Kirin Holdings: Brewing a Sustainable Future for Sri Lankan Tea Leaves

As the global demand for sustainable and ethically sourced products continues to grow, companies are increasingly focusing on responsible business practices throughout their supply chains. Kirin Holdings, a multinational corporation operating in the food and beverage domain, is taking a significant step in this direction by implementing a human rights due diligence initiative targeting tea plantations in Sri Lanka. This initiative aims to ensure the sustainable sourcing of black tea leaves used for Kirin Gogo-no-Kocha, the company's popular tea brand.

Kirin Holdings, in collaboration with Mitsui Norin Co., Ltd., is developing a human rights due diligence initiative to address the challenges faced by tea plantation workers in Sri Lanka. The project, known as the Designated Tea Estates System, involves procuring and supplying tea leaves from designated estates that meet specific quality and sustainability standards. 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."

Through this initiative, Kirin Holdings recognizes the social issues faced by the estates and works to improve the wellbeing of the employees working on the estates. The company aims to procure 80% of the tea leaves purchased by Kirin Holdings from sustainable production areas by 2030, which includes estates where human rights due diligence has been carried out by Mitsui Norin or certified by the Rainforest Alliance.

In addition to the Designated Tea Estates System, Kirin Holdings is also involved in biodiversity conservation and other activities aimed at protecting the areas where raw materials are produced. The company has been actively promoting Rainforest Alliance certification and aims to improve the sustainability of raw material production areas. Currently, about 40% of the black tea leaves imported to Japan come from Sri Lanka, of which about 20% are used in Kirin Gogo-no-Kocha.

Kirin Holdings' commitment to sustainable sourcing and human rights due diligence aligns with the UN Guiding Principles on Business and Human Rights, which emphasize the responsibility of businesses to respect and protect human rights within their supply chains. By implementing these initiatives, Kirin Holdings is not only addressing the challenges faced by tea plantation workers in Sri Lanka but also contributing to the long-term sustainability of the tea industry and the well-being of the environment.

As investors, it is essential to recognize the importance of companies like Kirin Holdings that prioritize sustainability and ethical practices in their supply chains. By supporting such initiatives, we can contribute to a more sustainable and equitable future for all stakeholders involved in the production and consumption of tea and other commodities.