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Together with the Environment Reduce CO2 Emissions throughout Business Activities

Sustainability Material Issues 1 Promoting Environmental Initiatives for a Sustainable Planet

Top-Priority Material Issues

Objectives
Reduce CO2 emissions throughout business activities.

Indicators (2030) CO2 emissions throughout business activities
⇒Down 55% compared with 2017 levels (Absolute quantity)
Progress
(2022 results)
Down 14% compared with 2017
(Figure after deducting purchases of carbon credits. 4% reduction if not deducted)
Globally Common Measures to 2030
  • Reduce energy usage through energy-saving activities.
  • Purchase electricity generated by renewable energy sources.

* The historical data contained an error, which has been corrected in the figures.

Objectives
Reduce CO2 emissions throughout product lifecycles.

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
(2022 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
Promote actively the 3Rs (reduce, reuse, recycle) and renewable activities.

Objectives
Reduce water usage throughout product life cycles

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Promotion of Energy Conservation Activities

In 2021, the Lion Group raised the target of reducing CO2 emissions from its business activities from a 30% reduction (compared to 2017) to a 55% reduction by 2030 (compared with 2017). As the first part of efforts to achieve our CO2 emissions reduction target, we are implementing thoroughgoing energy-saving activities at our various plants, offices and other facilities in Japan and overseas to increase energy efficiency.
Our production divisions consume higher amounts of energy, but are aiming to reduce CO2 emissions by 1% or more per unit of production every year through energy-saving activities such as improving productivity and adopting high-efficiency equipment while working to reduce energy loss from utilities in such forms as steam and pressurized air and by recovering heat to save energy. In addition, our offices have set up power-saving projects as they strive to save energy.

When constructing new buildings, such as plants and employee facility buildings, we strive to implement energy-efficient facility design to reduce energy consumption. The Lion Group moved to its new headquarters (Kuramae, Taito-ku, Tokyo) in January 2023, and the building acquired the “S Rank” certification of the CASBEE-Smart Wellness Office system in 2021, which certifies a building’s wellness performance and overall environmental performance. In the future, by comprehensively understanding the energy consumption status of all plants, we will discover more ways to conserve energy and achieve further energy savings.

Going forward, we will continue to advance measures to further reduce CO2 emissions.

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CASBEE Smart Wellness Office S Rank certification of the new Lion headquarters
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New employee facility building at the Lion Chemical Corporation Oleochemical Production Site (LCCOC)
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Energy efficiency label at the new LCCOC employee facility building

Received Commendation from the Director-General of the Kanto Bureau of Economy, Trade and Industry for Two Consecutive Years for Excellence in Energy Management

Lion received the Kanto Bureau of Economy, Trade and Industry Director-General’s Award for Excellence in Energy Management in fiscal 2019 as an excellent business operator that has made notable contributions to energy conservation. This award was given for Lion’s former headquarters building, following the award given for our former Tokyo office building in the previous year. Lion was rated highly for its efforts to reduce energy consumption by utilizing BEMS (Building Energy Management System) data during the relevant period (April 2014 to March 2019) to understand the status and ensure the proper operation of each piece of equipment within the building and by implementing detailed energy management. (Relevant location: former headquarters building)

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Award ceremony for fiscal 2019

Received the Osaka Prefectural Governor’s Award in the Osaka Stop Global Warming Awards for Contributions to the Prevention of Global Warming

Lion previously received the Osaka Prefectural Governor’s Award, sponsored by the Osaka Prefectural Government, in 2018 as the most outstanding business operator in terms of efforts to prevent global warming.
The Osaka Plant (Sakai City) was recognized for its excellent overall efforts to reduce greenhouse gas emissions through energy-saving activities with the participation of all employees, reduction of energy consumption by changing manufacturing processes and types of production, introduction of energy-saving facilities and equipment, and improvement of equipment operations. (Relevant locations: Osaka Plant and Osaka Office)

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Osaka Stop Global Warming Award

CO2 Emissions in Business Activities (Domestic and Overseas)

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* The historical data contained an error, which has been corrected in the figures.

* Excludes carbon credit purchases. Including these, the amount is 159 thousand tons and 96%.

ESG Data

Utilizing Renewable Energy

The Lion Group is committed to implementing thorough energy-saving activities but does not expect these to be sufficient to meet its CO2 emission reduction targets. To make up the difference, it will be necessary to utilize renewable energy by such means as installing facilities to generate solar power for in-house use and switching to purchasing electricity from renewable sources.

Introduction of Solar Power Generation System for In-House Consumption

We have already installed facilities to generate solar power for in-house use at the Hirai Office Site. In 2021, we additionally installed such facilities at LCCOC. Overseas, in the same year, a new solar power generation facility was installed and began operation in the building of the new drying tower added to Lion Corporation (Thailand) Ltd. (LCT). We intend to further increase the amount of solar power generated and increase renewable electricity procurement.

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Solar power generation facility at the Hirai Research Center
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Solar power generation facility at LCCOC
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Exterior view of the new drying tower building at LCT

Switching to Renewables for Purchased Electricity

Lion has changed over its power contracts to power companies that supply 100% renewably sourced energy . As a result, all domestic plants have been using renewable energy since January 2023 as has the new headquarters since April 2023 (partially using J-Credits ).

We began by utilizing renewable energy and green power certificates at our domestic offices, and were able to eventually realize our goal of converting all our offices’ electricity consumption to that from renewable sources in May 2023. In addition, at Lion’s overseas operating sites, we are gradually advancing the switch to renewable energy, and aim to purchase 100% renewable energy across all of Lion’s operating sites by 2030.

Carbon Offsetting

Lion Corporation (Thailand) Ltd. has purchased T-VER*(derived from solar powerX), a carbon offsetting credit, to offset the CO2 from its electricity purchases for 2022.

* T-VER is a credit system operated by a Thai public organization.

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