Lion is taking on the challenge of resolving issues related to decarbonization by focusing not only on reducing CO2 emissions at its business sites but also on reducing CO2 emissions throughout the product life cycle from raw material procurement to disposal by consumers, as part of its producer responsibility.
LION Eco Challenge 2050 and Targets and Indicators for 2030
Lion Group recognizes that understanding greenhouse gas (GHG) emissions throughout the supply chain is important to realizing a decarbonized society. Accordingly, since 2013, we have calculated GHG emissions throughout the supply chain based on the GHG Protocol Scope 3 standard. In fiscal 2021, our Scope 1, 2 and 3 emissions totaled 4.93 million t-CO2.
Going forward, we will continue to promote and develop products that help reduce emissions during product use, a stage that accounts for a large portion of product life cycle GHG emissions. By doing so, we will work to reduce GHG emissions.
In 2020, the Lion Group was included for a third consecutive year as a Supplier Engagement Leader, a select list of the highest rated companies under the Supplier Engagement Rating (SER) of the CDP, an international non-profit organization that provides systems for environmental information disclosure.
The SER is based on the CDP climate change questionnaire items about governance, targets, value chain (scope 3) emissions and supplier engagement strategies. The rating examines more than 5,600 companies around the world. The companies that receive the highest ratings for their actions and strategies to reduce greenhouse gas emissions and manage climate risk in their supply chains are selected for inclusion in the list of Supplier Engagement Leaders. In 2021, about 4,500 companies including Lion (105 Japanese companies including Lion) were selected as Supplier Engagement Leaders.
Lion works to reduce CO2 emissions and energy consumption intensity through the following efforts.
As a result of increased truck transport attributable mainly to urgent transport related to the COVID-19 pandemic as well as decreases in rail transport due to natural disasters, Lion’s modal shift rates in 2021 declined year on year. The modal shift rate for intra-company transport was 11.2% (compared with 13% in 2020) and that for long-distance transport over distances exceeding 500 km was 37% (compared with 41% in 2020).
Although modal shift rates decreased, by using larger transport trucks and improving logistics efficiency regarding such factors as loading ratios, annual CO2 emissions from logistics came to 21,859 tons, up 2% year on year. Energy consumption intensity decreased 3.0% compared with the previous year, for a five-year average increase of 2.9%, falling short of Lion’s target average annual reduction of 1% or more. Going forward, we will continue working toward this target.
「The Eco Rail Mark system was created by the Ministry of Land, Infrastructure and Transport to certify companies and products that use rail freight transport for a certain portion of product shipment. Because distribution processes are typically opaque to consumers, the Eco Rail Mark is a useful means for companies to indicate that they use or their products are shipped using environmentally friendly rail freight transport.
Lion’s Eco Rail Mark certification was renewed in 2019. The certified Lion products are listed in the Eco Rail Mark pamphlet published by the Railway Freight Association as well as in its advertisements posted in train cars.
The following seven products are certified as surpassing the 30% rail freight transport rate required for product certification (as of March 2021).
In October 2020, Lion and Kao Corporation commenced regular joint two-way transportation between their respective operating sites. This initiative is expected to significantly reduce CO2 emissions.* At the same time, by making long-distance transport more efficient, the initiative is helping to reduce the burden on drivers. Going forward, by expanding joint logistics and improving labor conditions using relay transportation, we will work to improve logistics environments based on mutual understanding and cooperation with our trading partners and logistics contractors.
* 45% reduction in CO2 emissions (total for both companies, compared to previous transportation methods)
In the field of logistics data platforms, Lion is taking a leading role in solving logistics challenges facing the household consumer product industry. Lion collaborated with PLANET, INC., which operates a commercial logistics electronic data interchange (EDI), a logistics information infrastructure for the industry. Furthermore, Lion carried out demonstrations of the use of advanced shipping notices (ASNs) to digitize receipts and simplify inspections, and is rolling out the use of ASNs sent to wholesalers for individual delivery trucks.
We are also involved in activities to improve the efficiency and standardization of business processes at logistics sites, including the Study Group for Logistics Productivity in the Supply Chain sponsored by the Distribution Economics Institute of Japan, the membership of which comprises industry manufacturers and the logistics businesses responsible for their delivery. We are leading the establishment of an industry-wide supply chain standard model, in cooperation with other manufacturers and logistics businesses. Through these initiatives, we aim to improve work environments, improve labor productivity and reduce environmental burden while building sustainable, resilient supply chains.