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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

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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)

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Scope 1
(Emissions from use of fuel)

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Scope 2 (Emissions related
to purchase of power and steam)

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5,000

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4,000

Products and services purchased(Category 1)

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3,000

Transportation and delivery (upstream)(Category 4)

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2,000

Transportation and delivery (downstream)(Category 9)

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1,000

Product use/disposal(Category 11, 12)

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0

Other
(Category 2, 3, 5, 6, 7, 8, 10, 13, 14, 15)

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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