Biological Resources

Developed the Kirin Group Declaration of Support for Biodiversity Conservation

����Conducted materiality analysis of biological resources����

Background
Based on our understanding of the characteristics of natural capital, we haveanalyzed and evaluated risks and opportunities by using scientiﬁc tools to advancesolutions to biological resource challenges. Agricultural raw materials often bringunique characteristics of the areas that produce them to be reﬂected in products.
Therefore, we need both a local perspective of "dependence" on the crops
produced by a particular "place" and a global perspective that climate change hasa signiﬁcant impact on the yield and quality of agricultural commodities.
In addition to scenario analysis based on the TCFD recommendations, we use theprocesses advocated by TNFD Framework. We will also develop a holistic
approach to solving issues that takes trade-oﬀs between climate change andnatural capital into account.
33

����

We will create together

A society that values sustainable biological resources
Cultivate, expand, and procuresustainable agricultural raw materials

Work closely with farms to makeraw material production
areas sustainable

Production
regions

P.35
P.37
P.39
P.39
P.39
P.41

Tea farms
Vineyard
Coﬀee farms
Hop ﬁelds
Mass plant propagation technology
Support for the restoration of nature（Educational program for wildlife conservation in Sri Lanka）

Manu
facturing

P.39
P.40
P.41

Palm oil
Paper and Printed Materials
Support for the restoration of nature（Biotopes at manufacturing plants）

Products

P.40

Food Waste Reduction and Recycling

����
����
����
����
����
����

����

Developed the Kirin Group Guidelines for the Use of Sustainable Biological Resources and the Kirin Group
Guidelines for the Procurement of Sustainable Biological Resources, and selected “tea leaves,” “paper andprinted materials,” and “palm oil” as themes
Started supporting Sri Lankan tea plantations (large farms) to obtain Rainforest Alliance certiﬁcation
Began an ecological survey at Tono hop ﬁelds and Mariko Vineyard

Revised the Kirin Group Guidelines for the Procurement of Sustainable Biological Resources and declared
100% usage of FSC-certiﬁed paper or recycled paper in Japanese alcohol and non-alcoholic beverages
businesses by the end of 2020.
Started supporting Sri Lankan small tea farms to acquire Rainforest Alliance certiﬁcation

Expanded support for coﬀee farms in Vietnam to acquire Rainforest Alliance Certiﬁcation.
Achieved 100% use of FSC-certiﬁed or recycled paper for paper and printed materials
in the non-alcoholic beverages business in Japan.
Participated in the Corporate Engagement Program of the Science Based Targets Network.
Revised the Kirin Group Action Plan for the Sustainable Use of Biological Resources to add coﬀee beans
and soybeans as themes.
Participated in the TNFD Forum.
Trial disclosure based on the LEAP approach proposed in the TNFD Framework Beta v0.1
Participated in a demonstration program aimed at the registration of OECMs under the 30by30
international target

Developed the “Regenerative Tea Scorecard” together with the Rainforest
Alliance as a tool to promote regenerative agriculture at tea farms in Sri Lanka

Main Activities
TargetTargets related to support for the acquisition ofcertiﬁcation by tea farms in Sri Lanka(CSV commitment: 2022 to 2024, cumulative)● Provided training to support acquisition of Rainforest Alliance certiﬁcation for large farms
in Sri Lanka (4 farms: cumulative total from 2022 to 2024).

Actual results

Actual results

4 farms
27%

Actual results

629 farms
12%

34

Sustainable raw material ratio

KBC

約100%
100%

Primary raw materials(excluding palm kernel oil)

ME

-90%

Oﬃce paper
FSC-certiﬁed paperor recycled paper

Palm oilSoybeans

Other fruit juices

Black tea leaves

Hops

2022 (compared with 2015)
Reduction target : -75%
(by 2025, compared with 2015)

ActionPlan

Coffee beans

BarleyGrapesRisk Incidence Rate
Prepared in 2012 and scheduled for revision in 2021
FSC®C137754

Holistic Analysis of Risks
and Opportunities

Rate of reduction●Trial disclosure based on the LEAP approach proposed in the TNFD Framework Beta v0.1
(2022), and conducted scenario analysis together with the TNFD (2023).

Paper

KBC

● Château Mercian Mariko Vineyard has been selected as an approved Nationally Certiﬁed
Sustainably Managed Natural Sites contributing to the 30by30 target by the Ministry of
the Environment (2023).

Magnitude of Risk

KB

約100%
100%

● Maintained the use of FSC-certiﬁed paper or recycled paper for 100% of oﬃce paper
used in Japanese Alcohol and Non-alcoholic Beverages Businesses (since 2020).

Materiality Analysis of Biological Resources

ME

Approx.

● Expanded our support for the acquisition of Rainforest Alliance certiﬁcation to coﬀee
farms in Vietnam. 350 farms completed the transition to new certiﬁcation standards and309 farms had newly acquired certiﬁcation as of the end of 2022.

Biological
Resources

Ratio of Book & ClaimRSPO certiﬁcation

Approx.

Food waste

KB

Target：5,350 farmers
Actual results：629 farms(cumulative total from2022 to 2024)● Over 200 youth have participated in educational programs for wildlife conservation in Sri
Lanka (2021).

Activity

Target：15 farms
Actual results：4 farms(cumulative total from2022 to 2024)

Number of small farms
assisted to obtaincertiﬁcation(Number of farms thatreceived training)● Developed the Regenerative Tea Scorecard as a tool to promote environmentally
regenerative agriculture in Sri Lankan tea farms with the Rainforest Alliance (from 2023).

・ TNFD
TCFD

Number of large farms
assisted to obtaincertiﬁcation(Number of farms thatreceived training)

KBC●Started sales of year-round products that use tea leaves from certiﬁed farms (since 2021).

Environmental
Strategy

Number of large farms assisted to obtain certiﬁcation: 15
Number of small farmers assisted to obtain certiﬁcation: 5,350

Support for obtaining certiﬁcation by tea farms in Sri Lanka●Revised the Kirin Group Action Plan for the Sustainable Use of Biological Resources to add
coﬀee and soybeans to the existing black tea, paper, and palm oil in September 2021.

Message fromTop Management

Targets and ProgressSince 2013, The Kirin Group has supported Sri Lankan tea farms

In Sri Lanka, droughts and frequent heavy rains caused byto acquire Rainforest Alliance certification. As of end of 2023, 94

climate change have become serious problems. Urbanization,

large tea farms in Sri Lanka, approximately 30% of all certified large

industrialization, soil erosion and outflow as a result of thetea farms, acquired the certification by our support. In August

inappropriate use of land are also major concerns. Because large

2021, we began sales of year-round products that use tea leaves

tea plantations are often located on steep, sunny slopes, heavy

from certified tea farms.

rains not only wash away the fertile soil, but in the past have

Kirin Gogo-no-Kocha is Japan's leading packaged black tea brandcaused landslides that have killed people living on the plantations.

with a share of approximately 50% of the Japanese market. Since

Covering the ground with grass (cover crop) not only enriches thethe launch of the brand, we have used Sri Lankan tea leaves as

ecosystem but also is an effective adaptation measure to climate

the main ingredient. As of 2023, approximately 20% of the Srichange, such as preventing soil runoff from directly hitting theLankan tea leaves imported by Japan were used for Kirin Gogo-no-

ground during heavy rains and retaining water during droughts.

Kocha. We considered purchasing tea leaves from certified farms

The training teaches how to identify grasses that have a negative

to ensure sustainable procurement, but found that at the time, Sriimpact on tea cultivation and ensures that the ground in the tea

Lanka was just after the end of the civil war and there were only aplantation is covered with good, deep-rooted grasses.

limited number of farms that were able to access training on their

Training also teaches scientific methods to increase yields whileown. Therefore, we decided to create a positive impact on the

reducing the use of pesticides and fertilizers. In addition tosustainability of tea farmers by providing certification assistance

protecting the forests, the reduced expenditure on pesticides andto as many Sri Lankan tea farms as possible, rather than leaving

fertilizers improve the plantation's profitability and increase thebehind those farms that have difficulty obtaining certification on

safety of the tea leaves.

Cover crops (slope on right side)

Chemical substance storage unit

Training

Room for changing into protective
clothing for spraying pesticides

Activity

Training content

their own.
Share of tea leaves imported into Japan by area of production

20 20

3
oportionof imports
Proportionof imports
Approximately%*
on of imports
Approximately%*Approximately
oducedin Sri Lanka
produced in Sri Lanka
edin Sri Lanka*4

40 40%

Approx.*4
rox.
%

3

20%*

3

tea leavesof tea leavesofApprox.
teaofleaves*%4
produced
Sri Lanka
produced in Sri Lanka
produced in Sriin
Lanka

40

Percentage of certified large farms in Sri Lanka as a whole thathave received support from the Kirin Group

Supporting growers to obtain Rainforest Alliance Certification

Group
Kirin Kirin
Group

Kirin Group

Training
Training
fundsfunds

Tea Farms
Tea Farms

Rainforest
Rainforest

Alliance
Training
funds
Alliance

Rainforest
Sorting boxes utilizing
Alliance
unnecessary drums

Tea Farms

High-quality Sustainable
Training
High-quality
Farming
Sustainable
FarmingHigh-quality
Training
Sustainable
Farming
materials
materials
materials

Training

Kirin Gogo-no-Kocha Straight Tea using tea leaves
from certiﬁed farms 250ml LL Slim

Approx. 30% since(Cumulative
total
theofstart
oftotalsupportinthe
2013)
30 30%(Cumulative(Cumulative
start of support in 2013)
total since
the start
supportinsince2013)

Approx.
rox.
%

Sign indicating that child labor is
prohibited*1 Certification is awarded to farms that meet comprehensive standards forsustainable agriculture to create a better future for people and nature.
https://www.rainforest-alliance.org*2 Intege SRI+ Tea drink market 2023 Cumulative sales value/value share*3 Kirin research*4 Customs clearance statistics, Ministry of Finance Japan*5 One farm gave up the continuation of its certification in 2023

Holistic Analysis of Risks
and Opportunities

Soil runoff prevention fence

Numberof farms
thatNumber
acquiredofcertification
farms that acquired certificationof farms
that acquired
certificationof 2022 Number Endof 2022d ofEnd2022
withtheGroup’s
Kirin Group’s
support:94*5 Group’s support: 94*5
5 Kirinwith
thewith theKirin
support:94*

Panel showing wild animals to beprotected

Biological
Resources

Used
for Kirin
Gogo-no-Kocha
Used
for Kirin Gogo-no-Kocha
Used
for Kirin
Gogo-no-Kocha

・ TNFD
TCFD

Support for acquisition of Rainforest Alliance Certification

Environmental
Strategy

35

Message fromTop Management

Tea farms

Tea farms

For small farms to obtain certification, the training program organizes
teams consist of small farms and appoint leaders for the teams.

Based on data from a specific farm, our support for certification
provides positive impacts, both financially and socially, on some
farms and farm workers, and makes areas where raw materials are

smallholders to learn the certification standards. This program often
takes time to start actual training since it is necessary to begin bySocial impact of supporting the acquisition ofRainforest Alliance Certification

farms to acquire certification is more difficult than that for large farms.

Profitability

organizing the small farms into teams. Thus, the process for small

As profit per kilogram increases, workers’ salaries also increase

Development of Regenerative Tea Scorecard

（%）
���

In October 2023, the Kirin Group began working with the Rainforest

��

���

to below as the scorecard),” in order to contribute to the expansion

��

��

���
��
��
�

2013

2014

2015

Profit per kg (left axis)

2016

2017

2018

2019

2020

�

in local farms in 2024. Based on the Rainforest Alliance's definition ofregenerative agriculture, the scorecard offers a way to promote soil

the scorecard to identify areas for improvement in the transition to

Activity

regenerative agriculture, assess the current situation, and clarify areas
for improvement to transition. Through this initiative, the Kirin Group

5,000

aims to support the practice of regenerative agriculture at tea farms

4,000

and improve the sustainability of raw material production areas.

3,000
1,000
2013

Total population

2014

2015

2016

2017

2018

Persistent fever and other diseases

Created by Kirin based on Rainforest Alliance data

Support for small farms to obtain certification
In 2018, we began supporting small farms to acquire certificationand provided training to 620 small farms by the end of 2023. From
5,350 farmers.
In Sri Lanka, there are said to be many small family-operated farms,
with the total number in the hundreds of thousands. Tea leaves

Tealeaves

Small
farm
Small
farm
Small
farm
Small
farm

from small farms are collected by nationally licensed collectors
and are then sold to nearby large farms where they are processedand shipped to various regions. Tea leaves from small farms cansometimes account for as much as half or more of the tea leaves
processed in the large farms’ plants. We thus determined theacquisition of certification at small tea farms is also necessary for the

Actual results

629 farms
12%

Plant

The
large farm

Small
farm
Tea
leaves

Small
farm
Small
farm

Small
farm
Small
farm

Number of small farms
assisted to obtain certification(Number of farms that received training)
Target:5,350 farmers
Actual results:629 farms(cumulative total from 2022 to 2024)

Trainer Mr. Giri and farm managers (top left, top right) and the master of a small
farm (bottom right), as well as a tea farm (bottom left)

Holistic Analysis of Risks
and Opportunities

2022 to 2024, we plan to provide training to a cumulative total of*1 Regenerative agriculture is a method of sustainable agriculture which goesbeyond simply reducing harm from agricultural activity, and aims to repair
and restore farmland through soil preparation and other means, while
taking advantage of the material recycling function of nature and taking into
consideration harmony with productivity.

Biological
Resources

2,000
0

in selected tea farms in Sri Lanka, with pilot testing to be conducted

and improved livelihoods for people on farms. Tea farms can use

increasing slightly, the number of cases of disease
have decreased significantly

6,000

of regenerative agriculture. The development of the scorecard began

health, biodiversity conservation on farms, ecosystem restoration,

Workers’ salaries (right axis)

Sanitary conditions While the total population of the farm isFarm A

Alliance on the development of “Regenerative Tea Scorecard (referred

In 2007, the year following the 20-year anniversary of Kirin Gogono-Kocha, we launched the Kirin Sri Lanka Friendship Project tofurther strengthen ties with Sri Lankan tea farms and continue toensure stable production of tea leaves.
In Sri Lanka, tea is mostly grown in mountainous areas. Schools
in those areas usually do not have substantial libraries. The Kirin
Group donates quality books to elementary schools for thechildren of tea farm workers and continues to help the children
to improve their academic abilities and envision their dreams forthe future. We have donated to 242 schools and plan to continue
to increase the number of schools to which we donate.

・ TNFD
TCFD

（%）
���

Book donations to elementary schools in Sri Lanka

Environmental
Strategy

produced more sustainable.

Farm A

36

Local trainers train an elected leader, who will then train the team's

Message fromTop Management

sustainability of black tea leaves.

Social and economic impact of certification

where fields function as high-quality, vast grasslands, enabling the

Mariko Vineyard

development of native and rare species, without being dominatedby highly fertile plants.
Mariko Vinyard will be positioned as an “Other Effective area-based
Conservation Measure (OECM),” which is eligible for the global

Researchers from the National Agriculture and Food Researchconservation areas by 2030” (30 by 30). Grasslands are said to have

Organization (NARO) have confirmed the existence of 168 species

covered 30% of Japan’s national land area 130 years ago, but theyof insects and 289 species of plants at Château Mercian Mariko

have dwindled to just 1% today. The ratio of endangered plants per

Vineyard, on the Jinba Plateau in the Maruko district of Ueda City,

unit area is extremely high for grasslands (see chart below), andChâteau Mercian Mariko Vineyard

target adopted at COP 15 to “make at least 30% of land and sea

Nagano Prefecture. We have been conducting ecological surveys

they play an important role in conserving biodiversity.

since 2014, and the species that we have confirmed include

Château Mercian Mariko Vineyard was selected as Nationallyendangered species listed in the Red Data Book of the Ministry of

Certified Sustainably Managed Natural Sites by Ministry of thethe Environment Japan. Many rare species, including endangered

Environment Japan in October 2023. It was the only site to receive
approval as a certified business site growing agricultural raw
materials at that time. In the future, we expect the Ministry of the

In addition to contributing to the expansion of our business, theEnvironment to register it as an OECMs in an international databaseconversion of derelict farmland into hedgerow-style vineyards forand for us to be able to contribute to achieving the global target set

Japan Wine also creates valuable grasslands and contributes toforth at COP 15. We also plan to apply for other Château Mercian

the expansion and protection of Japan’s traditional rural Satochi-

vineyards to be approved as Nationally Certified Sustainably

Satoyama landscapes. There is a so-called “secondary nature” thatManaged Natural Sites in order.

is protected because of human efforts to preserve it. Grassland is atypical example of such nature.
37

In Japan Wine vineyards, wefor vertical shoot cultivation.
Regular undergrowth cutting

Insects

Plantsspecies

species168

289

creates an environment

1400
1200
1000
800
600
400
200
0

1.4
1.2
1
0.8
0.6
0.4
0.2
0

Grassland area
in Japan has
declinedmarkedly sincethe 1980s

Leonurus japonicus
Near threatened species on
the Nagano Red List

Jyonohira Vineyard

Seashore

Grasslands

Wetlands

Agricultural
Areas

Compiled from forest area statistics andMinistry of Agriculture, Forestry and
Fisheries statistics.

Forests

1890 1900 1920 1940 1960 1980 2000

Grasslands havethe highest rateof endangered species

Critically endangered II(VU) on the Red List of the
Ministry of the Environment
and near threatened on the
Nagano Red List

Western Japan Grassland Association
analysis and calculation in 2007

Papers by NARO related to vineyard ecosystem research are as follows.
●Butterfly diversity in a vineyard developed from abandoned orchards

Vincetoxicum pycnostelma
Near threatened specieson the Ministry of theEnvironment and Nagano
Prefecture Red List

Tengusawa Vineyard

Platycodon grandiflorus

Cephalanthera erecta

Argyronome laodice japonica

Vulnerable species on the
Ministry of the Environment's
Red List and near threatenedon the Yamanashi Red List (NT)

Vulnerable species
both the Ministry of theEnvironment's Red List andthe Yamanashi Red List (VU)

Critically endangered II (VU)
on the Red List of the Ministryof the Environment and nearthreatened on the Yamanashi
Red List

Biological
Resources

Number of endangered
species by unit area

Critically endangered II on the
Red List of the Ministry of theEnvironment. Near threatened
species on the Nagano Red List

Argyronome laodice japonica

Activity

regularly cut the undergrowth

Trends in grasslandarea in Japan

Hemerocallis citrina var.
vespertina

Sophora flavescens
The only edible grass forfeeding Shijimiaeoides divinus ,a butterfly that the Red List of
the Ministry of the Environment
lists as critically endangered IA(designated as endangered IB
by Nagano Prefecture)

・ TNFD
TCFD

species, have also been found in Jyonohira Vineyard in Katsunumacho, Koshu City, Yamanashi Prefecture.

Zygaena niphona niphona
Near threatened specieson the Ministry of theEnvironment and Nagano
Prefecture Red List

Environmental
Strategy

Nature Positive at Japan Wine vineyards

Message fromTop Management

Vineyard

Koichi TANAKA, Yoshinobu Kusumoto (2022) Butterfly diversity in avineyard developed from abandoned orchards. Nodai Entomology 3: 1-7.
nodaient_contents/contents/3/3-1.pdf

Rare spider found in Mariko Vineyard●Vineyard bird diversity

Naoki KATAYAMA, Hiroshi UCHIDA, Yoshinobu KUSUMOTO, Tomohiko

IIDA(2022) Bird use of fruit orchards and vineyards in Japan: Mitigating aknowledge gap with a systematic review of published and grey literature,
ORNITHOLOGICAL SCIENCE, 21(1), 93-114
https://www.jstage.jst.go.jp/article/osj/21/1/21_93/_article/-char/ja/●Recording of rare spiders at Mariko Vineyard

Yuki G. BABA (2022) Fourth record of the ground spider Phaeocedus

Château Mercian Mariko Winery

Careful mowing at Jyonohira Vineyard

braccatus (L. Koch, 1866) (Araneae: Gnaphosidae) from Japan
https://media.niche-life.com/series/009/Niche009_26.pdf

Phaeocedus braccatus(Gnaphosidae)

Calommata signata(Atypidae)

The fourth specimen of thisNear threatened (NT) on theextremely rare species to be

Red List of the Ministry of thefound in Japan

Environment and endangered I(CR+EN) on the Nagano Red List

We have also conductedecological research on spiders
in the vineyard, which is thefirst research on spiders in avineyard in Japan. As a resultof these surveys, we haveconfirmed the existence of rare
species of spiders, including
a species found for the firsttime in Nagano Prefecture,endangered species listed
in the Red Data Book of the
Ministry of the Environment,
and the fourth specimen of arare spider found in Japan.

Holistic Analysis of Risks
and Opportunities

https://www.nodai.ac.jp/agri/original/konken/shigen/publication/

Château Mercian Mariko VineyardVineyard

emissions, and approximately 25% of the Kirin Group's Scope 3

surveys, we confirmed increases of of species as: 88 (2020),

emissions come from agricultural raw materials. Accordingly, we103(2021), and 108(2022). Such signs indicate that the area iswill accurately measure and understand GHG emissions from

Our joint research of ecosystem changes with NARO at Tengusawa

becoming a high-quality grassland. In insect surveys, we foundvineyards and evaluate the carbon storage effect of biochar

Vineyard in Koshu City, Yamanashi Prefecture, is said to be rare

Argyronome laodice japonica, a vulnerable species listed in theutilizing pruning debris from vineyards. In addition, we will assesscase even on a global basis. The research has surveyed change of

Ministry of the Environment and Yamanashi Prefecture’s Red Datathe potential of regenerative agriculture as a measure to mitigate

ecosystems while we convert derelict farmland into a hedgerow-Books in 2021. The number of observable species also increased:climate change, and consider its expansion to other agricultural

style vineyard.

16(2020), 28(2021), and 30(2022).

raw materials.

Château Mercian Tengusawa Vineyard

At Mariko Vineyard and Jyonohira Vineyard, we began our surveys
after vineyards were already well-maintained. On the other hand,at Tengusawa Vineyard, we have been able to make observations
based on the condition of derelict farmland before development.

In March 2024, the Kirin Group, in a joint research project withof derelict farmland into vineyards enriches ecosystems.

NARO, began working to upgrade the biodiversity assessment of

In a survey in 2016, prior tovineyards at Mariko Vineyard and assess the carbon storage effect,

insect and plant species were
extremely lacking in diversity,

Evolution of the Tengusawa
Vineyard ecosystem
number of species

which is a measure to mitigate climate change. When upgrading
the biodiversity assessment, we will analyze and evaluate thecontribution of the rich ecosystem at Mariko Vineyard to the Jinba

PlantsPlateau and surrounding ecosystems and explore the possibility ofeating the vegetation. Since

2016

14

36

contributing to the restoration and maintenance of ecosystems inthe vineyard was cultivated in

2018

13

43

the area where the vineyard is located. We will also examine the2017 and subsequently fenced

2019

18

78

possibilities for ways that hedgerow-style vineyards can contribute

2020

19

88

2021

28

103

2022

30

108

off, we have seen a processof ecological enrichment as
the deer-eating damage has
decreased and the landscapeto the stable cultivation of high-quality grapes.
As a measure to address climate change, we plan to accumulateknowledge about regenerative agriculture*1. Greenhouse gas (GHG)
emissions from agriculture account for about one quarter of global*1 Regenerative agriculture refers to sustainable agriculture that reduces
environmental impact from the use of chemical fertilizers and agriculturalchemicals through soil preparation and other means, while taking advantageof the material recycling function of agriculture and working to achieve
harmony with productivity.
*2 Pruning debris refers to branches, etc., that are cut off when pruning
grapevines.
*3 Biochar is a solid material produced by heating biomass (biologicalmaterial) at a temperature of 350°C or higher under oxygen concentrations
controlled at non-combustion levels. In addition to its carbon storage effecton soil, biochar also improves soil water permeability and is used as a soil
improvement material.

Biological
Resources

Butterflies

Activity

as a result of damage from deerYear ofstudy

・ TNFD
TCFD

Through these surveys, we are able to confirm that the development

the development of this land,

38

Joint research on upgrading biodiversity assessmentin fields and assessing the carbon storage effectEnvironmental
Strategy

has been transformed into a vineyard-like landscape. In vegetation

Message fromTop Management

Studies into the process of convertingderelict farmland into vineyards

The process of converting idle and devastated land into vineyards in Tengusawa Vineyard

Holistic Analysis of Risks
and Opportunities

2016

2017

2018

2019

2020

2021

2022

Hop fields

Mass plant
propagation technology

We have been conducting an ongoing living species survey in theto acquire Rainforest Alliance Certification. We are expanding our

hop fields of contracted farmers in Tono City since 2014. In 2015,

activities from tea farms in Sri Lanka to coffee farms in Vietnam,

we confirmed the existence of 104 species of insects and 19

Kirin’s mass plant propagation technology consists of four underlying

leveraging our experience of the support. By the end of 2022, 350

species of birds.

technologies: stem propagation technique (organ culture method),

farmers of Robusta were certified and 309 farmers of Arabica have

Hop fields are plowed every year, so the fields themselves do not

sprout propagation technique (PPR method), embryo propagation

completed the transition to Rainforest Alliance certification. In thehave the function of enriching the vegetation, but the fact thattechnique (somatic embryo method), and potato propagation

past, Arabica coffee farmers were certified by UTZ.

windbreaks were created and maintained for hop cultivation andtechnique (micro tuber method). This original technology is globally

Due to the global spread of COVID-19, it was difficult to visit the sitesthat hop fields continue to function as one of the rich ecologicalunprecedented.

since the spring of 2020, immediately after the start of the support.

systems in Satochi-Satoyama can be said to have contributed to

Plant propagation is normally performed using seeds and cutting.

In October 2022, we visited small farms receiving support in Da

the richness of the vegetation.

These methods result in a limited cultivation period, and the

Lat City, the Lam Dong Province, located in central south Vietnam.
Through our visit, we found that the farmers lacked agricultural
the government encouraged them to become coffee growers.
We were also able to confirm that certification training contributes togrowth rate can be low depending on the plant. However, Kirin’s
mass propagation technology that we developed through our own

Insects

Birds

species

species104

research makes it possible to significantly increase the number of19quality plants with the same characteristics as the parent plant,
regardless of the season.

a certain degree to the sustainability of coffee farms.
From 2024, we will move the field of our action to Gia Lai Province,
Vietnam, where we plan to support 1,400 Robusta producers to39

obtain certification over three years. In these activities, we will focus
and water source conservation activities. Specifically, we will train

Palm oilby contributing to prevention of soil erosion and the maintenanceof groundwater levels through measures such as shade cultivation,
provision of seedlings for wind breaking forests, and the practice ofcover cropping.

The Kirin Group uses palm oil in someof its products, but the quantity is very

Ratio of Book & ClaimRSPO certification

the Book & Claim method approved by theRoundtable on Sustainable Palm Oil (RSPO)

promoting the spread of new varieties that have been developed in
response to environmental changes. For example, it will be usefulfor the mass propagation of new varieties, endangered species,

small. As a result, it is difficult to procure
physically certified oil, so we have adopted

raw materials. Mass plant propagation technology may be useful forand useful plants, and we thus expect it to positively impact the100%

sustainability of agriculture.

Biological
Resources

reduce expenses for farmers. We also aim to improve productivity

that we have conducted since 2018 show that climate change hassignificant impacts on yields of many agricultural products used as

farmers to produce biofertilizers themselves, utilizing coffee husks
and agricultural waste to reduce chemical fertilizers and thereby

Kirin’s scenario analyses based on the TCFD recommendations

Activityon integrated pest management (IPM), regenerative agriculture,

Adaptation measures against climate change

・ TNFD
TCFD

knowledge because they received little technical assistance although

Environmental
Strategy

Since 2020, the Kirin Group has supported coffee farms in Vietnam

Message fromTop Management

Coffee farms

for the procurement of certified sustainableoil (excluding palm kernel oil).
In accordance with our Action Plan for thePrimary raw materials
Secondary raw materials

Sustainable Use of Biological Resources, we have been calculating
Arabica coffee farms

for palm oil used as a primary raw material from 2013 and as asecondary raw material from 2014, and we use RSPO-certified
oil for the full amount (excluding palm kernel oil). We became
an associate member of the RSPO in March 2018 and a regularmember in FY2022. Since 2021, we have been a member of the“Japan Sustainable Palm Oil Network (JaSPON),” in order toaccelerate the procurement and consumption of sustainable palm

Drying of the coffee fruit (robusta)

The picturesque coffee bean producing
region of Da Lat

oil in the Japanese market as a secondary raw material.

Holistic Analysis of Risks
and Opportunities

our usage of palm oil in accordance with predetermined standards

Food waste reduction and recycling

Message fromTop Management

Paper andprinted materials

Reduce product waste losses
Reuse of spent grapes

improving demand forecasting, for example by closely sharing

Spent grapes from wine production are

information on demand fluctuation with plants and distribution“turned over” for a period of one year in a

certified paper or recycled paper by the end

centers.

compost heap on the company vineyard andof 2020. This target covers paper containers

In addition, strict management of sales volume targets ensuresreused as compost (organic fertilizer).

2017, we declared our aim of using 100% FSC-

100%

in Japanese Alcoholic and Non-alcoholic
Beverages Business, as well as all office paperthat valuable biological resources, containers and packaging are
Effective use of shochu spent grain

not wasted.

such as copy paper, envelopes, businesscards, company brochures, and other printed
materials. We successfully completed the switch

Since 2015, we have been supplying some of the residue (shochu

Kirin Brewery

Paper and Printed
Materials-90%

to 100% FSC-certified paper or recycled paper in November 2020.

spent grain) generated from shochu production in Mercian’s

Kirin Beverage

Yatsushiro Plant to hog farmers in Kumamoto Prefecture. In the

Merciansix years from 2015 to 2020, farmers used 7,158 tonnes of shochubags with the KIRIN logo, application postcards for prizes, and some

spent grain as livestock feed. In 2019, Kirin Holdings, Mercian andthe University of Tokyo jointly confirmed for the first time in the

Reduction target -75%
(by 2025, compared with 2015)

paper cups for tasting. We plan to expand these activities to otherbusinesses in Japan and overseas in the future.

world that shochu spent grain can reduce stress among hogs andimprove the taste of pork, demonstrating the potential for theContinuous donation of surplus inventory* to local
governments and food banks
440

are still cases when we cannot avoid generating excess inventory
because of gaps between demands and supplies. Since 2022, Kirin
Beverage has donated excess inventory to local governments, food

Envelopes*4 Products that cannot be shipped because it takes time for them to reach thecustomer, even if there are no quality issues and they are within the expiration
date.

Paper bags

spnet grain generated daily, we try to avoid the grain to be waste
as much as possible by using the grain as a raw material forcompost or as a microbial nutrient source for activated sludge inpaper mills. In 2021, our initiatives to utilize shochu spent grain
as livestock feed received praise, and our Yatsushiro Plant won
the “Fiscal 2021 Circular Economy Creation Promotion Merit
Commendation of the Minister of the Environment Japan”.

Biological
Resources

banks, for effective use by those in need.

Since livestock feed alone is not enough to process the shochu

Activity

We are making various efforts to reduce food waste, but there

effective use and creation of value from shochu spent grain.

・ TNFD
TCFD

Actual data
for fiscal 2022

Currently, we are promoting the use of FSC-certified paper for paper

Composting site forgrape press lees

Environmental
Strategy

To continually reduce waste loss, we optimize our operation by
FSC-certified paperor recycled paper

In the Action Plan that we revised in February

Recycling
Conversion of spent grain into livestock feed
The spent grain from beer production still contains nutrients and iseffectively used for cattle feed and culture media of mushrooms.

FSC® N004238*1 The Forest Stewardship Council (FSC) Forest Certification System is a system
for the appropriate management of forests and the sustainable use andconservation of forest resources. The FSC label is a mark that protects forests.
*2 The information above is current as of June 30, 2022. Photographs ofenvelopes, paper cups, etc., may be as of the time that events occurred, anddo not necessarily represent the latest versions.
*3 For details of the use of FSC-certified paper for paper containers, please see
the information in "Sustainable Paper Containers.”

Developing food products from brewer’s yeast
Lion continues to supply brewer’s yeast for use as an ingredient in
the Australian fermented food, Vegemite.

Holistic Analysis of Risks
and Opportunities

Paper cups
Application postcards

Educational program for wildlife conservation in Sri Lanka
Kirin Beverage is funding an educational program for wildlife
conservation for young people in tea farms in Sri Lanka. Leopards,
which are at the top of the food chain in the Sri Lankan ecosystem,
the need to educate the plantation and local people about theimportance of preserving the ecosystem. In 2020, a black leopard
was found in a trap. The black leopard in Sri Lanka is a mutationof a leopard that has not been seen in more than a decade. This
black leopard that was caught in the snare was transported to the
Department of Wildlife's animal hospital at the Elephant Transit
Home bordering the Udawalawe National Park but unfortunatelyof this incident, Sri Lankan NGOs, the Department of Wildlife

Château Mercian Mariko Vineyard through revegetation activities withthe participation of employees. Château Mercian values coexistencewith nature, local communities, and the future. By collecting dry grassfrom the habitat of rare and native species and seeding it back into
the field, Mariko Vineyard aims to regenerate vegetation from theseeds in dry grass that is sown. In the area where we regenerated
vegetation, the average number of species present in 2016 was 8.2,
but by 2021 this number had increased to 17.9.

about environmental conservation came together to plan a pilot

Activities to increase shrubby sophora in Mariko
vineyard

project to educate young tea farmers about the local ecosystem.

Along with an NGO and local elementary school students, we

Conservation, academic experts, and farm managers passionate

Kirin Beverage helped implement this project through funding
41

expand the habitats of rare and native species in the fields ofsupport. This program is implemented several times a year.
Lanka and representatives from environmental NGOs. Dozens ofyoung people who live on the farms receive two days of on-farmclassroom training and four days and three nights of field training

flavescens) in Mariko Vineyard. In 2019, international NGO
Earthwatch Japan and its volunteers collected, with the permission

and grew them. Two years later,
at the end of May 2021, weplanted the seedlings at Mariko
Vineyard.

Revegetation activities at
Mariko Vineyard
Year ofstudy

Average number of
species per square meter

2016

8.2

2017

12.0

Furthermore, since 2021,

2018

14.2

Shiogawa Elementary School,

2019

16.8

a local school where Mariko

2020

17.5

Vineyard is, has participated

2021

17.9

in activities to increase

shrubby sophora. The school grew cuttings in a flower bed in theschoolyard and planted them in Mariko Vineyard at the end of May
2022. We also invite a lecturer from NARO and hold environmental
classes for students at the school. We continued these initiatives
in 2023.

Protection of endemic species in the biotopes in plants
At Kirin Brewery’s Yokohama Plant, in an endorsement of the“Yokohama b Plan,” the city’s biodiversity action plan, we built a

Activities to increase shrubby sophorabiotope in the grounds of the plant in the summer of 2012. The
ecosystems, is pursuing initiatives to enrich the local ecosystem.

participated, and there have been some examples of students

Kirin Brewery’s Kobe Plant has been cultivating local endangeredin the first program finding work in environmental NGOs and thespecies, including the fish species, Hemigrammocypris rasborellaadministrative departments of Horton Plains National Park.

(golden venus chub), and Pogonia japonica, a species of orchid, in

Biological
Resources

Yokohama Brewery, which is a part of a widespread network ofat Horton Plains National Park. Over 200 youth have already

Activity

Lecturers include researchers from the Tea Research Institute of Srialso engage in activities to increase shrubby sophora (Sophora

cuttings of shrubby sophora,・ TNFD
TCFD

succumbed to its injuries and stress a few days later. In the wake

In 2016, under the guidance of specialists, we started efforts toof the rice field owners,

Environmental
Strategy

are often caught and killed in traps set by local people, increasing

Revegetation activities at
Château Mercian Mariko Vineyard

Message fromTop Management

Support for the restoration of nature

the plant’s biotope that we set up in 1997. This biotope functions
as a “refuge biotope” for protection and cultivation of local
endangered species. Our initiatives at our Kobe Brewery won
praise, and in 2018, we were awarded the “Fiscal 2018 Greening
Promotion Merit Award by the Prime Minister.”in activities with local communities to conserve the Ayumodoki(Parabotia curtus), a nationally designated natural monument.
Every year, farmed Ayumodoki raised by a local elementary school
are released into the biotope on the site, and in cooperation with
the Organization for the Protection of Ayumodoki in Seto and otherWildlife conservation workshop(Upper) Sophora flavescens planting by elementary school students at
the foot of Mariko Vineyard(Lower) Volunteer Sophora flavescens planting and cuttings

specialists, we work to improve the environment to make it easy
for Ayumodoki to grow, and conduct regular ecosystem surveys.

Holistic Analysis of Risks
and Opportunities

Since 2005, Kirin Brewery's Okayama Plant has been involved

Number of large farms obtaining certification in Sri Lanka(Farms)
100

90

80
60

60

72

94

94

60
40

0

20

7
2014

2015

2016

2017

2018

2019

2020

2021

2022

0

78

Plants
Butterflies

80

72

40
20

(Species)
100

103

108

14

13
2017

2018

Target

(%)
-100
-80

-75%
(2025)

18

19

2019

2020

28

30

-92

-90

2021

2022

-81

-65

-60

43

36

2016

88

Food waste reduction rate (compared with 2015)

-48

-40

-44

-20
2021

2022

0

2017

2018

2019

2020

Environmental
Strategy

52

93

Recovery of Tengusawa Vineyard ecosystem

Message fromTop Management

Key data related to biological resources

・ TNFD
TCFD

42

Activity
Biological
Resources

https://www.kirinholdings.com/en/impact/env/3_3/

Holistic Analysis of Risks
and Opportunities

We provide the latest updates on our initiatives related
to biological resources on the following website.