December, 2022

Kirin Holdings Company, Limited
Kirin Sustainable Finance Framework(Green Finance, Social Finance, Sustainability Finance, Sustainability-Linked Finance,
Transition Finance, Transition-Linked Finance)

1.

Introduction
Kirin Holdings Company, Limited (hereinafter, "The company" or "Kirin") has developed the following"Kirin Sustainable Finance Framework" (hereinafter, "This framework"). The company will execute
Sustainable Finance (hereinafter, "Kirin Sustainable Finance") based on this framework.

1.1. About Us
Kirin is the holding company of the Kirin Group, which includes Kirin Brewery Company, Limited,
Kirin Beverage Company, Limited, Mercian Corporation, Lion Pty Ltd, Kyowa Kirin Co., Ltd., Kyowa
Hakko Bio Co., Ltd., etc. Headquartered in Tokyo, the Kirin Group mainly operates in Japan, Asia,and Oceania. Based on fermentation and biotechnology cultivated since its foundation, Kirin
expanded into the Food & Beverages domain (alcoholic & beverages business), the Pharmaceuticaldomain (pharmaceutical business), as well as the Health Science domain (health science business),an intermediate domain between the two.
1.2. Reference to Principles and Guidelines
This framework will communicate in a transparent manner on the key elements and corecomponents recommended by the following principles and guidelines.
・ ICMA Green Bond Principles 2021
・ ICMA Social Bond Principles 2021
・ ICMA Sustainability Bond Guidelines 2021
・ ICMA Sustainability-Linked Bond Principles 2020
・ ICMA Climate Transition Finance Handbook 2020
・ Ministry of the Environment, Green Bond and Sustainability-Linked Bond Guidelines 2022
・ Ministry of the Environment, Green Loan and Sustainability-Linked Loan Guidelines 2022
・ Financial Services Agency; Ministry of Economy, Trade and Industry; and Ministry of theEnvironment, Japan Basic Guidelines on Climate Transition Finance May 2021
・ Financial Services Agency, Social Bond Guideline October 2021
・ LMA; APLMA; LSTA, Green Loan Principles 2021
・ LMA; APLMA; LSTA, Social Loan Principles 2021
・ LMA; APLMA; LSTA, Sustainability-Linked Loan Principles 2022
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＜Alignment with the Four Key Elements of Climate Transition Finance＞
Four Key Elements of Climate Transition Finance

Related Sections

1.

Issuer's climate transition strategy and governance2.2／2.3／2.5

2.

Business model environmental materiality

2.2／2.3

Climate transition strategy to be science-based including
targets and pathways
Implementation transparency

2.3
2.3／2.5＜Alignment with the Four Core Components of Green Bond Principles and Social Bond Principles＞
Described in Chapter 3: "Use-of-Proceeds instruments ： Disclosure in line with the relevant
Principles such as ICMA GBP"
＜Alignment with the Five Core Components of Sustainability-Linked Bond Principles＞
Described in Chapter 4:" Sustainability-Linked type instruments : Disclosure in line with the relevant
Principles such as ICMA SLBP"
Kirin has obtained a Second party opinion from DNV BUSINESS ASSURANCE JAPAN K.K, an
independent external reviewer regarding the alignment of this framework with the Principles andGuidelines stated above.

2

2.

Kirin Group's Sustainability

2.1. Corporate Philosophy
Kirin brings joy to society by crafting food and healthcare products inspired by the blessings of natureand the insights of our customers.
2.2. Kirin Group's CSV Management
Kirin Group will continue to create social and economic value together
with all of its stakeholders and work to grow sustainably with society.
To achieve this, we will first identify social issues that need to be solved
and then address those issues as a group based on a specific actionplan.
2.2.1. Key Issues addressed by Kirin Group
Kirin Group has organized its "Management issues for Sustainable Growth" in the Kirin Group
Materiality Matrix with a view to continue developing sustainably with society in the future.
Based on social issues related to its businesses, the Group designated the fulfillment of its role as a
responsible alcohol producer along with health and well-being, community engagement, and theenvironment as four CSV key issues.

32.2.2. CSV Purpose
To create value and grow sustainably with society, Kirin Group established a CSV Purpose
corresponding to each of its four CSV key issues as its Long-Term Management Vision, Kirin Group
Vision 2027. One of the long-term management goals is our “CSV Purpose”— guiding principles
aimed at sustainable growth and creating value together with people across society. Going forward,
we will continue our work as "responsible alcohol producers" and work to resolve “health and wellbeing,” “community engagement,” and “the environment” and in doing so, we will bring joy tosociety and contribute to a joyful life for our customers.

42.2.3. CSV Commitment
To work toward solving its key CSV issues, Kirin Group establishes CSV Commitments as a mediumterm business plan. An action plan for CSV key issues is created for each commitment, and eachgroup company is working to grow the business by setting forth specific approaches and indicatorsfor each commitment. *The following table shows an excerpt of some of the initiatives for thecommitments.

52.3. Policies and Initiatives for CSV key issues "The Environment"
The Kirin Group recognizes that environmental sustainability is essential to ensure the continuity ofour business, since our businesses benefit from many blessings of nature such as water andagricultural products. We can strengthen our business resilience by reducing environmental burden
in our value chain through our environmental actions such as eco-friendly containers and climate
actions. Under the Kirin Group’s Environmental Vision 2050, revised in 2020, we aim to enrich thesustainable Earth for future generations by generating positive impacts from the actions.
2.3.1. Kirin Group’s Environmental Vision 2050
The Kirin Group regards CSV as a core of its business strategy and aims to be a leading company
which tackles environmental problems. Thus, we launched Kirin Group’s Environmental Vision 2050,
a revised version of Kirin Group Long-term Environmental Vision. Following the vision to "Enrich the
Earth with Positive Impact", Kirin and its broad stakeholders enrich society and the Earth for future
generations through positive impact on people and the environment.

2.3.2. Overcoming climate change
The Kirin Group was one of two companies that represented Japan when we announced ourenvironmental measures to the world at the third session of the Conference of the Parties to theUnited Nations Framework Convention on Climate Change in Kyoto in 1997. The Kirin Group haslong been working to reduce GHG emissions. We have achieved significant reductions, having set
an ambitious target of “reducing GHG emissions across the entire value chain by half from the 1990
level by 2050” in 2009. Since the adoption of the Paris Agreement in 2015, we have been leading
the way in creating a decarbonized society, having gained a renewed understanding of our impact
on natural capital such as agricultural raw materials and water through scenario analysis based on
the TCFD recommendations, set science-based targets for the reduction of greenhouse gas
emissions, and pledged our aim to switch to 100% renewable energy for electric power used by
2040 and achieve net zero GHG emissions by 2050.

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2.3.3. SBT net-zero Certification
Kirin has been approved as the first world company in the food and beverage processing sector with
science-based net-zero targets of SBT 1.5℃ standard validated by SBTi in July 2022. The Kirin
Group’s long-term GHG reduction target , "realizing net-zero GHG emission from the entire value
chain by 2050" set forth in the Kirin Group’s Environmental Vision 2050 was certified as ascientifically based goal consistent with the level of GHG emission reductions required by the Paris
Agreement.
Kirin Holdings, with the aim of becoming " A global leader in CSV”, have declared our goal ofachieving net-zero emissions by 2020 under the Kirin Group’s Environmental Vision 2050 and haveformulated a roadmap for achieving the goal, which went into operation in January 2022.
In order to achieve The Kirin Group’s long-term goal, Kirin Holdings has set a mid-term target for2030 (to reduce the total of Scope 1 and Scope 2 for the entire group by 50% and Scope 3 by 30%
by 2030 compared to 2019), and is promoting GHG reduction in our value chain with thetechnological capabilities we have cultivated over the years. For Scope 1 and Scope 2, we haveinstalled heat pumps at six Kirin Brewery breweries in Japan, utilizing our plant engineering
capabilities to reduce GHG emissions by approximately 3,800 tons per year. In terms of Scope 3,
we are gradually expanding the use of "R100 PET bottles" made of 100% recycled PET resin, andare rolling them out for some of our Kirin Nama-cha brands.
With the goal of achieving net zero emissions by 2050, Kirin Holdings will continue to work toward
the realization of the Kirin Group’s Environmental Vision 2050, which aims to strengthen theresilience of society and the company, and to lead the way toward the creation of a decarbonizedsociety.

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2.3.4. Approach to investment
Our basic principle for environmental investment (*1) to achieve our “SBT for 1.5°C” is “profit andloss neutral”. Specifically, the merit in terms of reducing costs derived from saving energy will offset
the increase of depreciation and amortization from the investment and the renewable energy cost.
For our “SBT for 1.5°C”, the SBTi criteria stipulate that the rate of reduction must not be set basedon a rate of reduction for the target year, but instead on a rate of reduction for each year leading up
to the target year. Accordingly, we aim to reduce emissions for the Group as a whole each year in a
linear manner.
Over the three years of our medium-term plan, from 2022 to 2024, we will execute environmental
investment of approximately 10.0 billion yen, reflecting the results of our estimates based on aroadmap formulated from these assumptions.
We will use the Net Present Value (NPV) as an indicator for environmental investments aimed mainly
at reducing GHG emissions, and we have also introduced Internal Carbon Pricing (ICP) into ourframework for making investment decisions. When setting our ICP, we referred existing carbon
prices published by IEA. ($63/tCO2e or 7,000 yen per tCO2e as of February 2022). We haveformulated our current roadmap in a way that will enable us to achieve profit and loss neutrality
even without taking ICP into consideration, and we plan to accelerate investments by taking ICP into
consideration.
2022-2024

2025-2027

2028-2030

Environmental investment

Approximately

Approximately

Approximately(Billions of yen)10.0 billion yen

8.0 billion yen

8.0 billion yen(*1) “Environmental investment” is the total of capital investment and the increase in costs to
procure electric power from renewable energy. Data from 2025 onward are expected amounts
based on our current roadmap, and are subject to revisions as necessary.

82.3.5. Transition Roadmap
The Kirin Group formulated a roadmap for mitigating climate change, and we started climate
actions based on the roadmap from January 2022, following deliberations and a resolution by theGroup Executive Committee. In line with the roadmap below, Kirin will work to achieve the longterm goal, reducing GHG emissions throughout the entire value chain to net zero by 2050, set in
the Kirin Group’s Environmental Vision 2050.

92.4. Policies and Initiatives for CSV key issues "Health and Well-Being"
The Kirin Group develops safe and secure products in our food and beverages businesses that bothtaste great and support self-care. We also provide new products and services and develop new
drugs that leverage the strengths of our pharmaceutical and bio-chemical businesses. Through theseactions, we help our customers develop physical and mental health and improve their quality of life.
2.4.1. Health Science Domain
Health Science is the domain where the Kirin Group will create new economic and social value by
providing solutions to “health and well-being issues” while utilizing the group’s core competencies.
Especially, the Kirin Group is stimulating innovation by taking advantage of synergy effects from the
3 key areas: immunity, brain and gut microbiome.

102.4.2. Priority Areas within the Health Science Domain and Our Unique Innovation Process

2.4.3. Linkage between Kirin's Health Science Business and Social Guidelines
The Kirin Group has identified "Health and Well-Being" as one of the key issues within CSV Purpose
and is making efforts to "Raise the number of healthy people, lower the number of sick people, andcontribute to the people who are involved in healthcare". Especially, the Kirin Group has determined
immunity, brain, and gut microbiome as its 3 key areas and is endeavoring to solve health issues inthese areas through providing products and services that use strategic ingredients produced byutilizing fermentation and biotechnology, the Kirin Group's core competencies.
The Kirin Group believes that these efforts will contribute to the "Achievement of Good Health andLongevity", one of the social issues listed in the "SDGs Action Plan 2022", and are aligned with theSocial Bond Principles and the Social Bond Guidelines.

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2.5. Kirin Group's CSV Governance
The Kirin Group formulated the Group Materiality Matrix (GMM), which outlines the key issues thatmust be addressed in order to exist sustainably and develop the business together with society.
Based on the GMM, we formulated the CSV Purpose as a guideline that translates our management
philosophy into the significance of our existence in society, and have established the CSV
Commitment as a medium-term action plan for achieving the CSV Purpose. The CSV Commitment
is incorporated into the business plans of the Group companies, and its progress is linked toperformance evaluations. The Group CSV Committee, chaired by the President & CEO of Kirin
Holdings, discusses the formulation of CSV policies, strategies, and action plans, and monitors theimplementation of these plans in order to actively and voluntarily promote CSV. In order to enhancethe effectiveness of the CSV policies and strategies decided by the Group CSV Committee, weestablished the CSV staff meeting, which is composed of managers from each division of Kirin
Holdings and the planning divisions of major group companies, to share information and exchange
opinions.

2.6. Rationale for Kirin Sustainable Finance
Kirin regards the execution of Kirin Sustainable Finance as a funding to solve social issues statedabove and to continue sustainable growth of the business with society by promoting CSV. We also
regard the finance as an opportunity to share Kirin's overall initiatives to its stakeholders, which
include Kirin's customers, shareholders, investors, employees, communities, business partners aswell as the environment.

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3.

Use-of-Proceeds instruments：Disclosure in line with the relevant Principles such as ICMA
GBP

3.1. Use of Proceeds
Kirin will use the proceeds of Kirin Sustainable Finance to finance and refinance new and existingeligible projects falling within the following projects categories. In the case of existing investments,
allocation is limited to either capital expenditures made within 5 years or operational expenditures
made within 3 years from the execution of Kirin Sustainable Finance.
Depending on the characteristic of the finance being executed, proceeds will be allocated to thefollowing projects categories.
・ Green Finance：Green Projects and Green／Transition Projects
・ Social Finance：Social Projects
・ Sustainability Finance：Green Projects, Green／Transition Projects and Social Projects
・ Transition Finance：Green／Transition Projects
3.1.1. Eligible Criteria【Green Projects】
Categories

Projects

Green Bond Principles

SDGs

Projects Categories
Businesses related to pollution

 Procurement and capital Pollution prevention and

9. Build resilient infrastructure,

prevention and control

investment of recyclable PET

controlpromote inclusive andEco-efficient products and/or

resin(Environmental objectives:

sustainable industrialization andcircular economy adapted

Pollution prevention andfoster innovation

products, production

control)

12. Ensure sustainable

technologies and processes

 Eco-efficient products and/or

consumption and production

circular economy adapted

patterns

products, production

14. Life Below Water

technologies and processes(Environmental objectives:
Natural resource
conservation)【Green／Transition Projects】
Categories

Projects

Green Bond Principles

SDGs

Projects Categories
Businesses related to energy
efficiency

 Introduction of heat pumpsystems to production sites

 Energy Efficiency

7. Ensure access to affordable,(Environmental objectives:

reliable, sustainable andClimate change mitigation)

modern energy for all
9. Build resilient infrastructure,promote inclusive andsustainable industrialization andfoster innovation
13. Take urgent action tocombat climate change and its
impacts

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Businesses related to Introduction of solar power

renewable energy

generation equipment to Renewable Energy(Environmental objectives:

reliable, sustainable andproduction sites

Climate change mitigation)

modern energy for all Procurement of renewables

7. Ensure access to affordable,

9. Build resilient infrastructure,promote inclusive andsustainable industrialization andfoster innovation
13. Take urgent action tocombat climate change and its
impacts【Social Projects】
Categories

Projects

Social Bond Principles

 Capital investment, Access to essential services

SDGs

Projects Categories
Businesses that contribute to

2. Zero hunger

the achievement of a society ofoperation, and procurement(health, health care)

3. Good health and well-being

health and longevity, mainlyof raw materials contributing(target population: general

9. Industry, Innovation andthrough infant and toddler

to the production of Humanpublic)infrastructure

health improvement and

Milk Oligosaccharide (HMO)

disease prevention
Businesses that contribute to Access to essential services

2. Zero hunger

the achievement of a society of Capital investment,
operation, and procurement(health, health care) (target

3. Good health and well-being

health and longevity, throughof raw materials contributing

population: general public,

9. Industry, Innovation andbrain function improvement

to the production of Citicoline

aging people, patients)

infrastructure

and brain function decline
prevention
Businesses that contribute to Capital investment, Access to essential services

3. Good health and well-being

the achievement of a society ofoperation, and procurement(health, health care)

9. Industry, Innovation andhealth and longevity, throughof raw materials contributing(target population: general

infrastructure

the maintenance of immune

to the research andpublic, aging people,

functiondevelopment of Lc-PLASMA

vulnerable youth)

and the production of raw
material powder utilizing LcPLASMA

3.1.2. Exclusion Criteria
The proceeds of Kirin Sustainable Finance will not be allocated to projects related to:・ Plastic manufacturing not subject to recycled PET・ Unfair transactions that do not comply with the laws and regulations of the country, suchas bribery, corruption, blackmail, embezzlement, etc.
・ Transactions that can cause social problems relate to human rights and the environment14

3.2. Process for Project Evaluation and Selection
3.2.1. Process for Evaluation and Selection
Kirin Finance Department and CSV Strategy Department will select the eligible projects as definedin 3.1, and the final decision on the selected eligible projects will be made by the Executive Officer
in charge of Financial Strategy. The eligibility of projects is based on an overall evaluation of theircontribution to the achievement of the CSV Purpose.
3.2.2. Process to Mitigate Environmental and Social Risks
In the implementation of the projects, Kirin will comply with environmental laws and regulations
and agreements with the relevant communities throughout the project execution and project period,
and will also follow the Kirin Group Compliance Guidelines in order to act with integrity and in
conformity with social ethics. In the event of any ESG controversy related to an eligible project, thecompany will address and disclose such controversy appropriately.
3.3. Management of Proceeds
Kirin Finance Department will manage the allocation of the net proceeds from Kirin Sustainable
Finance once every half year using the internal management system until the proceeds have been
fully redeemed. The proceeds from Kirin Sustainable Finance will be managed in cash or cash
equivalents until the proceeds have been fully allocated.
3.4. Reporting by the fundraiser
3.4.1. Allocation Reporting
Until the proceeds have been fully allocated, Kirin will provide information on the allocation ofproceeds to projects that meet the eligible criteria (project name, project description including its
progress, amount of allocated and unallocated proceeds) on its website annually, while considering
the confidentiality of the projects. The initial reporting will be published in the year following theexecution of Kirin Sustainable Finance.
Moreover, in case of refinancing an asset that requires long-term maintenance through multiple
executions of Kirin Sustainable Finance, Kirin will disclose the asset's age, remaining useful life andthe amount to be refinanced as at the time of the execution.
Kirin will report timely in the event of a significant change after full allocation of the proceeds.

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3.4.2. Impact Reporting
Until the maturity or repayment of Kirin Sustainable Finance, Kirin will annually provide, to the extent
practicable, the following indices on its website. The initial reporting will be published in the year
following the execution of Kirin Sustainable Finance.
【Green Projects】
Categories

Projects

Indices

Businesses related to pollution prevention

 Procurement and capital investment of Percentage of recycled resin used（%）

and control

recyclable PET resin

Eco-efficient products and/or circular
economy adapted products, production
technologies and processes【Green／Transition Project】
Categories
Businesses related to energy efficiency

Projects
 Introduction of heat pump systems to

Indices GHG reductions（t-CO₂e）

production sites
Businesses related to renewable energy

 Introduction of solar power generation

 GHG reductions（t-CO₂e）equipment to production sites
 Procurement of renewables16【Social Projects】
Categories

Projects

OutputOutcome (*2)
(Benefits for or changes(outcomes) of the target
population)

Businesses that contribute to Capital investment, Increase in HMO
manufacturing capacity

 Increase in the number of

the achievement of a society ofoperation, and procurement

health and longevity, mainlyof raw materials contributing

HMO (infant formula, healththrough infant and toddler

to the production of Humanfoods, etc.) in Japan andhealth improvement and

Milk Oligosaccharide (HMO)

overseas. The products

disease prevention

users of products containing

containing HMO contribute to
the health of a wide range ofour customers.

Businesses that contribute to Capital investment, Increase in Citicoline
manufacturing capacity

 Increase in the number of

the achievement of a society ofoperation, and procurement

health and longevity, throughof raw materials contributing

users of products containing
Citicoline (pharmaceuticals,

brain function improvement

to the production of Citicoline

health foods, etc.) in Japanand brain function decline

and overseas. The products

prevention

containing Citicoline
contribute to brain function
improvement and brain
function decline prevention of
our customers.

Businesses that contribute to Increase in Lc-PLASMA

 Increase in the number of

the achievement of a society of Capital investment,
operation, and procurement

manufacturing capacity

people who continue

health and longevity, throughof raw materials contributing

 Number of published papers

consuming Lc-PLASMA in

the maintenance of immune

to the research and Number of conference

Japan and overseas. Lc-

functiondevelopment of Lc-PLASMA
and the production of raw

presentations
 Partnerships with Academia

material powder utilizing Lc-

PLASMA contribute to themaintenance of immune
function of our customers.

PLASMA（*2）Kirin will report the number of users in each projects annually.
3.5. External Review
3.5.1. Annual Review
Kirin will annually obtain a review from DNV BUSINESS ASSURANCE JAPAN K.K, an independent
external reviewer, to evaluate whether the allocation reporting and the impact reporting are alignedwith this framework. This review will be conducted annually until the proceeds from Kirin Sustainable
Finance have been fully allocated. The initial reporting will be published in the year following theexecution of Kirin Sustainable Finance.

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4.

Sustainability-Linked type instruments : Disclosure in line with the relevant Principles suchas ICMA SLBP

4.1. Selection of KPIs
The following KPIs will be used for Sustainability-Linked Finance (Sustainability-Linked Bond
(SLB)/Sustainability-Linked Loan (SLL)) or Transition-Linked Finance (Transition-Linked Bond
(TLB)/Transition-Linked Loan (TLL)) issued under this framework.
KPIs

SLB/SLL

TLB/TLL

KPI-1

CDP Climate Change Score and CDP Water Security Score（*3）

○

－

KPI-2

GHG emission reduction rate in Scope 1 and Scope 2 (Base year:

○

○

○

○

FY2019)
KPI-3

GHG emission reduction rate in Scope 3 (Base year: FY2019)

KPI-1：CDP Climate Change Score and CDP Water Security Score
In the Kirin Group’s Environmental Vision 2050, Kirin has selected "Overcoming climate change"and "Sustainable use of water resources" as two of the issues to be addressed by the Kirin Group,and Kirin believes that KPI-1 will serve as a performance indicator for these issues.
＜Definition＞
Annual climate change score and water security score to be obtained from CDP＜Track record＞
2020

2021

2022

CDP Climate Change Score

A

A

A

CDP Water Security Score

A

A

A

（*3）If there is a change in the assumptions regarding the CDP score and the KPI is changed, thelatest information will be announced on the company’s website, etc.
KPI-2：GHG emission reduction rate in Scope 1 and Scope 2
In the Kirin Group’s Environmental Vision 2050, Kirin sets "Overcoming climate change" as one of
the social visions Kirin wants to achieve as the Kirin Group, and the target of net zero emissions by
2050 and its KPIs, which are quantitative indicators, embody and quantify this vision.
＜Definition＞
A calculation of the reduction rate from FY2019 based on the total GHG emissions of Scope 1 andScope 2, calculated in accordance with the GHG Protocol, with the entire group as the scope of
aggregation (*4).
（*4）The entire group is defined as the following businesses and companies. If there is a change
in the scope of aggregation, the latest scope of aggregation will be posted at the time of reporting.
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（Reference: Scope of aggregation for FY2021 in KPI-2）
Business

Companies

Japan Beer and Spirits

Kirin Brewery, Kirin Distillery, SPRING VALLEY BREWERY, Eishogen,Business

Kirin Brewery (Zhuhai), Brooklyn Brewery Japan

Japan Non-Alcoholic

Kirin Beverage, Shinshu Beverage, Hokkaido Kirin Beverage, Kirin

Beverages Business

Maintenance Service, each site of Kirin Beverage Service(Hokkaido, Sendai, Tokyo, Chubu, Kansai), KIRINVIVAX, Tokai
Beverage Service

Oceania Integrated

Lion, New Belgium Brewing

Beverages BusinessPharmaceuticals

Kyowa Kirin, KYOWA KIRIN FRONTIER Co., Ltd., Kyowa Medical

Businesses

Promotion Co., Ltd., Kyowa Kirin plus Co., Ltd., Kyowa Hakko Kirin
China Pharmaceutical, Kyowa Kirin

Other Businesses (allMercian, NIPPON LIQUOR, Daiichi Alcohol, Wine Curation,companies included)

Myanmar Brewery Mandalay Brewery, Interfood, Vietnam Kirin
Beverage, Four Roses Distillery, Kyowa Hakko Bio, KYOWA
PHARMA CHEMICAL, KYOWA ENGINEERING CO.,LTD, BioKyowa
Inc., Shanghai Kyowa Amino Acid, Thai Kyowa Biotechnologies Co.,
Ltd., Kirin Holdings, Kirin Business Expert, KIRIN BUSINESSSYSTEM, KOIWAI DAIRY PRODUCTS, Kirin Echo, Kirin andCommunications, Kirin Engineering, Kirin City, Kirin Techno-System,
KIRIN GROUP LOGISTICS＜Track record (*5)＞
Total GHG emissions in Scope 1 and2019 年

2020 年

2021 年

834

757

722

―

9.2%

13.5%

Scope 2 (thousand t-CO2e)
GHG emission reduction rate (%) in
Scope 1 and Scope 2 (Base year:
FY2019)（*5）The above figures are current as of the release of this framework, and in the event ofsignificant changes to the actual figures due to changes in the scope of business, such as theacquisition or divestment of a company / business, or changes in the assumptions used in thecalculation of emission factors, the latest figures will be announced on its website or other media.

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KPI-3: GHG emission reduction rate in Scope 3
In the Kirin Group’s Environmental Vision 2050, we set "Overcoming climate change" as one of thesocial visions that the company wants to achieve. Our target of net zero emissions by 2050 and its
KPIs, which are quantitative indicators, embody and quantify this vision.
＜Definition＞
The following group companies (*6) are included in the scope of calculation, and the reduction ratefrom FY2019 is calculated based on the GHG emissions in Scope 3, calculated in accordance with
the GHG Protocol.
(*6) Group companies are defined as the following businesses and companies. If there is any
change in the scope of aggregation, the latest scope of aggregation will be posted at the time ofreporting.
(Reference: Scope of aggregation for FY2021 in KPI-3)
Business
Japan Beer and Spirits

Companies
Kirin Brewery, Kirin Distillery, Kirin Brewery (Zhuhai)Business
Japan Non-Alcoholic

Kirin Beverage, Shinshu Beverage

Beverages Business
Oceania Integrated

Lion, New Belgium Brewing

Beverages BusinessPharmaceuticals

Kyowa Kirin, Kyowa Hakko Kirin China Pharmaceutical, Kyowa Kirin

Businesses
Other Businesses (allMercian, Daiichi Alcohol, Myanmar Brewery, Interfood, Vietnam

companies included)

Kirin Beverage, Kyowa Hakko Bio, KYOWA PHARMA CHEMICAL,
BioKyowa, Shanghai Kyowa Amino Acid, Thai Kyowa
Biotechnologies Co., Ltd., Kirin Holdings, KOIWAI DAIRYPRODUCTS, KIRIN GROUP LOGISTICS＜Track record (*7)＞
Total GHG emissions in Scope 3

2019 年

2020 年

2021 年

4,211

3,983

3,689

―

5.4%

12.4%

(thousand t-CO2e)
GHG emission reduction rate (%) in
Scope3 (Base year: FY2019)（*7）The above figures are current as of the release of this framework, and in the event ofsignificant changes to the actual figures due to changes in the scope of business, such as theacquisition or divestment of a company / business, or changes in the assumptions used in thecalculation of emission factors, the latest figures will be announced on its website or other media.
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4.2. Calibration of Sustainability Performance Targets
For Sustainability-Linked Finance (Sustainability-Linked Bond (SLB)/Sustainability-Linked Loan
(SLL)) or Transition-Linked Finance (Transition-Linked Bond (TLB)/Transition-Linked Loan (TLL))
issued under the framework, the following SPTs will be established. The SPTs to be used, the dateof determination of the SPTs, and the score of the applicable SPTs will be identified and disclosed in
the statutory disclosure documents (for bonds) or contract documents (for loans) at the time ofeach financing execution.
SPTs
SPT-1

Maintain CDP Climate Change Score and CDP Water Security

SLB/SLL

TLB/TLL

○

－

○

○

○

○

Score A
SPT-2

GHG emission reduction rates in Scope 1 and Scope 2 consistent
with the following targets (Base year: FY2019 (*8))
・ 50% reduction in GHG emissions in FY2030
・ Net zero GHG emissions in FY2050

SPT-3

GHG emission reduction rate in Scope 3 below (Base year:
FY2019 (*8))
・ Reduce GHG emissions by 50% in FY2030
・ Net zero GHG emissions in FY2050

About SPT-1：
Of the companies that received CDP scores, only about 1.5% received CDP Climate Change Score
A in FY2022 and about 2.6% received CDP Water Security Score A in FY2022. 1
If there is a change in the assumptions for the CDP score and the SPT is changed, the latest
information will be announced on its website.
About SPT-2 and SPT-3：
In July 2022, Kirin became the first company in the world in the food and beverage processing
sector to be certified as net-zero under the SBT 1.5°C standard by the SBT Initiative. The targets
for each year in SPT-2 are consistent with the 2030 and 2050 targets used to obtain SBT net-zero
certification.
The approach presented by the company in obtaining SBT net-zero certification is based on theassumption that the company will follow a generally linear reduction path for Scope 1 and Scope 2
until it achieves net-zero emissions in FY2050. The SPT-2 to be used at the time of financing is set
at the time of financing as a level that satisfies the concept of SBT net-zero certification.
(*8) GHG emissions in Scope 1, Scope 2, and Scope 3 in FY 2019, the base year, are retroactively
calculated based on the project scope at the time of SPTs determination and the assumptions(emission factors used in the calculation, etc.) at the time of SPTs determination.

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1.CDP HP：https://www.cdp.net/en/companies/companies-scores4.3. Bond／Loan Characteristics
The characteristics of the bond/loan will be subject to (1) "step up/step down in interest rate" or (2)"Donations" below. The amount to be implemented will be specified in the legal disclosure
documents (for bonds) or contract documents (for loans) at the time of the execution of eachfinancing. Even if the company changes the SPTs after the Sustainability-Linked Finance/TransitionLinked Finance is executed, the SPTs for the Sustainability-Linked Finance/Transition-Linked Financethat has already been executed will not be changed.
However, in the situation of an event that may have a significant impact on the assumptions usedin measuring the KPIs, setting the SPTs, or the scope of the KPIs (e.g., M&A activities, significant
changes in regulatory or other institutional aspects, or the occurrence of unusual events), we mayrevise the Sustainability-Linked Finance/ Transition-Linked Finance SPTs that we have alreadyexecuted. In the situation of any event (such as a significant change in M&A activities, regulatory orother institutional changes, or the occurrence of extraordinary events), the company may revise the
SPTs figures for Sustainability-Linked Finance/Transition-Linked Finance already executed. The
details of the review will be disclosed on the company's website.
⑴ Step Up／Step Down Interest Rates
In the case of step up
If a third-party verified report is not received by the determination date that the SPTs have beenachieved, the interest rate will step up at the annual rate specified at the time of financing from theinterest payment after the determination date to the redemption/repayment date.
In the case of step down
If a third-party verified report is received by the determination date that the SPTs have beenachieved, the interest rate will be stepped down at the annual rate specified at the time of financing
from the interest payment after the determination date to the redemption/repayment date.
(2) Donations
If no third-party verified reporting is made by the determination date that the SPTs have beenachieved, donation will be made to qualified donation recipients by the reimbursement/repayment
date. Qualified donation recipients are public interest incorporated associations, public interest
foundations, international organizations, local government certified non-profit organizations, local
governments, and similar organizations related to the improvement of SPTs that have not beenachieved. The amount and recipients of the donation will be determined by the required resolution
prior to the reimbursement/repayment date.

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4.4. Reporting
The company will report on the following items. The reporting period is the fiscal year preceding the
fiscal year to which the reporting date belongs. The contents of the report will be published on thecompany’s website.
No.

Information to be Reported

Reporting Frequency

1

Performance of the KPI

Annually until the final

2

Performance against the SPTs

determination dates, starting3

Up-to-date information of climate Sustainability

from the fiscal year following

strategies relative to the KPI and SPTs

the year of issuance of each
Sustainability-Linked Finance／
Transition-Linked Finance4

If SPTs have not been reached and "donations" areTimelymade, the amount and recipients of the donations

4.5. Verification
The performance of each KPI against the SPT is verified by an independent third party on an annual
basis until a decision date is reached. The results of the verification will be disclosed on the company’s
website.
The scope of third-party guarantees in KPI-3 (Scope 3) covers Kirin Brewery, Kirin Beverage, andMercian as of the release of this framework.
（Revision History）
Timing

Details

March 2022

1st edition

December 2022

Partially updated descriptions to add conformance with the ICMA Climate
Transition Finance Handbook 2020 and the Basic Guidelines on Climate
Transition Finance (May 2021) of the Financial Services Agency; Ministryof Economy, Trade and Industry; and Ministry of the Environment, and to
add Transition Finance, Sustainability-Linked finance, and Transition-Linked
finance.

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