provided by Sedex to submit their annual self-check responses. Of
Lion’s 90 key suppliers, 18 are using the Sedex platform (as of December 31, 2022).
Going forward, we will continue to reinforce and enhance supplier management andrisk management.

Employee Training on Sustainable Procurement

Lion provides sustainable procurement training to every purchasing department employee who is involved in buying. We
also hold study groups to help employees obtain certification under the Certified Procurement Professional (CPP) system
offered by the Japan Management Association.* Participants not only learn buying operation management and gain
practical knowledge, they learn about the importance of procurement that takes into account the environment, ethics,
safety and hygiene, human rights and other such factors as well as about working with suppliers.
When selecting suppliers and setting pricing and other terms, we always enter into agreements through negotiations rooted
in fairness and transparency. We thoroughly enforce compliance with the Act against Delay in Payment of Subcontract
Proceeds, Etc. to Subcontractors through such means as training for Purchasing Headquarters employees.
In response to growing calls for CSR procurement, going forward, we will advance human resource development, including
proactively sending employees to seminars related to purchasing and procurement.
* CPP: A qualification for persons involved in corporate purchasing and procurement indicating that the holder has acquired specialized
knowledge in the field of purchasing and procurement.

CPP qualification website [Japanese]

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Together with Supply Chains

Aiming for Sustainable Raw Material Procurement

Sustainability Material Issue Building Responsible Supply Chain
Management

Approach

The Lion Group aims to contribute to the achievement of the Sustainable Development Goals (SDGs), a set of sharedworldwide goals for 2030. However, palm oil derivatives and pulp and paper products, which are key raw materials in the
Lion Group's products, present risks related to raw material procurement to sustainable development in terms of humanrights, labor issues and environmental issues. To address these risks, we have established the Sustainable Material Procure
ment Policy. Based on this policy, we are advancing initiatives aimed at the sustainable procurement of palm oil derivatives
and pulp and paper products.

Sustainable Palm Oil Procurement

The Lion Group is proactively advancing the utilization of plant-derived materials that are carbon neutral and nondepletable. Among the plant-derived materials that Lion uses are derivatives of palm oil—the world’s leading vegetable oilin terms of production volume. Palm oil is produced in principally Malaysia and Indonesia.

The Raw Material Behind Palm Oil: Oil Palms

Palm oil production is increasing year by year, partly because oil palms (the source of palm oil) are highly productive andcan be harvested throughout the year. However, with the rapid expansion of production, a number of issues have arisen in
producing regions, such as the destruction of tropical rainforests and wildlife habitats as land is cleared for thedevelopment of new plantations. Furthermore, improper farming operations involving a wide range of human rights andlabor abuses that reflect a lack of social justice have been identified. These include poor labor conditions with inadequate
consideration given to health and safety, low wages, improper treatment of immigrant workers and the use of child labor.
Since 2006, Lion has been a member of the “Roundtable on Sustainable Palm Oil (RSPO) ,*1” which works toward theresolution of such issues. In 2012, the Oleochemical Production Site of Lion Chemical Co., Ltd., a domestic affiliate thatprocures palm oil from Malaysia and Indonesia, passed the RSPO’s supply chain certification system*2 inspection and wascertified as a plant that may handle RSPO-certified palm oils. Accordingly, Lion Group started procuring RSPO-certified palmoils from 2012. The Lion Chemical Corporation Fine Chemical Production Site received RSPO supply chain certification in
March 2020, and Lion Corporation and all its plants (the Chiba Plant, Odawara Plant, Osaka Plant and Akashi Plant) werecertified in August 2020. Moreover, Lion Specialty Chemicals Co., Ltd. was certified in June 2022.

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The Lion Group’s aim for the end of 2030 is to ensure RSPO certification for all the palm oil derivatives it uses. As of the endof 2022, Lion had switched to RSPO-certified products for 99% of its domestic key raw materials.
Furthermore, regarding the palm oil derivative used in its consumer products, the Group’s aim is to purchase only oil thatcan be traced to sustainability-conscious mills. To ensure traceability, the Group discloses a mill list detailing the key
materials procured from its primary suppliers.
Mill list
Going forward, we will continue to work to procure sustainable palm oil.
*1 The Roundtable on Sustainable Palm Oil
The Roundtable on Sustainable Palm Oil (RSPO) believes that for palm oil production to be sustainable, it must not only be compliant with
relevant laws and regulations, but economically sustainable, environmentally appropriate and socially beneficial. These requirements arelaid out concretely in the RSPO Principles and Criteria. Only palm oil produced in accordance with these seven principles and 40 criteria
can be RSPO-certified.
*2 RSPO Supply Chain Certification
This system certifies that RSPO-certified raw materials have a reliable delivery system in place throughout the entire supply chain, after
audits by external auditors.

RSPO Supply Chain Verification
certificates of the Lion ChemicalCo., Ltd. Oleochemical
Production Site and Fine
Chemical Production Site

RSPO Supply Chain Verification
certificate of Lion Corporation
and all its directly owned plants

RSPO Supply Chain Verification
certificate of the Lion Specialty
Chemicals Co., Ltd.

Sustainable Pulp and Paper Procurement

Pulp and paper are used in the manufacture of the Lion Group’s product packaging, booklets and pamphlets as well as in
the copy paper and other office supplies the Company purchases. In order to better protect biodiversity in the procurementof these materials, based on the Sustainable Material Procurement Policy, we are advancing the procurement of third partycertified paper products. As of the end of 2022, 99% (by weight) of such products procured from domestic manufacturers
was third-party certified, and 65% (SKU) of packaging materials for major products was third-party certified. In addition, we
have identified the country of harvest’s administrative divisions (states, provinces, etc.) for 100% of the woodchips and pulp
used in our product packaging.

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Participation in External Supply Chain Initiatives
Lion has been a member of the Roundtable on Sustainable Palm Oil (RSPO) , an international initiative, since 2006.
Furthermore, since 2012, Lion has taken part in the Supply Chain Subcommittee of the Global Compact Network Japan,
contributing to the preparation of various publications, such as an introductory text on CSR procurement.

Roundtable on Sustainab
le Palm Oil (RSPO)

Japan Sustainable Palm O
il Network (JaSPON) [Japanese]United Nations Global Co
mpact (UNGC)

Holding the th Regional Purchasing Manager Meeting
The Lion Group holds the Regional Purchasing Manager meeting annually with the goals of reducing costs at the overall
Group level and reinforcing communication between the purchasing staff of participating companies by fostering personalconnections.
In 2022, the conference was held online in September, with participation from six countries, including Japan. At themeeting, the 12th of its kind, representatives from each company reported on their use of such sustainable packaging
materials as mono-materials and recycled plastics as part of their ESG initiatives, challenges their Purchasing departments
have been facing due to the COVID-19 pandemic, their cost reduction efforts and other issues in addition to sharing
information. We will continue to support the purchasing activities of each company to strengthen the purchasing power ofthe entire Group.

Participating purchasing staff of each company at the online meeting

Participating Overseas Group Companies

Lion Corporation (Thailand) Ltd.
Southern Lion Sdn. Bhd.
PT. Lion Wings
Lion Corporation (Korea)
Lion Daily Necessities Chemicals (Qingdao) Co., Ltd.

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Green Purchasing
The second item of Lion’s Procurement Principles states that Lion shall “Rationally select business partners not only on thebasis of quality, cost and timely delivery, but also regulatory compliance, environmental protection, labor, and humanrights, to fulfill our responsibility to customers and to create a sustainable, healthy society.” In line with this principle, we
promote environmentally friendly green purchasing on a Company-wide basis.
Along with green purchasing, we are committed to using environmentally friendly office supplies, including notebooks andcompany envelopes made from recycled paper and FSC certified paper. In addition, with the relocation to the newheadquarters, we have shifted from a conventional purchasing model with multiple departments ordering such supplies
independently to one in which a concierge counter handles bulk purchases, helping to regulate the overall volume of officesupplies in stock.

Transition to Biomass Inks for Product Packaging
Products with reduced environmental impact are required if we are to minimize environmental problems such as marine
plastic pollution and global warming. With this aim in mind, Lion has started using biomass inks* made from plant-based
raw materials for some of the color inks used in product packaging (pouches, shrink films, attention seals, labels, etc.).
* Inks designed with biomass-derived raw materials as a portion of the resin component and comprising more than 10% plant-based
ingredients in the ink film once dry.

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Together with Employees

Together with Employees

Sustainability Material Issue ３-７

Basic Approach

One of the growth strategies of Lion’s Vision2030 is “Generate dynamism to realize innovative change.” Under this strategy,
we aim to have all employees spurring on one another in their respective growth processes and operating as autonomous
individuals in order to generate waves of innovative change; that is, dynamism, across the organization as a whole. To do so,
we are promoting corporate branding based on understanding of and resonance with our purpose—make a difference ineveryday lives by redesigning habits: ReDesign—to help employees feel real value in working for Lion, thus improving
employee engagement. Furthermore, in addition to our efforts to create employee-friendly workplaces from the perspectiveof human resource development—in everything from hiring to training, compensation and the fostering of healthy habits—
we also aim to increase productivity and create new value by instilling a sense of professional fulfillment in every employee.
Through further advancement of corporate branding and LION Professional Fulfillment Reforms*, we are helping employees
fully display their diverse capabilities to form a collective of human resources that will embody our purpose. In this way, we
will continue to transform for sustainable growth.
* Initiatives to increase the professional fulfillment of each and every employee, develop personnel who generate new value and improvelabor productivity.

Overview

We are advancing a variety of initiatives rooted in the common approach of activating individuals and organizations.
In addition to efforts to enable diverse human resources to succeed, promote diverse work styles and develop independent
human resources, we aim to realize better workplace environments by maintaining and enhancing labor-management
relations, health and safety (Figure 1).
Furthermore, via the Lion Professional Fulfillment Reforms, we are offering a wide range of options and opportunities for
employees based on four overarching themes aimed at making maximum use of diverse talent. By doing so, we are working
to create environments that allow employees to utilize their own strengths, find the work styles that best suit them andbetter coordinate with others (Figure 2).
Figure 1. Initiatives to Activate Individuals and Organizations

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Figure 2. Lion Professional Fulfillment Reform Framework

Initiatives
Developing Human Resources

Promoting Work-Life Enrichment

Promoting Diversity and Inclusion

Improving Employee HealthEnhancing the Occupational Safety
Management System

Labor-Management Relations

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Together with Employees

Developing Human Resources

Sustainability Material Issue Developing Human Resources
Approach
Lion’s Ideal Human Resources
Human Resource Development to Support Career Autonomy
Human Resource Development Programs

Career Autonomy Support Measures

Approach

The core concept of the Lion Group’s human resource development is to generate human resources who proactively think
and take action regarding their careers, work and work styles and engage in their work productively.
To put our purpose, “Make a difference in everyday lives by redesigning habits: ReDesign,” into action, it is essential thateach and every one of our employees is able to achieve a clear sense of professional fulfillment as well as ongoing personal
growth and self-realization. We aim for all employees to operate as autonomous individuals, spurring one another on inorder to generate dynamism across the organization as a whole. In this way, we seek to become an advanced daily
healthcare company and contribute to the realization of healthy minds and bodies for all consumers.

Dynamism generated through a cycle of contribution and support

The Lion Group strives to foster habits that allow employees to feel secure and take on challenges so that they can realize
career autonomy and exercise their diverse abilities. By doing so, we aim to develop human resources who generateinnovative dynamism.
In addition to offering support that facilitates individual self-realization, the entire Company strives to foster a culture thatencourages employee growth and to strengthen relationships between supervisors and subordinates. In this way, we strive
to provide conditions that enable employees to feel secure across all departments.
To enable employees to realize the careers they have designed for themselves, we provide human resource development
support that empowers them to grow through the autonomous acquisition of knowledge and experience and thus makemaximum use of their diverse talents.

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Support for self-realization

Lion’s Ideal Human Resources

Human Resource Development to Support Career Autonomy
Key Points

Lion offers programs, most of which are elective, by career theme. Through these programs, we advance human resource
development tailored to the growth of each individual employee.

Map of human resource development programs
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To nurture highly competent professionals, we implement human resource development through the head office, job
groupings* and departments.

Support for self-realization*Job groupings are cross-departmental categorizations of roles and job types that require similar expertise. The groupings
serve to drive human resource development aimed at increasing expertise in specific areas and are utilized in coordination
with the personnel-related initiatives of the head office and individual departments.

Career Autonomy Support Measures
Multifaceted Evaluations of Ability

One of the four overarching themes of the Lion Professional Fulfillment Reforms is Management. As a measure in this area,
we carry out multifaceted evaluations of ability, providing an impetus for employees to autonomously grow and work inways that better suit them.
Once a year, employees and their colleagues evaluate their behavioral characteristics and receive feedback from theirsupervisors. This initiative, adopted from fiscal 2021, helps spur self-directed, autonomous growth.

Multifaceted evaluations of ability provide material for use in helping
employees grow both autonomously and with the guidance of supervisors
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Talent Management System
One of the overarching themes of the Lion Professional Fulfillment Reforms is “Strengthen relationships.” Efforts in this area
include the adoption of a talent management system that gathers existing data on individuals and organizations andenables them to register and broadcast additional information themselves.
Functioning like an internal social media platform for finding as well as connecting and collaborating with others, thesystem helps create opportunities to strengthen relationships.

The talent management system serves as a tool for communication

Job Maps

Job maps provide, on a single sheet, a clear visual explanation of the delineation of duties within each department, serving
as an easy-to-use alternative to conventional detailed written explanations of duties by theme.
Introduced in January 2023, job maps include information on the specific duties of each role and the skills andcompetencies they require. This enables employees to take steps to prepare themselves for the career path they aspire toand is aimed at promoting self-development, ingenuity and ambitious effort.

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Lion Career Village (LCV)
Since 2019, to adapt to changing modes of learning while creating new learning
opportunities, we shifted from conventional level-specific training to a more selfdirected mode of learning via Lion Career Village (LCV), our platform for learning.
LCV offers programs divided into e-learning (mainly video content) and small group
discussions. Users can access and learn from approximately 4,000 units of online
content and discussion-style programs encompassing knowledge from within theGroup and outside.
Going forward, to help employees gain knowledge that will further expand the breadthand depth of their work and with an eye to accelerating institutional learning, we will
create environments that enable them to teach one another and share what they havelearned.

Enhancing Lion Career Village (LCV)

Going forward, we will continue to improve work environments that promote ambition and creation to help all employees
advance their careers in an effort to reinforce front-line capabilities.

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Human Resource Development Programs
Career Design Support
Lion has established the Career Design Support hotline to help employees practice conscious autonomy that will enable
them to advance their careers based on their own aspirations and actions. The hotline allows employees to seek
consultation about their careers and provides information from within and outside the Company, helping employees design
their careers and rediscover their own potential.
We also hold career seminars for specific age groups and offer lectures on specific career themes to meet employees’
particular needs while helping them develop an awareness of the ways in which they can leverage their unique strengths
and experience in their careers.

Interview with a career
consultant

Holding career design seminars
for each career stage (online)

Orientation Program for New Graduate Hires

Purpose: Instilling an adult mindset and an understanding of the business structure while building a foundation for career
autonomy
Overview: For all new graduate hires of all job types, we provide a curriculum that not only encourages a shift from themindset of a student to that of a full-fledged adult but also incorporates a breadth of on-site experiences to promote anunderstanding of business structure.

Follow-up Program

Purpose: Providing opportunities for employees to review day-to-day tasks as well as to reexamine their individual
aspirations and values and then utilize the realizations gained to design their own careers
Overview: We provide a curriculum centered on supporting junior employees (employees hired as new graduates in theirfirst and second years with Lion) in designing their careers.
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Marketing Study Program
Purpose: Providing study opportunities to enhance understanding of marketing for interested individuals
Overview: The Marketing Study Program has been implemented continuously in the Marketing Division since 2014. This
program offers opportunities for the systematic study of such topics as practical marketing theory and planning design
based on consumer insights and competitive strategies. The program also serves to develop marketing personnel inaccordance with individual career paths.

Global Personnel Development Program
Purpose: Building the knowledge, insights and connections needed to forge autonomous careers by imparting basic skills
necessary in globally capable personnel and an understanding of the Lion Group’s overseas business in Asia
Overview: The Global Personnel Development Program was launched in 2021 to further expand Lion’s overseas business in
Asia. The program’s training curriculum encompasses problem solving, understanding cultural differences and learning
foreign languages as well as visits to overseas locations. Through the program, we are developing globally capable humanresources who can excel across Asia, including Japan, based on outstanding expertise.

Introduction to Management Program
Purpose:
1. Understanding the roles expected of upcoming managers
2. Acquiring interpersonal management skills through both theoretical understanding and hands-on learning
3. Enhancing participants’ understanding of Lion’s corporate governance while instilling an awareness of proactively
modeling compliance
4. Understanding managers’ responsibility to look out for the mental health of subordinates and putting that responsibility
into practice in the workplace
Overview: Comprising the Management Skill Training Program and Leadership Training Program, this program aims to
impart both the knowledge and practical skills necessary for interpersonal management in management positions, coveringsuch topics as compliance, understanding business conditions and looking out for the mental health of subordinates.

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Side Job System
In 2020, we introduced a side job system (in which employees can either devise their own side job or choose from a numberof options) to create opportunities for employees acting with conscious autonomy to gain knowledge and experience.
Pursuing a side job can be an opportunity for employees to expand their own potential and take a fresh look at their own
abilities. As such, we are both granting employees permission to work side jobs outside the Group and recruiting outside
talent to work side jobs at Lion. By gaining experience outside the Company, employees can grow and evolve while
expanding the breadth of their career and career options. Furthermore, we aim to leverage the external knowledge andconnections that employees build through their side jobs to help create new value.
Expected Benefits
Employees will build relationships outside the Group and broaden their horizons externally, enabling them to expand thebreadth of their careers and grow as individuals. They will then be able to apply the experiences gained to their work at
Lion.
Lion will gain skills, knowledge and experience that it lacks internally.

NOIL
Under the theme of going beyond conventional healthcare wisdom, we launched NOIL,
a program for selecting and implementing new business ideas in 2019, with the aim ofcontinuously creating businesses that offer new value.
Held every year, the program has run three times thus far, each year collecting ideas
based on diverse perspectives from among employees in not only the R&D Division andMarketing Division, but divisions across the Company, including sales divisions and theProduction and Logistics Headquarters. The applicants examine issues faced by society
and consumers and, on their own, come up with ideas aimed at resolving them thatthey turn into business proposals. To commercialize the ideas for new products andservices that management and outside experts select as promising, the employees
who submitted the ideas that are chosen are transferred to the Business Development
Center, where they take a central role in building their new businesses.
Overall flow of the NOIL program

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Commercialized Business: Kyuzituhack
I worked in sales for eight years after joining Lion, but I decided to apply
to the NOIL program because I wanted to create a business based on myown ideas in order to offer something exciting to the world. I proposed a
service, Day Off Hack!, to help customers mix up their stale regularroutines. My idea was selected for development through NOIL in
December 2019.
We established Kyuzituhack Co., Ltd. with venture capital funding, and I was appointed its president. I had myhands more than full, what with establishing the company, running it as president and developing its business.
First, we developed Day Off Hack! (released October 2020), a service that connects users with interesting things
to do outside the home. Then, in response to growing demand driven by the COVID-19 pandemic for homebased alternatives, we released At-Home Hack!, a service that delivers kits that provide fun, unexpected
experiences that can be enjoyed at home (released March 2021). Since their release, the services have been wellreceived, with more than 40,000 registered users.
Since 2022, we have been working on Machi Hack!, a service for creating experiences involving entire
neighborhoods. This, too, has garnered positive feedback from customers.
Through services that offer encounters with new things you wouldn’t think to seek out yourself, I hope we canoffer new living habits and value in a fun and enjoyable way.

Kyuzituhack [Japanese]

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Relationship Strengthening Program
Purpose:
1. Reviewing operational management and interpersonal management to redefine personal goals
2. Reconsidering the roles expected of colleagues and subordinates and reestablishing one’s own goals as a manager
3. Enhancing management and leadership skills through both theoretical understanding and hands-on learning
Overview: In line with Lion Professional Fulfillment Reforms, we are reinforcing initiatives to strengthen relationships as afoundation for promoting and enhancing the effectiveness of various measures related to skill development, work styles
and work management.

Domestic Exchange ProgramThis program dispatches employees to business schools in Japan to acquire MBAs. Candidates are selected from among
employees who have a strong desire to learn new skills and who have been with Lion for at least three years.

Next-Generation Leader Development
This program selects and trains highly skilled personnel to lead organizations.

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Together with Employees

Promoting Work-Life Enrichment

Sustainability Material Issue 4 Promoting Work-Life Enrichment
Realizing Mid- to Long-Term Life Plans (Balancing Work and Nursing/Childcare)
Workstyles That Help Realize the Daily Lifestyles That Employees Seek

In order to utilize the power of our human resources, it is necessary for a diverse range of people to demonstrate theirdiverse abilities and work in their own way. For this reason, we view work and life as one, and aim to create an environmentthat helps employees fulfill their ambitions through synergy between work and private life. We are committed to creating anenvironment in which each employee can realize their ambitions in life. To this end, we provide a variety of support services
to help each employee realize their mid- to long-term life plan and daily lifestyle.

Realizing Mid- to Long-Term Life Plans (Balancing Work and Nursing/Childcare)
For individual employees to be able to realize their mid- to long-term life plan, it is necessary to expand the range of life
planning options for events that have a large impact on life, such as childcare and nursing care.

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Programs to Support a Balance Between Work and Nursing Care
Lion has enhanced support for employees engaged in nursing care of family members as part of efforts to create anenvironment that allows employees to continue to work with peace of mind while handling such responsibilities. In addition
to ordinary annual paid leave, we have in place programs to support nursing care providers, including nursing care leave of
up to 365 days, shorter work hours for nursing care (short hours flextime system), short-term nursing care leave andaccumulated leave for nursing care (accumulated expired annual paid leave). Furthermore, we have set up a support
website targeting employees aged 40 and over to better provide information on nursing care, including videos of caregiving
seminars for managers and individuals.

Nursing care

Programs to Support a Balance Between Work and Nursing Care
Up to a total of 365 days of leave in one-day units may betaken per family member requiring nursing care (in365 days of nursing care leaveaccordance with laws and regulations, this is available
up to three times per employee)
Employees may reduce their work hours (by up to two
Shorter work hours for nursing
hours per day) as long as necessary to provide nursing
care
care
(short hours flextime system)
May be used in combination with the flextime system
Employees may take up to five days per year to provide
Short-term nursing carenursing care for one family member or up to 10 days per
year to provide nursing care for more than one family
leavemember
Accumulated expired annual paid leave (up to 60 days)
may be used for the nursing care of close relatives
Accumulated leave(Close relative nursing care)* Accumulated paid leave may also be taken for the employee’s
own medical care or for volunteering

Programs to Support a Balance Between Work and Childcare
Lion is proactively enhancing its programs that support employees who are balancing work and childcare. We are expanding
related programs in line with our action plans based on the Act on Advancement of Measures to Support Raising NextGeneration Children and the Act on Promotion of Women’s Participation and Advancement in the Workplace and working toincrease awareness among employees. As a result of these efforts, in 2022, 93% of eligible female employees (full-time
employees only, excluding full-time contract employees) took childcare leave. The number of male employees taking
childcare leave is rising at 68% across a wide range of departments.** Based on calculations of the percentage of care leave used in accordance with the Child Care and Nursing Care Leave Law

Employee motivation often falters during the early childcare years. Lion offers support for employees to help develop theircareers while raising small children. For example, we have set up a website offering information for employees returningfrom childcare leave and raising small children as well as support for employees wanting to learn new skills while on
childcare leave. To ensure proper understanding of the programs available, we hold individual orientations, attended byeligible employees and their supervisors, as well as pre-reinstatement seminars and post-reinstatement interviews in orderto facilitate a smooth return to work and support ongoing career development.
Furthermore, to promote the professional participation and advancement of employees who are raising children, Lion offers
a new work style—the short hours flextime system—combining the reduced work hours system and flextime system (theflextime system applies to all employees, excluding those working in certain workplaces at plants).
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ChildbirthChildcare

Programs to Support a Balance Between Work and Childcare
Maternity leave
Six weeks before and eight weeks after childbirth (paid)
Special leave for spouse’s
Two days (paid, with bonus)
childbirthTaken within 8 weeks of the expected delivery date or
actual delivery date, whichever is later
Up to 28 days
Special leave for childbirth
Can be taken in two parts
First two weeks of initial leave* are paid, bonus
deducted
May be taken until the child is two years old
May be taken in two parts until the child is one year old
Can be taken in turns by parents between one year andChildcare leave
one year and six months, and one year and six months to
two years
First two weeks of initial leave* are paid, bonus
deducted
Employees may reduce their work hours by up to twohours per day until the child finishes first grade
Shorter work hours for childcare
May be used in combination with the flextime system
Employees with children below elementary school age
Exemption from overtime work
may apply for exemption from overtime work
Employees may take leave in hourly units to care for
injured or sick children below elementary school age(paid)
Leave to nurse sick children
Employees may take up to five days per year for one
child below elementary school age or up to 10 days per
year for more than one such child* Initial leave is the first leave taken, either for childbirth leave or childcare leave

Employee Benefits [Japanese]

Creating Comfortable Working Environments

When Lion relocated its head office in 2023, it installed family rooms and nursing rooms to enable employees who areraising children to work with peace of mind, as well as enable them to bring their children to work as necessary. Familyrooms are primarily for use by employees who bring their children to work, but can also be used as regular meeting rooms.
Nursing rooms have been set up for breastfeeding, pumping and lactation, and are used to support health and childcare for
employees returning to work during the breastfeeding stage.

Family room

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Initiatives Based on the Act on Advancement of Measures to Support Raising Next-Generation Children
Lion is aggressively working to create environments that allow employees to work while raising children so that all
employees can exercise their abilities to the fullest.
As a result, Lion has fully accomplished the first five phases of its Action Plan based on the Act on Advancement of Measures
to Support Raising Next-Generation Children and received Kurumin certification for each. Through such initiatives as
encouraging the use of childcare-related systems, providing support for smooth reinstatement after childcare leave andencouraging male employees to take parental leave, we have achieved a 100% retention rate for female employees one year
after giving birth and a 71% usage rate for childbirth leave or parental leave among male employees (for the period of April
2015 to December 2018).
In addition, under the 5th Phase (covering April 1, 2015 to December 31, 2018) of our Action Plan, we advanced efforts topromote healthy work-life balance among all employees, not only those raising children, such as encouraging the use ofannual paid leave and expanding the use of the work-from home system. As a result of these efforts, in 2019, Lion received
special Platinum Kurumin certification from the Minister of Health, Labour and Welfare.

2007

1st Phase2009

2nd Phase2011

3rd Phase2015

4th Phase2019

5th Phase

Kurumin Certification
Received Kurumin certification as a childcare-supporting company
from the Minister of Health, Labour and Welfare
Received Kurumin certification as a childcare-supporting company
from the Minister of Health, Labour and Welfare
Received Kurumin certification as a childcare-supporting company
from the Minister of Health, Labour and Welfare
Received Kurumin certification as a childcare-supporting company
from the Minister of Health, Labour and Welfare
Received special Platinum Kurumin certification as a childcaresupporting company from the Minister of Health, Labour and WelfareNews Release [Japanese]

Kurumin certification markPlatinum Kurumin

At present, under the 6th Phase of our Action Plan (covering February 1, 2019 to December 31, 2022), we have achieved ourgoal to create employee-friendly environments that allow employees to work while raising children and exercise theirabilities to the fullest. After the 6th Phase is finished, we will continue to utilize our Platinum Kurumin certified system anddisclose the required information on the Ministry of Health, Labour and Welfare’s website.
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6th Phase of Lion’s Action Plan Based on the Act on Advancement of Measures to Support Raising
Next-Generation Children: Goals and Status of Initiatives

Goal 1

Within the period of the Action Plan, implement support measures to create a working environment inwhich employees on childcare leave can smoothly return to work.
Initiatives
2019: Launched the Lion Career Village and provided support for self-study while on childcare leave and forcareer development after return to work.
2020: Held discussions about career development with internal instructors at pre-reinstatement seminars.
Continued to provide explanations of childcare support systems to the supervisors of employees using said
systems.
→Launched the Lion Career Village and provided support for self-study while on childcare leave and for careerdevelopment after return to work. (Begun in January 2019, held annually)

Goal 2

Within the period of the Action Plan, have 13% or more of eligible male employees take childcare leave,
one or more such employee takes long-term parental leave and 30% or more of such employees takespecial leave (for childbirth).
Initiatives
2019: Explained childcare leave systems to employees who filed childbirth registrations and to theirsupervisors and encouraged them to take leave.
2020: Began promoting the use of leave systems by featuring employees who have used them in the internal
newsletter, thereby sharing real-life experiences of work-life balance improvement.
→In 2022, of the 67 male employees to whom children were born, 46 (68%) took childcare leave, and another 37(50%) took special leave for the birth. As such, we achieved the target.

Goal 3

Within the period of the Action Plan, promote measures for understanding and use of the work-fromhome system and implement for support the establishing the system.
Initiatives
2019: Expanded the departments and employees eligible to use the work-from-home system. Promoted
understanding and use of the system through mass orientations, workplace orientations, individual meetingsand other means.
2020: Began promoting the use of leave systems by featuring employees who have used them in the internal
newsletter, thereby sharing real-life experiences of work-life balance improvement.
2021: Analyzed data on system usage by workplace in order to improve systems.
→In January 2020, we expanded the range of eligible employees to include approximately 70% of our regular
employees and full-time contract employees, excluding those working in production divisions. In addition, to
promote flexible and autonomous work styles, we have eliminated the previous one day per week limit on
telecommuting. In January 2021, we launched the Knowledge Cafe, an internal intranet site about Lion
Professional Fulfillment Reforms, to introduce examples of telework usage and diverse work styles. The
telecommuting rate is now around%, which allows for a better balance between work and private life.
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Perspectives of Employees Balancing Work and Childcare
I used Lion’s childcare leave in 2016 and again in 2019 when I gave birth
to my children. Lion’s various support systems had been well establishedwhen I had my first child, but they were further strengthened for mysecond child, and I felt that they created a very comfortable working
environment for mothers. I was very anxious about returning to work
after childcare leave because I could not imagine a life of raising two
children while working, especially considering that I have not only one
child, but also my second child. However, when I attended the Back-toWork Seminars, I heard stories from more experienced mothers and wasable to get a better picture of what it is like to balance work and family
life. Talking with other mothers who were returning to work at the sametime made me feel like I could do my best, and Lion’s systems werebeing improved, so I was able to look at returning to work in a positive
light.
I met my husband while working at Lion, and when I had my second
child, he was also able to take childcare leave. The Company as a wholeis very supportive of parenting, regardless of gender, so we were able toenjoy raising our children without hesitation, which I appreciated.
Now, I am currently utilizing the short hours flextime system, the full flex
system, and the telecommuting system. In addition, my superiors andcoworkers are very understanding, so I am able to work in a flexible
manner, which is very helpful, I feel that I am truly blessed to be able towork while raising my children.

Mariko Watanabe (at the time)
DX Promotion Department

Work Styles That Help Realize the Daily Lifestyles That Employees Seek

To achieve the daily lifestyles that employees seek, it is necessary to reduce overtime and long working hours, make theleave system more accessible and increase flexibility in working hours and locations.

Promoting Work Hour Management and Annual Paid Leave
We have been working to reduce long working hours and encourage employees to take annual paid leave since 2010.
Through e-learning programs for employees throughout the Company, covering such topics as compliance, we arepromoting understanding of appropriate work management, including work hour management. In addition, in order toachieve our 2023 target of 80% annual paid leave taken, we are implementing initiatives for all employees to take at least 5days per year under a labor-management agreement.

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Rule Revisions to Promote Independent Work Styles
In 2015, we introduced a work-from-home system that promotes flexible work styles not bound to specific workplaces. Thiswas done with the aims of accommodating autonomous work styles in line with the diversity of our employees andincreasing productivity. In 2019, we improved our work-from-home related systems and their operation, including
encouraging participation in the 2019 Telework Days campaign.*1 By the end of 2019, trial implementation had expanded tothe point that the portion of employees who had used the work-from-home system at least once had grown to 49%.
To prevent the spread of the COVID-19 pandemic in 2020, the adoption of work styles that do not require employees to bepresent in offices or commercial premises was rapidly expanded, and digital tools were adopted throughout the Company.
In January 2021, we reinforced our telecommuting and full-flex systems (eliminating core time and enabling employees totake discretionary off-the-clock breaks) in response to shifts in work styles due to the COVID-19 pandemic. This shift toward
more independent work styles that accommodate diverse needs has resulted in a usage rate for these systems of around
50%.*2 The practice of work styles suited to individual needs continues to take root, helping improve professionalfulfillment. Furthermore, because it is difficult to enable production site employees to freely set their own hours, we haveestablished a system for such employees to take time off in hourly increments. This system makes it easier for employees tobalance their private lives and work, helping to bolster motivation.
*1 The Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry, in collaboration with related
government agencies and organizations, called on companies to implement telecommuting throughout Japan with the aim of expanding
telecommuting nationwide and alleviating transportation congestion during the Tokyo Olympic and Paralympic Games.
*2 Excluding periods under state of emergency declarations related to COVID-19 pandemic.

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Smart Work
Since 2019, we have been relaxing rules about work attire. This is aimed at enabling employees to practice work styles thatspark open innovation and creativity to the greatest extent possible.
In 2023, Lion relocated its headquarters, and the traditional mindset of requiring every employee to come into the officeand sit in an assigned seat has been replaced with a work environment that, depending on the nature of their work and theirmood, promotes employees’ freedom of choice regarding time and place as well as work style, whether in person or fromhome.
In these and other ways, we are fostering employees who focus their efforts on the essential creative, high-value-added
aspects of their work as well as a corporate culture that rewards doing so.

New office of headquarters

Volunteer Leave System
Lion has a special volunteer leave system (up to five days per year) to support employees participating in Companydesignated volunteer activities as well as a general volunteer leave system (in which employees can use expired annual paid
leave) to support employees participating in volunteer activities of their own choosing.
Japan is frequently affected by natural disasters, such as flooding and earthquakes. Through employees’ active
participation in activities to promote recovery in affected areas, we aim to contribute to local communities and enhance
participants’ awareness of social contribution.
From 2020 to 2022, due to the COVID-19 pandemic, the number of employees who participated was 0.

Forest maintenance participants, including employees using the special volunteer leave system

Users (daystaken)

2018
13 (16days)

Employees Using Volunteer Leave
2019
2020
15 (19days)

299

2021
0

2022
0

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Lion Sustainability Website 2023

Employee Awareness and Behavior Survey
Since 2013, we have conducted an annual employee awareness and behavior survey of domestic Group employees in order
to confirm changes in employee awareness and behavior, with the aim of achieving a state in which every employee feels
fulfillment in their work. The results of the survey are used for measures to improve job satisfaction of employees.

Overall survey
response rate
Total response
rate from men
and women
employees
MaleFemaleBelow 30 y/oLion Corporation
30–39 y/o(excluding
employees on loan) 40–49 y/o
50–59 y/o
60 y/o andabove
NonManagement
PositionsManagement
Positions(Including
officers)

Employee Awareness and Behavior Survey*
Employees take pride in their work
2018
2019
2020

2021

2022

91.5%

85.8%

83.0%

84.3%

89.5%

96.2%

95.7%

97.3%

80.5%

77.1%

97.2%
94.5%
94.1%
94.8%
95.3%
97.7%

96.5%
94.3%
94.0%
93.9%
96.1%
95.7%

97.5%
96.8%
95.3%
96.7%
96.8%
97.9%

82.8%
77.0%
74.9%
78.9%
79.0%
84.6%

78.2%
78.1%
71.9%
76.9%
75.9%
79.5%

98.1%

98.0%

97.2%

85.4%

82.1%

95.1%

94.4%

96.6%

77.5%

74.9%

98.5%

98.7%

98.8%

89.6%

85.1%

* Since the ratio reached close to 100% in 2020, the survey options were modified in 2021 to enable us to create even better working
conditions.

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Together with Employees

Promoting Diversity & Inclusion

Sustainability Material Issue Promoting Diversity & Inclusion
Deepening Understanding of the Importance of Diversity & Inclusion
Promoting the Professional Participation and Advancement of Women
Promotion of International Employees
Promotion of Mid-Career Hires
Actively Promoting the Hiring of People with Disabilities
Diverse Work Styles

Employee Data

Deepening Understanding of the Importance of Diversity & Inclusion

Lion is promoting internal diversity and inclusion in order to improve the creativity of its business activities.
To maintain the sense of urgency required to create new value and address life and social issues, it is necessary to maximize
the varied knowledge and experience of our diverse human resources so they are equipped to generate new ideas andinnovations. We will create an environment and foster a corporate culture in which employees with diverse values andperspectives, regardless of nationality, gender or other attributes, respect each other and can fully demonstrate theirindividuality and abilities. Currently, a team responsible for diversity within the Human Resources Development Center isimplementing a variety of measures to this end.
Since 2022, Lion has held workshops on unconscious bias for management and department managers. The workshops
helped participants gain a proper, deeper understanding of diversity & inclusion, and discussed how everyone holds biases
and the effects and issues they can cause. Going forward, we will expand this understanding to every manager andemployee, and build an organization that is mutually receptive and where diverse and varied personnel can play an activerole.

Unconscious bias workshop

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Promoting the Professional Participation and Advancement of Women

Lion recognizes that the professional participation and advancement of women is indispensable to the further
enhancement of corporate value and is proactively implementing measures to promote the professional engagement of
women.
Based on the Act on the Promotion of Women’s Participation and Advancement in the Workplace passed by the JapaneseDiet in 2016, Lion is implementing measures to enable the long-term professional participation of women. These include
expanding our childcare-related programs and implementing measures to support employees balancing childcare
obligations with work.
To narrow the gap in compensation between men and women, the Company provides each employee with learning and fair
growth opportunities while also providing training for evaluators aimed at ensuring that gender discrimination andunconscious bias do not affect their judgement of employees with regard to their education and training, care work
responsibilities (i.e., home and childcare) and work experience. In March 2020, we endorsed and participated in theactivities of “30% Club Japan ,”*1 a campaign targeting boards of directors comprising 30% women. The club provides
opportunities to participate in meetings with other companies to exchange opinions on women’s activities and programs
that encourage young women to think about their careers.
In 2022, we launched a mentoring program and empowerment seminars to support leadership development for women anddiverse career advancement. Through a range of initiatives, we have increased the proportion of female employees at the
management level*2 on a non-consolidated basis to 12.8% (at the end of 2022). Looking toward 2030, we aim to advance theprofessional development and promotion of women on a Group-wide basis, targeting a rate of women in management of atleast 30% for the Group and at least 35% for Lion Corporation.
Lion’s Action plans based on the Act on Promotion of Women’s Participation and Advancement in the Workplace and its
Declaration are available on the Ministry of Health, Labour and Welfare’s portal site for information about positive action topromote women’s participation and advancement in the workplace.
Lion’s entry in the Ministry of Health, Labour and Welfare’s database of companies submitting action plans and data b
ased on the Act on Promotion of Women’s Participation and Advancement in the Workplace [Japanese]*1 A global campaign founded in the United Kingdom in 2010 with the goal of increasing the percentage of women in key decision-making
bodies, including boards of directors, to 30%.
*2 Personnel holding managerial positions at the level of manager or higher

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Act on Promotion of Women’s Participation and Advancement in the Workplace General
Employer Action Plan
Lion Corporation
Lion Corporate has established the following action plan in order to create environments in which employeeswith diverse work styles and values can participate and advance, regardless of such factors as nationality,
gender or age, and to further increase opportunities for value creation.
1. Plan duration: May 1, 2021 to December 31, 2030
2. Challenges we face:
Closing the gap in the proportion of men and women in management positions
Creating a corporate culture that respects and leverages diversity
3. Action plan
Target 1: A rate of women in management* of at least 35% by the end of 2030
From 2021:
Revise evaluation systems to promote the professional participation and advancement of both men andwomen
Build a career support system that eliminates bias and enables empowerment(enhance the mentoring system, create development plans that account for life events, etc.)
Reinforce internal and external communication about management’s commitment to promoting women’s
professional participation and advancement* At the level of manager or higher, in general

Target 2: For 100% of eligible men to take childcare leave by the end of 2030
From 2021:
Promote a shift in thinking toward leveraging diversity
Implement training on unconscious bias
Reinforce promotional activities to encourage the use of childcare leave
Provide opportunities for reflecting on employee diversity

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Promotion of International Employees

As of the end of 2022, Japanese employees account for 41.4% of the 7,587 employees in the consolidated Group. At overseas
Group companies, employees native to those various countries and regions work closely with Asian consumers, proposing
better practices and other activities. In Japan, foreign nationals comprise 1.5% of the total number of employees and 0.4%of the total number of managers. We aim to raise the ratio of foreign nationals in management positions to equal that in the
total workforce by 2030. These efforts to promote the appointment of international employees are aimed at theachievement of business growth through the realization of a varied and diverse workforce.

Promotion of Mid-Career Hires

In order to further develop our current and new businesses, we are actively hiring and promoting mid-career hires who haveexperience, skills and expertise not previously available in the Company.
As a result of activities based on the recruitment plan for new graduates and mid-career hires in the medium-term humanresources plan, the rate of mid-career employees hired during the three-year period from January 2020 to December 2022
was 33.9%. Furthermore, we are actively re-recruiting people who once left the Company for such reasons as careeradvancement or family circumstances.
As of December 31, 2022, the rate of mid-career hires to the total number of employees was 27.6%. The rate of mid-careerhires in management positions was 11.5%, and we aim to have the same level of mid-career hires in management positions
by 2030 as traditional employees.
* Employees of the Company (excluding temporary employees, etc.)

Promoting the Hiring and Activities of People with Disabilities

Lion actively recruits people with disabilities year-round. We are committed to creating a work environment that allows
people with disabilities to make the most of their individual skills while providing thoughtful employment that matches
their abilities.
In April 2016, we established the special subsidiary Lion Tomoni Co., Ltd. as a workplace where people with disabilities who
are willing to work can make the most of their individuality and work with stability. The business actives of Lion Tomoni
help streamline and rationalize Group operations.
Lion Tomoni Co., Ltd.’s 32 employees with disabilities and ten instructors (as of December 31, 2022) engage in a wide varietyof operations, such as cleaning the employee cafeteria and washing laboratory ware, preparing business cards andemployee badges, and operating a stationery reuse service. Under the four promises of “safety first,” “act wholeheartedly,”“energetic greetings” and “demonstrating teamwork,” Lion Tomoni will continue to promote the hiring and professional
participation of people with disabilities.

Cafeteria cleaning
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Lion Sustainability Website 2023

Diverse Work Styles
Support Systems for Accompanying Spouses on Work Transfer
Since 2011, Lion has offered a spouse relocation support program for married couples who both work for Lion as a way of
supporting the diversifying work styles of its employees. From 2022, the program has been expanded to include employees
whose spouses work for other companies. When an employee’s spouse is transferred to another location, the employee canchoose from three options: change their work location, take a leave of absence for up to three years to accompany theirspouse, or resign from the Company with the option of being rehired within five years.

Retired Employee Re-Hiring System
Lion introduced a system for re-hiring retired employees in 2006. Under the revised system, the Company seeks to increase
the motivation of re-hired employees by providing an environment that allows them to work on terms similar to those
applying to ordinary employees. This includes re-hiring all applicants, permitting changes of duties during their contract
period and awarding performance-based bonuses. Furthermore, incorporating employee suggestions, the Company
conducts explanatory orientations about the system for employees three years before they reach the standard retirement
age as well as meetings with their superiors upon re-hiring to help them understand their new roles. In 2022, the re-hiring
rate for retirees was 82.0%.

System for Re-Hiring Former Employees

Lion has established a system to re-hire former employees who have voluntarily resigned so that they might leverage theirdiverse life and career experience and knowledge in working at Lion again.

Regionally Based Employee Program
Lion has offered a regionally based employee program since 2013. This program is aimed at securing outstanding humanresources who are contributing greatly from among Lion’s pool of temporary employees and enabling regular employees topractice diverse work styles. Under the system, the whole of Japan is divided into seven blocks, and participating
employees are guaranteed not be transferred out of the block of their choosing. These employees’ compensation andbenefits are on par with those of regular employees.
ESG Data_ Regionally Based Employee Program

Employee Data
ESG Data and Third-Party Verification

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Together with Employees

Improving Employee Health

Sustainability Material Issue 6 Improving Employee HealthApproach
Guidelines (Guidelines for Health)
Health and Productivity Management Strategy Map
Implementation Framework
Overview
Lion-Style Health Support—“GENKI” Action
MentalPhysicalAwareness
Infection Countermeasures
Lion Employee Preventive Dentistry Data
Oral Care Seminars for Corporations

Approach

When employees act on their own initiative with a high level of health awareness to acquire sound health habits, it not only
serves to maintain and improve their health, but helps them achieve personal growth and professional and personalfulfillment. This, in turn, serves to enhance corporate productivity and creativity and expand opportunities for Lion tocontribute to society through sustainable growth.

Guidelines

Lion believes that the health of employees is the management foundation underlying sound corporate growth. In line withthis belief and in pursuit of its management vision, “Becoming an advanced daily healthcare company,” the Company works
in close coordination with employees and the Lion Health Insurance Society to support the formation of healthy habits insuch areas as improving lifestyles, oral heath, mental health, cancer prevention and anti-smoking, based on the Guidelines f
or Health, with the goal of realizing healthy minds and bodies for all.

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Health and Productivity Management Strategy Map:
Mapping out the ways that the effects of health investments connect with the
management issues we seek to solve through Health and Productivity
Management* Generally, health investments correspond one-to-one to the indicators related to health investment measures and initiatives.
However, some health investments correspond to multiple indicators related to health investment measures and initiatives.
These health investments are deemed “health investments associated with various effects.”

Implementation Framework

Lion aims to promote health and vitality throughout the Company. To this end, the officer responsible for Company-wide
health and productivity management (the director of the Human Resources Development Center) oversees general healthmanagement, while the Health Support Office, the Lion Health Insurance Society, the individuals responsible for or
promoters of health and productivity management at each office and industrial health staff (industrial physicians, healthnurses, etc.) coordinate to promote organizational health management.

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Health Maintenance Promotion Committee
The officer responsible for Company-wide health and productivity management (the director of the Human Resources
Development Center), along with representatives from the Health Support Office and the Lion Health Insurance Society holdregular joint meetings as the Health Maintenance Promotion Committee to discuss Company-wide health management
issues and measures.

Health Support Offices
Health support offices have been set up at each of Lion’s 11 domestic operating sites. At these offices, industrial health staff
carries out health and productivity management operations. Each health support office coordinates with the HealthSupport Office at Lion’s headquarters to manage such operations and implement measures aimed at improving health.
The Headquarters Health Support Office formulates Company-wide health management policy, basic plans and annual
plans, and coordinates the implementation of plans and gathering of related data.

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Overview
Health Management Program—Mental, Physical and AwarenessFor ease of understanding how each initiative fits into the program as a whole, we have broken down our healthmanagement program into three categories: mental, physical and awareness (awareness of self-directed healthmanagement). In each category, we are advancing health management measures for employees tailored by age group.
Health Management Program Overview

Lion-Style Health Support—“GENKI” Action

We are implementing Lion-style health support, “GENKI” Action, to promote theformation of healthy habits. We support our employees’ autonomous efforts tocultivate their strengths regarding their health, thereby empowering them to increase
their sense of professional fulfillment and demonstrate their diverse abilities as they
strive toward becoming human resources that embody Lion's Purpose: make adifference in everyday lives by redesigning habits: ReDesign.
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Key Measures

1. Health management system, GENKI Navi
We developed GENKI Navi, a new health management system, based on the concepts of making data (such as that about
health status, countermeasures and future risk) easy to see and understand, enabling self-management (self-checks) andmaking health improvement efforts more fun. The system can be accessed using a computer or smartphone. Through thesystem, we aim to increase employees’ health awareness and foster healthy habits. In addition, from April 18, 2022, weadded a function that uses employees’ health checkup data to clearly present future health risks. The purpose of thisfunction is to utilize risk prevention results in health guidance to motivate employees to reflect on their living habits andchange their behavior.
The system includes a wide range of functions, including the following.
1) Making employee’s periodic health checkup data accessible (showing dental checkup results, changes over time, advice,etc.)2) Self-check of data from daily life (input and see weight, step count, food, temperature, blood pressure, etc.)
3) Content to encourage employees to improve their living habits (setting goals, social media functions, etc.)
4) Answering medical questionnaires (for health checkups)5) Stress level checks (self-checks)6) The ability to earn health points

2. Fostering preventive dentistry*habits

As an advanced daily healthcare company, Lion is focusing on initiatives to foster preventive dentistry habits among
employees. In terms of self-care, we are providing health guidance during dental checkups, providing individual guidance toemployees identified as high risk based on dental health questionnaires and checkup results, implementing a campaign toencourage the use of dental floss and interdental cleaning tools and providing educational videos. In terms of professionalcare, we are carrying out a campaign of subsidies for receiving professional care and recommending dentists to employees.
* An approach focused on prevention, rather than receiving treatment after cavities or other problems arise. This approach entails both
receiving professional care at a dental clinic and practicing daily self-care on an ongoing basis.

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3. Subsidy program for countermeasures to three common types of cancer*

The number of persons afflicted with and dying from cancer in Japan is steadily rising. However, advances in diagnostics
and treatment are increasingly enabling the early detection and treatment of some cancers. In light of this, separate from
employees’ regular health checkups, Lion has introduced a subsidy program for countermeasures to three common types ofcancer aimed at early detection and treatment. In particular, as cancers of the lungs, stomach and colon account for a large
portion of cancer-related deaths, Lion subsidizes the expenses of detailed screenings for these types of cancers to makethem more accessible to employees. The Company also responds to employee inquiries about consultations at medical
institutions that provide such screenings.
For its proactive initiatives, Lion was given the 2022 Award for Companies Promoting Cancer Control under the Action Plan
for Promotion of Cancer Control, which is a project commissioned by the Ministry of Health, Labour and Welfare. This is thesecond consecutive year Lion has received the award.
The 2022 Award for Companies
Promoting Cancer Control* Lung, stomach and coloncancers

Reinforced Age-Specific Cancer
Screeningfrom 2020 Onward

4. Reinforcing anti-smoking initiatives

We provide support and have created facilitative environments for employees who want to quit smoking in order to prevent
exposure to secondhand smoke in the workplace. To improve work environments, in January 2020 we banned smoking
during work hours, and in April 2020 we implemented official rules banning smoking indoors. Furthermore, for employees
deemed at high risk of chronic obstructive pulmonary disease (COPD)* based on health questionnaire results, we provided
meetings with industrial doctors, offered guidance related to quitting smoking and encouraged such employees to see a
doctor.
Employee Smoking Rate (Non-Consolidated)* A disease in which the functioning of the lungs gradually deteriorates due to tobacco use and other factors.

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The “GENKI” Report White Paper on Health
Lion has issued the “GENKI” Report, a white paper on health that visualizes employee health status as well as illness
prevention and health improvement efforts, allowing users to compare age-related data against a Company-wide average.
The “GENKI” Report is shared with the officers responsible for health and productivity management and those tasked with
its promotion at each office. Based on data furnished by Lion’s digital transformation (DX) departments, the report presents
radar charts mapping various data to illustrate how close specific offices and organizations are to improving their healthrankings. The report is intended to help each office and organization better understand its own health status and use thisdata to inform health promotion activities.

Health data for the headquarters area

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Selected under the Health & Productivity Stock Selection for the First Time
Under the Health & Productivity Stock Selection, the Lion Group has been selected from among listed companies that
implement health management as a company that implements particularly outstanding initiatives.
For seven consecutive years since 2017, Lion has been recognized as a White 500 company under the Certified Health &Productivity Management Outstanding Organizations Recognition Program. This program recognizes enterprises engaging
in outstanding efforts to promote health and productivity management based on initiatives to overcome health-related
challenges in communities or the promotion of health-conscious activities led by the Nippon Kenko Kaigi.
This year’s selection under the Health & Productivity Stock Selection is based on acclaimed initiatives that contribute to thepromotion of health among not only employees but a wider range of people. Among these initiatives were measures to raise
employees' health awareness and encourage the formation of healthy habits, such as activities addressing health issues
specific to women that evolved from a voluntary researcher-driven level to full-blown Company-wide involvement, as wellas lifestyle improvement activities for younger employees. More broadly, we were recognized for providing technologies andservices that utilize know-how and data accumulated through years of preventive dentistry in combination with the Internetof Things (IoT) and AI.
We will continue our efforts to maintain and improve the health of our employees, contributing not only to their personal
growth and the enrichment of their lives, but also to the development of our business and further corporate growth.

At the award ceremony

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MentalLion established the Mental Health Basic Policy in 2004, and continually and systematically promotes mental care for
employees based on the Guidelines for Maintaining and Improving Mental Health of Workers.

Mental Health Initiatives (Four Types of Care)(1) Self-CareStress Level Checks
Since 2006, before the amendment of the Industrial Safety and Health Act, Lion has been providing stress level checks for
employees to assist them in their own self-care. In 2019, 98.0% of all employees underwent stress level checks.
Since 2020, the COVID-19 pandemic has driven rapid changes in lifestyles and ways of working. To address the psychologicalimpact of these environmental changes, Lion conducted stress level checks twice in2020 (these checks were previously conducted once per year). Every year, a high percentage of employees undergoes thesestress level checks, and 2022 was no different at 98.8%. Employees found to have high stress levels were required to meetwith industrial health staff.
In addition, GENKI Navi creates an environment that allows employees to conduct self-checks at any time, so that they canmonitor their own stress profile and make use of it in their self-care. New employees (including mid-career hires) areprovided self-care training at their time of employment and all employees participate in training once a year.

2017
2018
2019
April 2020
November 2020
2021
2022

Stress Level Check Testing
Tested employees

2,851
3,077
3,097
3,112
3,157
3,192
3,257

Test rate

96.9%
98.9%
98.3%
98.2%
98.1%
99.5%
98.8%

Workplace Improvement Activities Leveraging Stress Level Check Data
After the results of stress level checks are compiled, each year, the officers in charge of health management at operatingsites and Lion’s headquarters provide feedback to individual workplaces. Based on analyses of workplaces’ strengths andweaknesses, this feedback is used to help create more sound work environments. The Health Support Office provides
feedback to high-risk workplaces, creating opportunities for dialogue about workplace issues and improvement measures.
Mental Health Care Education as Part of Level-Specific Training
As part of annual level-specific training, industrial health staff give lectures about the importance of mental self-care andrelated techniques.

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(2) Care via Line of Command

Lion aims to create workplaces that foster health and vitality by enhancing workplace communication and conditions.
Education about Care via Line of Command
Care via line of command refers to efforts on the part of supervisors, including employees’ direct supervisors (directly above
them in the workplace line of command), to help reduce their subordinates’ stress and consider their mental health.
Specifically, we provide training to all managers and supervisors at the time of their promotion to management level toassure that all managers and supervisors are equipped to respond naturally and provide necessary care at any time.
Support for Reinstatement of Employees on Leave Due to Mental Health Issues
When an employee returns to work after leave due to mental health difficulties, we hold a support meeting, at which theindividual’s boss, the workplace health management officer and industrial health staff coordinate to provide support. We
proactively utilize Rework* to help employees reacclimate to the workplace after their return.
* Rework: Short for “Return to Work,” this program is aimed at supporting the smooth return to work of individuals after leave due to mental
illness or disorder.

(3) Care by Internal Industrial Health Staff

At the Health Support Office, Lion’s supervising industrial physician, a psychiatrist and an industrial health nurse areavailable for consultation at any time. When responding to a request for consultation, we ensure that adequate
consideration is given to ensuring privacy so that employees can feel at ease asking for advice about issues or concerns they
may have. In line with the diversification of work styles, consultation is available not only in person, but via email, phone oronline video conference, as needed. Furthermore, we have set up a mental health help desk in an effort to direct employees
to the consultation resources they need, when they need them, in a clear manner. A career counselor offers counseling
related to individuals’ careers. The Health Support Office provides support finely calibrated to employees’ individual healthcircumstances, including providing feedback after health checkups and health consultations after stress level checks.

(4) Care by External Specialists

We maintain agreements with external institutions so that employees can easily consult with them over the phone orreceive counseling. In addition, depending on the specific circumstances, the Health Support Office may refer employees for
specialist treatment and works in coordination with such providers.

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Physical

Every year, we provide both health and dental checkups for all employees. The items covered by these checkups exceed thelegal requirements for such checkups. When an employee’s checkup results indicate that they require further examination,
we strongly encourage them to get such examination and provide individual guidance. The percentage of employees
undergoing health checkups in 2022 was 99.9%.
Health and Dental Checkup Items for Specific Needs
In-depth checkups: For employees age 40 or above. 21 legally required items + 11 additional items.
Gynecological examinations: Age-specific examination items.
Hepatitis B and C tests: For employees age 40 and above.
Prostate cancer (PSA) examinations: For men age 50 and above.
Stomach cancer (ABC) examinations: For employees age 40 and above.
Dental checkups: For all employees. Dental hygienists provide health guidance. Includes health guidance from a dental
hygienist.

Specific Health Checkups*1 and Specific Health Guidance*2 Related to Metabolic Syndrome
Lion’s Health Support Office coordinates with the Lion Health Insurance Society to implement specific health checkups andspecific health guidance related to metabolic syndrome. We strive to ensure that these serve as effective and clear
inducements to employees to improve living habits that cause lifestyle-related illnesses.
Portion of Lion Employees Subject to Specific Health Checkups and Specific Health Guidance*3 Classified as Having
Metabolic Syndrome or Pre-Metabolic Syndrome
Metabolic syndrome
Pre-metabolic syndrome
2015
13.4%
12.2%
2016
12.6%
13.1%
2017
15.0%
14.0%
2018
13.5%
14.2%
2019
13.4%
14.9%
2020
13.6%
14.7%
2021
14.3%
14.4%
2022
13.6%
12.1%

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Reference: 2020 data on specific health checkups and specific health guidance implementation from the National
Federation of Health Insurance Societies; of 1,125 health insurance societies. 15.1% of all said societies’ members wereclassified as having metabolic syndrome and 13.1% as having pre-metabolic syndrome.
*1 Health checkups to identify individuals who need specific health guidance, aimed at reducing the number of individuals who have visceralobesity (metabolic syndrome) or pre-metabolic syndrome in order to prevent lifestyle-related diseases, which are involved inapproximately 60% of deaths in Japan. Specific health checkups are conducted for all insured persons and their dependents between theages of 40 and 74.
*2 Health guidance, including providing information, helping generate motivation and offering proactive support from specialized staff(health nurses, registered dieticians, etc.) for individuals who, based on the results of specific health checkups, are at high risk ofdeveloping lifestyle-related illnesses and for whom the onset of metabolic syndrome is expected to be preventable through lifestyle
improvement.
*3 Employees ages 40 and over (who are enrolled in the Company’s health insurance).

Furthermore, in collaboration with the Lion Foundation for Dental Health (LDH), Lion has elucidated the link between gum
disease and metabolic syndrome. We will continue to reinforce initiatives aimed at the prevention of gum disease andmetabolic syndrome among employees going forward.

Proactive Encouragement and Guidance

Under the joint leadership of the Lion Health Insurance Society and the director of the Human Resources Development
Center, individuals identified as requiring specific health guidance are encouraged to receive health guidance. We strive tooffer a health guidance program that facilitates understanding of the goals of specific health guidance and what itcomprises while making it easy for individuals to take action and enjoyable for them to continue their efforts.
In 2020, as an internal collaborative initiative, we provided Lion’s Lactoferrin products and an email newsletter to
employees who signed up, supporting their lifestyle improvement efforts. Furthermore, a dedicated registered dietician
from the Lion Health Insurance Society provided nutritional guidance internally. Through these and other efforts, Lion
proactively provided support, working with professionals with abundant knowledge and experience from in and outside theCompany.

Support for Young High-Risk IndividualsWith the aim of reducing the number of people needing specific health guidance, we examined changes in weight among
our young employees. We found that the weights of 86% of male employees had increased 5% or more within the first 10
years of employment. A person’s 30s are a time of major lifestyle changes for both men and women, and inappropriate living
habits can lay the foundation for lifestyle-related illnesses.
Therefore, in 2022, we offered Lactoferrin and distributed materials effective for lifestyle improvement to raise healthawareness and support lifestyle improvements among obese employees in their 30s. According to a survey, 60% ofparticipants responded that following our actions they had since become more weight conscious, and the rate ofsatisfaction with the support offered was 78%. In 2023, in order to further increase the program’s efficacy and support its
continuation we are following up on the distribution of materials with periodic emails containing relevant information
created in collaboration with a full-time dietitian from the Lion Health Insurance Society.

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Making Healthy Behavior a Habit (Health Point Initiative)

Lion added a health point system to the 2022 GENKI Navi to help make adopting healthy habits more positive and enjoyablefor employees, even amid the restrictions implemented during the COVID-19 pandemic, a time filled with major lifestylechanges. In a post-enrollment survey, more than half of the 1,107 participants responded that they walked 1,000 more steps
per day than usual during the system’s implementation. The satisfaction rate among respondents was 73%.
We are planning to expand the initiative’s duration in 2023, making adopting health living habits even more enjoyable for allof our employees by bringing the whole Company together through friendly competition between departments and otherfun improvements.

Preventive Dentistry Program

Since the 1970s, Lion has implemented in-house dental checkups, brushing guidance, scaling and cleaning, education via
lectures and other preventive dentistry measures.
In 2002, in cooperation with the Lion Health Insurance Society and LDH, Lion launched All Lion Oral Health Activity (ALOHA),
aimed at increasing employees’ health management abilities. ALOHA is based on practicing oral health management
primarily though the provision of regular oral checkups to all employees and primary prevention as well as support toenhance employees’ self-directed health management abilities. In accordance with three-year plans, we have been
implementing a PDCA cycle for the dental health program and are currently implementing the ALOHA VII plan. The content
of dental checkups varies depending on whether the individual is receiving professional dental care, placing greater
emphasis on health guidance for those who are not in order to foster awareness of the importance of professional care.
Furthermore, we seek to increase the ratio of employees who use interdental cleaning goods and are able to effectively
implement preventive dentistry through both self-care and professional care. Our main activities are shown below.
Chairside health guidance during dental checkups
Promotional campaign to promote the use of dental floss and interdental cleaning products (distribution of merchandiseand educational videos)Information dissemination in conjunction with in-house promotional campaigns and measures
Monitoring of oral function by age group via Salivary Multi Tests
Recommending medical examinations for those at high risk of oral health problems
Oral care education for mid-career hires (videos)

A dental checkup and health guidance with adequate infection prevention measures in place

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Practicing Preventive Dentistry (Encouraging Professional Care)
Lion is proactively promoting preventive dentistry both within the Company and externally. In line with the belief that it isimportant that employees practice preventive dentistry, we offer limited-time financial incentives for receiving professionalcare to spur employees to find a primary care dental clinic where they can receive regular professional oral care.
Due to the COVID-19 pandemic, the campaign to encourage the use of professional care was suspended, but was resumed in
April 2021. We are working to communicate the importance of receiving professional care and exploring creative ways ofmotivating employees to receive such care, such as distributing original logo stickers and digital backgrounds for electronic
devices that can be used when working remotely.

Employee Food Service Committee
We regularly hold meetings of the employee food service committee to enhance the offerings at our employee cafeterias. In
consideration of employee health, we strive to offer healthy, delicious meals. Furthermore, we display information on thecalorie, sodium and sugar content of all menu items and seek ways to make meals healthier, such as offering reducedsodium soy sauce.

Supporting Cultural and Athletic Activities
Lion supports employees’ cultural and athletic activities with the aim of helping employees cultivate healthy minds andbodies and deepen friendly bonds.
Cultural clubs include Japanese tea ceremony and flower arrangement, while athletic clubs include yoga, Pilates,
basketball, tennis, soccer and baseball. A total of approximately 700 employees take part in 52 such clubs nationwide. Club
activities take place after work hours or on weekends and help employees foster healthy minds and bodies.

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Providing Sports-Related Opportunities to Employees
To boost employee health, we are implementing a variety of initiatives aimed at supporting and encouraging sportsrelated activities and have become a member of the Sport in Life Consortium. For its efforts, Lion was recertified as aSports Yell Company 2023 by the Japan Sports Agency (in Japan, “yell” refers to cheering and shouts ofencouragement).
Encouraging employees walk or bike to work
Holding walking events
Holding health discussions at Safety, Hygiene and Disaster Prevention Committee meetings
Recommending cultural and athletic activities
Sponsoring outside walking events

Creating Pleasant Work Environments
To ensure that employees can work in comfort, every two months, Lion measures indoor humidity, temperature, andconcentrations of carbon monoxide and carbon dioxide, as well as dust at its workplaces.
We also regularly take measurements related to noise and lighting to confirm that there are no problems in our work
environments.

Data Health Plan Initiatives
The government’s Japan Revitalization Strategy includes the key issue of “Extending the nation’s healthy life expectancy.” To
address this issue, as part of “developing a new system concerning the promotion of preventive care and healthmanagement,” the strategy calls for all health insurance societies to analyze such data as health insurance claims todevelop, announce, implement and evaluate effective and efficient “data health plans” in order to help maintain andimprove the health of their members.
Lion has for some time been promoting initiatives in the area of data-based healthcare in cooperation with the Lion Health
Insurance Society.
Specific health guidance is the foundation of our initiatives in this area; we provide finely tailored health guidance andencourage employees to seek care after health checkups and provide health guidance using AI-generated health risk
predictions
We have implemented a wide variety of collaborative measures, such as a walking campaign

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AwarenessBased on particular criteria, we are reinforcing specific measures designed to reflect the timing of changes in the body whileworking to improve health literacy.

Health Promotion Seminars for 50-Year-Old Employees
Since 2013, we have held the annual LIS21 Senior health promotion seminar for 50-year-old employees. To control healthrisks that rise significantly with age, bolstering self-directed health management skills is crucial. We also aim for the seminar
to serve as an opportunity for employees at the landmark age of 50 (given increasingly long lifespans) to reflect on theircircumstances and lives from multiple perspectives, including their health, work, and home life going forward, so that theycan engage with their work with a renewed sense of vigor.
Although we had planned in-person group seminars for 2020 and 2021, they were postponed due to the COVID-19 pandemic.
In 2022, we held online training that combined a seminar and a video session. There were 277 participants, a participation
rate of 98.9%. The online seminar featured lectures on topics of high interest to people in their 50s, such as health, careerand domestic life. The video session featured original content on specific health issues and measures, such as cancer
prevention, the prevention of lifestyle-related illness, preventing frailty and oral health.
The training was very well-received. According to a survey, more than 90% of respondents felt the information was concreteand easy to understand and were satisfied with the seminar, which was designed from the perspective of someone their age.

2015
2016
2017
2018
2019
2020
2021
2022

LIS21 Senior Participation
Participants

140
152
100
95
120
240*1
277*2

Participation rate

87%
76%
68%
68%
85.7%
98.9%

*1 In 2020, the seminar was held in a video viewing format through the Lion Health Insurance Society*2 Participants originally scheduled for 2021 are included in the figures for 2022
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Initiatives for Specific Women's Health Issues
Company’s researchers conscious of the issues involved with the advancement of women’s roles in the workplaceassembled and voluntarily established the Well-Being Lounge, a program to raise the level of health literacy needed to
improve one’s well-being. The Well-Being Lounge has since become a Company-wide program that is deepening our overall
understanding of health issues specific to women.
In 2022, a total of about 300 people, both men and women, participated in the program. According to a survey, satisfaction
with the program was reported by more than 90% of respondents and more than 80% reported an increase in theirknowledge and awareness of the related issues. In collaboration with other companies, we also offered seminars on dietrelated to women's health and opportunities to learn about fertility issues and infertility treatments from individuals who
have dealt with such subjects first-hand and those who support them.
In 2023, we plan to establish an external fertility and infertility treatment consultation service to promote the improvementof well-being.

Members of the Well-Being LoungeNews Release：Women's Health and Productivity Awards [Japanese]

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Lion Sustainability Website 2023

Infection Countermeasures
COVID-19 Infection Prevention
In the early stages of the pandemic, we quickly set up a taskforce to prevent the spread of COVID-19. We concretely definedsuch terms as “suspected close contact” and “suspected infection.” Applying these definitions, when an employee wassuspected of having an infection, we distributed PCR test kits to operating sites (or provided vouchers for testing off-site) to
determine whether the employee was infected as soon as possible, minimizing the period of worry and the spread of
infection. In June 2021, the taskforce swiftly made the decision to conduct workplace vaccinations. To date, we haveconducted three rounds of workplace vaccination at two vaccination sites in eastern and western Japan.

Influenza Infection Prevention
In preparation for the winter influenza season, Lion decided to bear the full cost of influenza vaccinations for employees andconducted vaccinations at its operating sites.

Lion Employee Preventive Dentistry Data
*Data on “GENKI” Action Subjects

Self-Care
Employees Who Brush Their Teeth After Lunch

Employees Who See Toothbrushing* as Highly Important* Employees who brush at least twice a day for at least three minutes

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Employees Who Use Dental Floss* Fiscal 2014 comprehensive oral care survey (women ages 20–59)

Employees Who Use Interdental Brushes* Fiscal 2014 comprehensive oral care survey (women ages 20–59)

Professional Care
Employees Who Received Professional Care at a Dental Clinic During the Year** Employees who went for regular cleanings at dental clinics during the year (excludes employees undergoing treatment)

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Employee Oral Health Data
Proportion of Employees Suffering from Gum Disease

Average Number of Cavities Per Person* 2016 Odontopathy Survey (Ministry of Health, Labour and Welfare) Ages 20–59

Average Number of Teeth Removed Per Person* 2016 Odontopathy Survey (Ministry of Health, Labour and Welfare) Ages 20–59

Oral Care Seminars for Corporations

In order to promote preventive dentistry, we offer oral care seminars for outside companies in addition to our own.
Click here for more details. [Japanese]

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Lion Sustainability Website 2023

Together with Employees

Enhancing the Occupational Safety Management System
Sustainability Material Issue ７ Enhancing the Occupational Safety
Management System
ApproachEstablishment of the Safety, Health and Disaster Prevention Policy
Implementation Framework
Emergency Response
Initiatives (Facility Safety/Occupational Safety)

Approach

We are taking steps to enhance our occupational safety and health management system throughout the Lion Group.
Driven by the fundamental principle that safety is its absolute top priority, Lion has added disaster prevention items to the
Occupational Safety and Health Management System (OSHMS)* based on the guidelines of Japan’s Ministry of Health,Labour and Welfare to establish a unique Safety, Hygiene and Disaster Prevention Management System. Since 2009, we haveoperated this system at all domestic Group companies, and since 2012 we have included internal audits in our efforts toimprove the system’s effectiveness. In addition, since 2014 we have been holding the Safety, Hygiene and Disaster
Prevention Meeting (originally launched in 1992 as the Environmental Security Conference). We work in accordance with
Lion’s unique OSHMS to reduce potential hazards and risks, continuously maintain work environments, create safer
workplace environments and build related systems.
* A system for the systematic and organized operation and management of health and safety activities.

Establishment of the Safety, Health and Disaster Prevention Policy（Occupational
Health and Safety Policy）
Lion has established the AL Safety, Health, and Disaster Prevention Policy to define our commitment to ensuring the safety
and health of all employees of the Lion Group and establishing a comfortable and pleasant work environment. This policy
applies to all employees of domestic Group companies and is reviewed and updated every January.

Implementation Framework

Twice a year, the Company holds the Safety, Hygiene and Disaster Prevention Meeting. Chaired by a member of top
management (Director Fumitomo Noritake), the meetings deliberate on Company-wide measures to ensure facility safety
and occupational safety (including work environment improvement) as well as hygiene (health problem prevention andmental health maintenance), and disaster prevention (emergency response) measures and coordinate ongoing initiatives
aimed at thoroughly eradicating risk.

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Each operating site and domestic Group company has established a Safety, Health and Disaster Prevention Committee
based on the Industrial Safety and Health Act and while effectively utilizing this committee, reflects the opinions of all
employees within each operating site to resolve issues, including problems specific to each site.
Our domestic companies actively support overseas Group companies in their safety, health and disaster prevention
activities. In 2018, we established a Safety and Disaster Prevention Promotion Department directly below the managementlevel, further strengthening the Lion Group’s occupational health, safety and disaster prevention management system.

Top Safety Audits
Lion implements top safety audits of domestic production division plants, with the chair of the Safety, Health and Disaster
Prevention Meeting serving as the responsible officer. These audits, conducted from an objective standpoint, mainly
examine systematically whether appropriate mechanisms for safety and disaster prevention are in place, whether Lion’s
Safety, Health and Disaster Management System is being operated properly, and whether the level of safety and disastermanagement is improving. By providing guidance and suggestions related to eliminating accidents and disasters throughtop safety audits, Lion works to further increase the safety of each plant and create environments in which employees canwork with peace of mind and safety.

Top safety audits at the Akashi Plant
led by Meeting Chairman Noritake (2022)

Emergency Response

The Company has created detailed manuals and plans of action on how to respond in the event of natural disasters, such aslarge-scale earthquakes. In addition to these plans, which differ depending on the severity and scale of the disaster as wellas the extent of damage incurred, the Company conducts Company-wide and individual disaster drills at each operatingsite.
For larger disasters, a disaster response headquarters has been established to take action. A remote disaster response
headquarters has also been established in light of the rising use of remote work in the wake of the COVID-19 pandemic aswell as the possibility of a disaster occurring overnight or on a holiday and the challenges of maintaining a facility with all
relevant members physically in attendance. Accordingly, we have been conducting joint disaster prevention drills andremote disaster response headquarters activities since 2020.
We will further upgrade our disaster response system and continue to reinforce our disaster prevention activities in
anticipation of an increasing frequency and severity of natural disasters and the further diversification of work styles.

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Initiatives (Facility Safety/Occupational Safety)
Facility Safety
In 2022, one abnormality*1, a leak, occurred just as it had in 2021. While equipment failure was partially to blame, it was also
due in part to human error resulting in incorrect equipment settings. The cause has been investigated by both the head
office and the affected department, and corrective action has been taken, with all production plants making improvements
based on investigations of similar problems.
As part of our ongoing facility safety initiatives, we utilize information on plant accidents that have occurred at othercompanies to strengthen our safety management and maintain the skills, techniques and awareness of our operators.
Serious types of accidents that occur within facilities that handle dangerous substances include fires/explosions and leaks.
To prevent these, since 2016, we have provided ongoing basic education on static electricity, which can ignite fires, as wellas periodic education at plants about corrosion, the main cause of leaks, to enhance awareness and knowledge.
In addition, to further enhance corrosion prevention-related efforts and elucidate the causes of facility corrosion issues atplants, we engage in technological exchanges with specialized outside institutions.
Furthermore, we implement level-specific education for facility operators to foster awareness and knowledge regarding
change management*2 as part of efforts to reinforce management of facility safety.
To address facility aging, we designate standards for routine inspections and maintenance by degree of importance andcarry them out accordingly.
Going forward, we will continue working to reinforce technological capabilities related to facility safety, including
systematic human resource development, from a medium- to long-term perspective.
*1 Fires, explosions, leaks, etc.
*2 Management activities that prevent risks associated with changes in facilities or operating conditions.

2018

0

2019

Facility Abnormalities
2020
0
0

328

2021

1

2022

1

Lion Sustainability Website 2023

Occupational Safety
In 2022, the number of labor-related accidents for the domestic Group was 14, excluding cases that occurred duringcommutes to work (of these, five accidents led to lost work time). Analysis of the causes of these accidents categorized themas follows: five falls, five collisions, three cuts or punctures and one instance of heatstroke. The main cause of these
accidents appeared to be a lack of caution (such as taking shortcuts or deviating from rules) attributable to employees’
overfamiliarity with operations or the carelessness of unskilled workers. When occupational accidents occur, thedepartment in which the accident took place investigates the cause and takes measures to prevent recurrence, and the
Safety and Disaster Prevention Department ensures that corrective actions are taken and that the entire Company is awareof the situation.
To prevent occupational accidents, it is crucial to enhance our safety management system and heighten every members’
awareness of occupational safety. In addition to safety awareness education via Company-wide internal e-learning andimplementing risk simulation training using conventional machinery, Lion uses digital technology to provide hazard
sensitivity training, such as VR risk simulation training, at our plants and research institutes.
To reinforce safety culture, we also hold safety training development programs for managers and key persons in theworkplace, including Plant Top Safety Training and Workplace Safety Training for Key Persons at all production division
plants.

Participation in the 2022 Company-wide Internal e-learning Course
Eligible employees
Participation rate
4,306

97.8％

Employees who Participated in Risk Simulation Training (Safety Training) in 2021 (Internal education)
Hirai
OdawaraOdawaraChiba Plant
Osaka
Plant
Akashi
Plant
ResearchResearch
Total
Plant
CenterCenter
81

127

29

78

329

134

68

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Lion Sustainability Website 2023

Risk simulation training utilizing on-site machinery is implemented at each plant

Risk simulation training utilizing VR technology (Second left: Chiba Plant; right, at a research center in Hirai)

Workplace Safety Training for Key
Persons

Plant Top
SafetyTraining

Workplace
SafetyTraining
for Key
Persons
Participants in the remote
Workplace Safety Level
Improvement Training for Key
Persons

Targeting plantmanagers and key
persons in

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Occupational Accidents Incidents
Production Division
Occupational Accident Frequency*

Occupational Accidents** Excludes accidents that occurred during commutes to work ＊2 Rate of accidents leading to death, lost work time of one
day or more, or loss of bodily function without loss of work time
＊3 Third-party verification

Production Division
Occupational Accident Severity Rate** Severity rate: Lost work days / Total work hours (thousands of hours)

Cumulative Accident-Free Work Hours at the 2022 Year-End (Thousands of Hours)
Research and development
Production divisions
divisions
Hirai
Odawara
Chiba
OdawaraOsaka
Akashi
6,251
4,503
185
1,977
534

331

2,845

Lion Sustainability Website 2023

Employee (Lion
Corporation)
Employee(Domestic Group
Companies)

Number of fatalities due to occupational accidents*5
2018
2019
2020
2021

2022

0

0

0

0

0*3

0

0

0

0

1*3

*5 Including dispatched employees and part-time employees＊3 Third-party verification

Global Initiatives

In 2022, representatives from the Safety and Disaster Prevention Department and overseas managerial divisions visited PT.
Lion Wings (Indonesia) to provide direct guidance on the improvement of insecure areas and disaster prevention training.
Due to the COVID-19 pandemic, we had been striving to provide this and other overseas Group companies with timely advice
and guidance through remote meetings and internal e-mails. Going forward, we will continue to provide guidance andsupport according to the situation at each company and strive to reinforce the Lion Group's safety, health and disasterprevention systems.
Overseas companies are also continuing to strengthen hygiene protocols (temperature checks, hand washing, disinfection,
and wearing masks) aimed at preventing COVID-19 infection, which is having a synergistic effect with occupational safetymeasures.

An example of pointing andcalling in Indonesia

A disaster drill in Indonesia

AL Safety Exchange Conference

To strengthen the safety, health and disaster prevention systems at All Lion (AL), we hold a safety exchange conference thatbrings together safety managers from overseas and domestic production division plants. Although the 2022 conference wasalso held remotely due to COVID-19, a total of 64 participants, 27 from overseas and 37 from Japan, exchanged opinions andinformation on safety and disaster management and the challenges they face. We are working to strengthen cooperation at
AL and to improve the level of safety throughout the Group by, for example, introducing best practices at our domestic
plants. We will continue to hold regular meetings to improve our safety, health and disaster prevention activities, whileworking to create a safe and secure work environment for the entire Group.

Participating Overseas Group Companies

Lion Corporation (Thailand) Ltd.
Southern Lion Sdn. Bhd.
PT. Lion Wings
Lion Kallol Limited
Lion Corporation (Korea)
Lion Daily Necessities Chemicals (Qingdao) Co., Ltd.
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Together with Employees

Labor-Management Relations
Promoting Amicable Labor-Management Relations
Labor-Management Relations Data

The Lion Workers’ Union

Promoting Amicable Labor-Management Relations
Approach

Lion executes labor agreements with the Lion Workers’ Union to promote sound labor-management relations based on
mutual understanding and trust. As it does so, the Company adheres to the Lion Group Charter for Corporate Behavior,
which is based on an understanding of the social mission and responsibilities of the Company. Thus, in cooperation with its
workers union, the Company works to grow its business and maintain and improve the working conditions of union
members.
The agreements provide that: the Company shall recognize the freedom of union members to engage in lawful union
activities; the Company shall not treat union members disadvantageously by reason thereof; and the Company and theunion shall engage in labor-management meetings on a regular basis to consult with each other as equals.
Operating under a union shop agreement,* Lion endeavors to build amicable labor-management relations, in which
employees and management proactively conduct such activities as reporting on business conditions and exchanging
opinions about the working environment at labor-management meetings. At overseas Group companies, we actively
maintain communication between employees and management in order to create a better work environment through thelabor-management meetings and strive to establish and maintain sound labor-management relationships.
* A labor agreement in which workers are employed by a company on condition of becoming a member of a specific labor union.

A hybrid online/in-person labor-management meeting

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The Lion Workers’ Union
Approach
The mission of the Lion Workers’ Union is to pursue the happiness and well-being of its members. To that end, the union
seeks to maintain and improve the quality of its members’ work environments and standards of living and to contribute to
the independent growth of each individual to ensure a secure future. Through its activities, the union aims to increase theprofessional satisfaction of its members, in turn contributing to the development and growth of the Company. To fulfill its
mission and principles, the Lion Workers’ Union has established a medium- to long-term vision that it has been
implementing since August 2015.

Lion Corporation (Korea) Receives the Prime Minister’s Award for Labor-Management Culture
The Labor-Management Culture award is given by the government of South Korea (the Ministry of Employment and Labor)
to companies that have built and firmly established cooperative labor-management relations. It is one of the highest awards
in the field of labor in South Korea.
Lion Corporation (Korea) (“LCK”) received the Prime Minister’s Award for Labor-Management Culture in 2017 in recognitionof its initiatives aimed at building good labor-management relations.
The main initiatives of LCK recognized by the prize were as follows.
Held labor-management talks four times a year to discuss work environments and implemented approximately 60% of the
improvements suggested at these talks
Treated non-regular employees (such as temporary and contract employees) on par with regular employees in terms of
employee benefits and opportunities to participate in events
With “fulfilling a spirit of love” and “people-centered management” as the foundations of its personnel policy, gave nonregular employees demonstrating excellent work attitudes and abilities priority when filling regular employee positions
Designated a monthly volunteer day, with employees actively participating in social contribution activities
Activities at Lion Corporation (Korea)

Labor-Management Relations Data
Ratio of companies with anindependent trade union or collective
bargaining agreements

Scope

2020

Lion Group

Lion Corporation
Ratio of employees represented by an (including
independent trade unions or covered by employees on
loan)collective bargaining agreements
Lion Group

2021

2022

86.4%

86.4％

86.4％

66.2%

77.9％

65.9％

73.4%

75.1％

72.9％

Going forward, we will continue to advance initiatives aimed at building better labor-management relations.

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Respect for Human Rights

Respect for Human Rights

Sustainability Material Issue Respecting Human Rights

Basic Approach

The Lion Group implements various measures in accordance with its purpose of making a difference in everyday lives byredesigning habits: ReDesign. One such measure is the Charter for Corporate Behavior, which states that “We shall respecthuman rights ... observing both the spirit as well as the letter of all applicable laws and international rules.” Another is the Behavioral Guidelines, which state that the Group will not permit child labor or forced or coerced labor, will provide equal
employment opportunities and treat employees fairly, and will take an active interest in the human rights practices of its
suppliers.
Lion has also declared its support for and adherence to the International Bill of Human Rights (the Universal Declaration of
Human Rights, the International Covenant on Economic, Social and Cultural Rights and the International Covenant on Civil
and Political Rights), which stipulates the fundamental human rights of all people in the world, as well as the Ten Principlesof the United Nations Global Compact, the ILO Declaration on Fundamental Principles and Rights at Work and the Children’s
Rights and Business Principles.
Respect for human rights is indispensable to the pursuit of happiness and a higher quality of life. Lion recognizes that it has
a responsibility as a company to affirm diversity, including that of race, religion, gender, sexual orientation, age, nationalityand disability, and to fully respect all human rights. Furthermore, it recognizes that doing so strengthens its businessfoundation.

Human Rights Policy

In 2019, based on the framework of the United Nations Guiding Principles on Business and Human Rights , the Lion Groupestablished the LION Human Rights Policy to further clarify its stance on human rights abuses as well as its global efforts inthis area. Since then, Lion has periodically reviewed its human rights policy to ensure the strength of its efforts.
In 2023, with the approval of the Board of Directors, we amended the LION Human Rights Policy in light of social conditions
surrounding business and human rights as well as the status of the Group's human rights due diligence* efforts, taking into
careful consideration the elements necessary to the policy going forward.
The amended policy clearly stipulates, in great detail, a management system that emphasizes respecting human rights(human rights due diligence) and remedies to violations (internal and external whistle-blowing system) in addition to otherrelated matters. The revised policy has been translated into the languages of the countries and area in which Lion does
business and disclosed to stakeholders involved in the Group's business activities via the websites of Group affiliatedcompanies and other means.
The Human Rights Policy applies to all executives and employees of the Lion Group. Moreover, the Group’s business
partners and suppliers are required to support and respect the policy. The Human Rights Policy also stipulates that in theevent of a conflict between internationally recognized human rights and national or local laws and regulations, the Groupwill seek to ensure that internationally recognized human rights principles are respected.
* Measures that companies must take to avoid violating human rights and to provide relief to victims of violations.

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Implementation Framework

Initiatives regarding human rights are seen by the S Subcommittee (Social Environment). When called for, these meetings
report matters to the Senior Executive Committee or refers or presents them to the Executive Committee and the Board of
Directors. Participants in these investigative meetings mainly comprise representatives of relevant divisions, such as the
Corporate Planning Department, Legal Department, Human Resources Development Center, Purchasing Headquarters,
Overseas Strategic Planning Department and Sustainability Promotion Department. The officer responsible for the meetings
is also responsible for the S Subcommittee, which operates under the Sustainability Promotion Council, which is, in turn,overseen by the Sustainability Promotion Department.

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

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Respect for Human Rights

Measures to Prevent Human Rights Abuse（Human Rights Due
Diligence）
Sustainability Material Issue Respecting Human Rights

Human Rights Due Diligence
Human Rights Impact Assessment
Implementation of Prevention, Mitigation and Corrective Measures
Monitoring
Communication (Stakeholder Engagement)
Initiatives at Overseas Group Companies
Initiatives to Prevent Human Rights Violations along the Value Chain

Human Rights Due Diligence

The Lion Group is committed to taking responsibility for identifying, preventing, mitigating and addressing negative humanrights impacts caused or contributed to by its business activities. To do so, we implement human rights due diligence*
through the following process based on the UN Guiding Principles on Business and Human Rights and reflecting the adviceof external experts.
Recognizing that human rights risks may change as the Lion Group's business and operating conditions evolve, we will seek
better ways to enhance the effectiveness of our efforts, such as by regularly reviewing the human rights issues anticipated in
the Group.

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

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Human Rights Impact Assessment
Overview of Anticipated Human Rights Risks in the Group's Business Activities
The Group’s main business encompasses the development, manufacture and sale of household products. Among these, wenotably handle many cleaning products, including laundry detergents. The surfactants that comprise the washingingredients of such products are derived from palm oil, palm kernel oil and their derivatives, which are renewable andcarbon-neutral raw materials. The main production areas for palm oil are Malaysia and Indonesia, and we recognize thatthese countries and areas are not only high risk regarding human rights, but also face environmental, human rights andsustainable procurement issues, such as deforestation due to illegal land clearing. Specifically, we must be vigilant withregard to labor and environmental risks such as overwork for palm plantation workers, the use of child labor and smoke
damage from illegal slash-and-burn forest clearing, supply risks related to raw materials for Lion products, and reputation
risks from various stakeholders due to the use of unsustainable raw materials.
In addition, for household products, we use many packaging materials (paper and pulp), including individual packaging andcardboard boxes for shipping. Therefore, potential supply risks and reputation risks are anticipated due to the use of woodchips—the raw material of paper and pulp—for which sufficient forest management cannot be assured.
In the manufacturing process, we are supplied with many types of raw materials from a wide array of material
manufacturers and work with a large number of production contractors. Therefore, we assume transactions with suppliers
whose sustainability activities are insufficiently advanced present potential raw material and product supply risks andreputation risks.
Furthermore, with regard to planning, manufacturing and selling household products, we have in place multiple
departments throughout the entire value chain, including procurement, research, planning, production, sales andadministration and as of December 31, 2022, consisting of over 7,500 consolidated employees. The content of its business
operations is finely segmented. As such, human rights violations could occur, including race and gender discrimination andharassment as well as conflict between employees regarding work content and employee benefits. This could hinder thesmooth execution of business.

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Lion Sustainability Website 2023

Identification of Human Rights Issues Anticipated in Lion's Business Activities
In order to further clarify the potential and actual human rights risks that may occur in the value chain in the countries andareas where the Group operates, we have identified as relevant to the Group's business activities the following human rights
issues* from the International Bill of Human Rights, the Ten Principles of the UN Global Compact, the ILO Declaration on
Fundamental Principles and Rights at Work, the Children’s Rights and Business Principles and other international standards
related to human rights.
In identifying human rights issues, we have referred to the social context surrounding business operations and humanrights, the United Nations Environment Programme Finance Initiative (UNEP) and guidelines on human rights formulated by
the Japan Business Federation.
* Identified Human Rights Issues
Forced and coerced labor; freedom of movement and residence; child labor; right to an education; rights of young workers; freedom to formand join trade unions; equal pay for equal work; discrimination in hiring; discrimination in conditions of employment; discrimination inopportunities and evaluations; protection of motherhood and childhood; harassment; freedom of thought and religion; overwork andexcessive working hours; right to rest and leisure; just compensation and living wages; freedom of choice of employment and protection
against unemployment; right to safe and healthy working conditions; right to a decent standard of living and health; right to social security;
right to privacy; impacts on the lives of local residents; access to water; environmental management; consumer safety and health

The Lion Group's Human Rights Impact Assessment and Identification of Priorities
The Lion Group identified certain human rights issues as potential challenges to its business activities through anassessment of potential and actual impacts on our stakeholders: our employees and temporary employees; business
partners including third-party contractors; suppliers; communities including indigenous peoples; and consumers.
Based on the United Nations Guiding Principles Framework and other guidelines on human rights, we assessed the scale ofhuman rights violations, the scope of those violations, the possibility of resolution and the likelihood of occurrence. Thistask was undertaken mainly by persons responsible for the relevant departments as well as an investigative committee onhuman rights and external experts, who after making a comprehensive judgment, created a risk map that identified
outstanding human rights issues which are priorities for the Company.

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Implementation of Prevention, Mitigation and Corrective Measures

To prevent, mitigate and remedy negative human rights impacts, priorities identified by the human rights impact
assessment, the following actions will be taken.
Priority Issues for Rights Holders

Measures to prevent, mitigate and correct negative impacts
Promote procurement of third-party certified raw materials (RSPO andFSC certified products)
Promotion of Sedex membership among major suppliers
Promote implementation of self-checks based on the Lion Group Supplier
CSR Guidelines
Suppliers using forced labor, child labor,
Add human rights clauses to the memorandum of the Lion Group Supplier
the rights of young workers, overwork
and excessive working hours, the right to CSR Guidelines
enjoy safe and healthy working
To prevent, mitigate and correct the negative impacts of such violations asconditions, freedom of residence andsuppliers using forced labor, we will promote the procurement of RSPO andrelocation, the right to education,
FSC certified products, Sedex membership of major companies and Lion
freedom of work and employment
Group Supplier CSR Guidelines self-checks. We will also add the Lion Human
security
Rights Policy, the International Bill of Human Rights, and the ILO
Declaration on Fundamental Principles and Rights at Work to thememorandum of the Lion Group Supplier CSR Guidelines and require thatthe human rights policy be endorsed and followed by suppliers as well.
Addition of individual environment-related questions to the Lion Group
Supplier CSR Guidelines self-check
Conduct interviews with suppliers with low self-check scores
To prevent, mitigate and correct such negative impacts as lack of access to
Community access to clean water
resources, impact on local livelihoods
water resources in communities of local residents living near supplier bases,
and environmental management
we will add questions regarding environmental management in thesubrecipient self-check to ascertain the status of specific initiatives for thecommunity. In addition, we will encourage suppliers with low scores to takecorrective action by conducting additional interviews.
Ensure that all employees are familiar with the Lion Group Charter ofCorporate Behavior and the Lion Human Rights Policy
Raise awareness of human rights among employees through e-learningand training programs
Overwork, excessive working hours and To prevent, mitigate and correct the negative effects of overwork andexcessive working hours at our business partners, we are working tointernal employee harassment among
our business partners
disseminate and establish the Lion Group Charter of Corporate Behavior andthe Lion Human Rights Policy through e-learning and training programs forour employees. We will also appropriately disseminate information
regarding the Lion Human Rights Policy and AL Heart Hotline available
through avenues such as the Company's website to our business partners.
Strengthening of information security measures
Consumers’ right to privacy
To prevent and reduce the risk of personal information leaks and thereby
protect consumers’ right to privacy, we have established policies and340

Lion Sustainability Website 2023

Priority Issues for Rights Holders

Measures to prevent, mitigate and correct negative impacts
regulations such as the Personal Information Management Regulations, theBasic Policy of Our Information Management, the Information Management
Regulations and the Information Security Regulations in accordance with
the Act on the Protection of Personal Information.
We also implement annual e-learning programs on information security andinformation management systems as part of employee education, andstrengthen information security measures, including personal information
protection at overseas affiliates, in accordance with laws and regulations.

Monitoring

Each preventive, mitigating and corrective measure is assigned a qualitative or quantitative indicator and the investigative
committee on human rights regularly monitors the progress of each measure, reporting to the person responsible for the
relevant department while tracking and evaluating their efficacy.

Communication (Stakeholder Engagement)
External Disclosure

The status of human rights initiatives, etc. will be published on the Company's website as necessary.

Education, Dialogue
The Company implements annual e-learning training for all domestic employees (including part-time employees) to ensurethat the Lion Group Charter of Corporate Behavior and the Lion Human Rights Policy are widely understood and firmly
established.
In addition, every year we conduct a Compliance Awareness Survey for all domestic employees (including part-time
employees) to quantitatively and qualitatively assess their awareness of compliance, including with regard to human rights
and workplace behavior, while providing feedback to each department on the results to raise employee awareness andcreate a better environment.
In 2022, in promoting human rights due diligence, we held study sessions and exchanged opinions on business and humanrights with directors, Audit & Supervisory Board members, executive officers, managers of divisions with human rights
jurisdiction and external experts to deepen understanding of the issues.

Participation in External Initiatives on Human Rights
The Group also participates in such external initiatives as workshops held by the Human Rights Due Diligence (HRDD)
Subcommittee of the Global Compact Network Japan (GCNJ) to promote understanding of social conditions surrounding
human rights. The Japan Cosmetic Industry Association (JCIA), to which we belong, has formulated Sustainability
Guidelines and, through a social issues subcommittee, held a seminar for its members on respect for human rights andgender equality in 2023.

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Lion Sustainability Website 2023

Access to Relief
The Group has established the AL (All Lion) Heart Hotline, an internal and external whistle-blowing system, as a grievancemechanism to manage complaints about transgressions of business ethics, particularly those involving human rights.
Through this system, whistleblowers can be stakeholders from outside the Group, like business partners. The privacy ofwhistleblowers and informants is safeguarded and secrecy is assured for any investigations. Aside from anonymous reports,
etc., all instances are also relayed to all informants.

Initiatives at Overseas Group Companies
Risk Assessment in the Lion GroupWe conduct interviews with the heads of eight overseas Group companies on issues regarding human rights that are
assumed to be incorporated into their business activities. During those hearings the Company uses the Sustainability Status
Sharing Sheet, which with the help of external experts, identifies the issues that need to be considered in the countries andareas where we operate with respect to key sustainability issues as a means of ascertaining the status of prevention,
mitigation and corrective measures and responses, as well as monitoring the progress of such measures and responses.

Risk Assessment of Suppliers
For suppliers that conduct business with our overseas affiliates, we implement self-checks based on the Lion Group Supplier
CSR Guidelines to assess the impact of suppliers on matters related to the Group's Procurement Policy, including humanrights and labor.

Initiatives to Prevent Human Rights Violations along the Value Chain

The Group is taking the following steps to reduce the risk of potential human rights violations along various value chains
involving the procurement of raw materials, activities at the Company and use by consumers.

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Lion Sustainability Website 2023

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

343

Lion Sustainability Website 2023

Initiatives in Raw Materials Procurement
The Lion Group has clarified its stance on sustainability, including legal compliance, environmental conservation andrespect for human rights in its Procurement Policies as part of its efforts to prevent human rights violations in raw material
procurement. The Group is also evolving its efforts with its suppliers.
We are also promoting the sustainable procurement of palm oil, our main plant-based raw material, as we recognize theimportance of such efforts.

(1) Raw Materials

Prevention and Mitigation Measures

Targets and Progress in 2022
Target: 100% procurement of RSPO-certified materials
Progress: 99% of key raw materials are RSPO-certified(scope: consumer products sold in Japan)
Target: 100% procurement of FSC-certified materials
Progress: 65% of materials are FSC-certified (percentage
of product types sold in Japan); we are promoting theuse of paper certified by the FSC or the Programme for
the Endorsement of Forest Certification (PEFC) andrecycled paper as copy paper and in office supplies
Target: Procurement from suppliers that support efforts
aimed at zero deforestation: All suppliers
Progress: 48%. 43% of suppliers of palm oil and relatedmaterials and 53% of suppliers of paper and pulp (scope:
raw material suppliers for the Lion Group in Japan)

Procure third party-certified raw materials → Procure
products certified by the Roundtable on Sustainable Palm
Oil (RSPO) and Forest Stewardship Council (FSC)
Promote trade with suppliers with the ability to resolve
social and environmental problems that may occur in the
supply chain → Suppliers that support efforts aimed atzero deforestation(2) Suppliers
Prevention and Mitigation Measures

Progress in 2022
Implementing self-checks based on the Lion Group
Supplier CSR Guidelines for suppliers of Lion, domestic
Group companies, Lion Corporation Korea, Qingdao Lionand Southern Lion Sdn. Bhd.
Risk assessment through Sedex: 18 companies
Set standards for high-risk suppliers for self-checks basedon the Lion Group Supplier CSR Guidelines

Regular risk evaluations of the sustainability activities ofsuppliers
Identification of high-risk suppliers
Audits of high-risk suppliers and formulation of
improvement plans

High-risk suppliers were not applicable* As of March 2023

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Lion Sustainability Website 2023

Initiatives in Customer Use
As part of our efforts to ensure that our customers can use our products safely and with peace of mind, we have establisheda Product Management System, a set of rules that defines our business processes and quality assurance at each stage of
product development. In addition to complying with the Act on Pharmaceuticals and Medical Devices, the Act against
Unjustifiable Premiums and Misleading Representations, the Health Promotion Act, and other related laws and regulations,
we have established a representation drafting manual and conduct accurate and moderate advertising and promotions that
do not cause misunderstanding or discomfort, taking the customer's viewpoint into consideration.
In countries and areas where many Muslims live, such as Malaysia and Indonesia, we are working to obtain Halalcertification* so that local consumers can use our products with peace of mind.
* Certification under systems for labeling products that have cleared halal certification standards with a halal-certified mark. A halal
certificate issued by a certifying body officially recognized by the country’s halal certification authority is required to sell products with ahalal-certified mark.

Examples of Halal-Certified Products

Systema toothpaste sold inIndonesia
Shokubutsu body wash sold in
Malaysia

An Indonesian halal certificate

345

A Malaysian halal certificate

Lion Sustainability Website 2023

Integrated Report & Sustainability
Integrated Report 2023
Lion Sustainability Website 2022 ＜PDF＞
Back Numbers
Lion’s Sustainability: SDG-Related Initiatives
Lion Sustainability Communication Book [Japanese]
Lion Eco Pamphlet [Japanese]“Hygiene and Health Care in Times of Disaster”book [Japanese]

Integrated Report 2023
Download All Pages(7.78MB)

Contents

Our Purpose

Corporate Philosophy
Lion at a Glance
Creating Habits and Achieving Business Growth
Value Creation Process
Top-Priority Sustainability Material Issues

Our Strategy

Message from the Chairman
Message from the President
Message from the Director Responsible for FinanceMedium-term Management Plan
Accelerate Growth in Four Fields of Value Creation
Business Development Aimed at the Evolution and Expansion of Habit Redesign
Oral Health
Infection Control
Smart Housework
Expansion of the Overseas BusinessResearch and Development
Intellectual Property
Digital Transformation (DX)
Supply Chain Management
Human Resource Development
Message from the Director Responsible for Sustainability
Sustainability: Approach and Management
Initiatives to Address the Sustainability Material Issues
Disclosure Based on the TCFD Recommendations

Corporate Governance

Messages from External Directors
Corporate GovernanceCompliance
Risk Management
Leadership Team
346

Lion Sustainability Website 2023

Performance/Data

Results by Business Segment
Consumer Products Business (Japan)
Overseas BusinessIndustrial Products Business
Financial and Non-Financial Highlights
Key Financial Data
Key Non-financial Data
External Evaluations and Participation in External Organizations
Corporate Overview and Stock Information

Lion Sustainability Website＜PDF＞

Download All Pages ( . MB)

Selected Pages

Back Number

Lion Sustainability Website

Contents ( . MB)
Message from Management ( . MB)
Lion's Sustainability ( . MB)
Lion’s SDG-Related Initiatives ( . MB)
Creating Healthy Living Habits ( . MB)
Together with the Environment ( . MB)
Ensuring Product Safety and Reliability ( . MB)
Together with Supply Chains ( . MB)
Together with Employees ( . MB)
Respect for Human Rights ( . MB)
Integrated Report & Sustainability ( . MB)
Editorial Policy and Guideline Reference Tables ( . MB)＜PDF＞ ( . MB)

Back Numbers
Integrated Report 2022 (10.0MB)
Subject Period: January 1, 2021 to December 31, 2021
Integrated Report 2021 (10.3MB)
Subject Period: January 1, 2020 to December 31, 2020
Integrated Report 2020 Sustainability (6.3MB)
Subject Period: January 1, 2019 to December 31, 2019
Sustainability Report 2019 Full Book (8.4MB)
Subject Period: January 1, 2018 to December 31, 2018
Sustainability Report 2018 Full Book (10MB)
Subject Period: January 1, 2017 to December 31, 2017
CSR Report 2017 Full Book (10.6MB)
Subject Period: January 1, 2016 to December 31, 2016
347

Lion Sustainability Website 2023

CSR Report 2016 Full Book (16.7MB)
Subject Period: January 1, 2015 to December 31, 2015
CSR Report 2015 Full Book (13.3MB)
Subject Period: January 1, 2014 to December 31, 2014
CSR Report 2014 Full Book (8.6MB)
Subject Period: January 1, 2013 to December 31, 2013
CSR Report 2013 Full Book (8.6MB)
Subject Period: January 1, 2012 to December 31, 2012
CSR Report 2012 Full Book (10.8MB)
Subject Period: January 1, 2011 to December 31, 2011
CSR Report 2011 Full Book (11.9MB)
Subject Period: January 1, 2010 to December 31, 2010
CSR Report 2010 Full Book (14.1MB)
Subject Period: January 1, 2009 to December 31, 2009
CSR Report 2009 Full Book (3.7MB)
Subject Period: January 1, 2008 to December 31, 2008
CSR Report 2008 Full Book (3.1MB)
Subject Period: January 1, 2007 to December 31, 2007

Lion’s Sustainability: SDG-Related Initiatives
2023

A -size LION's SUSTAINABILITY (for viewing) [Japanese] ( . MB)
A -size LION's SUSTAINABILITY (for printing) [Japanese] ( . MB)*Click URLs in the PDF to jump to related videos and web pages.

Back Number

Lion’s Sustainability: SDG-Related Initiatives( . MB)

Lion’s Sustainability: SDG-Related Initiatives( . MB)

Back Number

Lion Sustainability Communication Booklet“Foundation of Daily Life: In Numbers”
Lion Sustainability Communication Booklet [Japanese] (PDF: 4.2MB)

348

Lion Sustainability Website 2023

Lion Eco Pamphlet

This pamphlet uses graphs and illustrations to explain Lion’s environmental initiatives.
Lion Eco Pamphlet [Japanese] (PDF: 5.0MB)“Hygiene and Health Care in Times of Disaster”bookThis PDF offers information on hygiene and health care amid disasters.The PDF explains the importance of hand cleanlinesscare and oral care in times of disaster and provides helpful advice on preparing for emergencies and food safety in disastersituations.
Information for families on disaster preparedness and caring for young children, the elderly and people with disabilities inthe event of a disaster is also included.
Six-page version: Print and fold at the center. [Japanese]

349

Lion Sustainability Website 2023

Editorial Policy and Guideline Reference Tables
Editorial Policy

Since 2011, we have systematized our initiatives for sustainability in accordance with ISO 26000, an international standard
concerning corporate social responsibility. Our reporting is structured to reflect this.
Lion Integrated Report 2023 is intended to provide Lion’s shareholders, investors and other stakeholders with key
information about the Company’s initiatives for increasing its corporate value over the medium to long term by fulfillingits purpose of “Make a difference in everyday lives by redesigning habits: ReDesign,” facilitating deeper understanding of
the Lion Group.
The sustainability website provides additional detailed reporting on Lion’s ESG data, initiatives related to the SDGs andother sustainability initiatives.

Referenced Guidelines:

Integrated Report

International Integrated Reporting Framework issued by the Value Reporting Foundation (VRF)
Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation issued by
the Ministry of Economy, Trade and Industry

Sustainability Website

The Environmental Reporting Guidelines (2018) issued by the Ministry of the Environment
GRI Sustainability Reporting Standards issued by the Global Reporting Initiative
ISO 26000: 2010 Guidance on social responsibility issued by the Japanese Standards Association

Scope of Coverage:

Lion Corporation and all of its consolidated subsidiaries are covered, in principle.

* Where the scope of coverage of reported activities or data differs from the above, a description is provided.
* Overseas consolidated subsidiaries are also covered by the Sustainability Material Issues and Objectives for 2030.

Period Covered

Integrated Report 2023: From January 1, 2022 to December 31, 2022
Sustainability Website: From January 1, 2022 to Present* Some parts also include information about activities conducted outside of the above periods.

Guideline Reference Tables

GRI Sustainability Reporting Standards Reference Table
Reference Table for United Nations Global Compact COP (Advanced Level August 2016 Version)

350

Lion Sustainability Website 2023

GRI Sustainability Reporting Standards 2016 Reference Table
Note: “-” in the table indicates that the contents of the item are not reported on Lion's sustainability website.
Universal Standards

General Disclosures 2016
Oraganizational Profile

102-1
102-2
102-3
102-4
102-5

Name of the organization
Activities, brands, products, and services
Location of headquarters
Location of operations
Ownership and legal form

102-6

Markets served

102-7

Scale of the organization

102-8

Information on employees and other workers

102-9

Supply chain

102-10Significant changes to the organization and its supply chain

102-11

Precautionary Principle or approach102-12External initiatives

351

WebsiteCompany Overview
Business Segment
Domestic Offices and Plants
Domestic Offices and Plants
Company Overview
Business Segment
Domestic Affiliates
Overseas Affiliates
Financial Highlights
Together with Employees
Employee Data
Together with Supply Chains
Notice Concerning the Acquisition of
Shares of Vietnam-Based MERAPHOLDING CORPORATION
Notice Concerning the Business Transfer
of Lactoferrin and Other Foods with
Function Claims to NISSIN FOOD
PRODUCTS CO., LTD. through a Corporate
Split (Simplified Absorption-Type Split)
Notice of Planned Additional
Investment in Bangladesh Joint
Venture (Subsidiary)
Lion to Establish a Joint Venture
Company in Bangladesh
Notice Concerning the Results of theAcquisition of Treasury Stock through
Off-Auction Own Share Repurchase
Trading (ToSTNeT-3),
the Completion of the Acquisition,and the Cancellation ofTreasury Stock
Notice Concerning the Determination of
the Acquisition Price of Treasury Stockthrough Off-Auction Own Share
Repurchase Trading (ToSTNeT-3)
Internal Control System
Risk Management
Compliance
Initiatives and External Evaluation
Participation in External Environmental
Initiatives
Main Activities (Recycling Resources)
Lion Sustainability Website 2023

Universal Standards

WebsiteParticipation in Pharmaceutical
Product Safety Initiatives
Participation in External Supply Chain
Initiatives
Participation in External Human Rights
Initiatives

Universal Standards

102-13

WebsiteMembership of Associations

Strategy102-14

Statement from senior decision-maker102-15Key impacts, risks, and opportunities

Ethics and integrity
102-16

Values, principles, standards, and norms of behavior

102-17

Mechanisms for advice and concerns about ethics

102-18102-19102-20Governance structure
Delegating authority
Executive-level responsibility for economic, environmental,
and social topics

102-21

Consulting stakeholders on economic, environmental, andsocial topics

102-22Composition of the highest governance body and its
committees

102-23Chair of the highest governance body

Governance

Universal Standards

Initiatives and External Evaluation
Participation in External Environmental
Initiatives
Eco-First Commitment
Participation in Pharmaceutical Product
Safety Initiatives
Building Relationships with Communities
and External Organizations
Participation in External Supply Chain
Initiatives
Medium-Term Management Plan
Message Management
Quarterly Financial Statements /Supplementary Materials
Internal Control System
Risk Management
Disclosure based on TCFD
recommendations
Corporate Philosophy
Charter for Corporate Behavior /Behavioral Guidelines
Compliance
Basic Approach to Corporate Governance
Basic Approach to Corporate Governance
Leadership Team
Stakeholder Engagement
Sustainability Material Issues andObjectives for 2030
Basic Approach to Corporate Governance
Lion Corporation Basic Corporate
Governance Policy
Corporate Governance Report
Corporate Governance Report
Website102-24

Nominating and selecting the highest governance body102-25102-26

Conflicts of interest
Role of highest governance body in setting purpose, values,
and strategy
352

Lion Corporation Basic Corporate
Governance Policy
Corporate Governance Report
Securities Report [Japanese]
Lion Corporation Basic Corporate
Governance Policy
Lion Sustainability Website 2023

Universal Standards

Website102-27

Collective knowledge of highest governance body102-28

Evaluating the highest governance body’s performance102-29Identifying and managing economic, environmental, andsocial impacts

102-30Effectiveness of risk management processes

102-31

Review of economic, environmental, and social topics

102-32Highest governance body’s role in sustainability reporting

102-33

Communicating critical concerns

102-34Nature and total number of critical concerns

102-35

Remuneration policies

102-36

Process for determining remuneration

102-37

Stakeholders’ involvement in remuneration

102-38Annual total compensation ratio

102-39Percentage increase in annual total compensation ratio

353

Lion Corporation Basic Corporate
Governance Policy
Lion Corporation Basic Corporate
Governance Policy
Lion Receives the 2020 Tokyo Governor
Prize for Corporate Governanceof the Year
Corporate Governance Report
Sustainability Material Issues andObjectives for 2030
Internal Control System
Risk Management
Internal Control System
Risk Management
Sustainability Management(Implementation Framework)
Management Message
ComplianceInternal Control System
Risk Management
Sustainability Management(Implementation Framework)
Compliance
Initiatives to Respond to Our Customers
Securities Report [Japanese]
Lion Corporation Basic Corporate
Governance Policy
Compensation System for Corporate
Officer
Securities Report [Japanese]
Compensation System for Corporate
Officer
Securities Report [Japanese]
Compensation System for Corporate
Officer
Compensation System for Corporate
Officer
Compensation System for Corporate
Officer

Lion Sustainability Website 2023

Universal Standards

Stakeholder Engagement102-40

List of stakeholder groups

102-41

Collective bargaining agreements

102-42102-43

Identifying and selecting stakeholders
Approach to stakeholder engagement102-44

Key topics and concerns raised

Reporting Practice102-45

Entities included in the consolidated financial statements

102-46

Defining report content and topic Boundaries

102-47102-48102-49102-50102-51
102-52102-53102-54102-55

List of material topics
Restatements of information
Changes in reporting
Reporting period
Date of most recent report
Reporting cycle
Contact point for questions regarding the report
Claims of reporting in accordance with the GRI Standards
GRI content index

102-56External assuranceManagement Approach and Topic-specific Standards

103
201-1
201-2
201-3

-

354

Stakeholder Engagement
Stakeholder Engagement
Labor-Management Relations
Stakeholder Engagement
Stakeholder Engagement
Sustainability Material Issues andObjectives for 2030
Stakeholder Engagement
Domestic Affiliates
Overseas Affiliates
Editorial Policy and Guideline
Reference Tables
Sustainability Material Issues andObjectives for 2030
Editorial Policy and Guideline
Reference Tables

June 30, 2023-

Editorial Policy and Guideline
Reference Tables

This Table

Economic Topics
Economic Performance

Management Approach
Direct economic value generated and distributed
Financial implications and other risks and opportunities
due to climate change
Defined benefit plan obligations and other retirement plans

WebsiteThird-Party Verification (Environment)
Third-Party Verification (Social)
WebsiteSecurities Report [Japanese]
Quarterly Financial Statements /Supplementary Materials
Disclosure based on TCFD
recommendations
Securities Report [Japanese]

Lion Sustainability Website 2023

Universal Standards

Website201-4

Financial assistance received from government

103
203-1
203-2

Management Approach
Infrastructure investments and services supported
Significant indirect economic impacts

103

Management Approach

204-1

Proportion of spending on local suppliers

103
205-1
205-2
205-3

Management Approach
Operations assessed for risks related to corruption
Communication and training about anti-corruption policies
and procedures
Confirmed incidents of corruption and actions taken

103
206-1

Management Approach
Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

Indirect Economic Impacts
Procurement Practices

Anti-corruption

Political Contributions

-

-

-

Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Charter for Corporate Behavior /Behavioral Guidelines
Compliance-

Anti-competitive Behavior
Environmental Topics
Materials

103

Management Approach

301-1

Materials used by weight or volume301-2

Recycled input materials used

301-3

Reclaimed products and their packaging materials

Energy103

Management Approach

302-1

Energy consumption within the organization

302-2

Energy consumption outside of the organization

302-3

Energy intensity

355-

Environmental Approach and Policy /Management
LION Eco Challenge 2050 Long-Term
Environmental Objectives
Realizing a Decarbonized Society
Realizing a Resource-Circulating Society
ESG Data and Third-Party Verification
Recycling Resources
ESG Data and Third-Party Verification
Using Recycled Plastics
Aiming for Sustainable Raw Material
Procurement
Using Recycled Plastics
Environmental Approach and Policy /Management
LION Eco Challenge 2050 Long-Term
Environmental Objectives
Realizing a Decarbonized Society
ESG Data and Third-Party Verification
Energy Consumption
Logistics Division Initiatives
Greenhouse Gas Emissions throughout
the Supply Chain
throughout Business
Reduce CO2Emissions
Activities
Lion Sustainability Website 2023

Universal Standards

Website302-4

Reduction of energy consumption

302-5

Reductions in energy requirements of products andservices

Water

103

Management Approach

303-1

Water withdrawal by source

303-2

Water sources significantly affected by withdrawal of water

303-3

Water recycled and reused

Biodiversity
103

Management Approach

356

Energy Consumption
throughout Business
Reduce CO2Emissions
Activities
Emissions throughout Product
Reduce CO2Life
CyclesEnvironmental Approach and Policy /Management
LION Eco Challenge 2050 Long-Term
Environmental Objectives
Realizing a Resource-Circulating Society
ESG Data and Third-Party Verification
Reducing Water Use
Overview of Lion's Biodiversity-Friendly
Business Activities
The Chiba Plant's Wastewater Recycling
Facilities
Environmental Approach and Policy /Management
Lion and biodiversity
Biodiversity Conservation Activities

Lion Sustainability Website 2023

Universal Standards

304-1
304-2
304-3
304-4

Pages to find in Lion Integrated Report 2022 (PDF)

WebsiteOperational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value
outside protected areas
Significant impacts of activities, products, and services on
biodiversity
Habitats protected or restored
IUCN Red List species and national conservation list species
with habitats in areas affected by operations

Biodiversity Conservation Initiatives
Overview of Lion's Biodiversity-Friendly
Business Activities
Biodiversity Conservation Initiatives
Biodiversity Conservation Initiatives

Emissions

103

Management Approach

305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

305-3

Other indirect (Scope 3) GHG emissions

305-4

GHG emissions intensity

305-5
305-6

Reduction of GHG emissions
Emissions of ozone-depleting substances (ODS)
Nitrogen oxides (NOx), sulfur oxides (SOx), and othersignificant air emissions

305-7

357

-

Environmental Approach and Policy /Management
Realizing a Decarbonized Society
LION Eco Challenge 2050 Long-Term
Environmental Objectives
Scope 1 and 2 Greenhouse Gas
Emissions from Domestic Operating
Sites (tons)
Scope 1 and 2 Greenhouse Gas
Emissions from Overseas Operating
Sites (tons)
Scope 1 and 2 Greenhouse Gas
Emissions from Domestic Operating
Sites (tons)
Scope 1 and 2 Greenhouse Gas
Emissions from Overseas Operating
Sites (tons)
Greenhouse Gas Emissions throughout
the Supply Chain
LION Eco Challenge 2050 Long-Term
Environmental Objectives
throughout Business
Reduce CO2Emissions
Activities
throughout Business
Reduce CO2Emissions
Activities
ESG Data and Third-Party Verification
Management of Chemical Substances

Lion Sustainability Website 2023

Universal Standards

103
306-1
306-2
306-3
306-4
306-5

103
307-1
103
308-1
308-2

103
401-1

WebsiteEffluents and Waste

Environmental Approach and Policy /Management
Realizing a Resource-Circulating Society
Water discharge by quality and destination
Management of Chemical Substances
Waste by type and disposal method
Reducing Waste
Significant spills
Legal ComplianceTransport of hazardous waste
Management of Chemical Substances
Overview of Lion’s Biodiversity-Friendly
Business Activities
Water bodies affected by water discharges and/or runoff
Environmental Impact Surveys ofSurfactants MES and MEE
Environmental Compliance
Environmental Approach and Policy /Management Approach
Management
Non-compliance with environmental laws and regulations
Legal Compliance
Supplier Environmental Assessment
Promoting Sustainability with Materials
Manufacturers and Production
Management Approach
Contractors
Sustainable Material Procurement Policy
Promoting Sustainability with Materials
New suppliers that were screened using environmental
Manufacturers and Production
criteria
Contractors
Negative environmental impacts in the supply chain and
Aiming for Sustainable Raw Material
actions taken
Procurement
SocialEmployement
Management Approach
Employment information [Japanese]
Together with Employees
New employee hires and employee turnover
Employee DataManagement Approach

401-2
401-3

Benefits provided to full-time employees that are notprovided to temporary or part-time employees
Parental leave

103
402-1

Management Approach
Minimum notice periods regarding operational changes-

Promoting Work-Life Enrichment
Labor/Management Relations
Labor-Management Relations

358-

Lion Sustainability Website 2023

Universal Standards

103
403-1
403-2
403-3
403-4
103
404-1
404-2
404-3
103
405-1
405-2
103
406-1

Pages to find in Lion Integrated Report 2022 (PDF)

WebsiteOccupational Health and Safety
Enhancing the Occupational Safety
Management Approach
Management System
Workers representation in formal joint management–
Enhancing the Occupational Safety
worker health and safety committees
Management System
Types of injury and rates of injury, occupational diseases,
Enhancing the Occupational Safety
lost days, and absenteeism, and number of work-related
Management Systemfatalities
Workers with high incidence or high risk of diseases related to their occupation
Health and safety topics covered in formal agreements with trade unions

Training and Education

Management Approach
Average hours of training per year per employee
Programs for upgrading employee skills and transition
assistance programs
Percentage of employees receiving regular performance &career development reviews-

Developing Human Resources
Employee Data
Human Resource Development to
Support Career Autonomy

Diversity and Equal Opportunity
Management Approach
Promoting Diversity & Inclusion
Diversity of governance bodies and employees
Promoting Diversity & Inclusion
Ratio of basic salary and remuneration of women to men
Employee Data
Non-discrimination
Management Approach
Promoting Diversity & Inclusion
Incidents of discrimination and corrective actions taken
Promoting Diversity & Inclusion

359

Lion Sustainability Website 2023

Universal Standards

103
407-1
103
408-1
103
409-1
103
412-1
412-2
412-3
103
413-1
413-2

WebsiteFreedom of Association and Collective Bargaining
Management Approach
Labor-Management Relations
Operations and suppliers in which the right to freedom of
Measures to Prevent Human Rights
association and collective bargaining may be at risk
Abuse (Human Rights Due Diligence)
Child Labor
Management Approach
Respect for Human Rights
Operations and suppliers at significant risk for incidents of
Human Rights Due Diligencechild labor
Forced or Compulsory Labor
Management Approach
Respect for Human Rights
Operations and suppliers at significant risk for incidents of
Measures to Prevent Human Rights
forced or compulsory labor
Abuse (Human Rights Due Diligence)
Human Rights Assessment
Management Approach
Respect for Human Rights
Operations that have been subject to human rights reviews
Measures to Prevent Human Rights
or impact assessments
Abuse (Human Rights Due Diligence)
Measures to Prevent Human Rights
Employee training on human rights policies or procedures
Abuse (Human Rights Due Diligence)
Significant investment agreements and contracts that
Measures to Prevent Human Rights
include human rights clauses or that underwent human
Abuse (Human Rights Due Diligence)rights screening
Local Communities
Management ApproachSocial Contribution Activities
Operations with local community engagement, impact
Social Contribution Activities
assessments, and development programs
Operations with significant actual and potential negative
impacts on local communities

360-

Lion Sustainability Website 2023

Universal Standards

103
414-1
414-2
415-1
103
416-1
416-2
103
417-1

WebsiteSupplier Social Assessment
Management Approach
Together with Supply Chains
New suppliers that were screened using social criteria
Selecting New Suppliers
Negative social impacts in the supply chain and actions
Aiming for Sustainable Raw Material
taken
Procurement
Public Policy
Political Contributions
Political Contributions
Customer Health and Safety
Management Approach
Ensuring Product Safety and Reliability
Approach to Quality Assurance,
Assessment of the health and safety impacts of product and
Safety and Reliability
service categories
Safety of Products During Use
Incidents of non-compliance concerning the health andsafety impacts of products and services

Marketing and Labeling

417-3Management Approach
Requirements for product and service information andlabeling
Incidents of non-compliance concerning product andservice information and labeling
Incidents of non-compliance concerning marketing
communications

103
418-1

Management Approach
Substantiated complaints concerning breaches of customer
privacy and losses of customer data

417-2

103
419-1

-

Ensuring Product Safety and Reliability
Approach to Responsible ProductRepresentations
Approach to Quality Assurance, Safety
and Reliability-

Customer Privacy

Handling of Personal Information-

Socioeconomic Compliance
ComplianceManagement ApproachNon-compliance with laws and regulations in the social and economic area

361

Lion Sustainability Website 2023

Reference Table for United Nations Global Compact COP

Lion Group announced its support for the UNGC in 2009 and takes part in related initiatives. As upstanding member, COP(Communication on Progress) on the status of initiatives on ten principles in the four areas of “Human Rights,” “Labour,”“Environment” and “Anti-Corruption” is submitted once a year. The Lion’s sustainability activities introduced in the
Integrated Report 2022 and websites are laid out in this Reference Table based on the GC Advanced COP Self-Assessment(Updated 19 August 2016).
Criteria for the GC Advanced Level (August 2016 Version)

WebsiteGeneral

Does your COP contain a statement by the CEO (or equivalent) expressing continued support for
the Global Compact and renewing your company's ongoing commitment to the initiative and its
principles?

Management Message
Charter for Corporate Behavior / Be
havioral Guidelines
Sustainability Material Issues
and Objectives for 2030
LION Human Rights Policy
Environmental Policy
Together with Employees
LION Anti-Bribery Principles
Sustainability Material Issues
and Objectives for 2030
Stakeholder Engagement

Does your COP contain a description of actions and policies related to the following issue areas?
Human Rights, Labour, Environment, Anti-Corruption

Does your COP include qualitative and/or quantitative measurement of outcomes illustrating thedegree to which targets/performance indicators were met?
How does your organization share its COP with stakeholders?
a) Through the UN Global Compact website onlyb) COP is easily accessible to all interested parties (e.g., via its website)

Available on our websitec) COP is actively distributed to all key stakeholders (e.g., investors, employees, consumers, local
community)
Both b) and c)

How is the accuracy and completeness of information in your COP assessed by a credible third-party?

The COP describes any action(s) that the company plans to undertake to have the credibility of
the information in its COP externally assessed, including goals, timelines, metrics, andresponsible staff
Information is reviewed by multiple stakeholders (e.g., representatives of groups prioritized instakeholder analysis)
Information is reviewed by a panel of peers (e.g., members of the same industry, competitors,
benchmarked leaders, others organized via Global Compact Local Network)-

Conducting Third-Party
Verification (Environment)
Conducting Third Party
Verification (Society)

Information is assured by independent assurors (e.g., accounting or consulting firm) using theirown proprietary methodology
Information is assured by independent assurors (e.g., accounting or consulting firm) against
recognized assurance standard (e.g., ISAE3000, AA1000AS, other national or industry-specificstandard)
Other established or emerging best practices
The COP incorporates the following high standards of transparency and disclosure:

Applies the GRI Sustainability Reporting Guidelines
Is ‘in accordance - core’ with GRI G4
Is ‘in accordance - comprehensive’ with GRI G4
Applies elements of the International Integrated Reporting Framework-

362

Stakeholder Engagement
Initiatives and External
Evaluations

GRI Standard
Integrated Report 2023
Lion Sustainability Website 2023

Criteria for the GC Advanced Level (August 2016 Version)

WebsiteProvides information on the company’s profile and context of operation
Which of the following Sustainable Development Goals (SDGs) do the activities described in your COP address?

SDG 1: End poverty in all its forms everywhere
SDG 2: End hunger, achieve food security and improved nutrition and promote sustainableagriculture
SDG 3: Ensure healthy lives and promote well-being for all at all ages
SDG 4: Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all

SDG 5: Achieve gender equality and empower all women and girls

SDG 6: Ensure availability and sustainable management of water and sanitation for all

SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all

SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive
employment and decent work for all

363-

Company Overview
Business Segment
Integrated Report 2023 p4
Inclusive Oral Care [Japanese]
Lion’s SDG-Related Initiatives
Creating Healthy Living Habits
Creating Healthy Living Habits
Environmental Communication
Measures to Prevent Human
Rights Abuse(Human Rights Due Diligence)
Together with Employees
Promoting the Professional
Participation and Advancementof Women
Kaji × Kaji Happy Share Project [Japanese]Compliance
LION Eco Challenge 2050
Long-Term Environmental
Objectives
Reducing Water Use
Initiatives to Establish
Cleanliness and Hygiene Habits
LION Eco Challenge 2050
Long-Term Environmental
Objectives
Disclosure based on TCFD
recommendations
Reduce CO2Emissions throughout Business Act
ivities
Realizing a Resource-Circulating So
ciety
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Measures to Prevent Human
Rights Abuse(Human Rights Due Diligence)
Together with Employees
Developing Human Resources
Promoting Work-Life Enrichment
Promoting Diversity & Inclusion
Occupational Safety and Safetyof Facilities
Labor-Management Relations
Health and Productivity
Management
Lion Sustainability Website 2023

Criteria for the GC Advanced Level (August 2016 Version)

WebsitePromoting Sustainability with
Materials Manufacturers andProduction Contractors

Criteria for the GC Advanced Level (August 2016 Version)

WebsiteSDG 9: Build resilient infrastructure, promote inclusive and sustainable industrialization andfoster innovation

SDG 10: Reduce inequality within and among countries

SDG 11: Make cities and human settlements inclusive, safe, resilient and sustainable

SDG 12: Ensure sustainable consumption and production patterns

SDG 13: Take urgent action to combat climate change and its impacts

SDG 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable
development

364-

LION Eco Challenge 2050
Long-Term Environmental
Objectives
Realizing a Resource-Circulating So
ciety
Reduce CO2Emissions throughout Business Act
ivities
Inclusive Oral Care [Japanese]
Measures to Prevent Human
Rights Abuse(Human Rights Due Diligence)
Together with Employees
Developing Human Resources
Promoting Diversity & Inclusion
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Compliance
Together with the Environment
LION Eco Challenge 2050
Long-Term Environmental
Objectives
Measures Aimed at Realizinga Resource-CirculatingSociety—Reducing Containerand Packaging Materials—the
3Rs and Renewable Materials
Toothbrush Recycling Program
Aiming for Sustainable Raw
Material Procurement
Ensuring Product Safety andReliability
Together with the Environment
LION Eco Challenge 2050
Long-Term Environmental
Objectives
Toothbrush Recycling Program
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Ensuring Product Safety andReliability
LION Eco Challenge 2050
Long-Term Environmental
Objectives
Realizing a Resource-CirculatingSociety
Reducing Water Use
Lion Sustainability Website 2023

Criteria for the GC Advanced Level (August 2016 Version)

Criteria for the GC Advanced Level (August 2016 Version)

SDG 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably
manage forests, combat desertification, and halt and reverse land degradation and halt
biodiversity loss

SDG 16: Promote peaceful and inclusive societies for sustainable development, provide access tojustice for all and build effective, accountable and inclusive institutions at all levels

SDG 17: Strengthen the means of implementation and revitalize the global partnership forsustainable development

With respect to your company’s actions to advance the Sustainable Development Goals (SDGs),
the COP describes:

Opportunities and responsibilities that one or more SDGs represent to our business
Where the company’s priorities lie with respect to one or more SDGs
Goals and indicators set by our company with respect to one or more SDGs

How one or more SDGs are integrated into the company’s business model

365

WebsiteBiodiversity Conservation
Activities
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
WebsiteTogether with the Environment
LION Eco Challenge 2050
Long-Term Environmental
Objectives
Biodiversity Conservation
Activities
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Measures to Prevent Human
Rights Abuse(Human Rights Due Diligence)
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Basic Approach to Corporate
Governance
Stakeholder Engagement
Social Contribution Activities
Initiatives and External
Evaluations
Toothbrush Recycling Program
Social Contribution Activities
Measures to Prevent Human
Rights Abuse(Human Rights Due Diligence)
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Lion’s Sustainability
Risks and Opportunities
Related to Sustainability
Material Issues in the
Value Chain
Sustainability Material Issues
and Objectives for 2030
Lion’s SDG-Related Initiatives
Sustainability Material Issues
and Objectives for 2030
Lion’s Sustainability
Risks and Opportunities
Related to Sustainability
Material Issues in the
Value Chain
Sustainability Material Issues
and Objectives for 2030
Lion Sustainability Website 2023

Criteria for the GC Advanced Level (August 2016 Version)

WebsiteRisks and Opportunities
Related to Sustainability
Material Issues in the
Value ChainContributing to the
Achievement of the SDGs
Lion’s SDG-Related Initiatives
Toothbrush Recycling Program

The (expected) outcomes and impact of your company’s activities related to the SDGs
If the companies’ activities related to the SDGs are undertaken in collaboration with otherstakeholders
Other established or emerging best practices

Items

Implementing the Ten Principles into Strategies & Operations
The COP describes mainstreaming into corporate functions and business units

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff

Place responsibility for execution of sustainability strategy in relevant
corporate functions (procurement, government affairs, humanresources, legal, etc) ensuring no function conflicts with company’ssustainability commitments and objectives
Criterion 1

Align strategies, goals and incentive structures of all business units
and subsidiaries with corporate sustainability strategy
Assign responsibility for corporate sustainability implementation to
an individual or group within each business unit and subsidiary
Design corporate sustainability strategy to leverage synergies between
and among issue areas and to deal adequately with trade-offs
Ensure that different corporate functions coordinate closely tomaximize performance and avoid unintended negative impacts

Criterion 2

Other established or emerging best practices-

The COP describes value chain implementation

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Analyze each segment of the value chain carefully, both upstream anddownstream, when mapping risks, opportunities and impacts

Communicate policies and expectations to suppliers and otherrelevant business partners
Implement monitoring and assurance mechanisms (e.g.
audits/screenings) for compliance within the company’s sphere of
influence

366

Medium-Term Management Plan
Management Message
Sustainability Management(Implementation Framework)
Basic Approach to Corporate
GovernanceCorporate Governance Report
Medium-Term Management Plan
Basic Approach to Corporate
Governance
Sustainability Management(Implementation Framework)
Sustainability Material Issues
and Objectives for 2030
Basic Approach to Corporate
GovernanceInternal Control System
Risk Management
Sustainability Material Issues
and Objectives for 2030
Together with Supply Chains
Sustainability Material Issues
and Objectives for 2030
Risks and Opportunities Related to
Sustainability Material Issues
in the Value Chain
Together with Supply Chains
Procurement Principles
Sustainable Material Procurement
PolicyLion Group Supplier CSR Guidelines
Sustainability Material Issues
and Objectives for 2030
Compliance
Risk Management
Self-Checks Based on the Lion Group
Supplier CSR Guidelines
Lion Sustainability Website 2023

ItemsCriterion 3

Undertake awareness-raising, training and other types of capacity
building with suppliers and other business partners
Other established or emerging best practices-

Joined Sedex, the Supplier Ethical
Data Exchange
Employee Training on Sustainable
Procurement

Robust Human Rights Management Policies & Procedures
The COP describes robust commitments, strategies or policies in the area of human rights

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Commitment to comply with all applicable laws and respect
internationally recognized human rights, wherever the company
operates (e.g., the Universal Declaration of Human Rights, Guiding
Principles on Human Rights)
Integrated or stand-alone statement of policy expressing commitment
to respect and support human rights approved at the most seniorlevel of the company
Statement of policy stipulating human rights expectations of
personnel, business partners and other parties directly linked tooperations, products or services
Statement of policy publicly available and communicated internallyand externally to all personnel, business partners and other relevant
parties
Other established or emerging best practices

Sustainability Material Issues
and Objectives for 2030
Respect for Human Rights
Human Rights Policy-

Charter for Corporate Behavior /Behavioral Guidelines
Human Rights Policy
Charter for Corporate Behavior /Behavioral Guidelines
Human Rights Policy
Charter for Corporate Behavior /Behavioral Guidelines
Human Rights Policy

The COP describes effective management systems to integrate the human rights principles

Criterion 4

Sustainability Material Issues
Any relevant policies, procedures, and activities that the company
and Objectives for 2030
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Respect for Human Rights
Process to ensure that internationally recognized human rights are
Measures to Prevent Human Rights
respected
Abuse (Human Rights Due Diligence)
On-going due diligence process that includes an assessment of actual
Measures to Prevent Human Rights
and potential human rights impacts
Abuse (Human Rights Due Diligence)
Internal awareness-raising and training on human rights for
Measures to Prevent Human Rights
management and employees
Abuse (Human Rights Due Diligence)
Operational-level grievance mechanisms for those potentiallyComplianceimpacted by the company’s activities
Allocation of responsibilities and accountability for addressing humanCompliancerights impacts
Internal decision-making, budget and oversight for effective
Measures to Prevent Human Rights
responses to human rights impacts
Abuse (Human Rights Due Diligence)
Processes to provide for or cooperate in the remediation of adverse
Measures to Prevent Human Rights
human rights impacts that the company has caused or contributed toAbuse (Human Rights Due Diligence)
Participation in External Supply
Process and programs in place to support human rights through: core
Chain Initiatives
business; strategic philanthropic/social investment; public policy
engagement/advocacy; partnerships and/or other forms of collective
Participation in External Human
actionRights Initiatives
Other established or emerging best practices-

367

Lion Sustainability Website 2023

The COP describes effective monitoring and evaluation mechanisms of human rights integration

Sustainability Material Issues
and Objectives for 2030
Respect for Human Rights
Compliance
Sustainability Material Issues
and Objectives for 2030
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
ComplianceInternal Control System
Risk Management
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Basic Approach to Corporate
GovernanceInternal Control System
Risk Management
Compliance
Basic Approach to Corporate
GovernanceComplianceCorporate Governance ReportCompliance

Any relevant policies, procedures, and activities that the company plans
to undertake to fulfill this criterion, including goals, timelines, metrics,
and responsible staff
System to monitor the effectiveness of human rights policies andimplementation with quantitative and qualitative metrics, including inthe supply chain

Monitoring drawn from internal and external feedback, including affectedstakeholders
Criterion
5

Leadership review of monitoring and improvement results

Process to deal with incidents the company has caused or contributed tofor internal and external stakeholders
Grievance mechanisms that are legitimate, accessible, predictable,
equitable, transparent, rights-compatible, a source of continuous
learning, and based on engagement and dialogue
Outcomes of integration of the human rights principles
Other established or emerging best practices-

368

Human Rights Policy
Compliance

Lion Sustainability Website 2023

ItemsCriterion
6

Robust Labour Management Policies & Procedures
The COP describes robust commitments, strategies or policies in the area of labour

Any relevant policies, procedures, and activities that the company plans
to undertake to fulfill this criterion, including goals, timelines, metrics,
and responsible staff
Reference to principles of relevant international labour standards (ILO
Conventions) and other normative international instruments in company
policies
Reflection on the relevance of the labour principles for the company
Written company policy to obey national labour law, respect principles of
the relevant international labour standards in company operations
worldwide, and engage in dialogue with representative organization of
the workers (international, sectoral, national).
Inclusion of reference to the principles contained in the relevantinternational labour standards in contracts with suppliers and otherrelevant business partners
Specific commitments and Human Resources policies, in line withnational development priorities or decent work priorities in the countryof operation
Participation and leadership in wider efforts by employers’ organizations(international and national levels) to jointly address challenges related tolabour standards in the countries of operation, possibly in a tripartite
approach (business – trade union – government).
Structural engagement with a global union, possibly via a Global
Framework Agreement
Other established or emerging best practices

The COP describes effective management systems to integrate the labour principles

Sustainability Material Issues
and Objectives for 2030
Human Rights Policy-

Charter for Corporate Behavior /Behavioral Guidelines-

Charter for Corporate Behavior /Behavioral Guidelines-

Any relevant policies, procedures, and activities that the company plans
to undertake to fulfill this criterion, including goals, timelines, metrics,
and responsible staff
Risk and impact assessments in the area of labour

Together with Employees

Dialogue mechanism with trade unions to regularly discuss and review
company progress in addressing labour standards
Criterion
7

Allocation of responsibilities and accountability within the organization
Internal awareness-raising and training on the labour principles for
management and employees
Active engagement with suppliers to address labour-related challenges
Grievance mechanisms, communication channels and other procedures(e.g., whistleblower mechanisms) available for workers to reportconcerns, make suggestions or seek advice, designed and operated inagreement with the representative organization of workers
Other established or emerging best practices

369-

Sustainability Material Issues
and Objectives for 2030
Together with Employees
Labor-Management Relations
Basic Approach to Corporate
Governance
Together with Employees
Developing Human Resources
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Compliance
Labor-Management Relations

Lion Sustainability Website 2023

The COP describes effective monitoring and evaluation mechanisms of labour principles integration

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff

Sustainability Material Issues
and Objectives for 2030
Sustainability Material Issues
and Objectives for 2030
Developing Human Resources
Initiatives (Occupational Safety/
Facility Safety)
Promoting Diversity & Inclusion
Promoting Work-Life Enrichment
Improving Employee Health
Labor-Management Relations

System to track and measure performance based on standardized
performance metrics
Criterion
8

Dialogues with the representative organization of workers to regularly
review progress made and jointly identify priorities for the future
Audits or other steps to monitor and improve the working conditionsof companies in the supply chain, in line with principles ofinternational labour standards
Process to positively engage with the suppliers to address thechallenges (i.e., partnership approach instead of corrective approach)through schemes to improve workplace practices-

Outcomes of integration of the Labour principles
Items

Other established or emerging best practices-

Robust Environmental Management Policies & Procedures
The COP describes robust commitments, strategies or policies in the area of environmental stewardship

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff

Criterion
9

Measures to Prevent Human Rights
Abuse (Human Rights Due Diligence)
Compliance Awareness Survey
Promoting Diversity & Inclusion

Reference to relevant international conventions and otherinternational instruments (e.g. Rio Declaration on Environment andDevelopment)
Reflection on the relevance of environmental stewardship for thecompany
Written company policy on environmental stewardship
Inclusion of minimum environmental standards in contracts with
suppliers and other relevant business partners
Specific commitments and goals for specified years
Other established or emerging best practices

370

Sustainability Material Issues
and Objectives for 2030
Together with the Environment
Environmental Approach and Policy /Management
LION Eco Challenge 2050 Long-Term
Environmental Objectives
Environmental Approach and Policy /Management
LION Eco Challenge 2050 Long-Term
Environmental Objectives
Environmental Approach and Policy /Management
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
LION Eco Challenge 2050 Long-Term
Environmental Objectives
Recycling Resources

Lion Sustainability Website 2023

The COP describes effective management systems to integrate the environmental principles

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff

Environmental risk and impact assessments

Criterion
10

Assessments of lifecycle impact of products, ensuring environmentallysound management policies

Allocation of responsibilities and accountability within theorganisation
Internal awareness-raising and training on environmental stewardshipfor management and employees
Grievance mechanisms, communication channels and otherprocedures (e.g. whistleblower mechanisms) for reporting concerns or
seeking advice regarding environmental impacts
Other established or emerging best practices-

Environmental Approach and Policy /Management
Disclosure based on TCFD
recommendations
Overview of Environmental Burden
Created by Business Activities
Realizing a Resource-CirculatingSociety
Realizing a Decarbonized Society
LION Eco Challenge 2050 Long-Term
Environmental Objectives
Overview of Environmental Burden
Created by Business Activities
Realizing a Decarbonized Society
Realizing a Resource-CirculatingSociety
Overview of Lion’s BiodiversityFriendly Business Activities
ESG Data and Third-Party Verification
Environmental Management Structure
Environmental Communication
Compliance
Environmental Communication
through Events

The COP describes effective monitoring and evaluation mechanisms for environmental stewardship

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
System to track and measure performance based on standardized
performance metrics
Leadership review of monitoring and improvement results
Criterion
11

Process to deal with incidents
Audits or other steps to monitor and improve the environmental
performance of companies in the supply chain
Outcomes of integration of the environmental principles
Other established or emerging best practices-

371

Environmental Approach and Policy /Management
Environmental Approach and Policy /Management
Environmental Management Structure
Environmental Objectives andAchievements
Environmental Approach and Policy /Management
Environmental Management Structure
Environmental Approach and Policy /Management
Environmental Management Structure
Sustainability Material Issues
and Objectives for 2030
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Legal Compliance
ESG Data and Third-Party Verification
Management of Chemical Substances

Lion Sustainability Website 2023

ItemsRobust Anti-Corruption Management Policies & Procedures
The COP describes robust commitments, strategies or policies in the area of anti-corruption

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff

LION Anti-Bribery Principles
Charter for Corporate Behavior /Behavioral Guidelines
Procurement Principles
LION Anti-Bribery Principles
Initiatives and External Evaluations
Charter for Corporate Behavior /Behavioral Guidelines
Procurement Principles
LION Anti-Bribery Principles
Initiatives and External Evaluations

Publicly stated formal policy of zero-tolerance of corruption

Criterion
12

Commitment to be in compliance with all relevant anti-corruption
laws, including the implementation of procedures to know the law
and monitor changes
Statement of support for international and regional legal frameworks,
such as the UN Convention against Corruption
Detailed policies for high-risk areas of corruption-

Policy on anti-corruption regarding business partners
Other established or emerging best practices-

Charter for Corporate Behavior /Behavioral Guidelines
Procurement Principles
LION Anti-Bribery Principles

The COP describes effective management systems to integrate the anti-corruption principle

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Support by the organization’s leadership for anti-corruption-

Initiatives and External Evaluations
Internal Control System
Risk Management

Carrying out risk assessment of potential areas of corruption

Criterion
13

Human Resources procedures supporting the anti-corruption
commitment or policy, including communication to and training for all
employees
Internal checks and balances to ensure consistency with the anticorruption commitment

Compliance

Actions taken to encourage business partners to implement anticorruption commitments
Management responsibility and accountability for implementation of
the anti-corruption commitment or policy
Communications (whistleblowing) channels and follow-up
mechanisms for reporting concerns or seeking advice
Internal accounting and auditing procedures related to anticorruption
Other established or emerging best practices-

372

Internal Control System
Risk Management
Promoting Sustainability with
Materials Manufacturers andProduction Contractors
Internal Control System
Risk Management
ComplianceInternal Control System
Risk Management

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The COP describes effective monitoring and evaluation mechanisms for the integration of anti-corruption

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff-

Leadership review of monitoring and improvement results
Criterion
14

Items

Criterion
15

Process to deal with incidents
Public legal cases regarding corruption
Use of independent external assurance of anti-corruption programmes
Outcomes of assessments of potential corruption and mechanisms forseeking advice /reporting procedures supporting anti-corruption
policy.
Other established or emerging best practices
Taking Action in Support of Broader UN Goals and Issues
The COP describes core business contributions to UN goals and issues

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Align core business strategy with one or more relevant UN
goals/issues
Develop relevant products and services or design business models
that contribute to UN goals/issues
Adopt and modify operating procedures to maximize contribution to
UN goals/issues
Other established or emerging best practices
The COP describes strategic social investments and philanthropy-

Sustainability Material Issues
and Objectives for 2030
Medium-Term Management Plan-

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Pursue social investments and philanthropic contributions that tie inwith the core competencies or operating context of the company as anintegrated part of its sustainability strategy
Criterion
16

Coordinate efforts with other organizations and initiatives to amplify—
and not negate or unnecessarily duplicate—the efforts of othercontributors
Take responsibility for the intentional and unintentional effects offunding and have due regard for local customs, traditions, religions,and priorities of pertinent individuals and groups
Other established or emerging best practices

373

Internal Control System
Risk Management
Internal Control System
Risk Management-

Social Contribution Activities
Sustainability Material Issues
and Objectives for 2030
Social Contribution Activities
Creating Healthy Living Habits
Eco-First Commitment
Social Contribution Activities
Together with Supply Chains
Initiatives to Establish Oral Care Habits
Inclusive Oral Care [Japanese]
Aiming for Sustainable Raw Material
Procurement

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The COP describes advocacy and public policy engagement

Criterion
17

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Publicly advocate the importance of action in relation to one or more
UN goals/issues
Commit company leaders to participate in key summits, conferences,and other important public policy interactions in relation to one ormore UN goals/issues
Other established or emerging best practices
The COP describes partnerships and collective action

Social Contribution Activities
Stakeholder Engagement
Management Message
Eco-First Commitment
Eco-First Commitment-

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Criterion
18

Items

Develop and implement partnership projects with public or privateorganizations (UN entities, government, NGOs, or other groups) oncore business, social investments and/or advocacy
Join industry peers, UN entities and/or other stakeholders ininitiatives contributing to solving common challenges and dilemmas
at the global and/or local levels with an emphasis on initiatives
extending the company’s positive impact on its value chain
Other established or emerging best practices
Corporate Sustainability Governance and Leadership
The COP describes CEO commitment and leadership

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Criterion
19-

Social Contribution Activities
Stakeholder Engagement
Social Contribution Activities
Initiatives to Establish Oral Care Habits
Inclusive Oral Care [Japanese]
Eco-First Commitment
Together with Supply Chains
Eco-First Commitment
Basic Approach to Corporate
Governance
Sustainability Material Issues
and Objectives for 2030
Management Message

CEO publicly delivers explicit statements and demonstrates personalleadership on sustainability and commitment to the UN Global
Management Message
Compact
CEO promotes initiatives to enhance sustainability of the company’s
Eco-First Commitment
sector and leads development of industry standards
CEO leads executive management team in development of corporate
Management Message
sustainability strategy, defining goals and overseeing implementation
Make sustainability criteria and UN Global Compact principles part ofCompensation System for Corporate
goals and incentive schemes for CEO and executive management team
Officer
Other established or emerging best practices-

374

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The COP describes Board adoption and oversight

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Criterion
20

Board of Directors (or equivalent) assumes responsibility andoversight for long-term corporate sustainability strategy andperformance
Board establishes, where permissible, a committee or assigns an
individual board member with responsibility for corporate
sustainability.
Board (or committee), where permissible, approves formal reportingon corporate sustainability (Communication on Progress)
Other established or emerging best practices
The COP describes stakeholder engagement-

Any relevant policies, procedures, and activities that the company
plans to undertake to fulfill this criterion, including goals, timelines,
metrics, and responsible staff
Publicly recognize responsibility for the company’s impacts on
internal and external stakeholders
Criterion
21

Stakeholder Engagement
Management Message
Stakeholder Engagement
Stakeholder Engagement
Sustainability Material Issues
and Objectives for 2030
Stakeholder Engagement

Define sustainability strategies, goals and policies in consultation withkey stakeholders
Consult stakeholders in dealing with implementation dilemmas andchallenges and invite them to take active part in reviewing
performance
Establish channels to engage with employees and other stakeholders
to hear their ideas and address their concerns, and protect ‘whistleblowers’
Other established or emerging best practices

375

Basic Approach to Corporate
Governance
Basic Approach to Corporate
Governance
Sustainability Management(Implementation Framework)
Leadership Team
Sustainability Management(Implementation Framework)
Sustainability Management(Implementation Framework)-

Stakeholder Engagement
Compliance

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