HONG KONG, May 2, 2024 /PRNewswire/ -- China Mengniu Dairy Company Limited and its subsidiaries (together as "Mengniu," "the Company," or "the Group") (Stock Code: 2319) today released the dairy industry's first Nature-related Information Disclosure Report ("TNFD Report") in celebration of Earth Day. In it, the Company outlines its initiatives and achievements in managing nature-related risks in its production process and supply chain. The TNFD Report enhances the transparency Mengniu's corporate governance and demonstrates its commitment to promoting the sustainable development and green transformation of the dairy industry.
Compliance with international standards to apply sustainable operations throughout the value chain
The TNFD Report is based on the recommendations of the Taskforce on Nature-related Financial Disclosures ("TNFD"), which were issued in September 2023. It also incorporates references to international standards, including the Kunming-Montreal Global Biodiversity Framework ("GBF") and GRI Standards issued by the Global Reporting Initiative ("GRI"). The TNFD Report examines Mengniu's relationship with the environment and outlines the dependence and impact on nature that its operations have. It also identifies the evolving risks and opportunities the environment presents and highlights how Mengniu is mitigating and managing these risks to enhance its resilience and sustainable development strategy.
In preparing the TNFD Report, Mengniu applied an analysis framework consisting of four parts: governance, strategy, risk and impact management, and metrics and targets based on the Recommendations of the Taskforce on Nature-related Financial Disclosures. The Company adopted the LEAP approach (Locate, Evaluate, Assess, Prepare) to assess 68 of its factories both domestically and internationally. The scope of the assessment was expanded upstream along the value chain to include pastures which the Company sources raw milk from and holds an interest or a controlling stake in. The Company assessed whether these factories and pastures were located in habitats of endangered species, biodiversity conservation areas, or biodiversity-sensitive zones, as well as the related risks and impacts. This provides critical reference for the Company's governance, strategy, risk management, and capital-allocation decisions.
Always promoting sustainable development strategies and imparting Mengniu's wisdom
The dairy industry is closely connected to nature, making environmental factors critical to Mengniu. As a result, Mengniu places strong emphasis on the natural world in its "GREEN" sustainable development strategy. It has identified two key pillars of its strategy: "Environment-Carbon Net-Zero" and "Collaborative & Accountable Ecosystem," which address the environmental impact its operations and supply chain have on the environment. Mengniu has also unveiled dual-carbon and biodiversity conservation strategies, setting goals of "achieving peak carbon by 2030 and carbon neutrality by 2050," as well as a "zero deforestation by 2030" program.
Over the years, Mengniu has made significant achievements in the construction of ecological farms, utilizing green procurement supply chains, and promoting green production. Modern Dairy of Mengniu has been an innovator in the construction of ecological farms. Its anaerobic biogas fermentation system is considered to be an excellent case of reducing carbon emissions in the industry. It has been included in reports by the United Nations Global Compact (UNGC) and has received the "Green Development Typical Case" award from the China Dairy Industry Association for its efforts to reduce emissions, protect the environment and apply sustainable development practices to its production processes. As for green procurement, Mengniu is focused on the responsible procurement of paper packaging, soybean meal, and palm oil. In 2023, it achieved a Forest Stewardship Council (FSC) certification rate of up to 89.1% for its primary internal packaging paper. The Company also made significant progress in being able to trace the sources of its palm oil. Mengniu and its upstream soybean meal suppliers and merchants jointly signed a "zero deforestation" supply chain agreement. Mengniu has also made significant progress in green production. This includes 30 of its facilities being certified as national-level green factories, 23 enterprises with water conservation certification, nine factories certified as "waste-free," five factories certified for producing no waste that goes to a landfill, two factories given the AWS Water Management certification, and the Qujing factory receiving a zero-carbon certification for two years in a row.
Through the TNFD Report, Mengniu is highlighting to stakeholders its achievements and outlining future plans to identify and assess its environmental impact and dependency as well as managing risks and opportunities. The Company will improve its environmental transparency and credibility, while strengthening the cooperation and communication between Mengniu and its stakeholders. Mengniu will continue to optimize and improve its management system for environmental risks and opportunities, contributing its wisdom to advance global biodiversity governance and achieve sustainable development goals.
About China Mengniu Dairy Company Limited
China Mengniu Dairy Company Limited and its subsidiaries mainly manufacture and distribute quality dairy products in China. It is one of the leading dairy product manufacturers in China, with MENGNIU as its core brand. Mengniu offers diversified products including liquid milk products, ice cream, milk formula and cheese. Mengniu ranked 8th in the 2023 "Global Dairy Top 20" list published by Rabobank. In March 2014, Mengniu became a Hang Seng Index constituent, making it the first blue-chip Chinese dairy product manufacturer. In 2023, Mengniu's MSCI ESG rating was elevated to AA, distinguishing it as the only comprehensive dairy company in China to achieve this rating. Mengniu is a constituent of the Hang Seng Corporate Sustainability Index, Hang Seng (Mainland and Hong Kong) Corporate Sustainability Index, Hang Seng Corporate Sustainability Benchmark Index and HSI ESG Enhanced Select Index.
