Want Want China Holdings Ltd
151:HK KYG9431R1039
Key Information
HQ:
China
Market Cap:
$7.72bn
Primary Market:
Asia
Coller FAIRR Protein Producer Index
Analysis Overview
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins
Analysis Breakdown
Risk Score
24/100
High Risk
Greenhouse Gas Emissions
35/100
Scope 1, 2 & 3 Target
24/100
Type of Target
The company does not have a science-based emission reduction target.
0/3
Strength of Target - Non-SBT
The company has set a target to reduce 13% greenhouse gas emission intensity by FY2025, with FY2020 as the base year. The target covers only the company's Chinese operations.
1.19/2
Innovation on GHG Emission Reduction
0/100
Innovation to Reduce Agriculture Emissions
The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.
0/1
Feed Farming Innovation
The company does not engage in innovative projects to reduce or mitigate emissions from feed farming
0/2
Animal Farming Innovation
The company is investing in improved wastewater treatment to reduce emissions from sludge. The extent of the innovation's roll out is unclear from the disclosure.
0/2
Quality of GHG Inventory
39/100
Quality and scope of GHG inventory Completeness
The company discloses 191,465.44 tonnes of Scope 1 and 302,314.53 tonnes of Scope 2 emissions in FY2022.
1.19/1.5
Feed & Animal Farming Emissions
The company does not disclose any information on GHG emissions from animal farming. The company does not disclose any information on GHG emissions from feed production. The company does not disclose any information on GHG emissions from land use change.
0/2
Transparency of GHG Inventory
The company has responded to CDP Climate Change 2022 and scored B. However, the reports are available to the investors. The company's Shandong Want Want Food Co., Ltd subsidiary emission data is verified by a third party.
0.75/1.5
Emissions Performance
70/100
Overall Emission Performance
The company's GHG emission decreased by 10.7% from 553,505.50 in FY2021 to 493,779.97 in FY2022. However, GHG inventory is incomplete since the company has not reported Scope 3 emissions.
3.5/5
Climate-related Scenario Analysis
40/100
Climate-related Scenarios Analysis Conducted
The company conducted climate-related scenario analysis during the reporting year. It identified and prioritised climate change risks and opportunities of three timeframes - short-term (0-1 year), medium-term (1-3 years) and long-term (3-10 years), and two dimensions of risk possibility and financial impact. It combined the impact matrix of physical risks under the RCP4.5 Scenario and RCP8.5 Scenario.
1/1
Disclosure of Analysis Results on Material Risks
The company discusses the projected impact of physical risks, such as how extreme weather caused by climate change might affect the output and price of the upstream agricultural products supply, thus affecting the cost and availability of raw materials that may further increase the production cost. However, it does not discuss mitigating measures to adapt to the projected impact of physical risks on feed ingredients' availability and price volatility. It references the risk of scorching weather but only discloses this in the context of its processing facilities. It mentions that increased pricing of GHG emissions may lead to higher energy costs and carbon taxes, negatively affecting the company's financial performance and production costs. However, it does not disclose how to mitigate and adapt to increased electricity and energy demand and prices. It recognises the risk of carbon taxes on business costs and discusses potential mitigation opportunities.
1/3
Disclosure of Financial Material Events & Alignment of CAPEX
The company does not disclose its commitment to align capital expenditures with its GHG targets.
0/1
Deforestation & Biodiversity
0/100
Deforestation/Conversion-free Target - Soy for Animal Feed
0/100
Risk Assessment to Identify High-risk Locations
The company sources soy for cattle. Therefore, soy is assumed to represent 2% or more of the total feed ingredients sourced.
0/0.5
Strength of Deforestation Commitment
The company does not disclose having a deforestation/conversion-free target for soy.
0/3.25
Transparency - Progress Against Commitment
The company does not report progress against its commitment. Nor did it responded to the CDP Forest Questionnaire in 2022.
0/1.25
Engagement, Monitoring & Traceability - Soy for Animal Feed
0/100
Supplier Engagement
The company does not reference deforestation in its supplier code of conduct or selection process. It encourages suppliers to engage in forest protection, conduct traceability management and reduce deforestation risks. However, it needs to provide details of its support to suppliers. It also needs to be clarified if this statement applies to soy procurement, as it only explicitly mentions palm oil and timber products when referring to forest-risk commodities.
0/1.25
Compliance monitoring & Traceability
The company does not disclose how compliance in monitored or what actions are taken if non-compliance occurs. Further, the company does no disclose the level of traceability it has of its soy supply chain.
0/3.25
Feed Innovation
The company is committed to practising sustainable agriculture, including rational use of agricultural chemicals and fertilisers, optimising water use, reducing environmental pollution, protecting soil health and preventing ecological damage. However, it needs to provide further detail about the innovations or practices it promotes. FAIRR recommends improved disclosure of its sustainable agricultural practices and the benefits this provides to soil health and biodiversity.
0/0.5
Water Use & Scarcity
31/100
Water Use & Scarcity in Facilities
83/100
Monitoring Water Consumption & Withdrawals
The company has conducted a risk assessment and concluded that nine facilities are exposed to water risk. As such, the company does not only operate in areas of low-water stress. The company discloses the location of these facilities. It disclosed total water consumption for the year and stated that it had adopted various water-saving measures. Want Want has also carried out three types of special water-saving projects, which it says could save 444,800 tonnes of water.
0.75/0.75
Target to Reduce Water Consumption & Withdrawals
The company has set a target to achieve a 10% improvement in water use efficiency by FY2025, using FY2018 as a base year. It reports that it has reached 70% of its target.
0.5/1
Disclosure & Performance of Water Risks in Facilities
The company discloses water withdrawals by source alongside the total water consumption in the last reporting period. It declares water withdrawals from nine water stress areas and a 20% increase in water-related capital expenditure. Want Want reports that it anticipates a 10% decrease in water-related OPEX. It audits violation information, water risk assessment, financial investment and income and financial expenditure. It has responded to CDP Water Security 2022. Want Want discloses a reduction in water withdrawals in FY2022. However, CDP Water Security 2022 reveals increased water consumption in FY2021.
2.88/3.25
Water Use & Scarcity in Feed Farming
9/100
Supplier Engagement in Water Use in Feed Farming
Want Want has disclosed its Water Policy in CDP Water Security 2022, stating improved water use efficiency. The company also states that water-related targets must be included within its supplier selection mechanisms. In addition, it says that it works with its critical raw material suppliers to improve water-related performance to reduce water risks. Want Want discloses that it plans to gradually promote water-saving measures for suppliers, focusing on reducing the water intensity of planting crops. However, it is not clear what steps are currently being taken.
0.45/2.5
Disclosure of Water Risks in Feed Farming
The company does not disclose feed water intensity, or the proportion of feed sourced from water stresses areas. Further, the company does not provide evidence that it is investing in sustainable feed production from a water use perspective.
0/2.5
Water Use & Scarcity in Animal Farming
0/100
Supplier Engagement in Water Use in Animal Farming
The company does not disclose the proportion of animal protein commodities produced and/or sourced in water-stressed areas. It does not disclose information addressing water scarcity in its animal supply chain, nor does it discuss guidance it offers to animal farmers/suppliers on water usage.
0/3
Disclosure of Water Risks in Animal Farming
The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.
0/2
Waste & Pollution
15/100
Wastewater at Facilities
40/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company states that it aims to treat 100% of wastewater. However, this target is not a time-bound quality target.
0/1.5
Transparency on Water Pollution Risks
The company disclosed its wastewater quality in FY2022. It discloses the volume of wastewater discharged in the reporting year. Want Want has responded to CDP Water Security 2022.
1/2
Performance on Wastewater Quality & Volume Discharged
The company states that professional disposal units dispose of the waste through various methods, including organic fertiliser and anaerobic power generation. However, it does not state that the company converts animal by-products from processing effluents into fertiliser or biogas. It discloses improved wastewater quality measures in Chemical Oxygen Demand (COD) emissions FY2022. The company's wastewater discharge decreased in FY2022 by 7.47%.
1/1.5
Nutrient Management in Feed Farming
4/100
Supplier Engagement in Nutrient Pollution Risks
Whilst the company does not refer to nutrient management in its supplier code of conduct, the company states that it is committed to practising sustainable agriculture. Part of this commitment is responsibly using fertilisers, protecting soil health and preventing ecological damage. It collaborates with suppliers to cut down pollution concentration from the source. However, this collaboration is referenced to crop production.
0.18/4
Innovation to Improve Nutrient Management in Feed Farming
The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.
0/1
Manure Management in Animal Farming
0/100
Disclosure of Pollution Risks from Manure
The company discloses that waste "sludge" is used for organic fertiliser and anaerobic power generation. However, this does not seem to include manure or effluents.
0/1.25
Supplier Engagement in Manure Management
The company does not make site-specific nutrient management plans a part of its supplier's contractual agreement and/or own farms management. Nor does it provides technical and/or financial support to suppliers and/or own farms to develop nutrient management plans and improve manure storage.
0/1.5
Innovation to Improve Nutrient Management in Animal Farming
The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovation in manure or provide evidence of a community engagement plan in relation to pollution.
0/2.25
Antibiotics
0/100
Policy on Antibiotics Use
0/100
Policy on Antibiotics Use
The company does not disclose any information regarding its antibiotics policy.
0/5
Disclosure of Quantity of Antibiotics Used
0/100
Disclosure of Quantity of Antibiotics Used
The company does not disclose the quantity of antibiotics used.
0/5
Animal Welfare
0/100
Animal Welfare Policy
0/100
Welfare Policy
The company does not disclose any information regarding its animal welfare practices.
0/2
Key Welfare Issues
The company does not state a commitment to engaging and training employees on animal welfare issues.
0/3
Assurance & Certification
0/100
Auditing & Assurance by an Animal Welfare Organisation
The company does not disclose animal welfare certifications or mention conducting internal animal welfare audits.
0/4
Public Reporting on Welfare
The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.
0/1
Performance on Key Material Risks
0/100
Performance on Key Material Welfare Risks by Protein
The company does not disclose information on prohibiting tethering, monitoring lameness prevalence, mastitis incidence, or appropriate bedding.
0/5
Working Conditions
31/100
Human Rights
10/100
Strength of Policy
The company commits in writing to uphold a people-oriented approach guided by international human rights conventions and labour standards such as the Universal Declaration of Human Rights (UDHR). However, it is unclear if its human rights policies also apply to its operations outside China.
0.5/1
Due Diligence Process
The company does not discuss how it monitors, assesses and mitigates actual and potential human rights risks in its own operations or supply chain.
0/3
Evidence of Remediation
The company does not disclose conducting human rights due diligence to identify human rights risks.
0/1
Fair Working Conditions
25/100
Policy for Direct Operations
The company prohibits harassment, discrimination, child labour and forced labour. However, the company does not commit to paying fair wages or mention sick pay. Furthermore, the company does not state whether it requires suppliers to prohibit harassment, discrimination, child labour and forced labour or promote fair wages.
0.76/3
Monitoring & Discosure
The company has established a whistleblower mechanism to encourage employees and suppliers to report integrity violations actively. However, the company does not explicitly mention that the mechanisms are anonymous or designed in consultation with stakeholders. The company did not have any complaints related to discrimination or harassment in the reporting year. However, the company does not disclose if it received complaints concerning other integrity violations.
0.48/2
Safety & Turnover Data
46/100
Committee representation of workers
The company provides high-level statements regarding its commitment to protecting the health and safety of all its workers. It has formulated a sound internal safety management system based on ISO 45001 standards. In addition, the group discloses that 18 of its factories have obtained ISO 45001 certification. However, it does not discuss the existence of health and safety committees.
0.4/2
Disclosure of safety and turnover data
The company's lost time injury frequency rate has increased from 0.831 in FY2021 to 0.937 in FY2022. The company discloses zero work-related deaths during the reporting period. In comparison, it had two fatalities in total in the three years prior to the reporting period. The company reports a 16.69% voluntary turnover rate in the reporting period. The turnover rate is disaggregated by age, region and gender but not by seniority.
1.9/3
Freedom of Association
43/100
Strength of Policies
Most of the company's operations are in mainland China and, thus, are exempt from promoting freedom of association. However, the company does not provide sufficient details of alternative representation methods or mention whether suppliers must set a policy on freedom of association and collective bargaining.
0.95/3
Disclosure of Collective Bargaining Metrics
The company discloses that 31% of employees have signed collective bargaining agreements. In addition, it discloses the number of full-time employees and the distribution of its workforce by age, status and region. However, the company does not reveal the number of part-time, hourly, or subcontracted workers it employs.
1.2/2
Food Safety
60/100
Food Safety System
55/100
Certifications
The company abides by the Food Safety Law of the People's Republic of China and the Product Quality Law of the People's Republic of China. Its 71 operating plants have obtained 127 standard certificates for quality and food safety systems, including FSSC 22000, BRCGS, China HACCP, ISO 22000 and ISO 9001. Some of these are GFSI certifications. It discloses an 88.7% coverage rate of GFSI-recognised standard accreditation. Further, it reports that it has established a sound supplier selection process, including verifying the supplier's quality and food safety system. It also mentions that it assesses and manages suppliers from different aspects, including quality and food safety, and sets up a rating system based on the assessment result. It manages its suppliers according to their rating, prioritising those with good ESG performance, including food safety qualifications. Qualification information of suppliers is reviewed every year. However, it is not clear whether it expects suppliers to have GFSI certification.
1.75/3.5
Performance
The company reports several key food safety performance rates, including a 100% pass rate for external inspections and quality inspections of finished products. Further, during the reporting period, it conducted 1095 internal audit activities relating to food safety. It also monitors supply chain risks through regular supplier audits and onsite factory inspections to check against reported information on the relevant raw materials. It notes that 100% of the risks discovered were solved, and related anomalies were intercepted.
1/1.5
Product Recalls & Market Bans
65/100
Product Recall Systems
The company strictly abides by the Food Recall Management Measures and other laws and regulations and has established a product simulation traceability mechanism and recall process. Further, it manages traceability through its SAP system. However, it does not provide detailed information on its product recall system. It had zero product recalls in the reporting period.
2.75/3
Performance
The company provided no disclosure on market bans during the reporting period; none were detected in the media screen.
0.5/2
Sustainability Governance
48/100
Assessment of a Company's Sustainability Governance
48/100
Board Sustainability
The company established an ESG Committee in August 2020, chaired by the group’s chief operating officer, to oversee and achieve the group’s sustainable development objectives. Also, the company conducted a materiality assessment in FY2021 and then further adjusted the materiality matrix for FY2022, identifying 254 topics as material issues this year. These include water resource and wastewater management, waste management, exhaust emission management, energy consumption management and environment-friendly activities. The company discloses that the ESG committee prioritises the material issues that form the materiality matrix. In addition, the company reports holding board-level expertise in innovation but not in food safety or sustainability.
1.38/2
Incentives & Policy Engagement
The company states that executive monetary remunerations are linked with sustainability performance. However, the company does not disclose the % of variable compensation linked to the metric.
The company provides details on trade association memberships. However, it has not disclosed engaging with civil or trade associations on ESG issues or if it aligns any policy-engagement activities to restrict global temperature rise to 1.5C.
0.75/2.5
Innovation & Benchmarking
The company promotes technological transformation and innovation to reduce pollution and lower wastewater content. The company also invests in innovative R&D systems, focusing on new products, packaging materials, quality improvement, and method development. In addition, it is focusing on nutrition and health outcomes, developing products with low sugar, fat, sodium, organic substances, reduced artificial ingredients and plant-based nutrients.
However, the company does not disclose how it benchmarks itself against peers in sustainability and innovation.
0.25/0.5
Alternative Proteins
25/100
Diversification of Products to Alternative Protein Sources
25/100
Existing product portfolio
The company understands the new trend and pursuit of consumers towards plant-based products. Therefore, it wants to capitalise on the opportunity to keep increasing the proportion of nutritionally fortified and plant-based products offered. However, it does not disclose a timebound target to diversify protein sources or sales/revenue linked to alternative protein sources.
0.25/2.5
Investing for future growth
The company has several plant-based products, including one that directly substitutes animal protein, the "Fix XBody Oat Milk". It mentions that it wants to seize the opportunity to keep increasing the proportion of nutritionally fortified and plant-based products offered to consumers. It intends to continue researching and developing various plant-based products to support this. However, it does not explicitly confirm that it invests in R&D for future growth beyond its current product offering.
1/2.5
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Workstream Information
2023 Risk Score:
24/100
Level:
High Risk
Ranking:
39/60
Main Protein:
Dairy
Assessed Proteins:
Dairy
Company Feedback Given:
No
Last Updated:
31 October 2023
2023 Resources
2023/24 Index Report Summary (Mandarin) 报告总结摘要(中文) Launch of the Coller FAIRR Protein Producer Index 2023/24 2023/24 Company Dialogue Questions 2023/24 Full Report Coller FAIRR Protein Producer Index