Establishment and Operation of the Group CSV Committee

Group CSV Committee

The Group CSV Committee, chaired by the President & CEO of Kirin Holdings, meets when formulating Group CSV policies and strategies as well as action plans, and when monitoring the implementation of CSV action plans, in order to promote that each Kirin Holdings division and Group company proactively and independently CSV initiatives (to be held three times a year).
The details of the discussions at the Group CSV Committee are, as needed, reported to and discussed by the Group Executive Committee and the Board and reflected in the Group’s overall strategies. The committee chair provides instructions for improvements for CSV initiatives. These instructions are provided to departments at Kirin Holdings and Group companies and increased the effectiveness of CSV policies and strategies determined by the committee. We have established a CSV Staff Meeting  consisting of personnel who has a responsibility for CSV initiatives from each division of Kirin Holdings and the planning divisions of major operating companies to share information and discussions with the aim of promoting CSV initiatives throughout the Group.
We have established a group-wide meeting under the Group CSV committee to strengthen our the initiatives we have studied and implemented to date in order to promote responses to individual sustainability issues (Group Environmental Meeting chaired by the Senior Executive Officer in charge of CSV strategy, Group Human Rights Meeting chaired by the director, Senior Executive Officer in charge of human resources and general affairs strategy, Group Health and Safety Meeting chaired by the director, Senior Executive Officer in charge of human resources and general affairs strategy).

  • figure:Group CSV Committee

Committee Meeting Contents

Report on Meeting for Fiscal 2022

Date: November 14 (Group ESG Meeting)

Meeting Agenda
  • Report on expected achievement of CSV commitments in 2022
  • Report the status of Kirin's ESG evaluation and confirmation of future issues
  • Progress report on Environment
  • Topics report on Social and Governance
Key Opinions
  • Exchange of opinions
    • ESG ratings are being incorporated into corporate evaluations in many cases, and not only financial but also non-financial questions are increasing in dialogue with investors. The era in which we must meet expectations for addressing ESG issues in order to be valued by investors.
    • From the perspective of addressing ESG issues, the shift from an alcohol-centered business portfolio, which is currently underway, is the right direction.
    • In order to be properly evaluated by a wide range of stakeholders, not just investors, for addressing ESG issues
      • It is important to clearly distinguish cases of force majeure (e.g., natural disasters) as to why CSV commitments did not meet targets.
      • Experts, including investors, understand the importance of investing in chemical recycling, but more needs to be done to help consumers understand the importance as well.
    • In the future, simultaneous disclosure of financial and non-financial information will be required, and shortening the period for collecting non-financial information will be a major challenge.

Date:July 7

Meeting Agenda
  • Reports from three meetings under the Group CSV Committee
    • Group Environmental Meeting
    • Group Human Rights Meeting
    • Group Health and Safety Meeting
    Group Sustainability Meetings on Specific Issues
  • Progress report on the initiative for the global leader in CSV
    • R&D Initiatives for Plastic Packaging Containers
  • Exchange of opinions on Non-Financial Information Response Beginning with Climate-Related Information Disclosure
Key Opinions
  • Exchange of opinions
    • Investors are demanding ESG-related explanations even as they are also requesting to achieve financial targets, and companies need to be accountable through disclosure of non-financial information.
    • It is important to continue brushing up in order to become a global leader in CSV.
    • When pursuing non-financial information compliance, it is important to organize the ties between non-financial and finance matters and achieve results not only in terms of value preservation, but also in terms of value creation, such as commercialization and purpose branding.
    • Among disclosure of non-financial information, it is important to have a comparability in the case of climate change and a uniqueness in the case of human capital that is associated with the management strategy of individual companies.
    • In order to expand the disclosure of non-financial information in Securities Reports, which are legally required disclosure documents, it is necessary to improve the literacy of organizations regarding non-financial information.

Report on Meeting for Fiscal 2021

Date:June 10

Meeting Agenda
  • Progress report since the FY2020 Group CSV Committee
    • Addressing human rights in the supply chain
    • Initiatives to achieve the Kirin Group Environmental Vision 2050
  • Lecture from Yoshihito Yamada, President & CEO, OMRON Corporation
    • Corporate management based on OMRON Principles
  • Exchange of opinions on the Group Materiality Matrix for the next medium-term management plan
Key Opinions
  • Exchange of opinions on the Group Materiality Matrix for the next medium-term management plan
  • "Dealing with alcohol-related problems" is of high importance to both stakeholders and our company.
  • Human rights are of high interest to stakeholders, and we need to strengthen our efforts in this area.
    Japanese companies tend to not disclose actions to human rights issue because addressing the issue is a matter of course, but the effort to address human rights issue in the workplace or value chain should be disclosed outside the company.
  • Exchange of opinions on other matters
    • In order to become "a global leader in CSV," which is our long-term management vision, we must increase each employee's empathy with the CSV philosophy and strengthen their capabilities to execute CSV on-site.
    • Promoting CSV in product brands is important not only for customers but also for internal communication.

Report on Meeting for Fiscal 2020

Date:June 3

Meeting Agenda
  • Renewal of Group Materiality Matrix for Second Medium-Term Business Plan
  • Lecture from Kenji Ikemori, Founder and Honorary Senior Advisor of FANCL CORPORATION
  • Discussion on “Addressing Human Rights in the Supply Chain”
  • Status on investigation of measures in line with revisions to Long-Term Environmental Vision, etc.
Key Opinions
Discussion on “Addressing Human Rights in the Supply Chain”
  • Business partners, NGOs, investors, and other stakeholders request that human rights in the supply chain be addressed, which will affect the Company’s reputation.
  • Demand for response increasing from business partners, in particular, and consumer awareness of issue will eventually grow as well.
  • Issues in the supply chain are also management issues for business partners, and therefore it is important to work together.
  • A project team will be assembled to investigate future efforts aimed at putting the Company’s response among the highest levels within the industry.

Report on Meeting for Fiscal 2019

Date:June 10

Meeting Agenda
  • Major developments in fiscal 2018 and future issues
  • Aiming to be “a global leader in CSV” and working toward stronger management resilience
    • Addressing ESG evaluations
    • Discussion on TCFD(Task Force on Climate-related Financial Disclosures) scenario analysis and transition plan
  • Lecture from an external proffessional
Key Discussions
Realizing CSV management
  • The Kirin Group’s CSV management efforts are moving forward; however, the level of demand on companies from stakeholders, including consumers, business partners, investors, political factors, and NGOs are increasing.
  • As a company, we need to adopt the mindset of a long journey toward achieving our goals, as opposed to a short-term perspective or a medium- to long-term perspective simply based on “stacking up achievements.”
  • It is important that we also be aware of regional differences (at economic by country or region) as we proceed with our CSV initiatives. Our goal as the Kirin Group is to be at the top level in each business region.
Efforts to mitigate climate change
  • As our transition strategy on climate change, we are proceeding with initiatives at each operating company and sector to formulate a business continuity plan to increase production and distribution resiliency, promote plastic recycling and alternative materials, and expand the use of renewable energy to further reduce greenhouse gas emissions and establish internal systems that utilize carbon pricing and other methods.
  • It is necessary to recognize the limits of one company to promote these initiatives, and that it is important to work not only within the industry but also with retailer and other non-competing areas.
  • We must view climate change both as a risk and an opportunity.
  • We reflect the results of the scenario analysis in the new long-term environmental vision and GHG emission reduction targets and revise them.

Report on Meeting Held in Fiscal 2018

Date:May 18

Main Agenda Items
  • Status of progress toward CSV Commitment, etc.
  • Renewal of Group materiality matrix
  • Exchange of opinions regarding the next Long-Term Management Vision
  • Lecture from Yoko Ishikura, Professor Emeritus, Hitotsubashi University

Report on Meeting Held in Fiscal 2017

Date:June 8

Main Agenda Items
  • Lecture from Minoru Matsubara, Chief Manager, Asset
    Management Business Planning Division, Resona Bank, Limited
  • Status of progress toward CSV Commitment, etc.
  • Discussion on shared Commitment topics

Report on Meeting Held in Fiscal 2016

June 8

Main Agenda Items
  • Lecture from Toshio Arima, Representative Director, Global
    Compact Network Japan
  • Selection of major Group CSV themes over the medium to long term
  • Discussion on approach to major themes going forward