May 2023
Human Impact Assessment in Sri Lankan Tea Plantations
In April 2021, the Kirin Group revised the Kirin Group Sustainable Procurement Policy *1 and the Kirin Group Sustainable Supplier Code *2 . Based on the results of theevaluation, we have set the implementation of ongoing human rights due diligencein the supply chain of procured goods with high human rights risks as an indicatorof our CSV commitment in the 2022 Mid-Term Business Plan. In November 2022, we
conducted a human rights impact assessment (HRIA *3 ) of our supply chain in SriLanka, which has the highest procurement volume and highest human rights risk bycountry, through a third-party organization, Preferred by Nature *4 , and received a report on the audit results in January 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 tea plantations, which are at the upstream of the supply chain, and selected from among the non-certified Rainforest Alliancefarms that were judged to be relatively high-risk, those with the highest procurement volumes.
The assessment was conducted by Preferred by Nature auditors with the cooperation of ourdirect primary suppliers and local suppliers, using the assessment methods specified in theKirin Group Sustainable Supplier Code and Agricultural Sustainability Standard Requirements.
The assessment was conducted by Preferred by Nature auditors.
Tea leaf supply chain
In the Tea Leaf Supply Chain
Scope of Human Rights Impact Assessment

On-site Audit inspection
Tea farms

Processing

Tier2 SupplierTier1 Supplier(brandplant<This HRIA>
・Desktop survey with checklist
・Direct observation in the field・Inter views with workers

Kirin<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 Sessionof beer)

２．

Scope of coverage

The audit scope covers the tea plantation and tea processing unit/factory of the plantation inSri Lanka Candy area.
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 of Conduct
and the Agricultural Sustainability Standard Requirements was prepared and used for the onsite audit. The evaluation checklist consisted of 95 questions on "Management," "Environment
and Occupational Health and Safety," "Workers' Rights," "Issues Related to Migrant and Temporary Workers," and "Employment Conditions," and the evaluation was conducted in the following two steps.
(i) A desktop survey, using an evaluation checklist to review the farm's policies and procedures prior to the field visit.
(ii) Conducted a 2-day on-site evaluation and direct observation by Preferred by Nature's audit
team, interviewing and reviewing evidence from a total of 31 workers*, union representatives,supervisors, committee representatives, facility and department managers, male and female.
*Includes factory workers and employees involved in plucking tea leaves in the fields.
５．

Assessment Results

The results of the evaluation showed both good practices and issues that need to be improved.
Among the evaluation items, good practices were found to be implemented in Management,
EHS, and First Aid. On the other hand, issues were found in some areas such as work rules,labor contracts, and wages.

６．

Future Steps

In order to confirm the facts and take corrective measures for the issues discovered, the Kirin
Group has shared the audit report with suppliers, formulated a response policy based on expert opinions, and initiated communication with the company that owns the plantation. Wewill place the highest priority on addressing the issues related to wages and benefits, as wellas other labor-related issues, in accordance with the schedule below. The progress of our efforts will be disclosed on our website in a timely manner.
Countermeasure

Implementation period
January 2023

Share audit reports with tier1 and tier2 suppliers.

(Completed)February to March

Development of internal response policies

2023 (Completed)

Share audit reports to the farm's management company, as wellas confirm facts, investigate causes, and request improvements.
Periodically check the status of improvement activities.

April to May 2023
From June 2023
September to Novem-Site visit to check improvement statusber 2023

Progress report on improvement initiatives (on our website)

January 2024

*We plan to conduct a survey of the current status of other major supplier farms based on thisresponse.

Record of Social Contribution Activities

Personal protectiveequipment

First aid kit available free of charge to workers being organized