ESG

ESG governance

Mengniu has built a comprehensive ESG governance structure, linking management performance to sustainability goals and comprehensively enhancing stakeholders’ identification and engagement.

Risk management

Mengniu has built a comprehensive risk management framework and system and has conducted comprehensive & in-depth risk awareness training for employees.

Business ethics

Mengniu has built a comprehensive business ethics supervision framework, formulated anti-corruption policies, conducted business ethics training covering all employees, carried out business ethics audits and supervision, signed up to join international anti-corruption initiatives/alliances such as UNGC, and established an anti-corruption compliance monitoring mechanism for suppliers.

3 actions

ESG Governance, Risk Management, Business Ethics.

Charity

Mengniu has formulated a solid strategy on public welfare and charity. Through the platform of Mengniu Charity Foundation, it cooperates with is sub-brands to conduct diverse charity programs in the fields of inclusive nutrition, balanced development and environmental protection, to realise the charity’ vision of “Every life is born to excel”.

Employee Well-being

Human Rights Protection
Based on international standards such as the core conventions of the International Labor Organization (ILO) and the Universal Declaration of Human Rights, Mengniu has systematically constructed a human rights risk management mechanism. The Company has developed a human rights risk inventory and established investigation procedures to regularly identify risks within its operations and value chain, including forced labor, human trafficking, child labor, restricted freedom of association, lack of collective bargaining rights, unequal pay for equal work, discrimination, and occupational health and safety issues. For significant risks, specialized protection plans are formulated.

Occupational Health and Safety
Mengniu places high importance on occupational health and safety. The Company has developed the Environmental, Occupational Health and Safety, and Energy Management System Manual, which covers all links in the Group's industrial chain, all employees, contractors, and construction parties. The Company has formulated the Mengniu Health, Safety, and Environmental Protection Agreement, incorporating occupational health and safety management requirements for various business operations, and attached to the Group's corresponding contracts and agreements. In addition, Mengniu has established quantitative targets for safety production risk control and occupational hazard detection. Based on these targets, the Company systematically prioritizes action plans to mitigate safety and health risks, thereby enabling ongoing evaluation of progress in reducing and preventing occupational health and safety issues.
We have established comprehensive internal procedures for verifying employee work-related injuries and occupational diseases, implementing accident prevention measures to prevent incidents. In the event of a work-related injury, personnel at the scene must immediately take emergency measures and report the incident to the Company’s management and relevant departments according to established protocols, properly preserve the accident scene and related evidence, and diligently implement accident warnings and corrective measures. We establish accident records and an accident management ledger, and manage accidents involving contractors or suppliers occurring within the Company’s premises in accordance with the Company's accident management procedures.

Rural Revitalisation

With its characteristics of running through primary, secondary and tertiary ultra-long industrial chains, Mengniu closely combines industrial revitalisation with rural revitalisation, strengthens technical investment, implements industrial projects and carries out party building to contribute the power of dairy industry to the cause of national rural revitalisation.

7 actions

Charity, diverse inclusion, talent development, employee benefit, occupational health and safety, rural revitalisation, nutrition equality.

Recycle

Under the concept of lifecycle design and production, Mengniu is committed to designing more recoverable packages. It is also actively carrying out package recycling education for the consumers to reduce the impact of packaging on the environment fundamentally.

Green operation

Reducing Food Loss and Waste
Mengniu actively works to reduce food loss and waste by formulating the “Mengniu Group Guide to Opposing Food Waste” and carrying out related management work and projects. In the production process, the company sets phased raw material loss control targets, tracks raw material consumption through its production management system, and implements targeted consumption reduction plans to lower raw material loss. For unavoidable food waste, priority is given to sustainable reuse methods such as processing it into animal feed, generating biogas energy through anaerobic fermentation, using it as compost for the company’s green spaces or donating to community farms, thereby minimizing food waste. Furthermore, leveraging events like “World Environment Day” and “Low-Carbon Day,” we advocate for all employees to practice the “Clean Your Plate Campaign”.

Reducing Production Waste
Adhering to the principles of circular economy, Mengniu systematically promotes waste reduction and resource utilization through a full life-cycle management system of “Source Reduction - Process Control - End-of-Pipe Treatment.” Under “4R1D” packaging strategy, the Company continues to increase investment in green packaging R&D while encouraging the use of innovative methods to minimize production waste to the greatest extent.
The Company has established comprehensive environmental pollution prevention and control requirements for the entire process of solid waste generation, collection, storage, transportation, utilization, and disposal. It maintains standardized solid waste management ledgers in accordance with regulations. To ensure the compliance of waste disposal, Mengniu identifies various types of solid waste as required, stores them by category, and signs solid waste disposal contracts with qualified service providers for compliant disposal based on waste categories.

Water Management
Mengniu is committed to implementing sustainable water management practices, continuously conducting employee trainings on water efficiency management, and driving the transformation of water conservation concepts into actions.
We provide employees with systematic, specialized trainings on water efficiency management and regularly conduct courses to help them master water-saving knowledge. We also use environmental-related holidays as opportunities to launch promotional activities focused on green operations and water efficiency improvement. With the core goal of solving practical problems and improving on-site resource efficiency and environmental compliance, we raise the awareness of all employees regarding energy conservation and environmental protection.
In daily operations, we have innovatively proposed the Mengniu 3U (Save Use, Common Use, Recycle Use) water management strategy, which has been developed into eight prioritized water conservation measures. We encourage employees to actively implement these measures, independently identify opportunities for water-saving retrofits, and promote internal best practices, creating a virtuous cycle of continuous improvement. Through the combination of trainings and practices, Mengniu is steadily advancing the achievement of its water management goals.

Dual-carbon Action

Performance and Incentives
Mengniu encourages all employees to participate in energy conservation, emission reduction, and green supply chain management, which are integrated as climate targets into the performance evaluations at all levels and are encouraged by incentive measures to continuously advance climate change management.
The Company incorporates the achievement of climate change goals into the KPI assessments of senior management, which includes ensuring compliance with pollutant discharge standards, promoting waste utilization, improving the control mechanisms for carbon reduction targets, and strengthening the implementation of carbon reduction initiatives and the tracking of their results.
For environmental protection heads and managers of business units and factories, the Company has established recognition mechanisms. Through annual awards such as the “EHS Excellent Team Award,” the “EHS Energy Conservation and Low-Carbon Practice Improvement Award,” and the “EHS Expert Award,” the results are linked to promotion evaluations. Concurrently, through the “Mengniu's Talents on Action” collaborative platform, the Company advocates for green commuting, green office practices, and green living among employees, and quantifies low-carbon behaviors, allowing employees to exchange points for green benefits. Each year, “Climate Action Star” certificates are awarded, which are also linked to the annual merit evaluation.
Mengniu has set a base year of 2020 (with a carbon emission intensity of 169 kgCO2e per ton of dairy products) and aims to control the carbon emission intensity per ton of dairy product within 165 kgCO2e/t in 2025, and to control the carbon emission intensity per tonne of dairy product within 160 kgCO2e/t in 2030.

7 actions

Recycling, green packaging, waste management, water resources management, green operation management, greenhouse gas management, climate risk identification.

Sustainable procurement

In accordance with the Ten Principles of the United Nations Global Compact, the UN Guiding Principles on Business and Human Rights, and the OECD Guidelines for Multinational Enterprises, Mengniu has established the Supplier Code of Conduct, which requires all collaborating suppliers to sign and implement the code, thereby standardizing their human rights practices.

Sustainable agriculture

Mengniu has formulated policies and management systems related to animal welfare protection, explored sustainable agriculture actions, carried out projects to reduce food waste along the whole chain in aspects such as design, R&D, production, supply, employee actions and public welfare cooperation, and worked closely with partners from upstream and downstream industry chain to reduce food loss and waste in the value chain.

Biodiversity conservation

Mengniu released a special "Biodiversity Report", clarifying 3 pathways, 8 commitments and 5 actions to carry out projects such as reducing the risk of deforestation and public welfare activities for biodiversity conservation.

6 actions

Responsible supply chain management, green procurement of raw materials, animal welfare, management of renewable agriculture, forest conservation action and biodiversity conservation.

Nutrition and Health

Mengniu has been continuously launching more organic and innovative products, increasing the health attribute of products, satisfying various nutrition and health needs of different groups of people, and reducing food waste.

Good service

Mengniu has developed a sound responsible marketing management system, conducted responsible marketing training, properly protected consumer privacy, established a sound information security and network security management system, and conducted internal training on information security covering all employees.

Excellent quality

Mengniu established a complete 4Q quality management system, with scientific and strict standards for quality management, to manufacture "perfect products" with excellent quality. At present, Mengniu’s core standards for major products have exceeded the food standard of EU.

5 actions

Nutrition and health, responsible marketing, consumer services, information protection, quality control.