Asahi Group Holdings Green Bond Framework
February 2023

Green Bond Framework
Table of Contents
1

About Our Company and Sustainability
1.1

Overview of Our Company

1.2

Asahi Group Philosophy

1.3

Our Approach to Sustainability
1.3.1

Positioning of Sustainability in Management

1.3.2

Sustainability Philosophy

1.3.3“Asahi Group Sustainability Principles” and ”Asahi Group
Sustainability Vision”

1.3.4

Corporate Statement “Cheer the Future” and “Sustainability
Stories”

1.4

1.3.5

Global Targets for Material Issues/Objectives/Key Initiatives

1.3.6

Sustainability GovernanceSpecific Environmental Initiatives
1.4.1

Environmental Principles and Environmental Vision

1.4.2

Respond to Climate Change: ”Asahi Carbon Zero”

1.4.3

Sustainable Packaging： Respond to the Plastic Issue“3R+Innovation”

2

Green Bond Framework
2.1

Use of Proceeds
2.1.1

Construction of Tosu Brewery

2.1.2

Procurement of Recycled PET, Procurement of Biomass Plastics

2.1.3

Purchase of Renewable Energy

2.2

Process for Project Evaluation and Selection

2.3

Management of Proceeds

2.4Reporting
2.4.1

Allocation Reporting

2.4.2

Impact Reporting1

1

About Our Company and Sustainability
1.1

Overview of Our Company
Major businesses of Asahi Group Holdings, Ltd. (hereinafter also referred to as“ “we”) are as follows.
1.1.1

Japan Business

Manufacture and sales of alcohol beverages, soft drinks, food, andpharmaceuticals
1.1.2

EuropeBusiness

Manufacture and sales of alcohol beverages
1.1.3

Oceania Business

Manufacture and sales of alcohol beverages and soft drinks
1.1.4

South East Asia Business

Manufacture and sales of soft drinks
1.1.5

OthersAnimal feed business and others
1.2

Asahi Group Philosophy
In 2019, we reestablished our corporate philosophy to “Asahi Group Philosophy”(AGP). In the AGP, we embrace the principle of “building value together with all our
stakeholders” in keeping with our mission to “deliver on our great taste promise andbring more fun to life,” and promise to deal in good faith with our stakeholders,
including customers, employees, members of society, business partners, andshareholders.

2

1.3

Our Approach to Sustainability
1.3.1

Positioning of Sustainability in Management
In order to put the Asahi Group Philosophy into practice, the Asahi Group has

formulated a Medium- to Long-Term Management Policy in 2022, based on
backcasting from megatrends. In the Medium- to Long-Term Management Policy,
the concept of our Long-Term Strategy is to “contribute to a sustainable society
and respond to changing conceptions of wellbeing through delivering great taste
and fun.” One of our core strategies is to integrate sustainability into
management, aiming to achieve sustainable growth and build value together
with our stakeholders.
1.3.2

Sustainability Philosophy
In regard to our sustainability philosophy, we have clearly defined thesignificance of working on sustainability in “Asahi Group Sustainability Principles”
and the vision for the Group to aim towards the promotion of sustainability in“Asahi Group Sustainability Vision.” In addition, our “Sustainability Stories,”
which we formulated for the purpose of achieving the integration ofsustainability into management, show why, how, and what we are doing toaddress sustainability.
1.3.3“AsahiGroup

Sustainability

Principles”

and”AsahiGroup

Sustainability Vision”
In April 2020, we established “Asahi Group Sustainability Principles” and ”Asahi
Group Sustainability Vision” and revamped our material issues.
■ Asahi Group Sustainability Principles
1. The Asahi Group is striving to realize the tastiness of products andservices that exceed consumer expectations, using the blessings of nature.
We preserve finite nature to hand down the important blessings of nature
to future generations.
2. The Asahi Group is striving to bring more fun to life through its products
and services. We build a sustainable society to allow a better life to be
inherited.
■ Asahi Group Sustainability Vision
Based on the Sustainability Principles, we will strive to create values toward
a better future in all regions where we operate by incorporating“Environment,” “People,” “Communities,” “Health,” and “Responsible
drinking” into our corporate strategy.
Through these initiatives, we will continue to take on challenges andinnovation to contribute to achieving the United Nations Sustainable
Development Goals (SDGs).

3

1.3.4

Corporate Statement “Cheer the Future” and “Sustainability Stories”
In January 2023, we redefined “Cheer the Future,” which we had formulated torealize the integration of sustainability into management, as our corporate
statement.

We

will

push

forwardspecific

initiatives

along

with

our

“Sustainability Stories” that show why, how, and what we are doing to address
sustainability.

1.3.5

Global Targets for Material Issues/Objectives/Key Initiatives
In association with the establishment of our corporate statement “Cheer the

Future” and “Sustainability Stories,” we have reviewed our materiality issues.
Specifically, in 2022, we established objectives to accelerate the integration ofsustainability into management and designated key initiatives on which to focus
our management resources. We have established global targets for key
initiatives and incorporated them into Regional Headquarters’ targets and plans.
The progress of these targets and plans is managed under the Asahi Group’s
sustainability governance system.
◆ Material Issues/Objectives/Key Initiatives
Material

Objectives

Initiatives (highlighted in red：Key Initiatives)

Realizing sustainability

Respond to Climate Change

across the value chain

Sustainable Packaging

IssuesEnvironment

Sustainable Agricultural Raw Materials
As a group, we aim to

Sustainable Water Resources

Human Rights

manage risk and create

Respect for Human Rights

Communities

opportunities while aspiring

Realize Sustainable Communities through theto make a positive impact for

Creation of People-to-People Connections

Healthbusiness and society with ourCreate Value of HealthResponsible

products and services.

Reduction in Inappropriate Drinking

4DrinkingSolutionof

Alcohol-related

Issuesthrough

Creation of New Drinking Opportunities◆ Global Targets in Key Initiatives
Material

Key Initiatives

Global Targets

Respond to Climate

IssuesEnvironment

ChangeReduce our CO2 emissions in Scope 1, 2, and 3 tozero there by becoming carbon neutral by 2050
(compared with 2019)Reduce CO2 emissions by 70% in Scope 1 and 2
and by 30% in Scope 3 by 2030 (compared with2019)

SustainablePackaging

Realize 100% utilization of materials for plastic
containers that can be used effectively*1 by 2025



Achieve a 100% conversion to eco-friendly
materials*2 for PET bottles by 2030



Examine the development of eco-friendly
materials and sales methods that do not makeuse of plastic containers*1 Reusable, recyclable, compostable, thermal recyclable, etc.
*2 Recycled materials, biomass materials, etc.

Communities

Realize SustainableWork to resolve social issues in the key areas ofCommunities

food, regional environment, and disaster relief

through thethrough our business

Creation of People-



to-People

Create opportunities for employees to participate
in community support activities

Connections
Responsible

Reduction in

Drinking

Inappropriate

alcohol and low-alcohol beverages of main

Drinking

alcohol beverage products by 2025*

Solution of Alcohol-Achieve a 15% sales composition ratio of non-

* Beer-type beverages, RTD, non-alcohol beverages

related Issues
through Creation of
New Drinking
Opportunities51.3.6

Sustainability Governance
The Asahi Group’s sustainability governance system centers around the Global

Sustainability Committee chaired by Group CEO for effective functioning.
The group is united in working to achieve sustainability through a structural
framework, with details determined by the Global Sustainability Committee
being incorporated into strategies for the Group as a whole via the Sustainability
Execution Conference and the Sustainability Task Force.

6

1.4

Specific Environmental Initiatives
1.4.1

Environmental Principles and Environmental Vision
We recognize that water, agricultural products and other “gifts of nature” areessential for us to carry out our business activities. We have established “Asahi
Group Environmental Principles” for all employees of the Asahi Group to follow
in addressing environmental issues proactively so that we can hand down the
precious gifts of nature to future generations.
■ Asahi Group Environmental Principles
The Asahi Group will comply with these principles as a guideline for all of the employees toproactively address environmental issues, and strive to realize, together with our stakeholders,Planet Positive set forth in our Environmental Vision 2050.
1.

Create Environmental Management System
We will create a management system for regularly monitoring environmental activities, andtake actions toward continuous improvements.

2.

Proactively Promote Environmental Activities by Employees
We will develop human resources that are able to proactively promote environmental
activities on their own, and engage in efforts to foster the corporate culture and raise theenvironmental awareness of society as a whole.

3.

Strengthen Efforts for the Global Environment
We will endeavor to preserve the global environment through such efforts as the preventionof pollution, sustainable use of resources, mitigation of and adaptation to climate change,and protection of biodiversity.

4.

Collaboration with Stakeholders
We will collaborate with stakeholders from diverse backgrounds, including local communities,
and endeavor to create environmental value based on innovation and generate synergy.

5.

Promote Engagement
We will disclose information in a way that is transparent and reliable, and proactively engage
in communication with stakeholders.

6.

Compliance
We will comply with environmental laws and regulations of each country/region, internationalrules, and the standards of the industry and our own Company.

In February 2023, we revised “Asahi Group Environmental Vision 2050”
formulated in 2019. Environmental developments are accelerating globally, withgovernments across the world strengthening their strategies toward achievingcarbon neutrality. With awareness of society’s heightening expectations andrequests for companies, we considered it necessary to update our vision to be
more ambitious in terms of having positive impacts on the global environment.
The new “Asahi Group Environmental Vision 2050” defines the ideal state of theworld as “Planet Positive” and aims to have more positive impacts on the plant,
compared to the “Neutral and Plus” concept targeted in the previous version.

7

Moreover, the new vision sets four pillars of environmental initiatives—1. climatechange, 2. packaging, 3. agricultural raw materials, and 4. water resources—and defines initiatives as to how the Asahi Group is going to achieve the ideal
state.
Under the new “Asahi Group Environmental Vision 2050,” we will take on thechallenge of realizing a sustainable society while growing our business.

8

1.4.2

Respond to Climate Change: ”Asahi Carbon Zero”
We aim to achieve zero emissions of carbon dioxide, or carbon neutrality, by

2050, by setting medium-to long-term targets on climate change and pushing
forward initiatives across our value chain, such as proactively using electricity
generated from renewable energy sources and saving more energy. Asahi
Carbon Zero, our medium- to long-term targets for reducing CO2 emissions, has
obtained certification from the Science Based Targets (SBT) initiative for the
1.5°C target for the Scope 1 and 2 target by 2030. Initial targets set at the timeof formulation in 2018 were aimed at achieving zero CO2 emissions by 2050,
and reducing Scope 1, 2, and 3 CO2 emissions by 30% (versus 2015 levels) by

2030. With details of the plan fleshed out, we have revised the target values
upward. We now target 70% reductions in Scope 1 and 2 CO2 emissions, and a
30% reduction in Scope 3, versus 2019 levels by 2030. In addition, we started
our discussions on contributing to reductions in carbon emissions of the entire
society beyond the boundaries of businesses toward “Beyond Carbon Neutral”
set in the new “Asahi Group Environmental Vision 2050.”“Asahi Carbon Zero” Targets

9Overview of Initiatives Aimed at Achieving ”Asahi Carbon Zero”
To achieve the targets, we will implement a variety of measures for savingenergy and preserving the environment, including the introduction of renewableenergies, recovery and use of waste heat such as steam from the manufacturing
process, application of cold energy including energy gained through the normaltemperature replenishment of rows of cans, introduction of cogeneration
facilities, fuel conversion, and activities that practically apply the ISO 14001
standard in all of its business establishments.

Endorsement of the TCFD Recommendations
The Asahi Group understands that evaluating the impact of climate changerelated risks and opportunities on its businesses and drafting appropriate
response measures are important matters in terms of realizing a sustainable
society and ensuring business continuity. To that end, the Group endorses therecommendations of the Task Force on Climate-related Financial Disclosures(TCFD). We conducted a scenario analysis in the Beer Category in 2019 andexpanded the scope of this analysis to the Non-Alcohol Beverages and all Alcohol
Beverages categories, including the Beer Category, in 2020. In 2021, we
conducted a scenario analysis for the third year in a row, this time covering all
major categories, including the Food Category. By clarifying the impact ofclimate-related risks and opportunities on our business operations and taking
measures to resolve those issues, we will make our business operations more10

sustainable and promote dialogue with investors to enhance social sustainability
and our corporate value.
Initiatives in Japan
The Asahi Group’s businesses in Japan promote the use of renewable energy.
In Japan’s Tohoku, Kanto, and Kansai regions, 21 of our plants had switched torenewable energy for electricity purchased by December 2021. Also, eight plants
in Hokkaido, Hokuriku, Chubu, and Chugoku regions made the switch in April
2022. Accordingly, we have completed the transition to renewable energy for 29
out of total 33 plants in Japan. Of the total electricity purchased by all Asahi
Group sites in Japan, approximately 79% (251GWh) now comes from renewableenergy sources, which translates to an annual reduction in CO 2 emissions of
114,000 tons. Asahi Breweries, Ltd. uses green power, which is energy
generated from environmentally-friendly energy sources, across all of its
breweries for the production of Asahi Super Dry beer 350ml and 500ml cans,non-alcohol, beer-tasting Asahi Dry Zero 350ml cans, and all gift sets of beers.
Asahi Quality and Innovations, Ltd. (AQI), a research and development arm of
the Asahi Group, is conducting a demonstration test to produce 200 kW-classpower from fuel cells utilizing biomethane gas generated in the wastewater
treatment processes at the Ibaraki Brewery of Asahi Breweries, Ltd. The fuelcells used here are called solid oxide fuel cells (SOFCs), which generate
electricity by directly breaking down methane gas, and are known as anextremely efficient method of generating electricity. However, fossil fuels areusually used as fuel and the CO2 emitted during power generation is an issue.
Regarding this issue, AQI has developed a new fuel cell system that focuses on
biomethane gas generated during the wastewater treatment process at
breweries.
Initiatives in Europe
Asahi Europe & International, Ltd. sets the goal of achieving carbon neutrality
at all of its plants by 2030 and is in the process of switching to electricity
generated from renewable energy sources. Lech, Poland’s major premium brandbeer, states in its package that only electricity generated from wind power isused for its production. We are also undertaking efforts toward heat in order tofurther accelerate our initiatives for achieving carbon neutrality. To that end, we
have commenced the use of “green heat,” which is generated from therenewable energy used during the production process. In 2021, Grolsch Brewery
in the Netherlands concluded a heat supply contract with the energy supplier
Twence, and subsequently commenced the use of green heat in 2022. Twence

11

supplies green heat to Grolsch via an underground pipeline, and this heat isused to heat pasteurizers and rinsing machines as well as building interiors.
Transitioning to green heat will help Grolsch reduce its CO 2 emissions fromnatural gas usage by approximately 5,500 tons a year. The green heat procured
from Twence utilizes non-reusable waste wood released during construction
work and other activities, which gives consideration to the effective use ofresources as well. In the Czech Republic, Plzeňský Prazdroj entered into a longterm contract with the energy company Plzeňská teplárenská for the supply ofgreen heat, running up to 2028. Based on this contract, Plzeňský Prazdroj
commenced the use of green heat utilizing wood chips as a raw material in 2021.
Initiatives in Oceania
Asahi Holdings (Australia)Pty Ltd. aims to switch all electricity use to renewableenergy by 2025 and has signed a power purchase agreement (PPA) to purchaserenewable electricity and Victoria Bitter, the company’s mainstay brand of beer,is 100% brewed with the use of solar electricity. Moreover, in July 2021,
deliveries of major Asahi Beverages beer Victoria Bitter commenced via electrictruck. The truck is powered entirely by 100% renewable energy drawn from amajor solar farm in Victoria, Australia in which Asahi Beverages has a long-term
purchase arrangement. With the ability to run up to 250 km on a single charge,
the electric truck delivers over 100,000 cans and bottles of Victoria Bitter andother Asahi Beverages beers each week from a distribution center in Melbourne’s
West to stores across the city. The introduction of the electric truck was madepossible through the cooperation of major logistics company Linfox Pty Ltd.,
which delivers hundreds of millions of liters of beer annually for Asahi Beverages,
and Volvo Group Australia, which provides vehicles to Linfox.
Initiatives in Southeast Asia
Asahi Holdings Southeast Asia Sdn. Bhd.’s Malaysia-based subsidiary Etika
Beverages Sdn. Bhd. (Etika Beverages) concluded an on-site power purchasing
agreement (PPA) for the purchase of privately generated electricity in 2020. In
March 2022, Etika Beverages completed the installation of a solar power
generation system on the roof of one of its plants. The system is expected toreduce CO2 emissions by roughly 1,700 tons. Examinations for the utilization ofsimilar PPAs are underway at Etika Dairies Sdn. Bhd. in Malaysia as well as at
PT. Etika Dairies Indonesia and PT. Etika Manufacturing Indonesia in Indonesia.
Going forward, the Asahi Group plans to further expand the introduction ofrenewable energy in Southeast Asia.

121.4.3

Sustainable Packaging： Respond to the plastic issue“3R+Innovation”
Containers and packaging play an important role in the provision of products.
In addition to maintaining quality, ensuring strength for transportation, otherfunctional purposes such as design and as a means of communication for
displaying information, containers and packaging are also expected to beeasily usable at the time of use, and utilize sustainable raw materials andresources. To date, in order to promote the 3Rs (Reduce, Reuse, Recycle) withregard to containers and packaging, the Asahi Group has collaborated withindustry bodies for each container and packaging material and participated in
activities aimed at resolving social issues. In addition, it has driven initiatives
to reduce environmental impact by developing lighter and more recyclable
containers and packaging through joint technology development with
suppliers, as well as by adopting recycled and biomass materials andotherwise utilizing environment-friendly materials. However, we are currently
facing diverse problems that have an impact on the environment and society,including ocean plastic pollution and microplastics. Although plastic is used fora diverse range of container and packaging types and applications due to its
convenience, it also has an impact on ecosystems and marine pollution due toits outflow into the natural world as a result of inappropriate waste processing
and disposal of used plastic container and packaging waste. The Asahi Grouphas established a strategic direction for tackling social issues with a view to2030 in the form of the “3Rs + Innovation,” and is working to solve theseissues.
Group-wide Targets

Initiatives in Japan13

Asahi Soft Drinks Co., Ltd. has been working on the promotion ofenvironmentally-friendly products as a priority environmental issue. In 2008,
the company adopted, for the first time in the industry, a plant-derived
product label that was 50% made from a corn-based raw material, with a viewto ensure: 1) effective use of resources; 2) a shift away from exhaustible
petroleum resources; and 3) a reduction in CO2 emissions. Further, in the aimof saving resources and enhancing convenience, the company has been
engaged in efforts to develop and adopt environmentally-conscious containers
and packages, including the Raku-eco (easy-to-handle and ecological) PET
bottles and the Eco-style caps, one of the industry's lightest-weight PET bottle
caps. The company’s most recent activities include the adoption of the nation’slightest PET bottle caps for carbonated drinks and the reduction of the use ofroll labels to be attached to PET bottles. In regard to reducing labels put on
products, the company launched some unlabeled products for sale-by-caseonly, under the Asahi Oishii Mizu brand in 2018, and it expanded the use of
unlabeled bottles to the Juroku-cha and the Mamoru Hataraku Nyusankinbrands in 2019. In April 2021, 585ml PET bottles of Asahi OISHII MIZU naturalmineral water with a simple eco-label went on sale on a trial basis, available atstores and some vending machines in limited areas of East Japan. A small tacksticker (simple eco-label) indicating the necessary information is affixed to one
side of a bottle, instead of a roll label which was conventionally used for Asahi
OISHII MIZU. This makes it possible to reduce the CO2 emissions from labels
by nearly 58% and to sell the bottled products individually. In November 2021,
we launched completely unlabeled “Asahi Jurokucha” in limited quantities,
utilizing “laser marking technology” that employs a laser to create minute dot
patterns on the surface of PET bottles. This technology eliminates the need forsmall tack stickers and neck ringers to indicate the required information. In
addition, to introduce recycled PET bottles, the company adopted used andrecycled PET bottles for some dairy drinks such as Calpis Water in July 2019.
Later, the use of recycled bottles was expanded to some carbonated drinksthat require bottle pressure resistance, such as the Mitsuya brand products
and the Wilkinson Tansan carbonated water. In 2021, some Asahi Jurokuchabottles were redesigned to be recycled PET bottles. In addition, 100% recycled
PET resin from mechanical recycling has been used for some “Wilkinson
Tansan” 500ml PET products, and a limited-quantity rollout began in February
2022. In April 2022, we started producing large sized PET bottles 100% madefrom chemically recycled resin for some products (“Mitsuya,” “Calpis,” “Asahi
Jurokucha,” “Asahi Oishii Mizu,” and “Bireley's” ). With this, those made fromrecycled PET resin will account for some 40% of large sized PET bottles

14

produced annually by the company, reducing CO2 emissions from bottle
production approximately by 47% or 18,400 tons per year compared with thecurrent level.
Initiatives in Oceania
Asahi Holdings (Australia) Pty Ltd., an Asahi Group member company incharge of the Australian business, promoted the reduction of PET bottle weight
and the introduction of recycled bottles by investing in the blow-fill technology,
which is designed to manufacture PET bottles in-house. It also succeeded inachieving the goal of using 100% recycled PET bottles for non-sparkling
products in the Cool Ridge mineral water brand, and 50% recycled PET bottles
for Cool Ridge Sparkling Water. Also, Asahi Beverages Pty Ltd. operates a joint
venture with Pact Group, a wrap and packaging manufacturer; Cleanaway, awaste management company; and Coca-Cola Europacific Partners (CCEP), a
competitor company, which constructed and now operates Australia’s largest
PET bottle recycling facility in New South Wales, Australia. In March 2022, thisrecycling facility officially commenced operations and will process up to 28,000
tons of used PET bottles each year. Additionally, the joint venture is building a
new facility in Victoria, Australia. Like the New South Wales plant, it will use
cutting-edge sorting, cleaning, and decontamination technologies. Each facility
will process the equivalent of one billion PET plastic bottles annually and willproduce over 20,000 tons of PET.

15

2

Green Bond Framework
We, the Asahi Group, are engaged in business activities that benefit from “gifts ofnature,” and are continually in pursuit of products that can deliver the highest quality
and excellent taste that exceeds our customers’ expectations. Considering this, it isvital for us to take on the challenges of not only reducing environmental burdens but
creating positive environmental values and thereby achieving both a sustainable
society and a business growth. The Asahi Group Green Bond Framework was
established to finance the projects designed to address these challenges with thegreen bond proceeds.
The Framework conforms to the Green Bond Principles (GBP) 2021 published by theInternational Capital Market Association (ICMA), as well as the Ministry of theEnvironment's Green Bond Guidelines (2020 version). The following shows the four
key areas defined in the Framework:
2.1 Use of proceeds
2.2 Process for project evaluation and selection
2.3 Management of proceeds
2.4 Reporting
2.1

Use of proceeds
The proceeds of the green bond will be allocated towards financing new or existing
projects that meet the eligibility criteria described below. If the proceeds areallocated to the refinancing of existing projects, such projects should be limited tothose that have been launched or started operation within 24 months prior to thedate of the green bond issuance.
2.1.1 Construction of Tosu Brewery
GBP Category

Green buildings, renewable energy, energy efficiency, andenvironmentally-friendly

production

technologies

andprocesses
Corresponding

1.4.2 Respond to Climate Change: ”Asahi Carbon Zero”

initiative
Details of the use<Project Overview>of funds

Asahi Breweries, Ltd. has named the new plant scheduled
to start operations in 2026 “Tosu Brewery,” and concluded
a memorandum of understanding on Asahi Breweries’

16business expansion into Tosu City, with Saga Prefecture
and Tosu City on October 14, 2022. As a model facility for
Asahi Group’s next-generation production system, theTosu Brewery will, by renovating the manufacturingmethod and other initiatives, achieve a 50% reduction ofenergy consumption compared with current levels andpromote renewable energy for the energy to be used.
Furthermore, under Asahi Carbon Zero, a medium- tolong-term target of Asahi Group aimed at achieving zeroCO2 emissions across the whole supply chain by 2050, CO 2
capturetechnologies

and

other

initiatives

will

be

introduced with the goal of achieving carbon negative,
where the CO2 absorption volumes exceed CO2 emissions,sometime in 2026. Moreover, a diverse range of the Group
companies’ products, such as beers, non-alcohol beertaste beverages, and ready-to-drink beverages, andcontainers will be manufactured, in addition to soft drinks
products, with the aim of streamlining distribution andincreasing brewery capacity utilization. With the relocationof the factory, it will be possible for the Tosu Brewery to
manufacture and ship the majority of the products that aredelivered throughout the Kyushu region. It is expectedthat improving the demand-to-supply ratio and shortening
the distance traveled for delivery within the Kyushu region
will achieve a reduction of 30% compared with current
levels in CO2 emissions in logistics operations.
<Projects Funded by the Proceeds>Environmentally-friendly

buildings:

Acquisitionof“four stars” in the Building-Housing Energy-efficiency
Labeling System (BELS)


Adoption of facilities that hep revamp production
methods to reduce energy usage: Achieving a 50%
reduction compared to the usage before the adoption



Driving the use of renewable energy at plants:
Adopting solar power generation facilities, using
biomass energy, purchasing electricity generated fromrenewable energy sources, using ammonia-fired gas

17turbines, and purchasing carbon offsets

Efforts to capture CO2: Adopting carbon capture andmethanation technologies

2.1.2 Procurement of recycled PET, Procurement of biomass plastics
GBP Category

Eco-efficient and/or circular economy adapted products,
production technologies and processes

Corresponding

1.4.3 Sustainable Packaging： Respond to the Plastic Issue

initiative“3R+Innovation”

Details of the use< Project Overview＞

of funds

In response to the issue of plastics used in our products,
which requires an urgent solution, the Asahi Group has set
a goal of achieving a 100% conversion to eco-friendly
materials* for PET bottles by 2030.
* Recycled materials, biomass materials, etc.
Our latest concrete efforts are described below.
Asahi Soft Drinks Co., Ltd started using recycled PET
bottles for some of its products in July 2019 and isgradually expanding the use. We started using PET bottles
100% made from mechanically recycled resin for some“Wilkinson Tansan” 500ml PET products in February 2022,
and PET bottles 100% made from chemically recycled resin
for some large sized PET bottles in April 2022. In Australia,
Asahi Beverages Pty Ltd. runs New South Wales-baseAustralia’s largest joint venture for construction andoperation of PET bottle recycling plants. Its new recycling
plant with the capacity of processing up to 28,000 tons ofused PET bottles annually started operations in March
2022.
<Projects Funded by the Proceeds>


Procurement of recycled PET: Raw materials thatcomply with the “Guidance on the Use of Recycled
Plastic

Materials

in

Recycled

PET

Resin’s

Food

Equipment, Containers, and Packaging” (Ministry of
Health, Labor and Welfare, April 27, 2012)18

Procurement of biomass plastics: Raw materials thatobtained certifications such as the Biomass Plastic
Mark (Japan BioPlastics Association), Biomass Mark
(Japan Organic Recycling Association), and Rice Ink
Mark (Rice Ink Consortium), etc.

2.1.3 Purchase of Renewable Energy
GBP Category

Renewable energy

Corresponding

1.4.2 Respond to Climate Change: ”Asahi Carbon Zero”

initiative
Details of the use＜Project Overview>of funds

In accordance with the Asahi Group Environmental Vision
2050, we implemented the Asahi Carbon Zero initiative tocope with the climate change. With Asahi Carbon Zero, theAsahi Group aims to reduce CO2 emissions by 70% in
Scope 1 and 2 and by 30% in Scope 3 by 2030 (comparedwith 2019).
Of total 33 plants of the Asahi Group in Japan, 29 plants
had switched to renewable energy sources for powerpurchased as of April 2022. With this change, we haveraised the ratio of renewable energy to the total electricity
that

all

Asahi

Group

sites

in

Japan

purchasetoapproximately 79% (251GWh), reducing annual CO2
emissions by 114,000 tons. We aim to make the switch for
all of our sites in Japan by 2025 to purchase power
generated from renewable energy sources, by driving ourefforts to achieve “RE100” and “Asahi Carbon Zero.”
Including plants outside Japan, we expect to make theswitch to renewables at 60 of total 66 plants worldwide (asof February 2023), or approximately 90% of the total by2025.
<Projects Funded by the Proceeds>

Purchase of renewable electricity by domestic andoverseas operating companies

19

2.2

Process for Project Evaluation and Selection
Eligible projects will be evaluated and selected by Asahi Group Holdings’
Management Strategy Committee or at each Group company’s management
meetings, based on the Group's Sustainability Strategy determined by the Global
Sustainability Committee. When selecting a project, we will check the consistency
with our Sustainability Strategy and confirm that the following measures havebeen taken to deal with environmental and social risks:・Compliance with environmental laws and regulations required by the nationalor local government where the project is located; implementation of surveys toidentify environmental impact as necessary

・Provision of sufficient explanations to local residents before implementing a
project
In addition, we will confirm the compliance with the Group’s Code of Conduct,

policies, and guidelines listed below:Asahi Group Code of Conduct and Group Policies



Procurement policies and guidelines: Asahi Group Sustainable Procurement
Principles

2.3

Asahi Group Supplier Code of ConductEnvironmental policies and guidelines: Environmental Principles

Green Purchasing Guidelines

Management of Proceeds
Finance of Asahi Group Holdings, Ltd. manages proceeds from green bonds
issued under the Green Bond Framework. Finance tracks and manages theproceeds on a quarterly basis using an internal management system as long as thegreen bonds are outstanding. The proceeds are to be allocated within 24 months
from the issuance of the green bonds. Until the proceeds are fully allocated, theamount equal to that of green bond proceeds will be held in cash or cash
equivalents.

2.4

ReportingAsahi Group Holdings intends to report on the allocation of proceeds to eligible
projects and environmental impacts on an annual basis, on its corporate website
and elsewhere.
2.4.1 Allocation Reporting
Asahi Group Holdings intends to report on the allocation of proceeds to eligible
projects and environmental impacts on an annual basis, on its corporate website

20

or in the Integrated Report. The initial report will be published within one year
after the issuance of the green bond to the extent disclosable.
- Overview of eligible projects funded by the proceeds- Amounts of proceeds allocated and unallocated to each eligible project
category- Share of financing and refinancing- The expected allocation timing for any unallocated proceeds, and how tomanage those proceeds during the period in which they remain unallocated- CFO's statement about the confirmation of the allocation of green bondproceeds to eligible projects
If any significant changes occur to the proceeds after the full allocation, we
will disclose the information on a timely basis.
2.4.2 Impact Reporting
As long as the green bonds are outstanding, we will disclose positiveenvironmental impacts of eligible projects to the extent practicable.
Eligible Projects

GBP Category

Reporting Items

Construction of theGreen buildings,- Progress in the Asahi Carbon Zero

Tosu Brewery

renewable

Initiative

energy, energy- The overview, and certification

efficiency,

type/rank obtained, of buildings

environmentally-certified as green buildings

friendly- Actual values of the Tosu Brewery

productionastechnologies andamounts:

processes

a

whole

for

the

following✓ Electric energy generated bytype of power generation✓ Renewable energy (electricity)purchased✓ Reduction in CO2 emissions✓ Rate of change in energy usageafterchanges

inproduction

methods/facilities
Procurement of

Eco-efficient- Progress in initiatives towards

Recycled PET,

and/or circularsustainable containers/packaging

Procurement of

economy- The volume of eco-friendly

21

Biomass Plastics

adaptedmaterials such as recycled PET andproducts,biomass plastic

production
technologies andprocesses
PurchaseofRenewable Energy

Renewable- The amount of renewable energy

energy(electricity) purchased22