Kirin Group Carbon Credit Policy

TOKYO, April 3, 2025 -Kirin Holdings Company, Limited established the Kirin Group Carbon Credit Policy in March 2025.

The Kirin Group set the goal of achieving net zero GHG*1 emissions for the entire value chain by 2050 in The Kirin Group Environmental Vision 2050 and was the first food company in the world to obtain SBT Net Zero*2 certification from the Science-Based Target Initiative (SBTi).*3 To achieve this goal, not only are we prioritizing emission reduction through our own efforts in Scope 1, 2 and 3 in accordance with SBTi guidelines, but we are also considering using carbon credits*4 to offset our residual emissions as another means of achieving net zero.

In the carbon credit market, which has become increasingly active in recent years, the problem is the variability in quality of the value claimed by credits, such as the integrity and sustainability of the data showing the reductions achieved. Low-quality carbon credits may not contribute to actual GHG reductions, which not only prevents the expected environmental contribution from being realized but also undermines the integrity of the company using the carbon credits. However, as a result of our research into market trends for carbon credits, we recognize that carbon credits derived from forest-based conservation and sustainable agriculture are proven to be effective to a certain extent in supporting environmental regeneration and the sustainable development of local communities.

In the newly formulated Kirin Group Carbon Credit Policy, we have developed a policy and a checklist*5 for utilizing carbon credits so that each operating company*6 can autonomously confirm and implement the values and quality that the Kirin Group puts emphasis on in terms of the impact on biodiversity and co-benefits*7 to local communities.

The Kirin Group Environmental Vision 2050 also sets the goal of taking the lead in building a decarbonized society. To achieve this goal, we are also conducting research that will lead to the creation of high-quality carbon credits. The Kirin Central Research Institute is conducting research to generate forest-based carbon credits using technology for the mass propagation of plants, while the Institute for Future Beverages is researching the use of biochar in agricultural products. The Kirin Group is taking a multifaceted view of the diversity of and changes in environmental and social issues, and is contributing to building a decarbonized society not only in its own value chain but also on a global scale.
*1 Greenhouse gases.
*2 A certification system established by the Science-Based Target Initiative (SBTi)..
*3 An initiative established by four organizations (the CDP, UN Global Compact, World Resources Institute, and WWF) in 2015 to set a GHG emission reduction target, consistent with the level required by the Paris Agreement (which aims to limit the global temperature increase to well below 2°C above pre-industrial levels and pursue efforts to limit temperate increase to 1.5°C below pre-industrial levels).
*4 A system whereby GHG reductions and removals from the atmosphere can be traded between companies.
*5 Advisory services for the development of the carbon credit policy and checklist were received from Tokio Marine Asset Management Co Ltd, Tokio Marine & Nichido Fire Insurance Co Ltd, and Bank of Mitsubishi UFJ, Ltd.
*6 The in-scope operating companies are as follows: Kirin Brewery, Kirin Beverage, Mercian, Koiwai Dairy Products, Kyowa Hakko Bio, Kyowa Kirin, Four Roses Distillery, LLC, Interfood Shareholding Company, LION Pty Ltd, Blackmores Limited, and Coca-Cola Beverages Northeast, Inc.
*7 A co-benefit (common benefit) approach that simultaneously improves environmental, employment and local economic problems such as loss of biodiversity, drought, etc., and GHG reduction.

The Kirin Group will continue to tackle complex and interrelated environmental issues (biological resources, water resources, containers and packaging, and climate change) in an integrated manner, and to work together with all those involved in the value chain to link our desire to enjoy and pass on the bounty of the Earth’s abundance to future generations. We will actively promote various initiatives that have a ‘positive impact’ on nature and people.

References

Kirin and Hitachi begin joint research on the creation of forest-based carbon credits
Kirin and Hitachi begin joint research on the creation of forest-based carbon credits | 2025 | Kirin Holdings
Kirin Group Environmental Vision 2050:Kirin Group's Environmental Vision 2050 | The Environment | Kirin Holdings
Kirin Group Environmental Report 2024: Kirin Group Environmental Report | IR Library | Kirin Holdings

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 (KV2027), a long-term management plan launched in 2019, the Kirin Group aims to become A global leader in CSV*8, 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.
*8 Creating Shared Value. Combined added value for consumers as well as for society at large.