Lion : Sustainability (6.0MB)

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 through its 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 will synergistically address its sustainability material issues and advance its three growth strategies in order to contribute to the realization of a sustainable society and achieve business growth.

	The Vision	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 and established the Sustainability Promotion Council, which meets twice a year.

We have established three subcommittees under the council, each headed by an executive officer, positioning top management at the forefront of promoting Sustainability Material Issues more than ever before. 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 for many 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 and demonstrates leadership in dealing with investments, risk and progress management, among other issues. The president, the director in charge of 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, the more often we are able to come up with various innovative ideas. Going forward, 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 a sustainable society by redesigning habits.

Atsuko Suzuki

External Audit & Supervisory

Board Member

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Value Creation Process

Lion positions its purpose, "Make a difference in everyday lives by redesigning habits: ReDesign," at the core of management. To achieve the management vision, "Becoming an advanced daily healthcare company," we are leveraging the strength of our capital to synergistically reinforce initiatives to address the sustainability material issues and advance

growth strategies under the Vision long-term strategic framework. We will also accelerate growth, primarily in four fields of value creation. By providing products and services unique to Lion that help redesign habits, we aim to generate social and economic value and invest（capital reinvestment and distribution） in future growth, creating a cycle that will increase corporate value over the medium to long term.

Sustainability Material Issues and Objectives for	Results of the 2020 Sustainability Material
2030	Issues

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 the realization 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 a competitive advantage. In addition, we revised our objectives and other indicators in 2021 due to the COVID- 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 and contributing 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 the needs of society and customers and grow its businesses. In 2021, in light of the COVID- pandemic and changes in the social 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 contribute to the realization of a sustainable society and achieve further business growth.

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