Kirin Holdings Company, Limited (2020 Green Bond)
Type of Engagement: Annual Review
Date: June 28, 2022
Engagement Team:
Kosuke Kanematsu, kosuke.kanematsu@sustainalytics.com, (+81) 3 4571 2277
Marie Toyama, marie.toyama@sustainalytics.com, (+81) 3 4510 7394
Ayaka Okumura, ayaka.okumura@morningstar.com

Introduction
In November 2020, Kirin Holdings Company, Limited (“Kirin Holdings”) issued a green bond aimed at financing
and refinancing expenditures related to procurement of recycled PET resin, and introduction of heat pumpsystems at factories (JPY 100 billion 5-Year Green Bond, hereinafter the “2020 Green Bond”). As of December
31, 2021, the proceeds have been allocated to projects that meet the Eligibility Criteria. In June 2022, Kirin
Holdings engaged Sustainalytics to review the projects funded through the issued 2020 Green Bond andprovide an assessment as to whether the projects met the Use of Proceeds criteria and the Reporting
commitments outlined in the Kirin Holdings Company, Limited Green Bond Framework (“Framework”). This is
Sustainalytics’ second annual review of Kirin Holdings’ 2020 Green Bond following the previous review in June
2021.1

Evaluation Criteria
Sustainalytics evaluated the projects funded with proceeds from the 2020 Green Bond between November
2020 and December 2021 based on whether the projects:
1.
2.

Met the Use of Proceeds and Eligibility Criteria outlined in the Framework; andReported on impact indicators for each Use of Proceeds criteria outlined in the Framework.

Table 1 lists the Eligibility Criteria and associated impact indicators for the Use of Proceeds category to which
the proceeds were allocated.
Table 1: Use of Proceeds, Eligibility Criteria, and associated impact indicators
Use of Proceeds

Eligibility CriteriaImpact indicators

Circular Economy
Adapted Products,Production
Technologies andProcesses
Energy Efficiency

Procurement of recycled PET resin

GHG emissions reduction

Introduction of heat pump systems atfactories

Conversion rate of PET bottle resin torecycled resin (t)Issuing Entity’s Responsibility
Kirin Holdings is responsible for providing accurate information and documentation relating to the details ofthe projects that have been funded, including description of projects, amounts allocated, and project impact.

Independence and Quality Control
Sustainalytics, a leading provider of ESG and corporate governance research and ratings to investors,
conducted the verification of Kirin Holdings’ 2020 Green Bond Use of Proceeds. The work undertaken as partof this engagement included collection of documentation from Kirin Holdings employees and review of

1 Sustainalytics’ previous annual review of Kirin Holdings’ 2020 Green Bond is available at:Annual Review (June 2021) https://www.sustainalytics.com/docs/default-source/backend/kirin-holdings-company-limited-green-bond-annualreview.pdf?sfvrsn=897c1082_1© Sustainalytics 2022

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

Conclusion
Based on the limited assurance procedures conducted,2 nothing has come to Sustainalytics’ attention thatcauses us to believe that, in all material respects, the reviewed bond projects, funded through proceeds ofKirin Holdings’ 2020 Green Bond, are not in conformance with the Use of Proceeds and Reporting Criteria
outlined in the Framework.

Detailed Findings
Table 2: Detailed Findings
Evaluation
Criteria

Procedure Performed

Factual Findings

Use ofProceeds
Criteria

Verification of the projects funded by the2020 Green Bond between November 2020and December 2021 to determine if projectsaligned with the Use of Proceeds Criteria
outlined in the Framework and above inTable 1.

All projects reviewed
complied with the Useof Proceeds criteria.

ReportingCriteria

Verification of the projects funded by the2020 Green Bond between November 2020and December 2021 to determine if theimpact of projects was reported in line with
the impact indicators outlined in theFramework and above in Table 1. For a listof impact indicators reported please refer toAppendix 2.

All projects reviewed
reported on impact
indicators per Use ofProceeds criteria.

Error orExceptions
Identified
NoneNone

2 Sustainalytics limited assurance process includes reviewing the documentation relating to the details of the projects that have been funded, including

description of projects and project impact, which were provided by the Issuer. The Issuer is responsible for providing accurate information. Sustainalytics
has not conducted on-site visits to projects.
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Kirin Holdings Company, Limited

Appendices
Appendix 1: Allocation of Green Bond Proceeds
Use of Proceeds Category

Description

Net Bond Proceeds
Allocation(billion JPY)3

Circular Economy AdaptedProducts, Production
Technologies and Processes

Procurement of recycled PET resin for
PET bottle production

32

Energy Efficiency

Introduction of heat pump systems at factories

2Total Net Bond Proceeds Allocated:

34

Total Net Bond Proceeds Unallocated:

66

Total Net Bond Proceeds from Green Bond issuance:

100

Appendix 2: List of Project Impact
Use of Proceeds Category

Circular Economy Adapted
Products, Production
Technologies and Processes
Energy Efficiency

Impact Indicators4

Conversion rate of PET bottle resin to recycled resin5: 4.8%

GHG emissions reduction6: 2,500t

3 The amount of net bond proceeds allocated to each category is rounded down to the nearest million JPY.
4 Impact Reporting by Kirin Holdings is available at: https://www.kirinholdings.com/en/impact/files/pdf/impact_report_2021en.pdf
5 Conversion rate of PET bottle resin to recycled resin across the Kirin Group’s operations
6

GHG reductions in fiscal year 2021 (January 1, 2021 - December 31, 2021) by the introduction of heat pump systems at factories
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Kirin Holdings Company, Limited

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

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Kirin Holdings Company, Limited

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