Vision / Policies / Structure

Kirin Group's Environmental Policy

Basic policy

The Kirin Group places sustainable business growth based on solving social issues at the core of its management, and enriches society and the Earth for future generations through positive impact on people and the environment.

Activity policy

In all aspects of our business activities, we have set ambitious targets related to solving social issues connected to the environment as one of the most material management issues, and we will focus on achieving these targets under the leadership of top management and through the participation of all employees.

1.
Compliance
- We will comply with all environmental laws, regulations, and agreements as well as voluntary control standards related to our business activities with high moral values.
2.
Technological development
- In addition to creating and adopting innovative technologies and methods, we will work with our customers and broad stakeholders to resolve issues on a sustainable basis.
3.
Environmental management
- We will develop an environmental management system and make continuous improvements in accordance with our business strategy.
4.
Human resources development
- We will continuously develop human resources who can create and implement a positive impact on the environment and society as a whole, beyond our own company and its framework.
5.
Communication
- We will disseminate highly transparent and reliable information and broadly promote communication with stakeholders.

Revised on October 2021

The Kirin Group Plastic Policy

1.

Promoting recycling of PET bottles. The plastic containers, packaging, and other materials provided by the Kirin Group are mostly PET used for beverage bottles and the Kirin Group has used recycled resin for a part of them. The Kirin Group will promote the recycling of PET bottles by aiming to increase this recycled plastic ratio to 50% by 2027.The recycling of PET bottles cannot be promoted without an efficient method for collecting high-quality used PET bottles. At the Kirin Group, we will proactively work with national and local governments, and industry organizations to create an efficient collection and reuse system for high-quality used PET bottles.
2.
Efforts to reduce single-use plastic* and replace it with other materials. Most plastic waste is comprised of what is referred to as single-use plastic. The Kirin Group will make efforts to reduce the single-use plastic provided by its group companies and replace it with other materials.
- *
  
  Disposable plastic that is used only and not intended for reuse.
3.

Improving sustainability of raw materials for PET bottle. At the Kirin Group, we have made continuous efforts to reduce the weight of our PET bottles from the standpoint of reducing our environmental impact. We will keep striving toward even lighter bottles in the future. In addition, to improve the sustainability of raw materials for PET bottle, we will study the introduction of PET bottle materials derived from inedible plants to reduce our dependence on petroleum resources.

In addition to the above measures, we will proactively participate in educational programs to promote plastic recycling, coastal cleanup activities, and other programs. Kirin Beverage Company, Limited also supports the Soft Drink Business Plastic Resource Reclamation Declaration 2018 announced last year by the Japan Soft Drink Association, and will take proactive measures to realize the "100% Effective Utilization of PET Bottles by 2030" plan put forth by the industry.

Established on February 2019

Policies on biological resources

Kirin Group's Declaration of Support for Biodiversity Conservation

Kirin Group relies on the bounty of nature to make products. We utilize the power and wisdom nature has to offer in conducting its business activities. Because of that, we recognize the importance of conserving biodiversity as business challenges. Kirin Group actively pursues a broad range of activities to protect biodiversity in order to continue offering new joys of "food and well-being" into the future.

1.

Kirin Group promotes sustainable use of resources while ensuring conservation of biodiversity
The Kirin Group is committed to sustainable use of resources while taking biodiversity into consideration in all of its business activities so that all people around the world may continue to enjoy the bounty of nature.
2.

Kirin Group makes effective use of its technologies
As a company that offers new joys of "food and well-being," the Kirin Group makes effective use of its technologies when conducting business activities to contribute to the sustainable use of resources and protection of biodiversity.
3.

Kirin Group works in cooperation with stakeholders
Kirin Group adds a biodiversity perspective to the environmental protection activities which have continuously been engaged in and works in cooperation with customers and local partners to continue conserving biodiversity.
4.

Kirin Group properly complies with treaties and laws
Kirin Group complies with treaties, laws and regulations concerning biodiversity and strives to help people enjoy the blessings of biodiversity worldwide.

Kirin Group's Guidelines on Sustainable Sourcing of Biological Resources

Purpose: The purpose of the Guidelines is to present the fundamental principles of the Group so that it can continue to ensure the "sustainable sourcing of biological resources"based on the Kirin Group's Declaration of Support for Biodiversity Conservation.
Applicable scope: The Guidelines apply to biological resources procured by the Kirin Group's operating companies in Japan for which the Group has specified that there is risk of illegal deforestation, environmental destruction and such like based on risk assessment performed.
Guidelines on Sustainable Sourcing of Biological Resources: Kirin Group procures applicable biological resources based on the following principles.

1.

Resources that the Group has confirmed;not to derive from a plantation developed illegally, to have been produced through appropriate procedures in compliance with the laws and regulations of the areas where the raw material is produced.

2.

Resources deriving from plantations, forests, etc. that have been certified by credible third parties.

3.

Resources that have not been produced by entities which are considered to be involved in environmental destructions.*1
Implementation and operation: The Kirin Group regularly revises these Guidelines based on biodiversity risk assessments for products sourced, taking into account the issues associated with biological resources and the fact that sourcing conditions differ for each region. In addition, the Kirin Group also separately formulates action plans and implements them in phases, taking into consideration the unique characteristics of each country or region. When implementing initiatives, the Kirin Group cooperates with suppliers, specialists, NGOs, and other stakeholders, and adopts a long-term perspective that considers support to enable people working in areas producing raw materials to transition to means of production that take into account the sustainability of biological resources.
Information disclosure and external communication: The Kirin Group is committed to maintaining transparency and disclosing the progress of its initiatives through sustainability reports, online, and other methods. At the same time, the Kirin Group also utilizes appropriate external communication to promote understanding among customers, partners, and society, and thereby increase the use of sustainable biological resources.

*1

Reference is currently made to the FSC's Policy for the Association of Organization with FSC.

Kirin Group Action Plan for the Sustainable Use of Biological Resources

In order to achieve both global and business sustainability in all raw materials we handle, we will utilize the inherent regenerative power of the natural environment, including land and sea areas, and the balance of ecosystems, and work to conserve and enhance them, and aim for sustainable use of biological resources that does not involve deforestation.

By promoting the production and procurement of certified products and raw materials through regenerative agriculture*1, we will support the reduction of greenhouse gas emissions, the restoration and conservation of biodiversity and the efficient and sustainable use of water resources in an integrated manner, ensure the traceability of raw materials from production to use and increase transparency and reliability, while supporting our suppliers to become economically independent and produce on a long-term basis.

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*2.

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*3, by 2030, Kirin Holdings will 100% use paper that has been confirmed to be from sustainable sources*4*5.

For other paper, Kirin Holdings will use paper that has been confirmed to take sustainability into consideration or recycled paper*6.
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*7certification.

For palm oil used as a primary raw material, Kirin Holdings will use RSPO Credits*8. By 2030, Kirin Holdings will begin sourcing RSPO-certified palm oil*9, 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*10from 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's regenerative agriculture is a form of agriculture that contributes to climate change mitigation by restoring soil health and enhancing its carbon sequestration effect, as well as restoring and maintaining biodiversity through the efficient and sustainable use of water resources. Kirin will promote regenerative agriculture according to the characteristics of each agricultural raw material.
*2

Kirin Holdings will set specific targets in Kirin Holdings' CSV commitment.
*3

Excludes limited-edition products, small-lot product varieties, special shapes, imported products, products regulated by law, etc.
*4

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.
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*5

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.
*6

This will apply to the operating companies listed in *5, as well as the following operating companies: KIRIN GROUP LOGISTICS CO.,LTD. Kirin City Co., Ltd., INTERFOOD SHAREHOLDING COMPANY, and Four Roses Distillery, LLC. Each company will set specific targets.
*7

Roundtable on Sustainable Palm Oil.
*8

Book and Claim model
*9

Complying with one of the following: IP (Identity Preserved), SG (Segregation), or MB (Mass Balance)
*10

Soybean protein

Established on February 2013

Revised on June 2025

Kirin Group’s Principles of Managing Access to Genetic Resources

1.

The Group shall respect international agreements concerning biodiversity.
2.

Access to genetic resources shall be based on prior informed consent of the country providing such resources, and no genetic resources whose backgrounds are unknown shall be carried in or used.
3.

Use of genetic resources, including fair and equitable sharing of the benefits arising out of their utilization, shall be properly managed in accordance with international treaties.

Consideration of the Environment in Product Development

Guidelines for Environmentally Considerate Design of Packaging and Containers

1.

Purpose
In order to sustainably pass on the Earth’s abundant blessings and environment to future generations and continuously provide value to customers and society as a whole, we contribute to the construction of a resource recycling system through the development and spread of sustainable packaging by complying with laws and regulations as well as the "Guidelines for Environmentally Considerate Packaging and Container Design," and by promoting waste reduction and recycling in business activities.
2.
Basic Approach to Packaging Development, Design, and Adoption
- (1)
  
  In development and design, assuming quality preservation and safety and hygiene of contents, safety of the packaging itself, and proper labeling of product information, we consider environmental suitability, customer usability, transportation efficiency, and economic efficiency.
- (2)
  
  In adoption, we further select packaging according to the customer's purchasing and consumption patterns, sales formats, and characteristics of the contents.
3.
Environmental Considerations in Packaging Development, Design, and Adoption
- (1)
  
  Reduce environmental impacts over the entire life cycle of packaging—from raw material extraction to disposal or recycling—and minimize effects on the natural environment.
- (2)
  
  To contribute to effective use of resources and realization of a recycling-oriented society, use materials that are easy to recycle or dispose of with low environmental impact, and materials made from renewable resources.
- (3)
  
  To contribute to the realization of a decarbonized society, select materials with low energy consumption and greenhouse gas emissions during packaging manufacturing and product transportation processes.
- (4)
  
  Select materials that prevent environmental pollution during waste disposal.
- (5)
  
  Promote 3R (Reduce, Reuse, Recycle) + Renewable (sustainable resources) as described in the following section.
4.
Guideline for Promoting 3R (Reduce, Reuse, Recycle) + Renewable (Sustainable Resources)
- (1)
  Reduce
  - ➀
    
    Strive to reduce weight of packaging and promotional tools, reducing material usage.
  - ➁
    
    When recycling or disposing, reduce volume as much as possible by folding, crushing, etc.
  - ➂
    
    Promote transition to simple packaging and omission of individual and outer packaging, ensuring appropriate packaging.
- (2)
  Reuse
  - ➀
    
    Strive to maximize the number of times reuse and refilling are possible.
  - ➁
    
    Strive to minimize environmental load associated with reuse and refilling.
- (3)
  Recycle
  - ➀
    
    Strive to increase recycled use (horizontal recycling).
  - ➁
    
    Use single materials wherever possible; when using two or more materials, ensure they can be easily separated.
  - ➂
    
    Use materials with a high ratio of recycled materials and recycled products.
  - ➃
    
    Design and specify to facilitate separate disposal, collection, and sorting.
- (4)
  Sustainable Resources (Renewable)
  - ➀
    
    Strive to use biomass-derived materials with guaranteed sustainability.

Revised July 15, 2025

Carbon Credit Policy

March 2025

Kirin Group Carbon Credit Policy

1．Introduction

The Kirin Group, under its Environmental Vision 2050, is engaged in “Realize Net Zero GHG Emissions from the Entire Value Chain” and “Lead to Build a Decarbonized Society,” as the main pillars in pursuit of a society that has overcome climate change.

Under the overall policy for achieving climate change targets as the top priority issue, the Kirin Group is working to reduce GHG emissions as much as possible in Scopes 1, 2 and 3 in accordance with SBTi guidance with the aim of realizing net zero GHG emissions from the entire value chain by 2050. In addition to our policy, carbon credits can be utilized as a way of offsetting residual emissions. Furthermore, in recognition that carbon credits can be effective as a means to restore the environment and help communities develop in a sustainable manner, depending on their types, we regard carbon credits as also a tool that can contribute to nature positive, to which we give as much importance in the Environmental Vision as we do to overcoming climate change. Taking a multifaceted view of diversity and change in environmental and social issues, the Kirin Group is focused on not only reducing emissions from its own value chain but also contributing to building a decarbonized society on a global scale.

2．Carbon Credit Policy

Overall policy

The Kirin Group attaches importance to the impact on biodiversity and co-benefits for communities, based on the confirmation of the high level of quality concerning carbon credits that the Group procures and generates. Through checklists, the Group confirms that the carbon credits are not causing a negative impact to society and the environment and possess high integrity, transparency, and sustainability.

Criteria for selecting credits

Check carbon credits that the Kirin Group procures and creates, in accordance with the following standards.

Project category: Preferentially select nature-based^* carbon credits with the relation with our business activity in mind.
Additionality: Meaning the reduction and absorption of GHG emissions that would not have occurred in the absence of the project, the “additionality” of carbon credits is a notion that guarantees that a certain carbon credit is what promotes new actions that actually help mitigate global warming. We will verify additionality from various points of view and utilize it for deciding on credit selection.
Permanence: The “permanence” of carbon credits means that the reduction and absorption of GHG emissions that were realized by carbon credits will be maintained for a long time. We will scrutinize the monitoring system as well in addition to various points of view such as "technical permanence" and "evaluation and management of leakage."
Transparency: We will confirm in advance whether data related to the credits and project are sufficiently disclosed and whether stakeholders are involved appropriately.
Integrity: We will scrutinize the integrity of credits through the verifiability of data on the credits and the project that generated them, and the availability of third-party verification.
Governance: We will confirm the management system for credit generation and how the risk management of the project is conducted.
No double-counting: We will scrutinize whether the double counting of credits is avoided on each occasion.
Co-benefits: As stated in "Kirin Group’s Environmental Vision 2050," we will pay attention to trade-offs in environmental fields, including climate change and biological resources, and between environmental and social issues, and we will aim at selecting projects that enable such fields and issues to mutually give positive impacts in various manners.
Vintage: The "vintage" of carbon credits is the concept of when a year will come that the reduction effect by the credits will make a contribution. We will confirm the issuance year of credits on each occasion and utilize credits within five years of the issuance, in principle.
Area: One of the criteria for deciding on the selection of credits is whether the locations of the credit-generation project are clear and whether such locations are related to our business activity.

Enhancement of effectiveness in credit selection and evaluation (stakeholder engagement)

In credits, information asymmetry exists on the generating and purchasing sides, and cases can also be assumed that the purchasing company has difficulty in obtaining access to information. Therefore, in evaluating credits following the above criteria, we regard on-site inspections and dialog with stakeholders as important. Specifically, our policy is to take the following actions.

On-site inspection: In addition to the above document-based checks, we will conduct on-site inspections of projects whenever possible. We believe that such confirmation of the substantiality of projects will further enhance the significance of document-based scrutiny and also contribute to mitigating various risks.
Interviews with developers^*: In addition to on-site inspections, we will conduct interviews with developers to the extent possible and perform verification that digs deeper into items scrutinized by documents.

Policy for revising and upgrading criteria

We will revise and upgrade the criteria that were formulated this time in light of global trends in discourse on carbon credits and our company’s values.

3．Conclusion

The Kirin Group will further step up its efforts to realize a sustainable future. We will verify the effectiveness of carbon credits as one of the solutions to the issue of building a decarbonized society, contribute to global reductions of GHG emissions through appropriate decisions, and drive symbiosis with nature.

*

Nature-based: This refers to solutions that originate from nature, such as forestry, dairy and livestock farming, biochar, carbon farming. Credit methodologies are subject to revisions and additions as scientific knowledge accumulates.
*

Developer: This refers to a company or an organization that launches a project and sells it as carbon credits.

*

The Kirin Group performs LCA (Life Cycle Assessment) on major containers for alcoholic beverages and non-alcoholic beverages whenever necessary. We also take into account the product characteristics, unit of purchase by customer at each purchase, major sales store format, projection on collection of empty containers and other relevant factors on a comprehensive basis to select containers