Diversity and Inclusion, Culture for Innovation

May 31, 2024

Kirin Group’s Basic Philosophy on Human Capital Management

Kirin Group’s Basic Philosophy on Human Capital Management, “Respect for Humanity,” expresses our belief in the boundless potential of humans. It is the foundation for our human capital strategy and aligns with the brewing philosophy of Kirin Brewery Company, Limited: “Reverence for Life.” We will provide an environment in which each and every employee can take the challenge of creating new value, work to their fullest, and continue to grow through their work.

The goal of the Kirin Group’s unique human capital strategy: “A company where human capital grows and that wins through human capital”

The Kirin Group values human capital as a source of value creation and our competitive edge, and by investing in them, we aim to be “a company where human capital grows and that wins through human capital.”

Our management strategies define the direction we take in terms of our human capital strategies. At the same time, the capabilities of our human capital are a crucial element when it comes to formulating future management strategies and serve to expand their potential. The keys to this expansion are expertise and diversity. We will develop human capital characterized by both diversity and expertise by providing an environment where employees can enhance their individual expertise and accumulate a variety of business experiences and perspectives through our unique business portfolio, which spans from the Food & Beverages domain to the Health Science and Pharmaceuticals domains. Furthermore, in addition to hiring external human capital and people with disabilities and promoting the active participation of women in the workplace, we will create an environment which fosters an organizational culture that embraces diversity, while increasing the amount of cross-organizational and cross-team creation. By doing this, we will promote CSV management and realize the Group’s sustainable growth and improved corporate value.

Recognition of human capital strategy issues viewed from Group management issues

The short-term goal of the human capital strategy is to accelerate the strengthening of organizational capabilities that will improve the effectiveness of the business portfolio’s transformation. In the medium- to long-term, we will produce expert and diverse human resources.

At this time, we are focused on five issues based on the linking of the management and human capital strategy.

  1. Strengthen organizational capabilities in line with the business portfolio transformation (Health Science, new businesses, etc.)
  2. Human capital management focused on expertise and diversity is required when looking ahead in times of an uncertain future
  3. Create a culture that supports and strengthens human capital who can accomplish and innovate = capability to execute the strategy to achieve the advanced strategies
  4. Create job satisfaction in response to changes in the labor market and individual values
  5. Strategic evolution through communication with the stakeholders, spurred by a focus on human capital

Stories and disclosures that link with the human capital strategy and value creation

There are cases in which the issues and important points of the human capital strategy differ depending on country, region, and business, but the story linking to the human capital strategy and value creation is the same. For sustainable growth and the improvement of corporate value, increasing expertise and diversity of both human capital and the organization is essential. In order to promote a human capital strategy unique to Kirin, we set four key factors—Well-Being, Growth, DE&I, and KABEGOE—and their respective stories across the Group.

By establishing an environment that allows employees to work to their fullest and that creates job satisfaction, engagement, and sympathy for the Group Corporate Philosophy, Values, and CSV will rise. (Well-Being)

Furthermore, through self-reliant career development that starts from a will that leads to Group contribution and personal growth, employees will proactively hone their expertise, while enriching their values through diverse experiences and enhancing their inner diversity. (Growth)

In addition, we will foster a culture that allows employees to work in their own way, accepts diverse values that differ from their own, and recognizes the diversity of each organization and team. (DE&I)

Moreover, we will nurture minds that hold an interest in everything and create new ideas and values with their colleagues. We will also grow the number of opportunities for diverse and specialized human capital to co-create across businesses. (KABEGOE)

In this way, by creating value through CSV management, we will accelerate the realization of sustainable growth and the improvement of corporate value.

 

We set the below indicators based on the story of the human capital strategy unique to Kirin that is centered on the four key factors of Well-Being, Growth, DE&I, and KABEGOE. Going forward, we will continue to evolve our human capital management through dialogue with our stakeholders.

  • Sympathy for Philosophy, Values, and CSV (Sustainable engagement through engagement surveys) *Well-Being
  • Development of professionals with expertise and diversity (Talent management on a functional basis / Experienced in two or more businesses) *Growth
  • Culture that embraces diversity (Diversity index in engagement surveys) *DE&I
  • KABEGOE (Kirin’s unique challenge that embodies CSV by involving both internal and external stakeholders) *KABEGOE

Human capital disclosure index

  • Key Initiatives for Human Capital Strategy. ・Improvement of professional skills required to execute the strategy・Discover and foster Group management human capital who will be responsible for future management・Improvement of leader support and promotion of will-driven, self-reliant growth and career development・Pride and attachment to the organization, understanding toward the company philosophy and purpose・Diversity, Equity & Inclusion Diversity, Equity & Inclusion that transform differences into strength・Create an environment that encourages challenge through job satisfaction reforms・Enhancement of safety and health management, promotion of health management・Business and human rights. Human capital disclosure index (Unique items)・Sympathy for Philosophy, Values, and CSV ・Development of professionals with expertise and diversity・Culture that embraces diversity・KABEGOE(Comparable items)・Employee engagement score・Development of management talent・Female management ratio・Percentage of mid-career hires・Turnover rate・Reinstatement rate after maternity / childcare leave・Rate of male employees taking paternity leave・Gender wage gap・Average length of service・Labor practices・Percentage of employees covered by collective bargaining agreements・Lost time incident rate (LTIR)・Employee fatalities due to accidents at work・Number of complaints resolved around human rights・Attendance rate of human rights training

  • Key Initiatives for Human Capital Strategy. ・Improvement of professional skills required to execute the strategy・Discover and foster Group management human capital who will be responsible for future management・Improvement of leader support and promotion of will-driven, self-reliant growth and career development・Pride and attachment to the organization, understanding toward the company philosophy and purpose・Diversity, Equity & Inclusion Diversity, Equity & Inclusion that transform differences into strength・Create an environment that encourages challenge through job satisfaction reforms・Enhancement of safety and health management, promotion of health management・Business and human rights. Human capital disclosure index (Unique items)・Sympathy for Philosophy, Values, and CSV ・Development of professionals with expertise and diversity・Culture that embraces diversity・KABEGOE(Comparable items)・Employee engagement score・Development of management talent・Female management ratio・Percentage of mid-career hires・Turnover rate・Reinstatement rate after maternity / childcare leave・Rate of male employees taking paternity leave・Gender wage gap・Average length of service・Labor practices・Percentage of employees covered by collective bargaining agreements・Lost time incident rate (LTIR)・Employee fatalities due to accidents at work・Number of complaints resolved around human rights・Attendance rate of human rights training

Unique items

Comparable itemsSupplementary information202120222023
Uniqueness

Sympathy for Philosophy, Values, and CSV
(Sustainable engagement through engagement surveys)
*Well-Being

 Set indicators for sympathy and attachment to the Kirin Group’s Philosophy, Values, and CSV and for an awareness toward embodying them 72 70 70
Development of professionals with expertise and diversity
((1) Talent management on a functional basis
(2) Experienced in two or more businesses)
*Growth
  1. Organize the desired human capital requirements by function and a training process to improve expertise
  2. Appoint human capital so specialized human capital can gain diverse experiences with the Kirin Group*1
(Number (2))		 ー ー 34.2％
Culture that embraces diversity
(Diversity index in engagement surveys)
*DE&I		 Set indicators that represent a state of working authentically while also accepting differing values with the goal of improving individual and organizational diversity. ー 68 69
KABEGOE
(Kirin’s unique challenge that embodies CSV by involving both internal and external stakeholders)
*KABEGOE		 Set number of Kirin Group Award applicants*2 as the number of challenges unique to Kirin that were co-created with others inside and outside the Group 12.6％ 23.1％ 36.1％
  1. Calculated as the number of people with two or more of the following experiences: work experience in the Group’s four domains (Food & Beverages, Health Science, Pharmaceuticals, other), overseas work experience, and experience working outside the Group
  2. Calculated as the number of Kirin Group Award applicants that are employees of the Kirin Group

Example

The Kirin Group Award: The embodiment of the Group Philosophy, Values, and CSV

The Kirin Group Award, which awards initiatives that embody the Kirin Group’s Philosophy, Values, and CSV, is a platform for honoring opportunities of co-creation with specialized and diverse human capital across businesses. To foster a greater sense of Group unity in 2023, we improved this event, such as by revamping the content to place more focus on the employees, and will continue to improve it going forward.

  • Number of Kirin Group Award Applicants. 3716applicant in Year 2021. 7002 applicants in Year 2022. 10890 applicants in Year 2023.

Example

Cross-border experiences that enrich individual values and nurture a culture that accepts diversity

Cross-border experiences within the Group enrich individuals’ values through diverse experiences, in addition to helping to foster an organizational culture that accepts diversity. These experiences started with the work-abroad program in 2019, and in 2020 we lifted the ban on side jobs and started to accept people to work side jobs with us. Furthermore, since 2021, we have expanded the scope to include mutual side jobs between a total of 27 companies.

  • Number of People Working Side Jobs for Cross-border Experiences. 23 employees in Year 2020. 37 employees in Year 2021. 45 employees in Year 2022. 69 employees in Year 2023.