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ESG Strategies
Sustainable development is one of Mengniu's core strategies. Mengniu integrates ESG (Environment, Social, Governance) into its corporate management and daily operates, effectively manages ESG risks, identifies corresponding business opportunities, and fulfils its responsibilities to all stakeholders, nourishing every life with healthy products and promising a healthier world.
The GREEN Strategy
With “promising a healthier world” as its vision, Mengniu will produce more nutritious products, enabling a better life and contributing to a more sustainable planet. It is the fundamental target for everything that Mengniu does. Mengniu has formulated a Group-level sustainable development strategy - the GREEN Strategy (Governance, Responsibility, Environment, Ecosystem, Nutrition) - to fully implement the UN Sustainable Development Goals (“SDGs”), comprehensively respond to stakeholders' demands, practice sustainable development, and create more value to the society.
The GREEN strategy includes 5 strategic pillars, namely, Governance- Sustainability, Responsibility- Common Prosperity, Environment- Carbon Net- zero, Ecosystem- Collaborative & Accountable, and Nutrition- Supreme & Inclusive. It integrates 15 issues including ESG governance, risk management, business ethics, charity, employee well-being, rural revitalisation, recycle, green operation, dual-carbon action, sustainable procurement, sustainable agriculture, biodiversity conservation, nutrition and health, good services and excellent quality, as well as 28 specific actions. Additionally, goals and roadmaps for every action have been set out.
Governance - Sustainability
Mengniu attaches great importance to the establishment of a sound corporate governance system and procedures. Under the GREEN strategy, Mengniu sets three topics comprising ESG governance, risk governance and business ethics, aiming at establishing a more independent, efficient and professional Board to implement thorough risk management and control, continuously improving the management of business ethics and protecting the rights and interests of small and medium shareholders.ESG governance
Risk management
Business ethics
3 actions
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.
Responsibility - Common ProsperityMengniu is also endeavoured to making its own development keep up with the pace of social development. It inherits the national strategy of rural revitalisation and common prosperity, giving full play to effectiveness of enterprises in the third distribution. Under the guidance of the GREEN strategy, Mengniu sets three topics comprising charity programs, employee well-being, and rural revitalisation, endeavouring to making Mengniu a social corporate and to maximise its value to the society.Charity
Employee Well-being
Rural Revitalisation
7 actions
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
Mengniu upholds the "people-oriented" development strategy, and is committed to creating a diverse and inclusive corporate culture, developing a comprehensive and scientific talent development system. It provides employees with a variety of company benefits and comprehensively guarantees employee’s occupational health and safety, building an internationally leading employer brand.
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.
Environment – Carbon Net-zeroMengniu is committed to establishing environmentally friendly green production systems and promise to achieve carbon neutrality in the whole industrial chain in 2050. Under the guidance of the GREEN strategy, it formulated three topics comprising recycling, green operation and dual-carbon actions, designed to better carry out the management of greenhouse gases, water resources and waste to minimise the impact on the environment.Recycle
Green operation
Dual-carbon Action
7 actions
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
Mengniu has formulated perfect green operation management system and policies, properly handles hazardous wastes and non- hazardous wastes, improves water resources management system and measures, continuously improves water efficiency, and actively carries out green related system certification.
Dual-carbon Action
Mengniu has committed to achieve carbon peaking by 2030 and carbon neutrality by 2050, and will steadily implement through 15 routes of 6 aspects, including raw milk, production, packaging, transportation, products and carbon offsets, and conduct climate change opportunity/risk response analysis.
7 actions
Recycling, green packaging, waste management, water resources management, green operation management, greenhouse gas management, climate risk identification.
Ecosystem - Collaborative & AccountableMengniu is committed to establishing a green and sustainable industrial ecosystem. Under the guidance of the GREEN strategy, it formulated three topics comprising sustainable procurement, sustainable agriculture and biodiversity conservation, aiming to promote upstream sustainable agricultural values, strengthen economic vitality of the dairy chain through the management, maintenance and sustainable use of natural resources, improve supply chain and enhance corporate brand value.Sustainable procurement
Sustainable agriculture
Biodiversity conservation
6 actions
Sustainable procurement
Mengniu has formulated supply chain ESG strategies and management measures, set supply chain ESG management targets, strengthened responsible raw material procurement, conducted raw material sustainability certification, carried out supply chain risk assessment and corrective actions, and continuously increased ESG training efforts and coverage for suppliers.
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 – Supreme & InclusiveMengniu is committed to providing superior quality products and services to consumers around the world. Guided by the GREEN strategy, the three issues including nutrition and health, quality service and excellent quality are set to cater for various health needs, provide more inclusive nutrition and safeguard a better life.Nutrition and Health
Good service
Excellent quality
5 actions
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.
Dual-Carbon Strategy
Dual-Carbon Strategy Roadmap of Mengniu
Goal
Phased Goals
Goal
Mengniu Strives to Achieve Carbon Peaking in 2030 and Carbon Neutrality in 2050
Phase I
To control the carbon emission intensity per ton of dairy product within 165 kgCO2e/t in 2025
Phase II
To achieve the peaking of absolute value of Scope 1 and 2 carbon emission, and control the carbon emission intensity per tonne of dairy product within 160 kgCO2e/t in 2030
Phase III
To achieve the carbon neutrality of Scope 1,2 and 3 in 2050
Sustainable development management system
Mengniu released the "Mengniu Group Sustainable Development System Management Approach" and established a three-tier management structure comprising the Sustainable Development Committee, the Sustainable Development Executive Committee and the Sustainable Development Working Group, which runs through the Board of Directors, the core management and executive-level. The Secretariat of the Sustainable Development Executive Committee was set up to coordinate the work and clarify the working mechanism of each responsible department, and hold regular annual committee meetings, executive committee meetings and quarterly meetings at the executive-level to realise the institutionalised, standardised and professional management of the Group's sustainable development work.
A three- level sustainability development system
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