Kirin Holdings Company, Limited (2020 Green Bond)
Type of Engagement: Annual Review
Date: June 28, 2021
Engagement Team:
Wakako Mizuta, wakako.mizuta@sustainalytics.com, (+81) 3 4571 2343
Marie Toyama, marie.toyama@sustainalytics.com, (+81) 3 4571 2343

Introduction
In November 2020, Kirin Holdings Company, Limited (Kirin Holdings) issued green bonds aimed at financing
and refinancing expenditures related to i) Circular Economy Adapted Products, Production Technologies andProcesses and ii) Energy Efficiency (the “Green Bond”). In June 2021, Kirin Holdings engaged Sustainalytics
to review the projects funded through the issued Green Bond and provide an assessment as to whether theprojects met the Use of Proceeds criteria and the Reporting commitments outlined in the Kirin Holdings
Company, Limited Green Bond Framework (the “Framework”).1

Evaluation Criteria
Sustainalytics evaluated the projects and assets funded as of 31 December 2020 based on whether theprojects:
1.
2.

Met the Use of Proceeds and Eligibility Criteria outlined in the Framework; andReported on the Key Performance Indicators (KPIs) for each Use of Proceeds criteria outlined in theFramework.

Table 1 lists the Use of Proceeds, Eligibility Criteria, and associated KPIs.
Table 1: Use of Proceeds, Eligibility Criteria, and associated KPIs
Use of Proceeds

Eligibility Criteria

Key Performance Indicators(KPIs)i)

Procurement of recycled PET resin

GHG emissions reduction

Introduction of heat pump systems atfactories

Conversion rate of PET bottle
resin to recycled resin (t)Circular Economy
Adapted Products,Production
Technologies andProcessesii) Energy Efficiency

Issuing Entity’s Responsibility
Kirin Holdings is responsible for providing accurate information and documentation relating to the details ofthe projects that have been funded, including description of projects, amounts allocated, and project impact.

Independence and Quality Control
Sustainalytics, a leading provider of ESG and corporate governance research and ratings to investors,
conducted the verification of Kirin Holdings’s Green Bond Use of Proceeds. The work undertaken as part ofthis engagement included collection of documentation from Kirin Holdings employees and review ofdocumentation to confirm the conformance with the Framework.

1Kirin Holdings Company, Limited Green Bond Framework overview available at: https://www.sustainalytics.com/corporate-solutions/sustainablefinance-and-lending/published-projects/project/kirin-holdings-company-limited/kirin-holdings-company-limited-green-bond-second-party-opinion/kirinholdings-company-limited--green-bond-second-party-opinion-pdf© Sustainalytics 2021

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Kirin Holdings Company, Limited
Sustainalytics has relied on the information and the facts presented by Kirin Holdings with respect to theNominated Projects. Sustainalytics is not responsible nor shall it be held liable if any of the opinions, findings,
or conclusions it has set forth herein are not correct due to incorrect or incomplete data provided by Kirin
Holdings.
Sustainalytics made all efforts to ensure the highest quality and rigor during its assessment process andenlisted its Sustainability Bonds Review Committee to provide oversight over the assessment of the review.

Conclusion
Based on the limited assurance procedures conducted,2 nothing has come to Sustainalytics’ attention thatcauses us to believe that, in all material respects, the reviewed bond projects, funded through proceeds ofKirin Holdings’s Green Bond, are not in conformance with the Use of Proceeds and Reporting Criteria outlinedin the Framework.

Detailed Findings
Table 2: Detailed Findings
Eligibility
Criteria

Procedure Performed

Factual Findings

Use ofProceeds
Criteria

Verification of the projects funded by theGreen Bond as of 31 December 2020 todetermine if projects aligned with the Use ofProceeds Criteria outlined in the Framework
and above in Table 1.

All projects reviewed
complied with the Use ofProceeds criteria.

ReportingCriteria

Verification of the projects funded by theGreen Bond as of 31 December 2020 todetermine if impact of projects wasreported in line with the KPIs outlined in theFramework and above in Table 1. For a listof KPIs reported please refer to Appendix 2.

All projects reviewed
reported on KPIs per Useof Proceeds criteria.

Error orExceptions
Identified
NoneNone

2

Sustainalytics limited assurance process includes reviewing the documentation relating to the details of the projects that have been funded, including
description of projects, amounts allocated, and project impact, which were provided by the Issuer. The Issuer is responsible for providing accurate
information. Sustainalytics has not conducted on-site visits to projects.
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Kirin Holdings Company, LimitedAppendices
Appendix 1: List of Use of Proceeds Categories Reviewed
Use of Proceeds
Category

Description

Timing of expenditures

Net Bond
Proceeds
Allocation(billion JPY)

Circular Economy
Adapted Products,Production
Technologies andProcesses

Procurement of recycled PET
resinforPET
bottleproduction

Confirmed that the use ofproceeds were all new
expenditures or refinancing
of expenditures made within
5 years prior to the issuanceof the Green Bond2.1ii) Energy Efficiency

Introduction of heat pumpsystems at factories

Confirmed that the use ofproceeds were all new
expenditures or refinancingof expenditures made within
5 years prior to the issuanceof the Green Bond0.2Total :2.3i)

Appendix 2: List of Project Impact
Use of Proceeds Categoryi)

Circular Economy Adapted
Products, Production
Technologies and Processesii) Energy Efficiency

34Impact
Conversion rate of PET bottle resin to recycled resin3: 1.5%

GHG emissions reduction4: 3,400t

Conversion rate of PET bottle resin to recycled resin across the Kirin Group’s operations
GHG reductions in fiscal year 2020 (April 1, 2020 - March 31, 2021) by the introduction of heat pump systems at factories3

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Kirin Holdings Company, Limited

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This document is translated from the Japanese language. In case of discrepancies between the Japanese
language and translated versions, the Japanese language version shall prevail.

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Kirin Holdings Company, Limited

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