Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), GRI Sustainability Reporting Standards, ISO 26000: 2010

Environmental Metrics

ESG Focus Areas

• Governance
• Compliance
• Risk Management
• Sustainability

Governance Achievements

• Established the Basic Corporate Governance Policy
• Established the Nomination Advisory Committee
• Established the Independent Officer System
• Established the Compensation Advisory Committee
• Established the External Director System
• Established the Executive Officer System
• Established the Management Evaluation Committee (now the Advisory Committee)
• Implemented the AL Heart Hotline whistle-blowing system with 99.5% employee recognition rate in 2020.
• Established the LION Anti-Bribery Principles.

Climate Goals & Targets

Environmental Challenges

• Securing and developing necessary human resources.
• Information leaks, system paralysis.
• Serious legal or regulatory violations.
• Inappropriate comments on social media.
• Exchange rate risks.
• Major lawsuits.
• Novel influenza and other infectious diseases.
• Major earthquakes and other natural disasters.
• Climate change and other environmental changes.

Mitigation Strategies

• Year-round hiring and expanding specialized human resources.
• Countermeasures to system problems in Information Security Regulations.
• Lion Group Charter for Corporate Behavior and Behavioral Guidelines with periodic employee education.
• Lion Group Social Media Policy and employee education.
• Careful monitoring of exchange rates and hedging.
• Thorough legal compliance, clear contract terms, and intellectual property management.
• Infection prevention measures and epidemic response measures.
• Organizational response system based on the “Manual on Countermeasures for Earthquake Disasters”, drills, and Business Continuity Plan (BCP).
• LION Eco Challenge 2050 environmental objectives.

Supply Chain Management

Responsible Procurement

• Use of interchangeable materials, purchasing from multiple sources, global procurement, and Procurement Principles.

Climate-Related Risks & Opportunities

Physical Risks

• Major earthquakes and other natural disasters.

Transition Risks

• Climate change and other environmental changes.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions throughout business activities
• Reduced CO2 emissions throughout product lifecycles
• Achieved a CO2 emissions reduction effect in excess of Lion’s own emissions to help society become carbon negative
• Actively promoted the 3Rs (reduce, reuse, recycle) and renewable activities
• Reduced water usage throughout product lifecycles

Social Achievements

• Provided opportunities for everyone to practice oral care and foster oral care habits
• Promoted the establishment of hygienic habits that prevent bacteria and viruses
• Enabled human resources with diverse values to fully express their individuality
• Created an environment that helps employees fulfill their ambitions through synergy between work and private life
• Fostered human resources who generate dynamism to realize innovative change

Governance Achievements

• Enhanced systems to ensure compliance with occupational safety and health laws and regulations
• Ensured respect for the human rights of all stakeholders
• Implemented sustainable procurement with zero tolerance for human rights and labor problems
• Promoted and reinforced customer-oriented business activities
• Built a comprehensive risk management system

Climate Goals & Targets

Environmental Challenges

• Growing realization that addressing ESG-related issues is directly connected to corporate value over the medium to long term
• Need to disclose non-financial information more effectively
• Challenge to convey to society and the market what Lion does and how it contributes to a sustainable society

Mitigation Strategies

• Established the Sustainability Promotion Council
• Improved the accessibility of the corporate website
• Launched a social media risk management manual

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Material Procurement Policy
• Lion Group Supplier CSR Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 14001

Third-party Assurance: SGS Japan Inc.

UN Sustainable Development Goals

• SDG 3: Ensure healthy lives and promote well-being for all at all ages

Through its products and services

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Supplier Engagement Leaderboard
• Health & Productivity Stock Selection
• White 500 Company
• Japan Sports Agency’s Sports Yell Company
• Sustainability Site Awards

Environmental Metrics

ESG Focus Areas

• Creating Healthy Living Habits
• Promoting Environmental Initiatives for a Sustainable Planet
• Promoting Diversity and Inclusion
• Promoting Work-Life Enrichment
• Developing Human Resources
• Improving Employee Health
• Enhancing the Occupational Safety Management System
• Respecting Human Rights
• Building Responsible Supply Chain Management
• Pursuing Customer Satisfaction and Trust
• Promoting Risk Management
• Reinforcing Compliance
• Enhancing Governance

Environmental Achievements

• Reduced CO2 emissions throughout business activities by 39% compared with 2017 levels (after deducting purchases of carbon credits; 29% reduction if not deducted).
• Reduced water usage throughout product lifecycles by 13% compared with 2017 levels (per unit of net sales).
• 82% of Lion’s household product sales were from environmentally friendly products that meet the Lion eco-standard in 2023.
• All domestic plants achieved zero waste emissions in 2017.

Social Achievements

• Provided products, services, and information aimed at creating healthy living habits to 480 million people (oral care habits: 310 million, cleanliness and hygiene habits: 170 million).
• Increased the ratio of women in management to 24%.
• 57% of employees used diverse educational programs for individualized skill acquisition and ability development.
• 90% of employees in Japan received dental checkups.

Governance Achievements

• Disclosed the results of the establishment and operation of the internal control system.
• Disclosed the results of monitoring significant business risks and progress in implementing reduction measures.
• Zero serious compliance violations.

Climate Goals & Targets

Environmental Challenges

• Climate change presents serious future risks to corporate management.
• Increased cost of raw materials (fossil fuel-derived, palm oil-derived, plant-derived, etc.)
• Increased cost of packaging and containers (plastic-derived, aluminum-derived, timber resource-derived, etc.)
• Physical risks such as increased average temperature, changes in precipitation and weather patterns, and increased severity of extreme weather events.

Mitigation Strategies

• Implementing thorough energy-saving activities at various plants, offices, and facilities.
• Utilizing renewable energy (solar power generation, switching to purchasing electricity from renewable sources).
• Replacing raw materials with plant-based materials.
• Reinforcing business continuity planning and supply chain data coordination.
• Developing products that help reduce emissions during product use.
• Reducing the use of petroleum-derived plastic and procuring RSPO-certified palm oil and palm kernel oil derivatives.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable raw material procurement (e.g., RSPO-certified palm oil, FSC-certified paper and pulp).
• Supplier engagement to reduce Scope 3 emissions.

Climate-Related Risks & Opportunities

Physical Risks

• Increased average temperature
• Changes in precipitation and weather patterns
• Increased severity of extreme weather events

Transition Risks

• Introduction of a carbon tax
• Increased cost of raw materials
• Increased cost of packaging and containers

Opportunities

• Expansion of markets for sustainable products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 6 (Clean Water and Sanitation)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Not disclosed

Sustainable Products & Innovation

• Water-saving products (NANOX one, Acron Smart Care, CHARMY Magica Quick Dry +)
• Products with the “eco Lion” mark
• Products using recycled and plant-based plastics

Awards & Recognition

• Kanto Bureau of Economy, Trade and Industry Director-General’s Award for Excellence in Energy Management (2019)
• New Technology Encouragement Award from the Japan Society on Water Environment (2017)
• Responsible Care Award from the Japan Chemical Industry Association (2017)
• MLIT Minister’s Award for Green Logistics Partnership (2023)
• 2022 Award for Companies Promoting Cancer Control
• 2023 Partner Award for the Promotion of Cancer Control
• Tokyo Sports Promotion Company 2023
• Sports Yell Company 2024