Kirin Group

Our CSV Commitment
In 2017, the Kirin Group selected being “a responsible alcohol producer,” “health and well-being,” “community­engagement,” and “the environment” to be key social issues among the various social issues that affect the Group.
In the same year, we formulated our CSV Commitment, with reference to the Sustainable Development Goals (SDGs),
in order to face these social issues. As part of the Kirin Group’s long-term management vision, “Kirin Group Vision2027” (KV2027), we aim to become a global leader in CSV. To this end, we have formulated our CSV Purpose in 2027
in order to create shared value with society. To reach this goal, we have positioned our CSV Commitment as an action
plan and established it as a non-financial target in the “2019-2021 Kirin Group Medium-Term Business Plan”. We willraise the effectiveness of CSV throughout the Group and actively disclose our results.

CSV Key Issues

CSV Purpose and CSV Story

SDGs Target

Our Commitment

Our Approach

Our Achievement

Goals for 2021

A Responsible
Alcohol
Producer

Make steady progress toward
eradicating the harmful use ofalcohol in all countries of operation(Zero Harmful Drinking)Target 3.5
Target 3.6
Target 17.16
Target 17.17

0.1
Responsible drinking / passing aculture of enjoying alcoholic beverages
to the next generation

	We will take measures to promote educationin appropriate drinking and drinking mannerin line with regional challenges.
	We will increase development of our no- andlower-alcohol products to provide a greater
breadth of options for our customers.
	We will label each product with its alcohol
content to support responsible drinking
habits for our consumers.

1) Number of participants inappropriate drinking education programs / viewers ofdrinking manneradvertisements2) Expansion of sales of noand lower-alcohol products
3) Percentage of productswith alcohol content labels1) 	One million participants /viewers2) 	KB : 115% (comparedwith 2018)		ME: 105% (compared with2018)
		LN: Maintaining the highproportion of the less thanfull strength category inAustralia3) KB: 100%*1 in 2027
(will begin by 2024)
MBL: 20%
LN: 100%

We will work toward eradicating theharmful use of alcohol, consistent
with regional challenges. We will also
work to develop no- and lower-alcohol
products in each category and improve
consumer acceptance of theseproducts.

While alcohol can bring joy to people’s lives,
it can also harm people’s health if consumed
inappropriately. As a corporate group that
produces alcoholic beverages, we are working
to resolve alcohol-related problems so that aculture of enjoying alcoholic beverages canbe passed down to the next generation.
Health andWell-being

KB
Target 3.4
Target 17.16
Target 17.17

1.1
Supporting self-care for healthy people
and people with pre-disease
We will help consumers manage their
daily energy (calories/kilojoules) andnutrient intake by providing abalanced portfolio of products and information, supporting them in addressing obesity and other major
non-communicable diseases (NCDs).

Target 9.5
Target 17.16
Target 17.17

1.2.a
Creating new value for healthy people
and people with pre-disease
We will contribute to enhancing customers’ quality of life throughout their
lifetime, and strive to create revolutionary products, services, and new
businesses.

Target 9.5
Target 17.16
Target 17.17

Raise the number of healthy people,
lower the number of sick people,
and contribute to the people who are
involved in the healthcare

We develop safe, secure products in our foodand beverages businesses that both taste
great and support self-care. We also provide
new products and services and new drug
creation that leverage the strengths of ourpharmaceutical and bio-chemical businesses.
Through these actions, we help ourcustomers develop physical and mental
health and improve their quality of life.

1.2.b
Supporting self-care for healthy people
and people with pre-disease
We will contribute to enhancing customers’ quality of life throughout
their lifetime, and strive to create­revolutionary products, services,and new businesses.

Target 3.8
Target 17.16
Target 17.17

Target 3.8
Target 3.bTarget 17.16
Target 17.17

Target 3.4
Target 17.16
Target 17.17

Target 2.4
Target 17.16
Target 17.17

1.3
Evolution in medical treatment
We will continuously develop innovative drugs with our cutting-edge biotechnology and expand ourcommercialization activities globally.

1.4
Evolution in medical treatment
By providing inexpensive, high-quality
biosimilars and “authorized versions”
of biologics, we will contribute to thefurther use of biomedicines, and help
increase healthcare spending, which isa global issue.
1.5
Health and productivity management
As a company that delivers products
and services contributing to consumer
health, we will create an environmentand opportunities for our employees toproactively improve their own health.
We will also address any mental healthissues facing our employees and work
to prevent non-communicable diseases(NCDs). Also, as an alcohol producer,
we will promote ­responsible drinking
that encourages employees to be rolemodels for society.
1.6
Safety and security of our products
We will establish a hygiene management system for the production process
based on global standards andcontinue to work on improving productsafety. Also, we will enhance communication related to quality in order tobuild trust and increase a sense of
security among our customers.

	To reduce the proliferation of NCDs, we will
create a portfolio of products that contributeto the health of our customers, including
products with low-sugar, no- sugar, and­low-calorie content, in addition to productswith positive health effects.

ME

LN

MBL

1) 	Development and expansion of sales of no- andlow-sugar, low-calorie
products and products withpositive health effects.
2) 	Development and expansion of sales of products
containing i­ ngredients
proven to have healthfunctions.
KBC

KBC1)	115%(compared with 2018)2)	115%(compared with 2018)
KIW
1+2) Ratio of over 50%

KIW	In anticipation of a diversifying set of healthneeds, we will propose methods to utilize
Group assets, which include ingredients with
scientifically proven positive health effects(such as Lactococcus lactis strain Plasma)	We will continuously create ingredients withpositive health effects and thereby create
new value by deepening our researchthrough collaboration with academic institutions in Japan and overseas.

Number of countries capableof purchasing Kirin-made ingredients with positive healtheffects (and total population)

	We will support patients in their recovery byproviding a variety of raw materials for drugs
and healthcare foods.
	We will help people lead healthy lives by
providing ingredients with positive healtheffects for supplements, drinks, and foods
and by expanding sales of mail-orderproducts.

1) Number of patients using
products made with our raw
materials
2) Number of consumers
using products with ourraw materials	Based on our two strength of R&D and­production capability acquired through­developing and providing biologics, we will
strengthen our drug discovery foundationand continuously provide products in ourfour main modalities—therapeutic antibodies, small molecule drugs, nucleic aciddrugs, and regenerative therapeutics, using
effective open innovation.
	Specifically, we will provide treatments forpatients suffering from rare diseases suchas X-linked hypophosphatemia (XLH)

Number of countries withmarkets for new drugs

	We will proceed with the development of biosimilars, aim to quickly obtain manufacturing and marketing approval, and begin sales.
	We will establish a new company with theaim of obtaining manufacturing and marketing approval in Japan for an authorizedversion of NESP®.

1) Acquire approval for­biosimilars in accordancewith the patent regulations
in each country and region
and begin sales.
2) Acquire approval for NESP®
authorized generics

5 countries (roughly 650
million people)

KH
1+2) 43 million (in 2027)

KHB
Over 50 countries Crysvita
launched※KKC 2021-2025 mid-termtargetKKC
Targets 1 and 2 were achievedin 2018

KKC
	We will establish a system facilitating amore flexible workstyle and create conditions that are easy to work within to ensurethat employees can perform in a lively
manner and to improve our corporate
culture.
	We will assist employees in self-directing
the maintenance and improvement of theirown health and taking an active role intheir mental and physical well-being, withemphasis on mental health and responsible
drinking.

1) Recognized under the certified Health and Productivity Management; “White500”2) Engagement surveys­regarding work–life balance
and workstyle reforms3) Stress checks (“psycholog­
ical lively”) score4) Drinking habits screening
tests (AUDIT) score
KH

KB
ME

	We will promote a sanitation management
system that utilizes the Global Food Safety­Initiative (GFSI) on a global scale.
	We will communicate information about our
initiatives for ensuring raw material safety,­including residual agricultural chemicals
and radioactive substances, to ourcustomers.
	We will disclose product and raw material­information that meets customers’ expectations by utilizing various touchpoints, including our company websites, in-store
programs, and plant tours.

1) Consecutive recognition
under “White 500”2) Improvement comparedwith 2018
3) Score of 1154) Over 78% (less than 10
points scored)

KBC

KKC

Certification rate for
GFSI-recognized schemes

KG

100% (in 2024)

CSV Key Issues

CSV Purpose and CSV Story

Community
Engagement

Create more opportunities
for customers to spend timewith their families and friends,
and develop the communities
within our supply chain

SDGs Target

Our Commitment

Our Approach

Target 11.aTarget 17.16
Target 17.17

2.1
Contributing to community vitalization

	We will create and increase opportunities
that bring people together at dining tables,
recreational activities, celebrations, andsports and music events with our products.

Group targets are underconsideration—

Target 2.3
Target 8.9
Target 17.16
Target 17.17

2.2.a
More sustainable productionof raw materials

	We will look at our goals from a long-term
perspective, aiming to maintain a stable
harvest and improve the quality of Japanse
hops. We will also strive to increase the attractiveness of the region where Japanesehops are havested and to support infrastructure for hop production, including people
and equipment.
	We will enhance the value of Japanese hops
to increase demand for Japanese hops by
producing unique beers with Japanese hops
and work with craft brewers.

Japanese hops procurement

100 t (in 2027)
Note: If no measures aretaken, volume is expected todecrease by half in 2027.

	We will welcome more farming to ourwineries and work to revitalize their surrounding regions. At the same time, we willraise the global profile of Japanese wines
through our Chateau Mercian brand.
	We will improve the quality of grapes
produced at our own vineyards while supporting contracted vineyards and secure astable supply of grapes for our high-quality
Japanese wines. In addition, we will
increase our long-term yield of grapes by increasing our own vineyards.

1) Number of visitors who purchased our products at ourcellar doors and winery
shops2) Volume of grapes produced
at our vineyards

	We will promote contracted farming ofdomestic rice for brewing, thus contributing
to the stable income of farmers.
	We will utilize the JICA-KIRIN fellowship
program and cooperate with the Japanese
embassy in Myanmar, JICA, JETRO, andtrading companies to develop human­resources who will shoulder Myanmar’s­agricultural future.
	We will promote to use materials from
Myanmar, create jobs, and contribute toeconomic revitalization.

1) Contracted firming ratio of
procured rice for brewing2) Temp staffing to meet therequirements of the JICAKIRIN fellowship program,and promotion of humanresource development by
supporting JICA-sponsoredagricultural seminars.
3) Ratio of materials from
Myanmar	We will help producers of black tea leaves
by facilitating the acquisition of Rainforest
Alliance certification, in order to ensure thesustainable procurement of tea leaves.
	We will expand the use of Rainforest­Alliance-certified tea leaves over thelong term.

Number of small-scale
farmers supported for acquisition of Rainforest Alliancecertification

Target 2.3
Target 8.9
Target 17.16
Target 17.17

Target 1.2
Target 2.3
Target 4.bTarget 4.cTarget 8.9
Target 17.16
Target 17.17

We live in a time when the weakening bonds
between people are cause for concern. We
want to create more opportunities for customers to enjoy time with their families andfriends while also working to solve problems
that our raw material producers may encounter. In doing so, we will help form rich andvibrant local communities and promote­community vitalization and strengthen ourbusiness foundation through those actions.

Target 2.3
Target 8.9
Target 15.4
Target 17.16
Target 17.17

Target 12.6
Target 12.7
Target 17.16
Target 17.17

The
Environment

Target 7.2
Target 13.1
Target 17.16
Target 17.17

We will increase the bonds between
people by creating opportunities toenjoy our products and services.

We will work on improving the quality
and stable procurement of Japanesehops and brew unique beers that can
only be made with them while contributing to the revitalization of key producing areas.

2.2.b
More sustainable productionof raw materials
We will drive development of Japanesewines to ensure their global recognition and contribute to revitalizing key
producing areas and local communities, which are the foundations ofgrowing grapes and making wines.

2.2.c
More sustainable productionof raw materials
We will create highly sustainable­conditions for procuring Myanmar
rice for brewing while fulfilling oursocial responsibilities to the region.

2.2.dMore sustainable productionof raw materials
We will support Sri Lankan black tea
farmers through such long-term initiatives as facilitating the acquisition ofRainforest Alliance certification, andexpand the use of certified tea leaves.
2.2.e
More sustainable productionof raw materials
We will develop long-term, sustainablemutually beneficial partnerships with
our raw material and packaging suppliers, which build a favorable demandfor our products and ensure sustainable returns and the creation of value
through the supply chain.
3.1
Actions regarding climate change
We will work to further reduce Green
house gas (GHG) emissions throughvarious initiatives, including the introduction of renewable energy.

Our Achievement

KB1) 2) 200 t (in 2027)*Consider changing 1) of
Achievement and GoalME1) 10%
2) Deployment of one worker
or more annually.
3) Can materials 70%

MBL
10,000 farmers (in 2025)

KBC
	We will build a sustainable supply chain
for our business operations in Australia andcontribute to the society in the region withconsideration for human rights, labor standards, health and safety, the environment,
and business ethics.

1) Ratio of SEDEX membership in 1st tier supplier2) Compliance with the­Australian Modern
Slavery Act

1) 100%2) 100%

LN	We will promote the introduction of­renewable energy.
	We will promote energy conservation.

Enrich the sustainable Earthfor future generations
through positive impact1) Renewable energy ratio
for electric power
consumption2) Install solar power
generation facilities
3) Reduction ratio of GHG
emission (Scope 1 and 2)4) Reduction ratio of GHG
emission (Scope 3)

KG1) 100% (in 2040)
LN2) 10MW (in 2026)
KG3) 50% (in 2030,
compared with 2019)4) 30% (in 2030,
compared with 2019)

KG
Target 3.9
Target 6.4
Target 17.16
Target 17.17

3.2
Actions regarding water resources
We will reduce water use in production
activities and continuously preserve
water sources.

	We will promote water saving at our plants.
	We will investigate major hydrographic­vulnerabilities at our production sites.
	We will continue to conserve water sources
at our production sites.

1) Unit Water consumption
reduction rate in 2021
2) Water consumption
reduction rate in 2030

MBL
Target 15.4
Target 17.16
Target 17.17

As a company that benefits from the many
blessings of nature, including water and agricultural products, we recognize that the sustainability of the global environment isessential to ensuring the continuity of ourbusiness. By reducing the environmental
burden in our value chain through suchmeans as creating eco-friendly containers
and packaging and addressing the issue ofclimate change, we are able to strengthen
our business foundation. Under the Kirin
Group Environmental Vision 2050, revised in
2020, we aim to enrich the sustainable
Earth for future generations through positive
impact.

Goals for 2021

3.3
Actions regarding biological resources
We will protect the natural environment and preserve the ecosystems surrounding our business sites as well as
areas producing raw materials.

	We will promote our efforts related to­biological resources at major material­production sites.
	We will strive to secure resources that may
lead to deforestation in a sustainable
manner.

Target 2.4
Target 12.3
Target 17.16
Target 17.17

3.4
Actions regarding containers andpackagingWe will continue to reduce the weightof containers and packaging while
relying less on non-renewable resources and increasing the sustainability of materials.
3.5
Reduction of food waste
We will reduce the amount of productwaste generated stemming fromfactory shipment to delivery to ourpartners.

KHB

1) Use of FSC-certified
paper or recyled paperfor office paper2) Use of FSC-certified paper
for paper containers andpackaging*2
3) Actions regarding sustainable palm oil
KH

Target 12.2
Target 12.4
Target 14.1
Target 17.16
Target 17.17

KKC

KB

KBC

1) Conversion rate of PET
bottle resin to recycled
resin2) Recyclability of container
material
3) Recycled material ratio forcontainers and packaging
materials

	We will reduce inventory excess (which leads
to waste) through more accurate supply anddemand predictions.
	We will reduce product waste by implementing thorough quality control.

Rate of product waste
reduction

KBC

KB

ME

KBC

1) 100%2) 100%3) 100%*3

ME	We will strive to maintain the 3Rs andresource circulation for containers andpackaging.
	We will increase use of sustainable materials
for our containers.
	We will introduce Life Cycle Assessment(LCA) and select container raw materials at
an early stage of container / productdevelopment.

KB

MBL1)28% (in 2021, comparedwith 2015)
KKC
2) 40% (in 2030, comparedwith 2019）
KHB2) 32% (in 2030, comparedwith 2015)

KBC, KB and ME
1) 50% (in 2027)
LN
2) Over 90% (in 2030)
3) Over 50% (in 2030)

LN
75%(in 2025, compared with
2015)

ME

KG: Kirin Group, KH: Kirin Holdings, KB: Kirin Brewery Company, Limited, KBC: Kirin Beverage Company, Limited, ME: Mercian Corporation, KIW: Koiwai Dairy Products Company, Limited, KKC: Kyowa Kirin Company, Limited,
KHB: Kyowa Hakko Bio Company, Limited, LN: Lion Proprietary Limited MBL: Myanmar Brewery, Limited*1. 350ml and 500ml canned beer (beer and new genre) and RTD*2. 6-can packs, gift boxes, drink boxes, cardboard cartons for products*3. Using Book and Claim model, which is a model for the trading of certificates approved by the Round Table of Sustainable Palm Oil

We updated our commitment in February 15, 2021