# Kirin Takes CSV Management to a New Dimension: Targeting Health Contributions for 125 Million People

Key Metrics at a Glance

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Three Key Figures Illustrating the Evolution of CSV Management

The management indicators for Kirin Holdings ("Kirin") from 2023 to 2025 clearly demonstrate that its CSV (Creating Shared Value) management is not merely a slogan, but has entered an execution phase deeply rooted in every aspect of its business activities. Of particular note are the specific numerical targets and progress in three areas: "Business," "Organization," and "Environment."

1. Health Contribution to 125 Million People: Social Impact of the Health Science Business

The expansion of the Health Science domain symbolizes Kirin's business portfolio transformation. The company has set an ambitious goal to create a social impact for 125 million people through the Group’s health science products by 2025 ¹. This reflects a strong commitment to go beyond the traditional framework of the beverages and alcohol business and place the solution of "health" issues at the core of its operations. This overarching goal is supported by specific KPIs, such as reaching 2.45 million continuous consumers of Lactococcus lactis strain Plasma ² and 2.37 million users of Kyowa Hakko Bio's Citicoline-formulated products ³. Furthermore, in the pharmaceutical business, the company aims to expand the launch of the therapeutic drug "Crysvita" to over 50 countries and regions ⁴. The numbers reveal a strategy aimed at creating continuous value from "Food" to "Medicine."

2. Creating 310,000 Hours Annually: Human Capital Management Accelerated by Generative AI

Under the vision "Our people make the difference" ⁵, Kirin is accelerating work-life reforms through technology. The symbol of this effort is the introduction of the generative AI "BuddyAI." Deployed for 15,000 employees across domestic group companies ⁶, the first phase is expected to reduce labor by 310,000 hours per year ⁷. The significance of this "310,000 hours" is substantial. This is not just cost reduction through operational efficiency; it is intended to allow employees to redirect the newly created time toward higher value-added creative work and new challenges. This is closely linked to the company's goal of fostering a "culture that embraces diversity and encourages challenges" ⁸, embodying the management philosophy that investment in human capital directly leads to enhanced organizational capabilities.

3. Toward a 28% GHG Reduction: Steady Commitment to the Environment

One of Kirin's CSV Purposes is to "pass on a sustainable global environment to the next generation through positive impact" ⁹, and the company manages its progress through specific numerical targets. The reduction rate of GHG emissions in Scope 1+2 has progressed steadily from 18% in 2023 ¹⁰ to 23% in 2024 ¹¹, with a target of 28% for 2025 ¹². This stable pace of reduction suggests that company-wide energy efficiency improvements and the transition to renewable energy are proceeding as planned, rather than through ad-hoc measures. Similarly, the company has set a high target for the usage rate of recycled resin in PET bottles, moving from 28% in 2023 ¹³ to 40% in 2025 ¹⁴, clarifying its stance on leading the transition to a circular economy.

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"A Joy Brings Us Together" — Kirin’s Unwavering Core of CSV Management

At the heart of Kirin’s management lies a consistent philosophy. The management philosophy—"The Kirin Group fulfills its responsibility to the future by spreading the 'joy of food and health' through craftsmanship that respects nature and people, contributing to the realization of an enriched society" ¹⁵—is the crystallization of a philosophy cultivated over more than 100 years of business activities.

This philosophy has merged with the modern management language of CSV, evolving into a clear vision to become a "global leader in CSV" ¹⁶. For Kirin, CSV is not something peripheral to the business like traditional CSR activities; it is the management itself ¹⁷. This ideology is broken down into four specific CSV Purposes: "Health" ¹⁸, "Community" ¹⁹, "Environment" ⁹, and "Responsibility as an Alcohol Manufacturer" ²⁰.

What makes this philosophical framework superior is that it does not end with abstract words; it is directly linked to business strategy and KPIs. For example, the "Health" purpose is tied to the strategy of expanding the Health Science business and translated into the measurable target of "social impact for 125 million people" ¹ mentioned earlier. Ultimately, a consistent narrative is built where these activities lead to the realization of the corporate slogan, "A Joy Brings Us Together" ²¹. This strong bond between philosophy and practice can be called the foundation of Kirin’s sustainable growth.

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From Food to Medicine — CSV Purpose Embodied by the Health Science Business

The rapid growth of the Health Science business is the most representative element of Kirin's CSV management. This is a strategic pivot that expands the "new joy of food and health" ¹⁵ stated in the management philosophy from the traditional "Food" domain into "Wellness" and further into "Medical" domains.

At the core of this is the proprietary ingredient "Lactococcus lactis strain Plasma." Kirin is developing products that leverage the functionality of this ingredient, aiming to expand the number of continuous consumers to 2.45 million by 2025 ². This is not merely a sales volume target. It is the embodiment of the CSV Purpose "Health" ¹⁸—establishing the new health habit of "immune care" in society and contributing to disease prevention.

Furthermore, at Kyowa Hakko Bio, a group company, the number of users of products containing "Citicoline," which supports the maintenance of brain function, has reached 2.37 million ³, with an eye toward contributing to the challenges of an aging society. In the pharmaceutical business, Kyowa Kirin has set a goal to deliver the therapeutic drug "Crysvita" to more than 50 countries and regions by 2025 ⁴, bringing hope to patients suffering from rare diseases.

These initiatives show that Kirin is driving value creation to solve social issues across the three domains of "Food," "Medicine," and "Health Science" ²², based on its core technologies in fermentation and biotechnology. The numbers prove that this philosophy is steadily bearing fruit as business results.

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Creating 310,000 Hours Annually — Generative AI "BuddyAI" Opens New Frontiers in Human Capital Management

Kirin's strength is found not only in its excellent business portfolio but also in its investment in the "people" who support it. The company places "Respect for Humanity" ²³ as its basic human resources philosophy and holds a clear vision that "Our people make the difference" ⁵. The key measure for achieving this vision is the use of technology.

The generative AI "BuddyAI," which will be fully introduced through 2025, is a symbol of this. The impact of reducing 310,000 labor hours annually ⁷ for 15,000 employees ⁶ is far beyond the introduction of a mere efficiency tool. The true aim of this measure is to create an environment where employees freed from routine work can pour their time and passion into more creative and high-value-added work—namely, the creation of "new joy."

This can be interpreted as a strategic investment to root the "One KIRIN" Values—specifically "Passion" ²⁴ and "Diversity" ²⁵—within the organization. Employees from diverse backgrounds can take on challenges with free thinking, using AI as a partner. Such a "culture that encourages challenges" ⁸ will be the driving force for sustainable corporate growth in an era of rapid change. The figure of 310,000 hours is the "time asset" Kirin has secured for future innovation.

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40% Recycled PET, 28% GHG Reduction — Pursuing a "Positive Impact" in Harmony with the Planet

Kirin's CSV management demonstrates commitment through specific figures not only in business and organization but also in coexistence with the global environment. The creation of a "positive impact" as stated in the CSV Purpose "Environment" ⁹ is driven by the dual pillars of reducing environmental burden and regenerating natural capital.

Containers and packaging are unavoidable environmental issues for beverage manufacturers. In response, Kirin has set a challenging goal of increasing the usage ratio of recycled PET resin in Japan to 40% by 2025 ²⁶. Given that the actual figure for 2023 was 28% ¹³ and the target for 2024 was significantly raised to 38% ²⁷, it is evident that the company is accelerating technical development and supply chain construction to achieve these goals.

Progress in climate change countermeasures is also steady. The reduction rate for the entire Group's GHG emissions (Scope 1+2) is planned to progress steadily year by year, from 18% in 2023 to the 2025 target of 28% ¹². Furthermore, regarding water resources—a critical management resource—the company has set a target to keep water usage intensity at manufacturing sites with high water stress below 2.4 L/L by 2025 ²⁸, striving to build a sustainable production system. These numbers serve as evidence that Kirin views environmental issues not only as business risks to be managed but as vital management indicators for fulfilling its responsibility to the future.

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Analyzing Trends: The Trajectory from 2023 to 2025

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The Current State and Future Outlook of CSV Management

Kirin's strategies and numerical targets from 2023 to 2025 clearly indicate that the company is attempting to elevate CSV management to a new stage. The alignment of philosophy, business, organization, and environment to achieve both social issue solutions and economic value creation is truly fitting for a "global leader in CSV" ¹⁶.

Strength: Strong Consistency Between Philosophy and Execution

Kirin's greatest strength lies in the fact that its management philosophy, business strategy, ESG targets, and human capital measures are all linked in a consistent narrative. The philosophy of "new joy of food and health" ¹⁵ leads to the business goal of "impact on 125 million people" ¹ in the Health Science business, which is supported by the "creation of 310,000 hours" ⁷ that empowers employees' challenges. This "walk the talk" management style has earned the trust of stakeholders and serves as the foundation for sustainable growth.

Challenge: Profitability of the Health Science Business and Synergy with Existing Businesses

While the Health Science business holds great potential in terms of social impact, it may still take time to establish profitability equivalent to the existing alcohol and beverage businesses and to drive the growth of the Group as a whole. How to balance profitability during this transition period of the business portfolio will be key. Additionally, merging the organizational cultures of the different business domains of "Food" and "Medicine" to maximize group-wide synergy will be a critical task ahead.

Future Points of Interest: Converting Social Value into Economic Value

The focus moving forward is on how the social value generated through CSV management (such as the number of people contributing to health and the reduction of environmental burden) can be converted into sustainable economic value (corporate value, stock price). For instance, will the 310,000 hours ⁷ created by "BuddyAI" bear fruit as specific innovations or new businesses, becoming new revenue streams? Whether investors and the market can properly evaluate the social impact created by Kirin and create a virtuous cycle where it is reflected in corporate value will determine the company's next stage.

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Footnotes

出典

Footnotes

1. Kirin Group Integrated Report, p.10, "Health: Progress of Medium-term Health Science Strategy," (FY2025) ↩ ↩² ↩³

2. Kirin Group Integrated Report, p.10, "Health: Progress of Medium-term Health Science Strategy," (FY2025) ↩ ↩²

3. Kirin Group Integrated Report, p.45, "Health," (FY2024) ↩ ↩²

4. Kirin Group Integrated Report, p.45, "Health," (FY2025) ↩ ↩²

5. KIRIN Integrated Report 2023, p.29, "Overview of the Kirin Group’s Human Resources Strategy," (FY2023) ↩ ↩²

6. Kirin Group Integrated Report, p.17, "Case Study: Achieving Operational Efficiency with 'BuddyAI'," (FY2025) ↩ ↩²

7. Kirin Group Integrated Report, p.17, "Case Study: Achieving Operational Efficiency with 'BuddyAI'," (FY2025) ↩ ↩² ↩³ ↩⁴

8. Kirin Group Integrated Report, p.5, "Passing on a Culture that Embraces Diversity and Encourages Challenges to Future Generations," (FY2025) ↩ ↩²

9. KIRIN Integrated Report 2024, p.11, "CSV Purpose," (FY2024) ↩ ↩² ↩³

10. KIRIN Integrated Report 2023, p.76, "Non-financial Metrics: Environment - Climate Change," (FY2023) ↩ ↩²

11. Kirin Group Integrated Report, p.46, "Environment," (FY2024) ↩ ↩²

12. Kirin Group Integrated Report, p.10, "Environment: Climate Change," (FY2025) ↩ ↩² ↩³

13. KIRIN Integrated Report 2024, p.27, "Non-financial Targets," (FY2023) ↩ ↩² ↩³

14. Kirin Group Integrated Report, p.10, "Environment: Containers and Packaging," (FY2025) ↩ ↩²

15. KIRIN Integrated Report 2024, p.11, "Value Creation Model," (FY2024) ↩ ↩² ↩³

16. Kirin Group Integrated Report, p.35, "Message from New Officers," (FY2025) ↩ ↩²

17. KIRIN Integrated Report 2023, p.10, "The Kirin Group’s Value Creation Model," (FY2023) ↩

18. KIRIN Integrated Report 2024, p.11, "CSV Purpose," (FY2024) ↩ ↩²

19. KIRIN Integrated Report 2024, p.11, "CSV Purpose," (FY2024) ↩

20. KIRIN Integrated Report 2024, p.11, "CSV Purpose," (FY2024) ↩

21. Kirin Group Integrated Report, p.51, "Vision," (FY2025) ↩

22. KIRIN Integrated Report 2024, "Responsibility as an Alcohol Manufacturer," (FY2024) ↩

23. KIRIN Integrated Report 2023, p.29, "Overview of the Kirin Group’s Human Resources Strategy," (FY2023) ↩

24. KIRIN Integrated Report 2024, p.9, "Corporate Policy," (FY2024) ↩

25. KIRIN Integrated Report 2024, p.9, "Corporate Policy," (FY2024) ↩

26. Kirin Group Integrated Report, p.44, "Non-financial Metrics," (FY2025) ↩

27. KIRIN Integrated Report 2023, p.17, "Non-financial Targets - Environment," (FY2024) ↩ ↩²

28. KIRIN Integrated Report 2023, p.109, "Risk Management," (FY2025) ↩