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Sustainability Material Issue 1 Promoting Environmental Initiatives for a Sustainable Planet
Reduce CO2 emissions throughout business activities.
Reduce CO2 emissions throughout product lifecycles.
| Indicators (2030) | CO2 emissions throughout product lifecycles ⇒Down 30% compared with 2017 levels (Absolute quantity) |
|---|---|
| Progress (2023 results) |
Up 3% compared with 2017 |
| Globally Common Measures to Implement by 2030 |
|
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
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 Objectives and Indicators for 2030
Lion Group recognizes that understanding greenhouse gas (GHG) emissions throughout the supply chain is important to realizing 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 2023, our Scope 1, 2 and 3 emissions totaled 4,65 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 (2023)
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Scope 1 | 21 | 19 | 21 | 21 | 20 |
| Scope 2 | 50 | 48 | 52 | 52 | 15 |
| Total | 70 | 67 | 74 | 73 | 35 |
| Carbon credits purchased | 0 | 0 | 0 | 0 | 0 |
Notes:
Scope 1: Direct emissions from operating sites
Scope 2: Indirect emissions from the generation of purchased energy (electricity generation, etc.)
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Scope 1 | 44 | 47 | 56 | 49 | 43 |
| Scope 2 | 43 | 42 | 22 | 36 | 38 |
| Total | 87 | 89 | 78 | 85 | 82 |
| Carbon credits purchased | 0 | 0 | 0 | 16 | 16 |
Notes:
Scope 1: Direct emissions from operating sites
Scope 2: Indirect emissions from the generation of purchased energy (electricity generation, etc.)
* The historical data contained an error, which has been corrected in the figures.
The Lion Group was included for a fifth consecutive year as a Supplier Engagement Leader, a select 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 that complete and return the CDP climate change questionnaire. The companies that receive the highest 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 2023, 458 companies including Lion (109 Japanese companies) were selected as Supplier Engagement Leaders.
Lion works to reduce CO2 emissions and energy consumption intensity through the following efforts.
Lion’s overall modal shift rate in 2023 declined year on year. The modal shift rate for intra-company transport was 9.3% (compared with 10.5% in 2022).
Annual CO2 emissions from logistics came to 22,013 tons, up 1.4% year on year. Energy consumption intensity increased 10.8% compared with the previous year, for a five-year average annual increase of 0.9%, falling short of Lion’s target average annual reduction of 1% or more. We will continue efforts in these areas going forward.
The Eco Rail Mark system was created by the Ministry of Land, Infrastructure and Transport to certify companies and products that use rail freight transport for a certain portion of product shipment. 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 2023. The certified Lion products are listed in the Eco Rail Mark pamphlet published by the Railway Freight Association and introduced on the website of the Ministry of Land, Infrastructure, Transport and Tourism.
The following four products are certified (as of November 2023).
To address to the “2024 problem” in logistics and reduce our environmental impact, we have reassessed our packaging design for logistics resources with four other companies in different industries, and switched to the use of trailers for transportation.
By switching from individual product shipping to palletized transport, we aim to curb loading inefficiencies.
As a result of these efforts, Lion and the other companies jointly received the top MLIT Minister’s Award for Green Logistics Partnership in the FY2023 Excellent Logistics Partnership Commendation Program.
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 data interchange (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 Institute of Japan, the membership of which comprises industry manufacturers and the logistics businesses responsible for their deliveries. We are leading the establishment of an industry-wide supply chain standard model, in cooperation with other manufacturers and logistics businesses. Through these initiatives, we aim to improve work environments, improve labor productivity and reduce environmental burden while building sustainable, resilient supply chains.
Aiming for inspection-free logistics using ASN
