Formulation of the Kirin Group Human Rights Policy

Kirin Holdings Company, Limited (President and CEO: Yoshinori Isozaki; hereinafter “Kirin Holdings”) has formulated the Kirin Group Human Rights Policy based on the UN “Guiding Principles on Business and Human Rights.” By promoting management that values human rights in both Japan and overseas, Kirin Holdings aims to further contribute to the development of a sustainable society.

As companies continue to globalize, respect for human rights is becoming even more important as it is an essential issue in achieving corporate globalization. In light of this trend, there is a need for corporations to deepen their understanding of the various human rights issues occurring in the countries where they operate and take appropriate action in response to these issues.

Starting with its beer business, the Kirin Group (Kirin Holdings and its consolidated subsidiaries) operates a broad range of alcoholic beverage businesses, and the Group’s domains have expanded to encompass non-alcoholic beverages, food, pharmaceuticals, and biochemicals. Additionally, with its base of operations in Japan, the Group has been promoting globalization centered on Asia and Oceania.

In accordance with this newly formulated policy, the Kirin Group promises to give the utmost respect for human rights and engage in appropriate human rights practices, as stipulated by the “International Bill of Human Rights” and the International Labour Organization’s “Declaration on Fundamental Principles and Rights at Work.”

Outline of the Kirin Group Human Rights Policy (Approved at a Board of Directors’ Meeting at Kirin Holdings)

Policy Scope

• Officers and employees of the Kirin Group
• Business partners are expected to support this policy and suppliers are expected to adhere to it

Position of the Policy

• The Human Rights Policy functions as the dominant policy for all documents and standards that relate to initiatives for encouraging respect for human rights within the Kirin Group’s business activities.

Outline of Commitments Declared within the Policy

• Respect for human rights, as stipulated by the “International Bill of Human Rights” and the International Labour Organization’s “Declaration on Fundamental Principles and Rights at Work,” and endorsement and implementation of the UN Guiding Principles on Business and Human Rights
• Specification and mitigation of adverse impacts on human rights, and execution of measures to address human rights issues (including the establishment of a hotline and efforts to improve its effectiveness)
• Education and skill development for officers and employees
• Prohibition of discrimination and harassment; provision of a safe and secure work environment; assurance of a minimum wage; respect for responsible labor practices, freedom of association, and collective bargaining rights; prohibition of forced labor and child labor; and fulfillment of responsibilities to local communities, including indigenous peoples
• Continuous dialogue with stakeholders, ongoing improvement to relevant initiatives, and regular disclosure of progress

Kirin Group Human Rights Policy

The Kirin Group has expanded our business in response to changes in the societies in which we live and operate. We have expanded our products from beer to a wide variety of alcoholic beverages, soft drinks and foods, as well as advanced pharmaceuticals, and our business activities have spread around the world. Respect for human rights is a foundation for all of our business activities. We recognize that companies such as ours must continuously deepen their understanding of the potential human rights impacts associated with their own business and global value chain and take appropriate action to ensure respect for rights. We will conduct our business activities in line with this Kirin Group Human Rights Policy.

This policy applies to all the executives and employees - including part-time, dispatch and contract workers - of the Kirin Group, which constitutes Kirin Holdings Company, Limited and its consolidated subsidiaries. The Senior Executive Officer in charge of Human Resources at Kirin Holdings Company, Limited is responsible for the implementation and management of this Policy.

We expect that all of our business partners adhere to this policy. The Kirin Group will work to make our suppliers aware of this Policy, and we expect their compliance.

This Human Rights Policy governs all other policies and documents related to the Kirin Group’s efforts to respect human rights across our global operations.

1．Respecting Human Rights in Practice

We understand that our business activities may have direct or indirect human rights impacts at every stage in the value chain, from R&D and procurement of raw materials to consumption/use of our products and services. We are committed to respecting human rights as set out in the International Bill of Human Rights※1 and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work※2. We support and are working to implement the United Nations Guiding Principles on Business and Human Rights,※3 and Kirin Holdings Company, Limited is a signatory to the United Nations Global Compact.
We comply with local laws and regulations wherever we operate. Where national law and international human rights standards differ, we will follow the higher standard; where they are in conflict, we will seek ways to respect internationally recognized human rights to the greatest extent possible.

• ※1The International Bill of Human Rights consists of the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights and the International Covenants on Economic, Social and Cultural Rights. It is widely regarded as the fundamental human rights framework in the international community.
• ※2The Declaration on Fundamental Principles and Rights at Work refers to freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced or compulsory labour, the effective abolition of child labour and the elimination of discrimination in respect of employment and occupation.
• ※3The United Nations Guiding Principles on Business and Human Rights, endorsed by the United Nations Human Rights Council in 2011, are the authoritative global standard for States and business to prevent and address the risk of adverse impact on human rights linked to business activity.

2．Our Stakeholders and Human Rights

We recognize the importance of understanding our human rights impacts from the perspective of those affected.

We prohibit any form of discrimination based on race, ethnicity, nationality, social status, lineage, sex, disability, health conditions, ideology, faith, sexual orientation, gender identity, occupation or occupational status. We prohibit harassment and are committed to responsible labor practices including the provision of a safe and healthy environment in the workplace as well as ensuring adequate working hours and minimum wage. We also commit ourselves to respecting freedom of association and the right to collective bargaining.

We oppose any form of slavery or forced labor, including human trafficking, and child labor.

We acknowledge and seek to uphold our responsibility to the communities, including indigenous groups, affected by our operations.

3．Our Commitment to Human Rights Due Diligence

We will identify, prevent and mitigate adverse human rights impacts with which we are involved in line with the United Nations Guiding Principles on Business and Human Rights.
We will act upon the findings of this due diligence and endeavor to deliver appropriate and effective remedy where we identify that we have caused or contributed to adverse human rights impacts. We also recognize that we may play a role in remediation where adverse impacts are directly linked to our products and services by business relationships. Where it is necessary to prioritize our actions, we will prioritize to address our most severe adverse human rights impacts based on their scale, scope and irremediability.

Kirin Group’s existing inquiry channels may be used to raise concerns related to our business activities. We will continue to work towards establishing effective grievance procedures.

We will provide the training necessary for our executives and employees to have the knowledge and capacity to implement this Policy.

We will regularly and publicly communicate our progress on our efforts to address adverse human rights impacts including through Kirin Holdings Company’s website and/or integrated report.

We have benefited from the views of stakeholders in the drafting of this policy. As we move forward on our journey, we will continue to engage with our stakeholders concerning the human rights issues associated with our business and seek to update our practices to respect human rights.

Effective: 9 February 2018
Kirin Holdings Company, Limited
President＆Chief Executive Officer
Yoshinori Isozaki