Environmental Report 2024

2024.7

3 About this Environmental Report
4 Message from Top Management

32

Activities

57 Background, Goals and Achievements, & Main Activities

Biological Resources

6 Corporate Data

33 Background, Goals and Achievements, & Main Activities

7 Value Creation Model

35 Tea Farms

9 Global Trends and Kirin's Actions
10 Kirin Group’s Environmental Vision 2050
Enrich the Earth with Positive Impact,

Expanding the Scope of Positive Impact, Progress

37 Vineyard

Propagation Technology

40 Paper and Printed Materials, Food Waste Reduction

and Recycling

41 Support for the Restoration of Nature

Water Resources
43 Background, Goals and Achievements, & Main Activities
45 Conservation of Water Sources in Tea Farms
46 Water Source Forest Conservation Activities, Grassland

Conservation Activities to Recharge Groundwater,
Production

48 Key Data Related to Water Resources

88 Systemic Risks

Protection Activities in Basins and Coasts

Containers and Packaging
49 Background, Goals and Achievements, & Main Activities

29 Metrics and Targets

56 Key Data Related to Containers and Packaging

55 Recycle

89 Business Opportunities

Market, Products and services, Resource efficiency,
Energy source, Resilience

92 Reference Documents

Holistic Analysis of Risks
and Opportunities

51 Sustainable Recycling of PET Bottles
52 Sustainable Paper Containers, Reduce
54 Reuse

31 External Evaluation

71 Physical Risks
Chronic risks, Acute risks
79 Transitional Risks
Policy, Technology, Market, Reputation/Liabilities

26 Risk and Impact Management
Significant Risks and Opportunities

Overview of Holistic Analysis
of Environmental Management
Risks and Opportunities,
Business Impact, andStrategies

47 Wastewater and the Usage of Biogas, Environmental

16 Strategy

Results of financial impact assessment, Resilience Assessment,
Scenario analysis related to climate change,
Materiality analysis of natural capital,
Transition Plans（Decarbonized society, Nature Positive,
Circular Economy）

68

Activity

14 Governance

66 Key Data Related to Climate Change

・ TNFD
TCFD

2

Holistic Environmental
Management Information
Disclosure Based on
the TCFD and TNFD
Recommendations, etc.

61 Production, Containers and Packaging, Logistics, Sale
65 Supply Chain

39 Coffee Farms, Hop Fields, Palm Oil, Mass Plant

42 Key Data Related to Biological Resources

13

59 Raw Materials, Renewable Energy

Environmental
Strategy

5 Message from the Officer in Charge of CSV Strategy

8 Identification of Materiality

Climate Change

Message fromTop Management

Contents

Business

https://www.kirinholdings.com/
en/investors/

Kirin Holdings Co-creation of
Value with Society (CSV) Website

KIRIN CSV REPORT(Integrated Report)

https://www.kirinholdings.com/
en/impact/

https://www.kirinholdings.com/en/
investors/library/integrated/Japan Non-alcoholic
Beverages Businesses

Kirin Beverage, Shinshu Beverage, Hokkaido Kirin Beverage,
Kirin Maintenance Service,each site of Kirin Beverage Service (Hokkaido, Sendai,
Tokyo, Chubu, Kansai) KIRINVIVAX, Tokai Beverage Service

Oceania Integrated
Beverages Business

Lion, New Belgium Brewing

Pharmaceuticals
Businesses

Kyowa Kirin, Kyowa Kirin Frontier, Kyowa Kirin plus,
Kyowa Hakko Kirin China Pharmaceutical, Kyowa Kirin,Inc.

Other Businesses(all companies included)

Mercian, NIPPON LIQUOR, Daiichi Alcohol, Wine Curation, Interfood,Vietnam Kirin Beverage, Four Roses Distillery, Kyowa Hakko Bio,
KYOWA PHARMA CHEMICAL,KYOWA Engineering, Biokyowa,
Shanghai Kyowa Amino Acid,Thai Kyowa Biotechnologies, Kirin Holdings,
Kirin Business Expert, KIRIN BUSINESS SYSTEM,
Koiwai Dairy Products Company, Limited , Kirin Echo, Kirin and Communications,
Kirin Engineering,Kirin City, KIRIN GROUP LOGISTICS●All shares in Myanmar Brewery Limited held by our subsidiary Kirin Holdings Singapore Pte, Limited were transferred to
Myanmar Brewery Limited on January 23, 2023, and are therefore excluded from the scope of this report.
●The Australian company Blackmores Limited has been a subsidiary since August 2023 and the U.S. company Coca-Cola
Beverages Northeast, Inc. has been a subsidiary, but are excluded from this year's reporting on environmental data.
Some of the initiatives are discussed in this report.

Detailed Environmental Data, Calculation Methodology, and Third-Party Assurance Report
For detailed Environmental Data, Calculation Methodology, and Third-Party Assurance Report,
please refer to the ESG Data Book for detailed environmental data, calculation methods, andthird-party assurance reports.
●Unless otherwise specified, environmental data is rounded to the nearest appropriate digit.
ESG Data Book
https://www.kirinholdings.com/jp/investors/files/pdf/esgdatabook2024.pdf

Reference Guidelines

https://www.kirinholdings.com/
en/impact/env/● Ministry of the Environment, Government of Japan’s Environmental Reporting Guidelines (2018 version)●Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD Recommendations 2017)

Lion Sustainability Website
https://lionco.com/force-for-good/●Implementing the recommendations of the Task Force on Climate-related Financial Disclosures (the 2021 TCFD Annex)●TCFD Guidance on Metrics, Targets, and Transition Plans (2021)●Task Force on Nature-related Financial Disclosures (TNFD) Recommendations v1.0 (2023 Edition)●IFRS S1 "General Requirements for Disclosure of Sustainability-related Financial Information" and IFRS S2"Climate-Related Disclosures"

Please refer to the ESG Data Book for the comparison table.
Kirin Group
Environmental Report

KYOWA KIRIN
Sustainability Website

https://www.kirinholdings.com/
en/investors/library/env_report/

https://www.kyowakirin.com/
sustainability/

Forward-looking statements in this report, including forecasts, targets, and plans, are based on the current assessments
by management at the time of preparation of the report. They contain inherent uncertainty that the outcomes will differ
from the statements in this report due to changes in a variety of factors. Statements about risks and opportunities are also
included in the report from the perspective of proactive information disclosure, even if they do not necessarily constituterisk factors that would have a material impact on investor decisions. The Kirin Group will, upon identification andacknowledgment of various risks associated with its business, strive to strengthen its risk management structure and toprevent and mitigate those risks, and will make its best efforts to respond to risks that become apparent.

Holistic Analysis of Risks
and Opportunities●GRI Standards

Kirin Holdings The
Environment Website

Activity

Kirin Holdings
Investor Relations Information

Kirin Brewery,Kirin Distillery, SPRING VALLEY BREWERY, Eishogen,
Kirin Brewery (Zhuhai), Brooklyn Brewery Japan・ TNFD
TCFD

Structure of Corporate Information Disclosure

Company

Japan Beer and Spirits
Businesses

Environmental
Strategy

The Kirin Group operates in Japan, Asia Pacific, North America and other regions across theareas of alcoholic beverages, non-alcoholic beverages, pharmaceuticals, and health sciences.
In the fiscal year 2023 financial results, the former segments accounted for 59% for "Japan Beerand Spirits," "Japan Non-Alcoholic Beverages," and "Oceania Beer and Spirits," and 20% of thetotal for "Pharmaceuticals." The Kirin Group places CSV (co-creation of social and economic
value) at the core of its business operations and aims to achieve sustainable growth bycontinuing the cycle of value creation. Among these, we have set the environment as one of thesocial issues we focus on. The editing of this report has taken into account the characteristicsof the Kirin Group’s business and the positioning of its environmental approaches.

3

FY2023 (January–December 2023)
Where necessary, this report also contains historical data showing trends for the past 3 to 5 years.
Organizations Covered by this Report (FY2023)

Editorial Policy

Information on the corporate activities of theKirin Group, including this reports, discloses
a diverse range of information in the interestsof shareholders and investors, as well as theinterests of a wide range of stakeholders in our
local communities, including our customers.

Reporting Period

Message fromTop Management

About this Environmental ReportMessage fromTop Management

Message from Top Management
Message from the COO
the same time, clearly highlighting the importance of balancing
climate change with strengthening agriculture and fooddomain, and the Pharmaceuticals domain cannot exist without

systems. At the Kirin Group, we have long been addressing

natural capital. Natural capital is not only affected by climate

climate change and natural capital in an integrated manner.

change, but is also regional, localized, and unevenly distributed

We recognize that there are differences in characteristics andin terms of resource amounts. I believe it is my responsibility to

impacts based on the cultural and economic backgrounds oflink environmental issues with business risks and opportunities,

each region, and that there are difficulties in achieving a "Just
Transition" that takes these differences into account. In order toactivities, and to lead the world in terms of environmental

realize the mental and physical health (Well-being) of diverse

management.

people with various values and a sustainable society in which

The Kirin Group's Environmental Vision 2050 states that we

recognize the issues that arise in each "field," and work together

people can live with peace of mind, it is essential to correctly

4can "Enrich the Earth with Positive Impact," and we have beenwith local people in each community to come up with optimal

actively disclosing the dependence on and effect of our businesssolutions.
I became president of Kirin Holdings at the end of March this

TCFD in 2017 and have added the TNFD framework since 2022,

year, and my motto is "go to the gemba or actual worksites, seereexamining our business from both climate change and natural

the actual things happening, and know the actual situation," andcapital perspectives, taking into account their interrelatedness.

I believe this is important in all aspects of business, and that thisWe believe that initiatives through our business, such asalso applies to environmental management. The Kirin Group's

sales of products certified for biodiversity, conservation ofenvironmental initiatives began 50 years ago with the reduction

water sources, reduction of GHG emissions, steady progressof external diseconomies caused by business activities suchin packaging innovation, and products that contribute toas pollution control at the factory sites. Going forward, we
will continue to lead integrated environmental management asmeasure against climate change, will have a positive impact on

the world's leading CSV company, as set forth in our long-termthe design, procurement, manufacturing, and distribution sites.

management vision KV2027.

Looking at global trends, the 28th Conference of the Parties tothe United Nations Framework Convention on Climate Change(COP28, 2023) once again called for urgent action to limit
global temperature rise to 1.5 degrees Celsius. The Emirates
Declaration on Sustainable Agriculture was also released at

Kirin Holdings Company, Limited
Representative Director of the Board, President & COO
Group Business Execution Control

Takeshi Minakata

Holistic Analysis of Risks
and Opportunities

maintaining immunity and combating heatstroke as an adaptive

Activityon the environment with the aim of having a positive impact
on society as a whole through our business. We disclosed the・ TNFD
TCFD

to have a positive impact on society through our business

Environmental
Strategy

As stated in our management philosophy, the Kirin Group'sbusinesses in the Food & Beverages domain, Health ScienceMessage fromTop Management

Message from the Officer in Charge of CSV Strategy
farmers to use their own judgment to promote environmentally
sustainable agriculture. We conducted a pilot test on selected

TNFD have been published, and the so-called Global Plastics

tea plantations in Sri Lanka, a major producer of tea leaves

Treaty is also under discussion. The EU has implemented theused in Kirin Gogo-no-Kocha. At the Château Mercian Mariko
Vineyard, we started a study on the effects of carbon storage

information by companies, and in April of this year, the ISSB

and further upgrading of biodiversity assessment of vineyards

announced that it would launch a research project with the next

in collaboration with NARO (National Agriculture and Food

topics being "biodiversity, ecosystems and ecosystem services"

Research Organization). The Vineyard has been officially certified

and "human capital." Based on these trends, society is moving

as a "Nationally Certified Sustainably Managed Natural Sites" by

toward integrated solutions to sustainability issues.

the Ministry of the Environment. Through these efforts, we plan

In the "Kirin Group Long-Term Environmental Vision" disclosed

to accumulate knowledge about the potential of regenerativein 2013, we adopted an integrated approach based on the

agriculture. Kirin has also been a member of the Japan Businessunderstanding that environmental issues are interrelated andCoalition for a Global Plastics Treaty, which makes policy

must be resolved comprehensively. In response to the TCFD

recommendations to the Japanese government toward thedevelopment of an ambitious international treaty aimed atwhich revealed that climate change would have a significant

eradicating plastic pollution, since its inception. With regard to

impact on the Group's raw agricultural products and water.

GHG reductions, Scope1 and 2 have been successfully reduced,

Understanding the "risks and opportunities" based on the TNFD

and Scope 3 has been addressed by the Kirin Supply Chain

guidance also makes it clearer that the issues of raw agricultural

Environmental Program launched in April 2024.

products, climate change, and improper disposal of used

Going forward, through our integrated approach to watercontainers and packaging are interrelated. This is why this year

resources, climate change, containers and packaging, andwe are again not releasing separate TCFD or TNFD reports, butbiological resources, which are our four most important issues

are disclosing information in an integrated manner through ourrelated to the global environment, we will continue to sustain

Integrated Report and Environmental Report.

our businesses that rely on the blessings of nature, while at thesame time realizing Nature Positive and Circular Economy, anddevelop the Regenerative Tea Scorecard, a tool that allows

leading the world in contributing to carbon neutrality by 2050.

Kirin Holdings Company, Limited
Senior Executive Officer(CSV Strategy, Public Relations Strategy,
General Manager of CSV Strategy Department)

Hiroshi Fujikawa

Holistic Analysis of Risks
and Opportunities

Last year, we began working with the Rainforest Alliance to

Activity

recommendations, we conducted a scenario analysis in 2018

・ TNFD
TCFD

CSRD, which aims to strengthen the disclosure of sustainability

Environmental
Strategy5

The development of global rules for the environment has maderapid progress in recent years. The final recommendations of theCompany Overview

Corporate Philosophy

KIRIN brings joy to society by crafting food and healthcare products
inspired by the blessings of nature and the insights of our customers.

Trade Name

2027 Vision“One KIRIN”Values
PassionIntegrity

Sales revenue

Diversity

Our respect for different
perspectives and values thatenable constructive discussions,and our belief that the"differences" have the power tochange the world and create
better solutions.

Date of
Incorporation

February 23, 1907

*Kirin Brewery Co., Ltd. changes its name to Kirin Holdings Co., Ltd.
and becomes a holding company of the Kirin Group on July 1, 2007.

Head Oﬃce

NAKANO CENTRAL PARK SOUTH
10-2, Nakano 4-chome, Nakano-ku, Tokyo
164-0001, Japan

Paid-in Capital

102,045,793,357 yen

Number of
Employees

30,183 employees on a consolidated basis(as of December 31, 2023)
・ TNFD
TCFD*Inside: Normalized Operating Proﬁt,
Outside: Revenue (Actual results forthe year ended December 31, 2023)

Our gratitude to our stakeholders
for always helping us move
forward, and our promise toremain honest and humble inevery business activity to serve
them better.

Kirin Holdings Company, Limited

2,134.4billion yen

Other Businesses

6

Japan Beer andSpirits Businesses

4,716
324
Operating proﬁt

Pharmaceuticals Businesses

Kyowa Kirin Other

960

777

6,849

billion yen

8.5

8.0

8.0

2,550

Japan Non-alcoholic
Beverages Businesses

Kirin Beverage Other

6.0

Food & Beverages

200

4.0

150

4.2

Pharmaceuticals

Health science

Company
Kirin Brewery
Kirin Beverage
Lion
Kyowa Kirin
MercianCoca-Cola Beverages Northeast
Kyowa Hakko Bio
Other

0

156

171

177

100

2.0

Segment

(Yen)

50

21

22

23

0

21

22

23

Holistic Analysis of Risks
and Opportunities

2,810Japan Beer and Spirits Businesses
Japan Non-alcoholic Beverages Businesses
Oceania Integrated Beverages Businesses
Pharmaceuticals Businesses
Other Businesses

Profitability and growth
performance—Normalized EPS

169

324

Oceania Integrated
Beverages Businesses

Capital efficiency indicator—
Return on invested capital(ROIC)
(%)

201.5

4,419

Lion

Kirin Brewery Other

Financial Key Performance Indicators

Activity

MercianCoca-Cola Beverages Northeast
Kyowa Hakko Bio Other

Environmental
Strategy

A global leader in CSV, creating value across our world of Food & Beverages to Pharmaceuticals.

Our determination to continuously
provide our customers and society
with new value propositions basedon innovative ideas, and our
enthusiasm to meet goals with pridein the companies we work for andthe brands we offer.

Message fromTop Management

Corporate Data

The Kirin Group places CSV (Shared Value Creation) at the core of

economic value gained in our organization's capabilities.

creates value that gives back to society. In the value creation

its management. We will work to solve social issues through ourBusiness development through the three domains of food,model, the non-financial goal of the "environment" is shown as an

business activities and achieve sustainable growth together withmedicine, and health science requires the use of natural capital

important factor. Under "Kirin's Environmental Value Correlation,"society by simultaneously creating social and economic value.

and the resolution of environmental challenges such as container

we explain how environmental issues relate to the Kirin Group’s

The "value creation model" illustrates a sustainable mechanism

packaging and climate change. Through the resolution of thesevalue creation model.

for amplifying the two types of value creation by reinvesting theissues and the sustainable use of natural capital, our business

Environmental
Strategy

Corporate Philosophy
KIRIN brings joy to society by crafting food and healthcare products inspired by the blessings of nature and the insights of our customers

INPUT

BUSINESSFoundations for driving innovations

Business domains

84.9(Alcoholic andnon-alcoholic
beverages)

Financial key
performance indicators
Providing products andservices to build bonds
between people

ROIC

CAGR of normalized EPS

Maximized cash ﬂows

30,183 enployees(consolideted)(As of December 31 ,2023）

Health sciencein R&D expenses
in ﬁscal 2023

Providing products andservices to improve
peopleʼs quality of life

Non-ﬁnancial key
performance indicators
CSV Commitment

Pharmaceuticals

Continually developing
innovative new drugs

Kirin Group corporate governance

Employeeengagement score

A Responsible
Alcohol Producer

ICT accelerating
value creation

Realization of
CSV Purpose

Holistic Analysis of Risks
and Opportunities

Corporate brand value

Social value

Community
Engagementbillion yen

Economic value

The EnvironmentCoretechnologythat assuresvalue creation

Diversity andinclusion, culture
for innovation

The Kirin Group gives value
back to the society it serves

Activity

Food &
Beverages

7

The Group is leveraging its foundations for driving innovations
that enable its businesses to help society aroundthe world settle the issues

・ TNFD
TCFD

The Kirin Group is activating bussinesssynergies to approach social issues asopportunities for business growth

OUTCOME

Health andWell-being

Consumer centric
marketingexpertise

OUTPUT

Message fromTop Management

Value Creation ModelForce on Nature-related Financial Disclosures).

2023, recommends an integrated approach to climate and nature-in order to formulate the Kirin Group 2022-2024 Medium-term

In this process, we identify the issues that are most important torelated issues. In the 2013 Kirin Group Long-Term Environmental

Business Plan, which marks the second stage toward realizing

the Kirin Group and its stakeholders and consider where the Kirin

Vision, the Kirin Group adopted a holistic approach to address thethe Long-Term Management Vision, the Kirin Group Vision 2027,

Group can have positive impacts. As a result, we reconfirmed thatfour environmental issues of biological resources, water resources,

announced in 2022. Following the flow for identifying materiality,

the following four important themes related to the environment

containers and packaging, and climate change as "interrelated

we updated our social environment analysis and, through dialoguethat we set in the Kirin Group’s Environmental Vision 2050 are

environmental issues" rather than independent ones. This is awith internal and external stakeholders, discussion at the seniorhighly material for Kirin Group management: "Sustainable use

philosophy and concept that the Kirin Group has consistently

management level, and deliberations by the Board, we updatedof biological resources," "Sustainable use of water resources,"

pursued ever since it shifted its focus to environmental activities

our "Management Issues for Sustainable Growth (Group Materiality"Sustainable recycling of containers and packaging," andwith a global perspective. As a leading company that has adopted

Matrix)" with a 10-year outlook. In addition, there is a separate"Overcoming climate change."

the integrated approach, the Kirin Group aims to contributeexplanation of materiality in the general requirements of the TCFD

The TNFD Guidance (Recommendations of the Task Force onto the dissemination of this philosophy and the resolution of(Task Force on Climate-related Financial Disclosures)/TNFD (Task

Nature-related Financial Disclosures) v1.0, published in September

environmental issues.

Social environment
analysis
8

We identify issues that we need toaddress by referring to trends indiscussions and policies surrounding
the Kirin Group in Japan andoverseas, the results of scenario
analyses, and other factors

High

Step1

Management Issues for Sustainable Growth (Group Materiality Matrix) (Updated in 2022)

Creating bonds and trust forpeople's well-being

Provide pharmaceuticals for Unmet Medical Needs*1

Dealing with alcohol-related problems

Sustainable development of local communities
in raw material production areas andbusiness development regions

Ensuring food safety and security

Sustainable use of biological resources

Respect for human rights

・ TNFD
TCFD

Flow for the identification of materiality

Ensuring stable supply, safety and reliability
as a pharmaceutical company

Activity

Sustainable use of water resources

Step2

Step3

Step4
Deliberations by the
Board

Based on the input information,
senior management fully discusses
and assesses risks and opportunities
for our businesses and society

Overcoming climate change

Helping to improve
the performance ofbrain
functionand prevent de-cline

Support for the prevention of
non-communicable diseases

Support for maintaining the immune system

Promoting compliance

Human resource development to realize innovation

Ensuring occupational health and safety
Promoting diversity and inclusion
Improving the effectiveness of corporate governanceReinforcing risk management
Protection of personal information

After discussions among senior
management, the Board selects
and makes resolutions concerning
important themes for our sustainablesurvival and growth together withsociety in the future
Medium

Improvement ofaccess to nutrition

Enhancing the sustainability of food economy

Implementation of health management

Building sustainable logistics

Realization of a vibrant workplace/culture

Ensuring tax transparency

Countermeasures against cyber attacks

Strengthening group governanceImpact on the Group's business

Impact on the Group's businessHigh*1 Provision of pharmaceuticals for diseases for which there are no effective treatments, including rare diseases

Holistic Analysis of Risks
and Opportunities

Discussion at thesenior management
level

Sustainable recycling of container andpackaging resources

Impact on Stakeholders

Stakeholder
engagement

We reflect a diverse range of dialogue
with external experts, NGOs, andvarious other stakeholders indiscussions within the Kirin Group

Environmental
Strategy

The Kirin Group assessed the importance of sustainability issues

Message fromTop Management

Identification of Materiality

The Kirin Group has adopted an advanced disclosure framework

management to employees. This common understanding became

to further raise the level of environmental management. Aroundthe foundation for the improvement of environmental management.

trial initiatives. In anticipation of the 1992 Earth Summit in Rio de2008, we started responding to questionnaires from CDP (a non-Another common understanding within the company that complying

Janeiro, the Kirin Group established its Basic Policy for Addressing

governmental organization). At the time, ESG was not yet consideredwith advanced disclosure frameworks had contributed to improving

Global Environmental Issues in 1991. The following year, in 1993,

an important issue, but responding to CDP's questionnaire wasenvironmental management, and led us to become the first in the

we revised our management philosophy to state that "we aim toseen as an effective way to deepen understanding of global

world to attempt trial disclosure based on the beta version v0.1

be a corporate group that considers the global environment," andenvironmental issues. Appropriate responses to CDP led to the Kirinof the TNFD (Task Force on Nature-related Financial Disclosures)shifted our environmental management focus from pollution control

Group having a multi-layered understanding of environmental issues

framework.

to activities that take the entire planet into consideration. Since

and to the Kirin Group's Long-Term Environmental Vision, which was

Although trial disclosure involves risks, we believe that it enable

then, we have undertaken a number of industry-first initiatives,announced in 2013.

us to obtain a great deal of feedback, deepen our understanding

including making a corporate presentation at the Third Conference

Furthermore, in order to respond to the TCFD guidance publishedof environmental issues, clarify our vision, and advance ourof the Parties to the United Nations Framework Convention on

in 2017, the Kirin Group began conducting scenario analysis earlyenvironmental management. The Kirin Group will lead the way inon. As a result, the need to approach the environmental themes ofbuilding a decarbonized society, Nature Positive, and a recycling-"biological resources," "water resources," "containers and packaging,"oriented society by continuing its pioneering efforts to address

bottles the lightest in Japan in 2003, and making 100% of our paperand "climate change" as interrelated issues in an integrated mannerglobal environmental challenges.

containers FSC®-certified paper in 2020.

rather than as separate issues has spread to everyone fromEarth
SummitKyoto Protocol

1992

1997

The Tenth meeting of the Conferenceof the Parties (COP10) to theParis Agreement; SDGs
Convention on Biological Diversity

2010

2015

TCFD

2017

IPCC Special Report on Global Warming of 1.5°C

The Fifteenth meeting of the Conference of the Parties(COP15) to the Convention on Biological Diversity

2019

2021

持続可能な
サプライ
チェーン

社会の持続性へのインパクト

酒類
メーカー
としての
責任

安全・
安心の
確保

人権

環境

地域社会・
コミュニティ

人材・
組織風土

健康

コーポレートガバナンス

グループの事業へのインパクト●100% recycling achieved at
all breweries (1998)● Start of “Water Source
Forestation Activities” (1999)● Guidelines for the Procurement of
Sustainable Biological Resources andan Action Plan announced (2013)● Start of development and deploymentof lightweight medium bottles (2014)● Reduced weight for
all large bottles (2003)● Use of 100% recycled
PET bottles started (2014)● Formulation of the Kirin Group Basic Policy
on Initiatives Targeting Global Environmental Issues (1991)● "Consideration for the global environment"
speciﬁed in our Corporate Philosophy (1993)● Kirin Group's Long-Term Environmental
Vision announced (2013)● Responded to the CDP questionnaire (from 2008)● Announcement of CSV longterm and non-ﬁnancial targets“Kirin Group CSV Purpose” (2019)● Start of water source
conservation activities in
Sri Lankan tea farms (2018)● Expanded R100 PET bottles tocover the Nama-cha series（2021）● Launched year-round products using tea leaves
from certiﬁed farms in Sri Lanka (2021)●100% renewable energy purchased at
Kirin Breweryʼs Nagoya Plant (2021)● Kirin Group Action Plan for the Sustainable
Use of Biological Resources (2021)● Kirin Group Plastic Policy announced (2019)● Kirin Groupʼs Environmental
Vision 2050 announced (2020)● Trial disclosure based on the TCFD recommendations (2018)● Began continuous support for
donations of surplus inventory to
local governments
and food banks (2022)● Kirin Brewery used 100%
renewable energy for all
electricity purchased at
all its factories andsales oﬃces (2024)●100% of electric power purchased
at two Kyowa Kirin plants andthree research laboratories
converted to renewable energy(2023)● Joined the BusinessCoalition for a Global
Plastics Treaty (Japan) (2023)● Mariko Vineyard selected as an
approved site for biodiversity by the
Ministry of the Environment (2023)● Mariko Vineyard was approved asa site for biodiversity by the Ministryof the Environment (2023)● Development of Sri Lanka Tea Leaf
Scorecard started (2023)● Further enhancing thelevel of environmental
management● Trial disclosure based on the LEAP approach (2022)

Holistic Analysis of Risks
and Opportunities● Start of support for tea farms
in Sri Lanka to acquire Rainforest
Alliance certiﬁcation (2013)● First Japanese food and beverage company
to support the TCFD recommendations (2018)● Successfully developedmass plant propagation
technology for hops (2022)

2023● First food and beverage company
in Japan to execute atransition-linked loan (2023)

Activity● Group Materiality Matrix● Kirin Brewery's Kobe
● Action Plans for Becoming● Achieved use of FSC-certiﬁed● Became the ﬁrst global foodannounced (2016)
Plant, an advanced modela Low-Carbon Corporate
paper in 100% of paper containers
and beverage company tobrewery for low-carbon
Group announced (2009)
at Kirin Brewery, Kirin Beverage,
obtain approval for an SBT
and water-saving production,and Mercian (2020)
Net-Zero (2022)
FSC® C137754
completed (1997)● Invested in oﬀshore wind power● Survey of water risks to● Joined RE100 (2020)
generation (three sites) throughnatural capital and major
participation in a consortium (2022)● CSV Commitment announced
global business sites (2014)● Upgraded SBT to1.5℃ (2020)
as SDGs Initiative (2017)● Joined the Alliance to End Plastic Waste (2021)● Declaration of Support for Biodiversity● Expressed support and commitment to the● Became the ﬁrst food and beverage manufacturer
Conservation announced (2010)
United Nations Food Systems Summit 2021 (2021)
in Japan to be approved by SBT (2017)
医薬品
メーカー
としての
責任

TNFD recommendations
v. 1.0・ TNFD
TCFDClimate Change held in Kyoto in 1997, starting our Water Source
Forest Conservation Activities in 1999, making our returnable beer

Environmental
Strategy

9

The Kirin Group has stayed ahead of global trends and has raised thelevel of its environmental management by repeatedly implementing

Message fromTop Management

Global Trends and Kirin's Actions

Enrich the Earth with Positive Impact
Society has reached a major turning point against the backdrop of

the seriousness of the impact that climate change have on agricultural

has further developed the idea of an "integrated" approach thatgrowing global environmental problems, including the climate crisis,

products and water resources. We have learned that in order toholistically addresses complex and interrelated environmental issues(biological resources, water resources, containers and packaging, andpass on a sustainable Earth to future generations, it is not enough tosimply minimize negative impacts and achieve neutrality. Furthermore,climate change) into our revised "Kirin Group’s Environmental Vision

as water and agricultural products, are susceptible to environmental

corporate environmental policies are expected to evolve from being

2050" and "Positive Impact" approach, which were discussed andproblems and there is need to address such issues urgently.

self-contained within a company to having a positive impact on

resolved by the Board in 2020.

Through scenario analysis based on the TCFD recommendations,society as a whole.

Under this new Vision, together with the young people who will leadwhich has been conducted since 2017, the Kirin Group has grasped

In order to respond to such societal demands, the Kirin Groupthe future, we will create a prosperous world for the next generation.

Positive Impact

・ TNFD
TCFD

Important Message

Environmental
Strategy

the ongoing loss of biodiversity, and plastic pollution of the oceans.
Industries such as the Kirin Group, which rely on natural bounty such

Message fromTop Management

Kirin Group’s Environmental Vision 2050

Going beyond the scope of

10

Holistic
Biological
Resources

Water
Resources

Containers andPackaging

Climate Change

These are interrelated andindividual responses will
result in trade-oﬀs, so theymust be resolved in an
integrated manner.

A society that values
sustainable biologicalresources.

A society thatcirculates containers
and packaging in asustainable way.

Water
Resources

ClimateChangeA society thatvaluessustainable water
resources.

A society that has
overcome climatechange.

self-contained eﬀorts and initiatives,
we will expand the scope of oureﬀorts to include society as a whole,and build the future together withsociety, including the young people
who will lead future generations.

Holistic Analysis of Risks
and Opportunities

Environmental Materiality

Containers
and Packaging

Activity

Approach

Biological
Resources

Message fromTop Management

Expanding the Scope of Positive Impact
We have made some revisions to the "Environmental Value Correlation
Chart," which shows the Kirin Group's integrated approach, to clarify
that we will expand the scope of our positive impacts, which is a key

NatureSocialmessage of our Environmental Vision.
What we added was the "Landscape Approach" and the concept of"food systems."
In Sri Lanka, we decided that the procurement of certified tea leaves
we chose to support tea plantations in obtaining certification. The

Natural Capital

Containers
andPackaging

Used containers

Environmental
Strategy

alone would not ensure the sustainability of our production areas, so

Impacton nature

Kunming-Montreal Global Biodiversity Framework (GBF) refers to the"Landscape Approach" as a method that comprehensively addresses
the diverse human activities and natural environments of raw material
production areas and leads to sustainable solutions to problems. The
Sri Lankan case is also a solution to the problem through the concept

Water
Resources

processing, distribution, consumption, and waste. A one-dimensionalview that looks only upstream and downstream, with the company atBusiness
opportunities

the center, could fail to realize that there are negative trade-offs forothers outside the value chain, even if there seems to be a positive11

impact on the company. Although the landscape approach and thestable procurement of raw materials and brand improvement. So, we
have decided to clearly recognize and work on them as part of theKirin Group's integrated approach.

Biological
Resources(Agricultural products)

1

Sustainable
use

Nature positive

Dependencies

Strengths of Kirin Groupin Environmental Management
Technologicalcapability that assuresvalue creation*1

Kirin Group
products andservices

Continuous
engagement* 2

Physical risk
Transitional risk

Overcoming
climate change

Business
opportunities

Net-zero2
Help tea plantations
obtain certification

Farms that have obtained
certification are those with
sufficient financial resources

It takes a long time toobtain certified tea leaves

Not an immediate reality,
but sustainable tea leaves can besourced from production areas
Choosing to support
the certification of farms

Impacton nature

ClimateChangeGHG
emissions*1 Engineering and R&D capabilities (Kirin Central Research Institute, Institute of Health Sciences, Institute for Packaging Innovation)*2 Engagements: Contributions to rulemaking and policy recommendations (TCFD, SBTN, TNFD pilot test participation), various organizations (NGO: Rainforest
Alliance), FSC Japan, WWF Japan, Earthwatch Japan, etc. Consortiums: Consortium for Sustainable Paper Use, Rainforest Alliance Consortium, etc. Communities: Sri
Lanka Tea Plantation, areas around Mercian's own managed fields, etc. Next generation: Kirin School Challenge, Japan Environmental Youth Network, etc.

Holistic Analysis of Risks
and Opportunities

Select and procure
only sustainable tea leaves

This would result inabandoning farms that havethe will to pursue sustainableagriculture but lack the funds

value creation process

Ecosystem
services

Kirin's Initiative in Sri Lankan Tea Farms

Sustainable
recycling

Kirin Group

Systemicrisk

Maintaining andimproving food systems

Business
opportunities

Activity

approach treating food as a systems take time and effort, they havea positive impact on raw material producing areas and contribute to

Physical risk
Transitional risk

Creation ofa circular economy

・ TNFD
TCFD

of a "food system," which considers food not as an individual issue
such as agriculture, but as a single system involving food production,

Landscape approach

Physical risk
Transitional risk

ThemeA societythat values
sustainablebiologicalresources

A societythat values
sustainablewater
resources

12

Cultivate, expand andprocure sustainableagricultural raw
materials

Raw materials

Stand by the side offarmers to make raw
material production
areas sustainable

Supporting Sri Lankan
tea farms to obtain
Rainforest Alliancecertification

Commodities and ByProducts

Bring water, used asa raw material, to asustainable state

Water source
conservation activities
at Sri Lankan tea farms

Solve water issues
according to
the watershedcharacteristics ofbusiness locations

Water reduction

A societythat hasovercome
climatechangeDevelop anddisseminate
sustainable containers
and packaging

Kirin Group

Paper container

KB

2023

KBC

ME

100% (2020)

100%

100%

100%

Response to sustainable palm oil *Except palm kernel oil

KBC

ME

KIW

100% (2020)

100%

100%

100%

KB

KBC

ME

-75% (2025)

-81%

-92%

-90％

Total 4 farms

Total 4 farms

KB

Reduction of food waste (Compared with 2015 levels)

Number of large farms assisted to obtain
Rainforest Alliance certification (Number of farms trained) KBC

Total: 15 farms(2022 to 2024)

Number of small farms assisted to obtain
Rainforest Alliance certification (Number of farms trained) KBC

Total: 5,350 farms(2022 to 2025)－

Total number of certified large farms: 94 (2013 to 2022)－

Total 9 farms

Cumulative total of 120 small farms(2018 to 2022)

Total 629 farms

Number of water source conservation sites

KBC

5 sites (2020)12 sites

15 sites

24 sites

Reduction of water consumption rate

LN

2.4kl/kl (2025)

3.5kL/kL

3.6kL/kL

3.6kL/kL

KKC-40% (2030)

-25%

-33%

-36％

Rate of reduction of water use volumes (Compared with 2015 levels) KHB-32% (2030)

-52%

-52%

-61％

Ratio of usage of recycled resin for PET bottles

KB

KBC

ME

50% (2027)

4.9%

8.3%

28.0%

Use of FSC-certified paper for 6-can packs

KH

KB

KBC

ME

100% (2020)

100%

100%

100%

Use of FSC-certified paper for gift boxes

KH

KB

KBC

ME

100% (2020)

100%

100%

100%

Use of FSC-certified paper for drink boxes

KH

KB

KBC

ME

100% (2020)

100%

100%

100%

100% (2020)

100%

100%

100%

Rate of reduction of water use volumes (Compared with 2019 levels)

KB

KBC

ME

2021: First Japanese food company to join
Participation since inception in November
2023

AEPW (Alliance to End Plastic Waste)
Japan Business Coalition for a Global plastics Treaty
GHG emissions from the entire value chain

KG

Net-Zero (2050)

4,010ktCO2e4,110ktCO2e

3,942ktCO2e

GHG emission reduction rate –Scope 1 + Scope 2 (Compared with 2019 levels)

KG-50% (2030)

-14%

-18%

-31％

GHG emission reduction rate –Scope 3 (Compared with 2019 levels)

KG-30% (2030)

-12%

-8%

-10%

Renewable energy

Ratio of renewable energy in plant purchased electric power

KG

100% (2040)

17%

27%

42％

Reduction of GHGs
from agriculture

Measurement of GHG emissions from agricultural land,
GHG fixation by biochar from pruning waste

Reduction in GHGs

Realize Net-Zero GHG
emissions from theentire value chain

KH Kirin Holdings

Building a social
system

2022

KB

KH

Build a resourcerecycling system tomake containers andpackaging sustainable2021

Use of FSC-certified paper or recycled paper for office paper

Use of FSC-certified paper for cardboard cartons for products

Lead to build adecarbonized society
KG

Targets

Minor Item

Kirin Brewery

KBC Kirin Beverage

ME Mercian

KKC Kyowa Kirin

KHB Kyowa Hakko Bio

2024: Joint research begins at Château
Mercian Mariko Vineyard
LN

Lion KIW Koiwai Dairy Products

Holistic Analysis of Risks
and Opportunities

ClimateChangeprogress, including qualitative elements, is as follows.

Activity

A society thatcirculates
containers andpackaging ina sustainableway

plan that each business is working on to achieve the "CSV Purpose”.
Major ItemPET bottles

Containers
andPackagingbasis and reported to the Kirin Holdings Board of Directors. Current

・ TNFD
TCFD

Water
Resources

The status of their implementation is monitored on a quarterlyreflected in the "CSV Commitment", a medium- to long-term action

Environmental
Strategy

Biological
Resources

Initiatives to Achieve

Part of the "Initiatives to Achieve" of the Environmental Vision is

Message fromTop Management

Progress（2023）

In this part                   ,→P.13〜P.31 we explain how theContent

Kirin Group analyzes and assesses the impactsof climate change and issues related to natural
capital and containers and packaging, and●Four material environmental themes identified in the GMM: “biological resources,” “water resources,” “containers and packaging,” and “climatechange”●In climate change, the risks and opportunities that were subject to scenario analysis, and the results of the assessment of resilience●In natural capital, material issues identified individually by the LEAP approach proposed by the TNFD

and adaptation, in order to appropriately andcontinuously create value. The Kirin Group
recognizes the need for a holistic approachto important environmental material themes●The impact on and from the regions in which business sites are located and the upstream and downstream portions of the value
chain for Kirin Brewery, Kirin Beverage, Mercian, Lion, Kyowa Kirin, Kyowa Hakko Bio, Koiwai Dairy Products, and all businesses forwhich we have set targets in accordance with SBT standards

Naturalcapital●The scope of disclosure and impact determined based on our analysis and assessment of risks and opportunities related to natural
capital based on effects, dependencies, and impacts, and identification of material issues in accordance with v1.0 of the TNFD
guidance, mainly for Kirin Brewery, Kirin Beverage, Mercian, Lion, Kyowa Kirin, Kyowa Hakko Bio, and Koiwai Dairy Products (however,since there are limited methods for obtaining direct information and there are still many issues related to the tools provided, theinformation we are able to disclose is limited)such as biological resources, water resources,
containers and packaging, and climate change,and strives to provide a holistic explanation to
the extent possible because there is a risk of

Scope of disclosure

trade-offs in resolving individual issues.
Containers
andpackaging

When preparing the information in thissection, we have complied with the TCFD
13

recommendations (June 2018), the new TCFD
Climatechangerecommendations v1.0 (September 2023).
In addition, we have referred to the S1 andS2 standards published by the International
Sustainability Standards Board (ISSB) in parts.

Location for related
issuesThe general requirements of the TCFD, TNFD,
and other frameworks are as follows.

Target period

Engagement●Kirin sites emitting GHGs, upstream and downstream of the value chain●Kirin sites, regions in the upstream and downstream of the value chain, transport routes, etc. affected by droughts, floods, natural
disasters, and other events caused by climate change

Naturalcapital●Raw materials covered by the “Action Plan for the Sustainable Use of Biological Resources →P.97   ” and their suppliers

Containers
andpackaging●All processes until the product is delivered to the customer●Priority locations identified through risk and opportunity analysis assessments in accordance with TNFD guidance v1.0

●Processes such as the collection and recycling of used containers, as well as sites where used containers are disposed of improperly
and areas affected by that pollution●The Kirin Group's important material themes of biological resources, water resources, containers and packaging, and climate change areinterrelated, and there is a risk of trade-offs in resolving individual issues. Accordingly, we have adopted a holistic approach that aims to resolve
issues in a holistic manner●In the same report, we disclosed information in accordance with the individual disclosure guidance of the TCFD and TNFD, including mattersconcerning interrelatedness and trade-offs●Periods when risk materializes: we have generally defined the short term as from the present to 2024 (the period of the Medium-Term BusinessPlan), the medium term as from 2025 to 2030 (the period of KV2027 and the SDGs target period), and the long term as 2031 to 2050 (the target
year for the Kirin Group’s Environmental Vision 2050)●These time horizons are not necessarily consistent with the sources of information used for risk assessment or scenario analysis. In such cases, wehave used the time horizons set for those specific references●The Kirin Group refers to regulations covering indigenous peoples and local community stakeholders, such as the FSC and Rainforest Alliancecertifications.
●For regions where we can adopt a landscape approach, we have not simply analyzed and assessed disclosure data that we have obtained, buthave also actually visited the regions and engaged with people from the local community.

Holistic Analysis of Risks
and Opportunities

Holistic disclosureof othersustainabilityrelated matters●Although not included in this disclosure, we intend to add information obtained through the “Kirin Supply Chain Environmental
Program,” which we launched in April 2024 to capture direct environmental data from suppliers, in due course

Activity

guidance (October 2021), and the TNFD

●Kirin Brewery, Kirin Beverage, Mercian, Lion, Kyowa Kirin, Kyowa Hakko Bio, and Koiwai Dairy Products

・ TNFD
TCFDClimatechangeEnvironmental
Strategy

promotes transition strategies such as mitigation●"Management issues for sustainable growth (Group Materiality Matrix (GMM)” identified in accordance with the “identification of materiality”
Material
information to bedisclosed

Message fromTop Management

Holistic Environmental Management Information
Disclosure Based on the TCFD and TNFD Recommendations, etc.

Roles and authorities

Approximately
30 times a
year

Group
Executive
Committee●Convened and chaired by the●Deliberation of environmental
CEO, Kirin Holdings Company,
policies, medium- and longLimited.
term strategies, and fiscal year
plans
●Executive officers of Kirin
Holdings●Resolutions related to general
non-financial targets and KPIs,
including those concerning theenvironment●Deliberation of the degreeof dependence and impact
on natural capital, as wellas environmental risks andopportunities●Supervision of theenvironmental operationsof operating companies anddivisions●Quarterly
monitoring of
the execution ofenvironmental
operations
by operatingcompanies●Deliberation ofplans for fiscal
2024, including
environmental
targets and KPIs,
and important risks●Chair: CEO of Kirin Holdings●Discussion of CSV policies,
strategies, plans, targets, KPIs, ●Executive officers of Kirin
and materiality across theHoldings
Kirin Group, including those●CEOs of the Group's major
related to the environment
operating companies in Japanand overseas

Three times a
year●Discussion of nonfinancial disclosure
policies, strategies,
and plans, including
those related to theenvironment●Reviews of ESG
assessments anddeliberation ofenhancements

Twice a year

●Formulation of draft
plans for fiscal 2024
concerning thefour environmental
issuesTwice a year +as needed●Deliberation ofbasic policies forplans for fiscal
2024 and importantrisks for the Kirin
Group

Supervisory structure
related issues, medium- and long-term strategies, annual plans, and important non-financial targets and KPIs, including
environmental targets. The board also monitors the execution of the Group's environmental operations and importantrisks, including climate change, natural capital, and the circular economy, on a quarterly basis through monitoring the
progress of non-financial targets.
Executive structure
In the Kirin Group, the Group Executive Committee deliberates and makes resolutions concerning the setting and revisionof important targets, as well as investment plans, related to climate and environmental issues as a whole, such as
natural capital and the circular economy. The Group Executive Committee receives reports from operating companies anddivisions on the status of achievement of targets and risks, and supervises these operating companies and divisions.
The senior executive officer in charge of CSV strategy oversees environmental issues such as climate change, natural
capital, and a circular economy.
The Kirin Group has established the Group CSV Committee (meets three times a year). The committee is an advisory
body to the CEO and COO that discusses environmental and other CSV issues across the Kirin Group. The committee isco-chaired by the CEO and COO of Kirin Holdings, with its members being the CEOs of major Kirin Group companies andsenior executive officers of Kirin Holdings. With the participation of outside experts from a multi-stakeholder perspective,
as necessary, this committee engages in in-depth discussions on matters such as current and future sustainability
14

issues, the degree of dependence, and the degree of impact, as well as risks and opportunities associated with theseissues. The committee then reports its decisions to the Board.
The Kirin Group has established the Group Environmental Meeting (meets twice a year) under the Group CSV Committee.
This meeting has the officer in charge of CSV strategy as the chair and the relevant senior executive officers anddepartment heads as members. The meeting mainly monitors progress related to roadmaps set for climate changeGroup CSV
Committee

issues and environmental issues such as natural capital and the circular economy, as well as exchanging opinions
on related policies, strategies, and plans. At meetings of the Group CSV Committee and the Board, there are agenda
items and reports concerning the results of deliberations by the Group Environmental Meeting, as necessary.
Through the establishment and operation of the Group Environmental Meeting, we have strengthened our initiatives
targeting sustainability-related issues, as required by Japan’s Corporate Governance Code following revisions in 2021.
Environmental management, including responding to climate change, is part of our CSV management system.
The Kirin Group has established the Group Risk and Compliance Committee (meets twice a year and as necessary).
This committee consists of executive officers from Kirin Holdings, and makes resolutions concerning Group-wide risk
management policies and the identification of important risks, and reports the results to the Board of Directors asnecessary. This committee also controls environmental risk management activities.
Starting from the 2022 Medium-Term Business Plan, performance-linked remuneration for senior executive officers reflectsGroup
Environmental
Meeting(Working
Group on theEnvironment
under theGroup CSV
Meeting)

the target achievement rate for non-financial indicators, as an incentive to promote the medium- to long-term businessplan. With regard to climate change, we have set a mid-term target of a “23% reduction in GHG emissions by 2024” toachieve our “SBT for 1.5°C” target. Additionally, in relation to both climate change and natural capital, we have set
targets for the efficiency of water use at production sites and breweries with high levels of water stress, and in relation
to the circular economy, we have set a target of “38% usage of recycled resins in PET bottles in Japan,” as KPIs linked toremuneration.
We incorporate other environmental targets into our CSV Commitment, our non- financial KPI targets, and reflect them inmanagement plans by setting them as performance indicators for each operating company. The status of achievement of
the CSV Commitment serves as a metric for assessing the performance of the CEOs of group companies.

Group Risk andCompliance
Committee●Formulation of policies,
strategies, plans, targets
and draft KPIs for the four
environmental issues (climatechange, water, containers
and packaging, and biologicalresources)●Chair: Executive officer in chargeof CSV of Kirin Holdings●Executive officer in charge of
SCM strategy, General Manager
of CSV Strategy Department,
General Manager of Corporate
Strategy Department, General
Manager of Finance Department,
General Manager of Procurement
Department, General Manager
of Corporate Communication
Department, General Manager
of IR Section, General Manager
of Research & Development
Division, and General Manager
of Technology Development
Department*1●Chair: Executive officer in charge●Deliberation of fiscal yearof risk management of Kirin
policies concerning group risk
Holdings
management, including risks
related to the environment,●Executive officers of Kirin
and important risks for theHoldings
Kirin Group●Monitoring risk and complianceprojects and responding tosudden incidents*1 Kirin Brewery technical manager. Other affiliations not specified belong to Kirin Holdings.

Holistic Analysis of Risks
and Opportunities●Quarterly
monitoring ofimportant risks
and the executionof business
operations,
includingenvironmental●Resolutions
concerningplans for fiscal
2024, including
environmental
targets, KPIs, andimportant risks

Activity

4 times a year
+ as needed(monthly
for riskmonitoring)

The Board●Chair: non-executive director●Supervision of execution ofenvironmental operations●Non-executive 7, Executive 5
within the Group●Resolutions related to mediumand long-term strategies andfiscal year plans●Resolutions related toimportant non-financial targets
and KPIs, including thoseconcerning the environment●Monitoring the degree of
dependence and impact
on natural capital, as wellas environmental risks andopportunities

・ TNFD
TCFD

Achievements

Environmental
StrategyFrequency

In the Kirin Group, the Board of Directors deliberates and resolves on basic policies for CSV, including environment-

Members

Message fromTop Management

GovernanceIncorporating non-financial KPIs in performance-linked remuneration
Please refer to the following for information about the relationship between executive remuneration andnon-financial indicators in our Medium-Term Business Plan.

General Meeting of Shareholders

https://www.kirinholdings.com/en/purpose/governance/conpensation/
Auditing

Audit & Supervisory Board

Auditing

The Board

Accounting Auditor

Cooperation
Auditing

For the period from 2022 to 2024, our CSV Commitments, which is incorporated into the management
plans of the Kirin Group, is shown below.

Message fromTop Management

Status of Governance for Environmental Issues

https://www.kirinholdings.com/en/impact/csv_management/commitment/
Cooperation

Chief Executive Officer*

Auditing

Structure of executive remuneration

Medium-TermBusiness Plan
Management Targets

1

Environment
Nonfinancial CSV Commitment
indicators Employee

Financial ROIC
indicators Normalized EPS

engagement score

Environmental
Strategy

Nomination and Remuneration
Advisory Committee

President & Chief
Operating Officer* 2

Cooperation

15

Internal Audit

Group CSV Committee

Executive Officers

Group Meetings for each
Sustainability Issues* 3

Departments

Environment

Group Information Disclosure
Committee

Internal Audit

Theme

Non-financial targets

Climate Change

Rate of reduction in GHG emissions
Rate of reduction in Scope 1 + 2 emissions compared with 2019

Containers andPackaging

Recycling rate of resin for PET bottles

Water Resources

Water consumption rate at production sites and breweries
with high levels of water stress

ActivityGroup Risk and Compliance
Committee

Internal Audit Department

Item

・ TNFD
TCFD

Indicators

Group Executive Committee

LinkedGroup
Companies

Fixed remuneration
Operating Companies

Performance-linked remuneration

Group Service Companies

Trust-type stock-based
remuneration (40%)

Bonuses (30%)

Single-year PSU

Representative
Director & COO

Basic remuneration（38%）

Bonuses（26%）

of expertise in order to ensure that directors of the board, audit and supervisory board members, andexecutive officers effectively engage in Group decision-making and perform supervision and execution
aimed at achieving CSV, which is at the core of the company’s management. See below for a skill map ofsenior management.
https://www.kirinholdings.com/en/purpose/governance/provisions/

Trust-type stock-based
remuneration (36%)

Single-year PSU

RSUMedium-term plan PSU

Skills and competencies
The company appoints persons who possess the required experience, advanced insight, and a high level

RSU

Medium-term plan PSU

Other directors
and executive
officers

Basic remuneration（43%）

Bonuses（25%）

Trust-type stock-based
remuneration (32%)

Single-year PSU

RSUMedium-term plan PSU

Holistic Analysis of Risks
and Opportunities*1 Chief Executive Officer (CEO): The Executive Officer responsible for overseeing the overall management of the Group*2 Chief Operating Officer (COO): The Executive Officer responsible for overseeing the business operations of the Group*3 Group Environmental Meeting, Group Business and Human Rights Meeting, Group Health and Safety Meeting, etc.

Representative
Basic remuneration (30%)
Director & CEO

Results of financial impact assessment
We assessed the financial and asset impacts of climate change,

Estimated financial and asset impact
Environmental
themesnatural capital, and containers and packaging. We have summarized
the interrelated impacts of climate change, natural capital, andcontainers and packaging.

Physical risk*1

Decline in yields of agricultural products*22℃ scenario: Approx. 1.3 billion yen to 3.4 billion yen (2050)
4℃ scenario: Approx. 3.6 billion yen to 13.7 billion yen (2050)

Financial impact of energy due to carbon pricing

1.5℃ scenario: Approx. 10.2 billion yen (2030)
2℃ scenario: Approx. 9.4 billion yen (2030)
4℃ scenario: Approx. 5.1 billion yen (2030)

Financial impact of agricultural products due tocarbon pricing*2

RCP2.6/SSP1: Approx. 0.9 billion yen to 4.4 billion yen (2050)
RCP8.5/SSP3: Approx. 2.4 billion yen to 8.8 billion yen (2050)

Disruptions to operations owing to floods

Wind and flood damage simulation results: Approx. 1 billion yen
Actual data from past disasters (1 billion yen to 5 billion yen)

Disruptions to operations owing to droughts

Approx. 0.03 billion yen to 0.6 billion yen

Physical risk

Negative impact of PET bottles

Approx. 1.1 billion yen

Transitionalrisks

Procurement of certified products

Approx. 0.06 billion yen

Increase in infectious diseases

Market for immunity and health supplements: Approx. 28,961.4
million US dollars (2030)

Increase in heatstroke

Market for non-alcoholic beverages that prevent heatstroke:
Approx. 94 billion yen to 188 billion yen (2100, 4℃ scenario)

Reducing food waste

Approx. 0.9 billion yen

Financial impact from the reduction of chemicalfertilizers and pesticides for coffee farms in Vietnam*3

0.11 billion yen

Business risks / social issues

Financial impacts

Exposure of production sites to floods

Approx. 1.0 billion yen to 5.0 billion yen

Residual value of related facilities due tostrengthening of energy-saving legislation

Approx. 0.11 billion yen

Climate change
Transitionalrisk*1be replaced with hydrogen and electricity before the service lifeof equipment is reached as a result of laws and regulations. For
reference, we disclose the “residual value of related facilities.”
Estimates of the financial impact related to climate change andnatural capital are limited, and we cannot determine risk from

Climate change andPhysical risk
natural capitalfinancial impact estimates alone. Accordingly, we have combined
these estimates with qualitative analysis and assessments fromscenario analysis for reflection in our strategies. For detailed analysis
results and estimate methodology, as well as specific environmental

Natural capital andcontainers andpackagingrisks and opportunities, business impact, and strategic resilience
analysis, see "Holistic Analysis of Risks and Opportunities, Business
Impact, and Strategies in Environmental Management." →P.68

Climate change

Business
opportunity

16
Natural capitalBusiness
opportunity

Environmental
themesRisk types

Climate change

Transitionalrisks

Holistic Analysis of Risks
and Opportunities* The calculation method for each financial impact is as follows.
・ Reduced yields of agricultural products due to climate change: Estimated from standard prices for beer by country as shown in the results of research using the economic models of Xie et al., and the research results of Hasegawa et al., aspresented in the IPCC “Special Report on Climate Change and Land (SRCCL).”・ Energy prices due to carbon pricing: Estimated from Current Policies Scenario and Sustainable Development Scenario in Annex A of the IEA “World Energy Outlook 2019,” and the IPCC Special Report on Global Warming of 1.5℃, etc.
・ Carbon pricing and prices of agricultural products: Estimated from the research results of Hasegawa et al., as presented in the IPCC “Special Report on Climate Change and Land (SRCCL).”・ Flood risk: The sum of the results of estimations for 200-year disasters for 20 locations in Japan using the wind and flood damage model flood simulation. In addition, the actual amount of damage caused by past disasters in the cases of Lion’sCastlemaine Perkins Brewery (approx. 1 billion yen) and Kirin Brewery's Sendai Plant (approx. 5 billion yen).
・ Drought risk: Hypothetical situation where production is affected by a drought for a certain period of time・ Negative impact of PET bottles: Estimated the financial impact in the event of a negative influence on natural capital from improperly disposed of used PET bottles that leak into the ocean from available statistics based on the company's own
production volume ratios.
・ Risk from transition to certified products: Estimation of expenses from switching to tea and coffee procured from certified sustainable farms to the extent currently possible.
・ Infectious diseases: Estimated from WHO "Quantitative risk assessment of the effects of climate change on selected causes of death, 2030s and 2050s" and “Dengue and severe dengue,” January 10 2022.
・ Heatstroke: Estimated from a S-8 2014 Report by Project Team of Comprehensive Study on Impact Assessment and Adaptation for Climate Change.
・ Food waste reduction: Estimated from the cost reduction effect if the target is achieved (Kirin Brewery, Kirin Beverage, Mercian, Koiwai Dairy).
・ Reduction in agricultural chemicals and fertilizers: Estimated reduction in costs associated with the reduction of chemical fertilizers and pesticides for coffee farms in Vietnam
・ Flood exposure: Estimated from wind and flood damage model flood simulations and actual data
・ Residual value of related facilities due to strengthening of energy-saving legislation: Residual value of boilers and trucks (for both of which, we have assumed that it is very unlikely that we will discontinue the use of before the end of their service
lives are reached if fuel conversion is required by laws and regulations. We have determined that there will be no financial impact, but for reference purposes, we disclose the residual value)

Activity

Financial impacts

・ TNFD
TCFDBusiness risks / social issues

Environmental
Strategy

We assume that it is unlikely that fuel for boilers and trucks will

Risk types

Message fromTop Management

StrategyWater risk and stress at production sites

Scenario analysis related to climate change and resilience assessment using the LEAP approach fornatural capital are as follows.

Degree of risk and stress

Scenario analysis related to climate changeHigh

Physical risk
We verified water risk, water stress, and other information for manufacturing sites (plants and breweries)
using the latest data (Aqueduct 4.0), and found that the overall level of risk is rising. Additionally, in

U.S. (7 establishments)

relation to agricultural products, we believe that if we do not take sufficient measures to address climate

China(3 establishments)change, it will be impossible to avoid a significant impact on the yields of key agricultural raw materials,

Water stress Water risk Water pollution

Water stress Water risk Water pollution

Japan (28 establishments)

as well as water risk and water stress by 2050 (2100 in some cases).

Water stress Water risk Water pollution

At present, the Kirin Group is focusing on initiatives such as the diversification of suppliers, support

Environmental
Strategy* For water risk, water stress, and water pollution,
we have referred to the following items, using the latest Aqueduct 4.0 (WRI).
Water stress: Baseline Water Stress
Water risk: Physical Risks Quantity
Water pollution: Untreated connected wastewater
Business sites are as of 2023, and the business sites
subject to assessment are listed on →P.114

Low

Message fromTop Management

Resilience Assessment

for the acquisition of sustainable farm certification, and the development of mass plant propagation
technology, and we believe that we are resilient to physical risks to some extent. Even if the Kirin Group
that it will be difficult to completely avoid the effects of global warming. Therefore, we intend to consider

Thailand(1 establishment)

Vietnam(2 establishments)

Water stress Water risk Water pollution

Water stress Water risk Water pollution

・ TNFD
TCFD

achieves our “SBT 1.5°C” target and the “SBT Net-Zero” target, however, it is becoming increasingly likely
appropriate adaptation measures and include them in transition plans.

Australia (9 establishments)
Water stress Water risk Water pollution

Transitional risks

New Zealand(3 establishments)
Water stress Water risk

With regard to the financial impact of carbon pricing on energy costs, we estimate that achieving the “SBT
17

Water pollution

1.5°C” target early will reduce energy costs by approximately 4.7 billion yen (2°C scenario) in 2030. If,
a level that we cannot ignore. We also estimate that the financial impact of carbon pricing on agricultural
prices will be similar to the financial impact of agricultural prices due to the physical effects of climatechange.

Impact of climate change on yields of key agricultural products and water stress in agricultural
production areas around 2050
Northern Europe*1 This is not a financial impact assessment that takes into account both carbon pricing and global warming impacts.

Business opportunity
In response to the impact of climate change on society, we believe there are business opportunities
related mainly to the spread of infectious diseases and heatstroke in the “Health & Well-being domain,”

99% increase in suitable land

Czech Republic-5.9%(Spring barley)

FranceUkraine-10% or more
(Winter barley)-20% or more
(Spring barley)
Mediterranean coast

Germany-14%~+18%

Relative Value(times)

20

2030
Region10

Asia-Pacific highincome countries

1981~2000
RCP8.5 MIROC
RCP8.5 MRI

2031~2050
Base period

2081~2100

RCP8.5 GFDL
RCP8.5 HadGEM

East Asia
Southeast Asia

With GDPconsideration

Without GDP
consideration

With GDPconsideration

81

56(▲31%)

92

69(▲25%)

31,09337,559(＋21%)

28,574

21,679(▲24％)

71,338(0％)

75,666Created by Kirin based on A-PLAT Projections for the Future: S-8 Research Results, published in 2016,
Chart of Excess Deaths Related to Heat Stress
https://adaptation-platform.nies.go.jp/map/national/index.html

75,669(0％)

Mediterranean coast(West) -0.3%(East) +4.4%

Change in overall wine
production for each 1℃ rise
-2.1%(Spain as a whole)-4.6% (Andalusia)-4.8% (Duero River Valley)-34.6% (northern Mediterranean)

China

China

-27.4%-9%U.S.
U.S. (Washington)

Southeast Asia

India (Darjeeling region)-16%

U.S. (Southwest)-27%

U.S. (Midwestern)-5%~-12%New Zealand-40%~-80%

168% increase insuitable land

Sri Lanka

U.S.

-46.5% to +5%

13% reduction inland suitable for arabica
16% reduction inland suitable for robusta

MalawiTea leaves

Argentina

Australia(ex. southern coast)

Chile-10~30%22% reduction in suitable land

Coffee beans

Medium to High

Brazil-19% to +4%-28.5%

73% reduction in suitable land

Wine grapes

Brazil

55% reduction inland suitable
for arabica
60% reduction inland suitable
for robusta+40% or more

Western Australia

Australia (southern coast)

Low to Medium-20%

Argentina

Decline in yields in lowlands, low impact in highlands

East Africa

Brazil-10%

60% reduction in land
suitable for arabica
52% reduction in land
India (Assam region)
suitable for robusta
3.8% decline in yields per 1°C
increase above average temperature of 28°C

Chitipa 80% reduction in suitable land
Nkhata Bay 60% reduction in suitable land
Mulanje 70% increase in suitable land
Thyolo 20% increase in suitable land

Hops

Increase in suitable land
while also anticipating
obstacles from hightemperature

+0.5%

-80%

Change in suitable land from1,500 to 2,100 meters above
sea level to 2,000 to 2,300 meters
above sea level.
Drastic reduction in suitable landin the western part of Kenya,with land remaining suitablein the mountainous area of Kenya

Barley-12%

U.S.

Japan (Central)

Korea

India

CanadaIncrease in suitable land
Pinot Noir cultivation possible+16~50%Mediterranean coast-68% reduction
in suitable land

Water Stress (around 2050)

Japan (Hokkaido)West Asia-5%~+10%

Kenya

2050

Without GDP
consideration

71,335Spain-40.6%

Corn

Soybeans

High to Extremely High

25% reduction in suitable land

Holistic Analysis of Risks
and Opportunities

Forecast population exposed to risk of dengue fever underthe 4℃ scenario(Upper: Ten thousand persons; Lower: Difference from nottaking GDP into consideration)

Excess deaths related toheat stress in Japan

Finland-8.5%

which we have identified as a key area in our Long-Term Management Vision for 2027.

0

Activity

however, we do not achieve net-zero by 2050, the impact of carbon pricing on energy prices could be atMateriality analysis of natural capitaland assessments related to natural capital.
In the scoping phase of the LEAP approach, we conducted a comprehensive assessment of the level ofHeat map of impact and dependency analysis and assessment results*2
Assessment of the dependence of businesses on nature

implementing the “Regenerative Tea Scorecard (referred to below as the “Scorecard”)” in order to promote
regenerative agriculture, which we began in 2023.
The analysis and assessment procedures are as follows.

Established based on the
judgment of procurement
departments, taking into accountthe knowledge of natural capitalin the CSV Strategy Department

Bias toward particularimport destinations

We have estimated and assessed
our bias for agricultural raw
materials procured by the
Kirin Group by applying the“Herfindahl-Hirschman index,”
which is an indicator formeasuring the competitive statusof companies in an industry.

Analysis and assessment procedures
Conducted in
the previous part
Scoping

Determine the scopeof assessment

18

Evaluate

Survey of the state ofnatural capital andbiodiversity in andaround 10 tea farms in
Sri Lanka

Qualitative review ofdependencies andimpacts related tonatural capital on tea
farms in Sri Lanka

Confirmation that thetea farms are locatedin regions with highbiodiversity.
Confirmation of
appropriateness ofpriority location

Tea cultivation
depends on water andsoil, which are being
damaged by climatechange and economic
development

We are also utilizing the results from 2023 this time

AssessAssessing risks
and opportunities

PreparePreparing reports

Step1
Identification of risks andopportunities

Disclosure inaccordance with
TNFD guidance

Identification of natural
capital-related risks andopportunities for Kirin at tea
farms in Sri Lanka

Described in"Futuredirections"

Step2
Assessment of risks andopportunities through scenario
analysis
Assessment and prioritization ofrisks and opportunities identified
in relation to natural capital

Assessment axis
Agricultural product

Reiteration of theappropriateness ofdesignating tea farms in Sri
Lanka as a priority
target/region

LocateLocating our
Evaluating ourinterface with nature dependencies and impacts

Ecosystem
services that
we dependon

Indicators

Scoping implementation
Based on an overview of the business domains and value chain of the Kirin Group as a whole, we have establishedpalm oil, coffee beans, and soybeans" which are covered by the “Kirin Group Action Plan for Sustainable Use of
Biological Resources,” as well as "barley, hops, and wine grapes," of which we procure large amounts, on the twoaxes of "impact of our businesses on nature" and "nature-related dependencies of our businesses." We then used

Soybeans

Hops

Concerning the “impact of our businesses on nature,” we assessed the following indicators: “carbon footprint

Wine grapes

considered. We also confirmed whether agricultural products are listed as high risk by the SBTN and the European
Regulation on Deforestation Free Products (EUDR).

GHG
emissions

Acreageper unit
yield

Relativeassessmentof impact
Number ofFreshwater
high-riskuse (watercommodities
footprint)
listedBarleymaterial production areas,” and “bias toward particular import destinations.”basis, and which are among the impact factors listed by IPBES*1 that the TNFD recommendations state should be

Relativeassessmentofdependency

ChangeResource
Commodityin land/use/
risk
freshwater/conservation
ocean use

Palm oil
Coffee beansat the cultivation stage,” “land use footprint,” and “water footprint,” for which data is available on a per-crop

Kirin bias
towardparticularimportdestinations

ClimatechangeCartons

the LEAP approach for scoping of the agricultural products to be analyzed in detail.

assessment indicators: “procurement volume,” “impact on Group sales revenue,” “possibility of substituting raw

ImpactProvisioning services

Possibility of
substituting
production
sites

List of commodities
covered by the EUDR

Cardboard

For the “nature-related dependencies of our businesses,” in order to assess our dependence on “provisioning
services” for agricultural raw materials, as indicated in the TNFD recommendations, we used the following original

SBTN High Impact
Commodity List

Holistic Analysis of Risks
and Opportunities

agricultural raw materials. For this reason, we analyzed and assessed "black tea leaves, paper/printed materials,

Commodity risk

Dependence

Percentage
of total sales
revenue fromAmount ofproducts
agriculturalfor whichproducts
agricultural
procuredcrops arethe mainingredient(s)Water footprintof agricultural
products

Black tea leaves
Paper andprinted materials

the hypothesis that there is a high degree of dependence and impact on nature at the stage of procuring

Land use footprintof agricultural
products

Activity

Analysis and assessment
from the perspective of"dependence of businesses
on nature" and "impact ofbusinesses on nature,"
based on the hypothesis of
agricultural materials as
materials

Conducted in this part

Carbon footprint
at the cultivation
stage of agricultural
products

・ TNFD
TCFD

Possibility of
substituting raw material
production areas

Environmental
Strategyin Sri Lanka by supporting the acquisition of certification, which we have been doing since 2013, and by

Calculate the percentage ofoverall sales revenue of a fortypical brands used

Introduction/
removal of invasive
species

The Kirin Group has identified that there is high possibility of reducing risks associated with natural capital

Percentage of total sales
revenue from products
for which agricultural
raw materials are themain ingredient(s)Contamination/
decontamination

various ways, not only by climate change, but also by economic development.

Calculated from procurementdata

Resource
use/conservation

risks and opportunities using the LEAP approach. The results show that Sri Lanka's natural capital is affected in

Amount of agricultural
raw materials procured

Change in land/
freshwater/
ocean use

selected tea farms in Sri Lanka as a field where we can perform concrete activities, and analyzed and assessed

Climate change

dependency and impact, and we are prioritizing coffee beans, hops, tea leaves, and soybeans as a result. We

Assessment of the impact of our businesses on nature

Message fromTop Management

Based on v1.0 of the TNFD recommendations and the updated LEAP approach, the Kirin Group reassessed issues

High

Low

*1 IPBES: An intergovernmental organization that scientifically assesses trends related to biodiversity and ecosystemservices and strengthens links between science and policy*2 For GHGs, we used the ClimateHub database; for land use, we used data for 2022 disclosed by the FAO; forfreshwater, we used Mekonnen-Hoesktra (2011)environmental assets: water resources, land ecosystems, land, and air. We also identified external factors andexternal stakeholders for each important natural capital and determined risks and opportunities.

Materiality analysis of main raw materials

the “impact of our businesses on nature"and the “nature-related dependencies(%) Coffee beans
100of our businesses.” The horizontal axis

90

indicates dependency, and the vertical

80

axis indicates impact. Based on this

Although we have not yet fully consideredvertical axis, we put “market forces,” with the state of strict regulation and high awareness among consumers

60

30
20

results are consistent with knowledge

And based on the "important implications" obtained in this way, we have summarized our future directions (Prepare:preparing reports) as follows.

BarleyHighly consistent and shared
Cardboard

Wine grapes
0

20

40

60

Dependence

80

100

120 (%)

Scenario #2
Awareness of theclimate crisis rises
and there is a race
to implement
initiatives

Analysis and assessment of risks and opportunities based on the LEAP approach
We analyzed and evaluated our dependence and impact, and risks and opportunities for tea leaves from Sri Lanka,

Degradation ofwhich we have designated as a priority target and priority location in the scoping described in the preceding
paragraph. For the Locate and Evaluate stages, we used data from when we conducted these processes andScenario #4

disclosed them in our environmental report in 2023.
19

The priority ofnature initiatives
is lower

Business model/value chain

Dependence
pathways● ● Control of pests and diseases● Soil necessary for tea plant cultivation● Reduction in domestic water use by residents

Impactpathways

in farms and local communities/degradationof drinking water quality● Environmental degradation caused by idle tea
farms where tea leaf cultivation has beenabandoned● Reduction in forests used by communities● Criticism of artificial damage to wildlife andrare species● Stricter regulations/penalties due to soil
contamination, etc.

* Impact drivers and external factors are color-coded for each of the four environmental assets (water resources, land ecosystems, land, and air).
In fact, we have analyzed and assessed each risk and opportunity in detail, but we have only provided the key points here.

Assess (assess risks and opportunities)
Based on lists of important impact drivers and ecosystem services compiled during the Evaluate phase, wecreated a diagram showing the relationships between dependency and impact pathways for each of the four

Scenario #3
Kirin's activities are
not correctly
evaluated and there
is no improvement inour product brands

Increased risk in
the non-alcoholic
beverages
business

Future directions (Prepare: preparing reports)
In response to important implications gained from the Assess stage, we have summarized our future activities at
Sri Lankan tea farms as follows.
We plan to incorporate these activities into our medium- to long-term roadmap in the future.
Important implications gained from risk and opportunity assessment
Summary of assessmentof physicals risks

Opportunities, scenario #2, and scenario #3

Physical risks andopportunities●Natural disasters due to climate change, fall in yields, anddecline in tea leaf quality●Erosion of topsoil due to land use changes associated witheconomic development●Low genetic diversity and potential for the spread of disease intea plants●Improvements to farm resilience with certification training

Policy and regulatory
risks●Stronger regulations are unlikely because the aggressive shift toexcessive organic farming significantly impacted agriculture

Market and valuation
risks (consumers)●It is unlikely that there will be an expansion in ethicalconsumption in Japan anytime soon
●Future generations are highly interested in sustainability

Market and valuation
risks (investors)●Investors are highly interested in Nature Positive and regenerative
agriculture

Liability risk
(community)●The likelihood of facing penalties for legal violations is assumed
to be low

●In addition tocertification training,
we are also using
the “scorecard” tospread regenerative
agriculture at tea farms●Improvements to soil
moisture retention
at tea farms throughweed management, as
well as water source
conservation activities
on farms●As necessary, expand
the landscapeapproach adopted
in Sri Lanka to those
production areas

Holistic Analysis of Risks
and Opportunities

Other organizations, societies, and nature

Nature-related risks and opportunities

Changes due to external factors● Strengthened laws and regulations/penalties
related to water resources● Spread of disease in tea plants with scarce
genetic resources● Strengthened laws and regulations/penalties
related to wildlife and ecosystems● Strengthened laws and regulations/penalties
related to soil contamination and soil runoff● Reduction in tea leaf yield and quality due toglobal warming● Strengthened laws and regulations/penalties
related to GHG emissions● Surface water for tea plant cultivation

Severe degradation

Consistency low and conflicting

Ecosystem services

Nature (environmental assets)

Important impact drivers● Deterioration of water quality and damage tohealth from agricultural chemicals, etc.
● Changing/abandonment of tea farms● Decline and extinction of rare animals, anddecline in reputation● Soil contamination by agricultural chemicals
and chemical fertilizers● Soil runoff/soil contamination● GHG emissions from farms

Assumehigh feasibility

Activity

Relationship between dependency and impact pathways

ecosystem services

Risk-opportunity importance map for two scenarios

・ TNFD
TCFD

Scenario #1
SteadilypromoteNature Positive

Consistency of market and non-market forces

0

capital over many years and are credible.

financial impact, we created risk maps and conducted assessments.

Cartons

10

gained from our initiatives targeting naturalscenarios. Based on the risks and opportunities identified at the previous stage, as well as the magnitude of thePalm oil40

assessment items, we believe that thethe bottom. Within this framework, we selected “nature degradation” scenarios #2 and #3 as the most realistic

Soybeans

50

some factors, such as the weighting ofand investors at the top, and the state of loose regulation and low interest among consumers and investors on

Black tea leaves

Environmental
Strategybeans, hops, tea leaves, and soybeans.

Impactwe are prioritizing four raw materials: coffee

Hops

70

“materiality analysis of main raw materials,”

We then conducted scenario analysis. We put “ecosystem services” on the horizontal axis of the scenario, withthe status quo level of natural capital on the right and the degradation of natural capital on the left. On the

Message fromTop Management

Materiality analysis and assessment results in scoping
We conducted analysis and assessment ofWe have formulated holistic business transition plans which aim to simultaneously realize a decarbonized

Investment plans and financing planssociety, Nature Positive, and Circular Economy, ensuring business continuity.

Investment and financing plans for "Scope 1+2 GHG emissions reduction" and "expansion of the use of

Our transition plans from the perspective of climate change mitigation and adaptation are shown in therecycled PET resin" are as follows.

figure below.

Scope
1+2 GHG
emissions
reduction

Expansionof the use ofrecycled PET
resin●Enhance manufacturing facilities for small PET
bottles at the Kirin Beverage Shonan Plant(investment of approximately 10 billion yen)
●Plan to formulate investment roadmaps with aview to developing practical applications forchemical recycling●In 2020, we issued a green bond (10 billion
yen) to finance the procurement of recycled
PET resin and the installation of a heat pumpsystem at plants●In December 2022, we became the first foodand beverage company in Japan to develop
a framework that complies with transition
finance-related guidelines, etc., and to haveobtained a second party opinion from an
independent third party in order to promotetransition initiatives on the finance side
●In January 2023, we became the first food andbeverage company in Japan to raise funds witha transition-linked loan (50 billion yen), which
is aimed at financing energy conservation
and renewable energy-related projects that
contribute to reducing Scope 1 and Scope 2
emissions

Reduce the weight of containers

Mitigation measures

Increasing rate of use of recycled aluminum in aluminum cans and using GHG-free aluminum cans
Increasing the horizontal recycling rate of PET bottles and the rate of use of recycled aluminum in aluminum cans
Reduction of GHG emissions from farmland through regenerative agriculture, etc., and carbon storage
Optimization of production and distribution (improvement of transportation efficiency (modal shift and joint distribution))
Exploration and introduction of EV and fuel cell truck technologies, etc.
Supply chain analysis and stronger cooperation with business partners (cooperation in setting targets and reduction plans)

Scope1+２ (compared to 2019)

Scope3 (compared to 2019)20

30%

Net zero

2030

2050

reduction

We make investment decisions based on annual plans to address issues related to containers andNature positive

packaging other than expanding the use of recycled PET resin.
Plastic circulation 100%

Full-scale development of regenerative agriculture
Breeding varieties suited to global warming /Utilization of mass plant propagation technology
Flood response / Water reduction
Water source conservation activities
Heatstroke prevention and immunity support through Health Science

The cost for Nature Positive-related measures is around 20 million yen per year. This is the total
amount, which is broken down into current support for obtaining certification for tea farms in Sri Lanka,
development and pilot testing of the Scorecard for regenerative agriculture, and joint research with
NARO, including carbon storage at Mariko Vineyard. We anticipate that it will still take several years to
fully implement regenerative agriculture, and that additional costs will be required. Further expenses
for research and implementation will also be necessary for our next targets, such as soybeans, hops,
and barley.
The main targets for the reduction of Scope 3 emissions are containers and packaging and agricultural
raw materials. We envisage that regenerative agriculture will be a key adaptation and mitigation
measure for climate change related to agricultural raw materials. In light of this background, when
considering “Scope 3 transition plans” in the future, we plan to consider transition strategies relatedto "Nature Positive" and “Circular Economy,” and thus formulate holistic plans that also incorporate
investments and costs.

Holistic Analysis of Risks
and Opportunities

Adaptation measures

Procurement of raw materials from sustainable farms and certified forestry /Support for obtaining sustainable farm certification / Prevention of soil runoff with cover crops

Activity2025

50%
reduction

・ TNFD
TCFD

Financing plans●Plan to reduce GHG emissions on a profit and - loss neutral basis by balancing energy
cost reductions by saving energy andtransition costs (e.g. CAPEX of projects andcost premium of renewables).
●In order to promote environmental
investments, we will use the Net Present
Value (NPV) as an indicator for environmental
investments aimed mainly at reducing GHG
emissions, and we have also introduced ICP(Internal Carbon Pricing) as a method formaking investment decisions●Plan to consider strategies for 2030 andbeyond, based on the assumption that there
will be infrastructure and technologicalinnovation

Environmental
Strategy

Investment plans

Message fromTop Management

Transition Plans

The Kirin Group is working to reduce GHG emissions based on a roadmap consistent with the “SBT 1.5°C”
target for 2030 and the “SBT Net-Zero” target for 2050. We plan to create concrete measures, not only to
reduce GHG emissions, but also to mitigate and adapt to climate change.
Scope 1+2 emissions reduction
Our roadmap for reducing Scope 1 and Scope 2 emissions by 2030, as well as our investment andScope 2 emissions, namely: “promotion of energy conservation,” “expansion of renewable energy,” and（%）
Obtained approval for “SBT for 2.0°C”
100
Ratio of
Joined RE100
renewable energy
in electric power02017 2020
2022

each area are as follows.
ActionEnergy transition●Completed the transition of fuel to natural gas at all Kirin Brewery and Kirin Beverage plants,
as well as the Mercian Yatsushiro plant●Lion plans to install an electric boiler at a brewery in New Zealand. The company plans to
expand its use of electric power generated from renewable energy

Focus on promoting energy conservation and expanding
renewable energy through 2030

Net
zero

From 2030 onward, expect that the combustion fuel used in the steam production
process will be converted from fossil fuels to hydrogen, etc.

2019

Investment

2020

2021

3.0
billion yen

2022

2023

2024

22.4
billion yen

2027
35.0
billion yen

2030 2033

2050

42.2
billion yen

10.0 billion yen
from green bonds

Supply of funds

Period: 2020 to 2024
Use of funds: Procurement ofrecycled PET resin and introductionof heat pump systems in plants

50.0 billion yen fromtransition-linked loan
Period: 2023 to 2033
Use of funds: Measures to conserve energy and expand
renewable energy, in order to reduce
Scope 1 and Scope 2 GHG emissions

Reduction of Scope 1 and Scope 2 emissions(ktCO2e)

700
600

Kyowa Hakko Bio

609

Kyowa Kirin
Lion

500

201

400

41
84

300

184

97
22
53
26
30
88

133

2024

2021

Kirin Beverage

316

23
56
35
35

40

100
0

123

59

200

Mercian

405

2027

255

Kirin Brewery
79
22
50
25
11
68

2030

(100million yen)

500

Investment and measuresfor energy conservation

422
350

300

12
9

224
237

200

Energy transition
362

150

100
0

30

15
15

74

2019-2021
MTP

2022-2024
MTP

104

2025-2027
MTP

Expansion of renewableenergy use

48

2028-2030
MTP

Holistic Analysis of Risks
and Opportunities

Investment

400

Activity

Expansion ofrenewable energy●At Kirin Brewery, we have installed large-scale solar power generation facilities at all nine
plants (PPA model at eight plants excluding the Yokohama Brewery)●Mercian introduced solar power generation using a PPA model at the Fujisawa Plant●Kyowa Kirin introduced a large-scale solar power generation facility (1.47MW) using a PPA
model at the Ube Plant●Kyowa Hakko Bio introduced solar power generation using a PPA model at the Hofu Plant●Lion acquired carbon neutral certification in Australia, as well as Toitū carbon zerocertification in New Zealand●Lion installed solar power generation facilities at Castlemaine Perkins Brewery and Little
Creatures Geelong

2050

・ TNFD
TCFD

21

Promotionof energy
conservation●Kirin Brewery introduced heat pump systems at the wastewater treatment facilities of six
plants in 2019
●At Shinshu Beverage, we reuse waste heat, which is difficult to use directly in rinsing
processes for bottles and caps, through a heat pump unit
●At the Kirin Brewery Okayama Plant, we reuse waste heat in hot water sterilizationequipment for cans and heat in the air

2040

50% decrease in
Scope 1 + 2 emissions
and 30% decrease in
Scope 3 emissions
compared with 2019

Obtained approval for “SBT for 1.5°C”

Scope1+
Scope202030

Obtained approval for “SBT for Net-Zero”（ktCO2e）800“energy transition,” and will also develop ways to optimize production and logistics, etc. Our actions in

100% of electric powerfrom renewable energy

Environmental
Strategyfinancing plans, is shown on the right. We will take a three-pronged approach to reducing Scope 1 andRoadmap to Net-Zero

Message fromTop Management

Plan to transition to a decarbonized societyAs part of our efforts to resolve issues related to Scope 3 emissions, we launched the “Kirin Supply

Of the categories in the “Scope 3 Standard” of the GHG Protocol, Category 1 (purchased goods andChain Environmental Program” to deepen cooperation with suppliers that account for large amounts

services) emissions from “containers and packaging” and “agricultural raw materials” account forof emissions, in areas such as containers and packaging, agricultural raw materials, and manufacturing

approximately 70% of the Kirin Group’s Scope 3 emissions. Category 4 (upstream transportation andcontractors. Under science-based approach, we will call for the mutual disclosure of emissions data

distribution) emissions from “transportation” make up approximately 10% of the total. These twoand the setting of targets in accordance with SBTi standards, provide support for the establishment of

categories are the main targets of the Kirin Group's efforts to reduce Scope 3 emissions.

targets, and jointly formulate and implement highly feasible measures to reduce GHG emissions.

We will continue working to reduce Scope 3 emissions through the two approaches of the “reduction

We have positioned Mariko Vineyard in Japan and tea farms in Sri Lanka as model cases to accumulateof our own independent emissions” and “encouragement of reduction at suppliers.” Transportation andknowledge on climate change mitigation and adaptation through regenerative agriculture. This knowledge

containers and packaging are the targets for reducing our own independent emissions. We will leverage

gained will be applied to other agricultural products and production areas.

Environmental
Strategy

the Institute for Packaging Innovation, which develops containers and packaging in-house, and which is
the only institute of its scale for a food and beverage company in the world.
We encourage suppliers to reduce GHG emissions from the production of containers and packaging
and their materials, and GHG emissions during the production of agricultural raw materials. We havedetermined that regenerative agriculture is effective way to reduce GHG emissions from agricultural
products. Our key actions are as follows.

Approach to reducing GHG emissions from agricultural raw materials

Agricultural raw
materials (26% of
Scope 3 emissions)●Initiation of joint research on the accurate measurement of GHG emissions from soil at
Mariko Vineyard and carbon storage using biochar from pruning debris●N ew Bel gium Brewing (U. S.) has begun procuring barley through regenerative
agriculture

Transportation (12%of Scope 3 emissions)●Optimization of production and distribution, joint distribution, and modal shift●Consideration of conversion to fuel cell trucks and EV trucks

Water resources

Biologicalresources

7％
12％

12％

Production of raw materials
26％

28％

Production(plants)

Storage andlogistics

Consumers

Recycling
Certified products

Approach to reducing GHG emissions from containers and packaging

Sustainable
resources

Process improvement

Development of new containers

EnergyWeight reduction technologies
Reuse

Water resources

Production of materials
Other Category 1
Transportation

Bio

Distribution

Biologicalresources

Product use & disposal

Raw materials(upstream suppliers)

Procuremen(business partners)

Production(plants)

Storage andlogistics

Consumers

Other
Recycling* Emissions other than the above (emissions from the manufacture andtransportation of capital goods, fuel, etc., waste from business operations,travel and commuting of employees, etc.)

Resources(waste cans, waste PET, waste cardboard, waste bottles, etc.)

Certified products

Holistic Analysis of Risks
and Opportunities

13％

Procurement(business partners)

Food loss

Proportion of Scope 3 emissions2％

Raw materials(upstream suppliers)

Activity

Containers andpackaging (28% of
Scope 3 emissions)・ TNFD
TCFD

Energy●In addition to reducing the weight of cans, we will also increase the rate of CAN to CAN
recycling, reducing the use of virgin materials and increasing the rate of use of recycledmaterials as much as possible●For aluminum cans, in response to the start of the development of practical applications
for GHG-free aluminum refined using renewable energy, we will research GHG-freealuminum●For PET bottles, in order to increase the PET to PET horizontal recycling rate, we will
increase the use of mechanically and chemically recycled materials, while also reducing
GHG emissions from the manufacturing process●We will contribute to the reduction of GHG emissions from transportation by reducing theweight of containers and packaging

22

Process
improvement

Regenerative agriculture

ActionMessage fromTop Management

Scope 3 emissions reduction

We will organize our transition to Nature Positive using the AR3T framework for natural capital proposed

We have adopted a landscape approach, which is "a method for sustainably solving issues based onby the SBTN (SBTs for Nature).

a comprehensive treatment of various human activities and the natural environment in raw material

ActionReduce23●Support the acquisition of Rainforest Alliance certification by tea farms in Sri Lanka andcoffee farms in Vietnam●Reducing food loss and waste●Introduction and continued operation of advanced water treatment using reverse osmosis
membranes at breweries in Australia, where there is a high level of water stress

Priority of manufacturing sites for each indicator: Water stress●Utilization of derelict farm land as Japan Wine vineyards. Restore ecosystems throughhedgerow-style cultivation●Conserve water sources on farms in Sri Lanka●Water source conservation activities at production sites in Japan●Participate in the development of guidance for the disclosure of financial information related
to natural capital, such as the TNFD and SBTs for Nature●Contribute to the expansion of the supply of FSC-certified paper by establishing a
consortium for sustainable paper use with other companies and NGOs
●Establish the Rainforest Alliance Consortium and contribute to raising awareness ofsustainable agriculture

On March 29, 2024, the Ministry of the Environment, the Ministry of Agriculture, Forestry and Fisheries,
the Ministry of Economy, Trade and Industry, and the Ministry of Land, Infrastructure, Transport andTourism jointly announced the "Transition Strategies toward Nature Positive Economy," reflecting
discussions by the Ministry of the Environment's “Study Group on Nature Positive Economies,” in which
the Kirin Group participated. One of the three points of view presented in this report is the “necessityof transition to Nature Positive management and contribution to the conservation of natural capital and
Projects in Sri Lanka and at vineyards in Japan are examples of "Nature Positive through business," inwhich we will restore and maintain “secondary nature” through business activities, and we believe thatthese examples fall under the "contribution to the conservation of natural capital and value creation" in
the Ministry of the Environment's transition strategies.
In accordance with the results of materiality analysis             atthe product level for agricultural raw→P.18
materials, we plan to consider our roadmap for soybeans, hops, and other products listed in the future.

In freshwater areas, we are researching water stress and impact (water intake) in relation to water
volumes in the basins of production sites and prioritizing the areas, in accordance with SBTs for Nature
guidance V1.0 issued in May 2023.

Country

Water stress

Water intake

Biokyowa

★★★★★

★★★★★

★★★

ThailandThai Kyowa Biotechnologies

★★★★★

★★★★★

★★★

Japan

Kyowa Pharma Chemical

★★★★★

★★★★★

★★★

Japan

Kirin Brewery Toride

★★★★★

★★★★★

★★★

Japan

Kirin Brewery Yokohama

★★★★★

★★★★★

★★★

Japan

Kirin Distillery Gotemba

★★★★★

★★★★★

★★★

Japan

Kyowa Kirin Fuji

★★★★★

★★★★★

★★★

Australia

Lion Tooheys Brewery

★★★★★

★★★★★

★★★

Japan

Kirin Brewery Nagoya

★★★★★

★★★★★

★★★

China

Shanghai Kyowa Amino Acid

★★★★★

★★★★★

★★★

Japan

Kirin Beverage Shonan

★★★★★

★★★★★

★★★

Lion Castlemaine Perkins Brewery

★★★★★

★★★★★

★★★

China

Kirin Brewery (Zhuhai)

★★★★★

★★★★★

★★★

USA

New Belgium Brewing Fort Collins

★★★★★

★★★★★

★★★

USA

Australia

Manufacturing sites

Biodiversity risk

* We assess water stress using three indicators for available water resources (Aqueduct Baseline Water Stress, Water
Risk Filter Baseline Water Depletion, and Blue Water Scarcity)* Water intake refers to the percentage of the total intake for 14 sites with high water stress* We assess biodiversity using scores for indexes calculated based on the IUCN Red List for basins at production
sites (START (Species Threat Abatement and Restoration) and STARR), as well as the presence of biodiversity
elements triggering KBA criteria inhabiting water within a 50km radius of basins at production sites, including fish,
amphibians, turtles, crustaceans, and dragonflies

Holistic Analysis of Risks
and Opportunities

value creation.”

which we launched in 2024, we intend to expand the regions where to which this method applies.

Activity

Transform

practice in Sri Lanka and vineyards in Japan, but through the “Kirin Supply Chain Environmental Program,”

・ TNFD
TCFD

Restore &regenerate

stakeholders," which the TNFD requires to be disclosed. Currently, we have only put this method into

●Achieve and maintain 100% use of FSC-certified paper and expand this initiative globally●Achieve and maintain 100% RSPO certified credits for palm oil as primary and secondary raw
materials (excluding palm kernel oil), and avoid procurement from countries and regions at
risk of deforestation●Continue development of applications for bag-type culture vessel technology that enables
mass plant propagation with minimal water●Education on wildlife conservation for young people living on farms in Sri Lanka

Environmental
Strategy

Avoid

production areas," to address issues related to "indigenous peoples, local communities, and affected

Message fromTop Management

Plan to transition to Nature Positive

Containers and Packaging

Food loss and waste

We will adopt a 3R+Renewable approach for promoting a transition to the circular economy for

The Kirin Group position issues related to food loss and waste, as issues for not only Nature Positive but

containers and packaging. Our main actions are as follows.

also  the circular economy. In order to reduce product waste losses, we are promoting manufacturing

ActionRecycle●We collect old beer bottles and one-way bottles, turn them into cullet, and reuse them asbottles●Expand the use of aluminum cans with a high percentage of recycled metal.
●We collect empty containers from vending machines and voluntarily collect and reusealuminum cans in cooperation with can manufacturers.
●Lion has developed a “Sustainable Packaging Strategy,” and will assume key roles such ascollection coordinator in states where Container Deposit Schemes are in place in Australia.
●Based on the “Kirin Group Plastic Policy,” our medium-term target is to achieve a rateof recycled resin use in 50% of PET bottles in Japan by 2027.
●In terms of “R100 PET bottles,” we will gradually expand the adoption of productsthat use 100% recycled PET resin from mechanical recycling, the current mainstream
method.
●We will also actively promote "bottle-to -bottle" horizontal recycling, in which used
PET bottles are collected and recycled into new PET bottles.
●Looking ahead to future supply and demand for recycled PET resin, we will formulate
and promote a roadmap for 2050, taking into account the status of progress on thedevelopment of practical applications for chemical recycling.

Renewable●We will promote the reduction of one-way plastics and their replacement with alternative
materials.

24

spent grains) as feed and compost.

Activity●We will continue to reuse returnable beer bottles

organizations. We are continuing to effectively use by-products generated in manufacturing processes (e.g.,

・ TNFD
TCFD

Reuse

such as the donation of unavoidable surplus inventory to local governments, food banks, and otherEnvironmental
Strategy

Reduce●Utilize the “Institute for Packaging Innovation” to promote weight reduction for containers
and packaging. Specifically, we developed and deployed the lightest returnable beer bottle
produced in Japan and reduced the weight of cans and PET bottles.

optimization by improving demand forecasts. In addition, we are promoting effective utilization methods,

Message fromTop Management

Plan to Transition to Circular Economy

In the EU, the transition to a circular economy is positioned as part of growth strategies, and "design"
is expected to play an important role in promoting this transition. Internally, the Kirin Group has theInstitute for Packaging Innovation, which focuses on developing containers and packaging and solving
related to the environment for containers and packaging. In addition to contributing to reducing GHG
emissions in transportation by measures such as reducing the weight of containers and packaging, we
will also contribute to the circular economy by creating practical applications for chemical recycling andbuilding a society that recycles plastics throughout society.

Holistic Analysis of Risks
and Opportunities

related problems. Taking advantage of this strength, we are able to solve social issues through design

the aforementioned transition plans are shown below.

Nature Positive, and a circular economy, but in reality, we will implement these plans as a single unified

Our specific activities and their results in relation to natural capital, in accordance with the SBTN's AR3T

plan that takes into account their interconnectedness. Our specific activities and their results for each offramework, are summarized below.

Climate change strategies and progress
Increase in resilience (adaptation)
Material agenda

Water resources

Biological resources

Climate change●Creation of more
lightweightcontainers●Increase rate ofuse of recycled
aluminum inaluminum cans●Consider theuse of GHG-freealuminum cans
●Increase thehorizontal
recycling rate of
PET bottles●Promotion of energy conservation●Expansion of renewable energy●Energy transition●Production optimization●Improvement of transportation efficiency (modal shift
and joint distribution)●Exploration and introduction of EV and fuel cell truck
technologies, etc.

●Provision of
products
to address
infectious
diseases●Provision of
non-alcoholic
beveragesthat prevent
heatstroke●Started surveys ofhigh-risk business sites
for insurance coverage,
utilizing the results ofsimulations of natural
disasters and floods(since 2022)●Implemented flood
prevention measuresand equipment
measures at
pharmaceutical plantsthat must ensurea stable supply of
products●Establishment of massplant propagation
technology for hops
●Coinciding with pilot
testing of scorecards
for tea farms in Sri
Lanka, cover crops
preserve soil moistureand prevent soil runoff
in heavy rainfall●Began a joint
study oncontrolling
GHG emissions
from soil andcarbon storage
with biochar
at Mariko
Vineyard●Continued
use of biogas
from anaerobic
wastewater
treatment●Began activities
as the Japan
representativeof the Alliance
to End Plastic
Waste●Increased use of
R100 PET bottles
made with 100%
recycled resin●Practicalapplications
for chemical
recycling●Introduced large-scale solar power generation facilities
at nine Kirin Brewery plants (through 2023, including
eight breweries and plants with PPA model purchasing),
Mercian Fujisawa Plant (2023), Kyowa Kirin Ube Plant(2023), Kyowa Hakko Bio Yamaguchi Production Center,and Lion Castlemaine Perkins (2019) Achieved 100%of procured electricity from renewable energy sources
at all Kirin Brewery plants and operating sites (2024),
Kyowa Kirin Takasaki Plant, Ube Plant, and researchlaboratories, all Lion plants in Australia and New
Zealand (2023), and all Château Mercian wineries(2022). Became the first global food and beveragecompany to obtain approval for an SBT Net-Zero (2022)●Launched the Kirin Supply Chain Environmental Program
to strengthen cooperation with major suppliers (2024)●Enhancementof productlineup●Supply ofmaterials
to partnercompanies●Raising
awareness ofheatstroke●Contribution to the
TNFD pilot program,including the worldleading LEAP trial
disclosure (2022) and
scenario analysis trial(2023)●Participation in thepilot test of Corporate
Engagement Programin SBTN for Nature(from 2021)

Activity●Reduction of
GHG emissions
from farmland
throughregenerative
agriculture andcarbon storage●Use of biogas

・ TNFD
TCFD●Procurement ofmaterials fromsustainable farms
and forestry andsupport for obtaining
certification●Prevention of soil runoff
with cover crops●Breeding varieties
suited to global
warming●Utilization of massplant propagation
technology

Environmental
Strategy

Progress

Business opportunity●Sharing flood knowledge●Equipment and facility measures against flooding●Sharing drought knowledge●Development and deployment of water usage
reduction technology●Conservation of water sources
Response strategy

25

Minimization of impact on natural capital (mitigation)
Containers andPackaging

Message fromTop Management

We have separately provided information concerning plans for transition to a decarbonized society,

Strategies and progress related to natural capital (AR3T-compliant disclosure)
Material agenda

ReduceRestore &Regenerate

Transform

Biological resources●Continue development of applications for water-bag type culture vessel technology●Achieved and maintained 100% FSC-certified paper in the Japan Non-alcoholic
Beverages Businesses●Achieved and maintained RSPO100% for operations in Japan (excluding palm kernel oil)

●Appropriate water conservation in accordance with the level of water stress●Introduction and continued operation of advanced water treatment using reverse
osmosis membranes at Lion, which faces a high level of water stress●Implementation of the training to support the acquisition of Rainforest Alliancecertification by tea farms in Sri Lanka, development and pilot testing of the scorecard●Continuing support for coffee farms in Vietnam to acquire Rainforest Alliance certification●Reducing food waste in the alcoholic and non-alcoholic beverages businesses in Japan●Conservation of water sources on tea farms in Sri Lanka and provision of education to
local residents●Continued water source conservation activities at production sites in Japan that began
in 1999●Restore ecosystems through the conversion of derelict farm land into hedgerow-stylevineyards●Conducted education on conserving wildlife, including the black panther, for young
people in areas around farms in Sri Lanka●As a participant in the Corporate Engagement Program of SBTs for Nature, we arecontributing to the development of a framework for scientific target setting related tonatural capital●World-leading disclosure using the LEAP approach, participation in joint scenario
analysis in response to request from the TNFD●Contribute to the expansion of the supply of FSC-certified paper by establishing a
consortium for sustainable paper use with other companies and NGOs
●Contribution, including establishing the Rainforest Alliance Consortium to raiseawareness of sustainable agriculture

Holistic Analysis of Risks
and Opportunities

Avoid

Water resources

Risk and Impact Management
Improving risk response capabilities

and transitional risks related to climate change detected in scenario analysis →P.14〜P.15 . Senior

For physical and transition risks such as climate change, which will have an extremely large impact on ourmanagement deploys mitigation and adaptation strategies and manages targets under the supervision ofbusinesses if they occur, even though the probability of occurrence is uncertain, we have adopted a new

the Board. The same applies to overall risks related to sustainability, including the degree of dependence

approach to identify and examine important risks by setting scenarios and using them to analyze andand impact on natural capital and the creation of a circular economy. In this section, we describe ourassess risks. In scenario analysis, we utilize various research papers, science-based risk assessment tools

monitoring system for important risks and our response to the acute risks posed by climate change.

such as Aqueduct, etc. We have already begun assessing the identification of dependencies, impacts,

Risk management systemat the level of senior executive officer or higher from Kirin Holdings. This committee oversees all aspectsof risk management activities, including the collection of information related to risk, the formulation ofGroup risk policies, risk mitigation initiatives, information sharing at times of crisis and consideration ofcountermeasures, and instructions and support for Group companies. Risks and opportunities related
to sustainability include environmental issues such as climate change, natural capital, and the circular
economy; social issues such as human rights, local communities, indigenous peoples, small-scale farmers,

value chains, on a trial basis, in accordance with the TNFD guidance, and we intend to incorporate it asa regular process in the coming years. The Group Environmental Meeting and the Group CSV Committee
share and discuss risks and opportunities identified through these processes, then they are not only
submitted and reported to the Board, but the Group Risk and Compliance Committee Secretariat also
receives reports on such risks, and manages them together with other risks. Additionally, we shareinternal examples of sustainability-related risks, such as responses to climate disasters, within the Groupin order to strengthen resilience across the Group as a whole.
Risk management systemmanagement system, “opportunities” are included in the management of “risks”).
The Board deliberates basic policies concerning important risks for the Group and risk management

KH The Board

developed by the Group Risk and Compliance Committee and receives quarterly reports on risk
monitoring. Both the Board and the Group Risk and Compliance Committee receive risk status reports
from the Secretariat on a monthly basis. Group companies use similar processes as those determined
26

Supervisionand direction

Kirin Holdings

by the Board of Kirin Holdings to conduct risk management, based on basic policies for important risks
Holdings monitors important risks for each Group company for each functional division.

Support and direction

Group companies

Supervisionand direction

which are physical and acute risks related to climate change, and which are becoming more frequent andBoard of Kirin Holdings receives reports on the status of crises expected to have a significant impact as
appropriate and issues necessary instructions. After a response to an individual crisis has been completed,
we review the risks involved and the progress of measures to respond, and share our experience within theGroup in the form of revisions to response manuals and BCPs, contributing to a sustained strengtheningof management resilience. For example, we utilized knowledge gained from dealing with the 2011 flood in
Queensland, Australia, to speed up the reopening of the brewery following the 2022 flood in that area.
We also leverage this knowledge to strengthen our plants and breweries’ ability to respond to floods that
occur every year in Japan. Furthermore, we leveraged our experience of torrential rain in western Japan in2018 to protect logistics functions during Typhoon Hagibis in the following year, 2019.
*4 An all-hazard BCP is a business continuity plan that focuses on countermeasures against the loss of management
resources, such as when employees and facilities are affected by disasters, and the suspension of head office
functions, rather than our approach to individual crisis events

Quarterly andsemiannual status report
Quarterly andsemiannual
status reportMonthly
status report

Risk Committee Secretariat*5 The risks described above include opportunities.

Committee discusses the matter, and countermeasures are promptly implemented. When we expect the
impact to be significant, we respond based on all-hazard mode*4 business continuity plans (BCPs). The

Risk Committee Secretariat

Impact measurement
The Kirin Group measures theimpact of important risks basedon their financial impact andprobability of occurrence. We
manage these risks in a unified
manner on a risk map, andthe Board monitors and takes
measures to address high-impact
risks.

Risk matrix
ImpactWe unify importantrisks for the Group on arisk map, and review
their importance andcountermeasures. The
Board of Directors also
monitors the mostimportant risks, which
are placed in quotation
marks.

Probability ofoccurrence

Holistic Analysis of Risks
and Opportunities

severe. When such climate disasters occur, the Group or the relevant company's Risk and Compliance

Reports

Risk Committee

The management of risks related to sustainability includes torrential rains, floods, droughts, and wildfires,

Monthly
status report

Reports and discussion

The Board/
Executive Committee

Management of risks related to sustainability

Monthly status report

Activityand risk management, including the aforementioned sustainability-related risks and opportunities. Kirin*1 Please see “Identification of Materiality” →P.8 for details concerning the identification of materiality for risks andopportunities related to environmental issues, including climate change.
*2 Details of our “risk management system” are disclosed below.
( https://www.kirinholdings.com/en/purpose/governance/risk_management/)*3 The Kirin Group revised the "Kirin Group Human Rights Policy" on November 8, 2023, in order to advance our humanrights initiatives toward global, high-level industry standards.
https://www.kirinholdings.com/en/impact/community/2_1/policies/

Reports

Group Risk andCompliance Committee

・ TNFD
TCFD

and gender; and the mutual relationships between such issues and regulatory responses (under our risk

risks, and opportunities related to natural capital, both directly and in the upstream and downstream

Environmental
Strategy

The Kirin Group has established the “Group Risk and Compliance Committee,” which consists of officers

Message fromTop Management

In the section on governance, we have described our measures to address significant physicalAs described, we have analyzed and assessed sustainability-related risks related to the interconnectedness

For natural capital, we have narrowed the scope of analysis by considering location, dependency, and theof climate change, natural capital, the circular economy, and social issues using scenario analysis and otherimpact on nature and our businesses. In the case of containers and packaging, we set the scope of analysis

methods. We have summarized significant risks and opportunities identified as a result in the table below.

after comprehensively taking into consideration resource recycling and related impacts on climate change

For physical risks, we have mainly analyzed risks related to major agricultural raw materials and waterand natural capital.

resources in relation to businesses ranging from food and beverages to pharmaceuticals, particularly the

In terms of business opportunities, we have analyzed areas such as health, which is a key area for value

alcoholic and non-alcoholic beverages businesses. For transitional risks, we have analyzed energy andcreation through our businesses, and an area where we think we can contribute to social issues caused byagricultural products, which account for a large share of procurement costs.

climate change.

Classification

Chronic
risksCategory

Main risk
Declining yields of agricultural
products and procurement costs
Changes in the state of nature

Containers andpackaging andnatural capital

Damage to natural capital by
improper disposal of used containers

・Negative impact on life in river basins and oceans
・Expenses associated with measures to address ocean
pollution (approximately 1.1 billion yen)●●

Climate change
and natural capital

Disruptions to operations owing
to floods

・Historical examples of actual flood damage (approximately 1.0 billion yen to 5.0 billion yen)・Exposure to 200-year disasters (total of 20 locations inJapan: approximately 1.0 billion yen)●●

Climate change
and natural capital

Impact on shipping & delivery
owing to floods

・Risk of flooding at shipping ports for raw materials●

Climate change
and natural capital

Disruptions to operations owing
to droughts

・Impact from decline in production owing to droughts(approximately 30 million yen to 600 million yen)

Climate change
and natural capital

Impact on agricultural products
owing to floods and droughts

Climate change
and natural capital

Technology●■

Countermeasures
・Utilization of brewing technology that does not depend on
barley・Utilization of mass plant propagation technology
・Support for the acquisition of certification by sustainable
farms
・Prevention of global warming by reducing GHG emissions■

・Increase in horizontal recycling of plastic
・3R and beautification awareness activities●■

・Sharing of knowledge concerning responses to flood and capital investment
・Appropriate insurance coverage

●

●

■

・Sharing of knowledge on responses to floods
・Diversification of suppliers

●

●

●

・High water stress in most production areas
・Increase in natural disasters in production areas

●

●

●

Impact of diseases and air pollution on agricultural products

・Declining quality of agricultural products due to smoke
and air pollution
・Spread of disease●●

Climate change

Carbon pricing and energy procurement costs

・Energy procurement costs (2°C scenario: approximately
9.4 billion yen in 2030, 4°C scenario: approximately 5.1
billion yen in 2030, 1.5°C scenario: approximately 10.2
billion yen in 2030.)

Climate change

Financial impact on the procurement of agricultural products
due to carbon pricing

・Procurement costs due to reduced agricultural yields (2°C scenario: approximately 0.9 billion yen to 4.4 billion
yen in 2050, 4°C scenario: approximately 2.4 billion yen
to 8.8 billion yen in 2050.)

Climate change

Impact on assets

・Difficulty in recovering investment in facilities and equipment due to legal restrictions, etc.
・Damage to facilities and equipment due to flooding, etc.

●

●

■

・Understand technological trends in facilities, equipment, etc.,
and reflect them in capital investment plans
・Understand risks related to water and reflect them in BCPs

Climate change

Cost of regulatory response

・Increase in human resources
・Increase in cost of response

●

●

■

・Development of infrastructure for the disclosure of information
・Enhancements to the sustainability of raw material productionareas・Nature Positive through businesses

Natural capital

Incompatibility with rapid agricultural policy transitions

・Chain collapse of agricultural infrastructure caused byextreme bans on agricultural chemicals and fertilizers
without preparation

●

●

●

■

・Support for training farmers in sustainable agriculture・Appropriate engagement with experts and policymakers

Climate change,
natural capital,
containers andpackaginResearch and development capabilities

・Possibility that research contributing to decarbonization
will not be put to practical use at the expected timing

●

●

●

■

・In-house packaging development technology
・Research and development on climate change and natural
capitalClimate change

Engineering capabilities

・Introduction of facilities and equipment at appropriate
times and prices

●

●

●

●

●

・Advanced technologies for water use reduction
・Sharing of knowledge concerning responses to droughts

■

■

■

●

●

■

・Responses to water stress in areas producing agricultural raw
materials
・Prevention of soil runoff at areas producing agricultural raw
materials
・Research measures from a long-term perspective■

・Profit and loss neutral reduction of GHG emissions in brewing
and manufacturing
・GHG emission reductions through logistics optimization■

・Utilization of mass plant propagation technology
・Support for the acquisition of certification by sustainable
farms

・Strengthen engineering functions
・Understand technological trends and flexibly introduce
technology, facilities, and equipment

Holistic Analysis of Risks
and Opportunities

Transitional
risks

●

Severity
S M L

Activity

PolicyImpactM L

・ TNFD
TCFD

Acute risks

S・Procurement costs due to reduced agricultural yields (2°C scenario: approximately 1.3 billion yen to 3.4 billion
yen in 2050, 4°C scenario: approximately 3.6 billion yen
to 13.7 billion yen)

Climate change
and natural capital

Physical risk

27

ImpactEnvironmental
Strategy

Risk/opportunity

Message fromTop Management

Significant Risks and Opportunities

Classification

Markets

Reputation

Systemic risk

Energysources

Resilience

Severity
S M LCountermeasures

Social resistance to fossil-derived raw materials

・Growing negative impression of PET bottles

●

●

■

・Plastic resource recycling

Climate change
and natural capital

Concerns surrounding thedestruction of forests

・Decrease in confidence in the amount of GHGs
absorbed and stored through forests, etc.

●

●

■

・Promotion of sustainable forestry and agriculture

Climate changeHigh energy prices

・Possibility that natural gas and oil prices do not fall

Climate change,
natural capital,
containers andpackaginOpportunity loss due to ethicalconsumption

・Decline in the assessment of our brand

●

●

●

■

・Appropriate communication to consumers

Climate change
and natural capital

Concerns about renewableenergy facilities

・Opposition to installation from regions where power
plants are constructed

●

●

●

■

・Introduction of renewable energy that does not have anegative impact on the environment or local communities

Climate change,
natural capital,
containers andpackagin

Loss of trust from long-term
investors

・Loss of trust due to lack of adequate disclosure・Increase in cost of capital

●

●

●

Natural capital

Responsibility for pollution of
the natural environment

・Compensation, fines, administrative dispositions, andloss of social trust

●

●

●

■

・Improvements to environmental management systems

Natural capital

Uncontrolled expansion of
conversion into crops for biofuel

・Reduction of agricultural land for food

●

●

●

■

・No use of inappropriate biofuels converted from farmland forfood

Natural capital

Ecosystem damage due to theabandonment of farmland・Decline in ecosystem services

●

●

●

■

・Engagement with agricultural production areas and provisionof training

Natural capital

Ecosystem collapse

・Loss of ecosystem resources on agricultural land due toyears of use of agricultural chemicals

●

●

●

■

・Ecosystem restoration activities focusing on hedgerow-stylecultivation

Climate change
and natural capital

Expansion of heat stroke due toglobal warming・Concerns related to increases in the number of
infections and regions affected
・ Northward movement of the habitat of the Aedes
albopictus

●

●

●

■

・Contribution in Health Science domain

Climate change

Increase in heatstroke caused by
global warming

・The National Institute for Environmental Studies expects
the number of excess deaths related to heat to increase
between 4 and 10 times under the 4℃ scenario

●

●

●

■

・Contribution with products to address heatstroke

Climate change

Products that contribute todecarbonization

・Possibility that products will be required that contributeto decarbonization or the shift to a low-carbon society

●

●

■

・Carbon-free products, etc.

Climate change

Loss of sustainability of logistics

・Decline in product supply capabilities

●

●

●

■

・Stable transport and reduction of GHG emissions throughmore efficient deliveries

Climate change

Reduction of container raw materials and stable procurement[climate change, containers andpackaging, short to long term]・Demands for the 3Rs and reduction in costs from themove to lightweight containers

●

●

●

■

・Container weight reduction and improvement of rate ofrecycled PET resin use

Climate change

Demand gap and spike in prices
of fossil fuels

・Increase in energy costs

●

●

●

Climate change

Stable procurement of renewable energy

・Increase in demand and tight supply and demand forrenewable energy

●

●

●

Climate change,
natural capital,
containers andpackagin

Strengthening the supply chain

・nsuring the stability of the procurement of agricultural
raw materials and reduction of Scope 3 GHG emissions

●

●

●

・Steady implementation of the roadmap for the “SBT 1.5°C”
target■■■・Appropriate disclosure in line with the TCFD and TNFD
frameworks

・Achievement of an optimal energy mix
・Use of renewable energy with a focus on additionality■

・Strengthen engagement with production areas and suppliers

Holistic Analysis of Risks
and Opportunities

Resource
efficiency

ImpactM L

Activity

Business
opportunity

S

Climate change,
containers andpackaginMarkets

Products
andservices

Impact・ TNFD
TCFD

28

Stabilityof foodand social
systems

Main risk

Environmental
Strategy

TransitionalrisksCategory

Message fromTop Management

Risk/opportunity

TargetProgress on medium-term GHG emissions reduction target approved by SBT（2023）（unit：tCO2e）■ Scope1+2

Total

Scope1+Scope2
Scope1

353,404

Scope2

212,148

2019
2019

Capital goods

211,7423

Fuel and energy-related emissions not included in Scopes 1 and 2

142,062

4Transportation and distribution (upstream)

415,350

5Waste generated in operations

28,8002,252,662

6

Business travel

5,684

7

Employee commuting

8,774

8

Leased assets (upstream)
Transportation and distribution (downstream)
Processing of sold products

11
Downstream 12

GHG emissions across the whole value chain
GHG emissions across the whole value chain(ktCO 2e)
8,000
(ktCO
2e)
7,431
8,000
7,431
7,000

246,338
0

7,000
6,000

Use of sold products

9,459

6,000
5,000

End-of-life treatment of sold products

55,095

5,000
4,000

Leased assets (downstream)

0

14

Franchises

015

Investments

0Reduction rate (compared to 2019 base year)

4,000
3,000
3,000
2,000
2,000
1,000

4,577
-47%
-38%
4,577 4,010-38% -46%4,010 3,942 -47%
3,942Target-46%
Target4,110
Net-Zero
4,211-43%
Net-Zero
4,211 -44%4,110
-44%
-43%

1,000
0

2019 2020 2021 2022 2023 2050 (Year)1990
01990 2019 2020 2021 2022 2023 2050 (Year)-10%(KB, KBC)

Returnable glass
bottles
(KB)

Total

Aluminum cans

22,477t

Glass bottles

696t

PET bottles

5,259tCardboard cartons for products

5,814t6-can packs

3,876t

3,000
3,000
2,000
2,000

96％

1,500
1,000

815
1,000

500
500
0

2019 2020 2021 2022 2023 2030 (Year)02019 2020 2021 2022 2023 2030 (Year)

100

-10%
-10%-30％

-30％
3,376
3,474
3,444
3,376 Target
2,633Target
3,474
3,444
3,309
2,633
3,309

Target50

2019 2020 2021 2022 2023 2030 (Year)02019 2020 2021 2022 2023 2030 (Year)

42

50

6

1,000
0

-31％

-31％
815
737 701-50％
666
737 701
566-50％
Target666
566 408 Target
408

100 （%）

5,000

3,762
4,000 3,762

Total emissions for Scope 1 and Scope 2
Total
emissions for Scope 1 and Scope 2
(ktCO
2e)

Ratio
（%） of renewable energy in plant purchased electric power

5,000(ktCO 2e)
4,000

Progress toward medium-term
towardmedium-term
GHGProgressemissions
reduction
targets
GHG emissions reduction targets

Progress toward the target for
Progress
the targetfor
increasedusetowardof renewableenergyuseof renewableenergy electric power
Ratioincreasedof renewableenergyin plant purchased

Scope 3 emissions
Scope
3 emissions
(ktCO
2e)

1,000

Collection rate

2050
2050

0

27
12
6

17
12

42

100 Target
100

27

17

2019
2040 (Year)0 2020 2021 2022 2023
2019 2020 2021 2022 2023
2040 (Year)

Holistic Analysis of Risks
and Opportunities

Reduction inresources

2030
2030

1,500
(ktCO 2e)

Impact for the Circular Economy（2023）■ Reduction in impact

2019
2019

Progress

0

13

2050
2050

Activity

9
10

2030
2030

*1 In December 2020, we upgraded our previous “SBT for 2°C” target, and received approval for our “SBT for 1.5°C” target.
*1 In December 2020, we upgraded our previous “SBT for 2°C” target, and received approval for our “SBT for 1.5°C” target.

・ TNFD
TCFD

29

Purchased goods and services

TargetNet-Zero
Net-ZeroTargetNet-Zero
Net-Zero

3,375,967
2TargetTarget

-31％

1

-30%
-30%

-50%
-50%

Total

Scope3

TargetTargetTargetTargetEnvironmental
Strategy■ Scope3

Upstream

Total emissions targets for Scope 1 and Scope 2*1
Scope 3 emissions target*1
Total emissions targets for Scope 1 and Scope 2*1
Scope 3 emissions target*1

565,552

Reduction rate (compared to 2019 base year)

Message fromTop Management

Metrics and Targets

Climate change

GHG emissions

Published under “Metrics and Targets” “Progress on medium-term GHG emissions reduction target approved by SBT” in this report

Total spatial footprint

For agricultural products subject to materiality analysis, the FAO indicates the following acreage per unit yield (ha/t/year).
●Black tea leaves: 0.177 ●Cardboard: 0.0186 ●Cartons: 0.0186 ●Palm oil: 0.0706●Coffee beans: 1.132●Soybeans: 0.3835●Barley: 0.3044●Hops: 0.6497●Wine grapes: 0.0898* The land use area for Japanese projects calculated using ESCHER in 2014 is 228,126 ha.

Scope of land use change

Rainforest: 42,592ha(Area of tea farms in Sri Lanka that have obtained Rainforest Alliance certification with the support of the Kirin
Group)
Temperate monsoon: 50ha (area of self-managed vineyards in Japan)

Land areas that have voluntarily conserved or restored ecosystems

42,592ha (Area of tea farms in Sri Lanka that have obtained Rainforest Alliance certification with the support of the Kirin Group)
Approximately 25ha (Area of micro watersheds on Sri Lanka tea farms conserved with the support of the Kirin Group. Internal size ofthe above certified farms)
Approximately 50ha (area of self-managed vineyards in Japan)

Land managed in a sustainable mannerLand managed in a sustainable manner 29ha (area of Mariko Vineyard certified as a SEPLS site)

C2.0

Total amount of pollutants released into soil by typeNo release of pollutants into soil at plants/breweries.
Vineyards for Japan Wine and Sri Lankan tea farms (suppliers) use agricultural chemicals listed on white lists within standards.

C2.1

Wastewater drainage

Published under "Water Resources," "Trend in wastewater volume by destination (entire Group)," and "Reduction of Waste andPrevention of Pollution,” "Wastewater quality (entire Group)" in the “ESG Databook.”

Waste generation and treatment

Waste: Published under "Reduction of Waste and Prevention of Pollution,” "Volume of waste generated (entire Group)" in the “ESG
Databook.”
Reduction rate of product waste loss: Published under “Food Waste Reduction and Recycling” in this report.

C2.3

Plastic pollution

5,259t (We have determined that most of our plastic usage is PET resin for bottles, and we have disclosed the amount of PET bottles
used)

C2.4

Total air pollutants other than greenhouse gases

Published under “Trend in emissions of air pollutants,” “Trends in emissions of NOx and SOx (entire Group)” and “Trends in emissionsof VOCs (Japan, Kyowa Kirin Group and Kyowa Hakko Bio Group)” in the “ESG Databook.”

Water intake and consumption from water-scarce regions

Published under "Water Resources," "Trend in water use volumes (by region)" in the “ESG Databook.”

Amount of high-risk natural primary products procured from land

Published under "Biological Resources," "Usage of palm oil in primary and secondary raw materials" in the “ESG Databook.”

Braceholder indicator (measures against invasive species)

We have not performed calculations because it is a breakholder indicator and detailed criteria are unclear

Breakholder indicator (status of the ecosystem)

We have not performed calculations because it is a breakholder indicator and detailed criteria are unclear

Breakholder indicator (species extinction risk)

We have not performed calculations because it is a breakholder indicator and detailed criteria are unclear

C7.0

Assets, liabilities, revenues, and extraordinary amounts assessed asvulnerable to nature-related transition risks●1.5℃ scenario: Approx. 10.2 billion yen (2030)●2℃ scenario: 9.4 billion yen (2030) ●4℃ scenario: 5.1 billion yen (2030)(Financial impact on agricultural products due to carbon pricing)

C7.1

Assets, liabilities, revenues, and extraordinary amounts assessed asvulnerable to nature-related physical risks●2℃ scenario: 1.3 billion yen to 3.4 billion yen (2050)●4℃ scenario: 3.6 billion yen to 13.7 billion yen (2050)(Financial impact of reduced agricultural yields due to climate change)

Fines incurred during the fiscal year due to negative impacts related tonature.Fines, details and amounts of lawsuits filed

None

C7.3

Amount of capital expenditures or investments targeting nature-related
opportunities, by type of opportunity, with reference to the green
investment taxonomies of governments or regulatory authorities, where
relevant, or third-party industry or NGO taxonomies

Approx. 150 million yen (expenditure on support for the acquisition of certification for tea farms in Sri Lanka, ecological surveys inJapan Wine vineyards, etc.)

C7.4

Growth and percentage of revenue from products and services that havea viable positive impact on nature, and explanation of those impacts

We expect that this would cover products such as Kirin Gogo-no-Kocha made with tea leaves from certified farms and Japan Winemade with grapes grown in hedgerow-style vineyards that contribute to Nature Positive, but we have not estimated the financial
impact.

C1.0

Change in land/
freshwater/ocean
use
C1.1

C2.2

30

C3.0
C3.1
C4.0
C5.0

Contamination/
decontamination

Resource use/
resource
replenishment

Status of nature

C7.2
Risk

Holistic Analysis of Risks
and Opportunities－

Activity

Details of the measurement index

・ TNFD
TCFD

Indicator

Environmental
Strategy

Key factors ofchanges in nature

Message fromTop Management

Measurement
index numberMessage fromTop Management

External Evaluation
The Kirin Group conducts transparent information disclosure to its investors and other stakeholders.
As such, we have been selected for and rated by the following global indices.

CDP “water security”
category “A-List” (eight
consecutive years)* Declined in FY2021 due to receiving the award for two
consecutive years

CDP Supplier Engagement
Rating “Leader Board“ (sixconsecutive years)
31

Development of Lightweight
PET Bottle “the 46th
Kinoshita Prize for packaging
technology”

Selected for the following indicesFuji-Sankei Group Awardin the 26th Global
Environment Awards

Kirin School Challenge won the
Encouragement Award in the
Career Education Awards

Kirin School Challenge won theJudges Committee EncourageAward at the FY2017 Corporate
Awards for Youth Experience
Activities

Judge’s Special Award in the
6th Ikimono Nigiwai Corporate
Initiatives Contest

Yokohama Plant won the Green
Cities Awards and Green Social
Contribution Award

Minister of Land, Infrastructure,
Transport and Tourism Award
under the Excellent Green
Logistics Commendation Program

Logistics Environmental Grand
Prize at the 18th Logistics
Environmental Award

Ranked No. 1 in WWF Japan’s“Ranking for Corporate Measures
Against Global Warming in the
Food Sector”

King of Beasts Award in WWF
Japan’s “Business & Diversity
Katte-ni Award”

Holistic Analysis of Risks
and Opportunities*1 The picture of the product is the one that was available at the time of the award.

The middle-sized bottle
also received WorldStar
Packaging Awards

Activity

The “Kirin Group
Environmental Report 2020”
won the “Climate Change
Reporting Grand Prize(Minister of the Environment
Award)” in the 24th
Environmental Communication
Award

Kirin Namacha Decaffeinated
Tea Drink won WorldStar
Packaging Awards

・ TNFD
TCFD“SDGs Strategy
and Economic
Value Award” atthe Fourth Nikkei
SDGs Management
Grand Prix(four consecutive
years)New Thin Film Deposition
Technology for PET bottles
WorldStar Award andKinoshita Prize

Environmental
Strategy“Gold Award” in the“Environmentally
Sustainable Company
Category” for the first two
years, and “Special Award”
the fourth year

Biological Resources→ P.33〜P.42

A society that values sustainable biological resources

32

ctivity

Water Resources→ P.43〜P.48

A society that values sustainable water resources

Containers and Packaging→ P.49〜P.56

A society that circulates containers and packaging in a sustainable way

Climate Change
A society that has overcome climate change→ P.57〜P.67

Biological Resources

Developed the Kirin Group Declaration of Support for Biodiversity Conservation

����Conducted materiality analysis of biological resources����

Background
Based on our understanding of the characteristics of natural capital, we haveanalyzed and evaluated risks and opportunities by using scientiﬁc tools to advancesolutions to biological resource challenges. Agricultural raw materials often bringunique characteristics of the areas that produce them to be reﬂected in products.
Therefore, we need both a local perspective of "dependence" on the crops
produced by a particular "place" and a global perspective that climate change hasa signiﬁcant impact on the yield and quality of agricultural commodities.
In addition to scenario analysis based on the TCFD recommendations, we use theprocesses advocated by TNFD Framework. We will also develop a holistic
approach to solving issues that takes trade-oﬀs between climate change andnatural capital into account.
33

����

We will create together

A society that values sustainable biological resources
Cultivate, expand, and procuresustainable agricultural raw materials

Work closely with farms to makeraw material production
areas sustainable

Production
regions

P.35
P.37
P.39
P.39
P.39
P.41

Tea farms
Vineyard
Coﬀee farms
Hop ﬁelds
Mass plant propagation technology
Support for the restoration of nature（Educational program for wildlife conservation in Sri Lanka）

Manu
facturing

P.39
P.40
P.41

Palm oil
Paper and Printed Materials
Support for the restoration of nature（Biotopes at manufacturing plants）

Products

P.40

Food Waste Reduction and Recycling

����
����
����
����
����
����

����

Developed the Kirin Group Guidelines for the Use of Sustainable Biological Resources and the Kirin Group
Guidelines for the Procurement of Sustainable Biological Resources, and selected “tea leaves,” “paper andprinted materials,” and “palm oil” as themes
Started supporting Sri Lankan tea plantations (large farms) to obtain Rainforest Alliance certiﬁcation
Began an ecological survey at Tono hop ﬁelds and Mariko Vineyard

Revised the Kirin Group Guidelines for the Procurement of Sustainable Biological Resources and declared
100% usage of FSC-certiﬁed paper or recycled paper in Japanese alcohol and non-alcoholic beverages
businesses by the end of 2020.
Started supporting Sri Lankan small tea farms to acquire Rainforest Alliance certiﬁcation

Expanded support for coﬀee farms in Vietnam to acquire Rainforest Alliance Certiﬁcation.
Achieved 100% use of FSC-certiﬁed or recycled paper for paper and printed materials
in the non-alcoholic beverages business in Japan.
Participated in the Corporate Engagement Program of the Science Based Targets Network.
Revised the Kirin Group Action Plan for the Sustainable Use of Biological Resources to add coﬀee beans
and soybeans as themes.
Participated in the TNFD Forum.
Trial disclosure based on the LEAP approach proposed in the TNFD Framework Beta v0.1
Participated in a demonstration program aimed at the registration of OECMs under the 30by30
international target

Developed the “Regenerative Tea Scorecard” together with the Rainforest
Alliance as a tool to promote regenerative agriculture at tea farms in Sri Lanka

Main Activities
TargetTargets related to support for the acquisition ofcertiﬁcation by tea farms in Sri Lanka(CSV commitment: 2022 to 2024, cumulative)● Provided training to support acquisition of Rainforest Alliance certiﬁcation for large farms
in Sri Lanka (4 farms: cumulative total from 2022 to 2024).

Actual results

Actual results

4 farms
27%

Actual results

629 farms
12%

34

Sustainable raw material ratio

KBC

約100%
100%

Primary raw materials(excluding palm kernel oil)

ME

-90%

Oﬃce paper
FSC-certiﬁed paperor recycled paper

Palm oilSoybeans

Other fruit juices

Black tea leaves

Hops

2022 (compared with 2015)
Reduction target : -75%
(by 2025, compared with 2015)

ActionPlan

Coffee beans

BarleyGrapesRisk Incidence Rate
Prepared in 2012 and scheduled for revision in 2021
FSC®C137754

Holistic Analysis of Risks
and Opportunities

Rate of reduction●Trial disclosure based on the LEAP approach proposed in the TNFD Framework Beta v0.1
(2022), and conducted scenario analysis together with the TNFD (2023).

Paper

KBC

● Château Mercian Mariko Vineyard has been selected as an approved Nationally Certiﬁed
Sustainably Managed Natural Sites contributing to the 30by30 target by the Ministry of
the Environment (2023).

Magnitude of Risk

KB

約100%
100%

● Maintained the use of FSC-certiﬁed paper or recycled paper for 100% of oﬃce paper
used in Japanese Alcohol and Non-alcoholic Beverages Businesses (since 2020).

Materiality Analysis of Biological Resources

ME

Approx.

● Expanded our support for the acquisition of Rainforest Alliance certiﬁcation to coﬀee
farms in Vietnam. 350 farms completed the transition to new certiﬁcation standards and309 farms had newly acquired certiﬁcation as of the end of 2022.

Biological
Resources

Ratio of Book & ClaimRSPO certiﬁcation

Approx.

Food waste

KB

Target：5,350 farmers
Actual results：629 farms(cumulative total from2022 to 2024)● Over 200 youth have participated in educational programs for wildlife conservation in Sri
Lanka (2021).

Activity

Target：15 farms
Actual results：4 farms(cumulative total from2022 to 2024)

Number of small farms
assisted to obtaincertiﬁcation(Number of farms thatreceived training)● Developed the Regenerative Tea Scorecard as a tool to promote environmentally
regenerative agriculture in Sri Lankan tea farms with the Rainforest Alliance (from 2023).

・ TNFD
TCFD

Number of large farms
assisted to obtaincertiﬁcation(Number of farms thatreceived training)

KBC●Started sales of year-round products that use tea leaves from certiﬁed farms (since 2021).

Environmental
Strategy

Number of large farms assisted to obtain certiﬁcation: 15
Number of small farmers assisted to obtain certiﬁcation: 5,350

Support for obtaining certiﬁcation by tea farms in Sri Lanka●Revised the Kirin Group Action Plan for the Sustainable Use of Biological Resources to add
coﬀee and soybeans to the existing black tea, paper, and palm oil in September 2021.

Message fromTop Management

Targets and ProgressSince 2013, The Kirin Group has supported Sri Lankan tea farms

In Sri Lanka, droughts and frequent heavy rains caused byto acquire Rainforest Alliance certification. As of end of 2023, 94

climate change have become serious problems. Urbanization,

large tea farms in Sri Lanka, approximately 30% of all certified large

industrialization, soil erosion and outflow as a result of thetea farms, acquired the certification by our support. In August

inappropriate use of land are also major concerns. Because large

2021, we began sales of year-round products that use tea leaves

tea plantations are often located on steep, sunny slopes, heavy

from certified tea farms.

rains not only wash away the fertile soil, but in the past have

Kirin Gogo-no-Kocha is Japan's leading packaged black tea brandcaused landslides that have killed people living on the plantations.

with a share of approximately 50% of the Japanese market. Since

Covering the ground with grass (cover crop) not only enriches thethe launch of the brand, we have used Sri Lankan tea leaves as

ecosystem but also is an effective adaptation measure to climate

the main ingredient. As of 2023, approximately 20% of the Srichange, such as preventing soil runoff from directly hitting theLankan tea leaves imported by Japan were used for Kirin Gogo-no-

ground during heavy rains and retaining water during droughts.

Kocha. We considered purchasing tea leaves from certified farms

The training teaches how to identify grasses that have a negative

to ensure sustainable procurement, but found that at the time, Sriimpact on tea cultivation and ensures that the ground in the tea

Lanka was just after the end of the civil war and there were only aplantation is covered with good, deep-rooted grasses.

limited number of farms that were able to access training on their

Training also teaches scientific methods to increase yields whileown. Therefore, we decided to create a positive impact on the

reducing the use of pesticides and fertilizers. In addition tosustainability of tea farmers by providing certification assistance

protecting the forests, the reduced expenditure on pesticides andto as many Sri Lankan tea farms as possible, rather than leaving

fertilizers improve the plantation's profitability and increase thebehind those farms that have difficulty obtaining certification on

safety of the tea leaves.

Cover crops (slope on right side)

Chemical substance storage unit

Training

Room for changing into protective
clothing for spraying pesticides

Activity

Training content

their own.
Share of tea leaves imported into Japan by area of production

20 20

3
oportionof imports
Proportionof imports
Approximately%*
on of imports
Approximately%*Approximately
oducedin Sri Lanka
produced in Sri Lanka
edin Sri Lanka*4

40 40%

Approx.*4
rox.
%

3

20%*

3

tea leavesof tea leavesofApprox.
teaofleaves*%4
produced
Sri Lanka
produced in Sri Lanka
produced in Sriin
Lanka

40

Percentage of certified large farms in Sri Lanka as a whole thathave received support from the Kirin Group

Supporting growers to obtain Rainforest Alliance Certification

Group
Kirin Kirin
Group

Kirin Group

Training
Training
fundsfunds

Tea Farms
Tea Farms

Rainforest
Rainforest

Alliance
Training
funds
Alliance

Rainforest
Sorting boxes utilizing
Alliance
unnecessary drums

Tea Farms

High-quality Sustainable
Training
High-quality
Farming
Sustainable
FarmingHigh-quality
Training
Sustainable
Farming
materials
materials
materials

Training

Kirin Gogo-no-Kocha Straight Tea using tea leaves
from certiﬁed farms 250ml LL Slim

Approx. 30% since(Cumulative
total
theofstart
oftotalsupportinthe
2013)
30 30%(Cumulative(Cumulative
start of support in 2013)
total since
the start
supportinsince2013)

Approx.
rox.
%

Sign indicating that child labor is
prohibited*1 Certification is awarded to farms that meet comprehensive standards forsustainable agriculture to create a better future for people and nature.
https://www.rainforest-alliance.org*2 Intege SRI+ Tea drink market 2023 Cumulative sales value/value share*3 Kirin research*4 Customs clearance statistics, Ministry of Finance Japan*5 One farm gave up the continuation of its certification in 2023

Holistic Analysis of Risks
and Opportunities

Soil runoff prevention fence

Numberof farms
thatNumber
acquiredofcertification
farms that acquired certificationof farms
that acquired
certificationof 2022 Number Endof 2022d ofEnd2022
withtheGroup’s
Kirin Group’s
support:94*5 Group’s support: 94*5
5 Kirinwith
thewith theKirin
support:94*

Panel showing wild animals to beprotected

Biological
Resources

Used
for Kirin
Gogo-no-Kocha
Used
for Kirin Gogo-no-Kocha
Used
for Kirin
Gogo-no-Kocha

・ TNFD
TCFD

Support for acquisition of Rainforest Alliance Certification

Environmental
Strategy

35

Message fromTop Management

Tea farms

Tea farms

For small farms to obtain certification, the training program organizes
teams consist of small farms and appoint leaders for the teams.

Based on data from a specific farm, our support for certification
provides positive impacts, both financially and socially, on some
farms and farm workers, and makes areas where raw materials are

smallholders to learn the certification standards. This program often
takes time to start actual training since it is necessary to begin bySocial impact of supporting the acquisition ofRainforest Alliance Certification

farms to acquire certification is more difficult than that for large farms.

Profitability

organizing the small farms into teams. Thus, the process for small

As profit per kilogram increases, workers’ salaries also increase

Development of Regenerative Tea Scorecard

（%）
���

In October 2023, the Kirin Group began working with the Rainforest

��

���

to below as the scorecard),” in order to contribute to the expansion

��

��

���
��
��
�

2013

2014

2015

Profit per kg (left axis)

2016

2017

2018

2019

2020

�

in local farms in 2024. Based on the Rainforest Alliance's definition ofregenerative agriculture, the scorecard offers a way to promote soil

the scorecard to identify areas for improvement in the transition to

Activity

regenerative agriculture, assess the current situation, and clarify areas
for improvement to transition. Through this initiative, the Kirin Group

5,000

aims to support the practice of regenerative agriculture at tea farms

4,000

and improve the sustainability of raw material production areas.

3,000
1,000
2013

Total population

2014

2015

2016

2017

2018

Persistent fever and other diseases

Created by Kirin based on Rainforest Alliance data

Support for small farms to obtain certification
In 2018, we began supporting small farms to acquire certificationand provided training to 620 small farms by the end of 2023. From
5,350 farmers.
In Sri Lanka, there are said to be many small family-operated farms,
with the total number in the hundreds of thousands. Tea leaves

Tealeaves

Small
farm
Small
farm
Small
farm
Small
farm

from small farms are collected by nationally licensed collectors
and are then sold to nearby large farms where they are processedand shipped to various regions. Tea leaves from small farms cansometimes account for as much as half or more of the tea leaves
processed in the large farms’ plants. We thus determined theacquisition of certification at small tea farms is also necessary for the

Actual results

629 farms
12%

Plant

The
large farm

Small
farm
Tea
leaves

Small
farm
Small
farm

Small
farm
Small
farm

Number of small farms
assisted to obtain certification(Number of farms that received training)
Target:5,350 farmers
Actual results:629 farms(cumulative total from 2022 to 2024)

Trainer Mr. Giri and farm managers (top left, top right) and the master of a small
farm (bottom right), as well as a tea farm (bottom left)

Holistic Analysis of Risks
and Opportunities

2022 to 2024, we plan to provide training to a cumulative total of*1 Regenerative agriculture is a method of sustainable agriculture which goesbeyond simply reducing harm from agricultural activity, and aims to repair
and restore farmland through soil preparation and other means, while
taking advantage of the material recycling function of nature and taking into
consideration harmony with productivity.

Biological
Resources

2,000
0

in selected tea farms in Sri Lanka, with pilot testing to be conducted

and improved livelihoods for people on farms. Tea farms can use

increasing slightly, the number of cases of disease
have decreased significantly

6,000

of regenerative agriculture. The development of the scorecard began

health, biodiversity conservation on farms, ecosystem restoration,

Workers’ salaries (right axis)

Sanitary conditions While the total population of the farm isFarm A

Alliance on the development of “Regenerative Tea Scorecard (referred

In 2007, the year following the 20-year anniversary of Kirin Gogono-Kocha, we launched the Kirin Sri Lanka Friendship Project tofurther strengthen ties with Sri Lankan tea farms and continue toensure stable production of tea leaves.
In Sri Lanka, tea is mostly grown in mountainous areas. Schools
in those areas usually do not have substantial libraries. The Kirin
Group donates quality books to elementary schools for thechildren of tea farm workers and continues to help the children
to improve their academic abilities and envision their dreams forthe future. We have donated to 242 schools and plan to continue
to increase the number of schools to which we donate.

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TCFD

（%）
���

Book donations to elementary schools in Sri Lanka

Environmental
Strategy

produced more sustainable.

Farm A

36

Local trainers train an elected leader, who will then train the team's

Message fromTop Management

sustainability of black tea leaves.

Social and economic impact of certification

where fields function as high-quality, vast grasslands, enabling the

Mariko Vineyard

development of native and rare species, without being dominatedby highly fertile plants.
Mariko Vinyard will be positioned as an “Other Effective area-based
Conservation Measure (OECM),” which is eligible for the global

Researchers from the National Agriculture and Food Researchconservation areas by 2030” (30 by 30). Grasslands are said to have

Organization (NARO) have confirmed the existence of 168 species

covered 30% of Japan’s national land area 130 years ago, but theyof insects and 289 species of plants at Château Mercian Mariko

have dwindled to just 1% today. The ratio of endangered plants per

Vineyard, on the Jinba Plateau in the Maruko district of Ueda City,

unit area is extremely high for grasslands (see chart below), andChâteau Mercian Mariko Vineyard

target adopted at COP 15 to “make at least 30% of land and sea

Nagano Prefecture. We have been conducting ecological surveys

they play an important role in conserving biodiversity.

since 2014, and the species that we have confirmed include

Château Mercian Mariko Vineyard was selected as Nationallyendangered species listed in the Red Data Book of the Ministry of

Certified Sustainably Managed Natural Sites by Ministry of thethe Environment Japan. Many rare species, including endangered

Environment Japan in October 2023. It was the only site to receive
approval as a certified business site growing agricultural raw
materials at that time. In the future, we expect the Ministry of the

In addition to contributing to the expansion of our business, theEnvironment to register it as an OECMs in an international databaseconversion of derelict farmland into hedgerow-style vineyards forand for us to be able to contribute to achieving the global target set

Japan Wine also creates valuable grasslands and contributes toforth at COP 15. We also plan to apply for other Château Mercian

the expansion and protection of Japan’s traditional rural Satochi-

vineyards to be approved as Nationally Certified Sustainably

Satoyama landscapes. There is a so-called “secondary nature” thatManaged Natural Sites in order.

is protected because of human efforts to preserve it. Grassland is atypical example of such nature.
37

In Japan Wine vineyards, wefor vertical shoot cultivation.
Regular undergrowth cutting

Insects

Plantsspecies

species168

289

creates an environment

1400
1200
1000
800
600
400
200
0

1.4
1.2
1
0.8
0.6
0.4
0.2
0

Grassland area
in Japan has
declinedmarkedly sincethe 1980s

Leonurus japonicus
Near threatened species on
the Nagano Red List

Jyonohira Vineyard

Seashore

Grasslands

Wetlands

Agricultural
Areas

Compiled from forest area statistics andMinistry of Agriculture, Forestry and
Fisheries statistics.

Forests

1890 1900 1920 1940 1960 1980 2000

Grasslands havethe highest rateof endangered species

Critically endangered II(VU) on the Red List of the
Ministry of the Environment
and near threatened on the
Nagano Red List

Western Japan Grassland Association
analysis and calculation in 2007

Papers by NARO related to vineyard ecosystem research are as follows.
●Butterfly diversity in a vineyard developed from abandoned orchards

Vincetoxicum pycnostelma
Near threatened specieson the Ministry of theEnvironment and Nagano
Prefecture Red List

Tengusawa Vineyard

Platycodon grandiflorus

Cephalanthera erecta

Argyronome laodice japonica

Vulnerable species on the
Ministry of the Environment's
Red List and near threatenedon the Yamanashi Red List (NT)

Vulnerable species
both the Ministry of theEnvironment's Red List andthe Yamanashi Red List (VU)

Critically endangered II (VU)
on the Red List of the Ministryof the Environment and nearthreatened on the Yamanashi
Red List

Biological
Resources

Number of endangered
species by unit area

Critically endangered II on the
Red List of the Ministry of theEnvironment. Near threatened
species on the Nagano Red List

Argyronome laodice japonica

Activity

regularly cut the undergrowth

Trends in grasslandarea in Japan

Hemerocallis citrina var.
vespertina

Sophora flavescens
The only edible grass forfeeding Shijimiaeoides divinus ,a butterfly that the Red List of
the Ministry of the Environment
lists as critically endangered IA(designated as endangered IB
by Nagano Prefecture)

・ TNFD
TCFD

species, have also been found in Jyonohira Vineyard in Katsunumacho, Koshu City, Yamanashi Prefecture.

Zygaena niphona niphona
Near threatened specieson the Ministry of theEnvironment and Nagano
Prefecture Red List

Environmental
Strategy

Nature Positive at Japan Wine vineyards

Message fromTop Management

Vineyard

Koichi TANAKA, Yoshinobu Kusumoto (2022) Butterfly diversity in avineyard developed from abandoned orchards. Nodai Entomology 3: 1-7.
nodaient_contents/contents/3/3-1.pdf

Rare spider found in Mariko Vineyard●Vineyard bird diversity

Naoki KATAYAMA, Hiroshi UCHIDA, Yoshinobu KUSUMOTO, Tomohiko

IIDA(2022) Bird use of fruit orchards and vineyards in Japan: Mitigating aknowledge gap with a systematic review of published and grey literature,
ORNITHOLOGICAL SCIENCE, 21(1), 93-114
https://www.jstage.jst.go.jp/article/osj/21/1/21_93/_article/-char/ja/●Recording of rare spiders at Mariko Vineyard

Yuki G. BABA (2022) Fourth record of the ground spider Phaeocedus

Château Mercian Mariko Winery

Careful mowing at Jyonohira Vineyard

braccatus (L. Koch, 1866) (Araneae: Gnaphosidae) from Japan
https://media.niche-life.com/series/009/Niche009_26.pdf

Phaeocedus braccatus(Gnaphosidae)

Calommata signata(Atypidae)

The fourth specimen of thisNear threatened (NT) on theextremely rare species to be

Red List of the Ministry of thefound in Japan

Environment and endangered I(CR+EN) on the Nagano Red List

We have also conductedecological research on spiders
in the vineyard, which is thefirst research on spiders in avineyard in Japan. As a resultof these surveys, we haveconfirmed the existence of rare
species of spiders, including
a species found for the firsttime in Nagano Prefecture,endangered species listed
in the Red Data Book of the
Ministry of the Environment,
and the fourth specimen of arare spider found in Japan.

Holistic Analysis of Risks
and Opportunities

https://www.nodai.ac.jp/agri/original/konken/shigen/publication/

Château Mercian Mariko VineyardVineyard

emissions, and approximately 25% of the Kirin Group's Scope 3

surveys, we confirmed increases of of species as: 88 (2020),

emissions come from agricultural raw materials. Accordingly, we103(2021), and 108(2022). Such signs indicate that the area iswill accurately measure and understand GHG emissions from

Our joint research of ecosystem changes with NARO at Tengusawa

becoming a high-quality grassland. In insect surveys, we foundvineyards and evaluate the carbon storage effect of biochar

Vineyard in Koshu City, Yamanashi Prefecture, is said to be rare

Argyronome laodice japonica, a vulnerable species listed in theutilizing pruning debris from vineyards. In addition, we will assesscase even on a global basis. The research has surveyed change of

Ministry of the Environment and Yamanashi Prefecture’s Red Datathe potential of regenerative agriculture as a measure to mitigate

ecosystems while we convert derelict farmland into a hedgerow-Books in 2021. The number of observable species also increased:climate change, and consider its expansion to other agricultural

style vineyard.

16(2020), 28(2021), and 30(2022).

raw materials.

Château Mercian Tengusawa Vineyard

At Mariko Vineyard and Jyonohira Vineyard, we began our surveys
after vineyards were already well-maintained. On the other hand,at Tengusawa Vineyard, we have been able to make observations
based on the condition of derelict farmland before development.

In March 2024, the Kirin Group, in a joint research project withof derelict farmland into vineyards enriches ecosystems.

NARO, began working to upgrade the biodiversity assessment of

In a survey in 2016, prior tovineyards at Mariko Vineyard and assess the carbon storage effect,

insect and plant species were
extremely lacking in diversity,

Evolution of the Tengusawa
Vineyard ecosystem
number of species

which is a measure to mitigate climate change. When upgrading
the biodiversity assessment, we will analyze and evaluate thecontribution of the rich ecosystem at Mariko Vineyard to the Jinba

PlantsPlateau and surrounding ecosystems and explore the possibility ofeating the vegetation. Since

2016

14

36

contributing to the restoration and maintenance of ecosystems inthe vineyard was cultivated in

2018

13

43

the area where the vineyard is located. We will also examine the2017 and subsequently fenced

2019

18

78

possibilities for ways that hedgerow-style vineyards can contribute

2020

19

88

2021

28

103

2022

30

108

off, we have seen a processof ecological enrichment as
the deer-eating damage has
decreased and the landscapeto the stable cultivation of high-quality grapes.
As a measure to address climate change, we plan to accumulateknowledge about regenerative agriculture*1. Greenhouse gas (GHG)
emissions from agriculture account for about one quarter of global*1 Regenerative agriculture refers to sustainable agriculture that reduces
environmental impact from the use of chemical fertilizers and agriculturalchemicals through soil preparation and other means, while taking advantageof the material recycling function of agriculture and working to achieve
harmony with productivity.
*2 Pruning debris refers to branches, etc., that are cut off when pruning
grapevines.
*3 Biochar is a solid material produced by heating biomass (biologicalmaterial) at a temperature of 350°C or higher under oxygen concentrations
controlled at non-combustion levels. In addition to its carbon storage effecton soil, biochar also improves soil water permeability and is used as a soil
improvement material.

Biological
Resources

Butterflies

Activity

as a result of damage from deerYear ofstudy

・ TNFD
TCFD

Through these surveys, we are able to confirm that the development

the development of this land,

38

Joint research on upgrading biodiversity assessmentin fields and assessing the carbon storage effectEnvironmental
Strategy

has been transformed into a vineyard-like landscape. In vegetation

Message fromTop Management

Studies into the process of convertingderelict farmland into vineyards

The process of converting idle and devastated land into vineyards in Tengusawa Vineyard

Holistic Analysis of Risks
and Opportunities

2016

2017

2018

2019

2020

2021

2022

Hop fields

Mass plant
propagation technology

We have been conducting an ongoing living species survey in theto acquire Rainforest Alliance Certification. We are expanding our

hop fields of contracted farmers in Tono City since 2014. In 2015,

activities from tea farms in Sri Lanka to coffee farms in Vietnam,

we confirmed the existence of 104 species of insects and 19

Kirin’s mass plant propagation technology consists of four underlying

leveraging our experience of the support. By the end of 2022, 350

species of birds.

technologies: stem propagation technique (organ culture method),

farmers of Robusta were certified and 309 farmers of Arabica have

Hop fields are plowed every year, so the fields themselves do not

sprout propagation technique (PPR method), embryo propagation

completed the transition to Rainforest Alliance certification. In thehave the function of enriching the vegetation, but the fact thattechnique (somatic embryo method), and potato propagation

past, Arabica coffee farmers were certified by UTZ.

windbreaks were created and maintained for hop cultivation andtechnique (micro tuber method). This original technology is globally

Due to the global spread of COVID-19, it was difficult to visit the sitesthat hop fields continue to function as one of the rich ecologicalunprecedented.

since the spring of 2020, immediately after the start of the support.

systems in Satochi-Satoyama can be said to have contributed to

Plant propagation is normally performed using seeds and cutting.

In October 2022, we visited small farms receiving support in Da

the richness of the vegetation.

These methods result in a limited cultivation period, and the

Lat City, the Lam Dong Province, located in central south Vietnam.
Through our visit, we found that the farmers lacked agricultural
the government encouraged them to become coffee growers.
We were also able to confirm that certification training contributes togrowth rate can be low depending on the plant. However, Kirin’s
mass propagation technology that we developed through our own

Insects

Birds

species

species104

research makes it possible to significantly increase the number of19quality plants with the same characteristics as the parent plant,
regardless of the season.

a certain degree to the sustainability of coffee farms.
From 2024, we will move the field of our action to Gia Lai Province,
Vietnam, where we plan to support 1,400 Robusta producers to39

obtain certification over three years. In these activities, we will focus
and water source conservation activities. Specifically, we will train

Palm oilby contributing to prevention of soil erosion and the maintenanceof groundwater levels through measures such as shade cultivation,
provision of seedlings for wind breaking forests, and the practice ofcover cropping.

The Kirin Group uses palm oil in someof its products, but the quantity is very

Ratio of Book & ClaimRSPO certification

the Book & Claim method approved by theRoundtable on Sustainable Palm Oil (RSPO)

promoting the spread of new varieties that have been developed in
response to environmental changes. For example, it will be usefulfor the mass propagation of new varieties, endangered species,

small. As a result, it is difficult to procure
physically certified oil, so we have adopted

raw materials. Mass plant propagation technology may be useful forand useful plants, and we thus expect it to positively impact the100%

sustainability of agriculture.

Biological
Resources

reduce expenses for farmers. We also aim to improve productivity

that we have conducted since 2018 show that climate change hassignificant impacts on yields of many agricultural products used as

farmers to produce biofertilizers themselves, utilizing coffee husks
and agricultural waste to reduce chemical fertilizers and thereby

Kirin’s scenario analyses based on the TCFD recommendations

Activityon integrated pest management (IPM), regenerative agriculture,

Adaptation measures against climate change

・ TNFD
TCFD

knowledge because they received little technical assistance although

Environmental
Strategy

Since 2020, the Kirin Group has supported coffee farms in Vietnam

Message fromTop Management

Coffee farms

for the procurement of certified sustainableoil (excluding palm kernel oil).
In accordance with our Action Plan for thePrimary raw materials
Secondary raw materials

Sustainable Use of Biological Resources, we have been calculating
Arabica coffee farms

for palm oil used as a primary raw material from 2013 and as asecondary raw material from 2014, and we use RSPO-certified
oil for the full amount (excluding palm kernel oil). We became
an associate member of the RSPO in March 2018 and a regularmember in FY2022. Since 2021, we have been a member of the“Japan Sustainable Palm Oil Network (JaSPON),” in order toaccelerate the procurement and consumption of sustainable palm

Drying of the coffee fruit (robusta)

The picturesque coffee bean producing
region of Da Lat

oil in the Japanese market as a secondary raw material.

Holistic Analysis of Risks
and Opportunities

our usage of palm oil in accordance with predetermined standards

Food waste reduction and recycling

Message fromTop Management

Paper andprinted materials

Reduce product waste losses
Reuse of spent grapes

improving demand forecasting, for example by closely sharing

Spent grapes from wine production are

information on demand fluctuation with plants and distribution“turned over” for a period of one year in a

certified paper or recycled paper by the end

centers.

compost heap on the company vineyard andof 2020. This target covers paper containers

In addition, strict management of sales volume targets ensuresreused as compost (organic fertilizer).

2017, we declared our aim of using 100% FSC-

100%

in Japanese Alcoholic and Non-alcoholic
Beverages Business, as well as all office paperthat valuable biological resources, containers and packaging are
Effective use of shochu spent grain

not wasted.

such as copy paper, envelopes, businesscards, company brochures, and other printed
materials. We successfully completed the switch

Since 2015, we have been supplying some of the residue (shochu

Kirin Brewery

Paper and Printed
Materials-90%

to 100% FSC-certified paper or recycled paper in November 2020.

spent grain) generated from shochu production in Mercian’s

Kirin Beverage

Yatsushiro Plant to hog farmers in Kumamoto Prefecture. In the

Merciansix years from 2015 to 2020, farmers used 7,158 tonnes of shochubags with the KIRIN logo, application postcards for prizes, and some

spent grain as livestock feed. In 2019, Kirin Holdings, Mercian andthe University of Tokyo jointly confirmed for the first time in the

Reduction target -75%
(by 2025, compared with 2015)

paper cups for tasting. We plan to expand these activities to otherbusinesses in Japan and overseas in the future.

world that shochu spent grain can reduce stress among hogs andimprove the taste of pork, demonstrating the potential for theContinuous donation of surplus inventory* to local
governments and food banks
440

are still cases when we cannot avoid generating excess inventory
because of gaps between demands and supplies. Since 2022, Kirin
Beverage has donated excess inventory to local governments, food

Envelopes*4 Products that cannot be shipped because it takes time for them to reach thecustomer, even if there are no quality issues and they are within the expiration
date.

Paper bags

spnet grain generated daily, we try to avoid the grain to be waste
as much as possible by using the grain as a raw material forcompost or as a microbial nutrient source for activated sludge inpaper mills. In 2021, our initiatives to utilize shochu spent grain
as livestock feed received praise, and our Yatsushiro Plant won
the “Fiscal 2021 Circular Economy Creation Promotion Merit
Commendation of the Minister of the Environment Japan”.

Biological
Resources

banks, for effective use by those in need.

Since livestock feed alone is not enough to process the shochu

Activity

We are making various efforts to reduce food waste, but there

effective use and creation of value from shochu spent grain.

・ TNFD
TCFD

Actual data
for fiscal 2022

Currently, we are promoting the use of FSC-certified paper for paper

Composting site forgrape press lees

Environmental
Strategy

To continually reduce waste loss, we optimize our operation by
FSC-certified paperor recycled paper

In the Action Plan that we revised in February

Recycling
Conversion of spent grain into livestock feed
The spent grain from beer production still contains nutrients and iseffectively used for cattle feed and culture media of mushrooms.

FSC® N004238*1 The Forest Stewardship Council (FSC) Forest Certification System is a system
for the appropriate management of forests and the sustainable use andconservation of forest resources. The FSC label is a mark that protects forests.
*2 The information above is current as of June 30, 2022. Photographs ofenvelopes, paper cups, etc., may be as of the time that events occurred, anddo not necessarily represent the latest versions.
*3 For details of the use of FSC-certified paper for paper containers, please see
the information in "Sustainable Paper Containers.”

Developing food products from brewer’s yeast
Lion continues to supply brewer’s yeast for use as an ingredient in
the Australian fermented food, Vegemite.

Holistic Analysis of Risks
and Opportunities

Paper cups
Application postcards

Educational program for wildlife conservation in Sri Lanka
Kirin Beverage is funding an educational program for wildlife
conservation for young people in tea farms in Sri Lanka. Leopards,
which are at the top of the food chain in the Sri Lankan ecosystem,
the need to educate the plantation and local people about theimportance of preserving the ecosystem. In 2020, a black leopard
was found in a trap. The black leopard in Sri Lanka is a mutationof a leopard that has not been seen in more than a decade. This
black leopard that was caught in the snare was transported to the
Department of Wildlife's animal hospital at the Elephant Transit
Home bordering the Udawalawe National Park but unfortunatelyof this incident, Sri Lankan NGOs, the Department of Wildlife

Château Mercian Mariko Vineyard through revegetation activities withthe participation of employees. Château Mercian values coexistencewith nature, local communities, and the future. By collecting dry grassfrom the habitat of rare and native species and seeding it back into
the field, Mariko Vineyard aims to regenerate vegetation from theseeds in dry grass that is sown. In the area where we regenerated
vegetation, the average number of species present in 2016 was 8.2,
but by 2021 this number had increased to 17.9.

about environmental conservation came together to plan a pilot

Activities to increase shrubby sophora in Mariko
vineyard

project to educate young tea farmers about the local ecosystem.

Along with an NGO and local elementary school students, we

Conservation, academic experts, and farm managers passionate

Kirin Beverage helped implement this project through funding
41

expand the habitats of rare and native species in the fields ofsupport. This program is implemented several times a year.
Lanka and representatives from environmental NGOs. Dozens ofyoung people who live on the farms receive two days of on-farmclassroom training and four days and three nights of field training

flavescens) in Mariko Vineyard. In 2019, international NGO
Earthwatch Japan and its volunteers collected, with the permission

and grew them. Two years later,
at the end of May 2021, weplanted the seedlings at Mariko
Vineyard.

Revegetation activities at
Mariko Vineyard
Year ofstudy

Average number of
species per square meter

2016

8.2

2017

12.0

Furthermore, since 2021,

2018

14.2

Shiogawa Elementary School,

2019

16.8

a local school where Mariko

2020

17.5

Vineyard is, has participated

2021

17.9

in activities to increase

shrubby sophora. The school grew cuttings in a flower bed in theschoolyard and planted them in Mariko Vineyard at the end of May
2022. We also invite a lecturer from NARO and hold environmental
classes for students at the school. We continued these initiatives
in 2023.

Protection of endemic species in the biotopes in plants
At Kirin Brewery’s Yokohama Plant, in an endorsement of the“Yokohama b Plan,” the city’s biodiversity action plan, we built a

Activities to increase shrubby sophorabiotope in the grounds of the plant in the summer of 2012. The
ecosystems, is pursuing initiatives to enrich the local ecosystem.

participated, and there have been some examples of students

Kirin Brewery’s Kobe Plant has been cultivating local endangeredin the first program finding work in environmental NGOs and thespecies, including the fish species, Hemigrammocypris rasborellaadministrative departments of Horton Plains National Park.

(golden venus chub), and Pogonia japonica, a species of orchid, in

Biological
Resources

Yokohama Brewery, which is a part of a widespread network ofat Horton Plains National Park. Over 200 youth have already

Activity

Lecturers include researchers from the Tea Research Institute of Srialso engage in activities to increase shrubby sophora (Sophora

cuttings of shrubby sophora,・ TNFD
TCFD

succumbed to its injuries and stress a few days later. In the wake

In 2016, under the guidance of specialists, we started efforts toof the rice field owners,

Environmental
Strategy

are often caught and killed in traps set by local people, increasing

Revegetation activities at
Château Mercian Mariko Vineyard

Message fromTop Management

Support for the restoration of nature

the plant’s biotope that we set up in 1997. This biotope functions
as a “refuge biotope” for protection and cultivation of local
endangered species. Our initiatives at our Kobe Brewery won
praise, and in 2018, we were awarded the “Fiscal 2018 Greening
Promotion Merit Award by the Prime Minister.”in activities with local communities to conserve the Ayumodoki(Parabotia curtus), a nationally designated natural monument.
Every year, farmed Ayumodoki raised by a local elementary school
are released into the biotope on the site, and in cooperation with
the Organization for the Protection of Ayumodoki in Seto and otherWildlife conservation workshop(Upper) Sophora flavescens planting by elementary school students at
the foot of Mariko Vineyard(Lower) Volunteer Sophora flavescens planting and cuttings

specialists, we work to improve the environment to make it easy
for Ayumodoki to grow, and conduct regular ecosystem surveys.

Holistic Analysis of Risks
and Opportunities

Since 2005, Kirin Brewery's Okayama Plant has been involved

Number of large farms obtaining certification in Sri Lanka(Farms)
100

90

80
60

60

72

94

94

60
40

0

20

7
2014

2015

2016

2017

2018

2019

2020

2021

2022

0

78

Plants
Butterflies

80

72

40
20

(Species)
100

103

108

14

13
2017

2018

Target

(%)
-100
-80

-75%
(2025)

18

19

2019

2020

28

30

-92

-90

2021

2022

-81

-65

-60

43

36

2016

88

Food waste reduction rate (compared with 2015)

-48

-40

-44

-20
2021

2022

0

2017

2018

2019

2020

Environmental
Strategy

52

93

Recovery of Tengusawa Vineyard ecosystem

Message fromTop Management

Key data related to biological resources

・ TNFD
TCFD

42

Activity
Biological
Resources

https://www.kirinholdings.com/en/impact/env/3_3/

Holistic Analysis of Risks
and Opportunities

We provide the latest updates on our initiatives related
to biological resources on the following website.

Water Resources
Background
Water is an essential raw material for the Kirin Group and an indispensable utility forour operation such as cleaning production equipment. The Kirin Group runs its
businesses in various regions in the world; Japan has abundant water resources
whereas Australia has experienced severe water shortages many times in the past.
We understand through the business experiences that water risks and water stressvary signiﬁcantly between countries and regions. Since 2014, we have periodicallysurveyed quantitative water risks and stress of operation sites by using scientiﬁctools and applied ﬁndings from the surveys to our business strategies.
We run scenario analysis based on the TCFD recommendations to understand water
risks in areas producing our agricultural raw materials and try countermeasures tothe risks. We will go beyond just reducing water usage and try to identify and����

Began full-scale introduction of wastewater treatment equipment using the activated sludge processat Kirin Brewery plants.

����Kirin Brewery's Kobe Plant, which has achieved the industry's highest level of water conservation,
began operations.

����

Kirin Brewery's Yokohama Plant led the industry in starting Water Source Forestation Activities.

����

Installed a water recycling plant at Lionʼs Castlemaine Perkins Brewery.

����
����

Assessed water risks at 44 sites in 9 countries and in major areas producing agricultural raw materials.

����Started water source conservation activities at tea farms in Sri Lanka.

����
����

mitigate our impact on the natural capital of basins as a whole, collaborating with

We will create together

A society that values sustainable water resources
Bring water, used as a raw
material, to asustainable state

Solve issues with water in a way that suits
the characteristics of basin regions where
our business bases are locatedUpstream

P.46
P.46

Water source forest conservation activities
Grassland conservation activities torecharge groundwater

P.46

ProductionRawmaterials
P.45

Conservation activities forwater sources on tea farms

P.47
P.47

Wastewater and the usage of biogas
Environmental protection
activities in basin regions

PlantsDownstream

Products

As part of our climate scenario analysis, we conducted a more detailed water risk assessment of major areas
producing agricultural raw materials.
As part of our climate scenario analysis, we conducted a more detailed water risk assessment of businesssites. Lion measured the water footprints of its business sites in Australia and New Zealand, as well as
key agricultural raw materials.
*Oceania region only in Lion����

local stakeholders.

43

Identiﬁed natural capital (GHGs, water and land use) in the upstream portion of the Kirin Group's value
chain and water risks at major global business sites (disclosed in 2015).

����Participated in the Corporate Engagement Program of the Science Based Targets Network. Trial based on
the draft methodology.
Conducted a natural catastrophe model ﬂood simulation for 20 business sites in Japan.

Began insurance risk surveys (covering major plants and breweries in Japan andoverseas) based on the results of natural catastrophe model ﬂood simulations

Main Activities● Conservation of water sources at 24 locations in tea farms in
Sri Lanka by the end of 2023. Also, we distributed pamphlets
to raise awareness for local residents in water source areas(approximately 15,000 people) , telling the importance ofwater, water conservation, and protection of basin regions.

TargetWater consumption rate at production sites and breweries withhigh levels of water stress (Lion)● In the Corporate Engagement Program held by the Science
Based Targets Network to develop scientiﬁc approaches andrules for setting targets related to water resources (since 2021).

Water consumption rate2025: 2.4kl/kl or less (non-ﬁnancial target)*2

Target: 2.4kl/kl or less
Actual results：3.6kl/kl

2024: 3.0kl/kl or less (non-ﬁnancial target)*2*1 Tooheys Brewery,Castlemaine Perkins Brewery, James Boag Brewery, Pride*2 Tooheys Brewery,Castlemaine Perkins Brewery, James Boag Brewery

44

Water usage

Water usage

Water usage

1990
34,900 thousand m

2015
49,643 thousand m

2019
968 thousand m

2023
12,490 thousand m

3

-61%

2023
19,264 thousand m

3

Water usage2019
2,222 thousand m

20192,825 thousand m

3

-12%

2023
2,499 thousand m

2023
865 thousand m

3

3

3

Water usage
3

3

-19%

2015
2,936 thousand m

3

2023
2,392 thousand m

3*3 This region covers the Oceania region only. Excluding U.S. regions

Holistic Analysis of Risks
and Opportunities

2023
1,428 thousand m

3

-11%

Lion*3

Mercian

Water usage

3

Water
Resources

Kyowa Kirin (global)-36%

Kirin Beverage

Activity-64%

Kyowa Hakko Bio (global)

・ TNFD
TCFD● Conserving biodiversity and recharging groundwater through“Water Source Conservation Forest Activities.”

Actual results
Kirin Brewery● A scenario analysis workshop requested by TNFD at New
Belgium Brewing in Fort Collins, Colorado (US), where water
stress is extremely high (2023: the details of this workshop
were published in beta v0.4 of the TNFD Framework).

Environmental
StrategyLion

2025: Less than 2.4kl/kl (CSV commitment)*1

Message fromTop Management

Targets and Progresslack of funding although the Sri Lankan government recognizedissues in areas where we source our agricultural raw materials.

importance of micro watersheds and was willing to conserve

We completed conservation activities at 24 sites by the end

them. Therefore, in 2018, Kirin Holdings and the Rainforest Allianceof 2023. We educated 1,750 people living near water sources,

started working on activities to conserve watersheds at the farms,

telling the necessity of conserving water sources. In addition, we

now collaborating with Plantation Human Development Trust

have distributed pamphlets to 15,000 residents, aiming to raise(PHDT) and Estate Worker Housing Cooperative Societies (EWHCS),

awareness of water conservation and watershed protection .

affiliated organizations of the Sri Lankan government.

At the tea plantations of the Sri Lankan highlands, tea trees growDuring our most recent visit (March 2024) to farms, we saw

on steep slopes. In such places, rainwater penetrates into theprogress in conservation efforts, with micro watersheds on farms

ground and gushes out as springs if strata and other geographic

being fenced off to prevent animal access and inappropriate use of

conditions are met. These springs are known as micro watersheds,

water by others. We are commenced planting native plant species

and can be found in the highlands of central Sri Lanka. In almost

as a natural buffer around the watershed. We expect that the

all cases, these springs are headwaters of rivers that flow throughspecies will provide a diversity of vegetation at tea farms, whichcoastal towns. The watersheds are very valuable sources of water

currently have a single crop, and prevent soil of mountain slope

for the cities while occupying a tiny area of central Sri Lanka.

from flowing down to water sources as a result of torrential rain.

As a part of our supports for Sri Lankan tea farms to acquire
Rainforest Alliance certification, we collaborate with farm45

managers each year. Through discussions with the managers that

Summit25

24

Number of residents to educate
the importance of water

100%
Group training: 1,750 people
Distribution of pamphlets: 15,000 people

20
15

15
12

Tea farm
Spring（micro watersheds）

Water
Resources

Filtration

The Kirin Group is conducting an education program to teachresidents living near water sources about the importance ofwater and the functions of micro watersheds. At some farms, weare also working to incorporate our educational programs as apart of curriculums of nurseries for children of tea pluckers andelementary schools. We have provided the program to 15,000
people, our initial target, and plan to expand the program further.

Activity

Mechanism of micro watersheds

Number of areas where water sources wereconserved among Sri Lankan tea farms

Education programs to teach the value of water

・ TNFD
TCFD

conservation activities of watersheds were being held up due toactivities at Sri Lankan tea farms as a first step in solving water

Environmental
Strategy

In 2018, the Kirin Group began water source conservation

Message fromTop Management

Conservation activities for water sources on tea farms

10
5

5
3

River
0

A fenced off micro watershed

2020

2021

Sign indicating water source conservation(President of Kirin Beverage and visiting
members visited the site in February 2023)

2022

2023

Flyer for water education

Holistic Analysis of Risks
and Opportunities

Tea bushes planted on steep slopes

2019Grassland conservation
activities to recharge
groundwater“Water Source Forest Conservation Activities”, an activity to

In our production process, we use a lot of water in cleaning andsterilizing processes. We have established management system
to strictly control quality of the cleaning processes and water

protect water source forests at our plants, began in 1999 with theconsumption by optimizing flow rate and other parameters. We

which is the source of water for the Kirin Brewery Yokohama Plant,also actively promote reuse of water, considering characteristics

employees to “Aso Grassland Restoration Project” which aims

and continues today at 11 locations throughout Japan. Basedof processes.

to make Aso district a World Heritage Site. The project supports

on medium- and long-term agreements with local governments

For example, the rinsing water that we use in the final cleaning

controlled open burning of grassland, a traditional methodology

and related organizations that manage water source forests, we

step of a equipment is relatively clean, so we can use it again

to maintain quality of grasslands. The methodology enables

have planted trees, cleared

for the initial cleaning step of other equipment. In this way, theAso district, where Yatsushiro Plant sources its water, to secure

undergrowth and branches,water used for cleaning is cascaded for repeated use according

abundant groundwater. Maintaining grasslands not only nurtures

and thinned trees, and many

to water quality. In order to ensure that equipments are

groundwater, but also protects habitats for a wide variety of floraof our forests are now brightappropriately cleaned, it is necessary to know how to use theand fauna, including endangered species.

equipment, such as how to balance the amount of water that canbe recovered with the amount of water that is used, and how

customers are invited toto time the process. The Kirin Group is achieving a high level ofparticipate in these activities.

water conservation by accumulating best practices and sharing
them among production sites.

Water Source Forest Conservation Activities
at Kirin Mt. Fuji water source forest

Preliminary
washing

Kirin Chitosewater source forest

Shiga plant

Blowing

Sendai plant

Kirin Okayama water
source forest

Beer

Blowing

Collection of recycled wasterwater

Cutting paths around areas for controlled burning

In 2009, Lion partnered with the government of Queensland,
Australia, where water stress is extremely high, to install a reverse
osmosis (RO) filter at the Castlemaine Perkins Brewery, to minimize

Takasaki plantwater use in brewery. Lion introduced this filter in order to reduce
50% of fresh water usage in the brewery by recycling wastewater.
The brewery uses treated water by RO in non-product related
processes, such as cleaning, cooling, and pasteurizing. Lion is

Yokohama plant /Shonan plantleading sustainable water use in Kirin Group.

Kirin Mt. Fuji water
source forest
Kirin Distillery

Kirin Kiso-river water source forest
Nagoya plant

Controlled burning

Holistic Analysis of Risks
and Opportunities

Kirin Kanagawa
water source forest

Fukuoka plantFinalrinsing

Cleaning process(from left to right)

Kyowa Kirin Takasaki
water source forest

Okayama plant

Ube plant

Hypochlorite
sterilization

Water
Resources

Kirin north Zao
water source forest

Kobe plant

Kirin Fukuoka
water source forest

Alkalirinsing

Hokkaido Chitose plant

Water source rechargeof Sengari Reservoir

Kyowa Kirin
Yamaguchi water
source forest

NaOH

New water

Activity

Lake Biwa water
source forest

CascadingCascading

Kirin’s forest across the country

・ TNFD
TCFD

Yatsushiro Plant, one of production sites of Mercian, sent its three

Environmental
Strategyindustry's first forest in the Tanzawa area of Kanagawa Prefecture,and lush. In some locations,46

Production

Message fromTop Management

Water Source Forest
Conservation Activities

Environmental protection
activities in basin regions

Anaerobic treatment does not require electricity for aeration,

treatments than those required by regulations. Breweries andand anaerobic microorganisms generate biogas as a by-productplants in basin areas with strict regulations remove phosphorusof the treatment process. The biogas contains methane as

and solids by pressure flotation in addition to conventional waste

its main component, and it can be utilized in biogas boilers

water system. We process excess sludge generated from aerobic

and cogeneration systems. The origin of biogas is agricultural

treatment and pressure flotation into fertilizer and soil conditioner.

products such as malt which is grown by absorbing CO2 from the

The Kirin Group discharges clean water into the ocean, rivers, andatmosphere by photosynthesis. Thus, the gas is classified as asewers, considering local aquatic ecosystems.

renewable energy source since the amount of CO2 generated from

In our breweries, we have introduced anaerobic treatment systemits combustion does not affect global CO2 volume.

At the various production plants of the Kirin Group, we areconducting a range of environmental protection activities,
particularly riverside clean-up activities in cooperation with local
governments and NGOs. At our breweries and plants, including
those of Kirin Brewery, Kirin Beverage, Mercian, Kyowa Kirin,
and Koiwai Dairy Products, we engage with local environmental
activities, focusing on rivers where we intake water for production
and other nearby rivers.

to purify the wastewater generated by production processes.

At Yamaguchi Production Center of Kyowa Hakko Bio, employees

Environmental
Strategy

Kirin Group sets higher quality standards of waste water

Message fromTop Management

Wastewater and the usage of biogas

conduct clean-up activities in the waters off Hyakken, a port

Biogas is used as the fuel for a gas engine togenerate power, which is then utilized aselectricity for the plant.

47

The heat exhaust from the biogas
engine is used to produce steam
to be utilized in the manufacturing
process.

SteamboilerDrainage water

Steam
Clean-up activities off Hyakken

Transferred to
manufacturing process

Water
Resources

Treatedwater
Anaerobic
treatment facility

Biogas Exhaustengine heat boiler

Manufacturing
process

Activity

BiogasElectricity

・ TNFD
TCFD

facility where chemicals and glucose solutions are unloaded.

Pressure flotation facility

Adjustment tankPrimary treatment
Wastewater

Screen treatment

Anaerobic
treatment facility

Aerobic
treatment facility

Secondary treatment
Anaerobic treatment
BiogasAerobic treatment

Settling tank

Tertiary treatment
Pressure flotation

Sludge dehydrator

Discharge
Excess sludge treatment

Oceansand rivers

Holistic Analysis of Risks
and Opportunities

ScreenWater use

Consumption rate
(m3/million yen)50

80,00040

44,10020,000

10

2019

2020

2021

2022

2023

5.30 5.31

20,000

5.37

5.60

5.83

15,000 34,900

6
4

10,00012,509 12,280 12,252 12,233 12,490

5,000

0

0

1990

2019

2020

2021

2022

2023

2

3.80

3.76

3.82

（m3/kL）
4

3.65

2,500

8

25,000

3.64

3
2,000
2

1,500

2,669

1,000

2,689

2,483

2,616

2,392
1

500

0

0

2019

2020

2021

2022

2023

・ TNFD
TCFD

0

20(thousand m3)
3,000

Consumption rate

Consumption rate

21

49,085（m3/kL）
10

10.4

Water use

49,371

Water use

Consumption rate

54,64730

25

Consumption rate

30,000

Water use

40,000 64,653

27(thousand m3)
35,000Consumption rate

Water use

60,00030

Water use

Environmental
Strategy(thousand m3)
100,000

33

Water use and consumption rate
(water use / production volume) of Lion(Oceania region)

Water use and consumption rate (water use /production volume) of Kirin Brewery

Water use and consumption rate
(water use / sales revenue) of entire Group

Message fromTop Management

Key data related to water resources

048

Water use

Consumption rate

Water use(thousand m3)
50,000

3,500

0.73

1,739
0.55

1,000

1,666
0.47

1

1,428

0.37

0.32

0.5

500
0

2019

2020

2021

2022

2023

0

60

120,000

50

100,000

50

80,00040

45

4730,00020,00037

28,51923,74323,963

19,26410,000040
30

38,464

20
10

2019

2020

Cyclical use ratio

2021

2022

2023

0

65

60,000 105,433

63

89,78865

88,80566
59

67,99060

83,04230
20

40,00020,000
0

（%）
70

10

15,901

3,864

1,978

2,049

2,495

2019

2020

2021

2022

2023

We provide the latest updates on our initiatives related towater resources on the following website.
https://www.kirinholdings.com/en/impact/env/3_2/

0

Holistic Analysis of Risks
and Opportunities

1,483

Recycled water

Cyclical use ratio

1,500

2,222

50

Re-used water(thousand m3)
140,000

Cyclical water use

2,000

Water use

Water use

2,500

51

Consumption rate

（thousand m3/hundred million yen）
70

Consumption rate

3,000

40.000Consumption rate

1.5

Cyclical water use and cyclical use ratio(cyclical use / (tap water use + cyclical use))of entire Group

Water
Resources（thousand m3/hundred million yen）
2

(thousand m3)
4,000

Activity

Kyowa Hakko Bio(Global) water use and basic unit
(water use / sales revenue)

Kyowa Kirin (Global) water use andbasic unit(water use / sales revenue)

Containers
and Packaging
Background49

Containers and packaging are essential to maintain the quality of products when delivering
them to customers. Greenhouse gas (GHG) emissions, however, are currently unavoidable inthe manufacturing and transportation of containers and packaging. In addition, theexcessive extraction of raw materials for containers and packaging and the improper
disposal of used containers and packaging can damage natural capital. To address thesevarious issues related to containers and packaging, the Kirin Group has promoted 3Rs(Reduce, Reuse, Recycle), and has aimed to make containers and packaging lighter, utilize
recycled containers, and achieve a high recycling rate. With regard to paper containers andpackaging, we have been promoting sustainable paper use in order to solve problems
related to human rights in raw material production areas and the destruction of forests. In
2020, we achieved 100% use of FSC-certiﬁed paper for all paper containers at Kirin Brewery,
Kirin Beverage, and Mercian, which we have subsequently maintained. We plan to expand
this initiative to other Kirin Group companies around the world. In response to the problems
associated with plastics, we aim to create a “society that continuously circulates plastics”.

We will create together

A society that circulates containers and packaging in a sustainable way
Develop and distribute sustainablecontainers and packaging

ReduceReuse

RecycleRenewable

Build a resource circulation system tomake containers and packaging sustainable

P.52

Corner-cut cartons, Smart-cut cartons, 6-can pack,paper containers for wine

P.53

PET bottles for wine, roll labels, PET bottles for water,
No label product, Shortening of labels

P.54

Aluminum cans, Lighter returnable glass bottles

P.54

Reuse of glass bottles

P.51

R100 PET bottles, chemical recycling

P.51
P.55

Promotion of more eﬃcient sorting, collection, and recovery
PET bottles, glass bottles, Aluminum cans

P.55

Promotion of recycling in Australia and New Zealand

P.52

FSC-certiﬁed paper containers

����
����

Developed the lightest returnable glass bottles (633mL) in Japanand introduced them into the market on a limited trial basis
Began using 204-diameter aluminum beer cans.

����Completed the switch to full use of the lightest returnable glass bottles (633mL) produced in Japan.

����Began using corner-cut cartons.

����
����

����
����
����
����

����

Began developing and deploying the lightest returnable glass bottles (500mL) in Japan.
Began using PET bottles made from 100% recycled PET resin.
Revised the Kirin Group Action Plan for the Sustainable Use of Biological Resources, and declared toachieve 100% use of FSC-certiﬁed paper for all paper containers at Kirin Brewery, Kirin Beverage, andMercian by the end of 2020.
Developed the Kirin Group Plastic Policy.
Began using “R100 PET bottles” made from 100% recycled PET resin for Kirin
Kirin Nama-cha
Nama-cha Decaf
Decaf.
Achieved 100% use of FSC-certiﬁed paper in all paper containers and packaging across Kirin Brewery,
Kirin Beverage, and Mercian.
Began studying technologies for PET resin recycling through chemical recycling in a joint project withseveral companies.
Expanded use of “R100 PET bottles” to cover Kirin Nama-cha and Kirin Nama-cha Hoji Sencha
Sencha.
Began sales of no label products.
Joined the “Alliance to End Plastic Waste (AEPW),” an industry-led NGO.
Began trialing the collection of used PET bottles at convenience stores.
Expanded the collection sites for a demonstration trial on the collection of used PET bottles.
Began joint research to explore industrial applications for PET-degrading enzymes, in order to ﬁnd
applications for chemical recycling.

Joined the Business Coalition for a Global Plastics Treaty (Japan)
Started using chemically recycled resin in PET bottles for alcoholic beverages
as the ﬁrst case in Japan
Succeeded in developing technology for PET decomposition and reﬁning

Main Activities

Percentage of recycled PET resin
used at operating companies in Japan
100% by 2050 (Environmental Vision 2050)
50% by 2027 (Plastic Policy)

PET bottle resource circulation●Developed the "Kirin Group Plastic Policy" in 2019, and set a target to replace 50% of
PET resin used in Japan with recycled PET resin by 2027

PET bottles●Expanded the product line of “R100 PET bottles” made from 100% recycled PET resin

Recycled resin ratio●Began selling no label products in 2021 in order to reduce plastic usage.

We will actively

28.0%

of systems foreﬃciently collecting
and using used PET
bottles.

Medium bottle

-21%

-19%

-33%

-55%

605g→475g

470g→380g

20.5g→13.8g

63g→28.3g

90g Reduction

6.7g Reduction

34.7g Reduction

130g Reduction(Compare to 1992)(Compare to 2013)●Set targets to use 100% sustainable paper resources at Lion (Australia and New
Zealand) by 2025
●Developed technology for decomposing PET and reﬁning the monomers produced
after decomposition in relation to chemical recycling of PET bottles in 2023
●Started using chemically recycled resin in PET bottles for alcoholic beverages for theﬁrst time in Japan in 2023
●Joined the Business Coalition for a Global Plastics Treaty (Japan) in order to establish
an international treaty aimed at eliminating plastic pollution, in November 2023

(Compare to 2002)

Adoption of sustainable paper containers

Material mix of containers and packaging, by weight (Japan)
Kirin Brewery

In 2020, we achieved 100% use of FSC-certiﬁed paper or recycled paperin paper containers and packaging across Kirin Brewery, Kirin Beverage,
and Mercian. We plan to expand this initiative to Kirin Group companies
around the world by 2030.
Gift cartons

Cardboard cartonsfor products

Drink boxes forbeverages

Drink boxes foralcoholic beverages

4%

6%
25%

100%

100%

100%

100%

100%

Glass bottles Aluminium cans
17 kt
71 kt

Steel cans
11 kt

2%

5%

Drink boxes
5 kt

6-can packs
15 kt

23%
PET bottles
65 kt

Mercian35%

Cardboard cartons for products
100 ktGlobal resource use of containers and packaging: 517 kt

Holistic Analysis of Risks
and Opportunities

6-can packs

Kirin BeverageContainers
and Packaging

FSC-certiﬁed paper ratio(Compare to 1984)

PET bottle forthe 2.0-liter water●Maintained our achievement of the 100% use of FSC-certiﬁed paper for all paper
containers and packaging in Kirin Brewery, Kirin Beverage, Mercian

Activity

Large bottle

Aluminium can
350ml●Strengthened collaboration with other companies and local governments as a part ofeﬀorts to collect PET bottles

・ TNFD
TCFD

Improved sustainability of raw materials
for containers and packaging

Weight reduction ratio

50

2023

●Begun technical studies on recycling PET resin using “chemical recycling” in a joint
project with several companies with the aim of creating a "society that continuously
circulates PET bottles"

Environmental
Strategy

promote the creation

38% by 2024 (non-ﬁnancial target)

Message fromTop Management

Targets and Progress

In December 2020, Kirin began technical studies aimed atalkaline components during the refining process, which can thenthe Kirin Group is gradually expanding the use of “R100 PET bottles”

commercialization focusing on recycling PET bottles using chemical

be reused in the decomposition process. Therefore, by combining

made from 100% recycled PET resin.

recycling.

these two technologies, we can realize a resource-circulating

R100 PET bottles use mechanically recycled resin. By using this resin,

In the current mechanical recycling system, there are constituentsrecycling process. With these technologies, we can carry out the

we can reduce petroleum-based resin by 90% and GHG emissions bythat are difficult to remove from resins, and it is understood thatprocesses for decomposing and recycling PET in a short time and50-60%, compared with conventional PET resin..

the quality of resins deteriorates with repeated recycling.

with low energy, reducing environmental impacts and costs.

We began using recycled resin for some of the packaging ofIn chemical recycling, we sort, pulverize and wash used PET

These two PET chemical recycling technologies that we have

Kirin Gogo-no-Kocha Oishii Muto (sugar-free) in February 2014.

bottles. After the processes, we depolymerize them (chemicaldeveloped are currently under patent filing. The Kirin Group

Subsequently, in 2019, we began using “R100 PET bottles,” which use

decomposition treatment), and break down and refine the PET into

is seeking partners to develop practical applications for these

100% recycled PET resin, for Kirin Nama-cha Decaf .

intermediate materials, and polymerize again into PET.

technologies, and we are working to achieve our vision for

Our use of “R100 PET bottles” as of April 2024 is shown below.

It is possible to recycle used PET bottles into new materials as

containers and packaging and create a society that continuously

many times as we want by decomposing them down to molecular

circulates resources, taking the environment into consideration.

size. We can also recycle PET products other than used PET

In 2023, Kirin Brewery introduced chemically recycled resin for 3L

bottles into PET bottles with this technology.

PET bottles as containers for Tap Marchè and TAPPY, that are beer

In December 2023, we developed two technologies, anserving systems, at bars and restaurants. This was the first attemptalkaline decomposition method and a method of refinement by

to introduce chemically recycled resin for PET bottles for alcoholic

electrodialysis. We developed the alkaline decomposition method

beverages in Japan.

at Kirin Central Research Institute and the method of refinement

In this way, we are aiming to establish a circular economy for PET

by electrodialysis in joint research with the Faculty of Science andresin products.

Society that continuously circulates plastics

Promotion of more efficient plastic sorting and collection

By giving new life to PET
bottles as new PET bottles

51

Petroleum resin usage-90%

GHG emissions
from production

GHG
GHG

-50%~
-60%

1

Aiming to create “a society that continuously circulates plastics,”

From petroleum-derived tobio-derived raw materials

YAKKYOKU CO.,LTD., and as of March 2024, this trial has moved toBusinessmaterials users

PET bottles forbeverages
General consumers

Overseas exports(for clothing, etc.)
Kirin Nama-cha : 525 ml (First photo from left)
Kirin Nama-cha Hoji Sencha : 525ml(Second photo from left)
Kirin Nama-cha Karada-Hare-cha：525ml (second from right in the photograph)
Kirin Nama-cha caffeine Zero：430ml(The right photo)*Product photos are as of the end of April 2024.

2

Some

Collection contractors
and government

Thermalrecycling3

Promotion of more efficient sorting,collection, and recovery
New recycling routes that Kirin is focusing on for the future
Existing recycling routes
One-way routes

Used PET bottles are collected and sorted using collection boxes
installed in WELCIA’s dragstores, and once collected at WELCIA's
Ishizuka Green PET Corporation.
Flow of collecting, recycling, and product creation
WELCIA
Consumers

RetailCollection
at stores
Gatheringat distribution
centers
Sale ofproducts

Kirin
Intermediate
treatment

Recycling

BeveragemakerCompaction
treatment

Resinrecycling

Recreationof products

Holistic Analysis of Risks
and Opportunitiese c ti o nregular operation.

distribution center, they are delivered to recycler Far Eastern
Reduction ofresin usage

sumpt
Con Use ion/c y c li n g

C o llWaste materials
and clothingd u c ti o n

Used PET bottles

P ro

Re

Existing recyclers
Mechanically recycled resin

Chemical Recycling Resin
Chemical recyclers

Creation of
new recycling routes
with chemicals

4in June 2022, we launched a commercial-scale trial with WELCIA

Containers
and Packaging

Other thanbeverage bottles

New resin

ActivityEngineering, Waseda University. This refining method regenerates

In accordance with the Plastic Policy that we established in 2019,

・ TNFD
TCFD

Chemical recycling

Environmental
Strategy

R100 PET bottles

Message fromTop Management

Sustainable PET bottles

Reduce
6-can pack

At the end of November 2020, the Kirin Group achieved the 100%

The Institute for Packaging Innovation developed “corner-cut

In addition to being easy to hold and remove, 6-can packuse of FSC-certified paper in all paper containers and packaging

cartons,” and we introduced them to the market in 2004. The

containers of beer are designed to be lightweight. For example,

at Kirin Brewery, Kirin Beverage, and Mercian. This initiative covers

beveled corners mean that the carton has eight sides, which

we have installed a cut-out section at the sides of the pack to fit

all paper containers, including “6-can packs,” “gift boxes,” “paper

makes the carton stronger, and the cardboard thickness has been

the can edge (Kirin patent), and use a “can bottom lock structure”

containers,” and “cardboard cartons for products,” and it is the

reduced. This results in a 10.9% reduction in the weight of theto stabilize the bottoms of the can with paper. These innovations

first declaration and achievement of such a target by a Japanese

carton compared to conventional cartons.

have resulted in a reduction in packaging materials of 4 grams,

manufacturer. In 2022, we revised the “Action Plan for the

Quantity of paper saved byeliminating corners

Sustainable Use of Biological Resources,” and expand companies
complying the action plan to Kyowa Kirin, Kyowa Hakko Bio,or 8%, per 500 ml 6-can pack. At the same time, they have also
improved the pack’s can-holding power.
Layered for comparison

Lion, Koiwai Dairy Products. We began related initiatives in thesecompanies.

17.5mm
Of the same thickness,more corners makethe object more load-bearing.

Quantity of paper
saved by making
cardboard core thinner52

New 6-can packPrevious 6-can pack

Reducing the weight of paper containers for wine
Since March 2022, Mercian has reduced the weight of containers for
its wine. Specifically, this innovation was applied to five types of wine,

Activity

middle
core

-8.9%

10mm

・ TNFD
TCFD-2%

Environmental
Strategy

Corner-cut cartons

Message fromTop Management

Sustainable
paper containers

namely FRANZIA (red, white, dark red) bag-in-box and FRONTERAFSC-certifiedlabeling

Smart-cut cartons
The smart-cut carton is based on the corner-cut carton technology.
In addition to the reduction in weight, the corners of the longedges at the top of the carton have been cut to fit the space
FSC C137754

created by the lids of the 204-diameter can.

®

This has resulted in a 16% weight reduction compared to the previous
corner-cut carton. The Institute for Packaging Innovation developed

For these products, Mercian uses bag-in-box containers, consist ofouter paper boxes and inner flexible plastic bags. By reducing theweight of the outer box from 190g to 143g, by approximately 25%, we
reduce the use of paper resources by around 31 tons per year.

Containers
and Packaging

FSC logo(Cabernet Sauvignon and Chardonnay) wine-fresh servers.

Lightweight bag-in-box packaging

the smart-cut carton in conjunction with a container and packaging

Holistic Analysis of Risks
and Opportunities

manufacturer, and obtained a joint design registration.
smart-cut
cardboardcases

FSC ®C137754*Product photos are as of the end of April 2024 or at the time of the event.

62.25mm
204
Diameter 66.3mm
can*Product photos are as of the end of April 2024 or at the time of the event.

Reduce

In 2022, the Institute for Packaging Innovation developed a 720ml

The Institute for Packaging Innovation has developed and put into

PET bottle for wine that is the lightest in Mercian’s history. We

practical use the lightest 2L PET bottle for water produced in Japan,

reduced the weight by 5g, from 34g to 29g. Mercian expects that theat 28.3g. We reduced the weight of the 2L PET bottle from 63g prioruse of this lightweight PET bottle for all 720ml PET bottle products

to June 2003 to 28.9g in 2015. We further reduced the weight in April

that it produces and sells to reduce PET resin use by approximately

2019 by improving the bottle’s screw top, including making the screw

83 tonnes per year and GHG emissions by approximately 286 tonnes.

threads narrower and the screw portion shorter, thereby putting it

The lightweight PET bottle received the “46th Kinoshita Award forinto practical use as the lightest such PET bottle produced in Japan.

Packaging Technology.” The bottle won the award partly because

These efforts will result in annual reductions of PET resin use of

we reduced resin use by approximately 15% while maintaining theapproximately 107 tonnes and GHG emissions of approximately 375“Bordeaux shoulder shape” and a “clean body shape,” and partly

tonnes. In addition, for some 2L and 1.5L large PET bottle products,

because the fact that it uses the Kirin Group's gas barrier coatingsuch as Kirin Gogo-no-Kocha and Kirin Nama-cha, we reduced thetechnology, which uses DLC*1 film, to keep wine fresh for a longweight by approximately 16%, from 38.2g to 32.2g, by improving theperiod of time.

molds of preforms. We have been gradually introducing these bottles

Natural Water No Label , exclusively online. In June 2022, we began
test sales of Kirin Nama-cha No Label with Paper Sticker at somemass merchandise stores in the Tokyo metropolitan area. By attachingsmall paper stickers that provide required information, we can sell
individual products without conventional labels. In August 2023, weannounced PET bottle direct printing technology compatible withrecycling processes.
No label productNo label withpaper sticker

Direct print to
PET bottleof PET resin use of approximately 439 tonnes and GHG emissions of

34g

Reduced29g

weight by 5g

approximately 1,515 tonnes.

*This product is fictional.

Weight reduction of 2L PET bottles for water
Previous

Improved

Shortening of labels and packaging materials

53

width of labels on bottles

21g

2003

7g

2010

6.1g

2015

0.6g

2019

2022

Sencha that we released in
2022. By reducing the size
thinner by switching to rollmain types of labels for PET bottled soft drinks: shrink labels and

63g

42g

labels, we reduced resin

35g
28.9g

roll labels. We place shrink labels over bottles in the filling plant,

28.3g

label thinner. Customers can easily remove the label, contributing tosorting trash and recycling. At Kirin Beverage, we use roll labels forsome products sold exclusively in vending machines, such as Kirin

Namacha , Kirin Gogo-no-Kocha Oishii Muto , Kirin Loves Sports , Kirin
Amino Supplement C , and Kirin Tennensui Natural Mineral Water.
Since February 2023, additional roll labelers have been installed at
Kirin Beverage Shonan Plant and Shiga Plant to expand application ofroll labels on the company’s brands.

No label productProduct released
in 2021

Product released
in 2023

Shortening of paper packaging
materials for six-bottle packs

tonnes. We have made thepaper packaging materials

Since March 2021, we have been selling Kirin Nama-cha No

for the 525ml and 600ml

Label 6-Pack and Kirin Nama-cha Hoji Sencha No Label 6-Pack at

products in the six-bottle

merchandise stores in Japan. We have also been selling Kirin Nama-packs of no label productscha No Label and Kirin Nama-cha Hoji Sencha No Label exclusively

shorter than those of theonline. In May 2022, we expanded our range of no label products

products we launched

Product released
in 2021

Product released
in 2022with the launch of Kirin Gogo-no-Kocha Oishii Muto (sugar-free) No

in 2021, reducing paper

Label and Kirin FIRE ONE DAY Black No Label exclusively online. In

consumption. We also use FSC-certified paper for packaging materials

April 2023, we began sales of a new product, Kirin Shizen-ga-Migaita

and display a label of the certification.
*Product photos are as of the end of April 2024 or at the time of the event.

Holistic Analysis of Risks
and Opportunities

wrapping them around the PET bottle, which enables us to make thetonnes and GHG emissionsof approximately 400

then apply heat to shrink the label. This means a certain thicknessof labels is required. On the other hand, we attach roll labels by

use by approximately 180

Containers
and Packagingof the labels and making it

Since September 2020, Kirin Beverage has used “roll labels” on somePET bottle products for sale in vending machines. There are twofor the 600ml Kirin Nama-cha and Kirin Nama-cha Hoji

reduction

reduction

reduction

reduction

Use of roll labels〜2003

Shortening of labels

Activity

We have shortened the* Abbreviation for Diamond-Like Carbon (Patent No. 4050648, etc.), a technologythat forms a thin film of carbon on the inside of PET bottles to inhibit thepermeation of oxygen, water vapor, carbon dioxide and other gases.

・ TNFD
TCFD

since December 2020. These efforts will result in annual reductions

Environmental
StrategyLightest PET bottles for water produced in Japan

Message fromTop Management

Reducing the weight of PET bottles for wineReduce

Reuse of glass bottles

In 2011, we achieved a weight reduction of our aluminum cans

Our returnable glass bottles for beer are the lightest among those

In Japan, people have collected and reused glass bottles over andapproximately 29% with our 204 diameter can compared with the

produced in Japan in all sizes (633mL, 500mL, and 334mL). As wellover since the Meiji Era (more than a hundred years ago). Returnable

209 diameter can which was standard at the time, by reducing theas being light in weight, returnable glass bottles need to be durable

glass bottles come back to plants and are washed thoroughly inside

diameter of can lids, narrowing the top and bottom edges, thinning

enough to maintain their returnable functionality and strong enoughand outside to make them as clean as a new bottle. After stringently

the walls. Working with materials manufacturers, we developed an

to ensure consumer safety and security of mind. To solve thischecking the bottles for scratches and cracks with an empty bottle

aluminum can with thinner can lids and a body in 2016. We havedilemma, the Institute for Packaging Innovation created the lightest

inspection machine, we put the bottles back into production lines

reduced the overall weight of the can by approximately 5% (fromreturnable glass bottles by making excellent use of innovations suchand fill them with beer. When handled carefully, returnable glass

14.6g to 13.8g). This represents a weight reduction of 33% (6.7ɡ)as a ceramic coating that forms a thin film on the bottle’s outsidebottles last for an average of about eight years. This means they arefrom the 209 diameter can. Weight reduction is necessary for both

surface, an impact-resistant shape design, and a bottle mouth designused around 24 times.

steel and aluminum cans. In particular, aluminum requires a largethat satisfies the conflicting requirements of being easy to open andamount of electricity for smelting, so weight reduction contributes

able to be sealed tightly and that is also strong enough not to chipsignificantly to the reduction of Scope 3 GHG emissions.

when opened.
CustomerTransitioning weight of the 350ml aluminum cans

54

Diameterandweight of
the body

mm
5.3g

64.7

mm
3.9g

62.3
mm
3.1g

62.3

62.3

mm
3.1g

mm

2.9g

＋

＋

＋

＋

66.3

66.3

66.3

66.3

66.3

15.2g

14.7g

12.1g

11.5g

10.9g

20.5g

18.6g

15.2g

14.6g

mm

-6.7g

mm

mm

mm

＋
mm

344mL bottle

-21%

-19%

-10%

605g→475g
130g
reduction

470g→380g

390g→350g

90g
reduction

39g
reduction

Store

Molding

Kirin plant

WashingReborn as
a new beer bottle.

Used bottles collected
at the brewery.

Gently yetthoroughly cleaned.

Melting
Broken downbottles are melted.

Bottles that pass theinspection are filledwith beer and reusedfor products.

Rinsing
Carefully rinsed
in warm andcold water.

13.8g

33% reduction

GHG reduction eﬀect of lighter medium-size bottles

about

930t

reductionof GHG*Product photos are as of the end of April 2024 or at the time of the event.

1.5 mmless thanprevious
bottles*Calculated on
Previous Lightest inassumption ofJapan
10 million bottles a year

Previous

Lightest inJapan

Culletproduction

Inspection

Cullet istransported to glass
bottle factories

Bottles that do notpass the inspection are
broken down into
raw materials forglass bottles.

Strictly checked forsmall marks andfine cracks.

Holistic Analysis of Risks
and Opportunities

We applied aceramics coating
technology

Glassfactory

Containers
and Packaging

Theweight of
the cans

69.8

2011
2016
204Diameter 204Diameter

500mL bottle

Activity

Diameterandweight of
the lid

1973
1985
1994
209Diameter 206Diameter 204Diameter

633mL bottle

・ TNFD
TCFD

Lightest returnable glass bottles in Japan

Environmental
Strategy

Reducing the weight of aluminum cans

Message fromTop Management

Reusecommenced in November 2023.

Promotion of recycling in Australia and New Zealand

The Kirin Group promotes recycling of PET bottles as a member ofLion has established the “Sustainable Packaging Strategy” towhich is bidding to be coordinator of the Tasmanian scheme

promote recycling. In order to promote this strategy, the company

expected to commence in 2024.

has established Lion's Sustainable Packaging Project Steering Group,

The majority of Container Deposit Schemes in Australia are

and has set the following goals. Lion is also promoting activities toexperiencing strong growth in returns of containers, particularly

achieve these targets, which are aligned with those of the Australianthose that have only been implemented in recent years. State

Packaging Covenant Organisation (APCO).

governments of the older schemes, such as South Australia (the best

the Council for PET Bottle Recycling in Japan. Under the council’s
Fourth Voluntary Action Plan (FY2021-FY2025), members of thecouncil are working toward a target recycling rate of at least
85% (base year: FY2004). In 2022, the recycling rate was 86.9%,
achieving the target.In October 2022, Kirin Beverage introduced new

performing scheme in Australia) and Northern Territory, are currently

recycling boxes, specially designed by soft drink industry to prevent
other objects than PET bottles, next to vending machines, in orderto reduce contamination by foreign substances. We had installed
1,000 boxes by the end of 2022. We will continue cooperating with
the industry to promote bottle-to-bottle recycling activities.

●Increasing recycled content to at least 50% by 2025.
●100% of Lions packaging material to be reusable, recyclable,or compostable by 2025

looking at legislative changes to modernize their schemes andfurther increase rates of return, including increased automation andtechnology, streamlining of scheme governance and management,
and broadening the scope of containers subject to the scheme.

●A commitment to zero avoidable waste to landfill by 2025

Lion is working closely with all scheme entities and relevant● Promoting activities to achieve these targets, which aregovernments to look at additional initiatives and policy developmentaligned with those of the Australian Packaging Covenant
Organisation (APCO).

to further drive growth in return, particularly in sectors such ascommercial (such as hospitality) and industrial, public place, andhigh rise buildings.

・ TNFD
TCFD

New recycling boxes and stickers to raise awarenessLion is also a member of the not-for-profit entity TasRecycle Limited,

Environmental
Strategy

Recycling of PET bottles

Message fromTop Management

RecycleAs glass accounts for the highest proportion of Lion's material

55

recycled content of glass bottles.
Australia has container deposit schemes in seven of its eight states

Recycling of glass bottles
We turn old returnable glass beer bottles and one-way glass
new glass bottles. In particular, we are pursuing uses for cullet
made from colored glass, which cannot easily be reused for glass
bottles. We are expanding potential ways to recycle this material
for other applications, including building materials and road paving
materials.

The Kirin Group is pursuing the use of aluminum cans that use
a high rate of recycled metal. We have also joined the Japan
Aluminum Can Recycling Association, and we provide assistancefor the collection of used aluminum cans. Through such measures,
we are promoting the recycling of empty cans. Can manufacturers
recycle aluminum cans discarded at breweries and reuse 100% ofthem as aluminum cans for beer.

Lion plays an important role in Australia’s Container Deposit
Schemes, and is involved in the management or coordination of
every scheme in operation.
Our involvement dates back nearly fifty years in South Australia,
where Lion holds a majority of shares in Marine Stores Pty Ltd, acollection coordinator that aggregates collected materials for reuse
and recycling across South Australia and Northern Territory.
In Queensland and Western Australia, Lion participates in theadministration and operation of Container Deposit Schemes as amember of the not-for-profit Container Exchange (QLD) Limited andWA Return Recycle Renew Limited (WARRRL) entities, which were
established and appointed as Producer Responsibility Organisations
to coordinate those schemes.
In New South Wales and Australian Capital Territory, Lion
participates in Exchange for Change (EfC), a joint venture thatcoordinates the two schemes.
In Victoria, Lion participates as a member of not-for-profit entity
VicReturn Limited, the coordinator of the Victorian scheme, which

Holistic Analysis of Risks
and Opportunities

Recycling of aluminum cansand territories, with Tasmania to commence a scheme in 2024.

Containers
and Packaging

bottles into cullet, for use primarily as the raw material for making

Activity

inputs, Lion is working closely with its supplier to increase theChange in weight of PET bottles(Kirin Alkali Ion Water 2L PET bottle)

Can lighter transition

Progress in weight reduction of cartons and 6-can packs

-17%

35g
-18%

70

42g

60

Introduction start in 2015

35g

-2%

Introduction start in 2010

50
40

28.9g

-33%

63g

30
20

28.9g

15

2010

2015

2020

1990

1995

Introduction start in 2006

20

Introduction start in 2016

-5%

15.2g

2000

10

14.6g
2005

2010

13.8g

−7.7g

Introduction start in 2004

−22.2g30

Introduction start in 2015−26.2g2020

PET bottles: Trends in the use of recycled PET resin (Japan)

2020

2015

Introduction start in 2015

Activity

2005

−4g

・ TNFD
TCFD

2000

18.6g

0

−1.6g

Introduction start in 199410

Introduction start in 2009

(g)

14.6g

Introduction start in 2011

5

10
1995

20

-18%

Introduction start in 2003

1990

15.2g

28.3g

Introduction start in 2019

42g

-4%

(g)

Carton(350ml Loose)Environmental
Strategy(g)

6-can packs(350ml)

350ml Aluminum cans

2L PET bottle

Message fromTop Management

Key data related to Containers and Packaging

1990

1995

2000

2005

2010

2015

56
Returnable beer bottles lighter transition
Large bottle
(g)
650

550

-19%

475g

470g

380g

Test introduced in 2014 The total
amount of switching in 10 years

Introduction start in 1993
All introducted in 2003

Sale

Small bottle

Collection(million bottles)

(%)

(%)

300

120

40

100

107

98

98

400

All introducted in 1999

80

351g

182.6
182.3

107.3
114.6

104.8

89.5
88.1

102.6

1995

2000

2005

2010

2015

2020

60

131.9

126.8

20
0

2019

2020

2021

2022

28

30
20

40

0
1990

100

2023

10

1.9

1.5

2019

2020

4.9

8.3

0
2021

2022

We provide the latest updates on our initiatives related tocontainers and packaging on the following website.
https://www.kirinholdings.com/en/impact/env/3_3a/2023

Holistic Analysis of Risks
and Opportunities

350

100

-10%

390g

96.2

200

500
450

Collection rate

Containers
and Packaging

600

Medium bottle

-21%

605g

Kirin Brewery trends in sale and collection of returnable glass bottles

����

Climate Change

����

����
����

Background
The Kirin Group was one of two companies that represented Japan when we presented ourenvironmental measures to the world at the third session of the Conference of the Parties tothe United Nations Framework Convention on Climate Change in Kyoto in 1997. The Kirin
Group has long been working to reduce GHG emissions. The group set an ambitious target of“reducing GHG emissions across the entire value chain by half from the 1990 level by 2050”
in 2009. The group recognizes impacts of climate change on natural capital, such as
agricultural raw materials and water, by applying scenario analysis based on the TCFD
recommendations. The group sets science-based targets for the reduction of greenhousegas emissions, and declares its aim to switch to 100% renewable energy for electric power
used by 2040, and commits Net-Zero GHG emissions by 2050. In order to lead the way increating a decarbonized society, we have been focusing on the processes involved in theseeﬀorts. We will steadily implement integrated initiatives to reduce GHG emissions, withrespect for natural capital and while promoting containers and packaging initiatives.
57

We will create together ahead 2050

A society that has overcome climate change
Realize Net-Zero GHG emissions acrossthe entire value chain
Raw materials P.59
and Containers P.59
and packaging P.62

Tea farms
Transportation in large bags
Lightweight containers andpackaging

Production

P.61
P.61
P.61

Heat pumps
Fuel conversion
Improving the eﬃciency ofrefrigeration systems

Distribution

P.63
P.63
P.63
P.63

Modal shift
Joint delivery
Improving loading eﬃciency
Vendor-managed warehouse

Sale

P.64
P.64

Vending machines
Carbon zero certiﬁed beer

Supply chain

P.65

Cooperation
with business partners

Lead to builda decarbonized society

����

����
����

����
����
����
����
����

����

A decarbonized P.59
society
P.60
P.60

100% renewable energy
for all electric
power purchased
Solar power
Wind power

Began installing biogas boilers at breweries.
Began introducing biogas cogeneration facilities at breweries.

Began converting fuel used at breweries from heavy oil to city gas.
Kirin Beverage was selected as an “Eco-Rail” mark-certiﬁed company. Kirin Brewery sponsored a “wind power
generation project” in Yokohama City. Began introducing heat pumps for Kirin Beverage vending machines.
Completed fuel conversion at Kirin Brewery.
Announced Action Plans for Becoming a Low-Carbon Corporate Group, and declared aim to halve GHG
emissions by 2050 compared with 1990.
Obtained approval for “SBT for 2°C” target.
Introduced a heat pump at Kirin Breweryʼs Okayama Plant.

Declared our aim to achieve Net-Zero emissions by 2050 in the “Kirin Groupʼs Environmental Vision 2050.” Joined
RE100 and declared our aim of using renewable energy for 100% of electric power by 2040. Acquired approval
for science-based 1.5℃ target. Lion acquired certiﬁcation as Australiaʼs ﬁrst major carbon neutral brewer.
Moved to renewable energy for 100% of electric power purchased at Kirin Brewery's Nagoya and Sendai Plants.
Began utilizing electric power from large-scale solar power generation thanks to the introduction of a PPA
model at four domestic plants. Began using heat pumps on the production lines of Shinshu Beverage.
Acquired Net-Zero target certiﬁcation by SBTi as the ﬁrst case in food & beverage industry in the world.
Switched purchased electricity to 100% renewable at Kirin Breweryʼs Sendai and Nagoya Plants, Château
Mercianʼs all wineries, and Lionʼs all business sites in Australia and New Zealand.
Lion launched carbon zero beer “Steinlager” and the carbon-neutral alcohol-free beer “XXXX Zero”.
Mercian Fujisawa Plant and Kyowa Kirin Ube Plant introduced large-scale photovoltaic system.

Kirin Brewery switched its purchased electricity at all sales andproduction sites to 100% renewable.
Kirin group launched the Kirin Supply Chain Environmental Program.

Main Activities● Our long-term target to achieve Net-Zero GHG emissions across the entire value chain
by 2050 certiﬁed as a science-based Net-Zero target (July 2022: the ﬁrst case in foodand beverage industry in the world) Obtained approval for the science-based 1.5℃
target (2020)

TargetReduction in GHG emissions
2050 Net-Zero (Environment Vision 2050)

2024 Scope 1 + 2 down 23% (compared with 2019) (non-ﬁnancial target)

Total emissions for Scope 1 and Scope 2●Achieved 100% renewable energy in purchased electricity at Kirin Breweryʼs all
production and sales sites (two plants in 2022, three plants in 2023, and four plants
and all sales sites in 2024), Kyowa Kirin Takasaki Plant, Ube Plant, research laboratories,
etc., and Lion's plants in Australia and New Zealand (2023).

Scope 3 emissions
Target-50%● Introduced large-scale photovoltaic system to nine Kirin Brewery plants (~2023,
including eight breweries and plants with PPA model purchasing), Mercian Fujisawa
Plant (2023), Kyowa Kirin Ube Plant (2023), Kyowa Hakko Bio Hofu Plant (2024), and Lion
Castlemaine Perkins (2019)

TargetTargetNet-Zero

Net-Zero・ TNFD
TCFD-30%

TargetEnvironmental
Strategy●Joined RE100 (2020) and set a target for renewable electricity use: 100% by 2040.
Participated in Policy Working Group of RE100, and sent, as the working group, a policy
proposals, e.g. expansion of renewable electricity infrastructure, to Japanese
Government, aiming to achieve the 1.5℃ target.

2030 Scope 1 + 2 down 50% and Scope 3 down 30%(compared with 2019) (SBT for 1.5℃ target)

Message fromTop Management

Targets and Progress● Launched the Kirin Supply Chain Environmental Program (2024)

58
2030

2050

2019

2030

Activity

2019

2050

Total emissions for Scope 1 and Scope 2（2023）（ktCO2e）

Actual results
Scope 3 emissions（ktCO 2e）（ktCO 2e）

1,500

5,000

0

-31％

47

737 701 666

566

-30％

408

3,474

2019 2020 2021 2022 2023 2030

3,444
3,309

Target

2,633

1,000
0

543
146

2019 2020 2021 2022 2023 2030

*1 In December 2020, we upgraded our previous “SBT for 2℃” target,
and received approval for our “SBT for 1.5℃” target.

28

36

369

OceaniaSoutheast asia
Other

Pharmaceuticals Businesses

Total emissions for Scope 3（2023）

3,376

2,000

By region

Other Businesses(all companies included)

25

Target

Japan

-10%

3,000

-50％

Oceania Integrated
Beverages Business

133

1,142

553

By businessJapan Beer andSpirits Businesses
Japan Non-alcoholic
Beverages Businesses
Oceania Integrated
Beverages Business（ktCO2e）

28
288
360

Japan

By region

Other Businesses(all companies included)

Southeast asia
Other

Pharmaceuticals Businesses
991

Oceania

2,699

Holistic Analysis of Risks
and Opportunities

500

815

By business

67

4,000 3,762
1,000

193

ClimateChangeTotal emissions for Scope 1 and Scope 2

233

Japan Beer andSpirits Businesses
Japan Non-alcoholic
Beverages Businesses

Renewable energy
Switch purchased electricity for plants to 100% renewable

The Kirin Group contributes to Sri Lankan tea farms’ measures

In the past, we purchased empty PET bottles from container

Kirin Brewery has achieved 100% of renewable energy for purchased

for adapting to climate change through training programs for

manufacturers and shipped them to plants where we filled themelectricity at Sendai and Nagoya Breweries since 2022, Fukuoka

Rainforest Alliance Certification. Specifically ,Rainforest Alliancewith beverages. With in-line blow aseptic filling machines, weand Okayama Breweries since January 2023, Toride Brewery sinceand Kirin Holdings promote tea farms to plant cover crops, grasses

mold PET bottles from preforms, thick, compact, semi-processed

April 2023, and Hokkaido Chitose, Yokohama, Shiga, and Kobe

crawl on the ground, with deep roots on steep slopes. The coverbottle, in our production processes and fill them under aseptic

Breweries, as well as all sales sites, since January 2024. As a result,crops prevent runoff of soil from erosion by torrential rain and falls

conditions. This system reduces GHG emissions of empty bottle

Kirin Brewery has achieved 100% renewable energy for purchasedin tea leaf production volumes.

transportation since trucks can carry much more preforms thanelectricity at all production and sales sites, and the proportion of

empty molded PET bottles. In 2003, we installed preform molding

renewable energy in all electricity usage is 66%. We aim to achieveequipment to a beverage production line at Kirin Distillery, the first

RE100 target as soon as possible and replace all electricity used incase in Japanese beverage industry, reducing transportation loads

our global operation to renewable energy in the future.

of preforms.

Kyowa Kirin completed to switch purchased electricity to

At the Kirin Beverage Shonan Plant, in 2021, we switched ourrenewable of its manufacturing sites and research laboratories inhigh-pressure compressors for PET bottle molding from V-type

Japan. Kyowa Kirin expanded the initiative from Takasaki Plant, Bioreciprocating compressors to screw compressors and horizontally

Production Technology Laboratories, Fuji Research Park, and CMC

opposed reciprocating compressors with variable frequency

Research Center, in 2020, to Ube Plant in 2023. Through these

Before measures

After measures toprevent soil runoff

Cover crops

Importing wine in large bags
59

Mercian imports some of its wine via marine transportation indrives, thereby reducing annual power usage by around 8%. These

initiatives, Kyowa Kirin reduced CO2 emissions from its operation

machines enable us to recover waste heat from themselves and toby 55% by the end of 2023 compared with those of 2019.

reuse the heat to other processes.

Since January 2022, all “Château Mercian” wineries (Château
Mercian Katsunuma Winery, Château Mercian Mariko Winery,bottles) with low oxygen permeability and fills the wine intoand Château Mercian Kikyogahara Winery) have achieved 100%bottles in Japan. Compared to importing bottled wine, this method

renewable energy by applying renewable energy certificates with

reduces Mercian’s GHG emissions from marine transportation bypurchased electricity. At breweries in Australia and New Zealandroughly 60% by eliminating needs to transport heavy bottles byfor Lion, 100% of purchased electricity has been sourced fromsea. Bottling in Japan enables us to use Ecology Bottles (maderenewable energy since February 2023.

Activity

specially designed 24kl bags (equivalent to about 32,000 of 750ml

・ TNFD
TCFD

In-line blow aseptic filling machine

Environmental
Strategy

Measures in tea farms for adapting to climate change

Message fromTop Management

Raw materials

with at least 90% recycled glass), lightweight bottles, and PET
consumption and GHG emissions significantly throughout the value
chain.

Inverter-controlled
pneumatic machinery

ClimateChangebottles as containers. This production system reduces resource* The information and product images above are as of the end of June 2023.
Kirin Brewery Sendai Plant

Kirin Brewery Nagoya Plant

Kirin Brewery
Okayama Plant

Kirin Brewery
Toride Plant

MercianKatsunuma Winery

Mercian
Mariko Winery

Mercian
Kikyogahara Winery

Specially designed large bags

Holistic Analysis of Risks
and Opportunities

Kirin Brewery
Fukuoka Plant

Renewable energy

Kirin group values, in its renewable energy procurement,

Lion installed photovoltaic system to Castlemaine Perkins Brewery

Since 2021, Kyowa Hakko Bio has introduced “Renewable Energy“additionality,” which refers to creating new sources of renewablein 2019 and to Little Creatures Brewery in 2020.

Certificates (I-REC)” at Thai Kyowa Biotechnologies in Thailand.

energy in the world, as well as “ethical procurement,” which refers

Tooheys Brewery, the largest brewery in New South Wales,

This is the first case of I-REC application in pharmaceutical andto considering the environmental impact and human rights incollaborates with Australian Hotels Association (AHA), contracting

food industries in Thailand. The initiative has offset emissions fromgenerating energy.

PPA with a renewable energy distributor.

electricity and reduced annual GHG emissions by 20,249 tonnes.

Kirin Brewery has introduced large-scale photovoltaic system at all

By leveraging a buying power of Tooheys, AHA was able to

We have also introduced renewable energy certificates to Kyowa

nine plants (eight plants, excluding Yokohama Plant, use PPA model*1)

introduce renewable energy at a lower price, successfully reducing

Hakko Kirin China Pharmaceutical and BioKyowa (I-REC and REC,At Mercian Fujisawa Plant, we introduced photovoltaic electricity

the electricity unit cost for hotels’ pubs from 11.5c/kWh to 6.9c/

respectively).

based on PPA model from March 2023. This initiative will reduce

kWh.

annual GHG emissions by approximately 124 tonnes, and increase

In 2020, Lion became Australia’s first large scale carbon neutral

the proportion of renewable energy in electric power usedbrewer, certified by Climate Active*2. Lion discloses carbon credits

Wind power generation

by Mercian as a whole from approximately 5% at present toused to offset its emissions for a year in the annual report toapproximately 8%.

comply certification requirement by Climate Active. The requirement

Mitsubishi Corporation Offshore Wind Ltd., Venti Japan Inc., C-Tech

At Kyowa Kirin, we have introduced large-scale photovoltaic system

is a new standard for carbon neutral certification in Australia.

(1.47MW) based on PPA model at Ube Plant in 2023. This initiativeIn New Zealand, Lion has obtained Toitū*3 carbon zero certification

reduced annual CO2 emissions by approximately 1,029 tonnes.

since 2021.

Kirin Group Logistics, Kyowa Hakko Bio, and Shinshu Beverage
60

Corporation, and Mitsubishi Corporation have been selected as
power generation business operators for projects off the coastof Noshiro City, Mitane Town, and Oga City in Akita Prefecture,
off the coast of Yurihonjo City in Akita Prefecture, and off thecoast of Choshi City in Chiba Prefecture, through a consortium

have leased parts of their land and building roofs to photovoltaic

・ TNFD
TCFD

Renewable energy certificates

Environmental
Strategy

Use of solar power in Australia

Message fromTop Management

Use of large-scale solar power generation(the “Consortium”) represented by Mitsubishi Corporation Energy
Solutions, Ltd.

assets and expansion of renewable energy.

Kirin Holdings is a partner in the Consortium. These projects are
Japan's first fixed-bottom offshore wind power generation projects
in general sea areas. Both projects will be the largest power

Activity

generation businesses, contributing to both effective use of theirsources in Japan and will make a significant contribution to theJapanese government's commitment to achieve carbon neutrality
by 2050. The maximum power output of the three projects will

Mercian Fujisawa Plant* 1 PPA stands for the “Power Purchase Agreement” model and refers to anagreement between a business that sells electricity to users (PPA provider)and the users of electric power. At Kirin Brewery, MCKB Energy Service Co.,
Ltd., a subsidiary of Mitsubishi Corporation Energy Solutions Ltd., acts as a
PPA provider, installing megawatt-class solar power generation facilities on
the roofs of breweries, while Kirin Brewery purchases and uses the power
generated.

electric power demand of approximately 1.21 million households.

Lion's Little Creatures Geelong*2 A third-party certification body established by the government of Australia*3 A third-party certification body established by the government of New ZealandHolistic Analysis of Risks
and Opportunities

Kirin Brewery Shiga Brewery Plant

be approximately 1.69 million kW, which is sufficient to meet the

Kirin Brewery
Toride Brewery Plant

ClimateChangeKirin Brewery
Hokkaido Chitose Plant

Improving the efficiency of refrigeration systems

Use of heat pumps in production processes
we introduced heat pump systems at the wastewater treatment

At Kirin Brewery, we reduce energy consumption through improving

amount of energy consumption. At the same time, we believe thatfacilities of six Kirin Brewery plants, thereby reducing GHG

the efficiency of refrigerating systems. We are introducing a

reducing dependency on fossil fuel combustion in production sites,

emissions by 3% (approximately 4,800 tonnes) from the previous

cascade refrigeration system, which cools cooling media in multi-

and increase that on electricity, and, furthermore, using renewable

year across Kirin Brewery as a whole (as of November 2023). At

steps, a methodology to maximize energy efficiency of refrigerators.

electricity are the most effective ways of reducing GHG emissions.

Shinshu Beverage, we reuse waste heat, which is difficult to use

Kirin Brewery has successfully reduced its GHG emissions bydirectly in rinsing processes for bottles and caps, through a heatapproximately 70% over the 25 years from 1990 to 2015. In 2019,

pump unit, enabling us to reduce GHG emissions by approximately
970 tonnes per year. The Kirin Brewery Okayama Plant has reduced
annual GHG emissions by approximately 180 tonnes by reusing

Heat pump system

waste heat and using thermal energy of atmosphere to a hot waterElectricity as the energy source

Utilize for theheating process: Heat energy: Electrical energy(converted to heat energy): Heat energy

High-pressure fluid

Cold water
Cold heat load

Fuel conversion
The majority of the fuel we use at breweries are consumed inboilers that generate steam. At all plants of Kirin Brewery and Kirin
Beverage, we completely converted the fuel to natural gas, which
generates less GHG emissions than heavy oil. We have achieved
more efficient boiler operations through installation of highly
efficient gas boilers. To meet part of the plant's heat and electricity

Refrigerating machinefor cold water● Brine line
Brine
Cold heat load

Brine Lowtemperaturetank

Brine Hightemperaturetank

Refrigeratingmachine for brine

heat and electricity.

25℃ to 75℃
Preheater

Cold water
Cold water
Low-temperature High-temperature
tank
tank

needs, cogeneration systems have been installed to provide both

Shinshu Beverage production line
Raw water● Cold water production line

Activity

Low-temperature,
low-pressure fluid

Solid line:Brine line
Dotted line: cold water line

・ TNFD
TCFD

Can use a greater
amount of energy than
the amount ofenergy consumed

High temperature

Low temperature

Collection of discharged heat(exhaust heat from production
processes and ambient air heat)61

Before upgrading the refrigerating machinesterilization process for cans.

High-temperature,high-pressure gas

Middle‐pressure gas

Improving the efficiency of refrigeration systems

Environmental
Strategy

The Kirin Group must improve energy efficiency and reduce the

Message fromTop Management

Production

Lion is planning to install an electric boiler at a brewery in New
Rinse water UHT

Outlet60℃

Zealand, which will begin operation in late 2025. It will save
approximately 700 t-CO2 -e per year (6% of Lion Scope 1 and 2
emissions in New Zealand) by replacing the current LPG fuel.

Cold heat load forcold water production

Filling outlet

Cold heat load for
low temperature

Reuse of rinse water

Brine heat storage tank

Reduction of GHG emissions andcost savings by heat pumps

Refrigerating machine forlow temperature

Total
CO2 reduction

6,884 t-CO2/year

Cost reduction

166,473,000 yen/year

Refrigerating machinefor high temperature

Cogeneration

Holistic Analysis of Risks
and Opportunities

DrainageHeat pump

Cold water
Cold heat load

ClimateChangeBottle sterilizer

Cap sterilizer

After upgrading the refigeraring machineReduction of GHG emissions during transportation by
reducing containers and packaging weight
Making containers and packaging lighter leads to reducing GHG

Annual CO2 emissions
when producing labels

Annual CO2 emissions fromrecycled PET bottles and nolabel products

Approximately

Approximately

reduction

reduction

Message fromTop Management

Containers and Packaging

emissions from production and transportation of the containers
emissions from containers and packaging by a total of 5.3million

700t

tonnes*1 by reducing the weight of containers and packaging
between 1990 and 2021.
*1 Calculated based on the Carbon Footprint Product Category Rule (Certified
CFP-PCR Number: PA-BV-02) applied to the actual containers and packaging
usage of Kirin Brewery and Kirin Beverage from 1990 to 2021.

Shrink labels

1,300tEnvironmental
Strategy

and packaging. Kirin Brewery and Kirin Beverage reduced GHG

Roll labels

・ TNFD
TCFD*Product photographs are current as of June 2023 or the time that events occurred.

62

Activity
ClimateChangeHolistic Analysis of Risks
and Opportunities

We are promoting joint deliveries and modal shifts

Vendor-managed warehouse
The use of vendor-managed warehouse can reduce long-annually reduce GHG emissions by approximately 2,700 tonnes.

distance transportation. As a result, GHG emissions are reduced,

the same industry.

In September 2017, we began joint delivery with Asahi Breweries,

contributing to more sustainable supply chain.

In 2017, Kirin Brewery and Asahi Breweries opened a joint delivery

Suntory, and Sapporo Breweries in the eastern Hokkaido area. We

With the aim of mitigating the risk of not being able to transport

center in Kanazawa City, Ishikawa Prefecture, and launched joint

estimate that the Hokkaido case results in a reduction in annual

due to an unavailability of trucks and optimizing transportation

train transportation from plants in western area of Japan. Neither

GHG emissions of approximately 330 tonnes. *1

efficiency, we started a trial operation of raw materials procurementof the companies has plants on the coastal side of Japan Sea,

Kyowa Kirin also applies joint deliveries and its Ube Plant utilize

and distribution system using raw materials warehouses (vendor-

so products previously had to be transported by truck over longrailway container transportation for raw material logistics.

managed warehouses) close to Kirin Beverage’s plants, Shonan

distances—of 200 km—from their plants on the Pacific Ocean side.

The Kirin Group is actively pursuing modal shifts of switching fromPlant and Shiga Plant, in October 2019. By establishing vendor-

This logistic was inefficient and heavy burdens for truck drivers.

truck transport to rail and ocean transport, which has lower GHG

managed warehouses, raw material and ingredient suppliers can

Joint transportation using train containers not only reduced

emissions, for long-distance shipments (400 to 500 km or more).

transport desired amount of raw ingredients with ther convenientsignificant GHG emissions but also shortened driving distances

In April 2024, KIRIN GROUP LOGISTICS, Japan Freight Railway, andschedules, thereby maximizing efficiency. This initiative has made itof trucks, significantly reducing burdens of drivers. Thus, the

NIPPON EXPRESS implemented modal shifts for the Kirin Group's

easier for plants to cope with sudden changes in production plans

joint delivery contributes to solve capacity shortages of logistic

products equivalent to approximately 84,000 t-CO2 (7,000 10 ton

and contributed greatly to improving production flexibility.

industry, one of the biggest issues in Japanese society. Throughtrucks, equivalent to approximately 17,000 five-ton containers)

these efforts, we have successfully completed modal shifts fromper year. This initiative is expected to reduce annual emissions bylong distance truck transportation, equivalent to 10,000 vehicles

approximately 3,130 t-CO2.

63

Vendor-managed warehouse

Joint delivery from Pacific Ocean side to Japan Sea side

250km

Transport as much as
suppliers can deliver
when they canTransport different raw ingredientsin one shipment as needed
when needed by plants

Ishikawa

Vendormanaged

Toyamawarehouse

Raw ingredients
supplier’s plants
and warehouses

Kirin’s
manufacturing
plantsHolistic Analysis of Risks
and Opportunities

Competitor’splant
about 10km
KansaiRailwaytransport

Shipping by eachcompany

ClimateChangeabout 45km

Kanazawa Freight Terminal

Kobe plant

Suita Freight Terminal

Kirin’s plant

Activity*1 Contribution to Avoided Emissions through the Global Value Chain, Fifth
Edition, Keidanren (Japan Business Foundation)

・ TNFDTCFD

a year, to railway containers, and we estimate that we can thus

is actively engaging in initiatives together with other companies inEnvironmental
Strategy

The Kirin Group regards logistics as a noncompetitive sector andMessage fromTop Management

Logistics

Introducing “heat pump-type vending machines” as apioneer of an industry and expanding the use of green
power vending machines
Kirin Beverage is the first in the industry to introduce heat pump-type
vending machines for cans and PET bottles are of this type. As of
March 2024, we have switched more than 90% of installed vending
machines to this type.
Heat pump-type vending machines pump up waste heat generated
from cooling functions and use the heat to warm up the products.
This system reduces electricity consumption compared toconventional vending machines.
source not only by recovering waste heat released by the cooling
function but also by capturing heat from outside the machine andwith improved insulation performance by effective use of vacuum
insulation materials. These vending machines have evolved to the64

point where electricity consumption can be reduced by about 40%
we are aiming for approximately 90% of the newcertification as a carbon zero beer under the Toitu program by abody of the New Zealand government. In 2021, we featured the
Toitu carbon zero mark in our marketing campaigns to highlightto consumers the commitment Lion has made to reducing GHG
emissions through Steinlager and other products.
In May 2022, Lion began selling “XXXX Zero,” Australia’s firstcarbon neutral and alcohol-free beer. XXXX Zero has obtainedcarbon neutral certification in the form of Climate Active
certification.
In Australia, Lion is preparing to acquire carbon neutral certification
through Climate Active for many key products. In order to obtaincertification, Lion is working to comply with the requirement thatit must offset all GHG emissions from the complete life cycle of the
product, including emissions from raw materials and packaging,
In 2020, New Belgium Brewing launched FAT TIRE ALE, the firstcarbon neutral beer in the United States. The carbon credits being
purchased and amortized also contribute to economic support for
New Belgium Brewery has created a beer called TORCHED EARTH

Since January 2024, we have been expanding the

ALE to show consumers what the future of beer might look likeuse of green power vending machines to reduce

if climate change progresses. By showing consumers the taste of

Scope 3 emissions. This is an initiative to achievebeer made from ingredients likely to be available in a future where

net-zero GHG emissions by obtaining renewableclimate change has progressed, the company is drawing attentionenergy certificates equivalent to the annualmachine operation.
Heat pump function

Trend in power consumption

Ordinary vending machinesheatexchangeheat
exchange

Power consumption(kWh/year)

Major reductions

1,500 1,452

Power consumption

Improveefficiency
by simultaneous
operation

Heating
chamberHeat
dissipation

heat
exchange

Cold Hot

Cooling
chamberEndothermHeatdissipation

Endotherm
heat
Heat
dissipation exchange

Heating
chamber

940

1,000

2007-2015
Comparison among
25-selection type(Kirin survey)

690
500

540

Compressor
0

2007

2010

2013

2015

POWERED
BY 60%
RENEWABLE
ELECTRICITYINVESTING IN
SUPPLY CHAINSUSTAINABILITY

MADE IN
ZERO-WASTE
FACILITY

BREWED BY
A CERTIFIEDB CORPORATION

Holistic Analysis of Risks
and Opportunities

Cooling
chamberHeat pump-style vending machines*Carbon neutral beer
is referred to as"carbon zero beer" tomatch the name on
the certification.

CARBONNEUTRAL
CERTIFIED$19 MILLIONDONATED

ClimateChangeto the importance of carbon-neutral products.

electricity consumption required for vending

LIGHTWEIGHTED
PACKAGING

distribution and product waste.

converting farmers to regenerative agriculture.

machines we install in 2024 to be new models.

Product photographs are
as of the time that eventsoccurred.

Activity

compared to 2013. Installation of the new models began in 2015, andSteinlager, which Lion sells in New Zealand, has obtained

・ TNFD
TCFD

Some models offer higher energy-saving performance with heat

Carbon neutral beer

Environmental
Strategy

vending machines in 2006, and from 2012, almost all newly installed

Message fromTop Management

SaleCooperation with business partners
Of the categories in the “Scope 3 Standard” of the GHG Protocol,

Message fromTop Management

Supply chain

we will focus our efforts on Category 1 (purchased goods andservices), which accounts for about 60% of the Kirin Group's Scopeand distribution) and Category 9 (downstream transportationand distribution), which account for the next largest shares ofemissions. In this way, we work to reduce emissions across value
chain while prioritizing engagement and collaboration, through the“encouragement of reduction at business partners,” as well as theEnvironmental
Strategy

3 emissions, followed by Category 4 (upstream transportation“reduction by our controllable measures.”
We have requested that all suppliers comply with the Kirin Groupclimate change. Furthermore, in April 2024, we launched theSupply Chain Environmental Program. Through these efforts, wewill strengthen cooperation with suppliers that have large GHG
emissions, and promote activities in three main areas: mutual

・ TNFD
TCFD

Sustainable Supplier Code, which includes measures to address

disclosure of actual GHG emissions data, target-setting requests
65

and support for reducing GHG emissions in line with SBT levels,
efforts to contribute to a reduction of 10%, or one-third of our
medium-term target to "reduce overall GHG Scope 3 emissions by

Activity

and cooperative efforts to reduce GHG emissions. We expect these

30% from 2019 levels by 2030."
Lion is a member of the Australian Climate Leaders Coalition, agroup of CEOs of Australian companies.
For various reasons, it is difficult for suppliers, retailers, and other
their GHG emissions to each other. In response to this issue, thecoalition adopted a system of pooling actual data to a third-

ClimateChangecompanies along their value chains to disclose actual data on

party without mutual disclosure among the companies, and thus
confirmed that the pooling system was able to identify Scope 3
emissions more accurately. These efforts started the conversation
reduce emissions, which will result in higher Scope 3 reduction
targets and contribute to highly effective actions. In addition, weare calculating the CFP per product and utilizing it to visualize GHG
reduction status and set targets throughout the supply chain.
The Australian Climate Leaders Coalition has published theseapproaches as part of the “Scope 3 Roadmap.”

Holistic Analysis of Risks
and Opportunities

on how stakeholders in the value chains could work together toValue chain greenhouse gas emissions（ktCO2e）

2019

2020

2021

2022

2023

Direct emissions from corporate activities(Scope 1 + Scope 2)

���

���

���

���

���

Scope 1
(Emissions from use of fuel)

���

���

���

���

���

Scope 2 (Emissions related
to purchase of power and steam)

���

���

���

���

���

5,000

�,���

�,���

�,���

�,���

�,���

4,000

Products and services purchased(Category 1)

�,���

�,���

�,���

�,���

�,���

3,000

Transportation and delivery (upstream)(Category 4)

���

���

���

���

���

2,000

Transportation and delivery (downstream)(Category 9)

���

���

���

���

���

1,000

Product use/disposal(Category 11, 12)

��

��

��

��

��

0

Other
(Category 2, 3, 5, 6, 7, 8, 10, 13, 14, 15)

���

���

���

���

���

�,���

�,���

�,���

�,���

�,���

Total

19

3,762

3,474

439
377
2019

3,309

3,444

348
353

380
357
2020

Scope22021

Scope3

3,376

304
361
2022

212
353
2023

Ratios of greenhouse gas emissions in value chain（2023）
3
18

32

Total

7

Total

396

171

1,134

360

146

Kirin Brewery

Lion (Oceania region*1)

Kyowa Kirin (Global)

Transport(upstream)

Manufacturing

Transport(downstream)

Use
Disposal

57%

11%

10%

6%

2%

Scope3Category 1

Scope3Category 4

Scope1+Scope2

Scope3Category 9

Scope3Category 11,12

Scope1
Scope2
Scope3*1 This region covers the Oceania region where Lion conducts
business activities.

Holistic Analysis of Risks
and Opportunities

1,300

Raw materials
containers

ClimateChange147

Scope1

6,000

Activity

GHG emissions by business（2023）（ktCO2e）(ktCO2e)・ TNFD
TCFD

Emissions from entire value chain(Scope 1 + Scope 2 + Scope 3)

Trend in value chain greenhouse gas emissions

Environmental
Strategy

Indirect emissions (Scope 3)

66

Message fromTop Management

Key data related to climate change

Kirin Group total direct emissions by business segment(Scope1 + 2)

direct emissions

intensity(ktCO2e)

1,000

0.5

1,000

0.4

800

0.42

0.40

0.38

0.33
0.26

600

0.2

400
200

815

2019

737

2020

701

2021

666

2022

566

2023

355

600
400

0.1

200

0

0

56

737

701

666

328

313

286
32
87
49
212
2022

44
52

232

224

41
84
49
214

2019

2020

2021

117

(ktCO2e)
5,000
4,000

815

56

90

566

3,000

233

2,000

25
67
47
193

1,000

2023

Japan Beer and Spirits Businesses
Japan Non-alcoholic Beverages Businesses
Oceania Integrated Beverages BusinessPharmaceuticals Businesses
Other Businesses (all companies included)

0

3,762
643
74
540

559
76
519

3,444
564
109
545

543
3,376
543
146
553

959

904

963

991

1,389

1,298

1,251

1,263

1,142

2019

2020

2021

2022

2023

1,115

3,474
614
61
542

3,309

・ TNFD
TCFD

0

0.3

1,200

intensity

800

Japan Beer and Spirits Businesses
Japan Non-alcoholic Beverages Businesses
Oceania Integrated Beverages BusinessPharmaceuticals Businesses
Other Businesses (all companies included)

Environmental
Strategy(tCO2e/million yen)
0.6

direct emissions(ktCO2e)
1,200

Kirin Group total Scope 3 emissions by business segment

Message fromTop Management

Total direct emissions (Scope 1+2)
and intensity (emissions/sales revenue)

67

Kirin Brewery

Ratio of renewable energy to total electric power
used in the Kirin Group as a whole
MercianKirin Beverage（%）(ktCO2)
200

139

129

128

80

126

100

60

42

40
50

20

2018

2019

2020

2021

2022

0

6
2019

12
2020

17
2021

27

2022

2023

2040

We provide the latest updates on our initiatives related toclimate change on the following website.
https://www.kirinholdings.com/en/impact/env/3_1/

Holistic Analysis of Risks
and Opportunities

0

ClimateChange150

Target
100

100

155

Activity

CO2 emissions associated with domestictransportation

Overview of Holistic Analysis
68

of Environmental Management
Risks and Opportunities,
Business Impact, and Strategies

We plan to meet TNFD disclosure standards over a period ofbusiness impact, and analysis of related strategies, forapproximately five years.

each category for which disclosure is required by the TCFD

The following is a rough overview of our schedule starting in 2022.

Message fromTop Management

In this section, we list and disclose risks and opportunities,

recommendations (June 2018), new TCFD guidance (October2021), v1.0 of the TNFD recommendations (September 2023), and2022

There are many areas where climate change and natural capitalcannot be assessed separately because they are interrelated,

Trial scenario analysis at New Belgium Brewery, US, with theparticipation of TNFD members

and we must therefore adopt integrated strategies to solve theseissues. Accordingly, we provide information concerning risks andopportunities, business impact, and strategies for categories

Assessment of the financial impact of natural capital
2023

common to both frameworks. We have also provided information

We assume that readers will refer to the information in this part asa single whole together with the information disclosed in “Holistic

69

2024

Holistic risk and opportunity assessment and determinationof priority regions in accordance with v1.0 of the TNFD
recommendations
Detailed assessment of priority regions

・ TNFD
TCFD

Trial of holistic disclosure with TCFD

deemed relevant.

the TCFD Framework, TNFD Framework Draft, etc.” →P.15〜P.40 .

Trial assessment of risks and opportunities related to natural
capitalDetailed analysis of tea farms in Sri Lanka

related to containers and packaging under categories that we have

Environmental Management Information Disclosure Based on

Became a global pioneer with disclosure compliant with
the LEAP approach advocated in beta v0.1 of the TNFD
Framework

Environmental
Strategy

other standards.

Holistic disclosure of natural capital, climate change, and thecircular economy

We also assume, however, that there are many occasions where
therefore reiterated the same tables, graphs, figures, etc., in bothparts as necessary.
2025

Revision of the “Action Plan for Sustainable Use of Biological
Resources” to reflect the results of the assessment of natural
capitalActivity

readers will only refer to this part independently, and we have

Conduct a detailed analysis of some material natural capital
identified
Review of the natural capital roadmap

2026

Completion of detailed analysis for identified material
agricultural products and priority regions
Establishment and start of execution of our natural capitalroadmap

Holistic Analysis of Risks
and Opportunities

Natural capital scenarios
Kirin Group Scenario 3
4℃ scenario. SSP3, RCP8.5

Kirin Group Scenario 1
2℃ or 1.5℃ Scenario. SSP1, RCP2.6● Laws and regulations related to climate change are● Governments around the world enact strict laws andScenario

products. Possible decline in quality. Increase inprocurement costs.
● Damage to agricultural production areas, production
stoppages, and delivery difficulties due to floods anddroughts caused by climate change.
●The increase in energy costs and agricultural prices
due to carbon taxes is minimal.
●There is major harm from infectious diseases andheatstroke due to global warming.

Analysis
results70

Impact●IPCC (2019) Climate Change and Land: an IPCC special report on climate change, desertification, landdegradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems
Chapter 5: Food Security and Risk of increased food insecurity under stringent global climate change
mitigation policy. Nature Climate Change,volume 8, pages 699-703 (Hasegawa T, Fujimori S, HavlíkP, Valin H,
BodirskyBL, DoelmanJC, FellmannT, Kyle Petal. 2018)●IEA “World Energy Outlook 2019” Annex A (rate of decline in future electric power emission factors), IEA WEO

2019 (Kirin Group Scenario 3: Current Policies Scenario, Group Scenario 1: SD Scenario, 1.5℃ Scenario: IPCC
Special Report on Global Warming of 1.5℃)●Agricultural production data: FAO average over the past

five years, emissions models based on PCC guidelines, andglobal warming factors applied to IPCC GWP100● Paper: CFP data from the Japan Paper Association

Land use
footprintt): Calculation of acreage per unit yield (ha/t) using 2022
data in FAO FAOSTAT● Paper: Calculated using data from papers related to global

forest product footprint estimation (because it is notincluded in FAOSTAT)● M. M. Mekonnen and A. Y. Hoekstra (2011) The green,

Scientificbasis

blue and grey water footprint of crops and derived crop
products Hydrol. Earth Syst. Sci., 15, 1577–1600

Water footprintby agricultural
product

If not included in this, the water footprint was identified inanother paper by Schyns et al.
●Joep F. Schyns, Martijn J. Booij, Arjen Y. Hoekstra (2017)

The water footprint of wood for lumber, pulp, paper, fueland firewood Advances in Water Resources Volume 107,
September 2017, Pages 490-501●Judged based on whether or not agricultural products areincluded in the SBTN's High Impact Commodity List

Commodity risk

●Judged based on whether or not they are included in the

Agricultural
products andwater risk by
region●Assessed by cross-referencing data on food production,

list of commodities covered by the European Regulation on
Deforestation Free Products (EUDR)

demand, trade, prices, and hunger in countries and regions
around the world from the WRI’s Aqueduct Food and theInternational Food Policy Research Institute (IFPRI)

Holistic Analysis of Risks
and Opportunities

Agricultural
products(impact of
global warming
on prices andcarbon taxes)

soybeans, palm oil, cartons, barley, cardboard boxes, andwine grapes●Area harvested (ha) per crop and production quantity:

RCP4.5 and RCP8.5, and socioeconomic scenarios SSP2 and SSP3), etc.

●AIR Touchstone version 8.2● Order of assessment: coffee beans, hops, tea leaves,(because it is not in the ClimateHub database)

Change,volume 8, pages 699–703（Hasegawa T, Fujimori S, HavlíkP, Valin H, BodirskyBL, DoelmanJC, FellmannT,
Kyle P et al. 2018）●Zebish et al (2005) “Climate Change in Germany Vulnerability and Adaptation of climate sensitive Sectors” FAO“Food and agriculture projections to 2050” etc.
●Aqueduct 3.0 (current risk), Aqueduct 2015 (risk assessment combining future projections, climate scenarios

palm oil, hops, barley, wine grapes, and coffee beans

Activitydegradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems
Chapter 5: Food Security● Order of assessment: tea, cardboard, soybeans, cartons,● Carbon footprint: CarbonCloud | ClimateHub database● Risk of increased food insecurity under stringent global climate change mitigation policy. Nature Climate

Flood risk

EnergyScope ofanalysisprocurement costs is minimal.
●The impact of floods and droughts caused by climatechange on agricultural production areas, production,and delivery is minimal.
●The impact of energy costs and agricultural prices
due to carbon taxes is major.
●The impact of infectious diseases and heatstroke
due to global warming continues.

964–973（ Xie, et al. ）Drought risk

Dependence●The impact on yields of agricultural products and●IPCC（2019）Climate Change and Land: an IPCC special report on climate change, desertification, land

Scientificbasis

Original scenario

GHG emissions
by agricultural
product● Decreases in global beer supply due to extreme drought and heat, Nature Plants, VOL.4, NOVEMBER 2018,

Agricultural
products

Scenario・ TNFD
TCFD●Significant decline in yields of major agricultural

regulations related to climate change, resulting in a
sufficient reduction in GHG emissions.
●The rise in temperature is curbed, natural disasters
do not increase much more than current levels, andthe impact on agricultural yields is also limited.
Natural disasters do not change significantly fromcurrent levels.
●The financial impact on companies of compliancewith laws and regulations and energy usage is large,
but the cost of using natural capital is acceptable.
●The impact of global warming on health is minimal.

Environmental
Strategy

strict in developed countries, but insufficient globally,
resulting in failure to achieve the required reduction
in GHG emissions.
● Higher temperatures, droughts and heavy rains,
and reductions in daily temperature ranges leadto significant decreases in the yield and quality ofagricultural products. Natural disasters caused byclimate change also become frequent and severe.
●The financial impact on companies of compliancewith laws and regulations and energy usage is small,but it becomes difficult to use low-cost, high-quality
natural capital.
● Global warming also leads to an increase ininfectious diseases, heatstroke, etc.

Kirin Group Scenario 3
4℃ scenario. SSP3, RCP8.5

Message fromTop Management

Climate change scenarios￨ Physical risk ￨ Chronic risks
Climate change

Natural capital

Containers and packaging

1

Impact of climate change on yields of key agricultural products (forecast for 2050 unless otherwise specified)Kirin Group Scenario3: 4℃, unwanted world, 2050

Declining yields of agricultural products
and increase in procurement costs[medium to long term]

Agricultural products

America (North and South)

Hops

U.S. (Washington) -16% (2100)

Asia

Kenya Change in suitable land from 1500 to 2100
meters above sea level to 2000 to 2300
meters above sea level. Drastic reduction
in suitable land in the western part of
Kenya, with land remaining suitable in themountainous area of Kenya
Malawi Chitipa 80% reduction in suitable land
Nkhata Bay 60% reduction in suitable land
Mulanje 70% increase in suitable land
Thyolo 20% increase in suitable land

U.S. (California)
60% reduction in suitable land
U.S. (Northwest)
231% increase in suitable land
Chile
25% reduction in suitable land

Japan（Hokkaido）
Increase in suitable land,
Pinot Noir cultivation possible
Japan (Central)
Increase in suitable land while
also anticipating obstacles fromhigh temperatures

Northern Europe 99% increase in suitable land
Mediterranean 68% reduction in suitable land
Spain
Change in overall wine production
for each 1°C rise
-2.1% (Spain as a whole)-4.6% (Andalusia)-4.8% (Duero River Valley)-34.6.% (northern Mediterranean)

Coffee beans

Brazil 55% reduction in land suitable for arabica
60% reduction in land suitable for robusta

Southeast Asia 60% reduction in land suitable for arabica
52% reduction in land suitable for robusta

East Africa 13% reduction in land suitable for arabica
16% reduction in land suitable for robusta

Corn

U.S. (Southwest) -27%
U.S. (Midwestern Iowa) -5% to -12%
U.S. -46/5% (2100)
Brazil -19/4% (2100)
Argentine -28.5% (2100)

China-27.4%

Ukraine-40.6% (2100)

Soybeans

U.S.
-10% (2080)
Brazil
-20% (2080)
Argentine +40% or more

China +16% to +50% (2100)
India -80％

We assessed financial impacts caused by lower yields using
the 25-75 percentile range of the distribution of forecast dataof changes in prices. We forecast that procurement costs for
agricultural products would increase by approximately 1.3

Tea leaves

billion yen to 3.4 billion yen in 2050 under the 2℃ scenario,
and approximately 3.6 billion yen to 13.7 billion yen under the71

4℃ scenario (Graph: Impact of lower yields on procurement
costs for agricultural products in 2050). The price range of 2575 percentile under the 4℃ scenario was approximately 4 times
larger than that of the 2℃ scenario. The difference implies that
uncertainty and risks under the 4℃ scenario is higher than the
2℃ scenario. A British academic book* forecasts that European
hops’ yields will fall by 4-18% and the bitterness component(alpha acid) content will fall by 20-31% by 2050.
Additionally, we identified, in surveys related to water risk andwater stress, severe levels of drought risk and flood risk inareas producing agricultural raw materials. The risks may impact
agricultural products (Table 9 ).
We estimated the financial impact due to declines in agricultural
yields using data from 2023 for Kirin Brewery, Kirin Beverage,
Mercian, Lion (Oceania region only), Kyowa Kirin, and Kyowa
Hakko Bio, referring to academic papers. Our estimates covered
the following agricultural products: barley, hops, tea leaves,grape juice, starch, lactose, corn, and cassava.

Wine grapes

2

Czech Republic -8.5%

New Zealand
168% increase in suitable land
Australia (southern coast)
73% reduction in suitable land
Australia (ex. southern coast)
22% reduction in suitable land

Impact of lower yields on procurement costs for
agricultural products in 2050

(Millions of yen)
15,0000.64％

25th percentile
75th percentile

Natural capital

Containers and packaging

Change in the status of nature[medium to long term]
At tea farms in Sri Lanka, soil erosion and soil runoff have become
problems owing to factors such as heavy rainfall caused by climatechange and development in areas surrounding the farms due toeconomic growth. In addition, there is soil pollution caused by the useof agricultural chemicals and other problems, and these factors maychange ecosystems and reduce yields of agricultural raw materials.

6,000

Approximately
3.4 billion yen

3,000

0.16％

Approximately
Approximately
3.6 billion yen
1.3 billion yen
0.17％
0.06％

Current situation

2℃ scenario

4℃ scenario

Estimated for the main agricultural raw materials at Kirin Brewery,
Kirin Beverage, Mercian, Lion, Kyowa Kirin, and Kyowa Hakko Bio.
Figures inshow the percentage of revenue* Recalculated with 2023 data
*Climate-induced decline in the quality and quantity of European hops calls for immediate adaptation measures | Nature Communications
https://www.nature.com/articles/s41467-023-41474-5

Holistic Analysis of Risks
and Opportunities

12,000Approximately
13.7 billion yen

9,000

Climate change

Activity

Sri Lanka
Decline in yields in lowlands,
low impact in highlands
India (Assam region)
3.8% decline in yields per 1°
Cincrease above averagetemperature of 28°
C
India (Darjeeling region)-40% to -80%

Oceania
Western Australia-10 to -30%

・ TNFD
TCFD

Finland -5.9% (spring barley)
France -10% or more（Winter barley）-20% or more（Spring barley）
Mediterranean coast（West）-0.3%(Portugal, Spain, France, Italy)（East）＋4.4％
Germany -14％ to +18%

Yields of agricultural raw materials may decline significantly
owing to global warming and reductions in daily temperature
ranges caused by climate change.

Europe and Africa

West Asia-5% to +10%
Korea
＋0.5％

Environmental
Strategy

BarleyCanada-12% (2100)
U.S.
＋9％（2100）

Message fromTop Management

Details of physical risks

●Beer brewing technology that does not rely on barley (adaptation measures)the leading producer, but will rise in parts of China and India.
Although there will be some variation in yield depending on the variety,we expect yields of potatoes to rise in India and the US, and overall, we

Tigchelaaret et al., the probability of a simultaneous decline of at least

do not expect yields to fall.

Argentina) is 80% or more under the 4°C scenario (2075 to 2132), 10%
under the 2°C scenario (2042 to 2055), and 0% at present, indicating

Country

72

4℃ scenario
>10%
>20%

United States

68.6

29.5

100.0

96.9

China

46.2

16.8

98.8

89.2

Argentina

50.0

9.9

96.9

86.9

Ukraine

51.8

19.2

98.2

85.0

as a whole. We believe that it will be possible to respond to changes

the possibility of avoiding a decline in yields by limiting global warming(Table 3 ). We anticipate that yields of sugar cane, which can act as ain the yields of these agricultural products by diversifying production
areas, changing raw materials, and leveraging production technologies.

substitute for high-fructose corn syrup besides corn, will fall in Brazil,

4 Impacts of climate change on raw materials for high-fructose corn syrup and soybean yields (4°C scenario, 2050, unless otherwise noted)

Regional Harvest Forecasts
Agricultural Products

North America

SugarcaneーPotatoes

United States
No fertilizer effect Atlantic -20%～-27%
Russet Burbank +0～+5%
Fertilizer effective Atlantic 0～-5%
Russet Burbank +18%

to the current level due to climate change in the four largest corn exporters
2℃ scenario
>10%
>20%

As for soybeans, which are a raw material for Nodogoshi Nama , weforecast that yields will either rise or fall depending on the region, but
we have judged that there will be no significant change in global yields

10% in yields in the four major production areas (US, China, Brazil,

Soybeans

United States (Central)
No effect of fertilizer application -33.3% (2080)
Fertilizer application +4.4% (2080)

South America
Brazil
-9.6%～+1.4%

Asia
Pakistan+1.6%～+4.1%
China+22～+40%（2060）

・ TNFD
TCFD

3 Probability of simultaneous 10% or 20% decline in average yield comparedapproximately 24% by the end of this century (2069 to 2099) comparedwith the present (1983 to 2013) under the 4°C scenario (approximately
18% increase in wheat yields). In addition, according to a study byIndia+5.7%～+6.2%
China
Rainfed agriculture - Dabaihua +21.8% (2060)
Irrigated agriculture, Kexin-1 +20.9% (2060)

ー

Brazil-20%（2080）

China+50%（2080）
India-8.24%

Training for obtaining certification involves methods of reducing soil
runoff against torrential rain by planting undergrowth on farmland
and of using pesticides and fertilizers on white lists with adequate

the amounts of use.
In the future, we will promote regenerative agriculture in order tominimize environmental impacts while also working to restore the nature.

positive impact on the stability of agriculture through the cultivationof agricultural breeds suited to global warming.
The propagation technology uses “plastic bag-type culture vessel
technology,” which the Kirin Group has developed proprietarily.
The vessel technology enables us to significantly increase growth
rates of healthy seedlings with no diseases and seedlings that are
genetically identical to their parents (clones) by multiples of tens or
hundreds of thousands. We propagate plants by aerating a solution
containing nutrients necessary for plant growth inside a bag,enabling us to use water effectively and cultivate plants in areas
with high levels of water stress. In this way, we expect that we canreduce our impact on regional problems related to water.
The Kirin Central Research Institute has also developed atechnology for the mass production of hops, an ingredient in beer,
after successfully developing a globally pioneering approach forpromoting the formation of axillary buds for hops.

Activity●Support for farms to acquire certification for sustainable agriculture (adaptation measures)
We will continue to support the acquisition of sustainable farm
certification in order to secure production areas for agricultural
products that are resilient to climate change.

Environmental
Strategy

Nodogoshi Nama , which Kirin Brewery sells in Japan, is an alcoholic
beverage that tastes like beer and is brewed using soybeans. We
believe that the technical knowledge to achieve a beer-like flavor
without relying on barley will serve as an adaptation measure for apotential decline in barley yields due to climate change in the future.
We have also conducted surveys and analyses related to high-fructose
corn syrup and protein sources, which are required to brew low-malt
and no-malt beer products, not just Nodogoshi Nama , while referring tonumerous academic papers, and as a result (Table 4 ), we have judgedthat there are no major issues at present.
In 2021, an international research team, including Japan’s National
Institute for Environmental Studies and the National Agriculture andFood Research Organization (NARO), reported that average global
yields of corn, a raw material for high-fructose corn syrup, will fall by

Message fromTop Management

Response strategy●Mass plant propagation technologies (adaptation measures)●GHG emissions reduction (mitigation measures)
In order to minimize the risk of falling agricultural yields, we will
promote initiatives aimed at achieving Net-Zero emissions by 2050
and our science-based 1.5℃ target by 2030, in accordance withrenewable energy targets under RE100 by 2040.

More information→P.40

Holistic Analysis of Risks
and Opportunities

We will continue efforts to accumulate knowledge concerning
applications for “mass plant propagation technologies” developedby the Kirin Central Research Institute, to prepare for falling yields
of agricultural products as a result of climate change. We expect
the knowledge can be used if heat-tolerant agricultural breeds aredeveloped.
It would be difficult for the Kirin Group to transition to a businessmodel that is completely independent of barely and hops, but weanticipate that “mass plant propagation technologies” will have aClimate change

Response strategy
Natural capital

Containers and packaging●Building a society that recycles plastics
recycling to recycle PET products other than PET bottles and dirty

Improper disposal of used containers[medium to long term]

2019, Kirin Group is progressively increasing the ratio of recycled

PET bottles into high-quality PET bottles. Lion has also developed

PETresin used in its bottles to 50% by 2030 and to 100%a “Sustainable Packaging Strategy” to promote recycling in Australia

If used containers of our businesses are disposed into thesustainable container use by 2050. To ensure proper collection ofand New Zealand. In order to promote this strategy, Lion launched

used PET bottles, we are working with other companies and local

the "Lion's Sustainable Packaging Project Steering Group," andgovernments to improve the efficiency of sorting and collection.

is promoting activities in partnership with the APCO (Australian

At present, mechanical recycling is the mainstream, but we are also

Packaging Covenant Organisation) to achieve these goals.

environment without proper recycling, they may cause
damage to the natural environment and it is possible that
we will face penalties associated with such damage. If
we internalize externalities associated with ocean plastic
pollution, we estimate that it will amount to approximately 1.1
billion yen in the future. We multiplied the “impairment costpromoting the development of practical applications for chemical

Environmental
Strategy

In accordance with the “Plastic Policy” that we established in

Message fromTop Management

Details of physical risks

of marine ecosystem services per ton of marine plastic,” asdescribed in a paper by Beaumont et al., by the amount of
result, we calculated negative externalities caused by ocean
pollution from sales of the Kirin Group's PET bottle products.
In addition to the possible expenses described above,
the PET disposal may cause stricter recycling regulations,・ TNFD
TCFD

Kirin Beverage’s PET materials released into the ocean. As acriticism to use of plastics, and an decline in corporate
73

brand value if companies do not respond appropriately to

Activity

the plastic problems.

Holistic Analysis of Risks
and Opportunities

Details of physical risks
Climate change

Natural capital

Containers and packaging

5

Water stress *Disruption of operations owing to floods[short to long term]
Significant impacts, including disruptions to brewing andWater risks *Water pollution*

Japan

Water stress

Water risks

Water pollution

Vietnam(24 establishments)(2 establishments)

Environmental
Strategy

manufacturing, may occur as a result of damage from typhoons,heavy rainfall, and other disasters caused by climate change.

Manufacturing Site Water Risk/Stress

The Kirin Group has operated businesses in Japan and Australia,
two countries where the level of water stress differs significantly.
As such, we have developed an understanding rooted inexperience of the fact that problems related to water differ

Message fromTop Management￨ Physical risk ￨ Acute risk

America

New Zealand(7 establishments)(3 establishments)

between countries and regions, and that they largely dependon basins and specific locations. Since 2014, the Kirin Group has

74

Australia(9 establishments)

Degree of risk

Thailand* For water risk, water stress, and water pollution, we have referred to the following items,
using the latest Aqueduct 4.0 (WRI).
Water stress: Baseline Water Stress
Water risk: Physical Risks Quantity
Water pollution: Untreated connected wastewater
See →P.114 for the number of business sites.

(1 establishments)

6

Low

High

Water risk (Actual damages in past factory flooding events)

7

Country

Operating companies

Plant

Cost of damage*2

Sales ratio

Australia

Lion

Castlemain Perkins Brewery

Approx. 1 billion yen

0.05%

Japan

Kirin Brewery

Sendai Plant

Approx. 5 billion yen

0.27%*1 Japan Meteorological Agency: Observed facts and future projections of sea level, storm surge andhigh waves - from "Climate Change in Japan 2020".
https://www.mlit.go.jp/kowan/content/06.pdf*2 The amount for the Sendai Brewery is from tsunami and earthquake damage in the 2011 Great
East Japan Earthquake*3 Aggregate Exceedance Probability

Results of wind damage simulation

Recurrence
period (years)

Flood AEP(JPY)*3

1000

21,768,643,347

500

16,373,304,101

200

1,030,581,609

100

2,590,244

50

52,859Holistic Analysis of Risks
and Opportunities

increase in temperature in Japan, we think it is still difficult toform a quantitative assessment. Going forward, we will continue
paying close attention to the results of research.*1

China(3 establishments)

Activity

brewing and production sites using Aqueduct 4.0, hazard maps
created by local governments, and other resources (Figure 6:
Manufacturing Site Water Risk/Stress). As a result, we found thatwater stress and water risk have worsened at many businesssites. Floods and other forms of water risk are high at six plants
or breweries in Australia and two plants or breweries in the
U.S. Lion’s Castlemaine Perkins Brewery in Australia, which we
assessed as having a high level of water risk, has experienced
flooding due to very heavy rainfall twice in 10 years, despite
being in an area with high water stress. The Colorado River, usedby New Belgium Brewery, a craft brewery in Colorado, the U.S.,
spans five states and each state has agreed upon restrictions
on the use of water. In 2023, we held a scenario analysis
workshop together with TNFD members. At the workshop,
we confirmed that New Belgium Brewery is working with thecommunity to solve issues related to water.
Our management benchmark for the financial impact of flooding
on breweries and plants is approximately 1.0 billion yen to 5.0
billion yen, in line with the actual amounts of flood damage inthe past (Table 6 ).
We are also using wind and water damage simulation systems
to forecast losses from the risk of flooding. Our exposure to
general 200-year disasters (the total of 20 business sites
in Japan) is approximately 1.0 billion yen. There may be apossibility of flood damage at our business sites from a rise in
sea levels caused by global warming, but although there areforecasts for a rise in sea levels of 0.46 to 0.97 meters with a 4℃

・ TNFD
TCFD

been conducting regular scientific surveys.
In 2024, we conducted surveys and analyses of water risk at

●Sharing of knowledge on responses to floods (adaptation measures)
At breweries and plants in areas where, comparatively, there isimmediately after the flood alert, and as a result, we prevented

leeway in terms of time until flooding occurs, we will minimize

harm from short-circuiting to electrical equipment in the brewery,damage in ways such as shutting down power sources in advance.

and were able to reduce the amount of damage and quickly restart

When flooding occurred at Castlemaine Perkins Brewery in 2011,

operations. Similar countermeasures were effective against partial

there was some time between the flood alert and the actual

flooding at the Kirin Brewery Nagoya Brewery in 2000.

●Insurance for flooding (adaptation measures)

Kirin Brewery Nagoya Plant

We will consider insurance at business sites as an effective measure

would be equivalent to 42% of the value of its property. Accordingly,

against natural disasters, including floods.

in 2022, we conducted on-site surveys, and confirmed that the

In 2020, we used the natural disaster model AIR to simulate windamount of damage would be precisely equivalent to 17%. We also
conducted risk surveys at Thai Kyowa Biotechnologies, which isestimating loss percentages and amounts of damage for eachlocated in an area where flood and other water risks are expected,

recurrence period. For 200-year disasters (a disaster occurringin 2023 (Table 7 ).

once every 200 years), the total exposure across the Kirin Group

Going forward, we will continue gradually conducting on-site risk

was approximately 1.0 billion yen. At KYOWA PHARMA CHEMICAL,

surveys and assessing the possibility of insurance for businesshowever, we calculated that the annual amount of damage from asites that we have judged to be at high risk of future flood damage,wind and water disaster of a scale occurring once every 500 years

based on our wind and flood simulation system.

・ TNFD
TCFD

and water damage for our main 20 business sites in Japan, thereby

Environmental
Strategy

flooding. We shut down power sources in the brewery in advance

Message fromTop Management

Response strategy

75

assets related to production, waterproofing of buildings, moving
important facilities to high floors and locations, the installation ofcountermeasures as necessary at business sites where we must

flood walls, etc.). In the future, we intend to continue to address

fulfill our responsibility to supply customers without interruption.

these issues through investment in our facilities. We will assess

At Kyowa Kirin, we have judged that the amount of damages

and address the impact across the supply chain as a whole, andfrom recovery, production disruption, and business opportunity

take steps to avoid production disruptions and minimize damages.

losses would be considerable in the event that water damage,At the same time, there will be a significant impact on companies

etc., caused long-term disruptions to operations at Kyowa Kirin’s

commissioned to manufacture drug substances, packaging material

own pharmaceutical plants, commissioned manufacturers of drug

suppliers, etc., so we will gather information about water damage

substances, and packaging material suppliers.

countermeasures at each partner company, identify issues, andAt Kyowa Kirin’s own sites, we have formulated policies on

consider measures such the formulation of BCPs and disastercountermeasures against water damage, and have taken measures

response drills.

to prevent flooding (geographically distributed storage of important*1 We have assessed risk related to flooding in a multifaceted manner, using multiple systems. Aqueduct can be used to assess risks, not just at the present but
also including future forecasts. Aqueduct is the most widely used water risk assessment tool today, so one of its advantages is that it has a high potential forcomparisons, but we do not know all aspects of the grounds for its assessments in details, and in some aspects it does not fully reflect Japan’s complex water
systems. Hazard maps provide an assessment of the worst expected damage by local governments with a deep understanding of the area. We believe that whenhazard maps and Aqueduct are used together, it enables more accurate risk assessments. With simulation systems, it is possible to estimate loss percentages
and amounts of damage for each recurrence period, so we use them to identify our exposure and make judgments concerning insurance.

Holistic Analysis of Risks
and Opportunities

Castlemaine Perkins Brewery

We assume that flooding would have a serious impact on thecontinuity of our businesses, and we will therefore promote physical

Activity●Addressing flooding at facilities (adaptation measures)Climate change

Response strategy
Natural capital

Containers and packaging

Impact on transportation from floods[short to long term]
There may be an impact on product distribution and thetransportation of raw materials from typhoons, heavy
In 2018, the West Japan Torrential Rain Disaster resulted
in long-term disruptions to railroads and roads in the
Chugoku region, and there were major obstacles to thetransportation of products from breweries and plants tocustomers. In 2022, we conducted a survey concerning
flooding risk and countermeasures in major barley shipping

damage on product distribution, including Typhoon Faxai, whichcaused significant damage, particularly in Chiba Prefecture, and

Immediately after we recovered from major damage to logistics

Typhoon Hagibis, the first typhoon to receive the designation of a

networks from the 2018 West Japan Torrential Rain Disaster, weDisaster of Extreme Severity (both occurred in 2019) and a Specified

created a manual for responding to similar events. As a result, weAnomalous Disaster.

were able to avoid any significant impact from subsequent typhoon●Diversification of suppliers (adaptation measures)
We reduce risk by having multiple suppliers. We work with ourEurope, and Australia. We combine procurement measures for hops,

suppliers as part of endeavors to sustain our supply chain, to ensure

such as adopting long-term contracts with producers, as part ofthat we can stably deliver safe and secure products to customers,

efforts to secure the necessary amounts, and minimize the impact ofat the optimal price. We have diversified our procurement of malt,

market prices.

the main ingredient of beer, across three continents: North America,

found that flooding risk was low in Canada, Australia,
and the United Kingdom, and that while there was arisk of future floods of between 0.5 and 5 meters in the
Netherlands and Germany, planned countermeasures havebeen formulated and implemented. We also found that,76

even when flooding risk is not high in the bays themselves,

8

Assessment of water risk at main barley exporting ports
Flood risk

Recent disaster information

Flood control measures

CanadaVancouverBay

Risk of floods between 0.5
and 1m in 2100

Full-scale disruptions occurred
to rail freight transportation andhighways connected to the bay as
a result of flooding and landslides
caused by heavy rainfall in 2021

In cooperation with local NPOs, flood
management strategies have been formulated andcoastal lines have been repaired

Australia

Fremantle
Perth Bay

Risk of floods between
0.7 and 2m between 2010
and 2080, and risk offloods between 0.5 and
5m from 2080 onward

No information about coastal
disasters

On-site analysis is being conducted concerning
the risk of climate change. Separately to climatechange, there have been repairs to piers,
bulkheads, and important facilities

UnitedKingdomSouthamptonBay

Low risk of flooding prior
to 2050. Risk of floods
between 0.5 and 5m in
2080

No information about coastal
disasters. Damage from heavy
rainfall occurred in the city in 2021

Coastal development is being promoted, including
flooding countermeasures, and there are plans tocomplete the construction of bulkheads in rivers
with a particularly high level of risk

The
Netherlands

Rotterdam
Bay

Risk of floods between
0.5 and 5m between 2010
and 2080

No information about coastal
disasters

The government and companies collaborated tolaunch a program for managing flood risk in 2015.
They are strengthening protective barriers andembankments, as it is urgently required

Germany

Bremerhaven
Bay

Risk of floods between
0.5 and 5m between 2010
and 2080

No information about coastal
disasters. Damage from heavy
rainfall occurred in the city in 2021

Measures such as building and strengthening sea
embankments and protective barriers are being
implemented in accordance with plans. Repairs to
1.3km of quay walls were completed in January 2022

disasters affecting railroads and roads linked to the bays,
as well as adjacent cities, would cause obstacles to thefunctioning of the ports.

Holistic Analysis of Risks
and Opportunities

Coast name

ActivityCountry・ TNFD
TCFD

ports overseas. As a result of this survey (Table 8 ), we

We are developing a manual for responding when we anticipate
disruptions to logistics over a wide area from natural disasters, etc.

Environmental
Strategy

rainfall, and other disasters caused by climate change.

●Sharing of knowledge on responses to floods (adaptation measures)

Message fromTop Management

Details of physical risks

Climate change

Response strategy
Natural capital

Containers and packaging●Advanced technologies for water use reduction (adaptation measures)
We will appropriately reduce our use of water, taking into

Disruption of operations owing to droughts[short to long term]
Water is essential in brewing and manufacturing processes
for alcoholic beverages, soft drinks, pharmaceuticalbe disruption or obstacles to brewing and manufacturingin the event of severe droughts caused by climate change.

the differing levels of water stress in each country and region, based

operated businesses in Australia, where there is extremely high-on our understanding of the scientific evidence. Lion experienced

water stress, and Japan, where water is relatively abundant. As

severe long-term droughts in Queensland. We collaborated withsuch, we have known from our experiences that water risk andthe state government to establish a reverse osmosis (RO) plant towater stress differ between countries and regions. Since as early as

collect and reuse water that has been used in brewing processes

2014, we have been conducting regular surveys of water risk andat Castlemaine Perkins Brewery in 2011, and we maintain a water

water stress, and we have continued these surveys as part of ourconsumption rate that is close to the top in the world.
More information→P.46

In our assessment of water stress at manufacturing andbrewing sites based on Aqueduct 4.0, other resources,
water stress such as drought is elevated at seven plants
in Australia, one in the U.S., and one in Thailand. We havebreweries and manufacturing sites based on the volume
decline in brewing and manufacturing under certain
assumptions at business sites with a “high” level of water

damage from droughts by holding large inventories and switchingdepending on the details of the business, but we will enhance thetemporarily to products that use less water. By sharing thisresilience of each business while sharing insights on droughts. Thaiknowledge within the Kirin Group, we are reinforcing our ability to

Kyowa Biotechnologies, which faced water intake restrictions due

respond.

to drought in 2020, has been able to limit water intake and avoid

stress. We estimated that the financial impact was between

・ TNFD
TCFD

identified the estimated financial impact of droughts on●Sharing of knowledge on responses to droughts (adaptation measures)
The scope to which we are able to utilize such insights differs

Environmental
Strategy

products, and biochemical products. Accordingly, there may

scenario analysis since 2017. We conserve water in ways suited toconsideration the amount of water stress. The Kirin Group has

Message fromTop Management

Details of physical risks

approximately 30 to 600 million yen, but in past examples,77

we have been able to minimize the impact of droughts, so

Activity

we have judged that the risk is negligible.
More information on business site water risk assessments→P.74

Climate change

Natural capital

Containers and packaging●Responses to water stress in areas producing agricultural raw materials (adaptation measures)
At tea farms in Sri Lanka, we began water source conservation

Impact on agricultural products from floods
and droughts [short to long term]
There is a possibility that water risk and water stress from

Vietnam. We are accumulating knowledge, and as part of training foractivities on the farms in 2018, and as a result, by the end of 2022,

the acquisition of certifications, we teach subjects such as ways to

we have conserved water sources in 15 locations. In 2020, we began

ensure that the ground does not dry out in the event of droughts,

similar support for the acquisition of certification at coffee farms inas well as methods to store water to prepare for droughts.
More information→P.45

in agricultural yields and an increasing financial impact
related to procurement. In 2017, we used Aqueduct 2.1
to conduct detailed surveys of water risk in areas that
produce agricultural raw materials, and we found that water
stress would increase in many production areas (Table 9 ).
In 2021 and 2022, such concerns became apparent in many
regions around the world.

●Prevention of soil runoff in areas producing agricultural raw materials (adaptation measures)
Training on activities to support sustainable agriculture certification

plants that do not harm the cultivation of tea trees. At present,

on Sri Lankan tea plantations, including how to prevent soil runoff

we have not taken any specific measures in relation to majorfrom torrential rains by planting deep-rooted undergrowth. Our

agricultural products in Europe and Australia, where we anticipate

teaching is based on methods with a scientific core, such as working

significant water risk and water stress, but we hope to utilize thewith local universities to develop methods that enable farm laborers

knowledge we have accumulated through our initiatives in Sri Lanka

to distinguish the correct type of plants, because they must choose

and elsewhere.
More information→P.35,P.45

Holistic Analysis of Risks
and Opportunities

climate change, as well as disasters, may result in a decline

Water stress in major agricultural product production areas (around 2050)
America (North and South)

Agricultural products

Asia

United States
Medium to high in Oregon,medium to high in Idaho(partially Extremely high)Japan
Medium to high in Tono,
Yokote, Yamagata
Low to medium in Odate

Germany
Medium～High
Czech Republic
Medium to high in Moravia,
low to medium in Bohemia

Australia
Extreamly high
New ZealandLow

Sri Lanka
Extremely high in the North, andmedium to high in the South and central
highlands
India
Low in Darjeeling and Assam,
low to Medium in Nilgiri
Indonesia
Extremely high in Java, low in Sumatra
Low in Sumatra

Kenya
Low
MalawiLow

Chile
Extreamly highArgentine
Extreamly highSpain
High in the North, extremely
high in other areas

Coffee beans

Brazil
Low to medium in the
Northeast, low in other regions

Tanzania
Medium to high in the North,
low in other areas

Details of physical risks
Climate change

Activity

Wine grapes

・ TNFD
TCFD

Australia
Extremely high in the East andSoutheast
Medium in the Southwest

Environmental
Strategy

UkraineHigh～Extreamly high
United Kingdom
Low in the North, high in the South
Germany
medium～High
Czech Republic
Medium to high in Moravia,
low to medium in Bohemia
Belgium
High
FranceHigh

Tea leaves

78

OceaniaJapan
Medium to highBarleyHops

Europe/Africa

CanadaHigh～Extreamly highMessage fromTop Management9

Response strategy
Natural capital

Containers and packaging●Research measures from a long-term perspective (adaptation measures)
We believe that comprehensive pest management is an effective way

In major forest fires in California, the grapes that the
Kirin Group procures were exposed to smoke that madethem unusable in the making of red wine. In Sri Lanka, air
pollutants from neighboring India have also caused damage
to tea leaves in lowlands. We expect grapevine diseases tospread as global warming progresses.

related to climate change and natural capital. In the Kirin Group,

to control agricultural diseases, and we have already begun trials in

we have our own vineyards, and we have established strong

some vineyards and tea farms. It seems likely that ecosystems will

relationships of trust with tea farms in Sri Lanka through long-

become stable when a variety of creatures live in the fields. We haveterm engagement. We will leverage our strength of having fields

also begun research concerning the possibility that the enrichment

where we are able to conduct surveys and various types of testsof ecosystems through hedgerow-style cultivation may suppress

to solve various issues related to the environment through a

diseases, as well as focusing on the early detection of insects andscientific approach and research and development with a long-term

mites that are vectors of diseases.

perspective.

Long-term, ongoing research is necessary to solve various issues

Holistic Analysis of Risks
and Opportunities

Impact of diseases and air pollution on
agricultural products[short to medium term]

Response strategy

Details of transitional risks
Climate change

Natural capital

Containers and packaging●Profit and loss neutral reduction of GHG emissions in brewing and manufacturing
accurately estimate costs for 2030 onward. We will, however,

Carbon pricing and energy procurement
costs [medium to long term]

will first reduce GHG emissions in accordance with our roadmap,
under the basic principle of profit and loss neutrality as a group,

incorporate measures to reduce GHGs aimed at achieving our RE100
renewable energy target by 2040 and the net-zero target by 2050

Energy procurement and logistics costs may spike if

as we work toward our 2030 “SBT 1.5°C” target for Scope 1 andinto our business plan.

governments introduce systems such as carbon taxes,

Scope 2 emissions. Specifically, the merit from saving energy willoffset depreciation and amortization from the investment and theLion has already achieved carbon neutrality in both Australia and
New Zealand. For information on our approach to environmental

emissions trading schemes, and carbon border adjustment

procurement costs increase of renewable energy. Since the outlook

investment to reduce GHG emissions, financing, investment

for technological innovations in areas such as energy conversion
and trends in energy costs are currently unclear, we cannot

amounts, and ICP, please refer to the pages on "Transition Plans."mechanisms. In Japan, we anticipate initiatives such as
the introduction of an emissions trading scheme by the
GX League, and the introduction of systems that require
generators of electric power to purchase emission
allowances in the future. Such initiatives may result incost increases by steadily reducing emissions to meet the
SBT 1.5°C scenario and Net-Zero target.

→P.20〜P.24●GHG emissions reduction through logistics optimization
In order to reduce GHG emissions in logistics departments, we willdevelop the various initiatives such as modal shifts, joint deliveries

total Scope 3 emissions, and are a major target for the reduction ofwith industry peers, and higher loading ratios.

emissions. In recent years, reducing the impact of transportation has
also been an important initiative from the perspective of reducing

GHG emissions from upstream transportation (category 4), including
the transportation of products, account for approximately 12% ofshortage of truck drivers.

the risk that we will not be able to transport products owing to theMore information→P.63

Table 10 shows the results of our estimation of the financial
impact of carbon pricing on energy procurement.
79

We estimated tax savings in 2030 of approximately 2.6

10 Assessment of impact of carbon pricingYearthe event that we achieve our science-based 1.5℃ target.
Estimates for both the 4°C scenario and the 2°C scenario
were larger than last year's estimates as a result of revisions
to reflect recent developments to carbon price projections
for each country used in the calculations. In order to reducerisk and lower our procurement costs, an effective way is toachieve or bring forward our GHG emissions reduction targets.
When assessing the impact of carbon pricing on energy
procurement, we estimated the impact at Kirin Brewery, Kirin

applied the 1.5℃
(Net-Zero) scenario,

scenarios, and set
the basis of forecast
carbon prices for all
three scenarios.

2030

1.5℃ Scenario

2050

2030

2050

If GHG emissions are not reduced

Carbon taxes (Billions of yen)

51

55

94

127

102

158

If we reduce GHG emissions inline with targets

Carbon taxes (Billions of yen)

26

0

47

0

51

0

Carbon taxes

Tax savings (Billions of yen)

26

55

47

127

51

158

*1 We have revised carbon tax assumptions for each country to reflect recent developments and recalculated using 2023 data.
11 Main Initiatives

Initiatives

Description and effects (2020～)

Introduction of large-scalesolar power generation
facilities with the PPA method

Already introduced at all eight Kirin Brewery plants in Japan, excluding the Yokohama Brewery (through 2023). Introducing at Kyowa
Kirin Ube Plan, Mercian Fujisawa Plant (operating from 2023 for each), Kyowa Hakko Bio Hofu Plant (operating from 2024), and Kirin
Beverage Shonan Plant (operation planned from 2024)
More information→P.60

Achieved a proportion of
100% renewable energy inpurchased electric power

Achieved a proportion of 100% renewable energy in purchased electric power at all Kirin Brewery plants and operating sites (through2024), and achieved a proportion of 66% of renewable energy across all electric power used.
Kyowa Kirin has achieved a proportion of 100% renewable energy in purchased electric power at its plants and laboratories (through2023), and by end-2023, achieved a 55% reduction in CO2 emissions compared with end-2019. At all three Mercian wineries, weachieved a proportion of 100% renewable energy in purchased electric power (2022)
More information→P.59

Joint deliveries*2

Reduced GHG emissions by approximately 2,700 tons per year through joint deliveries using railroad containers in the Hokuriku region
Reduced GHG emissions by approximately 330 tons per year through a similar initiative in the east Hokkaido area
More information→P.63

Joint collection of beer
pallets*2

Reduced GHG emissions by a total of 5,158 tons of CO2 per year (approximately 37% compared with previous levels) across four beercompanies
More information→P.63

2℃ scenario, and 4℃
scenario from the IEA

2℃ Scenario

2050*2 Calculation procedures for joint delivery and joint collection of beer pallets are described in ”Contribution to Avoided Emissions through the Global Value
Chain, Sixth Edition, Keidanren (Japan Business Federation)”
http://www.keidanren.or.jp/policy/2018/102.html

Holistic Analysis of Risks
and Opportunities

Beverage, Mercian, Lion, Kyowa Kirin, and Kyowa Hakko Bio
in 2023. For power emissions factors and carbon taxes, we

4℃ Scenario
2030

Activity

billion yen under the 4℃ scenario, 4.7 billion yen under the
2℃ scenario, and 5.1 billion yen under the 1.5℃ scenario, in

Scenario・ TNFD
TCFD

additional costs. The Kirin Group will minimize the risk ofEnvironmental
Strategy

In order to minimize the financial impact of carbon pricing, weMessage fromTop Management￨ Transitional risks ￨ Policy

Climate change

Natural capital

Containers and packaging

Financial impact on the procurement ofagricultural products from carbon pricing[medium to long term]
The prices of agricultural products may spike if
governments introduce carbon taxes and carbon borderFigure 12 shows the results of our estimation of the financial
impact of carbon pricing on agricultural product prices. In 2023,
we estimated the impact for Kirin Brewery, Kirin Beverage,
Mercian, Lion, Kyowa Kirin, and Kyowa Hakko Bio. Our estimatescovered the following agricultural products: barley, hops, tea
leaves, grape juice, starch, lactose, corn, and cassava.
approximately 0.9 billion yen to approximately 4.4 billion
yen under the RCP2.6/SSP1 scenario and approximately
2.4 billion yen to 8.8 billion yen under the RCP8.5/SSP3

support for farms to acquire certification for sustainable agriculture
are effective as countermeasures.

12 Impact on agricultural product procurement costs from carbon pricing

in 2050 (percentage of revenue)

Competition between alcoholic/non-alcoholic beverages and(Millions of yen)biofuels for raw materials will increase as carbon pricing causes

9,000

demand for corn, soybeans, etc., as biofuels, a form of renewableenergy, to increase. Mass plant propagation technologies may beable to contribute to an increase in crop acreage in response tois a raw material in nitrogen fertilizer, which will impact fertilizer

6,000

About 4.4 billion yen

0.20%
3,000

agriculture certification will act as a countermeasure to minimize
this impact.
More information on mass plant propagation technologies→P.39
More information on support for the acquisition of certification→P.35～P.36,P.39

scenario in 2050. The range of the 25-75 percentile was

About
2.4 billion yen
About
0.9 billion yen

prices. We think that training for farmers on appropriate fertilizer
management as part of support for the acquisition of sustainable

0.41%

25th percentile
75th percentile

this risk.
Carbon pricing may cause soaring prices of natural gas, which

About
8.8 billion yen

0.11%

0.04%
Current situation

RCP2.6/SSP1

RCP8.5/SSP3*1 The socioeconomic systems in the papers we used for our estimatesdiffer from the Kirin Group scenarios, so we have created and disclosed
our estimates under the RCP2.6/SSP1 and RCP8.5/SSP3 scenarios in these
papers (sources are listed in reference documents).
*2 Recalculated with 2023 data

twice as large for the RCP8.5/SSP3 scenario than the80

・ TNFD
TCFD

In our estimates, we calculated that the impact would be

We consider that mass plant propagation technologies andEnvironmental
Strategy

adjustment mechanisms.

●Mass plant propagation technologies and support for farms to acquire certification for sustainable agriculture

Message fromTop Management

Response strategy

Details of transitional risks

RCP2.6/SSP1 scenario, from which we can conclude that

Climate change

Natural capital

Containers and packaging

Impact on currently held assets[medium to long term]
There is a possibility that various policies and regulations, aswell as demands from society for decarbonization will mean
it may be difficult to continue to use existing facilities that use
Under the Kirin Group roadmap, we plan to transition in
the future from natural gas to green hydrogen and othersources of GHG-free energy as the fuel for boilers that are
the heat source used in the boiling stage, etc., in brewing
and manufacturing. It may become necessary to renew
boilers and other facilities earlier than expected. In thesame way, there is a possibility that we are required totransition the trucks we use for transportation to electricvehicles sooner than initially expected, but we believe thatthe impact will be small even if renewal becomes necessary
before assets are fully depreciated.

●Identification of trends in technology and renewal of our roadmap
The use of hydrogen, etc., will require technological innovationof the introduction of new technology, our technology and facilities

and infrastructure development, and we expect that full-fledged

may become obsolete as a result of regulatory and social trends.

transition will not take place until 2030 or later. Until then, we

Accordingly, we will address this issue by formulating roadmaps forthink the probability is low that regulation, etc., will require us tolong-term facility renewal and introduction, and constantly update

renew our existing boilers and other brewery and plant equipment,

the roadmaps.

and trucks, before they are depreciated. If we misjudge the timing

More information→P.21

Holistic Analysis of Risks
and Opportunities

fossil fuels, etc., for the period that we initially expected.

Activity

uncertainty is higher and the risk is more significant.

Climate change

Message fromTop Management

Response strategy

Details of transitional risks
Natural capital

Containers and packaging●Development of infrastructure for the disclosure of information
Since January 2024, the Kirin Group, through our subsidiaries, has

Cost of regulatory response[medium to long term]
In 2023, the International Sustainability Standards Board (ISSB)
finalized the IFRS Sustainability Disclosure Standards, which will

financial information in order to immediately respond to regulations
and stakeholder requirements in each global jurisdiction, as partof our efforts to provide disclosure that is compliant with thestandards of the International Sustainability Standards Board (ISSB).

related to sustainability. Based on these standards, jurisdictions
around the world are creating legislation concerning
information disclosure requirements for companies. The Kirin
Group has business sites in Japan, Australia, the US, and theEU, and in the future, it is likely that we will be required toreport sustainability-related information in accordance with thenatural capital and climate change are among the sustainability
issues for which we should disclose information. Specifically,
we must explain the impact of these issues on corporate value,

Since 2013, the Kirin Group has continued to support theacquisition of Rainforest Alliance certification by tea farms in Sri
Lanka. This certification is a certification system for sustainable
farms that focuses on environmental protection and social aspects
at farms.
At present, the Kirin Group has begun working with the Rainforest
Alliance on the development of “The Regenerative Tea Scorecard,”in order to further enhance the sustainability of tea farms in Sri
Lanka. The scorecard will serve as a tool for tea farms to startregenerative agriculture on their own initiative. Using knowledge
and data obtained from pilot testing at Sri Lankan tea farms, weare considering the possibility of expanding the scorecard to otherareas producing tea leaves outside of Sri Lanka in the future.

and our response to risks and opportunities. To achieve this,
we must establish systems that enable us to accurately and81

quickly collect information from across the value chain and
In Japan, in response to the "30by30*" target agreed at
COP 15, the government will create a legal framework for“Nationally Certified Sustainably Managed Natural Sites” (tobe promulgated in April 2024, and enacted in April 2025). We
expect increases in labor and financial costs associated withresponding to these regulations.

●Nature Positive through businesses
By converting derelict farmland into hedgerow-style vineyards at

In particular, at Mariko Vineyard, a certified “Nationally Certified

Château Mercian, we have created grasslands, which are valuable

Sustainably Managed Natural Sites”, we are conducting joint

for Japan at the present time, and contributed to the expansion

research with NARO to accurately identify greenhouse gasesof Japan’s traditional rural Satochi-Satoyama landscapes. In

emitted from vineyard soil, evaluate the carbon storage effect of

joint research with the National Agriculture and Food Research

biochar by utilizing pruning debris, etc. In the future, we will look

Organization (NARO), we showed that these initiatives enrich thefor the possibility of applying the findings to other agricultural

ecosystems of each vineyard and contribute to Nature Positive.

production areas.

Activity

utilize it in management.

・ TNFD
TCFD

requirements of each jurisdiction. The Kirin Group believes that

●Enhancements to the sustainability of raw material production areas

Environmental
Strategy

serve as the global baseline for the disclosure of information

been working to establish a system for identifying and sharing non-

* Target to make at least 30% of land and sea conservation areas
by 2030

Holistic Analysis of Risks
and Opportunities￨ Transitional risk ￨ Technology

Climate change

Response strategy
Natural capital

Containers and packaging

Lack of research and development
resources and lack of long-term
perspective [short to long term]
development of commercial applications, such as reducing
the weight of containers and packaging and chemical
recycling, at the required time, there is a risk that it will bedifficult to maintain leadership based on our technology, andthat subsequent technology development and procurement
will suffer.

measures for climate change, but since they target nature,they generally require long-term research and technologicaldevelopment. If we begin taking action after the risks havebecome clear, we risk falling behind competitors and making
it difficult to recover over the long term.
82
Natural capital

Containers and packaging

Decline in ability of engineering
departments to respond and lack ofappropriate investment [short to long term]

containers and packaging, the Institute for Packaging Innovation
utilizes AI, kansei (sensibility) engineering, and other technologies.
Taking advantage of the strength of having this large-scale researchalcoholic beverages and nonalcoholic beverages businesses
amounts to approximately 1.1 billion yen (results of estimation in2019). We aim to use recycled resin for 50% of domestic PET bottles
by 2027, and we will thereby contribute to reducing social costs bytransitioning to a circular economy.

●Research and development on climate change and natural capital
Hops are vulnerable to climate and cultivation conditions, andthere are concerns that climate change could reduce yields andalter the taste of hops. For this reason, research is underway on
improvements to breeds to adapt to climate change. In 2022, Kirin
developed mass plant propagation technology for hops, and we
intend to build a sustainable supply system for raw materials by
combining improvements to breeds and mass plant propagation

technology.
At Château Mercian Mariko Vineyard, we launched a joint study
in cooperation with NARO in March 2024, to assess the effectsof carbon storage as a climate change mitigation measure. In thisresearch, we intend to engage in initiatives such as assessing
the carbon storage effect of biochar utilizing pruning debris fromvineyards, etc.

●Strengthen engineering functions
We have assigned personnel with engineering skills in each groupcompany and ensure that we are maintaining and managing brewing
and manufacturing facilities, while also training engineers andtransferring technical expertise on an ongoing basis.
In the Kirin Group, engineers with a deep knowledge of brewing
and manufacturing processes, production technologies, andsafety technologies reliably support brewing and manufacturing
facilities. Furthermore, the Kirin Group owns Kirin Engineering, ageneral engineering company, and we have engaged in engineering
specialized in the construction of plants producing beer, non-alcoholic beverages, pharmaceuticals, and other products overmany years. Through this company, we have been conducting
the new expansion and remodeling of large-scale manufacturing
facilities for companies both within and outside the group. By
performing engineering in various businesses in-house, we makeit possible for engineers to transfer expertise and technicalcapabilities related to building facilities. These technical capabilities
that we have developed and our engineers will support the growthand development of our business domains, ranging from food andbeverages to pharmaceuticals.

●Understand technological trends and flexibly introduce facilities and equipment
The Kirin Group will intensively watch technological trends andsocial conditions in the engineering department of Kirin Brewery,and reflect these trends in the roadmap for measures against

climate change, enabling us to determine what kind of equipment
will be effective where in the Group, and flexibly introduce
technology after close communication with each Group company.

Holistic Analysis of Risks
and Opportunities

There is a possibility that our engineering systems aimed
at achieving decarbonization are insufficient, a possibility
that those systems are not appropriately applied because
technical expertise is not passed on.
The effective utilization of waste heat is essential for theefficient utilization of energy. This requires not only the
introduction of modern equipment and facilities, but also
engineers and technology with a deep understanding of the
manufacturing process.
Technological progress is rapid, and if we cannot determine
the timing for introducing technology or make quick
investment decisions, we may not be able to achieve
reductions in GHG emissions as planned.
While momentum for the decarbonized society is rapidly
increasing, there is a possibility that we will be unable tointroduce renewable energy at an appropriate time andappropriate price in Japan, where the places for installing
renewable energy facilities are particularly limited.

with lower GHG emissions across the value chain.
Based on the technologies it has accumulated in the developmentof glass bottles, cans, PET bottles, cardboard cartons, and other

Activity

Climate change

utilize this strength to develop advanced containers and packaging

As part of the recycling of PET bottles, we are focusing on technicaldevelopment related to chemical recycling. We have estimated thatthe negative impact on natural capital of PET bottles in the domestic

・ TNFD
TCFD

Concepts such as "The Climate Nature Nexus" and "NbS
(Nature-based Solutions)” have emerged as adaptation

research laboratories of its scale owned by a global food andbeverage, and pharmaceutical company. We think we will be able tofacility, we are able to provide technical support necessary forcommercialization and develop new containers.

Environmental
Strategy

If we cannot achieve technological development and the●In-house packaging development technology
The Kirin Group has the Institute for Packaging Innovation, where
we develop packaging and containers in-house, as one of the few

Message fromTop Management

Details of transitional risks

Climate change

Natural capital

Containers and packaging

Environmental and economic
incompatibility due to rapid agricultural
policy transitions [short to long term]
Sri Lanka's sudden ban on the import of chemical fertilizers
withdrawn) caused a decline in yields of many agricultural
products and caused great damage to the Sri Lankan

must learn about climate change and natural capital and adopt a

introduced in place of chemical fertilizers were of poor quality

holistic approach.

and could not be used. It could be said that efforts to transition

In our support for the acquisition of Rainforest Alliance certification,

to organic agricultural methods without preparation did not just

we provide training on how to properly use agricultural chemicals

harm agricultural production that was stable, but also harmed theand fertilizers, to ensure that farms can continue to operate despite

interrelated economy.

climate change and other external impacts. In the case of Sri Lanka,

There is a risk that one such type of harm will spill over into another,

the Rainforest Alliance is rapidly establishing systems to reduce thewhich will severely harm ecosystems. In response, we believe we

impact on farms.

economy. Political and macroeconomic influences can cause
indirect changes in the use of land as a result of changes tocrops produced and reduced yields per unit area. This could●Appropriate engagement with experts and policymakers

encourage deforestation. Without sufficient preparation, theThe Kirin Group, in collaboration with the Rainforest Alliance,transition to organic farming may weaken agriculture itself

supports tea farms in Sri Lanka and coffee farms in Vietnam ingovernment banned the import of chemical fertilizers, etc. It is not

and result in destruction to the natural environment in theobtaining sustainable certification. The Rainforest Alliance haseasy to influence policies for agricultural production areas overseas,

83

even if events occur such as what happened when the Sri Lankan

extensive knowledge of agriculture and ecosystems in tropicalbut we believe that there is a suitable environment to enable us toregions in Asia and Africa, among others as well as a network ofparticipate in global rulemaking.

scientists, etc., and it has secured the trust of local farms. NARO,

Global rulemaking for climate change and natural capital utilizes
open innovation. We will seize these opportunities and actively

surveys at Mariko Vineyard, etc., has trained many researchers on

participate in discussions and pilot testing to contribute to ensuring

agriculture. We will leverage these valuable networks to respondthat global rules are appropriate.

Activity

with which Kirin conducts joint research in the form of ecological・ TNFD
TCFD

area surrounding agricultural land.

Environmental
Strategy

and agricultural chemicals in the first half of 2021 (later●Support for training farmers in sustainable agriculture
In Sri Lanka, there have been frequent cases where organic fertilizers

Message fromTop Management

Response strategy

Details of transitional risks

Holistic Analysis of Risks
and Opportunities

Details of transitional risks
Climate change

Response strategy
Natural capital

Containers and packaging

Social resistance to fossil-derived raw
materials [medium to long term]
related to all aspects of climate change, not just ocean
pollution. As a result, there is a possibility that people
may have a stronger negative impression than before ofmechanical recycling. As of April 2024, we are using “R100 PET

formulated in 2019 with the aim of resolving problems related tobottles,” which use 100% recycled PET resin, for some products inplastics, the Kirin Group will promote PET bottles that use recycled

the Kirin Nama-cha line. We will promote technical development

PET resin. In this policy, we have set forth our target of increasing

related to practical uses for chemical recycling to create high-the percentage of recycled resin to 50% of PET bottles in our

quality recycled PET resin by recycling dirty used PET bottles andoperations in Japan by 2027.

other PET resin. In addition, we will create systems to recover used

We have promoted the utilization of recycled PET resin throughPET bottles and other PET resin.

More information→P.60

containers and packaging using raw materials derived
from fossils. In Japan, the “Act on Promotion of Resource

Environmental
StrategyInterest in problems related to plastic is spreading to issues●Plastic resource recycling
In accordance with the “Kirin Group Plastic Policy,” which we

Message fromTop Management￨ Transitional risk ￨ Market

Circulation for Plastics” was enacted on April 1, 2022, andinterest in problems related to plastics has been increasing.

・ TNFD
TCFD

Plastics are a raw material derived from oil, and we expectthat as interest in problems related to climate change
increases, people will focus on GHG emissions when they
are burned, as well as problems related to the depletion of
resources from raw materials derived from oil.
84
Natural capital

Containers and packaging●Promotion of sustainable forestry and agriculture
The Kirin Group is continuing initiatives to expand sustainable

Concerns about deforestation[medium to long term]
As awareness spreads of the importance of forests as
GHG sinks, concerns about business activities that leadto deforestation are more prevalent than ever before,
potentially resulting in stronger negative impressions offorestry and agriculture.
between 2019 and 2020, and the frequent wildfires in
California and other cases have brought attention to therelationship between climate change impacts and forests.
The United Nations Food System Summit was held in 2021,
the EU's "Farm to Fork" strategy and Japan's "Green Food
System Strategy" have been formulated and announced, andthere is a stronger focus on sustainable agricultural production
than ever before. The spread of COVID-19 and geopoliticalissues have also increased people's interest in food security. It
is assumed that interest in sustainable agriculture due to thesefactors will lead to interest in forest issues.

sustainable paper to all our businesses around the world. In terms

certified paper and raw materials from certified farms that we use.

of sustainable agriculture, we support the acquisition of Rainforest

With regard to sustainable forestry, we are promoting an initiative to

Alliance certification, which is a certification for more sustainable

expand the use of FSC (Forest Stewardship Council)-certified paper.

farming, at tea farms in Sri Lanka and coffee farms in Vietnam. Since

In 2020, we adopted FSC-certified paper for 100% of paper

August 2021, we have also been selling a year-round product incontainers at Kirin Brewery, Kirin Beverage, and Mercian. In 2021,

the Kirin Gogo-no-Kocha line that uses tea leaves from farms with

we revised our Action Plan for the Sustainable Use of BiologicalRainforest Alliance certification.
More information→P.44～P.45,P.48,P.50,P.55,P.61

Holistic Analysis of Risks
and Opportunities

The worst forest fires in Australian history, which occurred

Resources, and we set forth our intention to expand our use offorestry and agriculture, and we plan to increase the proportion of

Activity

Climate changeResponse strategy

Details of transitional risks
Natural capital

Containers and packaging●Steady implementation of our roadmap to achieve our science-based 1.5°C target
We must surely execute our roadmap for countermeasures against

High energy prices [medium to long term]
As initiatives targeting decarbonization accelerate around theworld, it is possible that demand for natural gas may increase andprices may rise in the short term, owing to such factors as thetransition toward sources of energy with low GHG emissions andas we look to reduce our use of natural gas. In the Kirin Grouproadmap, we plan to shift our energy mix to electric power as muchas possible, and use renewable energy as the source of that electric
power.
We will transition away from steam produced from gas to electric
power for the heat source for heating processes. We will continue

2021 (WEO 2021)” by the International Energy Agency (IEA), andto use steam for processes and equipment where it is difficult tohave researched future natural gas prices based on three scenarios(Table 13): NZE (Net-Zero Emissions by 2050 Scenario: an ambitious

source for steam toward hydrogen produced from renewable energy.

transition, but we plan to transition away from gas for the energy

scenario in which the 1.5℃ target is achieved), APS (Announced
Pledges Scenario: a scenario in which all commitments alreadyMore information→P.21～P.22

announced by the governments of each country are executed),

Current priceScenario

Future price2020 USD/GJ

2030 USD/GJ

2050 USD/GJ

Net-Zero
Emissions by 2050

8.3

4.6

4.4

Sustainable
Development

8.3

5.7

5.6

Announced
Pledges

8.3

8.0

7.2

Stated Policies

8.3

9.0

9.4

World Energy Outlook 2021（WEO 2021）

and STEPS (Stated Policies Scenario: a scenario that only reflects
implemented policies in each country).
In each scenario, we forecast that demand for natural gas will
increase through 2025, and we subsequently only expect it to fallsignificantly in the NZE scenario. In our analysis, we forecast thatnatural gas prices will fall approximately 4% from current levels in
the APS scenario, and rise approximately 8% in the STEPS scenario
by 2050. In the NZE scenario, we expect prices will fall by aroundhalf by 2030, but these price forecasts do not reflect investment
and expenses related to Carbon dioxide Capture, Utilization andStorage (CCUS), so there is a possibility that we cannot expect
a significant price decline when these costs are taken into
consideration.

Natural capital

Containers and packaging

Activity

Climate change

・ TNFD
TCFD

85

13 Forecast fluctuations in natural gas prices●Environmentally friendly products
In the Kirin Group, we mark our relevant products as environmentally

If we fail to provide products that respect the environment andhuman rights in terms of climate change, natural capital, andcontainers and packaging, we risk being surpassed by competitors
and losing out on opportunities to generate earnings throughethical consumption. Based on scenario analysis related to climatechange and natural capital, we have concluded that a rapid
expansion of the market for ethical consumption is unlikely at thistime. If, however, young people interested in sustainability become
the main consumers, they may choose ethical products. In addition,
because issues related to containers and packaging are familiarand easily recognized by consumers, we believe that if we do notrespond appropriately, it is likely to lead to criticism.

these products.

friendly. On most Kirin Brewery and Kirin Beverage paper containers,

A low level of awareness is a common issue for certification

we display FSC-certified labeling to indicate the fact that we use FSC-

labels. Therefore, we are conducting activities to raise awarenesscertified paper. We use tea leaves from Rainforest Alliance-certified

among young people, who are our main target for such products.

farms in Sri Lanka for Kirin Gogo-no-Kocha Straight Tea 250ml (LL

We enhance the awareness of elementary school students andSlim) , so we display a label for this certification on the product. We

younger children by encouraging them to look for environmental

also use recycled PET resin for Kirin Beverage PET bottles, so wemarks through a program called the “Environmental Mark Discovery

display our own labels. Lion has labels on carbon zero beer that it

Notebook.” For junior and senior high school students, we hold Kirin

sells in Australia and New Zealand, and New Belgium Brewing has

School Challenge workshops, based on the themes of Rainforest

labels on carbon neutral beer that it sells in the US, which inform

Alliance certification and the FSC certification. Each of these

consumers about the carbon zero and carbon neutral aspects ofprograms has more than 1,000 participants.
* We refer to carbon neutral beer as "carbon zero beer" in accordance with
the name used for certification.

Holistic Analysis of Risks
and Opportunities

Opportunity loss due to ethicalconsumption [medium to long term]

Environmental
Strategy

divestment from coal. We have referred to “Net-Zero by 2050: A
Roadmap for the Global Energy Sector” and “World Energy Outlook

climate change, which is based on our science-based 1.5℃ target,

Message fromTop Management

Climate change￨ Transitional risk ￨ Reputation/Liabilities

Climate change

Response strategy
Natural capital

Containers and packaging

Assessment by consumers [short to longterm]
There is a possibility that our corporate brand value may

engage in appropriate communication. Since 2020, the SDGs
have been incorporated into Japanese national curriculum.
Consumer awareness of environmental issues has risen,
particularly among young people.

Natural capital

Containers and packaging

We are also teaming up with multiple companies on the free

Since 2014, we have held Kirin School Challenge workshops for juniordistribution of the SDGs Start Book (300,000 copies per year), whichand senior high school students, based on the themes of our support

teaches elementary school students and junior high school students

for the acquisition of Rainforest Alliance certification at tea farms inabout the SDGs and introduces our activities in Sri Lanka as an

Sri Lanka and the use of FSC-certified paper in paper containers. In

example of actions for SDGs.

these workshops, we do not just introduce certification systems. We

For children in elementary school and younger, we are collaborating

prioritize communication with junior and senior high school students,

with organizations such as after-school care clubs, Girl Scouts,

as well as discussion, thinking, and sharing information among

and Boy Scouts on the “Environmental Mark Discovery Notebook”

junior and senior high school students about what they should

initiative, which starts from children learning to recognize

communicate to members of their own generation, and how theyenvironmental marks and finding out their meanings.

●Introduction of renewable energy that does not have a negative impact on the environment or local communities
In July 2021, the Kirin Group established our policy on theConcerns about renewable energy[short to long term]

86

Natural capital

Containers and packaging

solar power, wind power, and biomass, and we check these risks in“responsible introduction of renewable energy” and “additionality”

advance.

when introducing renewable energy.

With regard to “additionality,” our policy is to “replace thermal power

With regard to the “responsible introduction of renewable energy,”

by creating new renewable energy power generation facilities in

we prioritize ethics and select that which “causes no harm to thesociety, and thereby contribute to the creation of a decarbonizedenvironment and does not violate human rights when power plantssociety.”●Appropriate disclosure in line with the TCFD and TNFD recommendations
We expect that by disclosing information in a holistic, appropriate

Trust from long-term investors [short tolong term]
We believe there is a high risk of losing the trust of stakeholders
if we lack appropriate disclosure on climate change, natural
capital, the circular economy, and other environmental issues.
The Kirin Group has declared our aim to be “a global leader
in CSV, creating value across our world of Food & Beverages
to Pharmaceuticals,” and we aim to expand our businessin the Health Science domain. We believe that the supportof long-term investors is necessary for long-term business
transformation and environmental investment.

More information→P.60

are constructed and fuel is procured,” and we also set forth examples

framework since 2022, and the ISSB Exposure Draft since 2023.

manner, in relation to climate change and the mutually related

We have won a “Gold Award” three times, in 2019, 2020, and 2024,

themes of natural capital and the circular economy, investors whoin the environmentally sustainable company category of the “ESG

support these initiatives will provide funds. The Kirin Group has

Finance Awards Japan.” We received the highest number of votes

disclosed detailed information related to climate change and otherin 2022 and 2023, and the second highest number in 2024, fromenvironmental factors in our Integrated Report and Environmental

investment management institutions in the selection of "superior

Report. We have also continued to disclose information in line with

TCFD disclosure" requested to investment management institutions to

the recommendations of the TCFD since 2018. In our disclosure

which the GPIF outsources domestic equity management.

of information, we have referred to the beta version of the TNFD

Holistic Analysis of Risks
and Opportunities

Climate changeof expected risks in relation to each source of power, including

introduction of environmental value, with the basic policies of the

Activity

In order to achieve our target of Net-Zero emissions, we must
introduce renewable energy, but the inconsiderate constructionof power plants may cause harm to scenery, nature, andhuman rights, and cause disasters, possibly resulting in criticism
from society. For example, violations of indigenous peoples'rights when using land, harm caused by noise and vibrations
from wind power generation, and deforestation caused by the
procurement of raw materials for biomass energy. If measuresthat we implement based on an inappropriate assessment
negatively impact the living environment of local residents, it ishighly likely that it may result in claims for compensation.

should do it.

young people who will take responsibility for the next generation.

・ TNFD
TCFDClimate change

We promote our communications, we will prioritize engagement withEnvironmental
Strategy

decline if our initiatives related to climate change andother aspects of sustainability are inferior, and if we cannot●Appropriate communication to consumers

Message fromTop Management

Details of transitional risks

Climate change

Natural capital

Containers and packaging

Responsibility for pollution of the naturalenvironment [short to long term]
Failure to comply with environmental regulations may
result in damage to the natural environment aroundregions, resulting in liability, fines, and administrative
dispositions. Specifically, this could include cases where wehave polluted the surrounding environment, such as air orwater, in excess of legal or in-house standards, and cases
where we have not appropriately entrusted waste treatment.
If genetically modified organisms and the like harm theunexpected changes to ecosystems as a through "genetic
disturbance" caused by hybridization, it will violate theCartagena Protocol.
In addition to compensation, fines, and administrative
dispositions, we believe these risks could also lead to87

a decline in public trust, an impact on sales, and evenpollution to the natural environment.

intake, and prevent pollution. All business sites must also conduct

In order to manage of legal requirements, we strictly manageinternal environmental audits to ascertain the appropriateness andrecords of revisions and abolishments at each business site, and welegal compliance of their systems and confirm how well targets

set voluntary management standards that are stricter than thoseare being met. The results of these audits will then lead into

set by laws and regulations, thereby thoroughly working to prevent

management reviews. We integrate the management of environment-

environmental pollution. In addition to general pollution and healthrelated processes with company management processes in aand safety issues, legal requirements include responses to wastemanner suited to the companies’ respective regions. We incorporate

and the Cartagena Protocol.

environmental targets into goal-setting for each organization andWe operate environmental management systems to maintainindividual, as well as responsible managers, and assess the degreecompliance with these laws and regulations, and we have provided

to which those goals are achieved in assessments of performance.

for these environmental management systems in the Principle for

The Kirin Group is working toward its declared goal of theKirin Group’s Global Environmental Management (KGEMP).

implementation and firm establishment of thorough appropriate

Under the KGEMP, a Group general environmental manager

management of waste. To this end, we established the Kirin Holdings

has been appointed as the chief executive officer for all Group

Waste Management Rules and are promoting the appropriate

environmental matters. As of April 2023, this role is held by thetreatment of waste within the common Group systems. These rules

Senior Executive Officer of Kirin Holdings Company, Limited withstandardize contract templates and the frequency and contents of

responsibility for CSV strategy. The KGEMP requires the appointment

contractor audit programs, and by keeping an updated list of staff inof a general environmental manager, who has responsibility andcharge of waste management, we provide education to all staff who

authority for environmental matters in each operating company.

require it, based on standardized textbooks.

In addition to monitoring to ensure that the company and its

In Japan, Kirin Holdings collectively manages information on all

constituent companies are conducting their environmental activities

waste disposal contractors for the Group, so in the unlikely event

appropriately, the general environmental manager conductsthat a problem arises, we can immediately search for and confirm

management reviews, identifies issues for improvement, and gives

details about the contractor, its permits, the waste it is being

necessary directions to the relevant departments. In the event ofcontracted to handle, and other details. We have standardized

an environmental crisis, the general environmental manager of each

operations in this way so that anyone who is newly assigned tocompany will have full authority to resolve the crisis. The KGEMP

waste-related work will be able to perform it with certainty.

Activity

boycotts.

reduce environmental load, such as GHG emissions and water

・ TNFD
TCFD

natural environment by escaping to the outside or cause

and other rules relevant to the business’s environmental activities,

environmental management systems will enable us to prevent

Environmental
Strategy

manufacturing, brewing, and logistics sites and related●Environmental management systems
We believe that the establishment and proper operation of

Message fromTop Management

Response strategy

Details of transitional risks

stipulates that all business sites comply with laws and regulations

Holistic Analysis of Risks
and Opportunities￨ Systemic risk

￨ Stability of food and social systems

Climate change

Response strategy
Natural capital

Containers and packaging

Damage to ecosystems owing to reduction inagricultural land for food [short to long term]
There have been cases of agricultural land for the

Appearance, taste, the health of consumers, and otherfactors do not matter for agricultural products for biofuel, so
the production of agricultural products for biofuel tends to

In production areas in developing countries, there are limited direct

Subsidy schemes in producing countries and regions are often

contracts with individual farmers, and it may only be possible tobehind the conversion to the cultivation of agricultural products for

procure products through auctions. Where direct engagement

biofuels. It is difficult to have a direct impact on rules in producing

is possible, however, through support for the acquisition ofcountries, so we will try participating in global rulemaking andcertification, as in the case of tea farms in Sri Lanka, we are able

approach farms through suppliers. We will also consider measures

to develop an understanding of local issues and find solutions

to respond through suppliers, such as leveraging the collection of

together. Our policy is to engage with farms in other areas

information to distribute procurement.

producing agricultural raw materials as needed.

focus only on economics. This results in large-scale changes
to the use of agricultural land, monocropping, and the use

Environmental
Strategy

production of food being converted to agricultural landfor biofuels because of high selling prices of biofuels.

●Engagement with agricultural production areas

Message fromTop Management

Details of systemic riskof large amounts of agricultural chemicals and fertilizers, all

Climate change

88

Natural capital

Containers and packaging

Ecosystem damage due to the abandonmentof farmland [short to long term]

Natural capital

Containers and packaging

Ecosystem damage due to the excessive useof agricultural chemicals [short to long term]
Examples have been confirmed of grape cultivation withpergolas where the application of defoliants to the soil formany years for operational reasons destroys the existing
ecosystem in vineyards. We know that even if there aremountains and fields nearby and the ecosystem is very
abundant, once an ecosystem completely collapses, it isdifficult to recover easily.

In Japan, farmers, the government, and Kirin have deployed activities

improvements. Through many years of engagement with Sri Lankan

based on engagement, in order to prevent the abandonment of

tea farms, we support the continuation of tea leaf cultivation in ways

cultivation by hop farmers in Tono due to the aging population.

suited to local characteristics. In addition, we offer environmental

We are taking steps to create a brand around Tono hops, and are

education programs and other programs in cooperation with local

promoting initiatives such as the utilization of these hops in craft

nature conservation organizations and the government, in order tobeer and other products.

●Ecosystem restoration activities focusing on hedgerow-style cultivation
In ecological surveys at vineyards, we confirmed that even if

Therefore, even if ecosystems are destroyed, we believe that it is

the seeds that we sow for slope greening and hedgerow-stylepossible to restore abundant ecosystems by restoring grassland

cultivation contain invasive species, native species will gradually

through hedgerow-style cultivation.

enter and become dominant if the environment is favorable.

Holistic Analysis of Risks
and Opportunities

Climate change

promote appropriate actions by farmers.

contributes to both the conservation of nature and profitability

Activity

In Japan, the number of abandoned farmlands is increasing,owing mainly to the aging farmers. These abandoned lands
quickly become covered with strong weeds and transition
to simple ecosystems, which may result in disease in nearby
farmlands. Production areas in Asia and elsewhere face
problems such as soil runoff due to changes in land use
associated with economic development, causing waterpollution in basins and the destruction of ecosystems, withthe risk of negative impact spreading to downstream areas.

●Engagement with agricultural production areas and provision of training
At tea farms in Sri Lanka, our support for obtaining certification

・ TNFD
TCFD

of which are likely to have a negative impact on agriculturalland and surrounding ecosystems.

Details of business opportunities
Climate change

Natural capital

Response strategy
Containers and packaging

Increasing interest in infectious diseases
caused by global warming [short to long term]
A report from the WHO forecasts that if climate change continues,
between 2030 and 2050 approximately 250,000 additional people
will die each year as a result of the spread of infectious diseases.
It also forecasts that the number of cases of dengue fever will
increase significantly. In Japan, the habitat of the Aedes albopictus,
which carries dengue fever, was confirmed to have spread as far

89

Climate change

Natural capital

Containers and packaging

Increase in heatstroke caused by global
warming [short to long term]in addition to yoghurt and supplement products. Additionally, in
our BtoB business, we licensed and provided materials to external

In order to offer products to more consumers, we began selling
immune-related beverages in 100ml PET bottles at generalmerchandise stores, drugstores, and convenience stores nationwide
from the end of March 2022. In anticipation of the expansion of thepartner companies in Japan and overseas and sold a wide range

market for immunity-related products, we invested approximately 10

14 Number of dengue fever cases reported to the WHOat the Kirin Beverage Shonan Plant, thus developing a supply system
for immune-related beverages in small PET bottles, including 100ml(Thousand cases)
500,000
1,000
900
800
700
600
500
400
300
200
100
0

Up to
approximately
4.4 billion people
Population at risk of
exposure to
the infection withthe dengue virus

5.2 million
cases
2.4 million
cases
More than 10 times
in just under 20 years
500,000
cases
2000

billion yen in enhancing manufacturing facilities for small PET bottles

2010

2019

2030 (Years)

Estimated based on the WHO’s “Quantitative risk assessment of the effects ofclimate change on selected causes of death, 2030s and 2050s” report.

PET bottles.

●Contribution with products to counter heatstroke

SALTY LITCHI is widely known as a beverage that prevents
heatstroke. At Kirin Beverage, “heatstroke countermeasure advisors,”
who have received certification for completing training courses
held by the Heat Illness Prevention - Communication Project, holdseminars on heat stroke countermeasures at schools and otherinstitutions. Through this initiative, we are raising awareness aboutmeasures against heatstroke and providing more people withcorrect knowledge and countermeasures.

Holistic Analysis of Risks
and Opportunities

Heatstroke cases are expected to increase as a result of the
impact of global warming. Based on observational and forecast dataon climate change from the National Institute for Environmental
Studies, under the RCP8.5 scenario (equivalent to the 4℃ scenario
in Kirin Group Scenario 3), the number of heat-related excess
deaths in Japan between 2080 and 2100 will be between almost
four times and over 10 times the number between 1981 and 2000.
In Kirin Group Scenario 3 (the 4℃ scenario), we have estimatedthat the Japanese market for beverages that prevent heatstroke
will grow by between 94 billion yen and 188 billion yen, assumingthat it correlates with the number of persons requiring emergency
services as a result of heatstroke caused by climate change.

which have a high level of brand awareness among consumers,

Activity

fever based on WHO scenarios concerning climate change and theimpact on people’s health project that a total of 1 billion people
will be at risk of infection in East and Southeast Asia. On the other
hand, if we take economic growth into consideration, we projectthat the population at risk will decrease by approximately 25% by
2050 in high-income countries in Asia and the Pacific and in East
Asia. It appears that economic growth may result in the expansionof markets related to immunity. In consumer surveys that we
conducted in Japan in 2021, people's health awareness was mostheightened in relation to their “interest in immunity.”such products under the Nama-cha and Gogo-no-Kocha brands,

of products, including snacks, protein, etc. As a result, annual sales
increased 40% in 2022 compared with the previous year.

・ TNFD
TCFD

north as Aomori in 2015.
The results of analysis of the impact of the spread of dengue

maintain the immune system in healthy people.” We began selling

Environmental
Strategy

WHO forecasts●Contribution to Health Science domain
In 2021, we expanded our lineup of FFC products that “helpMessage fromTop Management￨ Business opportunities ￨ Market

￨ Business opportunities ￨ Products and services

Climate change

Natural capital

Response strategy
Containers and packaging

Products that contribute to decarbonization[medium to long term]

CFP program operated and managed by the Japan Environmental

main brands, the first carbon-neutral beer in the U.S. Lion launchedManagement Association for Industry, however, product category

XXXX Zero, the first carbon-neutral alcohol-free beer in Australia.

rules (PCR) have been established for calculating the carbon

Lion sells Steinlager, which is certified as a zero-carbon under thefootprint of beer and soft drinks. The Kirin Group believes that it will

New Zealand government's Toitu program.

be possible for us to calculate the carbon footprint based on thisIn Japan, we have judged that consumers do not yet require

PCR.

decarbonized alcoholic or non-alcoholic beverages. Under theMore information→P.64

Details of business opportunities
Climate change

90

Natural capital

Response strategy
Containers and packaging

Sustainable logistics [short to long term]

Natural capital

Containers and packaging

Reduction of container and packaging raw materials
and stable procurement [short to long term]Society continues to demand that companies address the issue ofthe 3Rs for containers and packaging. At the same time, this willcontribute to reducing GHG emissions, make resource use more
efficient, and reduce costs.
Beer and soft drinks are products that represent mass production
and mass consumption, and they thus use a large number ofcontainers and packaging. The amount of paper containers used in
the Japan Non-alcoholic Beverages Businesses is 120,000 tonnes,
and the amount of PET bottles used is 65,000 tonnes.

emissions, such as a modal shift, joint deliveries, and more efficientloading. We actively promote joint deliveries with other companies
by positioning the logistics functions as non-competitive fields,
instead of competitive fields. For example, we are using jointdeliveries with railroad containers to transport products frombreweries and plants in the Kansai area to the Hokuriku region,and plan to complete a modal shift away from long-distance truck
transportation equivalent to 10,000 vehicles a year, which will
enable us to avoid long-distance truck transportation, and we
expect this to contribute to reducing annual GHG emissions byapproximately 2,700 tons.
More information→P.62~P.63●Reducing the weight of containers and packaging
The Kirin Group has the Institute for Packaging Innovation, where

bottles. Furthermore, “R100 PET bottles,” which use 100% recycled

we develop packaging and containers in-house, as one of the few

PET resin, make it possible to reduce the use of resin derived

research laboratories of its scale owned by a global food andfrom oil by 90% in manufacturing, and reduce GHG emissions frombeverage, and pharmaceutical company. We leverage this strength

manufacturing by 50-60%. And, the introduction of smart-cut

to promote lighter containers and packaging. For example, ourcartons, a type of cardboard packaging developed for alcoholic“204-diameter can lids” for aluminum beer cans have reduced

beverages in Japan, has contributed to cost savings of 0.17 billion

weight by approximately 29% for 350ml cans compared with when

yen per year, while lighter 2.0-liter PET bottles have contributed to

we used “209-diameter can lids.” We also use beer bottles thatcost savings of 0.16 billion yen per year.

reduce weight by 21% for large bottles and 19% for medium-size

More information→P.51~P.54

Holistic Analysis of Risks
and Opportunities

Climate change

efficient and contribute to reducing logistics costs and GHG

Activity

In order to reduce GHG emissions, it is important to improvetransportation efficiency. By doing this, we can also expect tosolve chronic driver shortages. Transportation distances frombreweries and plants to areas of consumption are tending tobecome longer owing to factors such as a decline in the numberof breweries and plants and the concentration of breweries andmanufacturing plants for small-lot product varieties. In recent
years, however, it has become difficult to secure drivers for longdistance journeys. It is inefficient to transport products forlong distances using trucks, and it increases GHG emissions.
Therefore, we must solve these problems related to logistics.

●Reduction in costs from more efficient transportation
We are implementing various initiatives to make deliveries more・ TNFD
TCFD￨ Business opportunities ￨ Resource efficiency

Environmental
Strategy

As interest in decarbonization grows, there is a possibility
that demand will increase for products that contribute todecarbonization or the shift to a low-carbon society. In the U.S.,
Australia, and New Zealand, carbon-neutral products are sold,and are somewhat popular in their respective markets. Althoughinterest in carbon-neutral products may not be high in Japanat present, awareness of the SDGs has grown rapidly. As such,it appears there is a strong possibility that interest in ethicalproducts will increase in the future.

●Decarbonization products
New Belgium Brewing successfully made FAT TIRE ALE, one of its

Message fromTop Management

Details of business opportunities￨ Business opportunities ￨ Energy source

Climate change

Natural capital

Response strategy
Containers and packaging

Reduction in reliance on fossil fuels [short tolong term]
It will be possible to stabilize our energy procurement

generated from renewable energy.

power generated from renewable energy.

It will be possible to lower our direct reliance on fossil fuels in ourIn the Kirin Group roadmap, we plan to make progress on energy

businesses by reducing our use of natural gas, and reduce ourconservation by 2030, while also shifting our energy mix toward

reliance on the fossil fuels of thermal power plants by increasing the“electric power” by promoting the shift to electric power for

proportion of renewable energy in the electric power that we use.

heating processes as much as possible, and utilizing electric power

More information→P.21,P.61

As prices of fossil fuels spike, and producing countries areconcentrated in places with high geopolitical risk, reducing
our reliance on fossil fuels will contribute to reducing risk.

Climate change

Natural capital

Containers and packaging

91

Agreement, and it refers to a type of business model where a PPA

which indicates the actual increase in the supply of renewablebusiness operator installs solar power generation facilities at noenergy. We will replace thermal power plants and contribute tocharge on land, buildings, etc., owned by the party that requires

creating a decarbonized society by increasing renewable energy

the power, and sells the power-generated by those facilities to thepower plant facilities in society.

party that requires the power.

Specifically, we have been introducing solar power generation at

Installing solar panels in our own breweries and plants ensures thatbreweries using the PPA model, and we have completed installation

the power plants can reliably add renewable energy, without any

at all breweries (excluding the Yokohama Brewery, where wenegative impact on the local community, while at the same time

introduced such facilities in-house). PPA stands for Power Purchaseenabling us to use such energy in a stable manner.
More information→P.21,P.60

Activity

There are various methods for introducing environmental
value, each of which have their own merits and demerits,
including in-house power generation, purchasing fromelectricity retailers, purchase of certificates that power isderived from renewable energy, and corporate PPAs. We will
acquire environmental value that satisfies the criteria set forthin RE100 by introducing renewable energy, but in Japan, we
expect the balance of supply and demand to grow tight overthe long term as demand for renewable energy increases.

●Use of renewable energy with a focus on additionality
When introducing renewable energy, we prioritize “additionality,”

・ TNFD
TCFD

Stable procurement of renewable energy[short to long term]

Environmental
Strategy

by reducing our use of fossil fuels and transitioning to
renewable energy.

●Achievement of an energy mix to achieve Net-Zero emissions
We will shift our energy mix to “electric power” and utilize electric

Message fromTop Management

Details of business opportunities￨ Business opportunities ￨ Resilience

Climate change

Natural capital

Response strategy
Containers and packaging

Strengthening the supply chain [short to longterm]
We expect that our initiatives targeting the procurementof agricultural raw materials and the reduction of Scope 3
emissions will contribute to strengthening the supply chain.
It is possible that by enhancing our engagement with suppliers
and producing areas, identifying various issues, and working
to solve them, it will contribute to improving the resilience of
suppliers, producing areas, and the Kirin Group.

●Enhancement of engagement
In addition to producing regions, we will enhance our engagementin addition to making requests and performing checks based onwith suppliers.

the Sustainable Supplier Code, and we base our engagement

Every year, we visit tea farms in Sri Lanka, where we engage with

with stakeholders on the results of these surveys. In addition, we

local managers. As part of these initiatives, we have gained anlaunched the Kirin Supply Chain Environmental Program in 2024

understanding of the severity of heavy rainfall associated with

together with suppliers with high emissions, and we will jointly solve

climate change that is affecting tea farms in Sri Lanka, which isissues as we target decarbonization through initiatives such as

contributing to strengthening our training to prevent soil outflow

the mutual disclosure of data, setting of targets that meet the SBT

and our water source conservation activities. We have conducted

standards, and the identification of new measures.

detailed surveys related to the reduction of Scope 3 emissions,

Holistic Analysis of Risks
and Opportunities

Details of business opportunities

Activity
Holistic Analysis of Risks
and Opportunities

Impact of climate change on corn
●Tigchelaar et al. (2018) “Future warming increases probability of globally synchronized maize production shocks.”Proceedings of the National Academy of Sciences Jun 2018, 115 (26) 6644-649.
（Tigchelaar et al. 2018）● MAFF (2008) “Recent Trends in Prices of Agricultural Products and Food”●Agriculture & Livestock Industries Corporation (2010) “FY2008 Overview of Survey on Actual Status of Sweetener Demand”●Agriculture & Livestock Industries Corporation (2019) Usage of Sugar and Artificial Sweeteners Among Food Manufacturers

・ TNFD
TCFD

Impact of lower yields on procurement costs for agricultural products in 2050 and p.79 Estimation of the impact on agricultural product procurement costs from carbon pricing in 2050
● Barley: We calculated the impact by multiplying standard prices of beer per country, as indicated by the results of research using economic models from Xie, et al., by the future rates of change
in beer prices (we assumed that beer prices would generally be linked to barley procurement costs) Decreases in global beer supply due to extreme drought and heat, Nature Plants, VOL.4,
NOVEMBER 2018, 964–973（ Xie, et al. ）● Other than barley: We calculated the impact using rates of change in costs associated with agricultural products from climate change (impact on yields) and mitigation measures (carbon pricing), as
indicated in the results of research from Hasegawa et al., and presented in the IPCC “Special Report on Climate Change and Land (SRCCL)”
IPCC（2019）Climate Change and Land: an IPCC special report on climate change, desertification, land degradation, sustainable land management, food security, and greenhouse gas fluxes interrestrial ecosystems Chapter 5: Food Security and Risk of increased food insecurity under stringent global climate change mitigation policy. Nature Climate Change,volume 8, pages 699–703（Hasegawa T, Fujimori S, HavlíkP, Valin H, BodirskyBL, DoelmanJC, FellmannT, Kyle P et al. 2018）

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Impact of climate change on yields of the main agricultural products● Prioritizing climate change adaptation needs for food security in 2030. (Lobell, D.B. et al.)● Potential impacts of climate change on agricultural land use suitability : barley (Van Gool, D. and Vernon, L.)● Climatic changes and associated impacts in the Mediterranean resulting from a 2℃ global warming. (Giannakopoulos, C., Le Seger, P., Bindi, M.,Moriondo, M., Kostopoulou, E. & Goodess, C. )● Negative impacts of climate change on cereal yields: statistical evidence from France (Gammans M. et al.)● Extension of the CAPRI model with an irrigation sub-module (Blanco, M. et al.)● Crop responses to temperature and precipitation according to long-term multi-location trials at highlatitude conditions. (Peltonen-Sainio, P., Jauhiainen, L. & Hakala, K.)● Decreases in global beer supply due to extreme drought and heat (Xie, W. et al.)● Climate change, wine, and conservation (Lee Hannah, Patrick R. Roehrdanz, Makihiko Ikegami, Anderson V. Shepard, M. Rebecca Shaw, Gary Tabor, Lu Zhi, Pablo A. Marquet, and Robert J. Hijmans)● Climate change decouples drought from early wine grape harvests in France (Benjamin I. Cook & Elizabeth M. Wolkovich)●Vineyards in transition: A global assessment of the adaptation needs of grape producing regions under climate change (David Santillán, Ana Iglesias, Isabelle La Jeunesse, Luis Garrote, Vicente Sotes)●Assessment of climate change impact on viticulture:Economic evaluations and adaptation strategies analysis for theTuscan wine sector (Iacopo Bernettia, Silvio Menghinia, Nicola Marinellia, Sandro
Sacchellia,Veronica AlampiSottinia)●The impact of climate change on the global wine industry: Challenges &solutions (Michelle Renée Mozell, Liz Thachn)● Climate change impacts on water management and irrigated agriculture in the Yakima River Basin, Washington, USA (Vano, J.A., et al.)●The impact of climate change on the yield and quality of Saaz hops in the Czech Republic (Martin Mozny, Radim )Tolasz, Jiri Nekovar, Tim Sparks, Mirek Trnka, Zdenek Zalud●Vulnerability of Sri Lanka tea production to global climate change (M. A. Wijeratne)● Observing climate impacts on tea yield in Assam, India (J.M.A. Duncan, S.D. Saikia, N. Gupta, E.M. Biggs)●THE FUTURE OF TEA A HERO CROP FOR 2030 (Ann-Marie Brouder, Simon Billing and Sally Uren)●IDENTIFICATION OF SUITABLE TEA GROWING AREAS IN MALAWI UNDER CLIMATE CHANGE SCENARIOS (UTZ IN PARTNERSHIP WITH CIAT)● Climate change adaptation in the Kenyan tea sector Ethical Tea Partnership)● Diversity buffers winegrowing regions from climate change losses. 2864-2869, PNAS, February 11, 2020. （Morales-Castilla, et.al. ）●Zebish et al (2005) “Climate Change in Germany Vulnerability and Adaptation of climate sensitive Sectors”● FAO “Food and agriculture projections to 2050”

Message fromTop Management

Reference documents

Financial impact of transition risks related to natural capital (procurement of certified products)● Estimated by multiplying by royalties, etc., if coffee and tea leaves are procured as certified products.
Financial impact of transition risks related to natural capital (reduction in agricultural chemicals and chemical fertilizers at tea farms)● Estimated based on the results of on-site interviews, taking into account prices of chemical and organic fertilizers, as well as respective personnel expenses for the application of these fertilizers.

Holistic Analysis of Risks
and Opportunities

Increase in heatstroke caused by global warming [short to long term]●S-8 2014 Report by Project Team of Comprehensive Study on Impact Assessment and Adaptation for Climate Change● National Institute of Infectious Diseases, Expansion of Aedes albopictus in Japan (IASR Vol. 41 p92-93: June 2020 edition)

Activity

Increasing interest in infectious diseases caused by global warming●WHO: “Quantitative risk assessment of the effects of climate change on selected causes of death, 2030s and 2050s”●WHO: “Dengue and severe dengue” 10 January 2022

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TCFD

External diseconomies related to Kirin Group PET bottles
We estimated that impairment losses related to marine ecosystem services would be approximately 0.36 to 3.56 million yen (approximately 3,300 US$ to 33,000 US$) per ton of plastic in 2011, based on theestimations of Beaumont et al. We estimated that the median proportion of PET bottles that flowed into the ocean from Japan would be 0.5%, based on the “Annual Report on the Recycling of PET Bottles”
by the Ministry of the Environment. We set the total amount of PET materials used by Kirin Group major domestic companies at 66,894 tons in 2018, and multiplied this amount by the above estimates.
● Beaumont et al. (2019) Global ecological, social and economic impacts of marine plastic● Ministry of the Environment (2018) Recent Trends Surrounding Ocean Waste, and the Council for PET Bottle Recycling, (2018) Annual Report on the Recycling of PET Bottles

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Assessment of impact of carbon pricing
Estimation of impact of carbon pricing
1) We calculated the rate of decline in future electric power emission factors from the IEA “World Energy Outlook 2019” Annex A (Current Policies Scenario and SD Scenario).
2) We calculated actual electric power emission factors from the actual energy usage and GHG emissions of the Kirin Group in the base year (2019), and estimated future electric power emission factors
under the two scenarios (Current Policies Scenario and SD Scenario) by multiplying actual emission factors by the rate of decline in emission factors calculated in Step 1.
3) We used the electric power emission factors that we calculated to forecast GHG emissions in the Kirin Group in 2030 and 2050. We categorized these forecasts depending on whether or not we takemeasures to reduce emissions.
4) We applied the IEA WEO 2019 Current Policies Scenario to the Kirin Group scenario 3, and the SD Scenario for the Kirin Group scenario 1, while also setting the IPCC “Special Report on Global Warmingof 1.5℃” as our new 1.5℃ scenario, and we set the carbon prices indicated in each data source as the basis for the future carbon prices for each scenario (IEA WEO 2019 P758 and IPCC Special Report on
Global Warming of 1.5℃ 2.5.2.1 Price of carbon emissions).
5) We calculated the future impact by multiplying the forecasts of future GHG emissions that we calculated in Step 3 by the carbon prices that we set in Step 4. We calculated the increase in costs if we did
not implement initiatives to reduce GHG emissions from the difference in impact depending on whether or not we take measures to reduce emissions.

Message fromTop Management

Impact of climate change on high-fructose corn syrup and soybeans●The impact of climate change on Brazil's agriculture（Zilli et al.2020）● Productivity and welfare impact of climate change in sugarcane and cotton producing regions of Ethiopia（Weldesilassie et al.2015）●Assessing the impact of climate change on sugarcane and adaptation actions in Pakistan（Farooq and Gheewala 2020）●Simulating the Impacts of Climate Change on Sugarcane in Diverse Agro-climatic Zones of Northern India Using CANEGRO-Sugarcane Model（Sonkar et al. 2020）● Effect of climate change on cash crops yield in Pakistan（Akbar and Gheewala 2020）● Future climate change projects positive impacts on sugarcane productivity in Assessing the impact of climate change on wheat and sugarcane with the AquaCropmodelsouthern China（Ruan et al. 2018）●along the Indus River Basin, Pakistan（Alvar-Beltrán et al. 2021）● Climate Change and Potato Productivity in Punjab—Impacts and Adaptation（Rana et al. 2020）●Impacts of Climate Change on the Potential Productivity of Eleven Staple Crops in Rwanda（Austin et al. 2020）● Predicting the response of a potato-grain production system to climate change for a humid continental climate using DSSAT（Tooley et al. 2021）● Potential Benefits of Potato Yield at Two Sites of Agro-Pastoral Ecotone in North China Under Future Climate Change（Tang et al. 2020）● Response of potato biomass and tuber yield under future climate change scenarios in Egypt（Dewedar et al. 2021）●Impacts of Climate Change on the Potential Productivity of Eleven Staple Crops in Rwanda（Austin et al. 2020）● Estimating cassava yield in future IPCC climate scenarios for the Rio Grande do Sul State, Brazil（Tironi et al. 2017）●Is Cassava the Answer to African Climate Change Adaptation?
（Jarvis et al. 2012）● Estimation of potential changes in cereals production under climate change scenarios（Tatsumi et al. 2011）● Global crop yield response to extreme heat stress under multiple climate change futures（Deryng et al. 2014）●The combined and separate impacts of climate extremes on the current and future US rainfed maize and soybean production under elevated CO2（Jin et al. 2017）● Climate impacts on crop yields in Central Argentina. Adaptation strategies（Rolla et al. 2018）● Mitigating future climate change effects on wheat and soybean yields in central region of Madhya Pradesh by shifting sowing dates（Balvanshiand Tiwari 2019）● Changing yields in the Central United States under climate and technological change（Burchfield et al. 2020）