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

9

Lion Sustainability Website 2024

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 the Sustainability Promotion Council, convening
twice a year.

We have established the E, S and G subcommittees under the council, each headed by an executive officer, to promote andmonitor initiatives for the Sustainability Material Issues. Decisions made by the council are shared with the Executive Committee
and, as necessary, presented to and discussed by the Executive

Management Board and the Board of Directors, before beingreflected 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, theAtsuko Suzuki

External Audit & Supervisory
Board Member

more 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 ESG-

related 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.

10

Lion Sustainability Website 2024

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

Lion’s History (Sustainability)

Initiatives and External Evaluations

ESG Data and Third-Party Verification

Stakeholder Engagement

Social Contribution Activities

2030

11

Lion Sustainability Website 2024

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

12Lion Sustainability Website 2024

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.

Sustainability Material Issues and Objectives for 2030

For a summary version ideal for getting a general overview and suitable for printing, please use the PDF version. For moredetailed information, please use the web version.

13

Lion Sustainability Website 2024

Sustainability Initiatives

Reinforcing Initiatives to Address the Sustainability Material Issues
Risk Management

At the Lion Group, we have identiﬁed and are carefully managing sustainability-related risks that may seriously impact management
as we work to achieve sustainable growth and fulﬁl our social responsibility by supplying products to our customers. Please see“Business Risks” on page �� for speciﬁc risks and countermeasures.

Objectives and Indicators

Sustainability Material Issues, ���� Objectives and Indicators, ���� Results and Measures to ����We conducted activities toward achieving the ���� objectives for each Sustainability Material Issue. We will continue to introduce further
initiatives. Going forward, we will boost our eﬀorts to manage and address these risks.

Material Issues

Objectives

E

Top-Priority Material Issues

Link

S

Link

Globally Common Measures to ����・Reduce energy usage through energy-saving
activities.
・Purchase electricity generated by renewableenergy sources

・CO� emissions throughout
product lifecycles⇒Down ��% compared with���� levels(Absolute quantity)・Up �% compared with ����Achieve a CO� emissions
reduction eﬀect in excessof Lion’s own emissions to
help society becomecarbon negative.

・Contribute to a CO�emission reduction eﬀect
in excess of Lion’s own
emissions (Japan)

・Plan to formulate actions and KPIs and verify theireﬀectiveness・Reduce household CO� emissions from product use
through the provision of environmentally friendly
products and services and the promotion ofenvironmentally friendly habits.
・Reduce CO� emissions at the stage of procurement
through supplier engagement and the purchase of
raw materials that generate low CO� emissions.

Actively promote the �Rs(reduce, reuse, recycle)
and renewable resource
activities.

・Petrochemical-derived
plastic use rate
⇒��% or less・Reduce society’s overall CO� emissions throughcollaboration with other industry actors andcompanies.
・Reduce household CO� emissions through provisionof environmentally friendly products and services.

・��% (Japan)
Rate of containers and other packaging using
sustainable materials: �.�%・Reduce usage of petrochemical-derived materials
through the increased use of recycled plastic andbiomass materials in products, containers andpackaging.
・Continuously promote reduced use and reuse ofplastic in products, containers and packaging.

Reduce water usage
throughout productlifecycles.

・Water usage throughout
product lifecycles⇒Down ��% compared with���� levels(Per unit of net sales)

・Down ��% compared with ����・Reduce water usage by consumers through theprovision of water-saving products

Oral care habits: ��� million*
Spreading Awareness of Preventive Dentistry Habits(Japan)・Began services supporting the oral care habits ofcorporate customers and children(Okuchi Plus You and Okuchi-iku)(Overseas)
・Conducted educational and awareness activities topromote the formation of good tooth brushinghabits among kindergarten and elementary school
children(implemented preventive dentistry habits)

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

Cleanliness and hygiene habits: ��� million*
Promoting and Establishing Cleanliness andHygiene Habits through Educational Institutions(Lion Group)・Conducted educational and awareness activities
at preschools, kindergartens and elementary
schools to promote hand washing habits
・Conducted hygiene educational and awarenessactivities through JICA in Bangladesh
・Conducted the My Bottle Sticker Drawing
Contest (Expanded activities in the domain ofestablishing cleanliness and hygiene habits)(Japan)・Conducted the Replay Project for Cleanliness andthe My Bottle Campaign* Source: Lion survey

・Provide products and services that support theestablishment of hand cleanliness and hygiene habitsin daily living.
・Provide new customer experiences in all aspects ofdaily living through the provision of products andservices that protect customers from bacteria andviruses.
・Implement educational and awareness activities toestablish cleanliness and hygiene habits in all
aspects of daily living.

Provide opportunities foreveryone to practice oral
care whenever necessary
and foster oral care habits
to promotehealth for all.

Creating
Healthy Living
HabitsProgress (���� Results)

・Down ��% compared with ����(Figure after deducting purchases of carbon credits.
��% reduction if not deducted.)

Reduce CO� emissions
throughout productlifecycles.

Promoting
Environmental
Initiatives for a
Sustainable
PlanetIndicators (����)・CO� emissions throughout
business activities⇒Down ��% compared with���� levels(Absolute quantity)

Reduce CO� emissions
throughout businessactivities.

Promote theestablishment ofcleanliness and hygiene
habits that prevent
bacteria and viruses fromentering the body acrossall aspects of daily living,so that everyone can stayhealthy.

・Total number of persons
provided with products,
services and information
aimed at creating healthyliving habits⇒� billion(Oral care habits: ���million people, Cleanlinessand hygiene habits: ���million people)

Putting Preventive Dentistry Habits into
Practice(Japan)・Promoted greater frequency of tooth brushing��% of population brushed teeth after lunch(target for ����: ��%)・Promoted greater use of products other than
toothpastes and toothbrushes
��% of population used dental ﬂoss products(target for ����: ��%)* Source: Lion survey

14

Lion Sustainability Website 2024

Material Issues

PromotingDiversity andInclusion
Link

PromotingWork-Life
Enrichment
Link

Developing
Human Resources
Link

Improving
Employee Health
Link

S
Enhancing the
Occupational
SafetyManagement
SystemLink

Respecting
Human Rights
Link

Building
Responsible
Supply Chain
Management
Link

Pursuing
Customer
Satisfaction and
Trust
Link

Objectives

Indicators (����)Progress (���� Results)

Globally Common Measures to ����・Ratio of women in management: ��%・Employees who feel so: ��% (Japan)

・Provide opportunities for employees to deepen theirunderstanding of diverse values.
・Create systems and mechanisms for diverse humanresources to succeed professionally.

・Employees who feel thatlife outside of work (role athome and activities outside
the oﬃce) has a positive
impact on work
⇒��% or more

・��% (Japan)

・Create an environment that enables employees to fulﬁll
their life ambitions and achieve their ideal lifestyles.

・Employees who are using
diverse educational
programs (Lion Career
Village) for individualizedskill acquisition and ability
development
⇒���％

・��％

・Introduce e-learning system and curriculum that meetthe needs of overseas Group companies.
・Create mechanisms that will be used to provide content
for learning opportunities on an ongoing basis.

Support mental andphysical healthcare for
employees to reinforce
Group human resources andachieve sustainablecorporate growth.

・Employees getting dental
checkups⇒���％・Absenteeism⇒Improve from the ����level

・ Employees getting dental checkups:
��% (Japan)
Note: Calculation method under consideration
overseas
・ Absenteeism: �.�% (Lion Corporation in
Japan (Slightly up from ����)Note: Calculation method under consideration
overseas

Enhance systems to ensurecompliance withoccupational safety andhealth laws and regulations
and to enforce safety
awareness thoroughly forthe safety and peace ofmind of employees andoutside partners working
on site.

・Participation in safety
education and training⇒Implement as planned(���%) at work sites
・Compliance withoccupational safety andhealth laws and regulations
Serious accidents andincidents⇒Zero・Participation in training: ���% as planned
・Serious accidents and incidents: Zero・Use a self-administered daily oral care program andregular dental checkups to create an environment thatenables all employees to implement a PDCA cycle and toprovide information and learning opportunities regarding
oral self-care.
・Provide opportunities for management to learn about
checking the mental health of subordinates and for all
employees to learn about caring for their own mental
health.
・Improve health literacy by providing information thathelps employees understand their own health conditions
and future risks, as well as what preventative actions totake in their daily lives.

・Human rights due
diligence implementation
for material human rights
issues⇒���％・Human rights due diligence implementation
Lion Group: ���%Suppliers: ��%・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 that have been identiﬁed.
・Proactively disclose status of response to humanrights due diligence implementation

Implement sustainableprocurement with zerotolerance for human rights
and labor problems(including child labor andforced labor) or
environmental destruction
in line with the Sustainable
Material Procurement
Policy and Lion Group
Supplier CSR Guidelines.

・Procurement of third-party
certiﬁed paper and pulp
(FSC, PEFC, etc.) and palmoil, palm kernel oil andtheir derivatives(RSPO, etc.)⇒���%・Procurement of third-party
certiﬁed paper and pulp
(FSC, PEFC, etc.) and palmoil, palm kernel oil and theirderivatives (RSPO, etc.) fromsuppliers that support eﬀorts
aimed at zero deforestation⇒���%・Ratio of certiﬁed raw materials
procurement
Japan:
Certiﬁed paper and pulp: ��% (item ratio)
Certiﬁed palm oil and palm kernel oil
derivatives: ��% (based on key raw materials)
Lion Group:
Certiﬁed paper and pulp: ��% (item ratio)
Certiﬁed palm oil and palm kernel oil
derivatives: ��% (based on key raw materials)
・Ratio of suppliers supporting zerodeforestation
Japan: ��%, Lion Group: ��%・Create and promote a sustainable procurement system
in cooperation with suppliers

Promote and reinforce
customer-oriented businessactivities by improving
customer support quality
and the value of products
and services.

・Reﬂection of customer
opinions in all products andservices so that customers
will continue to choose them・Shared International VOC Report(Overseas, June and December ����)・Conducted two sessions of training to deal
with online controversy and backlash(Japan, June ����)・Commenced active communication via social
media (Japan, October ����)・ Evolve the activities of customer response departments
by steadily promoting three steps:
Understand the current situation, formulate plans,
and promote activities
・Create an environment for improving customer
relationships and expanding the range of problem
resolution methods.
・Create and implement a system for reﬂecting customer
feedback in products and services.

Enable human resources
with diverse values andideas to fully express theirindividuality and abilities
and succeed
professionally.
Create an environmentthat helps employees
fulﬁll their ambitions
through synergy between
work and private life.
Foster human resources
who generate dynamism
to realize innovative change
by creating environmentsthat enable all employees toexercise their diverse abilities
to the fullest and embracechallenges.

Ensure respect for thehuman rights of all
stakeholders aﬀected byGroup business activities,
in line with the LION Human
Rights Policy.

・Ratio of women in
management ��% or more
・Employees who feel that
employees with diverse
values are able to succeed
professionally⇒��% or more

15

・Provide opportunities to learn about safety and disasterprevention, and implement activities to promote
understanding of basic safety activities.
・Build mechanisms for exchanging safety information, andproactively disclose information on levels of workplacesafety based on the management of records ofoccupational accident frequency.

Lion Sustainability Website 2024

Material Issues

Promoting Risk
Management
Link

G

Reinforcing
Compliance
Link

Enhancing
Governance
Link

Objectives

Indicators (����)Progress (���� Results)

Globally Common Measures to ����Build a comprehensive andexhaustive risk management
system for identifying andquickly and appropriately
dealing with risks to achievesustainable corporate
growth.

・Disclosure of the results ofmonitoring signiﬁcantbusiness risks and progress 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 andimplement countermeasures.
・Share information on progress of response throughreports to the Board of Directors once a year.

Reinforce eﬀective initiatives
to instill complianceawareness and thus earn
and maintain the trust ofsociety.

・ Participation in complianceeducation and training
Implement as planned (���%)at work sites
・Serious compliance violations⇒Zero・Participation in training: ���% as planned
・Serious compliance violations: Zero

Build a sound, fair,transparent and highly
eﬀective governance system
to enable sustainablecorporate valueenhancement.

・ Disclosure of the results ofthe establishment andoperation of the internal
control system⇒At least once a year
・ Improvement in evaluations
from external organizations⇒Continuously improve from���� onward

・Disclosed once
・Continued activities to maintain or improve
evaluation compared with ����・Build and enhance a compliance system that includes
overseas Group companies.
・Further inculcate compliance through ongoing
implementation of management and employee training
and questionnaires, etc.
・Improve Group-wide risk perception and accelerate risk
response by designating compliance managers atoverseas Group companies and building a global hotline.

16

・Evaluate and disclose results of the operation of thecurrent internal control system.
・Clarify status of establishment of internal control systems
at overseas Group companies and evaluate theiroperation.
・Continuously and proactively disclose
governance-related non-ﬁnancial information.

Lion Sustainability Website 2024

Sustainability Material Issues, 2030 Objectives and Indicators,

2023 Results and Measures to 2030

1. Promoting Environmental Initiatives for a Sustainable Planet
3. Promoting Diversity and Inclusion
5. Developing Human Resources

4. Promoting Work-Life Enrichment

6. Improving Employee Health

7. Enhancing the Occupational Safety Management System
9. Building Responsible Supply Chain Management
11. Promoting Risk Management

2. Creating Healthy Living Habits

8. Respecting Human Rights

10. Pursuing Customer Satisfaction and Trust

12. Reinforcing Compliance

13. Enhancing Governance

Promoting Environmental Initiatives for a Sustainable Planet
Material Issue 1

Environment

Top-Priority Material Issues

Objectives
1
2
3

4
5

Reduce CO2 emissions throughout business activities.

Reduce CO2 emissions throughout product lifecycles.

Achieve a CO2 emissions reduction effect in excess of Lion’s own emissions to help

society become carbon negative.

Actively promote the 3Rs (reduce, reuse, recycle) and renewable activities.
Reduce water usage throughout product lifecycles.

Objectives

Reduce CO2 emissions throughout business activities.
Indicators (2030)
Progress(2023 results)

Globally Common Measures
to 2030

CO2 emissions throughout business activities⇒Down 55% compared with 2017 levels (Absolute quantity）

・ Down 39% compared with 2017

(Figure after deducting purchases of carbon credits. 29% reduction if
not deducted.)・ Reduce energy usage through energy-saving activities.
・ Purchase electricity generated by renewable energy sources.

Details

Together with the Environment

Reduce CO2 Emissions throughout Business Activities
ESG Data

17

Lion Sustainability Website 2024

Objectives

Reduce CO2 emissions throughout product lifecycles.

CO2 emissions throughout product lifecycles

Indicators (2030)
Progress(2023 results)⇒Down 30% compared with 2017 levels (Absolute quantity)

・ Up 3% compared with 2017

・ Reduce household CO emissions from product use through the2

Globally Common Measures
to 2030

provision of environmentally friendly products and services and thepromotion of environmentally friendly habits.

・ Reduce CO emissions at the stage of procurement through supplier2

engagement and the purchase of raw materials that generate low CO2
emissions.

Details

Together with the Environment

Reduce CO2 Emissions throughout Business Activities
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(2023 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 CO emissions through collaboration with2

other industry actors and companies.

・ Reduce household CO emissions through provision of environmentally2

friendly products and services.

Details
Together with the Environment

Reduce CO2 Emissions throughout Business Activities
ESG Data

18

Lion Sustainability Website 2024

Objectives

Actively promote the 3Rs (reduce, reuse, recycle) and renewable resource activities.
Indicators (2030)
Progress(2023 results)
Globally Common Measures
to 2030

Petrochemical-derived plastic use rate⇒70% or less

・ 96% (Japan)

Rate of containers and other packaging using sustainable materials:
3.9%

・ 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(2023 results)

Globally Common Measures
to 2030

Water usage throughout product lifecycles⇒Down 30% compared with 2017 levels (Per unit of net sales)
Down 13% compared with 2017
Reduce water usage by consumers through the provision of water-saving

products.

Details
Together with the Environment
Reducing Water Use
ESG Data

19

Lion Sustainability Website 2024

Creating Healthy Living Habits
Material Issue 2

HealthTop-Priority Material Issues

Objectives
1

2

Provide opportunities for everyone to practice oral care whenever necessary andfoster oral care habits to promote health for all.

Promote the establishment of cleanness and hygienic habits that prevent bacteria

and viruses from entering the body across all aspects of daily living, so thateveryone can stay healthy.

Objectives

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

Total number of persons provided with products, services andinformation aimed at creating healthy living habits⇒500 million

Oral care habits: 310 million*

Spreading Awareness of Preventive Dentistry Habits
Japan:

・ Began services supporting the oral care habits of corporate customers
and children (Okuchi Plus You and Okuchi-iku)

Overseas:

Progress(2023 results)

・ Conducted educational and awareness activities to promote theformation of good tooth brushing habits among kindergarten andelementary school children (implemented preventive dentistry habits)

Putting Preventive Dentistry Habits into PracticeJapan:

・ Promoted greater frequency of tooth brushing

37% of population brushed teeth after lunch (target for 2030: 50%)

・ Promoted greater use of products other than toothpastes andtoothbrushes
38% of population used dental floss products (target for 2030: 50%)

*Source: Lion survey

Globally Common Measures
to 2030

・ 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).

Details
Creating Healthy Living Habits

Initiatives to Establish Oral Care Habits

20

Lion Sustainability Website 2024

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)

Total number of persons provided with products, services andinformation aimed at creating healthy living habits⇒500 million

Cleanliness and good hygiene habits: 170 million*

Promoting and Establishing Cleanliness and Hygiene Habits through
Educational Institutions
Lion Group:

Progress(2023 results)

・ Conducted educational and awareness activities at preschools,

kindergartens and elementary schools to promote hand washinghabits・ Conducted hygiene educational and awareness activities through JICA
in Bangladesh・ Conducted the My Bottle Sticker Drawing Contest (Expanded activities
in the domain of establishing cleanliness and hygiene habits)

Japan:・ Conducted the Replay Project for Cleanliness and the My Bottle
Campaign*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

21

Lion Sustainability Website 2024

Promoting Diversity and Inclusion
Material Issue 3

Emplyoee

Objective

Enable human resources with diverse values and Ideas to fully express their individuality and abilities andsucceed professionally.
Indicators (2030)

・ Ratio of women in management ⇒ 30% or more・ Employees who feel that employees with diverse values are able tosucceed professionally ⇒ 80% or more

Progress(2023 results)
Globally Common Measures
to 2030

・ Ratio of women in management: 24%
・ Employees who feel so: 56% (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 and Inclusion

ESG Data

Promoting Work-Life Enrichment
Material Issue 4

Emplyoee

Objective

Create an environment that helps employees fulfill their ambitions through synergy between work andprivate life.

Indicators (2030)
Progress(2023 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
54% (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

ESG Data

22

Lion Sustainability Website 2024

Developing Human Resources
Material Issue 5

Emplyoee

Objective

Foster human resources who generate dynamism to realize innovative change by creating environmentsthat enable 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

Indicators (2030)

development⇒100％

Progress

57%(2023 results)

・ Introduce e-learning system and curriculum that meet the needs ofoverseas Group companies.

Globally Common Measures

・ Create mechanisms that will be used to provide content for learning

to 2030

opportunities on an ongoing basis.

Details

Together with Employees

Developing Human Resources

ESG Data

Improving Employee HealthMaterial Issue 6

Emplyoee

Objective

Support mental and physical healthcare for employees to reinforce Group human resources and achievesustainable corporate growth.
Indicators (2030)
Progress(2023 results)

・ Employees getting dental checkups ⇒100％
・ Absenteeism ⇒Improve from the 2021 level・ Employees getting dental checkups: 90% (Japan)

Note: Calculation method under consideration (overseas）

・ Absenteeism: 0.9% (Lion Corporation in Japan (Slightly up from 2021)
Note: Calculation method under consideration (overseas)・ Use a self-administered daily oral care program and regular dental
Globally Common Measures
to 2030

checkups to create an environment that enables 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.
23

Lion Sustainability Website 2024

Details
Together with Employees

Improving Employee Health

ESG Data

Enhancing the Occupational Safety Management System
Material Issue 7

Emplyoee

Objective

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(2023 results)
Globally Common Measures
to 2030

・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.

Details
Together with Employees

Enhancing the Occupational Safety Management System

24

Lion Sustainability Website 2024

Respecting Human Rights
Material Issue 8

Human Rights

Objective

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(2023 results)

Globally Common Measures
to 2030

Human rights due diligence implementation for material human rights

issues ⇒100％

・ Human rights due diligence implementation
Lion Group: 100%
Suppliers: 87%

・ 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
implementation.

Details
Respect for Human Rights

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

25

Lion Sustainability Website 2024

Building Responsible Supply Chain Management
Material Issue 9

Supply Chain

Objective

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)

・ 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:

Progress

Lion Group:(2023 results)

Certified paper and pulp: 75%(item ratio)
Certified palm oil and palm kernel oil derivatives: 99%(based on key raw materials)

Certified paper and pulp: 20%(item ratio)
Certified palm oil and palm kernel oil derivatives: 51%(based on key raw materials)

・ Ratio of suppliers supporting zero deforestation
Japan:

Lion Group:

Globally Common Measures
to 2030

54%
41%

Create and promote a sustainable procurement system in cooperation
with supplier

Details
Together with Supply Chains

Aiming for Sustainable Raw Material Procurement

ESG Data

26

Lion Sustainability Website 2024

Pursuing Customer Satisfaction and Trust
Material Issue 10

Customer

Objective

Promote and reinforce customer-oriented business activities by improving customer support quality andthe value of products and services.

Reflection of customer opinions in all products and services so that

Indicators (2030)

customers will continue to choose them・ Shared International VOC Report (Overseas, June and December 2023)
・ Conducted two sessions of training to deal with online controversy andProgressbacklash (Japan, June 2023)(2023 results)

・ Commenced active communication via social media (Japan, October2023)

・ Evolve the activities of customer response departments by steadily
Globally Common Measures
to 2030

promoting three steps: Understand the current situation, formulate
plans, and 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

GovernanceObjective

Build a comprehensive and exhaustive risk management system for identifying and quickly andappropriately dealing with risks to achieve sustainable corporate growth.
Indicators (2030)
Progress(2023 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

27

Lion Sustainability Website 2024

Reinforcing Compliance
Material Issue 12

GovernanceObjective

Reinforce effective initiatives to instill compliance awareness and thus earn and maintain the trust ofsociety.

・ Participation in compliance education and training ⇒Implement asplanned (100%) at work sites

Indicators (2030)

・ Serious compliance violations ⇒Zero・ Participation in training: 100% as planned
・ Serious compliance violations: Zero・ Build and enhance a compliance system that includes overseas Group

Progress(2023 results)

Globally Common Measures
to 2030

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.

Details

Compliance

ESG Data

Enhancing GovernanceMaterial Issue 13

GovernanceObjective

Build a sound, fair, transparent and highly effective governance system to enable sustainable corporate
value enhancement.
Indicators (2030)
Progress(2023 results)

Globally Common Measures
to 2030

Details

・ 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
・ Continued activities to maintain or improve evaluation compared with2022

・ 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.

Basic Approach to Corporate Governance28

Lion Sustainability Website 2024