Beijing Sanyuan Foods Co Ltd
600429:CH CNE000001FX5
Key Information
HQ:
China
Market Cap:
$1.17bn
Primary Market:
Asia
Company Information
Company Summary
Beijing Sanyuan Foods produces, processes and sells dairy products, beverages, foods, cold foods and drinks, and ice creams in China. The Company mainly provides its products under the brand name of SANYUAN, including liquid milk series, powdered milk series, cheese series, and other solid dairy products.![Beijing Sanyuan Food Co Ltd](http://images.ctfassets.net/kc2xclar6nri/owC8yuLCCXImoXxGfFi9x/5cace790ebb683c1d45767892f506c3a/Beijing_Sanyuan_Food_Co_Ltd.jpg?fit=scale&w=1320&fm=webp)
Revenue
Total revenue:
$1.2bn
Revenue by Geography
Revenue by Protein
Revenue by Product Type
Disclosures
CDP ScoresLast Reviewed: 11/10/2023
CDP Climate | CDP Forests | CDP Water |
---|---|---|
No | No | No |
Science Based Target initiativeLast Reviewed: 03/10/2023
Target classification | Status | Date |
---|---|---|
Has not set SBT | - | - |
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
6/100
High Risk
Greenhouse Gas Emissions
1/100
Scope 1, 2 & 3 Target
5/100
Type of Target
The company does not have a science-based emission reduction target.
0/3
Strength of Target - Non-SBT
The company does not disclose whether it has set targets to reduce GHG emissions from Scope 1 and 2. However, it states that it aims to manage energy conservation and emission reduction and mentions increasing energy-saving technological transformations. It sources raw milk from suppliers, emissions from which would be accounted for in Scope 3. However, it has not disclosed emissions-related targets for Scope 3.
0.25/2
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 does not engage in innovative projects to reduce or mitigate emissions from animal farming
0/2
Quality of GHG Inventory
0/100
Quality and scope of GHG inventory Completeness
The company discloses its emissions related to wastewater. However, it does not disclose greenhouse gas emissions for its operations.
0/1.5
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 mentions that their greenhouse data is being audited by a third party.
0/1.5
Emissions Performance
0/100
Overall Emission Performance
The company does not disclose GHG emission for the reporting year.
0/5
Climate-related Scenario Analysis
0/100
Climate-related Scenarios Analysis Conducted
The company does not disclose whether it conducts climate-related scenario analysis.
0/1
Disclosure of Analysis Results on Material Risks
The company discloses that price fluctuations due to market supply and demand, breeding costs, seasons, and international trade affect the availability of raw milk and its prices. However, it does not disclose the projected impact of physical risks like drought or flooding on feed ingredients' availability and price volatility.
0/3
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 does not disclose information related to how it manages deforestation risks linked to soy. The company breeds and raises cattle for at least part of their lives in pastures. However, it does not disclose the composition of raw materials for cattle feed that is used by the company. Therefore, it is unknown if soy is sourced. China is increasingly importing soy from Brazil and Argentina. Soy is widely available in Latin America and deforestation/conversion risks linked to soy are high.
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 disclose information on how it engages soy suppliers on deforestation risks.
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 does not discuss innovations and/or practices to move towards sustainable feed sources.
0/0.5
Water Use & Scarcity
3/100
Water Use & Scarcity in Facilities
10/100
Monitoring Water Consumption & Withdrawals
The company does not disclose whether it conducts risk assessments for its processing facilities. However, it states that it undertakes environmental impact assessments to construct new sites. It is unclear if the company has assessed the risk of water stress at its existing sites and operations. It has various measures to limit water use, for example, water recycling and preventing water leaks. However, the company has not disclosed water consumption for the last reporting year.
0.25/0.75
Target to Reduce Water Consumption & Withdrawals
The company has not set a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.
0/1
Disclosure & Performance of Water Risks in Facilities
The company discloses the cost of soft water pipe installation, a circulating water pipe replacement project, and the cost of a project related to the conversion of the recirculation tank.
0.25/3.25
Water Use & Scarcity in Feed Farming
0/100
Supplier Engagement in Water Use in Feed Farming
The company does not disclose information relating to water scarcity risks in feed farming.
0/2.5
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. Nor does the company disclose information relating to water scarcity risks in animal farming.
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
35/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company states that its units shall comply with national and local environmental laws and regulations and discharge water within these standards. However, it does not disclose if it had zero penalties and complied fully with permits in the reporting year.
0/1.5
Transparency on Water Pollution Risks
The company discloses the chemical oxygen demand (COD) and measure of ammonia nitrogen discharged for its major subsidiaries. It reports that the total wastewater discharge in 2021 was 90 tons. However, the company has not disclosed wastewater discharge this year. It states that third-party organisations regularly audit wastewater discharge.
1.25/2
Performance on Wastewater Quality & Volume Discharged
The company discloses that it collects solid waste such as livestock manure and recycles it as a fertiliser to be used on farmland. The company's wastewater quality has improved at the aggregate level in 2022. The company reported the total wastewater discharge in 2021. However, the company has not disclosed wastewater discharge this year. Therefore, a comparison cannot be made.
0.5/1.5
Nutrient Management in Feed Farming
0/100
Supplier Engagement in Nutrient Pollution Risks
The company does not disclose information relating to nutrient management in feed farming.
0/4
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
10/100
Disclosure of Pollution Risks from Manure
The company discloses that it converts all solid waste such as livestock manure, to be used as fertiliser on farmland.
0.5/1.25
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 have any formal 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 discloses the use of innovative technologies and data-driven decision-making in operations and provides training in dairy production and inspection. However, it does not offer a statement in support of the Five Freedoms or any other animal welfare standard. Additionally, there is no explicit mention of training related to animal welfare, and it is unclear whether its methods address animal well-being or focus mainly on productivity and efficiency.
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 conducts audits for processing factories, product quality control, supplier evaluation, and product testing. However, it does not specifically mention audits or certifications for animal welfare at the farm level.
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 fails to disclose commitments or specific measures regarding the prohibition of tethering, monitoring of lameness prevalence, mastitis incidence, and providing appropriate bedding.
0/5
Working Conditions
11/100
Human Rights
5/100
Strength of Policy
The company discloses that it abides by the relevant provisions of the Labour Law of the People's Republic of China and adheres to the principles of diversity and equality.
0.25/1
Due Diligence Process
The company does not disclose how it assesses, monitors, mitigates, or remediates actual and potential human rights risks.
0/3
Evidence of Remediation
The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence
0/1
Fair Working Conditions
8/100
Policy for Direct Operations
The company discloses that it prohibits child labour and forced labour but does not explicitly state that it conducts audits to monitor compliance for these policies in its direct operations. The company does not explicitly discuss sick pay.
0.4/3
Monitoring & Discosure
The company does not discuss having an employee grievance reporting channel.
0/2
Safety & Turnover Data
10/100
Committee representation of workers
The company discloses that it attaches great importance to the health and safety of employees and conducts various safety training sessions but does not discuss whther it holds any health and safety certficiations.
0.25/2
Disclosure of safety and turnover data
The company does not disclose injury data for the reporting period but discloses zero safety production incidents and safety production casualties in 2019, 2020 and 2021. In addition, the company does not disclose the turnover rate for the reporting year.
0.23/3
Freedom of Association
20/100
Strength of Policies
The company solely operates in China, where unions are prohibited under law. That said, the company does not provide evidence of measures taken to alternative forms of employee representation. Furthermore, the company does not have a publically available supplier code of conduct that discusses freedom of association and collective bargaining.
1/3
Disclosure of Collective Bargaining Metrics
The company does not disclose the distribution of its workforce across existing contractual agreements.
0/2
Food Safety
19/100
Food Safety System
15/100
Certifications
In a report from the previous assessment period, the company discloses that it holds FSSC22000 certification, a GFSI-recognised certification. However, this year, the company states that it is improving the organisational structure of food safety management and has established a committee and an expert team. It has a food investigation system but does not provide food safety certifications in the current reporting period. Further, it does not confirm whether suppliers are expected to have a GFSI-recognised certificate.
0.25/3.5
Performance
The company discloses that in 2022, 464 batches were tested, and the pass rate of product quality was 100%. It also monitored 151 risk items and sampled 1086 batches of products, including pasteurised, fermented and modified milk; whole and changed milk powder; infant formula, etc. The product qualification rate was 100% for these batches. The company does not report the corrective action rate. It details the food traceability systems it has in place. However, these need to be confirmed to be consumer-facing. Further, it does not explicitly talk about any other consumer-facing technology for food safety.
0.5/1.5
Product Recalls & Market Bans
23/100
Product Recall Systems
The company identifies food safety as a material business risk. It has established a food safety management committee to strengthen the construction of food safety systems and experts and a food safety risk database of 97 risk indicators. However, it does not acknowledge recalls as a material business risk or disclose a recall system. No product recalls were detected in media screening.
0.13/3
Performance
The company does not disclose information related to market bans; none were detected in media screening.
1/2
Sustainability Governance
10/100
Assessment of a Company's Sustainability Governance
10/100
Board Sustainability
The company's board of directors approved the company's medium and long-term development strategy, investment and financing, and equity. However, it cannot be assumed that the board is mandated to cover all ESG issues. Furthermore, the company does not disclose if it conducted a materiality assessment in the previous two years or has board-level expertise in sustainability, innovation or food safety.
0.13/2
Incentives & Policy Engagement
The company has not disclosed executive monetary remunerations linked with climate performance.
The company discloses it engages with policy-makers in China on ESG disclosure regulation. However, its stance on ESG disclosure regulation is unclear, and it does not report disclosing engagements on other ESG risks and opportunities. Also, the company does not explicitly disclose memberships with trade associations, alliances and coalitions or whether it aligns its policy engagement strategies to restrict global temperature rise to 1.5°C.
0.1/2.5
Innovation & Benchmarking
The company discusses various initiatives it is adopting to innovate regarding food safety, product quality, and the development of modern animal husbandry. In 2022, the company launched 27 innovative products and developed an innovative dairy efficacy evaluation technology system and dairy safety risk prevention and control technology. The company is also building a scientific research team to enhance the ability of scientific and technological innovation. However, the company does not disclose how it benchmarks itself against peers in sustainability and innovation.
0.25/0.5
Alternative Proteins
10/100
Diversification of Products to Alternative Protein Sources
10/100
Existing product portfolio
The company does not externally acknowledge protein diversification as a material business issue nor disclose an approach to protein diversification.
0/2.5
Investing for future growth
However, it discloses that the product portfolio of its subsidiary, St. Hubert, includes plant spreads.
0.5/2.5
Members-only Content
To register as a member of the FAIRR network, please fill out the sign up form or if you need additional information on the FAIRR network, please contact investoroutreach@fairr.org.
Workstream Information
2023 Risk Score:
6/100
Level:
High Risk
Ranking:
60/60
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
Coller FAIRR Climate Risk Tool
Analysis Overview
Cost Increase
Cost Increase
EBIT Margin
Cost Increase (%)
60%
40%
20%
0%
-20%
-40%
-60%
Net Zero Aligned
BAU
High Climate Impact
Cost Breakdown
2030 | Net zero aligned | BAU | High climate impacts |
---|---|---|---|
Total Costs | 4% | 11% | 15% |
Carbon Tax | 4% | 9% | 11% |
Feed | -1% | 1% | 2% |
Feed Additives | N/A | N/A | 2% |
Heat Stress | 0% | 1% | 1% |
2050 | Net zero aligned | BAU | High climate impacts |
---|---|---|---|
Total Costs | 11% | 22% | 28% |
Carbon Tax | 11% | 20% | 21% |
Feed | -1% | 1% | 3% |
Feed Additives | N/A | N/A | 2% |
Heat Stress | 1% | 2% | 2% |
Members-only Content
To register as a member of the FAIRR network, please fill out the sign up form or if you need additional information on the FAIRR network, please contact investoroutreach@fairr.org.
Workstream Information
Last Updated:
5 April 2023
2023/24 Resources
Walkthrough Video 2023 Public Report 2023 (English) Public Report 2023 (Mandarin) Coller FAIRR Climate Risk Tool