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Promoting responsible procurementPolicy on CSR Procurement

Establishment of the “Kirin Group Sustainable Procurement Policy”

To fulfill its social responsibility, the Kirin Group established the “Kirin Group Sustainable Procurement Policy” and will undertake initiatives to realize this policy going forward.

“Kirin Group Sustainable Procurement Policy”

Yasuyuki Ishii
Director of the Board,
Senior Executive Officer
in Charge of SCM Strategy

While fulfilling its social responsibility at a high level, the Kirin Group procures the most suitable and necessary raw materials and services for its business. To honor our social responsibility across our entire business as a signatory of the UN Global Compact, we will approve, support, and implement a set of essential values that work to limit the impact of our procurement activities within the Global Compact areas of human rights, labor, the environment, and anti-corruption. Listening earnestly to the opinions of our suppliers and other stakeholders, we will make efforts to ensure an understanding of the “Kirin Group Sustainable Procurement Policy” and work together with our stakeholders toward realizing this policy. By putting this policy into practice, we will enhance our sustainability on a global scale while also boosting our competitiveness, improving our corporate value, and contributing to society.

Policy and Structure for CSR Procurement in the Japan Integrated Beverages Business

Policy on CSR Procurement

In 2011, the Kirin Group released the “Kirin Group Supplier CSR Guidelines” based on the “Kirin Group Procurement Basic Policy” to meet requests and expectations from society and continue creating value through our business activities by working closely with business partner suppliers.
The “Supplier CSR Guidelines” cover six categories―compliance, humanity, the environment, safe and reliable products, alcohol-related problems, and social contribution, and are intended to be informative and useful for suppliers to understand what is expected of them. The Kirin Group uses these guidelines to encourage all domestic suppliers to cooperate in stepping up their CSR efforts and will take similar steps to seek the understanding and cooperation also of overseas suppliers as we continue to promote CSR across the Group.

Kirin Group Procurement Basic Policy

When applying the Kirin Group’s management philosophy by providing customers with safe and reliable products and services with clear value propositions, the Kirin Group is committed to fair and open procurement with the support and cooperation of our suppliers.

1. Steady focus on quality

1)
In procurement practices, we place a high priority on pursuing quality and safety in accordance with the “Kirin Group Basic Policy on Quality,” while also taking costs into account.
Quality Management
2)
We welcome new ideas and technical solutions for increasing customer value from suppliers.

2. Fair and open business dealings

1)
We select suppliers based on their performance in quality (Q), cost (C), delivery (D), reliable supply, CSR efforts, technological expertise, ability to propose innovative ideas, etc.
2)
We use a competitive bidding and selection process for procurement to ensure fairness to all suppliers.

3. Ensuring regulatory and ethical compliance

1)
We observe social norms and the letter and spirit of laws and regulations, and conduct business in a sensible and socially responsible manner.
2)
No Kirin Group employee engaged in procurement practices shall have personal conflicts of interest with any supplier. Employees shall not receive from any supplier rewards or gifts, regardless of value. They shall not force any supplier to make donations to the Group or to buy products and services from the Group. They shall not impose a reciprocal business arrangement with any supplier.

4. Environmental stewardship

1)
We observe environmental laws, regulations, and ordinances, voluntary industry standards for the environment, and our own voluntary standards to help society maintain a harmonious coexistence with nature.
2)
We conduct environmentally sensible, nonpolluting procurement practices in accordance with the Kirin Group’s Environmental Policy.

5. Coevolving relationships of mutual trust with suppliers

1)
We strive to establish long-term, coevolving relationships of trust with suppliers. We work with suppliers to manage and avoid risks to minimize their impacts on society and the Kirin Group’s business.
2)
We take the utmost care when managing personal information and confidential business information provided to us by suppliers, and do not disclose them to internal or external parties without the explicit approval of the original suppliers of such information. (Updated in February 2012)

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© 2007 Kirin Holdings Company, Limited.

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