Norges Bank Terminates Its Observation On Kirin Holdings

Rhea-AI Summary

Kirin Holdings Company, Limited has announced that Norges Bank has lifted its observation of the company as of March 22, 2023, following the completion of the Myanmar business transfer. Initially placed under observation in March 2021 due to ethical concerns, Kirin's exit from the Myanmar market began in February 2022, culminating in the share transfer completion on January 23, 2023. The company has committed to measures for the fair treatment of local employees, including salary protections and severance. Kirin remains focused on its global business expansion across Food & Beverages, Pharmaceuticals, and Health Sciences.

Positive

• Norges Bank lifted its observation on Kirin Holdings, indicating improved investor confidence.
• Completion of the Myanmar business transfer aligns with ethical considerations and company strategy.
• Commitment to fair treatment of employees includes protections on salaries and severance payments.

Negative

• None.

TOKYO--(BUSINESS WIRE)-- Kirin Holdings Company, Limited (Kirin Holdings)(TOKYO:2503) today announces that Norges Bank has terminated its observation on Kirin Holdings on March 22 2023, recognizing the completion of the Myanmar business transfer.

1. Background

Based on a recommendation of Norway’s Council on Ethics^*1, Norges Bank placed Kirin Holdings under observation with the possibility of exclusion from its Government Pension Fund Global in March 2021^*2. Following Kirin Holdings’ decision on the withdrawal from the Myanmar business in February 2022 and the basic agreement on the share transfer of the local joint venture Myanmar Brewery Limited in June 2022, Kirin Holdings announced the completion of the share transfer on January 23, 2023^*3. Again, based on the recommendation of the Council on Ethics^*4, Norges Bank terminated its observation on Kirin Holdings on March 22 2023^*5.

In addition, the following measures have been agreed upon to take to ensure the treatment of local employees.

(1) Ensure freedom of choice in regards to employment
(2) Prohibition of disadvantageous changes in salary and other treatment for one year
(3) Provision equivalent to three months' salary for Myanmar employees (already disbursed prior to the share transfer)

*1	See Council on Ethics release dated June 23, 2020, “Recommendation to place Kirin Holdings Co Ltd under observation”
	(https://files.nettsteder.regjeringen.no/wpuploads01/blogs.dir/275/files/2021/03/Rec-Kirin-Observation-ENG.pdf)
*2	See Norges Bank release dated March 3, 2020, “Decisions on observation and exclusion”
	(https://www.nbim.no/en/the-fund/news-list/2021/decisions-on-observation-and-exclusion/)
*3	See Kirin Holdings release dated January 23, 2023, "(Progress of disclosed matters) Completion of Myanmar Brewery Limited Share Transfer"
	(https://info.kirinholdings.com/down.php?attach_id=11&otype=1)
*4	See Council on Ethics release dated March 22, 2023, (https://etikkradet.no/kirin-eng/)
*5	See Norges Bank release dated March 22, 2023, “Decisions on observation” (https://www.nbim.no/en/the-fund/news-list/2023/decisions-on-observation/)

2. Kirin Group's Human Rights Policy

In accordance with the Guiding Principles on Business and Human Rights, endorsed by the United Nations Human Rights Council in 2011, Kirin Holdings created the Kirin Group Human Rights Policy in 2018.
The Kirin Group has expanded its business from Food & Beverage, Pharmaceuticals, and Health Science, and its business activities have spread around the world. Respect for human rights is a foundation for all of Kirin Group business activities. The Kirin Group conducts its business activities in line with this Kirin Group Human Rights Policy.
[Reference] Kirin Group's Human Rights Policy
https://www.kirinholdings.com/en/impact/community/2_1/policies/

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, 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20230322005808/en/

Press Contact

Corporate Communication Department, Kirin Holdings Company, Limited

Nakano Central Park South, 4-10-2 Nakano, Nakano-ku, Tokyo

+81-3-6837-7028

https://www.kirinholdings.com/en/

kirin-cc@kirin.co.jp

Source: Kirin Holdings Company, Limited

FAQ

When did Norges Bank terminate its observation on Kirin Holdings?

Norges Bank terminated its observation on Kirin Holdings on March 22, 2023.

What led to Norges Bank placing Kirin Holdings under observation?

Norges Bank placed Kirin Holdings under observation in March 2021 based on recommendations from Norway’s Council on Ethics regarding ethical concerns.

What were the key actions taken by Kirin Holdings regarding its Myanmar business?

Kirin Holdings announced its withdrawal from the Myanmar market in February 2022 and completed the share transfer of Myanmar Brewery Limited on January 23, 2023.

What measures has Kirin Holdings implemented for its employees in Myanmar?

Kirin Holdings has ensured freedom of choice in employment, prohibited salary reductions for one year, and provided severance equivalent to three months' salary.

What is Kirin Holdings' focus after exiting the Myanmar market?

Kirin Holdings is focused on expanding its business in Food & Beverages, Pharmaceuticals, and Health Sciences globally.