In this part                   ,→P.13〜P.31 we explain how theContent

Kirin Group analyzes and assesses the impactsof climate change and issues related to natural
capital and containers and packaging, and●Four material environmental themes identified in the GMM: “biological resources,” “water resources,” “containers and packaging,” and “climatechange”●In climate change, the risks and opportunities that were subject to scenario analysis, and the results of the assessment of resilience●In natural capital, material issues identified individually by the LEAP approach proposed by the TNFD

and adaptation, in order to appropriately andcontinuously create value. The Kirin Group
recognizes the need for a holistic approachto important environmental material themes●The impact on and from the regions in which business sites are located and the upstream and downstream portions of the value
chain for Kirin Brewery, Kirin Beverage, Mercian, Lion, Kyowa Kirin, Kyowa Hakko Bio, Koiwai Dairy Products, and all businesses forwhich we have set targets in accordance with SBT standards

Naturalcapital●The scope of disclosure and impact determined based on our analysis and assessment of risks and opportunities related to natural
capital based on effects, dependencies, and impacts, and identification of material issues in accordance with v1.0 of the TNFD
guidance, mainly for Kirin Brewery, Kirin Beverage, Mercian, Lion, Kyowa Kirin, Kyowa Hakko Bio, and Koiwai Dairy Products (however,since there are limited methods for obtaining direct information and there are still many issues related to the tools provided, theinformation we are able to disclose is limited)such as biological resources, water resources,
containers and packaging, and climate change,and strives to provide a holistic explanation to
the extent possible because there is a risk of

Scope of disclosure

trade-offs in resolving individual issues.
Containers
andpackaging

When preparing the information in thissection, we have complied with the TCFD
13

recommendations (June 2018), the new TCFD
Climatechangerecommendations v1.0 (September 2023).
In addition, we have referred to the S1 andS2 standards published by the International
Sustainability Standards Board (ISSB) in parts.

Location for related
issuesThe general requirements of the TCFD, TNFD,
and other frameworks are as follows.

Target period

Engagement●Kirin sites emitting GHGs, upstream and downstream of the value chain●Kirin sites, regions in the upstream and downstream of the value chain, transport routes, etc. affected by droughts, floods, natural
disasters, and other events caused by climate change

Naturalcapital●Raw materials covered by the “Action Plan for the Sustainable Use of Biological Resources →P.97   ” and their suppliers

Containers
andpackaging●All processes until the product is delivered to the customer●Priority locations identified through risk and opportunity analysis assessments in accordance with TNFD guidance v1.0

●Processes such as the collection and recycling of used containers, as well as sites where used containers are disposed of improperly
and areas affected by that pollution●The Kirin Group's important material themes of biological resources, water resources, containers and packaging, and climate change areinterrelated, and there is a risk of trade-offs in resolving individual issues. Accordingly, we have adopted a holistic approach that aims to resolve
issues in a holistic manner●In the same report, we disclosed information in accordance with the individual disclosure guidance of the TCFD and TNFD, including mattersconcerning interrelatedness and trade-offs●Periods when risk materializes: we have generally defined the short term as from the present to 2024 (the period of the Medium-Term BusinessPlan), the medium term as from 2025 to 2030 (the period of KV2027 and the SDGs target period), and the long term as 2031 to 2050 (the target
year for the Kirin Group’s Environmental Vision 2050)●These time horizons are not necessarily consistent with the sources of information used for risk assessment or scenario analysis. In such cases, wehave used the time horizons set for those specific references●The Kirin Group refers to regulations covering indigenous peoples and local community stakeholders, such as the FSC and Rainforest Alliancecertifications.
●For regions where we can adopt a landscape approach, we have not simply analyzed and assessed disclosure data that we have obtained, buthave also actually visited the regions and engaged with people from the local community.

Holistic Analysis of Risks
and Opportunities

Holistic disclosureof othersustainabilityrelated matters●Although not included in this disclosure, we intend to add information obtained through the “Kirin Supply Chain Environmental
Program,” which we launched in April 2024 to capture direct environmental data from suppliers, in due course

Activity

guidance (October 2021), and the TNFD

●Kirin Brewery, Kirin Beverage, Mercian, Lion, Kyowa Kirin, Kyowa Hakko Bio, and Koiwai Dairy Products

・ TNFD
TCFDClimatechangeEnvironmental
Strategy

promotes transition strategies such as mitigation●"Management issues for sustainable growth (Group Materiality Matrix (GMM)” identified in accordance with the “identification of materiality”
Material
information to bedisclosed

Message fromTop Management

Holistic Environmental Management Information
Disclosure Based on the TCFD and TNFD Recommendations, etc.

Roles and authorities

Approximately
30 times a
year

Group
Executive
Committee●Convened and chaired by the●Deliberation of environmental
CEO, Kirin Holdings Company,
policies, medium- and longLimited.
term strategies, and fiscal year
plans
●Executive officers of Kirin
Holdings●Resolutions related to general
non-financial targets and KPIs,
including those concerning theenvironment●Deliberation of the degreeof dependence and impact
on natural capital, as wellas environmental risks andopportunities●Supervision of theenvironmental operationsof operating companies anddivisions●Quarterly
monitoring of
the execution ofenvironmental
operations
by operatingcompanies●Deliberation ofplans for fiscal
2024, including
environmental
targets and KPIs,
and important risks●Chair: CEO of Kirin Holdings●Discussion of CSV policies,
strategies, plans, targets, KPIs, ●Executive officers of Kirin
and materiality across theHoldings
Kirin Group, including those●CEOs of the Group's major
related to the environment
operating companies in Japanand overseas

Three times a
year●Discussion of nonfinancial disclosure
policies, strategies,
and plans, including
those related to theenvironment●Reviews of ESG
assessments anddeliberation ofenhancements

Twice a year

●Formulation of draft
plans for fiscal 2024
concerning thefour environmental
issuesTwice a year +as needed●Deliberation ofbasic policies forplans for fiscal
2024 and importantrisks for the Kirin
Group

Supervisory structure
related issues, medium- and long-term strategies, annual plans, and important non-financial targets and KPIs, including
environmental targets. The board also monitors the execution of the Group's environmental operations and importantrisks, including climate change, natural capital, and the circular economy, on a quarterly basis through monitoring the
progress of non-financial targets.
Executive structure
In the Kirin Group, the Group Executive Committee deliberates and makes resolutions concerning the setting and revisionof important targets, as well as investment plans, related to climate and environmental issues as a whole, such as
natural capital and the circular economy. The Group Executive Committee receives reports from operating companies anddivisions on the status of achievement of targets and risks, and supervises these operating companies and divisions.
The senior executive officer in charge of CSV strategy oversees environmental issues such as climate change, natural
capital, and a circular economy.
The Kirin Group has established the Group CSV Committee (meets three times a year). The committee is an advisory
body to the CEO and COO that discusses environmental and other CSV issues across the Kirin Group. The committee isco-chaired by the CEO and COO of Kirin Holdings, with its members being the CEOs of major Kirin Group companies andsenior executive officers of Kirin Holdings. With the participation of outside experts from a multi-stakeholder perspective,
as necessary, this committee engages in in-depth discussions on matters such as current and future sustainability
14

issues, the degree of dependence, and the degree of impact, as well as risks and opportunities associated with theseissues. The committee then reports its decisions to the Board.
The Kirin Group has established the Group Environmental Meeting (meets twice a year) under the Group CSV Committee.
This meeting has the officer in charge of CSV strategy as the chair and the relevant senior executive officers anddepartment heads as members. The meeting mainly monitors progress related to roadmaps set for climate changeGroup CSV
Committee

issues and environmental issues such as natural capital and the circular economy, as well as exchanging opinions
on related policies, strategies, and plans. At meetings of the Group CSV Committee and the Board, there are agenda
items and reports concerning the results of deliberations by the Group Environmental Meeting, as necessary.
Through the establishment and operation of the Group Environmental Meeting, we have strengthened our initiatives
targeting sustainability-related issues, as required by Japan’s Corporate Governance Code following revisions in 2021.
Environmental management, including responding to climate change, is part of our CSV management system.
The Kirin Group has established the Group Risk and Compliance Committee (meets twice a year and as necessary).
This committee consists of executive officers from Kirin Holdings, and makes resolutions concerning Group-wide risk
management policies and the identification of important risks, and reports the results to the Board of Directors asnecessary. This committee also controls environmental risk management activities.
Starting from the 2022 Medium-Term Business Plan, performance-linked remuneration for senior executive officers reflectsGroup
Environmental
Meeting(Working
Group on theEnvironment
under theGroup CSV
Meeting)

the target achievement rate for non-financial indicators, as an incentive to promote the medium- to long-term businessplan. With regard to climate change, we have set a mid-term target of a “23% reduction in GHG emissions by 2024” toachieve our “SBT for 1.5°C” target. Additionally, in relation to both climate change and natural capital, we have set
targets for the efficiency of water use at production sites and breweries with high levels of water stress, and in relation
to the circular economy, we have set a target of “38% usage of recycled resins in PET bottles in Japan,” as KPIs linked toremuneration.
We incorporate other environmental targets into our CSV Commitment, our non- financial KPI targets, and reflect them inmanagement plans by setting them as performance indicators for each operating company. The status of achievement of
the CSV Commitment serves as a metric for assessing the performance of the CEOs of group companies.

Group Risk andCompliance
Committee●Formulation of policies,
strategies, plans, targets
and draft KPIs for the four
environmental issues (climatechange, water, containers
and packaging, and biologicalresources)●Chair: Executive officer in chargeof CSV of Kirin Holdings●Executive officer in charge of
SCM strategy, General Manager
of CSV Strategy Department,
General Manager of Corporate
Strategy Department, General
Manager of Finance Department,
General Manager of Procurement
Department, General Manager
of Corporate Communication
Department, General Manager
of IR Section, General Manager
of Research & Development
Division, and General Manager
of Technology Development
Department*1●Chair: Executive officer in charge●Deliberation of fiscal yearof risk management of Kirin
policies concerning group risk
Holdings
management, including risks
related to the environment,●Executive officers of Kirin
and important risks for theHoldings
Kirin Group●Monitoring risk and complianceprojects and responding tosudden incidents*1 Kirin Brewery technical manager. Other affiliations not specified belong to Kirin Holdings.

Holistic Analysis of Risks
and Opportunities●Quarterly
monitoring ofimportant risks
and the executionof business
operations,
includingenvironmental●Resolutions
concerningplans for fiscal
2024, including
environmental
targets, KPIs, andimportant risks

Activity

4 times a year
+ as needed(monthly
for riskmonitoring)

The Board●Chair: non-executive director●Supervision of execution ofenvironmental operations●Non-executive 7, Executive 5
within the Group●Resolutions related to mediumand long-term strategies andfiscal year plans●Resolutions related toimportant non-financial targets
and KPIs, including thoseconcerning the environment●Monitoring the degree of
dependence and impact
on natural capital, as wellas environmental risks andopportunities

・ TNFD
TCFD

Achievements

Environmental
StrategyFrequency

In the Kirin Group, the Board of Directors deliberates and resolves on basic policies for CSV, including environment-

Members

Message fromTop Management

GovernanceIncorporating non-financial KPIs in performance-linked remuneration
Please refer to the following for information about the relationship between executive remuneration andnon-financial indicators in our Medium-Term Business Plan.

General Meeting of Shareholders

https://www.kirinholdings.com/en/purpose/governance/conpensation/
Auditing

Audit & Supervisory Board

Auditing

The Board

Accounting Auditor

Cooperation
Auditing

For the period from 2022 to 2024, our CSV Commitments, which is incorporated into the management
plans of the Kirin Group, is shown below.

Message fromTop Management

Status of Governance for Environmental Issues

https://www.kirinholdings.com/en/impact/csv_management/commitment/
Cooperation

Chief Executive Officer*

Auditing

Structure of executive remuneration

Medium-TermBusiness Plan
Management Targets

1

Environment
Nonfinancial CSV Commitment
indicators Employee

Financial ROIC
indicators Normalized EPS

engagement score

Environmental
Strategy

Nomination and Remuneration
Advisory Committee

President & Chief
Operating Officer* 2

Cooperation

15

Internal Audit

Group CSV Committee

Executive Officers

Group Meetings for each
Sustainability Issues* 3

Departments

Environment

Group Information Disclosure
Committee

Internal Audit

Theme

Non-financial targets

Climate Change

Rate of reduction in GHG emissions
Rate of reduction in Scope 1 + 2 emissions compared with 2019

Containers andPackaging

Recycling rate of resin for PET bottles

Water Resources

Water consumption rate at production sites and breweries
with high levels of water stress

ActivityGroup Risk and Compliance
Committee

Internal Audit Department

Item

・ TNFD
TCFD

Indicators

Group Executive Committee

LinkedGroup
Companies

Fixed remuneration
Operating Companies

Performance-linked remuneration

Group Service Companies

Trust-type stock-based
remuneration (40%)

Bonuses (30%)

Single-year PSU

Representative
Director & COO

Basic remuneration（38%）

Bonuses（26%）

of expertise in order to ensure that directors of the board, audit and supervisory board members, andexecutive officers effectively engage in Group decision-making and perform supervision and execution
aimed at achieving CSV, which is at the core of the company’s management. See below for a skill map ofsenior management.
https://www.kirinholdings.com/en/purpose/governance/provisions/

Trust-type stock-based
remuneration (36%)

Single-year PSU

RSUMedium-term plan PSU

Skills and competencies
The company appoints persons who possess the required experience, advanced insight, and a high level

RSU

Medium-term plan PSU

Other directors
and executive
officers

Basic remuneration（43%）

Bonuses（25%）

Trust-type stock-based
remuneration (32%)

Single-year PSU

RSUMedium-term plan PSU

Holistic Analysis of Risks
and Opportunities*1 Chief Executive Officer (CEO): The Executive Officer responsible for overseeing the overall management of the Group*2 Chief Operating Officer (COO): The Executive Officer responsible for overseeing the business operations of the Group*3 Group Environmental Meeting, Group Business and Human Rights Meeting, Group Health and Safety Meeting, etc.

Representative
Basic remuneration (30%)
Director & CEO

Results of financial impact assessment
We assessed the financial and asset impacts of climate change,

Estimated financial and asset impact
Environmental
themesnatural capital, and containers and packaging. We have summarized
the interrelated impacts of climate change, natural capital, andcontainers and packaging.

Physical risk*1

Decline in yields of agricultural products*22℃ scenario: Approx. 1.3 billion yen to 3.4 billion yen (2050)
4℃ scenario: Approx. 3.6 billion yen to 13.7 billion yen (2050)

Financial impact of energy due to carbon pricing

1.5℃ scenario: Approx. 10.2 billion yen (2030)
2℃ scenario: Approx. 9.4 billion yen (2030)
4℃ scenario: Approx. 5.1 billion yen (2030)

Financial impact of agricultural products due tocarbon pricing*2

RCP2.6/SSP1: Approx. 0.9 billion yen to 4.4 billion yen (2050)
RCP8.5/SSP3: Approx. 2.4 billion yen to 8.8 billion yen (2050)

Disruptions to operations owing to floods

Wind and flood damage simulation results: Approx. 1 billion yen
Actual data from past disasters (1 billion yen to 5 billion yen)

Disruptions to operations owing to droughts

Approx. 0.03 billion yen to 0.6 billion yen

Physical risk

Negative impact of PET bottles

Approx. 1.1 billion yen

Transitionalrisks

Procurement of certified products

Approx. 0.06 billion yen

Increase in infectious diseases

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

Increase in heatstroke

Market for non-alcoholic beverages that prevent heatstroke:
Approx. 94 billion yen to 188 billion yen (2100, 4℃ scenario)

Reducing food waste

Approx. 0.9 billion yen

Financial impact from the reduction of chemicalfertilizers and pesticides for coffee farms in Vietnam*3

0.11 billion yen

Business risks / social issues

Financial impacts

Exposure of production sites to floods

Approx. 1.0 billion yen to 5.0 billion yen

Residual value of related facilities due tostrengthening of energy-saving legislation

Approx. 0.11 billion yen

Climate change
Transitionalrisk*1be replaced with hydrogen and electricity before the service lifeof equipment is reached as a result of laws and regulations. For
reference, we disclose the “residual value of related facilities.”
Estimates of the financial impact related to climate change andnatural capital are limited, and we cannot determine risk from

Climate change andPhysical risk
natural capitalfinancial impact estimates alone. Accordingly, we have combined
these estimates with qualitative analysis and assessments fromscenario analysis for reflection in our strategies. For detailed analysis
results and estimate methodology, as well as specific environmental

Natural capital andcontainers andpackagingrisks and opportunities, business impact, and strategic resilience
analysis, see "Holistic Analysis of Risks and Opportunities, Business
Impact, and Strategies in Environmental Management." →P.68

Climate change

Business
opportunity

16
Natural capitalBusiness
opportunity

Environmental
themesRisk types

Climate change

Transitionalrisks

Holistic Analysis of Risks
and Opportunities* The calculation method for each financial impact is as follows.
・ Reduced yields of agricultural products due to climate change: Estimated from standard prices for beer by country as shown in the results of research using the economic models of Xie et al., and the research results of Hasegawa et al., aspresented in the IPCC “Special Report on Climate Change and Land (SRCCL).”・ Energy prices due to carbon pricing: Estimated from Current Policies Scenario and Sustainable Development Scenario in Annex A of the IEA “World Energy Outlook 2019,” and the IPCC Special Report on Global Warming of 1.5℃, etc.
・ Carbon pricing and prices of agricultural products: Estimated from the research results of Hasegawa et al., as presented in the IPCC “Special Report on Climate Change and Land (SRCCL).”・ Flood risk: The sum of the results of estimations for 200-year disasters for 20 locations in Japan using the wind and flood damage model flood simulation. In addition, the actual amount of damage caused by past disasters in the cases of Lion’sCastlemaine Perkins Brewery (approx. 1 billion yen) and Kirin Brewery's Sendai Plant (approx. 5 billion yen).
・ Drought risk: Hypothetical situation where production is affected by a drought for a certain period of time・ Negative impact of PET bottles: Estimated the financial impact in the event of a negative influence on natural capital from improperly disposed of used PET bottles that leak into the ocean from available statistics based on the company's own
production volume ratios.
・ Risk from transition to certified products: Estimation of expenses from switching to tea and coffee procured from certified sustainable farms to the extent currently possible.
・ Infectious diseases: Estimated from WHO "Quantitative risk assessment of the effects of climate change on selected causes of death, 2030s and 2050s" and “Dengue and severe dengue,” January 10 2022.
・ Heatstroke: Estimated from a S-8 2014 Report by Project Team of Comprehensive Study on Impact Assessment and Adaptation for Climate Change.
・ Food waste reduction: Estimated from the cost reduction effect if the target is achieved (Kirin Brewery, Kirin Beverage, Mercian, Koiwai Dairy).
・ Reduction in agricultural chemicals and fertilizers: Estimated reduction in costs associated with the reduction of chemical fertilizers and pesticides for coffee farms in Vietnam
・ Flood exposure: Estimated from wind and flood damage model flood simulations and actual data
・ Residual value of related facilities due to strengthening of energy-saving legislation: Residual value of boilers and trucks (for both of which, we have assumed that it is very unlikely that we will discontinue the use of before the end of their service
lives are reached if fuel conversion is required by laws and regulations. We have determined that there will be no financial impact, but for reference purposes, we disclose the residual value)

Activity

Financial impacts

・ TNFD
TCFDBusiness risks / social issues

Environmental
Strategy

We assume that it is unlikely that fuel for boilers and trucks will

Risk types

Message fromTop Management

StrategyWater risk and stress at production sites

Scenario analysis related to climate change and resilience assessment using the LEAP approach fornatural capital are as follows.

Degree of risk and stress

Scenario analysis related to climate changeHigh

Physical risk
We verified water risk, water stress, and other information for manufacturing sites (plants and breweries)
using the latest data (Aqueduct 4.0), and found that the overall level of risk is rising. Additionally, in

U.S. (7 establishments)

relation to agricultural products, we believe that if we do not take sufficient measures to address climate

China(3 establishments)change, it will be impossible to avoid a significant impact on the yields of key agricultural raw materials,

Water stress Water risk Water pollution

Water stress Water risk Water pollution

Japan (28 establishments)

as well as water risk and water stress by 2050 (2100 in some cases).

Water stress Water risk Water pollution

At present, the Kirin Group is focusing on initiatives such as the diversification of suppliers, support

Environmental
Strategy* For water risk, water stress, and water pollution,
we have referred to the following items, using the latest Aqueduct 4.0 (WRI).
Water stress: Baseline Water Stress
Water risk: Physical Risks Quantity
Water pollution: Untreated connected wastewater
Business sites are as of 2023, and the business sites
subject to assessment are listed on →P.114

Low

Message fromTop Management

Resilience Assessment

for the acquisition of sustainable farm certification, and the development of mass plant propagation
technology, and we believe that we are resilient to physical risks to some extent. Even if the Kirin Group
that it will be difficult to completely avoid the effects of global warming. Therefore, we intend to consider

Thailand(1 establishment)

Vietnam(2 establishments)

Water stress Water risk Water pollution

Water stress Water risk Water pollution

・ TNFD
TCFD

achieves our “SBT 1.5°C” target and the “SBT Net-Zero” target, however, it is becoming increasingly likely
appropriate adaptation measures and include them in transition plans.

Australia (9 establishments)
Water stress Water risk Water pollution

Transitional risks

New Zealand(3 establishments)
Water stress Water risk

With regard to the financial impact of carbon pricing on energy costs, we estimate that achieving the “SBT
17

Water pollution

1.5°C” target early will reduce energy costs by approximately 4.7 billion yen (2°C scenario) in 2030. If,
a level that we cannot ignore. We also estimate that the financial impact of carbon pricing on agricultural
prices will be similar to the financial impact of agricultural prices due to the physical effects of climatechange.

Impact of climate change on yields of key agricultural products and water stress in agricultural
production areas around 2050
Northern Europe*1 This is not a financial impact assessment that takes into account both carbon pricing and global warming impacts.

Business opportunity
In response to the impact of climate change on society, we believe there are business opportunities
related mainly to the spread of infectious diseases and heatstroke in the “Health & Well-being domain,”

99% increase in suitable land

Czech Republic-5.9%(Spring barley)

FranceUkraine-10% or more
(Winter barley)-20% or more
(Spring barley)
Mediterranean coast

Germany-14%~+18%

Relative Value(times)

20

2030
Region10

Asia-Pacific highincome countries

1981~2000
RCP8.5 MIROC
RCP8.5 MRI

2031~2050
Base period

2081~2100

RCP8.5 GFDL
RCP8.5 HadGEM

East Asia
Southeast Asia

With GDPconsideration

Without GDP
consideration

With GDPconsideration

81

56(▲31%)

92

69(▲25%)

31,09337,559(＋21%)

28,574

21,679(▲24％)

71,338(0％)

75,666Created by Kirin based on A-PLAT Projections for the Future: S-8 Research Results, published in 2016,
Chart of Excess Deaths Related to Heat Stress
https://adaptation-platform.nies.go.jp/map/national/index.html

75,669(0％)

Mediterranean coast(West) -0.3%(East) +4.4%

Change in overall wine
production for each 1℃ rise
-2.1%(Spain as a whole)-4.6% (Andalusia)-4.8% (Duero River Valley)-34.6% (northern Mediterranean)

China

China

-27.4%-9%U.S.
U.S. (Washington)

Southeast Asia

India (Darjeeling region)-16%

U.S. (Southwest)-27%

U.S. (Midwestern)-5%~-12%New Zealand-40%~-80%

168% increase insuitable land

Sri Lanka

U.S.

-46.5% to +5%

13% reduction inland suitable for arabica
16% reduction inland suitable for robusta

MalawiTea leaves

Argentina

Australia(ex. southern coast)

Chile-10~30%22% reduction in suitable land

Coffee beans

Medium to High

Brazil-19% to +4%-28.5%

73% reduction in suitable land

Wine grapes

Brazil

55% reduction inland suitable
for arabica
60% reduction inland suitable
for robusta+40% or more

Western Australia

Australia (southern coast)

Low to Medium-20%

Argentina

Decline in yields in lowlands, low impact in highlands

East Africa

Brazil-10%

60% reduction in land
suitable for arabica
52% reduction in land
India (Assam region)
suitable for robusta
3.8% decline in yields per 1°C
increase above average temperature of 28°C

Chitipa 80% reduction in suitable land
Nkhata Bay 60% reduction in suitable land
Mulanje 70% increase in suitable land
Thyolo 20% increase in suitable land

Hops

Increase in suitable land
while also anticipating
obstacles from hightemperature

+0.5%

-80%

Change in suitable land from1,500 to 2,100 meters above
sea level to 2,000 to 2,300 meters
above sea level.
Drastic reduction in suitable landin the western part of Kenya,with land remaining suitablein the mountainous area of Kenya

Barley-12%

U.S.

Japan (Central)

Korea

India

CanadaIncrease in suitable land
Pinot Noir cultivation possible+16~50%Mediterranean coast-68% reduction
in suitable land

Water Stress (around 2050)

Japan (Hokkaido)West Asia-5%~+10%

Kenya

2050

Without GDP
consideration

71,335Spain-40.6%

Corn

Soybeans

High to Extremely High

25% reduction in suitable land

Holistic Analysis of Risks
and Opportunities

Forecast population exposed to risk of dengue fever underthe 4℃ scenario(Upper: Ten thousand persons; Lower: Difference from nottaking GDP into consideration)

Excess deaths related toheat stress in Japan

Finland-8.5%

which we have identified as a key area in our Long-Term Management Vision for 2027.

0

Activity

however, we do not achieve net-zero by 2050, the impact of carbon pricing on energy prices could be atMateriality analysis of natural capitaland assessments related to natural capital.
In the scoping phase of the LEAP approach, we conducted a comprehensive assessment of the level ofHeat map of impact and dependency analysis and assessment results*2
Assessment of the dependence of businesses on nature

implementing the “Regenerative Tea Scorecard (referred to below as the “Scorecard”)” in order to promote
regenerative agriculture, which we began in 2023.
The analysis and assessment procedures are as follows.

Established based on the
judgment of procurement
departments, taking into accountthe knowledge of natural capitalin the CSV Strategy Department

Bias toward particularimport destinations

We have estimated and assessed
our bias for agricultural raw
materials procured by the
Kirin Group by applying the“Herfindahl-Hirschman index,”
which is an indicator formeasuring the competitive statusof companies in an industry.

Analysis and assessment procedures
Conducted in
the previous part
Scoping

Determine the scopeof assessment

18

Evaluate

Survey of the state ofnatural capital andbiodiversity in andaround 10 tea farms in
Sri Lanka

Qualitative review ofdependencies andimpacts related tonatural capital on tea
farms in Sri Lanka

Confirmation that thetea farms are locatedin regions with highbiodiversity.
Confirmation of
appropriateness ofpriority location

Tea cultivation
depends on water andsoil, which are being
damaged by climatechange and economic
development

We are also utilizing the results from 2023 this time

AssessAssessing risks
and opportunities

PreparePreparing reports

Step1
Identification of risks andopportunities

Disclosure inaccordance with
TNFD guidance

Identification of natural
capital-related risks andopportunities for Kirin at tea
farms in Sri Lanka

Described in"Futuredirections"

Step2
Assessment of risks andopportunities through scenario
analysis
Assessment and prioritization ofrisks and opportunities identified
in relation to natural capital

Assessment axis
Agricultural product

Reiteration of theappropriateness ofdesignating tea farms in Sri
Lanka as a priority
target/region

LocateLocating our
Evaluating ourinterface with nature dependencies and impacts

Ecosystem
services that
we dependon

Indicators

Scoping implementation
Based on an overview of the business domains and value chain of the Kirin Group as a whole, we have establishedpalm oil, coffee beans, and soybeans" which are covered by the “Kirin Group Action Plan for Sustainable Use of
Biological Resources,” as well as "barley, hops, and wine grapes," of which we procure large amounts, on the twoaxes of "impact of our businesses on nature" and "nature-related dependencies of our businesses." We then used

Soybeans

Hops

Concerning the “impact of our businesses on nature,” we assessed the following indicators: “carbon footprint

Wine grapes

considered. We also confirmed whether agricultural products are listed as high risk by the SBTN and the European
Regulation on Deforestation Free Products (EUDR).

GHG
emissions

Acreageper unit
yield

Relativeassessmentof impact
Number ofFreshwater
high-riskuse (watercommodities
footprint)
listedBarleymaterial production areas,” and “bias toward particular import destinations.”basis, and which are among the impact factors listed by IPBES*1 that the TNFD recommendations state should be

Relativeassessmentofdependency

ChangeResource
Commodityin land/use/
risk
freshwater/conservation
ocean use

Palm oil
Coffee beansat the cultivation stage,” “land use footprint,” and “water footprint,” for which data is available on a per-crop

Kirin bias
towardparticularimportdestinations

ClimatechangeCartons

the LEAP approach for scoping of the agricultural products to be analyzed in detail.

assessment indicators: “procurement volume,” “impact on Group sales revenue,” “possibility of substituting raw

ImpactProvisioning services

Possibility of
substituting
production
sites

List of commodities
covered by the EUDR

Cardboard

For the “nature-related dependencies of our businesses,” in order to assess our dependence on “provisioning
services” for agricultural raw materials, as indicated in the TNFD recommendations, we used the following original

SBTN High Impact
Commodity List

Holistic Analysis of Risks
and Opportunities

agricultural raw materials. For this reason, we analyzed and assessed "black tea leaves, paper/printed materials,

Commodity risk

Dependence

Percentage
of total sales
revenue fromAmount ofproducts
agriculturalfor whichproducts
agricultural
procuredcrops arethe mainingredient(s)Water footprintof agricultural
products

Black tea leaves
Paper andprinted materials

the hypothesis that there is a high degree of dependence and impact on nature at the stage of procuring

Land use footprintof agricultural
products

Activity

Analysis and assessment
from the perspective of"dependence of businesses
on nature" and "impact ofbusinesses on nature,"
based on the hypothesis of
agricultural materials as
materials

Conducted in this part

Carbon footprint
at the cultivation
stage of agricultural
products

・ TNFD
TCFD

Possibility of
substituting raw material
production areas

Environmental
Strategyin Sri Lanka by supporting the acquisition of certification, which we have been doing since 2013, and by

Calculate the percentage ofoverall sales revenue of a fortypical brands used

Introduction/
removal of invasive
species

The Kirin Group has identified that there is high possibility of reducing risks associated with natural capital

Percentage of total sales
revenue from products
for which agricultural
raw materials are themain ingredient(s)Contamination/
decontamination

various ways, not only by climate change, but also by economic development.

Calculated from procurementdata

Resource
use/conservation

risks and opportunities using the LEAP approach. The results show that Sri Lanka's natural capital is affected in

Amount of agricultural
raw materials procured

Change in land/
freshwater/
ocean use

selected tea farms in Sri Lanka as a field where we can perform concrete activities, and analyzed and assessed

Climate change

dependency and impact, and we are prioritizing coffee beans, hops, tea leaves, and soybeans as a result. We

Assessment of the impact of our businesses on nature

Message fromTop Management

Based on v1.0 of the TNFD recommendations and the updated LEAP approach, the Kirin Group reassessed issues

High

Low

*1 IPBES: An intergovernmental organization that scientifically assesses trends related to biodiversity and ecosystemservices and strengthens links between science and policy*2 For GHGs, we used the ClimateHub database; for land use, we used data for 2022 disclosed by the FAO; forfreshwater, we used Mekonnen-Hoesktra (2011)environmental assets: water resources, land ecosystems, land, and air. We also identified external factors andexternal stakeholders for each important natural capital and determined risks and opportunities.

Materiality analysis of main raw materials

the “impact of our businesses on nature"and the “nature-related dependencies(%) Coffee beans
100of our businesses.” The horizontal axis

90

indicates dependency, and the vertical

80

axis indicates impact. Based on this

Although we have not yet fully consideredvertical axis, we put “market forces,” with the state of strict regulation and high awareness among consumers

60

30
20

results are consistent with knowledge

And based on the "important implications" obtained in this way, we have summarized our future directions (Prepare:preparing reports) as follows.

BarleyHighly consistent and shared
Cardboard

Wine grapes
0

20

40

60

Dependence

80

100

120 (%)

Scenario #2
Awareness of theclimate crisis rises
and there is a race
to implement
initiatives

Analysis and assessment of risks and opportunities based on the LEAP approach
We analyzed and evaluated our dependence and impact, and risks and opportunities for tea leaves from Sri Lanka,

Degradation ofwhich we have designated as a priority target and priority location in the scoping described in the preceding
paragraph. For the Locate and Evaluate stages, we used data from when we conducted these processes andScenario #4

disclosed them in our environmental report in 2023.
19

The priority ofnature initiatives
is lower

Business model/value chain

Dependence
pathways● ● Control of pests and diseases● Soil necessary for tea plant cultivation● Reduction in domestic water use by residents

Impactpathways

in farms and local communities/degradationof drinking water quality● Environmental degradation caused by idle tea
farms where tea leaf cultivation has beenabandoned● Reduction in forests used by communities● Criticism of artificial damage to wildlife andrare species● Stricter regulations/penalties due to soil
contamination, etc.

* Impact drivers and external factors are color-coded for each of the four environmental assets (water resources, land ecosystems, land, and air).
In fact, we have analyzed and assessed each risk and opportunity in detail, but we have only provided the key points here.

Assess (assess risks and opportunities)
Based on lists of important impact drivers and ecosystem services compiled during the Evaluate phase, wecreated a diagram showing the relationships between dependency and impact pathways for each of the four

Scenario #3
Kirin's activities are
not correctly
evaluated and there
is no improvement inour product brands

Increased risk in
the non-alcoholic
beverages
business

Future directions (Prepare: preparing reports)
In response to important implications gained from the Assess stage, we have summarized our future activities at
Sri Lankan tea farms as follows.
We plan to incorporate these activities into our medium- to long-term roadmap in the future.
Important implications gained from risk and opportunity assessment
Summary of assessmentof physicals risks

Opportunities, scenario #2, and scenario #3

Physical risks andopportunities●Natural disasters due to climate change, fall in yields, anddecline in tea leaf quality●Erosion of topsoil due to land use changes associated witheconomic development●Low genetic diversity and potential for the spread of disease intea plants●Improvements to farm resilience with certification training

Policy and regulatory
risks●Stronger regulations are unlikely because the aggressive shift toexcessive organic farming significantly impacted agriculture

Market and valuation
risks (consumers)●It is unlikely that there will be an expansion in ethicalconsumption in Japan anytime soon
●Future generations are highly interested in sustainability

Market and valuation
risks (investors)●Investors are highly interested in Nature Positive and regenerative
agriculture

Liability risk
(community)●The likelihood of facing penalties for legal violations is assumed
to be low

●In addition tocertification training,
we are also using
the “scorecard” tospread regenerative
agriculture at tea farms●Improvements to soil
moisture retention
at tea farms throughweed management, as
well as water source
conservation activities
on farms●As necessary, expand
the landscapeapproach adopted
in Sri Lanka to those
production areas

Holistic Analysis of Risks
and Opportunities

Other organizations, societies, and nature

Nature-related risks and opportunities

Changes due to external factors● Strengthened laws and regulations/penalties
related to water resources● Spread of disease in tea plants with scarce
genetic resources● Strengthened laws and regulations/penalties
related to wildlife and ecosystems● Strengthened laws and regulations/penalties
related to soil contamination and soil runoff● Reduction in tea leaf yield and quality due toglobal warming● Strengthened laws and regulations/penalties
related to GHG emissions● Surface water for tea plant cultivation

Severe degradation

Consistency low and conflicting

Ecosystem services

Nature (environmental assets)

Important impact drivers● Deterioration of water quality and damage tohealth from agricultural chemicals, etc.
● Changing/abandonment of tea farms● Decline and extinction of rare animals, anddecline in reputation● Soil contamination by agricultural chemicals
and chemical fertilizers● Soil runoff/soil contamination● GHG emissions from farms

Assumehigh feasibility

Activity

Relationship between dependency and impact pathways

ecosystem services

Risk-opportunity importance map for two scenarios

・ TNFD
TCFD

Scenario #1
SteadilypromoteNature Positive

Consistency of market and non-market forces

0

capital over many years and are credible.

financial impact, we created risk maps and conducted assessments.

Cartons

10

gained from our initiatives targeting naturalscenarios. Based on the risks and opportunities identified at the previous stage, as well as the magnitude of thePalm oil40

assessment items, we believe that thethe bottom. Within this framework, we selected “nature degradation” scenarios #2 and #3 as the most realistic

Soybeans

50

some factors, such as the weighting ofand investors at the top, and the state of loose regulation and low interest among consumers and investors on

Black tea leaves

Environmental
Strategybeans, hops, tea leaves, and soybeans.

Impactwe are prioritizing four raw materials: coffee

Hops

70

“materiality analysis of main raw materials,”

We then conducted scenario analysis. We put “ecosystem services” on the horizontal axis of the scenario, withthe status quo level of natural capital on the right and the degradation of natural capital on the left. On the

Message fromTop Management

Materiality analysis and assessment results in scoping
We conducted analysis and assessment ofWe have formulated holistic business transition plans which aim to simultaneously realize a decarbonized

Investment plans and financing planssociety, Nature Positive, and Circular Economy, ensuring business continuity.

Investment and financing plans for "Scope 1+2 GHG emissions reduction" and "expansion of the use of

Our transition plans from the perspective of climate change mitigation and adaptation are shown in therecycled PET resin" are as follows.

figure below.

Scope
1+2 GHG
emissions
reduction

Expansionof the use ofrecycled PET
resin●Enhance manufacturing facilities for small PET
bottles at the Kirin Beverage Shonan Plant(investment of approximately 10 billion yen)
●Plan to formulate investment roadmaps with aview to developing practical applications forchemical recycling●In 2020, we issued a green bond (10 billion
yen) to finance the procurement of recycled
PET resin and the installation of a heat pumpsystem at plants●In December 2022, we became the first foodand beverage company in Japan to develop
a framework that complies with transition
finance-related guidelines, etc., and to haveobtained a second party opinion from an
independent third party in order to promotetransition initiatives on the finance side
●In January 2023, we became the first food andbeverage company in Japan to raise funds witha transition-linked loan (50 billion yen), which
is aimed at financing energy conservation
and renewable energy-related projects that
contribute to reducing Scope 1 and Scope 2
emissions

Reduce the weight of containers

Mitigation measures

Increasing rate of use of recycled aluminum in aluminum cans and using GHG-free aluminum cans
Increasing the horizontal recycling rate of PET bottles and the rate of use of recycled aluminum in aluminum cans
Reduction of GHG emissions from farmland through regenerative agriculture, etc., and carbon storage
Optimization of production and distribution (improvement of transportation efficiency (modal shift and joint distribution))
Exploration and introduction of EV and fuel cell truck technologies, etc.
Supply chain analysis and stronger cooperation with business partners (cooperation in setting targets and reduction plans)

Scope1+２ (compared to 2019)

Scope3 (compared to 2019)20

30%

Net zero

2030

2050

reduction

We make investment decisions based on annual plans to address issues related to containers andNature positive

packaging other than expanding the use of recycled PET resin.
Plastic circulation 100%

Full-scale development of regenerative agriculture
Breeding varieties suited to global warming /Utilization of mass plant propagation technology
Flood response / Water reduction
Water source conservation activities
Heatstroke prevention and immunity support through Health Science

The cost for Nature Positive-related measures is around 20 million yen per year. This is the total
amount, which is broken down into current support for obtaining certification for tea farms in Sri Lanka,
development and pilot testing of the Scorecard for regenerative agriculture, and joint research with
NARO, including carbon storage at Mariko Vineyard. We anticipate that it will still take several years to
fully implement regenerative agriculture, and that additional costs will be required. Further expenses
for research and implementation will also be necessary for our next targets, such as soybeans, hops,
and barley.
The main targets for the reduction of Scope 3 emissions are containers and packaging and agricultural
raw materials. We envisage that regenerative agriculture will be a key adaptation and mitigation
measure for climate change related to agricultural raw materials. In light of this background, when
considering “Scope 3 transition plans” in the future, we plan to consider transition strategies relatedto "Nature Positive" and “Circular Economy,” and thus formulate holistic plans that also incorporate
investments and costs.

Holistic Analysis of Risks
and Opportunities

Adaptation measures

Procurement of raw materials from sustainable farms and certified forestry /Support for obtaining sustainable farm certification / Prevention of soil runoff with cover crops

Activity2025

50%
reduction

・ TNFD
TCFD

Financing plans●Plan to reduce GHG emissions on a profit and - loss neutral basis by balancing energy
cost reductions by saving energy andtransition costs (e.g. CAPEX of projects andcost premium of renewables).
●In order to promote environmental
investments, 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 ICP(Internal Carbon Pricing) as a method formaking investment decisions●Plan to consider strategies for 2030 andbeyond, based on the assumption that there
will be infrastructure and technologicalinnovation

Environmental
Strategy

Investment plans

Message fromTop Management

Transition Plans

The Kirin Group is working to reduce GHG emissions based on a roadmap consistent with the “SBT 1.5°C”
target for 2030 and the “SBT Net-Zero” target for 2050. We plan to create concrete measures, not only to
reduce GHG emissions, but also to mitigate and adapt to climate change.
Scope 1+2 emissions reduction
Our roadmap for reducing Scope 1 and Scope 2 emissions by 2030, as well as our investment andScope 2 emissions, namely: “promotion of energy conservation,” “expansion of renewable energy,” and（%）
Obtained approval for “SBT for 2.0°C”
100
Ratio of
Joined RE100
renewable energy
in electric power02017 2020
2022

each area are as follows.
ActionEnergy transition●Completed the transition of fuel to natural gas at all Kirin Brewery and Kirin Beverage plants,
as well as the Mercian Yatsushiro plant●Lion plans to install an electric boiler at a brewery in New Zealand. The company plans to
expand its use of electric power generated from renewable energy

Focus on promoting energy conservation and expanding
renewable energy through 2030

Net
zero

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

2021

3.0
billion yen

2022

2023

2024

22.4
billion yen

2027
35.0
billion yen

2030 2033

2050

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

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

Reduction of Scope 1 and Scope 2 emissions(ktCO2e)

700
600

Kyowa Hakko Bio

609

Kyowa Kirin
Lion

500

201

400

41
84

300

184

97
22
53
26
30
88

133

2024

2021

Kirin Beverage

316

23
56
35
35

40

100
0

123

59

200

Mercian

405

2027

255

Kirin Brewery
79
22
50
25
11
68

2030

(100million yen)

500

Investment and measuresfor energy conservation

422
350

300

12
9

224
237

200

Energy transition
362

150

100
0

30

15
15

74

2019-2021
MTP

2022-2024
MTP

104

2025-2027
MTP

Expansion of renewableenergy use

48

2028-2030
MTP

Holistic Analysis of Risks
and Opportunities

Investment

400

Activity

Expansion ofrenewable energy●At Kirin Brewery, we have installed large-scale solar power generation facilities at all nine
plants (PPA model at eight plants excluding the Yokohama Brewery)●Mercian introduced solar power generation using a PPA model at the Fujisawa Plant●Kyowa Kirin introduced a large-scale solar power generation facility (1.47MW) using a PPA
model at the Ube Plant●Kyowa Hakko Bio introduced solar power generation using a PPA model at the Hofu Plant●Lion acquired carbon neutral certification in Australia, as well as Toitū carbon zerocertification in New Zealand●Lion installed solar power generation facilities at Castlemaine Perkins Brewery and Little
Creatures Geelong

2050

・ TNFD
TCFD

21

Promotionof energy
conservation●Kirin Brewery introduced heat pump systems at the wastewater treatment facilities of six
plants in 2019
●At Shinshu Beverage, we reuse waste heat, which is difficult to use directly in rinsing
processes for bottles and caps, through a heat pump unit
●At the Kirin Brewery Okayama Plant, we reuse waste heat in hot water sterilizationequipment for cans and heat in the air

2040

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+
Scope202030

Obtained approval for “SBT for Net-Zero”（ktCO2e）800“energy transition,” and will also develop ways to optimize production and logistics, etc. Our actions in

100% of electric powerfrom renewable energy

Environmental
Strategyfinancing plans, is shown on the right. We will take a three-pronged approach to reducing Scope 1 andRoadmap to Net-Zero

Message fromTop Management

Plan to transition to a decarbonized societyAs part of our efforts to resolve issues related to Scope 3 emissions, we launched the “Kirin Supply

Of the categories in the “Scope 3 Standard” of the GHG Protocol, Category 1 (purchased goods andChain Environmental Program” to deepen cooperation with suppliers that account for large amounts

services) emissions from “containers and packaging” and “agricultural raw materials” account forof emissions, in areas such as containers and packaging, agricultural raw materials, and manufacturing

approximately 70% of the Kirin Group’s Scope 3 emissions. Category 4 (upstream transportation andcontractors. Under science-based approach, we will call for the mutual disclosure of emissions data

distribution) emissions from “transportation” make up approximately 10% of the total. These twoand the setting of targets in accordance with SBTi standards, provide support for the establishment of

categories are the main targets of the Kirin Group's efforts to reduce Scope 3 emissions.

targets, and jointly formulate and implement highly feasible measures to reduce GHG emissions.

We will continue working to reduce Scope 3 emissions through the two approaches of the “reduction

We have positioned Mariko Vineyard in Japan and tea farms in Sri Lanka as model cases to accumulateof our own independent emissions” and “encouragement of reduction at suppliers.” Transportation andknowledge on climate change mitigation and adaptation through regenerative agriculture. This knowledge

containers and packaging are the targets for reducing our own independent emissions. We will leverage

gained will be applied to other agricultural products and production areas.

Environmental
Strategy

the Institute for Packaging Innovation, which develops containers and packaging in-house, and which is
the only institute of its scale for a food and beverage company in the world.
We encourage suppliers to reduce GHG emissions from the production of containers and packaging
and their materials, and GHG emissions during the production of agricultural raw materials. We havedetermined that regenerative agriculture is effective way to reduce GHG emissions from agricultural
products. Our key actions are as follows.

Approach to reducing GHG emissions from agricultural raw materials

Agricultural raw
materials (26% of
Scope 3 emissions)●Initiation of joint research on the accurate measurement of GHG emissions from soil at
Mariko Vineyard and carbon storage using biochar from pruning debris●N ew Bel gium Brewing (U. S.) has begun procuring barley through regenerative
agriculture

Transportation (12%of Scope 3 emissions)●Optimization of production and distribution, joint distribution, and modal shift●Consideration of conversion to fuel cell trucks and EV trucks

Water resources

Biologicalresources

7％
12％

12％

Production of raw materials
26％

28％

Production(plants)

Storage andlogistics

Consumers

Recycling
Certified products

Approach to reducing GHG emissions from containers and packaging

Sustainable
resources

Process improvement

Development of new containers

EnergyWeight reduction technologies
Reuse

Water resources

Production of materials
Other Category 1
Transportation

Bio

Distribution

Biologicalresources

Product use & disposal

Raw materials(upstream suppliers)

Procuremen(business partners)

Production(plants)

Storage andlogistics

Consumers

Other
Recycling* Emissions other than the above (emissions from the manufacture andtransportation of capital goods, fuel, etc., waste from business operations,travel and commuting of employees, etc.)

Resources(waste cans, waste PET, waste cardboard, waste bottles, etc.)

Certified products

Holistic Analysis of Risks
and Opportunities

13％

Procurement(business partners)

Food loss

Proportion of Scope 3 emissions2％

Raw materials(upstream suppliers)

Activity

Containers andpackaging (28% of
Scope 3 emissions)・ TNFD
TCFD

Energy●In addition to reducing the weight of cans, we will also increase the rate of CAN to CAN
recycling, reducing the use of virgin materials and increasing the rate of use of recycledmaterials as much as possible●For aluminum cans, in response to the start of the development of practical applications
for GHG-free aluminum refined using renewable energy, we will research GHG-freealuminum●For PET bottles, in order to increase the PET to PET horizontal recycling rate, we will
increase the use of mechanically and chemically recycled materials, while also reducing
GHG emissions from the manufacturing process●We will contribute to the reduction of GHG emissions from transportation by reducing theweight of containers and packaging

22

Process
improvement

Regenerative agriculture

ActionMessage fromTop Management

Scope 3 emissions reduction

We will organize our transition to Nature Positive using the AR3T framework for natural capital proposed

We have adopted a landscape approach, which is "a method for sustainably solving issues based onby the SBTN (SBTs for Nature).

a comprehensive treatment of various human activities and the natural environment in raw material

ActionReduce23●Support the acquisition of Rainforest Alliance certification by tea farms in Sri Lanka andcoffee farms in Vietnam●Reducing food loss and waste●Introduction and continued operation of advanced water treatment using reverse osmosis
membranes at breweries in Australia, where there is a high level of water stress

Priority of manufacturing sites for each indicator: Water stress●Utilization of derelict farm land as Japan Wine vineyards. Restore ecosystems throughhedgerow-style cultivation●Conserve water sources on farms in Sri Lanka●Water source conservation activities at production sites in Japan●Participate in the development of guidance for the disclosure of financial information related
to natural capital, such as the TNFD and SBTs for Nature●Contribute to the expansion of the supply of FSC-certified paper by establishing a
consortium for sustainable paper use with other companies and NGOs
●Establish the Rainforest Alliance Consortium and contribute to raising awareness ofsustainable agriculture

On March 29, 2024, the Ministry of the Environment, the Ministry of Agriculture, Forestry and Fisheries,
the Ministry of Economy, Trade and Industry, and the Ministry of Land, Infrastructure, Transport andTourism jointly announced the "Transition Strategies toward Nature Positive Economy," reflecting
discussions by the Ministry of the Environment's “Study Group on Nature Positive Economies,” in which
the Kirin Group participated. One of the three points of view presented in this report is the “necessityof transition to Nature Positive management and contribution to the conservation of natural capital and
Projects in Sri Lanka and at vineyards in Japan are examples of "Nature Positive through business," inwhich we will restore and maintain “secondary nature” through business activities, and we believe thatthese examples fall under the "contribution to the conservation of natural capital and value creation" in
the Ministry of the Environment's transition strategies.
In accordance with the results of materiality analysis             atthe product level for agricultural raw→P.18
materials, we plan to consider our roadmap for soybeans, hops, and other products listed in the future.

In freshwater areas, we are researching water stress and impact (water intake) in relation to water
volumes in the basins of production sites and prioritizing the areas, in accordance with SBTs for Nature
guidance V1.0 issued in May 2023.

Country

Water stress

Water intake

Biokyowa

★★★★★

★★★★★

★★★

ThailandThai Kyowa Biotechnologies

★★★★★

★★★★★

★★★

Japan

Kyowa Pharma Chemical

★★★★★

★★★★★

★★★

Japan

Kirin Brewery Toride

★★★★★

★★★★★

★★★

Japan

Kirin Brewery Yokohama

★★★★★

★★★★★

★★★

Japan

Kirin Distillery Gotemba

★★★★★

★★★★★

★★★

Japan

Kyowa Kirin Fuji

★★★★★

★★★★★

★★★

Australia

Lion Tooheys Brewery

★★★★★

★★★★★

★★★

Japan

Kirin Brewery Nagoya

★★★★★

★★★★★

★★★

China

Shanghai Kyowa Amino Acid

★★★★★

★★★★★

★★★

Japan

Kirin Beverage Shonan

★★★★★

★★★★★

★★★

Lion Castlemaine Perkins Brewery

★★★★★

★★★★★

★★★

China

Kirin Brewery (Zhuhai)

★★★★★

★★★★★

★★★

USA

New Belgium Brewing Fort Collins

★★★★★

★★★★★

★★★

USA

Australia

Manufacturing sites

Biodiversity risk

* We assess water stress using three indicators for available water resources (Aqueduct Baseline Water Stress, Water
Risk Filter Baseline Water Depletion, and Blue Water Scarcity)* Water intake refers to the percentage of the total intake for 14 sites with high water stress* We assess biodiversity using scores for indexes calculated based on the IUCN Red List for basins at production
sites (START (Species Threat Abatement and Restoration) and STARR), as well as the presence of biodiversity
elements triggering KBA criteria inhabiting water within a 50km radius of basins at production sites, including fish,
amphibians, turtles, crustaceans, and dragonflies

Holistic Analysis of Risks
and Opportunities

value creation.”

which we launched in 2024, we intend to expand the regions where to which this method applies.

Activity

Transform

practice in Sri Lanka and vineyards in Japan, but through the “Kirin Supply Chain Environmental Program,”

・ TNFD
TCFD

Restore &regenerate

stakeholders," which the TNFD requires to be disclosed. Currently, we have only put this method into

●Achieve and maintain 100% use of FSC-certified paper and expand this initiative globally●Achieve and maintain 100% RSPO certified credits for palm oil as primary and secondary raw
materials (excluding palm kernel oil), and avoid procurement from countries and regions at
risk of deforestation●Continue development of applications for bag-type culture vessel technology that enables
mass plant propagation with minimal water●Education on wildlife conservation for young people living on farms in Sri Lanka

Environmental
Strategy

Avoid

production areas," to address issues related to "indigenous peoples, local communities, and affected

Message fromTop Management

Plan to transition to Nature Positive

Containers and Packaging

Food loss and waste

We will adopt a 3R+Renewable approach for promoting a transition to the circular economy for

The Kirin Group position issues related to food loss and waste, as issues for not only Nature Positive but

containers and packaging. Our main actions are as follows.

also  the circular economy. In order to reduce product waste losses, we are promoting manufacturing

ActionRecycle●We collect old beer bottles and one-way bottles, turn them into cullet, and reuse them asbottles●Expand the use of aluminum cans with a high percentage of recycled metal.
●We collect empty containers from vending machines and voluntarily collect and reusealuminum cans in cooperation with can manufacturers.
●Lion has developed a “Sustainable Packaging Strategy,” and will assume key roles such ascollection coordinator in states where Container Deposit Schemes are in place in Australia.
●Based on the “Kirin Group Plastic Policy,” our medium-term target is to achieve a rateof recycled resin use in 50% of PET bottles in Japan by 2027.
●In terms of “R100 PET bottles,” we will gradually expand the adoption of productsthat use 100% recycled PET resin from mechanical recycling, the current mainstream
method.
●We will also actively promote "bottle-to -bottle" horizontal recycling, in which used
PET bottles are collected and recycled into new PET bottles.
●Looking ahead to future supply and demand for recycled PET resin, we will formulate
and promote a roadmap for 2050, taking into account the status of progress on thedevelopment of practical applications for chemical recycling.

Renewable●We will promote the reduction of one-way plastics and their replacement with alternative
materials.

24

spent grains) as feed and compost.

Activity●We will continue to reuse returnable beer bottles

organizations. We are continuing to effectively use by-products generated in manufacturing processes (e.g.,

・ TNFD
TCFD

Reuse

such as the donation of unavoidable surplus inventory to local governments, food banks, and otherEnvironmental
Strategy

Reduce●Utilize the “Institute for Packaging Innovation” to promote weight reduction for containers
and packaging. Specifically, we developed and deployed the lightest returnable beer bottle
produced in Japan and reduced the weight of cans and PET bottles.

optimization by improving demand forecasts. In addition, we are promoting effective utilization methods,

Message fromTop Management

Plan to Transition to Circular Economy

In the EU, the transition to a circular economy is positioned as part of growth strategies, and "design"
is expected to play an important role in promoting this transition. Internally, the Kirin Group has theInstitute for Packaging Innovation, which focuses on developing containers and packaging and solving
related to the environment for containers and packaging. In addition to contributing to reducing GHG
emissions in transportation by measures such as reducing the weight of containers and packaging, we
will also contribute to the circular economy by creating practical applications for chemical recycling andbuilding a society that recycles plastics throughout society.

Holistic Analysis of Risks
and Opportunities

related problems. Taking advantage of this strength, we are able to solve social issues through design

the aforementioned transition plans are shown below.

Nature Positive, and a circular economy, but in reality, we will implement these plans as a single unified

Our specific activities and their results in relation to natural capital, in accordance with the SBTN's AR3T

plan that takes into account their interconnectedness. Our specific activities and their results for each offramework, are summarized below.

Climate change strategies and progress
Increase in resilience (adaptation)
Material agenda

Water resources

Biological resources

Climate change●Creation of more
lightweightcontainers●Increase rate ofuse of recycled
aluminum inaluminum cans●Consider theuse of GHG-freealuminum cans
●Increase thehorizontal
recycling rate of
PET bottles●Promotion of energy conservation●Expansion of renewable energy●Energy transition●Production optimization●Improvement of transportation efficiency (modal shift
and joint distribution)●Exploration and introduction of EV and fuel cell truck
technologies, etc.

●Provision of
products
to address
infectious
diseases●Provision of
non-alcoholic
beveragesthat prevent
heatstroke●Started surveys ofhigh-risk business sites
for insurance coverage,
utilizing the results ofsimulations of natural
disasters and floods(since 2022)●Implemented flood
prevention measuresand equipment
measures at
pharmaceutical plantsthat must ensurea stable supply of
products●Establishment of massplant propagation
technology for hops
●Coinciding with pilot
testing of scorecards
for tea farms in Sri
Lanka, cover crops
preserve soil moistureand prevent soil runoff
in heavy rainfall●Began a joint
study oncontrolling
GHG emissions
from soil andcarbon storage
with biochar
at Mariko
Vineyard●Continued
use of biogas
from anaerobic
wastewater
treatment●Began activities
as the Japan
representativeof the Alliance
to End Plastic
Waste●Increased use of
R100 PET bottles
made with 100%
recycled resin●Practicalapplications
for chemical
recycling●Introduced large-scale solar power generation facilities
at nine Kirin Brewery plants (through 2023, including
eight breweries and plants with PPA model purchasing),
Mercian Fujisawa Plant (2023), Kyowa Kirin Ube Plant(2023), Kyowa Hakko Bio Yamaguchi Production Center,and Lion Castlemaine Perkins (2019) Achieved 100%of procured electricity from renewable energy sources
at all Kirin Brewery plants and operating sites (2024),
Kyowa Kirin Takasaki Plant, Ube Plant, and researchlaboratories, all Lion plants in Australia and New
Zealand (2023), and all Château Mercian wineries(2022). Became the first global food and beveragecompany to obtain approval for an SBT Net-Zero (2022)●Launched the Kirin Supply Chain Environmental Program
to strengthen cooperation with major suppliers (2024)●Enhancementof productlineup●Supply ofmaterials
to partnercompanies●Raising
awareness ofheatstroke●Contribution to the
TNFD pilot program,including the worldleading LEAP trial
disclosure (2022) and
scenario analysis trial(2023)●Participation in thepilot test of Corporate
Engagement Programin SBTN for Nature(from 2021)

Activity●Reduction of
GHG emissions
from farmland
throughregenerative
agriculture andcarbon storage●Use of biogas

・ TNFD
TCFD●Procurement ofmaterials fromsustainable farms
and forestry andsupport for obtaining
certification●Prevention of soil runoff
with cover crops●Breeding varieties
suited to global
warming●Utilization of massplant propagation
technology

Environmental
Strategy

Progress

Business opportunity●Sharing flood knowledge●Equipment and facility measures against flooding●Sharing drought knowledge●Development and deployment of water usage
reduction technology●Conservation of water sources
Response strategy

25

Minimization of impact on natural capital (mitigation)
Containers andPackaging

Message fromTop Management

We have separately provided information concerning plans for transition to a decarbonized society,

Strategies and progress related to natural capital (AR3T-compliant disclosure)
Material agenda

ReduceRestore &Regenerate

Transform

Biological resources●Continue development of applications for water-bag type culture vessel technology●Achieved and maintained 100% FSC-certified paper in the Japan Non-alcoholic
Beverages Businesses●Achieved and maintained RSPO100% for operations in Japan (excluding palm kernel oil)

●Appropriate water conservation in accordance with the level of water stress●Introduction and continued operation of advanced water treatment using reverse
osmosis membranes at Lion, which faces a high level of water stress●Implementation of the training to support the acquisition of Rainforest Alliancecertification by tea farms in Sri Lanka, development and pilot testing of the scorecard●Continuing support for coffee farms in Vietnam to acquire Rainforest Alliance certification●Reducing food waste in the alcoholic and non-alcoholic beverages businesses in Japan●Conservation of water sources on tea farms in Sri Lanka and provision of education to
local residents●Continued water source conservation activities at production sites in Japan that began
in 1999●Restore ecosystems through the conversion of derelict farm land into hedgerow-stylevineyards●Conducted education on conserving wildlife, including the black panther, for young
people in areas around farms in Sri Lanka●As a participant in the Corporate Engagement Program of SBTs for Nature, we arecontributing to the development of a framework for scientific target setting related tonatural capital●World-leading disclosure using the LEAP approach, participation in joint scenario
analysis in response to request from the TNFD●Contribute to the expansion of the supply of FSC-certified paper by establishing a
consortium for sustainable paper use with other companies and NGOs
●Contribution, including establishing the Rainforest Alliance Consortium to raiseawareness of sustainable agriculture

Holistic Analysis of Risks
and Opportunities

Avoid

Water resources

Risk and Impact Management
Improving risk response capabilities

and transitional risks related to climate change detected in scenario analysis →P.14〜P.15 . Senior

For physical and transition risks such as climate change, which will have an extremely large impact on ourmanagement deploys mitigation and adaptation strategies and manages targets under the supervision ofbusinesses if they occur, even though the probability of occurrence is uncertain, we have adopted a new

the Board. The same applies to overall risks related to sustainability, including the degree of dependence

approach to identify and examine important risks by setting scenarios and using them to analyze andand impact on natural capital and the creation of a circular economy. In this section, we describe ourassess risks. In scenario analysis, we utilize various research papers, science-based risk assessment tools

monitoring system for important risks and our response to the acute risks posed by climate change.

such as Aqueduct, etc. We have already begun assessing the identification of dependencies, impacts,

Risk management systemat the level of senior executive officer or higher from Kirin Holdings. This committee oversees all aspectsof risk management activities, including the collection of information related to risk, the formulation ofGroup risk policies, risk mitigation initiatives, information sharing at times of crisis and consideration ofcountermeasures, and instructions and support for Group companies. Risks and opportunities related
to sustainability include environmental issues such as climate change, natural capital, and the circular
economy; social issues such as human rights, local communities, indigenous peoples, small-scale farmers,

value chains, on a trial basis, in accordance with the TNFD guidance, and we intend to incorporate it asa regular process in the coming years. The Group Environmental Meeting and the Group CSV Committee
share and discuss risks and opportunities identified through these processes, then they are not only
submitted and reported to the Board, but the Group Risk and Compliance Committee Secretariat also
receives reports on such risks, and manages them together with other risks. Additionally, we shareinternal examples of sustainability-related risks, such as responses to climate disasters, within the Groupin order to strengthen resilience across the Group as a whole.
Risk management systemmanagement system, “opportunities” are included in the management of “risks”).
The Board deliberates basic policies concerning important risks for the Group and risk management

KH The Board

developed by the Group Risk and Compliance Committee and receives quarterly reports on risk
monitoring. Both the Board and the Group Risk and Compliance Committee receive risk status reports
from the Secretariat on a monthly basis. Group companies use similar processes as those determined
26

Supervisionand direction

Kirin Holdings

by the Board of Kirin Holdings to conduct risk management, based on basic policies for important risks
Holdings monitors important risks for each Group company for each functional division.

Support and direction

Group companies

Supervisionand direction

which are physical and acute risks related to climate change, and which are becoming more frequent andBoard of Kirin Holdings receives reports on the status of crises expected to have a significant impact as
appropriate and issues necessary instructions. After a response to an individual crisis has been completed,
we review the risks involved and the progress of measures to respond, and share our experience within theGroup in the form of revisions to response manuals and BCPs, contributing to a sustained strengtheningof management resilience. For example, we utilized knowledge gained from dealing with the 2011 flood in
Queensland, Australia, to speed up the reopening of the brewery following the 2022 flood in that area.
We also leverage this knowledge to strengthen our plants and breweries’ ability to respond to floods that
occur every year in Japan. Furthermore, we leveraged our experience of torrential rain in western Japan in2018 to protect logistics functions during Typhoon Hagibis in the following year, 2019.
*4 An all-hazard BCP is a business continuity plan that focuses on countermeasures against the loss of management
resources, such as when employees and facilities are affected by disasters, and the suspension of head office
functions, rather than our approach to individual crisis events

Quarterly andsemiannual status report
Quarterly andsemiannual
status reportMonthly
status report

Risk Committee Secretariat*5 The risks described above include opportunities.

Committee discusses the matter, and countermeasures are promptly implemented. When we expect the
impact to be significant, we respond based on all-hazard mode*4 business continuity plans (BCPs). The

Risk Committee Secretariat

Impact measurement
The Kirin Group measures theimpact of important risks basedon their financial impact andprobability of occurrence. We
manage these risks in a unified
manner on a risk map, andthe Board monitors and takes
measures to address high-impact
risks.

Risk matrix
ImpactWe unify importantrisks for the Group on arisk map, and review
their importance andcountermeasures. The
Board of Directors also
monitors the mostimportant risks, which
are placed in quotation
marks.

Probability ofoccurrence

Holistic Analysis of Risks
and Opportunities

severe. When such climate disasters occur, the Group or the relevant company's Risk and Compliance

Reports

Risk Committee

The management of risks related to sustainability includes torrential rains, floods, droughts, and wildfires,

Monthly
status report

Reports and discussion

The Board/
Executive Committee

Management of risks related to sustainability

Monthly status report

Activityand risk management, including the aforementioned sustainability-related risks and opportunities. Kirin*1 Please see “Identification of Materiality” →P.8 for details concerning the identification of materiality for risks andopportunities related to environmental issues, including climate change.
*2 Details of our “risk management system” are disclosed below.
( https://www.kirinholdings.com/en/purpose/governance/risk_management/)*3 The Kirin Group revised the "Kirin Group Human Rights Policy" on November 8, 2023, in order to advance our humanrights initiatives toward global, high-level industry standards.
https://www.kirinholdings.com/en/impact/community/2_1/policies/

Reports

Group Risk andCompliance Committee

・ TNFD
TCFD

and gender; and the mutual relationships between such issues and regulatory responses (under our risk

risks, and opportunities related to natural capital, both directly and in the upstream and downstream

Environmental
Strategy

The Kirin Group has established the “Group Risk and Compliance Committee,” which consists of officers

Message fromTop Management

In the section on governance, we have described our measures to address significant physicalAs described, we have analyzed and assessed sustainability-related risks related to the interconnectedness

For natural capital, we have narrowed the scope of analysis by considering location, dependency, and theof climate change, natural capital, the circular economy, and social issues using scenario analysis and otherimpact on nature and our businesses. In the case of containers and packaging, we set the scope of analysis

methods. We have summarized significant risks and opportunities identified as a result in the table below.

after comprehensively taking into consideration resource recycling and related impacts on climate change

For physical risks, we have mainly analyzed risks related to major agricultural raw materials and waterand natural capital.

resources in relation to businesses ranging from food and beverages to pharmaceuticals, particularly the

In terms of business opportunities, we have analyzed areas such as health, which is a key area for value

alcoholic and non-alcoholic beverages businesses. For transitional risks, we have analyzed energy andcreation through our businesses, and an area where we think we can contribute to social issues caused byagricultural products, which account for a large share of procurement costs.

climate change.

Classification

Chronic
risksCategory

Main risk
Declining yields of agricultural
products and procurement costs
Changes in the state of nature

Containers andpackaging andnatural capital

Damage to natural capital by
improper disposal of used containers

・Negative impact on life in river basins and oceans
・Expenses associated with measures to address ocean
pollution (approximately 1.1 billion yen)●●

Climate change
and natural capital

Disruptions to operations owing
to floods

・Historical examples of actual flood damage (approximately 1.0 billion yen to 5.0 billion yen)・Exposure to 200-year disasters (total of 20 locations inJapan: approximately 1.0 billion yen)●●

Climate change
and natural capital

Impact on shipping & delivery
owing to floods

・Risk of flooding at shipping ports for raw materials●

Climate change
and natural capital

Disruptions to operations owing
to droughts

・Impact from decline in production owing to droughts(approximately 30 million yen to 600 million yen)

Climate change
and natural capital

Impact on agricultural products
owing to floods and droughts

Climate change
and natural capital

Technology●■

Countermeasures
・Utilization of brewing technology that does not depend on
barley・Utilization of mass plant propagation technology
・Support for the acquisition of certification by sustainable
farms
・Prevention of global warming by reducing GHG emissions■

・Increase in horizontal recycling of plastic
・3R and beautification awareness activities●■

・Sharing of knowledge concerning responses to flood and capital investment
・Appropriate insurance coverage

●

●

■

・Sharing of knowledge on responses to floods
・Diversification of suppliers

●

●

●

・High water stress in most production areas
・Increase in natural disasters in production areas

●

●

●

Impact of diseases and air pollution on agricultural products

・Declining quality of agricultural products due to smoke
and air pollution
・Spread of disease●●

Climate change

Carbon pricing and energy procurement costs

・Energy procurement costs (2°C scenario: approximately
9.4 billion yen in 2030, 4°C scenario: approximately 5.1
billion yen in 2030, 1.5°C scenario: approximately 10.2
billion yen in 2030.)

Climate change

Financial impact on the procurement of agricultural products
due to carbon pricing

・Procurement costs due to reduced agricultural yields (2°C scenario: approximately 0.9 billion yen to 4.4 billion
yen in 2050, 4°C scenario: approximately 2.4 billion yen
to 8.8 billion yen in 2050.)

Climate change

Impact on assets

・Difficulty in recovering investment in facilities and equipment due to legal restrictions, etc.
・Damage to facilities and equipment due to flooding, etc.

●

●

■

・Understand technological trends in facilities, equipment, etc.,
and reflect them in capital investment plans
・Understand risks related to water and reflect them in BCPs

Climate change

Cost of regulatory response

・Increase in human resources
・Increase in cost of response

●

●

■

・Development of infrastructure for the disclosure of information
・Enhancements to the sustainability of raw material productionareas・Nature Positive through businesses

Natural capital

Incompatibility with rapid agricultural policy transitions

・Chain collapse of agricultural infrastructure caused byextreme bans on agricultural chemicals and fertilizers
without preparation

●

●

●

■

・Support for training farmers in sustainable agriculture・Appropriate engagement with experts and policymakers

Climate change,
natural capital,
containers andpackaginResearch and development capabilities

・Possibility that research contributing to decarbonization
will not be put to practical use at the expected timing

●

●

●

■

・In-house packaging development technology
・Research and development on climate change and natural
capitalClimate change

Engineering capabilities

・Introduction of facilities and equipment at appropriate
times and prices

●

●

●

●

●

・Advanced technologies for water use reduction
・Sharing of knowledge concerning responses to droughts

■

■

■

●

●

■

・Responses to water stress in areas producing agricultural raw
materials
・Prevention of soil runoff at areas producing agricultural raw
materials
・Research measures from a long-term perspective■

・Profit and loss neutral reduction of GHG emissions in brewing
and manufacturing
・GHG emission reductions through logistics optimization■

・Utilization of mass plant propagation technology
・Support for the acquisition of certification by sustainable
farms

・Strengthen engineering functions
・Understand technological trends and flexibly introduce
technology, facilities, and equipment

Holistic Analysis of Risks
and Opportunities

Transitional
risks

●

Severity
S M L

Activity

PolicyImpactM L

・ TNFD
TCFD

Acute risks

S・Procurement costs due to reduced agricultural yields (2°C scenario: approximately 1.3 billion yen to 3.4 billion
yen in 2050, 4°C scenario: approximately 3.6 billion yen
to 13.7 billion yen)

Climate change
and natural capital

Physical risk

27

ImpactEnvironmental
Strategy

Risk/opportunity

Message fromTop Management

Significant Risks and Opportunities

Classification

Markets

Reputation

Systemic risk

Energysources

Resilience

Severity
S M LCountermeasures

Social resistance to fossil-derived raw materials

・Growing negative impression of PET bottles

●

●

■

・Plastic resource recycling

Climate change
and natural capital

Concerns surrounding thedestruction of forests

・Decrease in confidence in the amount of GHGs
absorbed and stored through forests, etc.

●

●

■

・Promotion of sustainable forestry and agriculture

Climate changeHigh energy prices

・Possibility that natural gas and oil prices do not fall

Climate change,
natural capital,
containers andpackaginOpportunity loss due to ethicalconsumption

・Decline in the assessment of our brand

●

●

●

■

・Appropriate communication to consumers

Climate change
and natural capital

Concerns about renewableenergy facilities

・Opposition to installation from regions where power
plants are constructed

●

●

●

■

・Introduction of renewable energy that does not have anegative impact on the environment or local communities

Climate change,
natural capital,
containers andpackagin

Loss of trust from long-term
investors

・Loss of trust due to lack of adequate disclosure・Increase in cost of capital

●

●

●

Natural capital

Responsibility for pollution of
the natural environment

・Compensation, fines, administrative dispositions, andloss of social trust

●

●

●

■

・Improvements to environmental management systems

Natural capital

Uncontrolled expansion of
conversion into crops for biofuel

・Reduction of agricultural land for food

●

●

●

■

・No use of inappropriate biofuels converted from farmland forfood

Natural capital

Ecosystem damage due to theabandonment of farmland・Decline in ecosystem services

●

●

●

■

・Engagement with agricultural production areas and provisionof training

Natural capital

Ecosystem collapse

・Loss of ecosystem resources on agricultural land due toyears of use of agricultural chemicals

●

●

●

■

・Ecosystem restoration activities focusing on hedgerow-stylecultivation

Climate change
and natural capital

Expansion of heat stroke due toglobal warming・Concerns related to increases in the number of
infections and regions affected
・ Northward movement of the habitat of the Aedes
albopictus

●

●

●

■

・Contribution in Health Science domain

Climate change

Increase in heatstroke caused by
global warming

・The National Institute for Environmental Studies expects
the number of excess deaths related to heat to increase
between 4 and 10 times under the 4℃ scenario

●

●

●

■

・Contribution with products to address heatstroke

Climate change

Products that contribute todecarbonization

・Possibility that products will be required that contributeto decarbonization or the shift to a low-carbon society

●

●

■

・Carbon-free products, etc.

Climate change

Loss of sustainability of logistics

・Decline in product supply capabilities

●

●

●

■

・Stable transport and reduction of GHG emissions throughmore efficient deliveries

Climate change

Reduction of container raw materials and stable procurement[climate change, containers andpackaging, short to long term]・Demands for the 3Rs and reduction in costs from themove to lightweight containers

●

●

●

■

・Container weight reduction and improvement of rate ofrecycled PET resin use

Climate change

Demand gap and spike in prices
of fossil fuels

・Increase in energy costs

●

●

●

Climate change

Stable procurement of renewable energy

・Increase in demand and tight supply and demand forrenewable energy

●

●

●

Climate change,
natural capital,
containers andpackagin

Strengthening the supply chain

・nsuring the stability of the procurement of agricultural
raw materials and reduction of Scope 3 GHG emissions

●

●

●

・Steady implementation of the roadmap for the “SBT 1.5°C”
target■■■・Appropriate disclosure in line with the TCFD and TNFD
frameworks

・Achievement of an optimal energy mix
・Use of renewable energy with a focus on additionality■

・Strengthen engagement with production areas and suppliers

Holistic Analysis of Risks
and Opportunities

Resource
efficiency

ImpactM L

Activity

Business
opportunity

S

Climate change,
containers andpackaginMarkets

Products
andservices

Impact・ TNFD
TCFD

28

Stabilityof foodand social
systems

Main risk

Environmental
Strategy

TransitionalrisksCategory

Message fromTop Management

Risk/opportunity

TargetProgress on medium-term GHG emissions reduction target approved by SBT（2023）（unit：tCO2e）■ Scope1+2

Total

Scope1+Scope2
Scope1

353,404

Scope2

212,148

2019
2019

Capital goods

211,7423

Fuel and energy-related emissions not included in Scopes 1 and 2

142,062

4Transportation and distribution (upstream)

415,350

5Waste generated in operations

28,8002,252,662

6

Business travel

5,684

7

Employee commuting

8,774

8

Leased assets (upstream)
Transportation and distribution (downstream)
Processing of sold products

11
Downstream 12

GHG emissions across the whole value chain
GHG emissions across the whole value chain(ktCO 2e)
8,000
(ktCO
2e)
7,431
8,000
7,431
7,000

246,338
0

7,000
6,000

Use of sold products

9,459

6,000
5,000

End-of-life treatment of sold products

55,095

5,000
4,000

Leased assets (downstream)

0

14

Franchises

015

Investments

0Reduction rate (compared to 2019 base year)

4,000
3,000
3,000
2,000
2,000
1,000

4,577
-47%
-38%
4,577 4,010-38% -46%4,010 3,942 -47%
3,942Target-46%
Target4,110
Net-Zero
4,211-43%
Net-Zero
4,211 -44%4,110
-44%
-43%

1,000
0

2019 2020 2021 2022 2023 2050 (Year)1990
01990 2019 2020 2021 2022 2023 2050 (Year)-10%(KB, KBC)

Returnable glass
bottles
(KB)

Total

Aluminum cans

22,477t

Glass bottles

696t

PET bottles

5,259tCardboard cartons for products

5,814t6-can packs

3,876t

3,000
3,000
2,000
2,000

96％

1,500
1,000

815
1,000

500
500
0

2019 2020 2021 2022 2023 2030 (Year)02019 2020 2021 2022 2023 2030 (Year)

100

-10%
-10%-30％

-30％
3,376
3,474
3,444
3,376 Target
2,633Target
3,474
3,444
3,309
2,633
3,309

Target50

2019 2020 2021 2022 2023 2030 (Year)02019 2020 2021 2022 2023 2030 (Year)

42

50

6

1,000
0

-31％

-31％
815
737 701-50％
666
737 701
566-50％
Target666
566 408 Target
408

100 （%）

5,000

3,762
4,000 3,762

Total emissions for Scope 1 and Scope 2
Total
emissions for Scope 1 and Scope 2
(ktCO
2e)

Ratio
（%） of renewable energy in plant purchased electric power

5,000(ktCO 2e)
4,000

Progress toward medium-term
towardmedium-term
GHGProgressemissions
reduction
targets
GHG emissions reduction targets

Progress toward the target for
Progress
the targetfor
increasedusetowardof renewableenergyuseof renewableenergy electric power
Ratioincreasedof renewableenergyin plant purchased

Scope 3 emissions
Scope
3 emissions
(ktCO
2e)

1,000

Collection rate

2050
2050

0

27
12
6

17
12

42

100 Target
100

27

17

2019
2040 (Year)0 2020 2021 2022 2023
2019 2020 2021 2022 2023
2040 (Year)

Holistic Analysis of Risks
and Opportunities

Reduction inresources

2030
2030

1,500
(ktCO 2e)

Impact for the Circular Economy（2023）■ Reduction in impact

2019
2019

Progress

0

13

2050
2050

Activity

9
10

2030
2030

*1 In December 2020, we upgraded our previous “SBT for 2°C” target, and received approval for our “SBT for 1.5°C” target.
*1 In December 2020, we upgraded our previous “SBT for 2°C” target, and received approval for our “SBT for 1.5°C” target.

・ TNFD
TCFD

29

Purchased goods and services

TargetNet-Zero
Net-ZeroTargetNet-Zero
Net-Zero

3,375,967
2TargetTarget

-31％

1

-30%
-30%

-50%
-50%

Total

Scope3

TargetTargetTargetTargetEnvironmental
Strategy■ Scope3

Upstream

Total emissions targets for Scope 1 and Scope 2*1
Scope 3 emissions target*1
Total emissions targets for Scope 1 and Scope 2*1
Scope 3 emissions target*1

565,552

Reduction rate (compared to 2019 base year)

Message fromTop Management

Metrics and Targets

Climate change

GHG emissions

Published under “Metrics and Targets” “Progress on medium-term GHG emissions reduction target approved by SBT” in this report

Total spatial footprint

For agricultural products subject to materiality analysis, the FAO indicates the following acreage per unit yield (ha/t/year).
●Black tea leaves: 0.177 ●Cardboard: 0.0186 ●Cartons: 0.0186 ●Palm oil: 0.0706●Coffee beans: 1.132●Soybeans: 0.3835●Barley: 0.3044●Hops: 0.6497●Wine grapes: 0.0898* The land use area for Japanese projects calculated using ESCHER in 2014 is 228,126 ha.

Scope of land use change

Rainforest: 42,592ha(Area of tea farms in Sri Lanka that have obtained Rainforest Alliance certification with the support of the Kirin
Group)
Temperate monsoon: 50ha (area of self-managed vineyards in Japan)

Land areas that have voluntarily conserved or restored ecosystems

42,592ha (Area of tea farms in Sri Lanka that have obtained Rainforest Alliance certification with the support of the Kirin Group)
Approximately 25ha (Area of micro watersheds on Sri Lanka tea farms conserved with the support of the Kirin Group. Internal size ofthe above certified farms)
Approximately 50ha (area of self-managed vineyards in Japan)

Land managed in a sustainable mannerLand managed in a sustainable manner 29ha (area of Mariko Vineyard certified as a SEPLS site)

C2.0

Total amount of pollutants released into soil by typeNo release of pollutants into soil at plants/breweries.
Vineyards for Japan Wine and Sri Lankan tea farms (suppliers) use agricultural chemicals listed on white lists within standards.

C2.1

Wastewater drainage

Published under "Water Resources," "Trend in wastewater volume by destination (entire Group)," and "Reduction of Waste andPrevention of Pollution,” "Wastewater quality (entire Group)" in the “ESG Databook.”

Waste generation and treatment

Waste: Published under "Reduction of Waste and Prevention of Pollution,” "Volume of waste generated (entire Group)" in the “ESG
Databook.”
Reduction rate of product waste loss: Published under “Food Waste Reduction and Recycling” in this report.

C2.3

Plastic pollution

5,259t (We have determined that most of our plastic usage is PET resin for bottles, and we have disclosed the amount of PET bottles
used)

C2.4

Total air pollutants other than greenhouse gases

Published under “Trend in emissions of air pollutants,” “Trends in emissions of NOx and SOx (entire Group)” and “Trends in emissionsof VOCs (Japan, Kyowa Kirin Group and Kyowa Hakko Bio Group)” in the “ESG Databook.”

Water intake and consumption from water-scarce regions

Published under "Water Resources," "Trend in water use volumes (by region)" in the “ESG Databook.”

Amount of high-risk natural primary products procured from land

Published under "Biological Resources," "Usage of palm oil in primary and secondary raw materials" in the “ESG Databook.”

Braceholder indicator (measures against invasive species)

We have not performed calculations because it is a breakholder indicator and detailed criteria are unclear

Breakholder indicator (status of the ecosystem)

We have not performed calculations because it is a breakholder indicator and detailed criteria are unclear

Breakholder indicator (species extinction risk)

We have not performed calculations because it is a breakholder indicator and detailed criteria are unclear

C7.0

Assets, liabilities, revenues, and extraordinary amounts assessed asvulnerable to nature-related transition risks●1.5℃ scenario: Approx. 10.2 billion yen (2030)●2℃ scenario: 9.4 billion yen (2030) ●4℃ scenario: 5.1 billion yen (2030)(Financial impact on agricultural products due to carbon pricing)

C7.1

Assets, liabilities, revenues, and extraordinary amounts assessed asvulnerable to nature-related physical risks●2℃ scenario: 1.3 billion yen to 3.4 billion yen (2050)●4℃ scenario: 3.6 billion yen to 13.7 billion yen (2050)(Financial impact of reduced agricultural yields due to climate change)

Fines incurred during the fiscal year due to negative impacts related tonature.Fines, details and amounts of lawsuits filed

None

C7.3

Amount of capital expenditures or investments targeting nature-related
opportunities, by type of opportunity, with reference to the green
investment taxonomies of governments or regulatory authorities, where
relevant, or third-party industry or NGO taxonomies

Approx. 150 million yen (expenditure on support for the acquisition of certification for tea farms in Sri Lanka, ecological surveys inJapan Wine vineyards, etc.)

C7.4

Growth and percentage of revenue from products and services that havea viable positive impact on nature, and explanation of those impacts

We expect that this would cover products such as Kirin Gogo-no-Kocha made with tea leaves from certified farms and Japan Winemade with grapes grown in hedgerow-style vineyards that contribute to Nature Positive, but we have not estimated the financial
impact.

C1.0

Change in land/
freshwater/ocean
use
C1.1

C2.2

30

C3.0
C3.1
C4.0
C5.0

Contamination/
decontamination

Resource use/
resource
replenishment

Status of nature

C7.2
Risk

Holistic Analysis of Risks
and Opportunities－

Activity

Details of the measurement index

・ TNFD
TCFD

Indicator

Environmental
Strategy

Key factors ofchanges in nature

Message fromTop Management

Measurement
index numberMessage fromTop Management

External Evaluation
The Kirin Group conducts transparent information disclosure to its investors and other stakeholders.
As such, we have been selected for and rated by the following global indices.

CDP “water security”
category “A-List” (eight
consecutive years)* Declined in FY2021 due to receiving the award for two
consecutive years

CDP Supplier Engagement
Rating “Leader Board“ (sixconsecutive years)
31

Development of Lightweight
PET Bottle “the 46th
Kinoshita Prize for packaging
technology”

Selected for the following indicesFuji-Sankei Group Awardin the 26th Global
Environment Awards

Kirin School Challenge won the
Encouragement Award in the
Career Education Awards

Kirin School Challenge won theJudges Committee EncourageAward at the FY2017 Corporate
Awards for Youth Experience
Activities

Judge’s Special Award in the
6th Ikimono Nigiwai Corporate
Initiatives Contest

Yokohama Plant won the Green
Cities Awards and Green Social
Contribution Award

Minister of Land, Infrastructure,
Transport and Tourism Award
under the Excellent Green
Logistics Commendation Program

Logistics Environmental Grand
Prize at the 18th Logistics
Environmental Award

Ranked No. 1 in WWF Japan’s“Ranking for Corporate Measures
Against Global Warming in the
Food Sector”

King of Beasts Award in WWF
Japan’s “Business & Diversity
Katte-ni Award”

Holistic Analysis of Risks
and Opportunities*1 The picture of the product is the one that was available at the time of the award.

The middle-sized bottle
also received WorldStar
Packaging Awards

Activity

The “Kirin Group
Environmental Report 2020”
won the “Climate Change
Reporting Grand Prize(Minister of the Environment
Award)” in the 24th
Environmental Communication
Award

Kirin Namacha Decaffeinated
Tea Drink won WorldStar
Packaging Awards

・ TNFD
TCFD“SDGs Strategy
and Economic
Value Award” atthe Fourth Nikkei
SDGs Management
Grand Prix(four consecutive
years)New Thin Film Deposition
Technology for PET bottles
WorldStar Award andKinoshita Prize

Environmental
Strategy“Gold Award” in the“Environmentally
Sustainable Company
Category” for the first two
years, and “Special Award”
the fourth year