Message from Top Management

Overview of the Kirin Group

INPUT

BUSINESSOUTPUT / OUTCOME

Special Feature

Governance

Strategies and Reviews ofOperating Companies

TCFD・TNFD

Reference

Disclosure Based on the TCFD and TNFD Frameworks
Impact of Climate Change and Natural Capital on Businessand Kirin Group’s Holistic Approach
The Kirin Group’s businesses use natural capital as an input to add and deliver values to customers. The businesses make negative impacts, suchas GHG emission and inappropriate disposal of containers of products, on the nature capitals through their value chains. The negative impacts
consequently influence long term availability of raw materials. The Kirin Group’s attitude is to understand interrelations and trade-offs between
business activities and environmental problems and to apply holistic approaches to solve the problems.
The Kirin Group analyzes the risks and opportunities that various sustainability issues, including environmental challenges, pose to society
and the company, and reflects the risks and opportunities in its strategies to enhance resilience. It then discloses information to various stakeholders
in accordance with the frameworks recommended by the Task Force for Climate-related Financial Disclosure (TCFD) and the Task Force for Naturerelated Financial Disclosure (TNFD).

Disclosure Framework
The Kirin Group has disclosed climate related financial information
since 2018 in conformity with the recommendations published by
the TCFD in 2017. The Kirin Group was a global pioneer in disclosing
information based on the “LEAP” approach advocated in the beta
version of the TNFD framework in 2022. From 2023, we began
holistic information disclosure on climate change and natural capital
based on both frameworks.
This section describes how the Kirin Group is analyzing
and assessing climate change and natural capital challenges,
enhancing resilience, and driving a holistic transition strategy to leada decarbonized society and address natural capital challenges ina nature positive manner, in accordance with new TCFD guidance

released in October 2021 and TNFD recommendations released in
September 2023.
Details are available in our Environmental Report and on thecompany’s website.

New TCFD guidance
Guidance on Metrics, Targets, andTransition Plans (October 2021)
Implementing the Recommendationsof the Task Force on Climate-related
Financial Disclosures (October 2021)

TNFD
recommendations
Taskforce on Nature-related
Financial Disclosures (TNFD)
Recommendations（September 2023）
Taskforce on Nature-related Financial
Disclosures

GovernanceNovember 13
The Kirin Group started extensive reviews of non-ﬁnancial information disclosure-related issues for the Group and each operating company, with a view toward conformity with
the International Sustainability Standards Board (ISSB) and ensuring smooth and accurate non-ﬁnancial disclosure.
It was reported to the board that the Group’s ESG rating is roughly in line with global alcoholic beverage companies and that the alcohol sector is recognized as a higher risk
sector in the ratings.
The board conﬁrmed that the Kirin Group will shift its business portfolio to health science segment and improve its reputation as a leading company in chemical recycling of PET
bottles, nature positive approach, and disclosures based on TNFD framework, aiming to become a global leader in CSV,.

Executive structure
In the Kirin Group, the Group Executive Committee deliberates and makes resolutions concerning the setting and revision of important targets, aswell as investment plans, related to environmental issues as a whole, such as climate change, natural capital, and the circular economy. The Group
Executive Committee receives reports from operating companies and divisions on the status of achievement of targets and risks, and supervises
these operating companies and divisions.
The Group CSV Committee has been established to discuss environmental and other CSV issues across the Kirin Group. The committee isan advisory body to the CEO and is chaired by the CEO of Kirin Holdings, with its members being the CEOs of major Kirin Group companies and senior
officers of Kirin Holdings. In 2022, Kirin Holdings increased the frequency of meetings of the Group CSV Committee and newly established the Group
Environmental Meeting under the Group CSV Committee. Through this structure, Kirin Holdings is strengthening its initiatives targeting sustainabilityrelated issues, as required by Japan’s Corporate Governance Code following revisions in 2021.
Committees

Group CSV
Committee

Group
Environmental
Meeting

Chairperson

Committee Members

Main agenda

Meeting Frequency

CEO of Kirin
Holdings

Executive officers of Kirin Holdings
CEOs of the Group’s major operating companies inJapan and overseas

 xchange of opinions on Group CSV policies, strategies, and action plans
EMonitoring the status of implementation of CSV-related initiatives at
Group companies
Reporting from affiliated meetingsThree times a year; held
once as the Group ESG
meeting

Executive officer
of CSV

Executive officer in charge of Supply Chain
Management strategy of KH
General Manager of CSV Strategy Department of KH
General Manager of Corporate Strategy Department
of KH
General Manager of Finance Department of KH
General Manager of Research & Development
Division of KH
General Manager of Procurement Department of KH
General Manager of Corporate Communications
Department of KH
Deputy General Manager of IR Section of KH
General Manager of General Manager of Technology
Development Department of Kirin Brewery

 onitoring progress of various road maps for the realization of the Kirin
MGroup Environmental Vision 2050 and exchanging opinions on policies,
strategies, and plans

Twice a year

Supervisory structure
At the Kirin Group, the Board of Directors discusses and decides the basic policy for all environment-related issues, medium- and long-term strategies,
annual plans, and important non-financial targets and KPIs, including environmental targets. It supervises the execution of the Group’s environmental
operations, including climate change, natural capital, and a circular society, on a quarterly basis through monitoring the progress of non-financial targets.
The Board monitors risks and opportunities assessed and identified by operating companies, based on reports from the Group Risk andCompliance Committee Secretariat. It also makes resolutions concerning important risks (including environmental management strategies, action plans,
the status of progress, and scenario analysis results) identified in risk management processes and materiality assessments. The Board supervises theeffectiveness of environmental management through these discussions and reports from subordinate organizations.

Performance-linked remuneration
Considering the importance of environmental issues, including climate change, we have established environmental KPIs (water efficiency (Australia),
percentage of recycled resins used in PET bottles (Japan), GHG emission reduction (global, Scope 1+2)) as management indicators in our MediumTerm Business Plan and set executive remuneration to be linked to the evaluation of their achievement.
Environmental issues, including climate change, are targeted as non-financial KPIs for Group companies, and the KPIs are reflected in eachcompany’s management plan and senior officers’ performance evaluations, applying CSV commitment management process.

Excerpts of the reports of the Board of Directors for fiscal 2023 (Held 3 times)
June 16
To promote environmental investment, the Kirin Group will plan to introduce a management system where execution of environmental investments and performance evaluations
are linked. Additional environmental investments will be determined by closely monitoring technological innovation and energy price trends.
The Kirin Group will consider introducing a framework that can respond to business attributes and business proﬁt levels that vary by industry and region.
The board conﬁrmed the practicality of a process whereby proﬁts and GHG reductions (and the investments and costs required to achieve them) are agreed simultaneously andset between Kirin Holdings and Group companies.

July 31
Based on the results of a desktop survey of changes in the internal and external environment and employee questionnaires, the board decided to update GMM for the next 2025
Medium-term Business Plan instead of the 2024 plan.
It was reported to the board that in the EU, the Corporate Sustainability Reporting Directive (CSRD) will gradually make it mandatory for companies outside the EU to also disclose
information in line with the European Sustainability Reporting Standards (ESRS) starting this year. Although the starting year differs depending on the size of the company,
the European subsidiaries of Kyowa Kirin and Kyowa Hakko Bio are subject to disclosure requirements and will need to take action in the future.
It was reported to the board that the Kirin Group was ahead of its peers in disclosing environment-related ﬁnancial information integrating TCFD and TNFD beta versions (September 2023) in its Environmental Report.

82

KIRIN INTEGRATED REPORT 2024

Risk Management
For risks such as climate change, which will have an extremely large impact on our businesses if they occur, even though the probability ofoccurrence is uncertain, we have adopted a new approach to identify and examine important risks by setting scenarios and using them to analyze
and assess risks. In scenario analysis, we utilize various research papers, science-based risk assessment tools such as Aqueduct,*1 etc. The Group
Environmental Meeting and the Group CSV Committee share and discuss risks and opportunities identified through scenario analysis, then submit
and report them to the Board. The Group Risk and Compliance Committee Secretariat also receives reports on such risks, and manages them
together with other risks.
Additionally, we appropriately reflect internal examples of sustainability-related risks, such as responses to climate disasters, in annual risk
and compliance training for all employees, and share this information within the Group in order to strengthen resilience across the Group as a whole.
*1 A
 queduct is a data platform run by the World Resources Institute (WRI), an environmental research organization. Aqueduct is comprised of tools that help companies, governments,
and civil society understand and respond to water risks.

KIRIN INTEGRATED REPORT 2024

83

Message from Top Management

Overview of the Kirin Group

INPUT

BUSINESSOUTPUT / OUTCOME

Results of Impact Assessment and Response Strategy
Since 2017, we have continuously conducted climate change scenario analysis, which has improved our level of understanding and strategies related
to risks and opportunities posed by climate change. In addition to our own production sites and breweries, we analyze the financial impact of factors
such as yields of agricultural products, procurement costs, and carbon pricing, etc. The financial impacts related to natural capital and containers andpackaging are estimated based on the following approach, considering factors such as dependency and impact on nature.
The financial impact and strategy are as follows.

Business Risks/Social Issues

Financial impact

4°C scenario: Approx. 3.2 billion yen to 10.4 billion yen (2050)*2
Disruptions of operations owing to floods

Approx. 1 billion yen (200-year disasters, total of 20 locations inJapan)

Sharing flood knowledge
Equipment and facility measures against flooding

Disruptions of operations owing to drought

Approx. 0.03 billion yen to 0.6 billion yen

Sharing drought knowledge
Development and deployment of water usage reduction
technology

Negative impact of PET bottles

Approx. 1.1 billion yen

Expansion of mechanical recyclingEstablishment of chemical recycling manufacturing technology

2°C scenario: Approx. 1.1 billion yen to 3.0 billion yen

Financial impact of energy due to carbon pricing

Business
opportunities

2°C scenario: Approx. 7.7 billion yen
2°C scenario: Approx. 0.9 billion yen to 2.1 billion yen

Financial impact of agricultural products due to carbon pricing

4°C scenario: Approx. 4.0 billion yen to 7.6 billion yen (2050)*4

Approx. 0.06 billion yen upport for farms to acquire certification for sustainableS
agriculture
Procurement of sustainable raw materials

Maintenance of immune function in healthy people

Market for immunity and health supplements
Approx. 28,961.4 million US dollars (2030)

Contribution in the Health Science domain

Prevention of heatstroke

Market for non-alcoholic beverages that prevent heatstroke: Approx.
94.0 billion yen to 188.0 billion yen (2100, 4°C scenario)

Contribution in heatstroke-prevention beverages

Reduction of food waste

Approx. 0.9 billion yen

Reduction of product disposal

Reduction in costs associated with the reduction of chemicalfertilizers and pesticides for coffee farms in Vietnam

0.11 billion yen*

Enhancement of engagement

5*3 Cases when GHG emissions are not reduced*5 Estimated based on interviews with local coffee farms

Adaptation/
Mitigation

Kirin Holdings estimated the impact of the sale of Lion’s non-alcoholic beverages businessin 2021 and the Myanmar business in 2023. Physical and transitional risks have not changed
significantly. Based on a retrospective review of the impact on the GHG emission reduction targetsof the divested businesses back to the base year, we have determined that there is no need torestate the reduction targets.
The company estimated exposure to general 200-year disasters (total of 20 business sites
in Japan) is as follows. The company also investigated and analyzed the possibility of being forced
to discontinue the use of boilers, delivery trucks, and other equipment before the end of their service
life owing to laws and regulations, etc. Kirin Holdings believes that it is unlikely that there will be amaterial financial impact on our assets due to tightening of the laws. For reference, the company
discloses this information as “Residual value of related facilities”.
In scenario analysis, the company has utilized multiple research findings and included
differing views, but taken as a whole, the findings show that the impact of climate change on
agricultural products and water is inevitable, which is consistent with the above recognition.
Although the company has judged that there will be no major impact that will change thestructure of its industry, the impact that the company will face depending on ecosystem services
generated by natural capital to create value will not be small. The company has determined that
it is essential to continue its focus on reducing GHG emissions, working to make agricultural
production areas sustainable, and addressing water risk and water stress.
The company understands the social issues related to heatstroke and infectious diseases
caused by climate change. Also, the company expects to contribute in the health domain, which
the Kirin Group defines as a growth area.
KIRIN INTEGRATED REPORT 2024

 ith regard to climate change, Kirin Holdings sets net zero emissions
Wtarget for 2050 in the Kirin Group’s Environmental Vision 2050, which was
renewed in 2020 using TCFD scenario analysis as input. The company setsintermediate targets by setting SBT 1.5°C target and joining RE100. The
company encourages reduction of GHG by business partners in addition to
the company’s own emissions.
For natural capital, the company will consider location-specific conditions
and dependency under the Kirin Group Action Plan for the Sustainable Use of
Biological Resources, utilizing the LEAP approach advocated by TNFD. While
doing so, we will improve the resilience of our businesses by sustainableprocurement of raw agricultural products and use water resources.
The company promotes sustainable procurement of raw materials andsustainable use of water under the Action Plan, and the activities can also be
mitigation measures against climate change. The company will improve theresilience of its businesses through the activities.
In the area of containers and packaging, the company will contribute tobuilding a society in which plastics are recycled by achieving the 50% target
for the use of recycled plastic resin in PET bottles in Japan by 2027 anddeveloping sustainable containers and packaging, while the company aims
to reduce Scope 3 GHG emissions and the impact on the natural environment.
T he company participates in the following to promote holistic approaches toclimate change, natural capital, and other environmental challenges and tocontribute to global rulemaking of environmental issues.
・Alliance to End Plastic Waste (joined in 2021)
・SBTN for Nature Corporate Engagement Program (Joined in 2021 as thefirst company to do so in the Japanese pharmaceutical and food andbeverage industries)
・Participated in the TNFD Forum from 2021. Participated in pilot testing in
2022. (TNFD Adopter registration in 2023)

Important
issue

Strategy rewing technology that does not relyBon barley
Mass plant propagation technologies
Support for farms to acquire certification
for sustainable agricultureEstablishment of mass plant propagation technology for hop seedlings

Biologicalresources

Water
resources haring flood knowledgeSEquipment and facility measures against
floodingSharing drought knowledge
Development and deployment of water
usage reduction technology

Started surveys of high-risk business sites for insurance coverage, utilizing the results of simulations of natural disasters and floods (2015)
Implemented flood prevention measures and equipment measures at pharmaceutical plants that must ensure a stable supply of products(2022)
Support for tea farms to acquire certification for sustainable agriculture in Sri Lanka and continuing appropriate water conservationconsidering water stress (since 2013)

Containers
andpackaging romotion of PET-to-PETPCreation of more lightweight containers oined Alliance to End Plastic Waste (2021)
JIncreased use of R100 PET bottles made with 100% recycled resin
Introduction of chemically recycled resin in PET bottles for alcoholic beverages (2023)

Climatechange chieving GHG emission reduction
Atargets based on scientific evidence
Energy transition on a profit and loss
neutral basis (from 2030)

 ine-tuned understanding the financial impact of climate change (from 2022), including analysis and evaluation of asset risks and opF
portunities in scenario analysis in full conformity with new TCFD guidance. Holistic disclosure of financial impact of climate change andnatural capital by conducting assessments to understand natural capital dependencies, impacts, risks, and opportunities (2023)
Developed a roadmap to reduce GHG emissions by 2030 (2022). Set reduction targets and processes for Group companies andbegan operation
Installed large-scale solar power generation facilities in all Kirin Brewery plants (2021), Kyowa Kirin Ube Plant, and Mercian Fujisawa
Plant (2023), based on the PPA model (except for the Yokohama Brewery). Achieved 100% of procured electricity from renewable energy
sources at Kirin Brewery’s Nagoya Plant (2020), Sendai Plant (2022), Okayama Plant, Fukuoka Plant, Kyowa Kirin’s Takasaki Plant, all Lion
Australia and New Zealand locations (2023), and all Château Mercian wineries (2022), and all Kirin Brewery plants and sales bases (2024)
Became the first global food and beverage company to obtain approval for an SBT Net-Zero (2022)
In addition, we are working to reduce GHG emissions throughout the value chain by considering the procurement of low-GHG-emitting raw
agricultural products and materials, and raising the ratio of recycled resins used in PET bottles. Reduction plans with an emphasis on engagement, including collaborative consideration of reduction measures based on each company’s reduction plan and reduction progress
identified through surveys of major suppliers (2023)

Infectious
diseases rovision of products to address thisP
issue

 xpansion of product lineup
ESupply of materials to partner companies

Heatstroke

 rovision of non-alcoholic beverages thatP
prevent heatstroke

Raising awareness of heatstroke

Sustainableprocurement

 ccumulating knowledge and promotingAregenerative agriculture that contributes to climate change mitigation andadaptation

Started development of “The Regenerative Tea Scorecard” in partnership with the Rainforest Alliance in Sri Lanka (2023)

Developmentof value-added products

Climate change

Launched Australia’s first carbon-neutral alcohol-free beer, XXXX Zero (2022)

Adaptation(Sustainable
use of natural
capital)Result of analysis of the impact on Assets
Impact on GHG emissions from divestment(kt CO�e)
1,000

31
147

800
600
400

61
65

803

200

340

0
Myanmarbusiness

2019

Mitigation(Minimize impact
on natural
capital)2030

Lion’s non-alcoholic
beverages business

Kirin Group science-based �.�°C target(excluding the Myanmar and the Lion’s
non-alcoholic beverages business)

Assets exposed to risk
Analysis item
Impact ofdivestment

Assets exposed
to risk

Impact

Before businessdivestment

515 kt CO2e

After divestment

463 kt CO2e

Exposure

Approx. 1.0 billion
yen

Related assets
Residual value

Approx. 1.1 billion
yen

Reference

As shown in the Kirin Environmental Value Correlation Chart, global warming due to climate change, changes in rainfall, and natural disasters havesignificant impacts on agricultural products and water, which are important raw materials. On the other hand, conservation and restoration of natural
capital can also be climate change mitigation and adaptation measures under the realm of Nature-based Solutions to social issues.
The company understands these relationships and take holistic approaches to solve environmental issues by leveraging our research, technology
development, and engineering capabilities.

Mass plant propagation technologies
Support for farms to acquire certification for sustainableagriculture

Procurement of certified products from certified sustainable farms

TCFD・TNFD

Strategy

Achieving GHG emission reductions
Energy transition on a profit and loss neutral basis

4°C scenario: Approx. 1.2 billion yen (2030)*3*2 Assessed using the middle 50th percentile of the distribution of forecast data for price fluctuations*4 Assessed using the middle 50th percentile of the distribution of forecast data for price fluctuations

84

Strategies and Reviews ofOperating Companies

Strategy
Brewing technology that does not rely on barley
Mass plant propagation technologies
Support for farms to acquire certification for sustainableagriculture

Decline yields of agricultural products

Transitionalrisks

Governance

Kirin’s Environmental Value Correlation

Financial impacts

Physicalrisks

Special Feature

Business
opportunity

Progress

Participated in SBTN for Nature’s Corporate Engagement Programme (2021) and TNFD pilot test (2022)

KIRIN INTEGRATED REPORT 2024

85

Message from Top Management

Overview of the Kirin Group

INPUT

BUSINESSOUTPUT / OUTCOME

Special Feature

Governance

Scope1 と Scope2 の排出量削減

Transition Plans

Reduction of Scope 1 and Scope 2 emissions

The Kirin Group has formulated a roadmap, together with investment and financing plans, for achieving science-based GHG emissions reduction
targets and net zero targets, with the aim of keeping the global average temperature increase 1.5°C or lower compared with pre-industrial levels.
The group began operating these plans in January 2022, after they were deliberated and resolved by the Group Executive Committee. Regarding
natural capital, in addition to ecosystem conservation, the group is considering developing a roadmap that includes climate change mitigation andadaptation measures as Nature-based Solutions to social issues. As for PET bottles, the group has formulated a roadmap for a 50% ratio of recycledresin use in Japan 2027 and is now working to achieve this target. Going forward, the group will continue to clarify holistic investment plans andfunding measures for natural capital and climate change.
For Scope 3, the group will continue to explore and experiment with reduction measures, starting with containers and packaging andagriculture. Regarding climate change adaptation measures, the group will expand the promotion of sustainable agriculture and forestry.
The group will also participate in a pilot program and lead rulemaking for an international initiative to develop a natural capital target-setting
methodology and disclosure framework. The roadmap will be reviewed periodically and updated appropriately, considering scientific advances,
regulations, and other factors.

Kyowa Hakko Bio(kt CO�e)

Mercian

700
600

Strategies and Reviews ofOperating Companies

投資額

Kirin Brewery

Investment and measuresfor energy conservation(kt CO�e)

Expansion of renewable energy use
Energy transition

500

610

422
400

201

500
400
300

488

350

41

165

84

27

322

224

59

74

109

200

40

45
37

100

185

140

25
51
27
20

0

2021

2024

12

9

300

362

237

200

150
100

30

90

Investment

Reference

Investment

Lion

Kyowa Kirin

Kirin Beverage

TCFD・TNFD

0

2030

15
15

2019-2021
MTP

104

74
2022-2024
MTP

2025-2027
MTP

48
2028-2030
MTP

Reduction of Scope 1and Scope 2 emissions

Through 2030, the Kirin Group will maintain profit and loss neutrality in principle, and the merit from saving energy will offset depreciation
and amortization from the investment and the procurement costs increase of renewable energy. We use NPV (Net Present Value) as anindicator for environmental investments aimed mainly at reducing GHG emissions, and the group introduced Internal Carbon Pricing (ICP; $63/t
CO2e) into its framework for making investment decisions. Following green bonds (period: 2020-2024, 10.0 billion yen) issued to finance theprocurement of recycled PET resin and the introduction of heat pump systems at plants, in January 2023 the group became the first food andbeverage company in Japan to raise funds through a transition-linked loan (period: 2023-2033, 50.0 billion yen), which is aimed at financing
energy conservation and renewable energy-related projects that will contribute to reducing Scope 1 and 2 GHG emissions. This loan is eligible
for the Ministry of Economy, Trade and Industry (METI)’s FY2022 subsidy for global warming countermeasures promotion project, as well as
performance- linked interest subsidies (financial support for promoting the transition towards achieving a carbon-neutral economy) under the
Industrial Competitiveness Enhancement Act.

As described in the “Response to Climate Change” part of the “Approach to Environmental Issues” section, the Kirin Group will take a threepronged approach to reducing Scope 1 and Scope 2 emissions, namely: “promotion of energy conservation,” “expansion of renewable energy,” and“energy transition.”
From 2030 onward, combustion fuel in the steam production process will need to be converted from fossil fuels to hydrogen, etc. that
do not emit GHGs in order to achieve net zero emissions by 2050. The group will be involved in policy advocacy and rulemaking, emphasizing
the “additionality” of creating and increasing new renewable energy sources in the world, and the “ethics” of energy use from the perspective ofenvironmental impact and human rights.

Roadmap to net zero

Roadmap to net zero

Reduction of Scope 3 emissions（%）
Obtained approval for “SBT for 2.0°C”
100
Ratio of
Joined RE100
renewable energy
in electric power0
2019 2020
2022

Focus on promoting energy conservation and expanding
renewable energy through 2030
From 2030 onward, expect that the combustion fuel used in the steam production
process will be converted from fossil fuels to hydrogen, etc.

2019

Investment

2020
3.0
billion yen

2021

2022

2023

22.4
billion yen

2024

2027
35.0
billion yen

2030 2033
42.2
billion yen

10.0 billion yen
from green bonds

Supply of funds

Period: 2020 to 2024
Use of funds: Procurement ofrecycled PET resin and introductionof heat pump systems in plants

KIRIN INTEGRATED REPORT 2024

2040

2050

50% decrease in
Scope 1 + 2 emissions
and 30% decrease in
Scope 3 emissions
compared with 2019

Obtained approval for “SBT for 1.5°C”

Scope1+
Scope286

2030

Obtained approval for “SBT for net zero”（ktCO2e）800

0100% of electric powerfrom renewable energy

50.0 billion yen fromtransition-linked loan
Period: 2023 to 2033
Use of funds: Measures to conserve energy and expand
renewable energy, in order to reduce
Scope 1 and Scope 2 GHG emissions

Net
zero

2050

Of the categories in the GHG Protocol, the group will
focus our efforts on Category 1 (purchased goods
and services), which accounts for about 60% of theKirin Group’s Scope 3 emissions, followed by Category
4 (upstream transportation and distribution) andCategory 9 (downstream transportation and distribution)
and work toward “encouragement of reduction atbusiness partners,” as well as the “reduction of its own
independent emissions.”
In a pilot test, Lion worked with suppliers andcustomers to pool actual GHG emissions to a third
party without mutual disclosure, and demonstrated thatthe company could raise its Scope 3 reduction targets.
This approach was published by the Australian “Climate
Leaders Coalition” as the “Scope 3 Roadmap” andpresented by the CEO of Lion at COP27 held in 2022.

Encouragement of
reduction at business
partners

Plan to prioritize engagement as we reduce emissions,based on each company's reduction plans andquantitative and qualitative progress identified throughsurveys of major suppliers

Reduction of ourown independent
emissions

Reduce the weight of containers and packaging andincrease the use of recycled PET resin, leveraging thestrength of our in-house research institute to develop ourown containers and packaging

Metrics and targets*6
Response

Targets
related toclimate change

Targets
related tonatural capital

Targets
related tocontainers andpackaging

Item

TargetAchievements(End of 2022)

GHG emissions from the entire
value chain (relative value)

Net-zero (2050)

4,876 kt CO2e

Scope1+2-50% (2030 compared to 2019)-18%

Scope 3 *7

-30% (2030 compared to 2019)-1%

Ratio of renewable energy
purchased electric power

100% (2040)

27%

Number of large tea farms in Sri
Lanka that received training forthe acquisition of certification

Cumulative total of 15 large farms(2022 to 2024)

4 large farms

Number of small tea farms in Sri
Lanka that received training forthe acquisition of certification

Cumulative total of 5,350 small farms(2022 to 2024)

9 small farms

Ratio of certified palm oil used
(Japan)Maintain 100%

100%

Water efficiency in Lion

2.4 kl/kl (2025)

3.6kl/kl

Percentage of recycled resinsused in PET bottles (Japan)

50% (2027)

8.3％

Percentage of FSC-certified
paper used for paper containers
in the domestic beveragebusiness

Maintain 100%

100%

*6 As of the end of 2022
*7 U sed IDEA (Inventory Database for Environment Analysis) version 2.3 and version 3.1

developed by The Research Institute of Science for Safety and Sustainability to calculate Scope 3 emissions for each ﬁscal year

KIRIN INTEGRATED REPORT 2024

87