Stakeholder Engagement

Kirin Group Stakeholders

The Kirin Group believes that our relationships with six stakeholders through our business are important to realize CSV (Creating Shared Value), which is our most important management policy.

	Key issues/values to be co-created	Main departments involved	Main means of engagement
Customers	We will use our technological expertise in manufacturing to pursue high quality and meet customers' expectations, bringing well-being. pleasure, and comfort to people's lives everywhere through the joy of food and well-being.	Corporate Communications Department (including Customer Service Center), CSV Strategy Department, Quality Assurance Department, Health Science Business Department, operating companies	Public relations activities (company website・ SNS・factory tours・ Media Relations), Customer Service Center (response to inquiries), Various events, Quality assurance, Production activities, Sales activities.
Shareholders and investors	To further strengthen corporate governance and increase corporate value over the medium to long term, we will enhance disclosure of information and engage in constructive, two-way communication.	Corporate Communications Department, CSV Strategy Department, People & Culture Department (including Secretary Section), Finance Departmen (including IR section), Legal Department, Procurement Department	Integrated Report Company Website, Environmental reports, Dialogues with ESG evaluation organizations Financial Results Briefings, Investor Briefings, General Meeting of Shareholders.
The environment	Working together with customers and the other stakeholders, the Company shall bring joy to society and pass the world on the next generations by creating positive benefits for nature and people.	CSV Strategy Department, operating companies	Participation in various initiatives
Business partners	Through fair transactions, we will build relationships of mutual trust with all business partners toward the creation of a sustainable society and offer better products and services to our customers.	CSV Strategy Department, People & Culture Department, Legal Department, Procurement Department, operating companie	Supplier engagement, Supplier hotline, supplier briefings, Procurement activities, Sales activities.
Communities	We will treasure the local communities that support our business activities and contribute to their healthy and sustainable growth.	CSV Strategy Department, Strategic Marketing Department, Procurement Department, operating companie	Social Contribution Activities,Engagement with rights holders on human rights, grievance mechanisms (hotline contact from all stakeholders), Procurement Activities, Community Support Activities in Busines, Sales Activities.
Employees	We will foster an organizational culture where a diversity of people can enjoy working, feel that they are experiencing human growth through their jobs, and take on the challenge of innovation.	Corporate Communications Department, People & Culture Department, operating companies	Information sharing through the internal information intranet,Various training programs, Engagement surveys, Internal commendation system, Hotline, Labor-management consultations, etc.

Kirin Group Engagement and Achievements

To accurately grasp the ideal image of the Kirin Group as expected by society when revising Management Issues for Sustainable Growth and Group policies, and we conduct engagement with stakeholders in order to reflect the voice of society in our strategies and co-create value with society through our business activities.

Activities to solve the waste plastic problem (Sep 2023)

In order to help solve the problem of plastic waste, the Kirin Group is a member of the Alliance to End Plastic Waste (AEPW), which proposes solutions and supports activities to address plastic waste leakage into the environment and create a circular economy for plastics. As a global non-profit, the Alliance convenes more than 70 companies across the plastic value chain with local communities, civil society groups, intergovernmental organisations, and governments. As the Alliance held a summit on Plastics Circularity in Tokyo, members visited the Kirin Brewery Yokohama factory to present the Kirin Group's philosophy and past initiatives regarding plastic recycling, and to exchange opinions.

1 Explanation of the Kirin Group's efforts regarding plastics

Explaining the Kirin Group's CSV management initiatives and integrated approach to the environment
Case studies related to containers and packaging, mainly explaining chemical recycling initiatives
Sharing opinions from stakeholders and external organizations regarding the above initiatives
Introduction of the Packaging Innovation Research Institute and development packages

2 Exchange of opinions

1 Questions and comments from AEPW Alliance members

Isn't chemical recycling in conflict with existing mechanical recycling efforts?
How much does chemical recycling cost compared to mechanical recycling?
Does Kirin develop its own chemical recycling technology, and if so, does it conduct licensing agreements?

2 Answers based on your questions and opinions

Chemical recycling does not negate mechanical recycling, but we believe that it is important to use it in combination, especially in Japan where the PET bottle recovery rate is over 90%, so mixed operation is important. In addition, there is innovation in the ability to utilize waste plastics that cannot be used mechanically, so there is currently no backlash or negative reaction from mechanical recycling businesses.
Currently, the cost is high, but we believe this is due to the fact that the scale is still small.We aim to bring the cost to the same level as mechanical recycling by 2027.
Our goal is to establish a chemical recycling factory on our own and expand its scale to realize a better plastic recycling society.
It is not an original development, and there are companies that have already put it into practical use, so they do not hold the license itself. The important thing is that by promoting chemical recycling, we will be able to expand the number of suppliers that supply waste plastics that are unsuitable for mechanical recycling, which have been discarded until now.

The content of these exchanges of opinions has been raised as an issue at group environmental meetings within the Kirin Group, and we will continue to work proactively in the future.

3 others

On the day of the event, in addition to exchanging opinions with AEPW, we also exchanged opinions with the media regarding AEPW and our efforts as an alliance member. The contents are as stated below

Introduction to AEPW, AEPW's role as an international NPO
Expected roles of companies and consumers in promoting plastic resource circulation
Challenges towards realizing plastic resource circulation
The need for collaboration across the entire plastic value chain
Challenges in Japan

Human Rights Risk Assessment and Action Plan for Supply Chains (May 2022)

In the "Group Materiality Matrix (GMM)," which was reevaluated at the start of the new mid-term management plan, we have positioned human rights as one of the most important issues and are promoting initiatives to further respect human rights. As part of these efforts, we held a dialogue on human rights with an external expert, focusing on human rights in the supply chain, and exchanged opinions on our past efforts and the future.

(Attendees)

Asako Nagai, Managing Director, Tokyo Office, BSR

(In-house)

Junko Tsuboi, Senior Executive Officer (in charge: Personnel and General Affairs), Kirin Holdings Company, Limited
Masao Maehara, Senior Executive Officer (in charge: Supply Chain Management and Production Technology Strategy), Kirin Holdings Company, Limited

Contents on the day

1. Explanation of the Kirin Group's human rights initiatives

History of initiatives (In addition to employee-centered awareness-raising activities that have continued for more than 40 years, initiatives have been expanded to include all stakeholders since the UN Guiding Principles on Business and Human Rights were announced)
Supply chain initiatives to date (e.g., establishing the Kirin Group Sustainable Procurement Policy and Supplier Code and disseminating them to suppliers, identifying risks through supplier surveys, and conducting human rights due diligence based on risk assessments)
Future human rights due diligence action plan (risk assessment results by procuring country and item, and plan for human rights due diligence after 2022)

2. Information provided by BSR Nagai

Update on human rights and environmental due diligence a legal requirementin Europe
National Action Plan on "UN Guiding Principles on Business and Human Rights" in Japan
What companies should expect in the face of increasing regulation, including mandatory ESG disclosure by securities regulators

3. Exchange of opinions

Comments from BSR Nagai
- It is important to have a positive impact on the community through human rights due diligence, so please keep that in mind as you move forward with your efforts.
- The issue of foreign technical intern trainees and specified skilled workers in the supply chain should be tackled in a comprehensive manner after determining priorities, since each supplier has already been surveyed to determine whether or not there are any applicable trainees.
- The Kirin Group's website does not disclose its human rights initiatives in a cohesive manner, making them inaccessible. The Kirin Group has been making efforts related to human rights in the past, for example by supporting acquisition of Rainforest Alliance certification, and it would be better to improve the accessibility of information so that such efforts can be easily seen.
- We appreciate the various human rights initiatives being undertaken by the Kirin Group, but we need to further accelerate them in order to become a global leader in CSV. We suggest that further enhancement of the human rights promotion system should also be considered.
Future actions based on the exchange of opinions
At the Group Business and Human Rights Meeting held on June 24, 2022, we decided to proceed with the following initiatives based on the feedback we received at the human rights dialogue.
- We work to address the root causes of the problems uncovered in our human rights due diligence and to positively impact the local community.
- We consider introducing a grievance mechanism for early detection and resolution of issues throughout the supply chain, and also consider addressing issues related to foreign technical intern trainees and specified skilled workers within this context.
- We review the structure of the disclosure of human rights initiatives on our website and improve its accessibility.
- We strengthen the human rights system necessary to carry out our human rights activities toward our 2027 vision.

Formulating Our CSV Purpose (Long-Term Non-Financial Target) and Updating Our CSV Commitment (October 2018)

The Kirin Group’s long-term management vision, Kirin Group Vision 2027, sets out the Group’s aim to become “a global leader in CSV, creating value across all of its products and services, from Food and Beverages to Pharmaceuticals.” As a long-term non-financial target, we have formulated the Kirin Group CSV Purpose, which establishes guidelines for creating shared value with society and promoting sustainable shared growth. Moreover, we have updated the Kirin Group CSV Commitment, the medium- to long-term action plan of the Kirin Group CSV Purpose. Through the process of formulating these targets and guidelines, we have engaged in dialogue with external participants and their opinions are reflected in the CSV Purpose and the CSV Commitment.

External Participants:

Fidelity International
Head of Engagement, Japan
Hiroki Sampei
Professor, Graduate School of Media and Governance,
Keio University
Norichika Kanie
National Hospital Organization
Kurihama Medical and Addiction Center
Takanobu Matsuzaki

Kirin Holdings Company, Limited:
Ryosuke Mizouchi, Senior Executive Officer (CSV Strategy), Kirin Holdings Company, Limited
Ryuji Nomura, Executive Officer, General Manager, CSV Strategy Department, Kirin Holdings Company, Limited

Extracts of Opinions Received

CSV Purpose

When considering management and awareness within the Company, it would be desirable to quantify the CSV Purpose.
For example, initiatives being taken in Myanmar and Sri Lanka also have the potential to contribute to poverty relief. The Group should, without reservation, highlight the contribution it makes to society. When doing so, how about doing it with reference to the globally shared language of SDGs, awareness of which is rapidly growing?

CSV Commitment

The wording used for each item is too dry. Without language that attracts people’s attention, it will not be possible to gain the understanding of employees and other stakeholders.
Investors expect relative competitiveness to enhance corporate value. The Group should clarify what value will be generated as a result of CSV activities.
Rather than talking about reality-based progress, the Group should describe its long-term vision from the perspective of the SDGs.
When looking only at the risk side of the alcohol business, the operating environment is becoming increasingly harsh. However, taking concerted industry-wide initiatives and then expanding the possibilities from there is surely the best approach for the Kirin Group. The Slow Drink idea is a really easy one to understand.

Establishment of “Our CSV Commitment” (November 2016)

A discussion on the social issues that the Group should seek to address took place at a June 2016 meeting of the Group CSV Committee^* between the president & CEO of Kirin Holdings, who chairs this committee, and the presidents of major Group companies. It was based on this discussion that we defined the priority themes for the Group’s initiatives. Subsequent discussions were at operating companies and relevant units to complete “Our CSV Story” and “Our CSV Commitment.” International guidelines were referenced to incorporate a social perspective while Group CSV representatives met with external experts. The input gained through these meetings was reflected in “Our CSV Commitment.”

To support the Kirin Group’s proactive and independent CSV initiatives, the Group CSV Committee meets once a year in principle, with the meeting chaired by the president & CEO of Kirin Holdings.

External experts:
Mariko Kawaguchi, Chief Researcher, Research Division, Daiwa Institute of Research Ltd.
Hideto Kawakita, CEO, International Institute for Human, Organization and the Earth (IIHOE)

Kirin Group representatives:
Seiichi Hashimoto, Senior Executive Officer in Charge of CSV Strategy, Kirin Holdings Company, Limited
Masaya Hayashida, Executive Officer & General Manager, CSV Management Department, Kirin Company, Limited
Hiroyuki Morita, Director, CSV Management Section, Kirin Holdings Company, Limited (As of December 2016)

Input from External Experts

Alcohol-related problems:

It will be important to verify the effectiveness of the initiatives implemented to date. It would be best for the Company’s programs to be able to formulate measures and provide education based on issues identified through communication with patients and healthcare professionals.

Health and well-being:

The Kirin Group’s initiatives are a beneficial undertaking for addressing the issue of rising healthcare expenditures, which is a shared concern faced by the entire world.

Community engagement:

Would it not be possible to go beyond simply procuring Japanese hops and wine grapes for use in Kirin products to create sustainable businesses from the perspectives of sightseeing and other aspects of regional development?