Tea with Integrity Implementing Human Rights Due Diligence for Sustainable Sourcing of Sri Lankan Tea
Kirin Holdings Company Limited (Kirin Holdings) and Mitsui Norin Co., Ltd. (Mitsui Norin) have launched a human rights due diligence initiative focused on the tea plantations in Sri Lanka. The primary goal of this initiative is to ensure that black tea leaves used for Kirin Gogo-no-Kocha are sourced sustainably, in a way that respects human rights and improves conditions for workers involved in tea cultivation.
In recent years, Kirin Holdings and Mitsui Norin have been actively working together to implement the Designated Tea Estates System, which aims to procure tea leaves from selected, designated estates. This system was created to establish stable and consistent quality while addressing the broader issue of human rights risks in tea farming. It is structured to reduce and prevent potential human rights violations through a combination of new questionnaires and on-site audits at these designated estates. This project’s first phase will focus on four tea estates, but the long-term plan is to expand it further. By 2030, Kirin Holdings plans to source 80% of the tea leaves purchased for Gogo-no-Kocha from estates that meet sustainable and human rights standards. This goal involves not only procuring tea leaves that adhere to sustainability criteria but also addressing the social challenges faced by the workers on these estates.
The sustainable production areas referenced in the company’s plans include tea estates where human rights due diligence has been conducted by Mitsui Norin, as well as those certified by the Rainforest Alliance. This demonstrates Kirin Holdings’ commitment to improving human rights conditions across its supply chain, particularly in areas where the company sources significant amounts of raw materials, like tea leaves from Sri Lanka.
Kirin Holdings has been incorporating human rights due diligence throughout its supply chains since 2018. This is in alignment with global standards, specifically the UN Guiding Principles on Business and Human Rights. The company’s efforts are further supported by the Kirin Group Human Rights Policy, which guides all its activities. Kirin Holdings has already conducted human rights due diligence in various other sectors, including coffee beans from Laos, soybeans from China, tea leaves from Sri Lanka, grapes from Argentina, and sugarcane from Brazil. With these initiatives, the company has gained valuable experience and knowledge, which will be applied to its ongoing efforts in Sri Lanka with Mitsui Norin. Any issues that arise from these initiatives will be resolved in collaboration with both Kirin Holdings and Mitsui Norin to ensure the best outcomes for workers and the environment.
Apart from focusing on human rights, the Kirin Group is also working to address other pressing concerns related to the sourcing of raw materials, including biodiversity conservation. The company is committed to protecting the ecosystems in the regions where its raw materials, such as tea leaves, are produced. As part of its ongoing efforts, Kirin Holdings also works with the Rainforest Alliance and has introduced a Regenerative Scorecard in December 2024. This initiative promotes regenerative agriculture, empowering farmers to adopt sustainable farming practices that enhance soil health, increase biodiversity, and mitigate climate change. This tool will be available to farmers and will help them to assess and improve their agricultural practices to ensure they contribute positively to both the environment and the well-being of workers.
Kirin Holdings’ efforts in Sri Lanka come at a time when the country’s plantations are facing challenges related to climate change, land-use change due to urbanization, and other environmental pressures. These issues have been increasingly affecting the long-term sustainability of tea farming in the region. In response, Kirin Holdings published its Environmental Report 2022 in July 2022, marking a significant milestone. The report was the first of its kind in the world to trial the disclosure of natural capital, particularly in relation to Sri Lankan tea estates, based on the LEAP (Leveraging Environmental Aspects for Performance) approach advocated by the Taskforce on Nature-related Financial Disclosures (TNFD). This approach aims to make the environmental impact of businesses more transparent and quantifiable, allowing companies to better manage and reduce their natural resource consumption.
Currently, Sri Lanka remains a significant source of black tea leaves, with about 40% of Japan’s imported tea coming from the country. Approximately 20% of this is used in the production of Kirin Gogo-no-Kocha, the company’s popular brand. This makes the sustainability of Sri Lanka’s plantations a crucial aspect of Kirin Holdings’ operations. By addressing human rights concerns and environmental sustainability, the company aims to ensure that its supply chain remains both ethical and sustainable, benefiting workers, farmers, and the environment.
Kirin Holdings’ ongoing commitment to human rights due diligence, sustainable sourcing, and biodiversity conservation illustrates the company’s dedication to responsible business practices. By collaborating with Mitsui Norin and other partners, the company is working toward a future where its supply chains are transparent, sustainable, and respectful of the rights of workers and communities involved in raw material production. As the initiative grows and expands to more estates in Sri Lanka, Kirin Holdings hopes to create a ripple effect that will inspire broader positive change within the global tea industry and beyond.
In conclusion, the partnership between Kirin Holdings and Mitsui Norin represents a significant step forward in the responsible sourcing of tea and the broader effort to improve human rights and environmental practices across global supply chains. As the company works to achieve its goal of sourcing 80% of its from sustainable estates by 2030, it is addressing both social and environmental challenges head-on. The success of this initiative will have a lasting impact not only on the Sri Lankan tea industry but also on the broader movement toward more sustainable, ethical business practices worldwide.
