Kirin Holdings: Conducting Human Rights Due Diligence For Sustainable Sourcing Of Sri Lankan Tea Leaves

• Reducing human rights risks in Sri Lanka, where raw materials are produced, in collaboration with Mitsui Norin
• Currently, Japan imports about 40% of the black tea leaves from Sri Lanka
• In the future, the number of target estates used to be increased, with the aim of procuring 80% of the tea leaves purchased by Kirin Holdings from sustainable production areas by 2030

Kirin Holdings Company, Limited (Kirin Holdings) (TOKYO:2503) and Mitsui Norin Co., Ltd. (Mitsui Norin) are developing a human rights due diligence initiative targeting tea plantations in Sri Lanka, with the aim of achieving sustainable sourcing of black tea leaves used for Kirin Gogo-no-Kocha.  

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Kirin Holdings and Mitsui Norin have been implementing the Designated Tea Estates System, under which tea leaves are procured and supplied from designated estates in order to cultivate estates that supply tea leaves of stable quality. The system is designed to reduce and prevent the occurrence of human rights risks by identifying negative human rights impacts through the implementation of new questionnaires and on-site audits at “designated tea estates.” In the first year, the project will be implemented on four estates. In the future, the number of target estates will be increased, with the aim of procuring 80% of the tea leaves purchased by Kirin Holdings from sustainable production areas^*1 by 2030. Through the procurement of sustainable tea leaves, Kirin Holdings recognizes the social issues faced by the estates and works to improve the wellbeing of the employees working on the estates.
*1: Refers to estates where human rights due diligence has been carried out by Mitsui Norin or estates certified by the Rainforest Alliance.  

The Kirin Group has been conducting human rights due diligence^*2 upstream in its supply chain since 2018 in line with the global standard, the UN Guiding Principles on Business and Human Rights, and the Kirin Group Human Rights Policy. So far, the Kirin Group has done so in the supply chains of coffee beans in Laos, soya beans in China, tea leaves in Sri Lanka, grapes in Argentina and sugarcane in Brazil. The experience and knowledge gained from those initiatives will be used in our human rights due diligence efforts with Mitsui Norin, and any issues identified will be considered for resolution in collaboration with Kirin Holdings and Mitsui Norin.
*2: The Kirin Group's human rights due diligence: https://www.kirinholdings.com/en/impact/community/2_1/duediligence  

In addition to human rights initiatives, the Kirin Group is also involved in biodiversity conservation and other activities aimed at protecting the areas where raw materials are produced. Currently, about 40%^*3 of the black tea leaves^*4 imported to Japan come from Sri Lanka, of which about 20%^*5 are used in Kirin Gogo-no-Kocha. Starting in December 2024, the Kirin Group began implementing a Regenerative Tea Scorecard in collaboration with the Rainforest Alliance as a tool to promote regenerative agriculture at the discretion of farmers. In addition, in response to the impacts of climate change and land-use change associated with urbanization facing tea plantations in Sri Lanka, the Kirin Group published its Environmental Report 2022 in July 2022, which became the first in the world to trial the disclosure of natural capital, including Sri Lankan tea estates, based on the LEAP approach advocated by TNFD.
*3 Results for leaf only (excluding instant black tea)
*4 Customs clearance statistics from Japan’s Ministry of Finance
*5 Kirin Beverage research  

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, Kirin Holdings 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 (KV 2027), a long-term management plan launched in 2019, the Kirin Group aims to become “A global leader in CSV^*, 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.
* Creating Shared Value: combined added value for consumers as well as for society at large  

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