March, 2022

Kirin Holdings Company, Limited
Kirin Sustainable Finance Framework
1. Introduction
Kirin Holdings Company, Limited (hereinafter, "The company" or "Kirin") has developed the following"Kirin Sustainable Finance Framework" (Green・Social・Sustainability Finance Framework, hereinafter,"This framework"). The company has obtained a second party opinion from DNV BUSINESSASSURANCE JAPAN K.K.(hereinafter, "DNV"), an independent external reviewer, that this frameworkis aligned with the Green Bond Principles 2021(ICMA), Social Bond Principles 2021(ICMA),
Sustainability Bond Guidelines 2021 (ICMA), Green Bond Guidelines 2020 (Ministry of theEnvironment, Japan), Social Bond Guidelines (October 2021, Financial Services Agency of Japan),
Green Loan Principles (LMA) (APLMA) (LSTA) and Green Loan and Sustainability Linked LoanGuidelines 2020 (Ministry of the Environment, Japan).
The company will execute Green ・Social・Sustainability Finance (hereinafter, "Kirin SustainableFinance") based on this framework.
1.1 About Us
Kirin is the holding company of the Kirin Group, which includes Kirin Brewery Company, Limited,Kirin Beverage Company, Limited, Mercian Corporation, Lion Pty Ltd, Kyowa Kirin Co., Ltd., Kyowa
Hakko Bio Co., Ltd., etc. Headquartered in Tokyo, the Kirin Group mainly operates in Japan, Asia,and Oceania. Based on fermentation and biotechnology cultivated since its foundation, Kirin
expanded into the Food domain (alcoholic & beverages business), the Pharma domain(pharmaceutical business), as well as the Health Science domain (health science business), anintermediate domain between the two.
1.2 Corporate Philosophy
KIRIN brings joy to society by crafting food and healthcare products inspired by the blessings ofnature and the insights of our customers.
1.3 Kirin Group's CSV Management
The Kirin Group has formulated the Group Materiality Matrix (GMM), which outlines the key issues
that must be addressed in order to sustainably exist and develop together with society. Based on
the GMM, we have formulated the CSV Purpose as a guideline that translates our management
philosophy into the significance of our existence in society, and have established the CSV
Commitment as a medium-term action plan for achieving the CSV Purpose. The CSV Commitment
is incorporated into the business plans of the Group companies, and its progress is linked to1

performance evaluations.

23

CSV Commitment (Excerpt)41.4 Kirin Group Environmental Vision 2050
As Kirin regards CSV as being central to its management strategy, the Kirin Group has revised its
existing environmental vision and formulated a new vision, Kirin Group Environmental Vision 2050,
with the aim of spearheading the efforts to tackle environment issues. Following the vision to "Enrich
the Earth with Positive Impact", Kirin and its broad stakeholders enrich society and the Earth for
future generations through positive impact on people and the environment.

1.5 Health Science Domain
Domain in which the Kirin Group will create new economic and social value by providing solutions
to “health and well-being issues” while utilizing the group’s core competencies. Especially, the Kirin
Group is stimulating innovation by taking advantage of synergy effects from the 3 key areas:
immunity, brain and gut microbiome.

51.5.1 Priory Areas within the Health Science Domain and Our Unique Innovation Process

1.5.2 Linkage between Kirin's Health Science Business and Social Guidelines
The Kirin Group has identified "Health and well-being" as one of the key issues within CSV Purposeand is making efforts to "Raise the number of healthy people, lower the number of sick people, andcontribute to the people who are involved in healthcare". Especially, the Kirin Group has determined
immunity, brain and gut microbiome as its 3 key areas and is endeavoring to solve health issues inthese areas through providing products and services that use strategic ingredients produced byutilizing fermentation and biotechnology, the Kirin Group's core competencies.
The Kirin Group believes that these efforts will contribute to the "Achievement of Good Health andLongevity", one of the social issues listed in the "SDGs Action Plan 2021", and are aligned with theSocial Bond Principles and the Social Bond Guidelines.
1.6 Rationale for Kirin Sustainable Finance
Kirin considers the execution of Kirin Sustainable Finance as funding for solving social issues statedabove and for promoting CSV. It is also regarded as an opportunity to share Kirin's overall initiatives
to its stakeholders, which include Kirin's customers, shareholders, investors, employees,communities, business partners as well as the environment.

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

Projects

Green Bond Principles

SDGs

Projects Categories
Businesses related toenergy efficiency

 Introduction of heat Energy Efficiency

7.Ensure access topump systems to(Environmental

affordable, reliable,production sites

objectives: Climate

sustainable and modernchange mitigation)energy for all
9. Build resilient
infrastructure, promote
inclusive andsustainableindustrialization andfoster innovation
13.Take urgent action tocombat climate changeand its impacts

Businesses related to Procurement and Pollution prevention

9. Build resilient

pollution prevention andcapital investment ofand control

infrastructure, promotecontrol

recyclable PET resin(Environmentalinclusive andEco-efficient products

objectives:

sustainable

and/or circular

Pollution prevention

industrialization andeconomy adaptedand control)

foster innovation

products, production

 Eco-efficient products

12. Ensure sustainable

technologies andand/or circularconsumption andprocesses

economy adapted

production patterns

products, production

14. Life Below Water

technologies and7processes(Environmental
objectives: Naturalresource
conservation)
Businesses related torenewable energy

 Introduction of solar

 Renewable Energy

7.Ensure access topower generation(Environmental

affordable, reliable,equipment toobjectives: Climate

sustainable and modern

production siteschange mitigation)energy for all Procurement of

9. Build resilient

renewables

infrastructure, promote
inclusive andsustainableindustrialization andfoster innovation
13.Take urgent action tocombat climate changeand its impacts【Social Projects】
Categories

Projects

Social Bond Principles

SDGs

Projects Categories
Businesses that Capital investment, Access to essential

2. Zero hunger

contribute to theoperation, andservices (health,

3. Good health andachievement of a

procurement of raw

health care)well-being

society of health andmaterials contributing(target population:

9. Industry, Innovation

longevity, mainly

to the production ofgeneral public)

and infrastructure

through infant andHuman Milk

toddler health

Oligosaccharide

improvement and(HMO) Access to essential

2. Zero hunger

disease prevention
Businesses that Capital investment,

contribute to theoperation, andservices

3. Good health andachievement of a

procurement of raw(health, health care)well-being

society of health andmaterials contributing(target population:

9. Industry, Innovation

longevity, through brain

to the production ofgeneral public, aging

and infrastructure

function improvement

Citicolinepeople, patients)

and brain function
decline prevention

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Businesses that Capital investment, Access to essential

3.Good health and well-contribute to theoperation, andservices (health,beingachievement of aprocurement of raw

health care)

9.Industry, Innovationsociety of health andmaterials contributing(target population:and infrastructure

longevity, through theto the research andgeneral public, aging

maintenance ofdevelopment of Lc-people, vulnerable

immune function

PLASMA and theyouth)

production of raw
material powder
utilizing Lc-PLASMA

2.1.2 Exclusion Criteria
The proceeds of Kirin Sustainable Finance will not be allocated to projects related to:Plastic manufacturing not subject to recycled PETUnfair transactions that do not comply with the laws and regulations of the country, such asbribery, corruption, blackmail, embezzlement, etc.

Transactions that can cause social problems relate to human rights and the environment

2.2 Process for Project Evaluation and Selection
2.2.1 Process for Evaluation and Selection
Kirin's Accounting Department and CSV Strategy Department will select the eligible projects as
defined in 2.1, and the final decision on the selected eligible projects will be made by the Executive
Officer in charge of Financial Strategy. The eligibility of projects is based on an overall evaluation of
their contribution to the achievement of the CSV Purpose.

92.2.2 Process to Mitigate Environmental and Social Risks
In the implementation of the project, Kirin will comply with environmental laws and regulations andagreements with the relevant communities throughout the project execution and project period,and will also follow the Kirin Group Compliance Guidelines in order to act with integrity and in
conformity with social ethics. In the event of any ESG controversy related to an eligible project, thecompany will address and disclose such controversy as appropriate.
2.3 Management of Proceeds
Kirin's Accounting Department will manage the allocation of the net proceeds from Kirin Sustainable
Finance once every half year using the internal management system until the proceeds have been
fully redeemed. Such allocation will be made to the eligible projects within one year of fundraising.
The proceeds from Kirin Sustainable Finance will be managed in cash or cash equivalents until theproceeds have been fully allocated.
2.4 Reporting by the fundraiser
2.4.1 Allocation Reporting
Until the proceeds have been fully allocated, Kirin will provide information on the allocation ofproceeds to projects that meet the eligible criteria (project name, project description including its
progress, amount of allocated and unallocated proceeds) on its website annually, while considering
the confidentiality of the projects.
Moreover, in case of refinancing an asset that requires long-term maintenance through multiple
executions of Kirin Sustainable Finance, Kirin will disclose the asset's age, remaining useful life andthe amount to be refinanced as at the time of the execution.
Kirin will report timely in the event of a significant change after full allocation of the proceeds.

102.4.2 Impact Reporting
Until the maturity or repayment of Kirin Sustainable Finance, Kirin will annually provide, to the extent
practicable, the following indices on its website.
【Green Projects】
Categories

Projects

Businesses related to energyIndices Introduction ofefficiency GHG reductions（t-CO₂）

heat pump systems toproduction sites

Businesses related to pollution

 Procurement and capital

prevention and control

investment of recyclable PET

Eco-efficient products and/orresin Percentage of recycled resinused（%）

circular economy adapted
products, production
technologies and processes
Businesses related to renewable Introduction of solar power

energy GHG reductions（t-CO₂）

generation equipment toproduction sites
 Procurement of renewables【Social Projects】
Categories

Projects

OutputOutcome (*)(Benefits for or changes(outcomes) of thetarget population)

Businesses that

 Capital investment, Increase in HMO

contribute to theoperation, andmanufacturing

number of users ofachievement of a

procurement of raw

capacity

products containing

society of health andmaterials contributing

HMO (infant formula,longevity, mainly

to the production ofhealth foods, etc.) inthrough infant andHuman Milk

Japan and overseas.

toddler health

Oligosaccharide

The products

improvement and(HMO)

containing HMO

disease prevention

 Increase in thecontribute to thehealth of a wide rangeof our customers.

11Businesses that

 Capital investment, Increase in Citicoline

 Increase in thecontribute to theoperation, andmanufacturing

number of users ofachievement of a

procurement of raw

capacity

products containing

society of health andmaterials contributing

Citicoline

longevity, through brain

to the production of(pharmaceuticals,function improvement

Citicoline

health foods, etc.) inand brain function

Japan and overseas.

decline prevention

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

Businesses that Capital investment, Increase in Lc-

contribute to theoperation, andPLASMA

number of people

achievement of a

procurement of rawmanufacturing

who continuesociety of health andmaterials contributing

capacity

consuming Lc-

longevity, through theto the research andmaintenance ofdevelopment of Lc-immune function

PLASMA and the Number of publishedpapers Number of conference

production of raw

presentations

material powder Partnerships withutilizing Lc-PLASMA

Academia Increase in thePLASMA in Japan andoverseas. Lc-PLASMA
contribute to themaintenance ofimmune function ofour customers.

*Kirin will report the number of users in each projects annually.

122.5 External Review
2.5.1 Second Party Opinion
Before the execution of Kirin Sustainable Finance, Kirin has obtained a second party opinion fromDNV, an independent external reviewer, that this framework is aligned with the Green Bond Principles
2021(ICMA), Social Bond Principles 2021(ICMA), Sustainability Bond Guidelines 2021 (ICMA), Green
Bond Guidelines 2020 (Ministry of the Environment Japan), Social Bond Guidelines (October 2021
Financial Services Agency of Japan),Green Loan Principles (LMA)(APLMA) (LSTA) and Green Loanand Sustainability Linked Loan Guidelines 2020 (Ministry of the Environment Japan).
2.5.2 Annual Review
Within one year from the date of the execution of Kirin Sustainable Finance, Kirin will obtain a review
from DNV, an independent external reviewer, to evaluate whether its reporting is aligned with thisframework. This review will be conducted annually until the proceeds from Kirin Sustainable Financehave been fully allocated.

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