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Respect for Human Rights Initiatives to Prevent Human Rights Violations along the Value Chain

Overview of Lion's Human Rights Prevention Initiatives along the Value Chain

The Group is taking the following steps to reduce the risk of potential human rights violations along each portion of the value chain involving the procurement of raw materials, activities at the Company and use by consumers.

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Initiatives in Raw Materials Procurement

The Lion Group has clarified its stance on sustainability, including legal compliance, environmental conservation and respect for human rights in its Procurement Principles as part of its efforts to prevent human rights violations in raw material procurement. The Group is also evolving its efforts with its suppliers. We are also promoting the sustainable procurement of palm oil and palm kernel oil, our main plant-based raw materials, as we recognize the importance of such efforts.

(1) Raw Materials Procurement

Prevention and Mitigation Measures 2030 Targets and Progress in 2024
Procure third party-certified raw materials → Procure products certified by the Roundtable on Sustainable Palm Oil (RSPO) and Forest Stewardship Council (FSC)
  • Target: 100% procurement of RSPO-certified materials
  • Progress: 99% of key raw materials are RSPO-certified (scope: consumer products sold in Japan)
  • Target: 100% procurement of FSC-certified materials
  • Progress: 75% of materials are FSC-certified (percentage of product types sold in Japan); we are promoting the use of paper certified by the FSC or the Programme for the Endorsement of Forest Certification (PEFC) and recycled paper as copy paper and in office supplies
Promote trade with suppliers with the ability to resolve social and environmental problems that may occur in the supply chain → Suppliers that support efforts aimed at zero deforestation
  • Target: Procurement from suppliers that support efforts aimed at zero deforestation: All suppliers
  • Progress: 55% (scope: raw material suppliers for the Lion Group in Japan)

(2) Suppliers

Prevention and Mitigation Measures Progress in 2024
Regular risk evaluations of the sustainability activities of suppliers Conducted a self-check based on the Lion Group Supplier CSR Guidelines, and conducted a risk assessment on sustainability at suppliers of Lion, domestic Group companies, Lion Daily Necessities Chemicals (Qingdao) Co., Ltd., Lion Corporation (Korea), Lion Corporation (Thailand) Ltd. and Southern Lion Sdn. Bhd using Sedex.
Identification of high-risk suppliers Set standards for high-risk suppliers for self-checks based on the Lion Group Supplier CSR Guidelines and Sedex
Audits of high-risk suppliers and formulation of improvement plans High-risk suppliers were not applicable

* As of March 2025

Initiatives in Customer Use

As part of our efforts to ensure that our customers can use our products safely and with peace of mind, we have established a Product Management System, a set of rules that define our business processes and quality assurance at each stage of product development. In addition to complying with the Act on Pharmaceuticals and Medical Devices, the Act against Unjustifiable Premiums and Misleading Representations, the Health Promotion Act, and other related laws and regulations, we have established a representation drafting manual and conduct accurate and moderate advertising and promotions that do not cause misunderstanding or discomfort, taking the customer’s viewpoint into consideration.

In countries and areas where many Muslims live, such as Malaysia and Indonesia, we are working to obtain Halal certification* so that local consumers can use our products with peace of mind.

*Certification under systems for labeling products that have cleared halal certification standards with a halal-certified mark. A halal certificate issued by a certifying body officially recognized by the country’s halal certification authority is required to sell products with a halal-certified mark.

Examples of Halal-Certified Products

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Systema toothpaste sold in Indonesia
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Shokubutsu body wash sold in Malaysia
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An Indonesian halal certificate
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A Malaysian halal certificate

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