Holistic Environmental Management Information Disclosure Based on the TCFD Framework, TNFD Framework Draft, etc.

“Holistic Environmental Management Information Disclosure Based on the TCFD Framework, TNFD Framework Draft, etc” is disclosed in the Environmental Report in 2023.

This is also disclosed in the integrated report.


The following is an excerpt from the disclosure in the Environmental Report 2023, “Holistic Environmental Management Information Disclosure Based on the TCFD Framework, TNFD Framework Draft, etc”. For more information, see Environmental Report 2023.

In this part (pages from 15 to 37), we explain how the Kirin Group assesses and analyzes the impacts of climate change and issues related to natural capital and containers and packaging, and promotes transition strategies such as mitigation and adaptation, in order to increase our resilience to climate change, use natural capital appropriately and continuously, and contribute to building a circular economy. In addition to information based on the TCFD final recommendations, we also provide a holistic explanation where possible, incorporating the results of our response to the TNFD framework, including our globally-pioneering trial of the LEAP approach in 2022 and our participation in the pilot test for TNFD scenario analysis.

When preparing the information in this section, we have complied with the TCFD final recommendations published in June 2018 and the new TCFD guidance published in October 2021, and we have also referred to the beta versions 0.1 to 0.4 of the TNFD framework, which were disclosed in stages between March 2022 and March 2023, and to the IFRS S1 and S2 standards formally published on June 26, 2023 by the International Sustainability Standards Board (ISSB) in parts.


For more information on the supervisory and executive structures as follows.

Skill map of senior management is shown as follows.

Refer to the following for information about the relationship between executive remuneration and non-financial indicators, which are one of the main management indicators in our Medium-Term Business Plan.

Our 2022-2024 CSV Commitments, which is incorporated into the management plans of the Kirin Group and operating companies, is shown below.

The supervisory and executive structures and their roles and responsibilities, members, frequency of meetings and performance are as follows.

Status of Governance for Environmental Issues

  • Status of Governance for Environmental Issues

  1. Kirin Brewery technical manager. Other affiliations not specified belong to Kirin Holdings.

Risk Management

Senior management develops measures to address significant physical and transitional risks related to climate change detected in scenario analysis into mitigation and adaptation strategies, as described in the section on governance, and manages targets under the supervision of the Board. The same applies to overall risks related to sustainability, including the degree of dependence and impact on natural capital and the creation of a circular
economy. we describe our monitoring system for important risks and our response to the acute risks posed by climate change as follows.

The risk management system and PDCA cycle are as follows.

  • Risk management system

  • Risk management PDCA cycle


The strategy part details financial impact assessments, scenario analysis for climate change, and resilience assessments of risks and opportunities related to natural capital.

Results of impact assessment

Since 2017, we have continuously conducted climate change scenario analysis, which has improved our level of understanding and strategies related to risks and opportunities posed by climate change. In addition to our own production sites and breweries, we analyze the financial impact of factors such as yields of agricultural products, procurement costs, and carbon pricing.

The financial impact relating to natural capital and containers and packaging are estimated based on the following approach, taking into consideration factors such as dependency and impact on nature.

There are areas where climate change and natural capital can not be assessed separately because they are interrelated, and the beta version of the TNFD framework indicates that the results of climate change scenario analysis can be used as natural capital scenario analysis in some areas. Taking into consideration that fact that there are currently almost no agreed-upon scenarios for natural capital, in our disclosure of estimates of the impact of floods and droughts, which we were already disclosing, we have repositioned these as a physical risk for both climate change and natural capital. We calculated the negative impact of PET bottles on natural capital and disclosed it as a risk related to natural capital and packaging. Since the methodologies for calculating the financial impact of risks and opportunities related to natural capital is still a developing area, we have disclosed the impacts that can be ascertained at present.
The estimated impacts on finance are as follows.

Financial impact

  1. Physical risks and transition risks of climate change are calculated using procurement volumes and costs for 2022.
  2. Indicates the financial impact of risks and opportunities recognized as material. We have assessed the financial impact on agricultural products of declines in yields caused by climate change and carbon pricing using the middle 50th percentile of the distribution of forecast data for price fluctuations. Owing to high levels of uncertainty, estimates of carbon pricing in the 1.5°C scenario are presented as reference data. Figures for carbon pricing indicate cases when GHG emissions are not reduced.
  3. Reduction of approximately 40 million yen from the reduction in chemical fertilizers, and addition of approximately 150 million yen from biofertilizers and personnel expenses for fertilizer appliers. Estimated based on interviews with local coffee farms.

The main results of analysis of the impact of climate change on assets are as follows.

  • Impact on GHG emissions from the divestment

Impact on GHG emissions from the divestment

Assets exposed to risk

Related assets

  • The residual value of related facilities refers to the total residual value of boilers held by Kirin Brewery, Kirin Beverage, and Mercian, and the residual value of trucks held by group logistics companies. We have judged that the possibility that laws and regulations or social trends associated with climate change will be a primary factor forcing us to renew these boilers and trucks before the end of their service life is low.

Water usage at brewing and manufacturing sites in areas with water stress

Resilience Assessment

For more information on climate change scenario analysis and resilience assessment, LEAP approach to natural capital risk and opportunity analysis, and natural capital scenario analysis, please see below.

Scenario analysis related to climate change

Our scenario analysis on climate change and resilience assessments are as follows.

Water risk and stress at production sites

  • Water risk and stress at production sites

Impact of climate change on yields of key agricultural products (Forecast for 2050 unless otherwise specified)

  • Impact of climate change on yields of key agricultural products (Forecast for 2050 unless otherwise specified)

Financial impact in 2050

Analysis of Risks and Opportunities Related to Natural Capital

We found that there are a gap between the result of analysis with ENCORE and accumulated knowledge through many years of support for obtaining certification and stakeholder engagements.
We have conducted that it is practical and effective for us to first conduct analysis based on the LEAP approach for events for which we fully understand the "location" and "dependency" of the target of analysis as a result of our efforts over the years, and for which we can adopt an approach based on communication with many stakeholders, and then subsequently expand the target of our analysis after obtaining sufficient knowledge.
This time, we conducted an assessment using the LEAP approach for tea farms in Sri Lanka, for which we have a high level of regional dependence as an area producing raw materials.

In the L (Locate) phase of the LEAP approach, we selected 10 farms in Sri Lanka that are close to natural parks and, checked their latitude and longitude, and used the Global Map of Ecoregions and IUCN Global Ecosystem Typology to develop an understanding of the ecosystems around these tea farms.
The targeted tea farms and the result of analysis and assessments are as follows.

Results of analysis and asesses of 10 targeted farms.

In the Evaluate (E) phase, we used various papers researched and published in Sri Lanka to identify relevant environmental assets*1 and ecosystem services, and thus developed an understanding of our dependency and impact.
The results show that there are many items in which we can contribute to mitigating the impact on natural capital through the Kirin Group's training to support the acquisition of sustainable farming certification, which has been ongoing since 2013. It appears we can therefore say that these measures are effective in solving issues related to natural capital in Sri Lanka.

Risks and opportunities related to “dependence”

Risks and opportunities related to "impact"

  • Activities where it can be judged that the training conducted in support of Rainforest Alliance certification at tea farms in Sri Lanka is contributing to reducing risks and expanding opportunities identified in the assess phase of LEAP.

Natural Capital Scenario Analysis

The purpose of the TNFD's request to the Kirin Group to participate in the pilot test was to verify the practicality of this paper. In response, the Kirin Group held a scenario analysis workshop in March 2023 at our New Belgium Brewing, a craft brewery in Colorado, U.S., where water stress is very high.
Detailed information concerning the results of this scenario analysis is provided in the Environmental report 2023 and the beta v0.4 of the TNFD framework, published at the end of March 2023.

  • TNFD Beta v0.4 Annex 4.10 Additional guidance on scenario analysis

  • Scenario analysis axes proposed by the TNFD and results of analysis

  • Scenario analysis axes proposed by the TNFD and results of analysis

Approach to Environmental Issues

At the heart of the Kirin Group‘s strategy for solving environmental issues is our holistic approach, in which we emphasize the importance of holistic solutions to the four key themes of our environmental vision: “Biological Resources,” “Water Resources,” “Containers and Packaging,” and “Climate Change,” rather than individual responses.
For more information on our approach to environmental challenges that reflect resilience assessments, see as follows.

The climate change strategies and progress, and AR3T-compliant disclosures for natural capital are as follows.

Climate change strategies and progress

AR3T-compliant disclosure related to natural capital

Transition Plans

The transition planning part is divided into chapters on "Climate Change," "Natural Capital," and "Containers and Packaging," but because of the interconnectedness of each issue, each chapter refers not only to individual transition plans but also to related content.

Transition plans related to climate change

The roadmap to net zero, reduction of Scope1 and Scope2 emissions, and the investment are as follows.
The details of the transition plan for natural capital and containers and packaging can be found in the Environmental Plan 2023.

Roadmap to net zero

  • Roadmap to net zero

Reduction of Scope1 and Scope2 emissions

  • Reduction of Scope 1 and Scope 2 emissions


  • Investment

Metrics and Targets

For more information on metrics and targets, see as follows.

Metrics and Targets


Investment plans and fundraising

  • Total emissions targets for Scope 1 and Scope 2、Scope 3 emissions target

  • In December 2020, we upgraded our previous "SBT for 2°C" target, and received approval for our "SBT for 1.5°C" target.
  • GHG emissions across the whole value chain, Progress towards medium-term GHG emissions reduction targets Total emissions for Scope 1 and Scope 2, Scope 3 emissions,  Progress toward the target for increased use of renewable energy Ratio of renewable energy in plant purchased electric power

  • GHG emissions across the whole value chain, Progress towards medium-term GHG emissions reduction targets Total emissions for Scope 1 and Scope 2, Scope 3 emissions,  Progress toward the target for increased use of renewable energy Ratio of renewable energy in plant purchased electric power

  • Since 2019, we have excluded Lion's non-alcoholic beverages business from Scope 3 emissions, and we have changed to the LCA database (IDEA) offered by the National Institute of Advanced Industrial Science and Technology (AIST) for emissions per unit of production.


Progress on medium-term GHG emissions reduction target approved by SBT (2022)
  • Scope1+2,Scope3

Impact of the circular economy (2022)
  • Reduction in impact

  • Reduction in impact

Natural capital indicators (2022)
  • Direct, Value chain upstream, Value chain downstream

  • Direct, Value chain upstream, Value chain downstream

  1. Metrics of natural capital are disclosed on a trial basis based on the draft core metrics and the draft metrics for the agriculture and food sectors presented in the TNFD Framework beta version v0.4, and metrics that are currently known or considered relevant.
  2. Resource reduction is calculated by multiplying the difference in container weight between 1990 and 2022 by the number of containers used in the reporting year (for bottles, the number of new bottles put in). Land use area is calculated using the 2014 ESCHER. Other information is reproduced from the Progress Report and ESG Data Book.