Our Grape Production Leads to Nature Positive

It is estimated that more than half of the world’s GDP (gross domestic product) relies on natural capital. The Kirin Group is utilizing natural capital in various ways, such as using water and crops as raw materials, borrowing the power of yeast in our business, and leveraging functions of microorganisms to make products in our biopharmaceuticals business. We must make it possible to sustainably utilize the natural capital in order to grow our business, setting CSV as the center of Kirin’s management philosophy.

Influenced by the 10th Conference of the Parties (COP 10) to the Convention on Biological Diversity in 2010, we redefined natural capital as our materiality and have solved issues. In recent years, we have turned our attention to further contributing to being Nature Positive, or to halting the loss of natural ecosystems and to recovering the system.

Japan’s Ministry of the Environment recognizes private lands that have natural environments with rich ecosystems as Nationally Certified Sustainably Managed Natural Sites in aim of becoming Nature Positive. In 2023, Chateau Mercian Mariko Vineyard, a Kirin Group winery that has been used to grow grapes for Japanese wines since 2003, was officially certified as one of these private lands. Of the 122 places certified in 2023, Mariko Vineyard is the only agricultural business operation site.

In Mariko Vineyard, through the grass cultivation^*1 that is being conducted, Secondary Nature, in which the ecosystem is enriched, is being nurtured through the continuous involvement of farmers. Most of the nature in Japan and other Asian countries has Secondary Nature, and this vineyard is a prime example of both in Japan and overseas.

We are actively working to convey the importance of Secondary Nature. Global rules for natural capital are about to be set. Secondary Nature is maintained and formed by people managing it through agriculture and forestry, rather than destroying it. It is important that Secondary Nature is also recognized globally as a contributor to the richness of nature and nature positivity.

By being certified as a Nationally Certified Sustainably Managed Natural Site, Mariko Vineyard was also registered in the international database as an OECMs,^*2 and we were able to communicate to the world that Mariko Vineyard contributes to the enrichment of biodiversity. In September 2023, we started the Château Mercian Mariko Winery SDGs Tour to introduce these activities. The participation fee is 10 thousand yen, and it is a popular event that fills up every time. We plan to offer more external communication activities like this in the future and expect them to improve the awareness and value of the Château Mercian brand. Additionally, we believe that if similar initiatives are accelerated at other vineyards, it will contribute to increasing the awareness of Japanese wines.

We are aiming to also have Mercian’s other vineyards certified as OECMs sites in the future. Furthermore, we will perform investigations to accurately measure the amount of GHG (greenhouse gas) emissions of the vineyards to scientifically verify what kind of impact the vineyards are having on not only ecosystems but also climate change. In addition, we plan to resolve environmental issues through turning pruned grape vines into biochar to immobilize GHG in soil and other methods of regenerative agriculture.

1. A method of cultivating without weeding orchard undergrowth. Undergrowth prevents soil erosion and supplements organic matter in the orchard.
2. Other effective area-based conservation measures

*Stated information as at the date it is made