In 2019, the Kirin Group established the Kirin Group Vision 2027 (KV2027), its long-term management vision for the next stage of its growth.
KV2027 declares a vision for the Group to become a global leader in CSV by 2027 by creating value in domains ranging from food & beverages to pharmaceuticals. CSV, which has been the foundation of the Kirin Group’s management since 2012, is a concept that seeks to realize sustainable growth by contributing to solutions to social issues through business and creating social value and economic value at the same time. Companies will no longer be able to survive unless they are able to walk a path together with society.
The Kirin Group views the environment as one of the most important social issues that it must address, alongside health and well-being, community engagement, and our responsibility as an alcoholic manufacturer which is the premise of these two issues.
For the past six years, as part of our Long-Term Environmental Vision, we have led the industry in our efforts to realize a society that is based on 100% recycling, including obtaining approval for our SBT and switching completely to FSC® certified paper.
In December 2018, we became the first company in the Japanese food and beverage industry to express support for the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). In our climate-related scenario analysis, continuing on from last year’s trials, we tested a number of scenarios, including detailed identification of the long-term impact of climate change on agricultural products, confirmation of the impact of the water stress resulting from climate change, and, further, energy price fluctuations, and have confirmed the resilience of our management strategies to these impacts.
In addition to these initiatives, this fiscal year, we will revise the Long-Term Environmental Vision and engage in higher targets in response to global concerns about the natural environment, such as natural disasters caused by climate change and the issue of ocean plastics, and to the growing expectations being placed on companies.
In 2018, the Kirin Group’s business activities were greatly impacted by a range of environmental issues, such as the torrential rains in Western Japan and the problem of ocean plastics. The environmental issues envisioned in the Long-Term Environmental Vision and the CSV Commitment are no longer risks that are far off into the future. There is now a real sense that they have already become present-day challenges.
Due to the localized torrential rains in Western Japan, rail networks were disrupted, highlighting the risks in the modal shift we have been pursuing to mitigate environmental burden and address the shortage of drivers. With the cooperation of the logistics and sales divisions, we were able to minimize the impact of this disruption. We also prepared and implemented a manual in 2018 that details responses to be taken in the event of future failures in function of modal shift.
Regarding the problem of ocean plastics, in February 2019, we announced the Kirin Group Plastic Policy. The main pillar of this Policy is our goal to use recycled plastic for 50% of the Group’s PET plastic use in Japan by 2027, leveraging our track record in the commercial application of PET bottle beverages using recycled PET plastic. We have since commenced initiatives to achieve this target.
Based on these experiences, as part of our approach to the TCFD recommendation, the Group CSV Committee met in June 2019 with the President of Kirin Holdings as Committee Chair and the Kirin Holdings directors and Group company presidents as members, and began discussions on transition strategies based on environmental risk scenarios.
On February 14, 2019, our long-term management vision, Kirin Group Vision 2027 (KV2027) and the guidelines for the Vision’s long-term and non-financial targets, Kirin Group CSV Purpose (CSV Purpose), were announced, and the 2017 CSV Commitment was updated. Regarding the environment, we have renewed the position of our key performance indicators as non-financial targets in the 2019 Medium-Term Business Plan, and firmly integrated those indicators in our business strategies.
Resolving social issues through business will not only contribute to the United Nations’ Sustainable Development Goals (SDGs). It is also the source of growth for Kirin’s business.
For example, ecological surveys of vineyards for Japan Wine revealed that fields where grasses have been cultivated serve as grasslands that nurture diverse living creatures, including some rare species. As well as producing greater profits, the growth of Japan Wine industry will help to restore Japan’s traditional rural Satochi-Satoyama landscapes by converting idle and devastated land into vineyards.
In our support for tea estates in Sri Lanka to obtain sustainability certification, we have expanded that support to small farms and engaged in our activities to conserve farm water sources. Following on from these efforts, we have also started assisting in the development of technologies to achieve pesticide-free farming and to increase yields. These are some of the ways in which we are contributing to the protection of the natural environment in farmlands and to the stable supply and improved quality of black tea leaves.
In action on global warming, we are pursuing initiatives to achieve science-based targets (SBT) for the reduction of GHG emissions to hold the increase in the global average temperature to well below 2°C above pre-industrial era levels, which we set in 2017. In Japan, we have launched a plan to introduce heat-pump systems in all of our beer breweries. At Myanmar Brewery, we have taken advantage of the Joint Crediting Mechanism (JCM), a bilateral credit creation scheme being promoted by the Japanese government to introduce state-of-the-art brewing equipment that incorporates energy-saving technologies cultivated in Japan. These initiatives will also lead to costs reductions as well as reducing GHG emissions.
To achieve our CSV Purpose, the Kirin Group will use our strengths to contribute to solutions to environmental issues, while at the same time making our businesses more resilient and realizing sustainable growth.
© 2007 Kirin Holdings Company, Limited.