Since the Industrial Revolution, rising emissions of CO2 and other greenhouse gases (GHGs) have contributed to global warming. The impact of global warming-driven climate change on people and ecosystems is expected to become increasingly severe, coming in such forms as more frequent heavy rains, flooding and other natural disasters, dwindling food and water resources, extreme heat, and outbreaks of infectious disease.
The Lion Group conducts businesses that utilize natural resources, such as oil palm and pulp and paper, and therefore recognizes global warming as major risk to its operations.
The Paris Agreement, aimed at mitigating climate change and transitioning to a decarbonized society, came into effect in 2016. The agreement includes the shared global long-term targets of limiting the average global temperature increase to well below 2°C (the “well below 2°C target”) and of pursuing efforts to limit the increase to 1.5°C. In support of the targets of the Paris Agreement, in June 2019, Lion set the long-term CO2 emissions reduction targets of a 30% reduction by 2030 compared with 2017 and net zero by 2050. In 2020, one of Lion’s targets was validated by the Science Based Targets (SBT) initiative as being aligned with the well below 2°C target.
Furthermore, in May 2019, Lion endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
In May 2021, the LION Group took into consideration such social trends as the Japanese government’s increase in its 2030 greenhouse gas emission reduction target from 26% to 46% (compared to 2013). Based on this, to help realize the common global goal of limiting the temperature increase from pre-industrial times to within 1.5°C, we raised the 2030 CO2 reduction target under the LION Eco Challenge 2050 for business site activities from 30% to 55% (compared to 2017).
To speed up the achievement of this goal, we also decided to switch the sourcing of all of the Group’s purchased electricity to renewable energy sources by 2030. Furthermore, to facilitate capital expenditure on decarbonization, we introduced the Internal Carbon Pricing (ICP) system, which virtually converts CO2 emissions into costs based on our own criteria, thus securing a reference for environmental investment decisions.
Based on its Environmental Policy and the LION Eco Challenge 2050, the Lion Group strives to reduce GHG emissions in its business activities and to contribute to decarbonization by providing environmentally friendly products and services in addition to promoting eco-friendly habit creation together with consumers. Through such efforts, we will contribute to the mitigation of climate change.
The Lion group is working to reduce GHG emissions at all stages, from raw material procurement to consumer disposal. We will continue to promote efforts toward the realization of a Decarbonized Society.