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 rawmaterial, to asustainable state

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

P.46
P.46

Water source forest conservation activities
Grassland conservation activities torecharge groundwater

P.46

Production

Rawmaterials
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 inSri 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

32023
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

3WaterResources

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, wenow 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 ofconditions 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 theall 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 thatSummit

2524

Number of residents to educate
the importance of water

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

20151512Tea farmSpring（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 15,000people, 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

10553

River0A 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 toIn 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, westep 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 aregroundwater, 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

BeerBlowing

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 relatedprocesses, such as cleaning, cooling, and pasteurizing. Lion isYokohama 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

WaterResources

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 agriculturaltreatment and pressure flotation into fertilizer and soil conditioner.

products such as malt which is grown by absorbing CO2 from theThe 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.

Steamboiler
Drainage 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

Anaerobictreatment facility

Aerobictreatment 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

44,10020,000102019

2020

2021

2022

2023

5.30 5.31

20,000

5.37

5.60

5.83

15,000 34,900

64

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

5,000001990

2019

2020

2021

2022

2023

23.80

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
1500

002019

2020

2021

2022

2023

・ TNFD
TCFD

020(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

EnvironmentalStrategy(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 GroupMessage 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
02019

2020

2021

2022

2023

060

120,000

50

100,000

50

80,00040

45

4730,00020,00037

28,51923,74323,963

19,26410,000040
30

38,464

201020192020

Cyclical use ratio

2021

2022

2023

0

65

60,000 105,433

63

89,78865

88,80566
59

67,99060

83,04230
20

40,00020,0000（%）
70

1015,901

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

WaterResources（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)