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Sustainability Material Issues, 2030 Objectives and Indicators, 2023 Results and Measures to 2030

Promoting Environmental Initiatives for a Sustainable Planet

Objectives
Reduce CO2 emissions throughout business activities.

Indicators (2030) CO2 emissions throughout business activities
⇒Down 55% compared with 2017 levels (Absolute quantity)
Progress
(2023 results)
  • Down 39% compared with 2017
    (Figure after deducting purchases of carbon credits. 29% reduction if not deducted.)
Globally Common Measures to 2030
  • Reduce energy usage through energy-saving activities.
  • Purchase electricity generated by renewable energy sources.

Objectives
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 2030
  • Reduce household CO2 emissions from product use through the provision of environmentally friendly products and services and the promotion of environmentally friendly habits.
  • Reduce CO2 emissions at the stage of procurement through supplier engagement and the purchase of raw materials that generate low CO2 emissions.

Objectives
Achieve a CO2 emissions reduction effect in excess of Lion’s own emissions to help society become carbon negative.

Indicators (2030) Contribute to a CO2 emission reduction effect in excess of Lion’s own emissions (Japan)
Progress
(2023 results)
Plan to formulate actions and KPIs and verify their effectiveness
Globally Common Measures to 2030
  • Reduce society’s overall CO2 emissions through collaboration with other industry actors and companies.
  • Reduce household CO2 emissions through provision of environmentally friendly products and services.

Objectives
Actively promote the 3Rs (reduce, reuse, recycle) and renewable resource activities.

Indicators (2030) Petrochemical-derived plastic use rate⇒70% or less
Progress
(2023 results)
  • 96% (Japan)
    Rate of containers and other packaging using sustainable materials: 3.9%
Globally Common Measures to 2030
  • Reduce usage of petrochemical-derived materials through the increased 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.

Objectives
Reduce water usage throughout product lifecycles

Indicators (2030) Water usage throughout product lifecycles
⇒Down 30% compared with 2017 levels (Per unit of net sales)
Progress
(2023 results)
Down 13% compared with 2017
Globally Common Measures to 2030 Reduce water usage by consumers through the provision of water-saving products.

Creating Healthy Living Habits

Objectives
Provide opportunities for everyone to practice oral care whenever necessary and foster oral care habits to promote health for all.

Indicators (2030) Total number of persons provided with products, services and information aimed at creating healthy living habits
⇒500 million
Progress
(2023 results)

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:

  • Conducted educational and awareness activities to promote the formation of good tooth brushing habits among kindergarten and elementary school children (implemented preventive dentistry habits)

Putting Preventive Dentistry Habits into Practice

Japan:

  • 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 and toothbrushes
    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 establishing preventive dentistry and better oral care habits.
  • Promote activities to address personal and social challenges through oral care(Inclusive Oral Care).

Objectives
Promote the establishment of cleanliness and hygiene habits that prevent bacteria and viruses from entering the body across all aspects of daily living, so that everyone can stay healthy.

Indicators (2030) Total number of persons provided with products, services and information aimed at creating healthy living habits
⇒500 million
Progress
(2023 results)

Cleanliness and good hygiene habits: 170 million*

Promoting and Establishing Cleanliness and Hygiene 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 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 hand cleanliness and hygiene habits in daily living.
  • Provide new customer experiences in all aspects of daily living through the provision of products and services that protect customers from bacteria and viruses.
  • Implement educational and awareness activities to establish cleanliness and hygiene habits in all aspects of daily living.

Promoting Diversity and Inclusion

Material Issue 3
Emplyoee

Objective
Enable human resources with diverse values and Ideas to fully express their individuality and abilities and succeed professionally.

Indicators (2030)
  • Ratio of women in management ⇒ 30% or more
  • Employees who feel that employees with diverse values are able to succeed professionally ⇒ 80% or more
Progress
(2023 results)
  • Ratio of women in management: 24%
  • Employees who feel so: 56% (Japan)
Globally Common Measures to 2030
  • Provide opportunities for employees to deepen their understanding of diverse values.
  • Create systems and mechanisms for diverse human resources to succeed professionally.

Promoting Work-Life Enrichment

Material Issue 4
Emplyoee

Objective
Create an environment that helps employees fulfill their ambitions through synergy between work and private life.

Indicators (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
Progress
(2023 results)
54% (Japan)
Globally Common Measures to 2030 Create an environment that enables employees to fulfill their life ambitions and achieve their ideal lifestyles.

Developing Human Resources

Material Issue 5
Emplyoee

Objective
Foster human resources who generate dynamism to realize innovative change by creating environments that enable all employees to exercise their diverse abilities to the fullest and embrace challenges.

Indicators (2030) Employees who are using diverse educational programs (Lion Career Village) for individualized skill acquisition and ability development⇒100%
Progress
(2023 results)
57%

Globally Common Measures to 2030
  • Introduce e-learning system and curriculum that meet the needs of overseas Group companies.
  • Create mechanisms that will be used to provide content for learning opportunities on an ongoing basis.

Improving Employee Health

Material Issue 6
Emplyoee

Objective
Support mental and physical healthcare for employees to reinforce Group human resources and achieve sustainable corporate growth.

Indicators (2030)
  • Employees getting dental checkups ⇒100%
  • Absenteeism ⇒Improve from the 2021 level
Progress
(2023 results)
  • 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)

Globally Common Measures to 2030
  • Use a self-administered daily oral care program and regular dental checkups to create an environment that enables all employees to implement a PDCA cycle and to provide 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 that helps employees understand their own health conditions and future risks, as well as what preventative actions to take in their daily lives.

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)
  • 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
Progress
(2023 results)
  • Participation in training: 100% as planned
  • Serious accidents and incidents: Zero
Globally Common Measures to 2030
  • 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.

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) Human rights due diligence implementation for material human rights issues ⇒100%
Progress
(2023 results)
  • Human rights due diligence implementation
    Lion Group: 100%
    Suppliers: 87%
Globally Common Measures to 2030
  • 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 human rights due diligence implementation.

Building Responsible Supply Chain Management

Material Issue 9
Supply Chain

Objective
Implement sustainable procurement with zero tolerance for human rights and labor problems (including child 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.) from suppliers that support efforts aimed at zero deforestation ⇒100%
Progress
(2023 results)
  • Ratio of certified raw materials procurement
    Japan:
    Certified paper and pulp: 75%
    (item ratio)
    Certified palm oil and palm kernel oil derivatives: 99%
    (based on key raw materials)
    Lion Group:
    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:
    54%
    Lion Group:
    41%
Globally Common Measures to 2030 Create and promote a sustainable procurement system in cooperation with supplier

Pursuing Customer Satisfaction and Trust

Material Issue 10
Customer

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

Indicators (2030) Reflection of customer opinions in all products and services so that customers will continue to choose them
Progress
(2023 results)
  • Shared International VOC Report (Overseas, June and December 2023)
  • Conducted two sessions of training to deal with online controversy and backlash (Japan, June 2023)
  • Commenced active communication via social media (Japan, October 2023)
Globally Common Measures to 2030
  • 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.

Promoting Risk Management

Material Issue 11
Governance

Objective
Build a comprehensive and exhaustive risk management system for identifying and quickly and appropriately dealing with risks to achieve sustainable corporate growth.

Indicators (2030) Disclosure of the results of monitoring significant business risks and progress in implementing reduction measures ⇒At least once a year
Progress
(2023 results)
Disclosed once
Globally Common Measures to 2030
  • 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 the Board of Directors once a year.

Reinforcing Compliance

Material Issue 12
Governance

Objective
Reinforce effective initiatives to instill compliance awareness and thus earn and maintain the trust of society.

Indicators (2030)
  • Participation in compliance education and training ⇒Implement as planned (100%) at work sites
  • Serious compliance violations ⇒Zero
Progress
(2023 results)
  • Participation in training: 100% as planned
  • Serious compliance violations: Zero
Globally Common Measures to 2030
  • 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 at overseas Group companies and building a global hotline.

Enhancing Governance

Material Issue 13
Governance

Objective
Build a sound, fair, transparent and highly effective governance system to enable sustainable corporate value enhancement.

Indicators (2030)
  • Disclosure of the results of the establishment and operation of the internal control system ⇒At least once a year
  • Improvement in evaluations from external organizations ⇒Continuously improve from the 2020 onward
Progress
(2023 results)
  • Disclosed once
  • Continued activities to maintain or improve evaluation compared with 2022
Globally Common Measures to 2030
  • 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 non-financial information.

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