Kirin Group Action Plan for the Sustainable Use of Biological Resources Revised

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October 19, 2021

Kirin Holdings Company, Limited

●Added target items and expanded target business regions
●Expansion of 100% usage of FSC®-certified paper, Rainforest Alliance Certification, usage of sustainable palm oil and soybeans
●Plan in place since 2013 features business-specific biodiversity sustainability measures and targets

TOKYO, Tuesday October19, 2021 - Kirin Holdings Company, Limited (Kirin Holdings ), has revised its Kirin Group Action Plan for the Sustainable Use of Biological Resources (2021 Revised Edition) in July. Kirin Holdings first introduced the business-specific sustainability plan (listed below) in 2013 based on risk assessment of agricultural products. Kirin Holdings has added target items and expanded target business regions to further accelerate Kirin Holdings’ response.

Examples of the revisions include expansion of usage of FSC® certified paper, expansion of sustainable farming measures through the Rainforest Alliance Certification system, and adoption of sustainable palm oil and soybeans.

Expanding FSC®-certified Ecopaper Usage Group-wide

At the end of 2020, Kirin Holdings achieved 100% use of FSC®-certified paper in all paper containers used by Kirin Holdings’ beverage business in Japan. The usage of 100% use of FSC®-certified paper will be expanded to throughout the Kirin Group companies, including overseas subsidiaries.

Rainforest Alliance Certification For Sustainable Farming.

Kirin Holdings has been supporting farms to get Rainforest Alliance Certification to adopt sustainable farming practices. 93 Sri Lankan tea farms, or approximately 30% of all major tea farms in the country have obtained this Certification with Kirin's support. Kirin Holdings will expand this effort to Vietnamese coffee farms.

Adoption Of Sustainable Palm Oil And Soybeans

Kirin Holdings will enhance its usage of sustainable ingredients in its products through ensuring usage of 100% Roundtable on Sustainable Palm Oil (RSPO) certified palm oil, and increasing the procurement of soybeans from sustainable farms.

Yoshinori Isozaki, President and CEO commented on the background and thinking behind the revision: "In 2010, the Kirin Group established the Kirin Group Biodiversity Conservation Committee to promote the conservation of biodiversity as we are a company that operates business based on ‘natural capital.’

Since the announcement of the Declaration, Kirin Holdings has been quick to recognize and address environmental and human rights issues related to agricultural products, which are mainly raw materials in the upstream of the value chain. At COP15 as well as at the Convention on Biological Diversity, we will continue to take a leadership role in working toward a society that uses sustainable biological resources.”

Kirin Group Action Plan for the Sustainable Use of Biological Resources(2021 Revised Edition)

Black Tea

Kirin Holdings aims to enhance sustainability of tea farms in Sri Lanka, the main raw material production area from which Kirin Beverage Company, Limited sources tea leaves.

・ Kirin Holdings will support for farms to get Rainforest Alliance Certification by Sri Lankan tea farms that supply tea leaves, and thus increase the number of farms with certification*1.
・Kirin Holdings will enhance awareness through year-round products featuring the Rainforest Alliance Certified label.
・ Kirin Holdings will conserve water sources at Sri Lankan tea farms.

Paper and Printed Materials

Kirin Holdings will maintain 100% usage of FSC-certified paper or recycled paper, which it achieved at Kirin Holdings Company, Limited, Kirin Brewery Company, Limited, Kirin Beverage Company, Limited, and Mercian Corporation in 2020, and Kirin Holdings will also expand this initiative to cover all Group companies, including those outside of Japan.

・ For paper containers and packaging*2, by 2030, Kirin Holdings will 100% use paper that has been confirmed to be from sustainable sources*3*4.
・For other paper, Kirin Holdings will use paper that has been confirmed to take sustainability into consideration or recycled paper*5.

Palm Oil

In Kirin Holdings’ domestic businesses, Kirin Holdings will ensure that 100% of transactions for palm oil used as a primary or secondary raw materials have RSPO*6 certification.

・ For palm oil used as a primary raw material, Kirin Holdings will use RSPO Credits*7. By 2030, Kirin Holdings will begin sourcing RSPO-certified palm oil*8, and gradually transition palm oil procurement.
・For palm oil used as a secondary raw material, Kirin Holdings will use RSPO Credits. Kirin Holdings will work together with the RSPO, suppliers, NGOs, and various stakeholders to ensure that Kirin Holdings’ suppliers are able to use RSPO-certified palm oil as a raw material.

Coffee

Kirin Holdings aims to enhance sustainability of coffee farms in Vietnam, the main production area from which Kirin Beverage Company, Limited sources coffee beans.

・ Kirin Holdings will support to get Rainforest Alliance Certification by Vietnamese coffee farms, and thus increase the number of farms with certification.
・Kirin Holdings will enhance the ability of Vietnamese coffee farms to conserve water.

Soybeans

Kirin Holdings will use soybeans and processed goods*9 from highly sustainable farms at Kirin Brewery Company, Limited.

・ Kirin Holdings will determine farms from which it will source soybeans.
・ Kirin Holdings will confirm the sustainability of the soybean farms that it has determined.

FSC® C137754

*1: Kirin Holdings will set specific targets in Kirin Holdings’ CSV commitment
*2: Excludes limited-edition products, small-lot product varieties, special shapes, imported products, products regulated by law, etc.
*3: Kirin Holdings will prioritize FSC-certified paper. When the use of FSC-certified paper is cannot be used, Kirin Holdings will use paper complying with the following standards, in order: paper made with wood from FSC-managed forests (Controlled Wood), PEFC certification (for regions where sustainability has been confirmed only), and the Kirin Group Guidelines for the Procurement of Sustainable Biological Resources. When using paper that has not been third-party certified, etc., Kirin Holdings will confirm that sustainability has been taken into consideration through supplier surveys, etc.
*4: This will apply to the following operating companies: Kirin Holdings Company, Limited, Kirin Brewery Company, Limited, Kirin Beverage Company, Limited, Mercian Corporation, Kyowa Kirin Co., Ltd., KYOWA HAKKO BIO CO., LTD., Lion Pty Limited, and Koiwai Dairy Products CO., LTD. Kirin Holdings will determine the applicable container types, target year for achievement, etc., in Kirin Holdings’ CSV commitment.
*5: This will apply to the operating companies listed in *4, as well as the following operating companies: KIRIN GROUP LOGISTICS CO.,LTD. Kirin City Co., Ltd., INTERFOOD SHAREHOLDING COMPANY, Myanmar Brewery Ltd., and Four Roses Distillery, LLC. Each company will set specific targets.
*6: Roundtable on Sustainable Palm Oil. (https://rspo.org/)
*7: Book and Claim model
*8: Complying with one of the following: IP (Identity Preserved), SG (Segregation), or MB (Mass Balance)
*9: Soybean protein

Established on February 2013
Revised on July 2021

About Kirin Holdings

Kirin Holdings Company, Limited is an international company that operates in the Food & Beverages domain (Food & Beverages businesses), Pharmaceuticals domain (Pharmaceuticals businesses), and Health Science domain (Health Science business), both in Japan and across the globe.

Kirin Holdings can trace its roots to Japan Brewery which was established in 1885. Japan Brewery became Kirin Brewery in 1907. Since then, the company expanded its business with fermentation and biotechnology as its core technologies, and entered the pharmaceutical business in the 1980s, all of which continue to be global growth centers. In 2007, Kirin Holdings was established as a pure holding company and is currently focusing on boosting its Health Science domain.

Under the Kirin Group Vision 2027 (KV 2027), a long-term management plan launched in 2019, the Kirin Group aims to become “A global leader in CSV*, creating value across our world of Food & Beverages to Pharmaceuticals.” Going forward, the Kirin Group will continue to leverage its strengths to create both social and economic value through its businesses, with the aim of achieving sustainable growth in corporate value.

* Creating Shared Value: combined added value for consumers as well as for society at large.

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