Kirin Holdings: Improving The Sustainability Of Black Tea Farms In Sri Lanka Through The Regenerative Tea Scorecard In Conjunction With The Rainforest Alliance

*1 An approach to environmental conservation and restoration through agricultural activities.

The Regenerative Tea Scorecard is intended to be a voluntary, accessible tool for those involved in growing tea leaves on tea estates. It is a tool to support tea farms in their transition to regenerative farming. It will be piloted in Kirin Beverage’s supply chain. Tea farmers can use the “The Regenerative Tea Scorecard” to assess their current farm practices and identify areas of improvement to transition to regenerative agriculture. The Regenerative Tea Scorecard is based on the Rainforest Alliance’s definition of regenerative agriculture, which takes a conservation and restoration approach to farming by combining environmentally friendly farming practices with integrated systems management strategies to ensure soil health, on-farm biodiversity conservation, ecosystem restoration, and farmer livelihoods.

Currently, approximately 40%*2 of the black tea leaves*3 imported into Japan come from Sri Lanka, of which approximately 20%*4 are used in Kirin Gogo-no-Kocha. The Kirin Group has been supporting the acquisition of Rainforest Alliance Certification*5 since 2013 in order to build better partnerships with the tea-producing regions of Sri Lanka and the people who work there, and to continue producing safe and tasty tea drinks. By the end of 2023, 94*6 large farms, equivalent to about 30% of all large farms in Sri Lanka, had obtained certification. From 2021, Kirin Beverage has been selling 250ml LL Slim Kirin Gogo-no-Kocha Straight Tea, which is made from 100% Sri Lankan tea leaves, of which more than 90% are Rainforest Alliance Certified tea leaves.

*2 Leaf only results (excluding instant tea)

*3 Customs clearance statistics, Ministry of Finance

*4 Kirin Beverage research

*5 Certification awarded to farms recognized for their commitment to more sustainable farming methods while protecting nature and the producers.

*6 One large plantation had declined to continue certification in 2023.

Tea plantations in Sri Lanka face a variety of challenges, including the effects of climate change, such as drought and heavy rainfall, and the effects of land use change due to urbanization. In its Environmental Report 2022, published in July 2022, the Kirin Group was the first in the world to trial the disclosure of natural capital*7 including tea plantations in Sri Lanka, based on the LEAP approach advocated by the TNFD.*8 In its Environmental Report 2023, published in July 2023, Locate (discovery of contact points with nature) and Evaluate (analysis of dependencies and impacts) for tea plantations in Sri Lanka, and in the Environmental Report 2024, published in June 2024, Assess (assessment of risks and opportunities) and future direction (Prepare: preparation for reporting). A detailed analysis and assessment were conducted and published, revealing that training for Rainforest Alliance certification and the transition to regenerative agriculture are effective ways to resolve issues. However, not all small plantations have achieved certification, and to address these challenges, the Kirin Group is working with the Rainforest Alliance to develop the Scorecard, primarily to improve the sustainability of farmers. Through this activity, the Kirin Group aims to support the implementation of environmentally regenerative farming practices on tea plantations and improve the sustainability of the raw material production areas.

*7 Natural capital is the stock of natural assets that provide society with flows of renewable and non-renewable resources and ecosystem services

*8 Nature-related Financial Disclosure Task Force, a risk management-oriented disclosure framework for companies to report and act on risks and opportunities related to natural capital.

The Kirin Group will continue to address complex and interrelated environmental issues (biological resources, water resources, containers and packaging, and climate change) in a holistic approach, and to work with all those involved in the value chain to connect our desire to enjoy and pass on the bounty of the earth to future generations. We will proactively promote various initiatives that will have a positive impact on nature and people.

Kirin Group Environmental Vision 2050 https://www.kirinholdings.com/en/impact/env/mission/

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 (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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