Respect for human rights

We will prevent and correct human rights issues throughout the value chain and create a safe and secure working environment with our business partners. And we will strive to raise awareness of human rights throughout the Group and promote initiatives to respect the human rights of our employees.

SDGs Target

Commitments and Performance Indicators

Kirin Group has established a policy on human rights and strives to comply with it.
We ensure that our employees thoroughly understand respect for human rights, and raise awareness of human rights throughout the Group.

Policy and Strategy

Message from Senior Executive Officer of Personnel and General Affairs

Based on the Kirin Group Compliance Policy, which is independently established, the Kirin Group has long been working to raise employee awareness of human rights and to protect human rights. In addition, amid growing international demand for human rights initiatives in business, in February 2018 we established the Kirin Group Human Rights Policy in accordance with the United Nations Guiding Principles on Business and Human Rights.
As stated in this Kirin Group Human Rights Policy, we believe that respect for human rights is the foundation of our management. Our business activities are deeply involved with all of our stakeholders, including our employees, customers, communities, and business partners. In light of the impact on human rights through these business activities, the Kirin Group will promote human rights initiatives based on this policy throughout the value chain process, from research and development and raw material procurement to the manufacture and sale of products and services.

In recent years, changes in the environment surrounding management have become increasingly accelerated and complex. New human rights risks, such as rising geopolitical risks, have also emerged. It goes without saying that the impact of human rights risks on management is greater than ever before, and even as the Kirin Group develops its global business, it is necessary to respond to human rights risks more meticulously and appropriately than ever before.

The Kirin Group, which upholds CSV management, will continue to ensure that the items set forth in the Kirin Group Human Rights Policy are put into practice, including human rights due diligence in accordance with international standards, and will also strengthen the system for promoting these items.
We will also continue to evolve our efforts through appropriate disclosure of information and dialogue with our stakeholders, leading to the discovery of new human rights issues and their resolution.

Senior Executive Officer
Personnel and General Affairs
Junko Tsuboi

Kirin Group Human Rights Policy

The Kirin Group has expanded our business in response to changes in the societies in which we live and operate. We have expanded our products from beer to a wide variety of alcoholic beverages, soft drinks and foods, as well as advanced pharmaceuticals, and our business activities have spread around the world. Respect for human rights is a foundation for all of our business activities. We recognize that companies such as ours must continuously deepen their understanding of the potential human rights impacts associated with their own business and global value chain and take appropriate action to ensure respect for rights. We will conduct our business activities in line with this Kirin Group Human Rights Policy.

This policy applies to all the executives and employees - including part-time, dispatch and contract workers - of the Kirin Group, which constitutes Kirin Holdings Company, Limited and its consolidated subsidiaries. The Senior Executive Officer for Human Resources Strategy at Kirin Holdings Company, Limited is responsible for the implementation and management of this Policy.

We expect that all of our business partners adhere to this policy. The Kirin Group will work to make our suppliers aware of this Policy, and we expect their compliance.

This Human Rights Policy governs all other policies and documents related to the Kirin Group’s efforts to respect human rights across our global operations.

1.Respecting Human Rights in Practice

We understand that our business activities may have direct or indirect human rights impacts at every stage in the value chain, from R&D and procurement of raw materials to consumption/use of our products and services. We are committed to respecting human rights as set out in the International Bill of Human Rights^*1 and the International Labour Organization's Declaration on Fundamental Principles and Rights at Work^*2. We support and are working to implement the United Nations Guiding Principles on Business and Human Rights,^*3 and Kirin Holdings Company, Limited is a signatory to the United Nations Global Compact.

The International Bill of Human Rights consists of the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights and the International Covenants on Economic, Social and Cultural Rights. It is widely regarded as the fundamental human rights framework in the international community.
The Declaration on Fundamental Principles and Rights at Work refers to freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced or compulsory labour, the effective abolition of child labour and the elimination of discrimination in respect of employment and occupation.
The United Nations Guiding Principles on Business and Human Rights, endorsed by the United Nations Human Rights Council in 2011, are the authoritative global standard for States and business to prevent and address the risk of adverse impact on human rights linked to business activity.

We comply with local laws and regulations wherever we operate. Where national law and international human rights standards differ, we will follow the higher standard; where they are in conflict, we will seek ways to respect internationally recognized human rights to the greatest extent possible.

2. Our Stakeholders and Human Rights

We recognize the importance of understanding our human rights impacts from the perspective of those affected.

We prohibit any form of discrimination based on race, ethnicity, nationality, social status, lineage, sex, disability, health conditions, ideology, faith, sexual orientation, gender identity, occupation or occupational status. We prohibit harassment and are committed to responsible labor practices including the provision of a safe and healthy environment in the workplace as well as ensuring adequate working hours and minimum wage. We also commit ourselves to respecting freedom of association and the right to collective bargaining.

We oppose any form of slavery or forced labor, including human trafficking, and child labor.

We acknowledge and seek to uphold our responsibility to the communities, including indigenous groups, affected by our operations.

3. Our Commitment to Human Rights Due Diligence

We will identify, prevent and mitigate adverse human rights impacts with which we are involved in line with the United Nations Guiding Principles on Business and Human Rights. We will act upon the findings of this due diligence and endeavor to deliver appropriate and effective remedy where we identify that we have caused or contributed to adverse human rights impacts. We also recognize that we may play a role in remediation where adverse impacts are directly linked to our products and services by business relationships. Where it is necessary to prioritize our actions, we will prioritize to address our most severe adverse human rights impacts based on their scale, scope and irremediability.

Kirin Group’s existing inquiry channels may be used to raise concerns related to our business activities. We will continue to work towards establishing effective grievance procedures.
We will provide the training necessary for our executives and employees to have the knowledge and capacity to implement this Policy.

We will regularly and publicly communicate our progress on our efforts to address adverse human rights impacts including through Kirin Holdings Company's website and/or integrated report.

We have benefited from the views of stakeholders in the drafting of this policy. As we move forward on our journey, we will continue to engage with our stakeholders concerning the human rights issues associated with our business and seek to update our practices to respect human rights.

Effective: 9 February 2018

Kirin Holdings Company, Limited
President & Chief Executive Officer

Yoshinori Isozaki

Progress to Date

Year	Outline of Initiatives	View more
2013	Began supporting tea plantations in Sri Lanka to acquire Rainforest Alliance Certification, which covers Human Rights issues such as improving working condition and living conditions for tea pickers.	Tea farms
2015	Selected "Human Rights" as one of the "Group Materiality Matrix (GMM), a set of management issues for sustainable growth”.	Management Issues for Sustainable Growth(Group Materiality Matrix)
2017	Established the “Kirin Group Sustainable Procurement Policy”, which declares that we approve, support, and implement a set of essential values that work to limit the impact of our procurement activities within the Global Compact areas of human rights, labor, the environment, and anti-corruption.	Policy on Sustainable Procurement
2018	Created the “Kirin Group Human Rights Policy”, in accordance with “Guiding Principles on Business and Human Rights”, endorsed by the United Nations Human Rights Council.	Kirin Group's Human Rights Policy
2018	Began carrying out Human Rights due diligence, in accordance with "Guiding Principles on Business and Human Rights", endorsed by the United Nations Human Rights Council, and "Kirin Group Human Rights Policy".	Implementing Human Rights Due Diligence
2020	Based on the exchange of opinions at the Group CSV Committee on "Measures for Human Rights in Supply Chains," launched a Human Rights project with BSR as an external advisor and formulated a medium- and long-term Human Rights strategy.	Establishment and Operation of the Group CSV Committee
2021	Established the Group Human Rights Meeting, chaired by Senior Executive Officer of Personnel and General Affairs, to monitor the progress of the medium- and long-term Human Rights strategy and discuss policies, strategies and plans.	Group Sustainability Meetings on Specific Issues
2021	Established the “Kirin Group Sustainable Supplier Code” —a collection of conditions that suppliers must comply with, based on the “Kirin Group Sustainable Procurement Policy”, in order to meet the demands and expectations of society, while continuing to create a variety of value through its business together with our business partners, suppliers.	Policy on Sustainable Procurement
2022	Joined Sedex to strengthen risk management for human rights and environmental issues in the global supply chain.	Activities to Promote Sustainable Procurement

Governance

The Kirin Group has established a cross-Group meeting body dedicated to human rights issues under the umbrella of the Group CSV Committee in order to promote responses to human rights issues (the Group Human Rights Meeting, chaired by the director in charge of human resources and general affairs strategy, is held twice a year). Discussions at the Group Human Rights Council are reported to the Group CSV Committee, and then submitted to the Kirin Holdings Group Management Strategy Committee and the Board of Directors for consideration and reflection in the Group's overall strategy. At the same time, the Board of Directors oversees the Group's policies and action plans for addressing human rights issues.

Human Rights Project

Based on the exchange of opinions on addressing human rights in the supply chain at the Group CSV Committee in FY2020, we launched a human rights project consisting of relevant departments and external advisors with the aim of promoting human rights initiatives in the Kirin Group. Through the project, we have formulated a medium- to long-term strategy for human rights up to 2027 and established a human rights promotion system.

Risk management

Summary

The Kirin Group implements a PDCA cycle in a series of processes for human rights for the entire Group, including formulating policies and systems, identifying risks, ascertaining actual conditions, and making improvements and remedies, as well as thorough risk management for human rights issues through disclosure to and dialogue with stakeholders.

Policy and Structure

Human Rights Policy

In order to strengthen our efforts to respect human rights more than ever, the Kirin Group has formulated the Kirin Group Human Rights Policy in compliance with the UN Guiding Principles on Business and Human Rights, a global standard, with advice from outside experts.

Kirin Group Human Rights Policy

Procurement Policy, Supplier Code of Conduct, and Management System

By promoting responses to human rights issues in our supply chain, we aim to fulfill our social responsibility as a corporation and realize sustainable procurement. We have established a procurement policy and supplier code that clearly state our respect for human rights, and through communication with our suppliers, our business partners, we are strengthening our risk management regarding human rights in the supply chain.

Policy on Sustainable Procurement

Supplier briefings/Training sessions

The Kirin Group regularly holds briefings and training sessions for suppliers to deepen their understanding of human rights issues, labor standards, and other social issues that we ask them to comply with in the Supplier Code.

Supplier briefings/training sessions

Risk Identification

Identification of human rights risk issues

After consulting with international guidelines on human rights and external organizations, we identified human rights issues considered important in the alcoholic beverage and beverage industry, and conducted country-specific human rights risk assessments to determine priorities for these issues. As a result, we have determined that addressing human rights issues in the supply chain is a top priority and are systematically implementing human rights due diligence.

Priority

Risk assessment using Sedex

We utilize Sedex's tool, Radar, to assess risk in terms of human rights risk in a country or business domain.

Risk assessment using Sedex

Risk assessment of major agricultural products and processed agricultural products

Following the enactment of the Kirin Group Sustainable Procurement Policy and the Kirin Group Sustainable Supplier Code of Conduct in April 2021, we once again conducted a risk assessment of agricultural products and processed agricultural products procured by the Kirin Group. With advice from Business for Social Responsibility™ (BSR), a specialist external organization, we identified agricultural products and processed agricultural products with high human rights risk and prioritized them on two axes using the Sedex evaluation tool: human rights risk in the country of procurement and the degree of impact on our business. Prioritization was made based on the two axes of human rights risk in the country of procurement and the impact on the business.

Analysis of Risks in Kirin Group Supply Chain and Action Plan for 2022-2024

Assessing any actual or potential adverse human rights impacts

Conduct on-site audits

Through risk assessment, we will identify and evaluate risks, prioritize initiatives, and improve human rights issues in the supply chain through on-site audits and dialogue with local workers.

Human Rights Due Diligence Process

Implementation of supplier surveys and improvement activities

Kirin Holdings regularly conducts supplier questionnaires to check the status of efforts to comply with the Kirin Group Sustainable Supplier Code. The results of the questionnaires are feed back to suppliers and advice for improvement is provided.

Supplier Surveys and Improvement Activities

Improvement accessing to remedy

Internal Hotline

We have established internal and external whistleblower hotlines for human rights issues (including harassment) in the workplace, acts in violation of compliance, and other acts that violate or may violate the "Compliance Policy" and "Compliance Guidelines". We have established various rules, such as the acceptance of anonymous reports, protection of information on whistleblowers and investigative collaborators, and prohibition of disadvantageous treatment of whistleblowers, to create an environment in which employees can report with confidence and a system to conduct fair investigations.

Providing hotlines

Supplier Hotline

We have established a contact point for suppliers to provide specific information in the event that they become aware of any violations (or potential violations) of laws, regulations, the Group Compliance Policy, Compliance Guidelines, Group Anti-Bribery Guidelines, etc., including human rights issues (including harassment), by Kirin Group officers, employees, or others in their procurement transactions with the Kirin Group. The Group has established a contact point for suppliers to provide specific information in the event that they are aware of any violations (or potential violations) of laws and regulations, including human rights issues (including harassment), as well as the Group Compliance Policy, Compliance Guidelines, and Group Anti-Bribery Guidelines. We guarantee that suppliers who provide information will not be treated unfavorably, and we have established an environment and system that enables reporting with peace of mind.

Supplier Hotline

Whistleblower contact for a wide range of stakeholders

The Kirin Group^* is a full member of the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER), a general incorporated association that provides an engagement and remedy platform in compliance with the United Nations Guiding Principles on Business and Human Rights. We accepts complaints and reports related to human rights from all stakeholders in the supply chain through the engagement and remedy platform.
We are committed to resolving essential human rights issues by accepting complaints through a third party, thereby ensuring equality and transparency in the handling of complaints, and responding appropriately to complaints and whistleblowing. We will ensure the anonymity of whistleblowers and the confidentiality of the content of their reports when receiving them.

For whistleblowing through JaCER, information will be disclosed anonymously on JaCER's website on a regular basis.

JaCER whistleblower report form

In this section, Kirin Group refers to following companies.
Kirin Holdings, Koiwai Dairy Products / Kirin Brewery・Kirin Beverage・Mercian・Kyowa Hakko Bio・Kirin Group Logistics and its group companies / Kirin’s Functional companies headquartered in Japan.

Disclosure and dialogue with stakeholders

Dialog

In order to promote initiatives for further respect for human rights based on the "Group Materiality Matrix (GMM)," which was reevaluated at the start of the new medium-term management plan, we held a dialogue on human rights with external experts, focusing on human rights in the supply chain, and exchanged opinions on past initiatives and the future. The dialogue was held to exchange opinions on past and future human rights initiatives.

Stakeholder Engagement

Indicators and Targets