Social: Business Partners

Initiatives Geared toward Sustainable Supply Chains
Lion’s Action

In accordance with the “Lion Group Charter for Corporate Behavior” and the “Behavioral Guidelines,” we have made efforts to “engage in fair, transparent, and free competition and proper transactions” while “maintaining sound and proper relationships with governmental and political bodies” and are aiming to build sustainable supply chains.

Promotion of Sustainability with Material Suppliers and Outsourcing Contractors

PDCA cycle for CSR self-checks by suppliers

The Company requires material suppliers and outsourcing contractors to carry out annual self-checks based on the “Lion Group Supplier CSR Guidelines” in order to facilitate responsible procurement activities. Specifically, we have been enhancing the systems designed to prevent risks from occurring in supply chains with regard to five areas: human rights/labor practices; the environment; fair operating practices; consumer issues; and compliance.

Since 2014, we have made it possible to conduct the above-mentioned self-checks online so that our business partners can conduct self-checks more efficiently. In addition, by sending feedback based on the results to our business partners, we have put in place a system to continuously promote sustainable procurement.

When we commence procurement through suppliers, we build a flexible and efficient logistics system by integrating our supply chain management (SCM) functions with those of the business partners.

Aiming for Sustainable Procurement of Palm Oil

We are actively promoting the utilization of plant-derived materials that are carbon neutral. As one of the plant-derived materials, we are using derivatives of palm oil, an oil that is globally produced in the largest quantities.

Since palm oil plants are highly productive, production volumes are increasing with each passing year. However, a number of issues, such as the logging of tropical forests for the development of new farms leading to a shrinking of wildlife habitats, have risen at the production sites, as a result of the sudden explosion of production. Also, due to inappropriate farming operations, a number of labor management-related issues have arisen.

Since 2006, Lion has been a member of the Roundtable on Sustainable Palm Oil (RSPO), which attempts to solve all the above-mentioned issues. In 2012, Lion Chemical Co., Ltd.’s Oleochemical production site passed the supply chain certification system inspection and was certified as a plant that is allowed to handle RSPO-certified palm oil. In fiscal 2017, we continued the purchase of RSPO-certified palm oil derivatives to achieve the 2020 target.

We will continue with our efforts to procure sustainable palm oils in the years to come.

Target
2020: All palm oil derivatives to be RSPO-certified