TOKYO -- Kirin Holdings Company, Ltd. (Kirin Holdings) (TOKYO: 2503) and Kirin Beverage Company, Ltd. (Kirin Beverage) have been working with the Rainforest Alliance since October 2023 to develop a tool to encourage a transition to regenerative agriculture*1. The Regenerative Tea Scorecard, a tool to encourage the transition to regenerative agriculture, which has been developed in collaboration with the Rainforest Alliance since October 2023, is to be operational from December 2024. The operation is targeted at some tea plantations in Sri Lanka, the main producer of the tea leaves used in Kirin Gogo-no-Kocha, and is planned to be in operation on one large estate and 30 small farms in Sri Lanka by the end of 2025.
*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.