February 2024
Human Impact Assessment of the Argentine Grape juice Processing Factory
The Kirin Group revised the Kirin Group Sustainable Procurement Policy *1 and theKirin Group Sustainable Supplier Code *2 . Based on the results of the evaluation,
we have set the implementation of ongoing human rights due diligence in thesupply chain of procured goods with high human rights risks as an indicator ofour CSV commitment in the 2022 Mid-Term Business Plan. In 2023, we conducteda human rights impact assessment (HRIA *3 ) of our supply chain in Argentine,
which has the highest procurement volume and highest human rights risk bycountry, through a third-party organization, Preferred by Nature *4 , and received areport in November 2023.
*1 Kirin Group Sustainable Procurement Policy *2 Kirin Group Sustainable Supplier Code
*3 HIRA: Human Rights Impact Assessment*4 Preferred by Nature: a non-profit organization working to support better land management and businesspractices that benefit people, nature, and the climate in 100+ countries.

１．

HRIA Scope and Methodology

This human rights impact assessment was conducted on a grape juice processing factorywith the highest procurement volumes. The assessment was conducted by Preferred by
Nature auditors with the cooperation of our direct primary suppliers and local suppliers,
using the assessment methods specified in the Kirin Group Sustainable Supplier Code.
Grape Juice Supply Chain
In the Grape Juice Supply Chain
Scope of Human Rights Impact Assessment
Farm

On-site Audit inspection

Farm

Processing

Tier1 Supplier

KIRIN

Farm

<This HRIA>
・ Desktop survey with checklist
・ Direct observation in the field・ Interviews with workers<To Tier 1 Supplier>・Explanation of the Kirin Group Sustainable Supplier Code of Conduct・Submission of Supplier Code Checklist and Letter of Acceptance・Implementation of Common SAQ・Supplier Information Session

２．

Scope of coverage

Grape juice processing factory of the Mendoza Province, Argentine.
３．

Evaluation Topics

The topics for evaluation were Management, Labor Management Dialogue, Environment,
Health, and Safety (EHS), Hygiene, Disaster Prevention Management, First Aid, Food Safety,Hiring/Recruiting, Organization Chart, Work Rules and Labor Contract, Harassment /Abuse,
Work Records, and Wage.
４．

Assessment Methodology

The evaluation checklist specified in the Kirin Group Sustainable Supplier Code ofConduct was prepared and used for the on-site audit. The evaluation was conductedin the following two steps.
(i) A desktop survey using an evaluation checklist to review the factory’s policies
and procedures prior to the field visit.
(ii) Conducted a 1.5-day on-site evaluation and direct observation by Preferred by
Nature's audit team, interviewing and reviewing evidence from workers, union
representatives, supervisors, committee representatives, facility and department
managers, male and female.
５．

Assessment Results

Although there were some recommendations regarding documentation andsupplier management systems, no significant non-compliance was found. Good
practices were found in quality management systems and environmental
certification efforts.
6.

Dialogues with Stakeholders

In addition to auditor interviews in the audit, we conducted dialogues withmultiple workers at the grape juice processing factory on the theme of labor
safety and health, both face-to-face and online. From the workers, we obtained
hearing results such as measures taken for training for earthquakes and fires, andsatisfaction with the flexibility of working hours.

７．

Future StepsFor the identified issues, we have started communication by sharing the audit reportwith the primary supplier to conduct fact-checking and have formulated response
policies for improvement. Regarding supplier management systems, improvements
are already in progress. The progress of the initiatives will be disclosed in a timely
manner on our company's website.

Countermeasure

Implementation period

・Share the audit report and request improvements

December 2023

to the primary supplier and the factory(Completed)・Develop measures and initiatives

January 2024
(Completed)

・Progress confirmation of the initiatives

From January 2024

・Progress report on initiatives (on our website)

June 2024