COFCO Joycome Foods Ltd

The company has not disclosed specific near-term greenhouse gas emission targets. While it maximises the collection and utilisation of biogas from wastewater treatment, recycles biomass energy for heating and electricity generation, and reduces fugitive methane emissions, it lacks a specific methane emission reduction target for animal farming.

During the reporting period, the company set environmental goals related to emissions and resource usage in production operations. It has integrated carbon peaking and carbon neutrality goals into its medium- and long-term development plans, supported by systemic analysis and external collaboration, though specific plans have not been publicly disclosed. The company reports implementing measures to mitigate climate risks, such as adopting renewable energy sources like solar and photovoltaic energy, upgrading to energy-efficient lighting with timers, enhancing production equipment with automatic shutdown mechanisms, and introducing heat recovery systems. While the company procures soy and corn as primary feed ingredients and imports beef, poultry, mutton, and lamb, it has not disclosed a reduction target for Scope 3 emissions associated with these activities. The company only briefly mentions assessing suppliers on energy conservation and environmental protection. FAIRR encourages the company to calculate and disclose its Scope 3 emissions, particularly from agriculture.

The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.

The company does not engage in innovative projects to reduce or mitigate emissions from feed farming.

The company provides a case study on improving energy efficiency at one of its farms by replacing electric heaters with an advanced ammonia compressor exhaust heat recovery system. This change saved 211,000 kWh of electricity and reduced carbon emissions by 128.73 tonnes in 2023. Additional measures like precise cooling zoning saved 121,100 kWh of electricity and decreased carbon emissions by 73.88 tonnes annually. The company also discusses using biotechnology in feed to optimise formulation and reduce nitrogen emissions without affecting animal productivity and meat quality. However, the extent of this innovation's implementation across the group remains unclear.

The company reports total greenhouse gas emissions of approximately 275,500 tonnes, comprising 108,500 tonnes from Scope 1 and 167,000 tonnes from Scope 2. Emission intensity is 0.22 tonnes per RMB10,000 revenue. However, the company does not disclose Scope 3 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.

The company does not disclose to the CDP climate change questionnaire. The company does not disclose whether the GHG inventory data is audited by a third party.

Between FY2022 and FY2023, the company reported a decrease in its Scope 1 emissions from 110,000 to 108,500 tons and Scope 2 emissions from 180,000 to 167,000 tons. This resulted in a total reduction of absolute emissions from 290,000 to 275,500 tons, a decrease of 5%. The company indicates it generated biogas as energy to reduce methane emissions but does not provide quantitative data on this decrease.

The company does not disclose information on a climate-related scenario analysis.

The company recognises the risk of feed price volatility due to market fluctuations linked to supply and demand, diseases, government policies, and weather conditions in key agricultural areas. In 2023, it conducted 50 soybean meal and 162 bulk raw materials market analysis meetings to discuss production and weather conditions to strengthen supply stability. However, the company has not disclosed strategies to mitigate or adapt to these risks. Additionally, the company anticipates increased feed and veterinary drug consumption due to an epidemic outbreak, resulting in higher operating costs, but it does not outline plans to address this risk. The company also fails to discuss the impact of temperature increases, increased energy costs, or the potential effects of carbon taxes on electricity and carbon-intensive animal protein, including mitigation strategies. Furthermore, it has not reported any financially significant events from climate risk during the reporting period.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

The company sources soy for animal feed but does not disclose the percentage of feed ingredients this represents. 100% of soy is not sourced from deforestation-free areas or suppliers. The company has not undertaken a deforestation-related risk assessment to identify high-risk sourcing locations.

The company does not disclose having a deforestation/conversion-free target for soy.

The company does not report progress against its commitment. Nor did it respond to the CDP Forest Questionnaire in 2022.

The company does not disclose whether all sourced cattle come from regions free of deforestation risk. Additionally, it has not conducted a risk assessment or identified all high-risk locations.

The company does not report having a deforestation/conversion-free target for cattle.

The company does not disclose the proportion of cattle sourced which complies with its commitment. It does not state that progress against its commitment undergoes a third-party audit, nor did it respond to the CDP Forest Questionnaire in 2022.

The company does not disclose any information on how it engages soy suppliers on deforestation and does not provide support to soy producers to encourage deforestation-free production or improve traceability.

The company does not disclose how compliance is monitored or what actions are taken if non-compliance occurs. Furthermore, the company does not disclose the level of traceability in its soy supply chain.

In 2023, the company expanded alfalfa cultivation to over 1,067 hectares of sandy soil to reduce erosion and improve soil quality. Additionally, it is reformulating its feed to reduce the reliance on soy-based protein.

Deforestation is not referenced in the company's supplier code of conduct. Furthermore, the company does not disclose providing support to cattle producers to encourage deforestation-free production or improve traceability.

The company does not disclose how it monitors compliance with its commitment or the actions taken in cases of non-compliance. Furthermore, it does not disclose the level of traceability in its cattle supply chain.

The company does not disclose information regarding innovative and sustainable farming practices implemented to improve biodiversity and soil health.

The company prioritises water resource management but does not confirm if it operates exclusively in regions with low water stress. In 2023, it consumed 10.907 million m3 of water, with a consumption intensity of 8.8 m3 per RMB10,000 revenue. The company has implemented a water conservation policy across its operations and reports several initiatives to conserve water in its farming, fresh product, and manufacturing departments. Measures include water-saving faucets for pig drinking systems and varied water flow standards for different categories of pigs. In factories, it is reducing water pressure and recycling condensate from boilers and packaging machines to lower usage. The company has not disclosed whether it has conducted a risk assessment to identify processing facilities in high or medium water-stressed areas.

The company does not disclose a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.

In 2023, the company reduced water consumption from 16.72 million m3 in 2022 to 10.907 million m3. However, it does not disclose water withdrawals or consumption by source or water stress level. Additionally, the company does not provide details on capital or operational expenditures related to water, nor is its water-related data reviewed by third-party auditors. It also did not respond to the CDP water questionnaire.

The company does not address water usage in its feed supply chain. It does not discuss comprehensive guidance, support, or incentives offered to suppliers/growers on water usage and has not established a partnership with a third party to input into sourcing/farming strategy.

The company does not disclose feed water intensity or the proportion of feed sourced from water-stressed areas. Furthermore, the company does not provide evidence that it is investing in sustainable feed production from a water-use perspective.

The company does not disclose the proportion of animal protein commodities produced 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.

The company does not disclose having established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company does not identify facilities that operate in locations with high and medium water stress from a quality perspective. It has not set a quality or volume target for wastewater, nor does it report the number of instances of non-compliance with water quality permits, standards, and regulations.

In 2023, the company produced approximately 600,000 tons of wastewater containing COD, ammonia nitrogen, and total phosphorus, with a COD intensity of 1.1934 tons/RMB100 million and 0.1109 tons/RMB100 million for ammonia. A graph indicates that emissions of COD, ammonia, and phosphorus decreased between 2022 and 2023. The company reports discharging 6 million tons of wastewater in 2023. The company did not share data with CDP in 2023, resulting in an F grade. It does not disclose whether a third party audits its wastewater-related data.

The company produces biogas from treated wastewater, which is then used for heating and electricity generation. It reports a 11% increase in wastewater discharge volume, from 540,000 tons in 2022 to 600,000 tons in 2023. Wastewater emission density also rose, from 0.42 tons per revenue in 2022 to 0.48 tons per revenue in 2023. Additionally, although the company shows a reduction in levels of COD, ammonia nitrogen, and total phosphorus compared to the previous year, it does not provide exact figures.

The company does not address nutrient management in its code of conduct. It does not disclose a requirement for feed suppliers to have a nutrient management plan in place, nor does it provide guidance, support, or incentives to suppliers/growers on nutrient management or fertiliser use in crop production.

The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company converts manure to biogas for power and heating, and uses the resulting slurry and manure as fertiliser for circular crop production. It emphasises that environmental impact assessments are essential for designing projects with suitable environmental protection measures, and adjusts livestock farming scale and land use according to local environmental conditions. However, it is unclear if the company has identified high-risk pollution sites.

The company does not make site-specific nutrient management plans part of its supplier’s contractual agreement or its own farms management. Nor does it provide technical or financial support to suppliers or its own farms to develop nutrient management plans and improve manure storage.

The company is investing in feed re-formulation and additives to reduce nutrient excretion from livestock. It claims to evaluate impacts on local residents and ensures new sites are distanced from residential areas. However, there is no clear indication of community engagement on ongoing pollution issues. Additionally, the company does not mention integrating nutrient management performance into incentive schemes for farmers.

The company has implemented an antibiotics policy prohibiting the use of growth-promoting antibiotics and mandating compliance with national veterinary drug regulations and standards. However, it is unclear if this policy applies to all antibiotics, including medically and critically important ones. To reduce antibiotic use, the company follows national regulations such as the Animal Epidemic Prevention Law, employing a "Biosafety Control Procedure" and a "Standard Operation Procedure for Immunisation in Farms". It enhances biosecurity with high-temperature disinfection, centralised quality control via regional warehouses and quarantine centres, and a four-level sanitisation process to prevent viral transmission. Furthermore, the company has developed an "African Swine Fever Prevention and Emergency Response Plan", implementing on-site supervision and online monitoring to curb ASF outbreaks.

The company does not disclose the quantity of antibiotics used.

The company states its commitment to providing a suitable environment for animals through its "Guideline for Animal Husbandry and Farming Quality and Safety Management," which includes standards related to feed, water, and environmental conditions of farming facilities. However, it does not disclose specific animal welfare measures or make a commitment in line with the Five Freedoms for animals. The company conducts staff training on animal welfare management related to hog unloading, driving, and slaughtering, but this is limited to the end of the hogs' life cycle. There is no explicit statement on actions taken if a breach of the animal welfare policy occurs. Additionally, the company does not demonstrate leadership in advancing animal welfare through participation in research and development programs.

The company ensures strict control over hog numbers in each pen to provide ample space for movement and employs humane slaughter practices using CO2 stunning technology. However, it does not disclose the stunning methods used for poultry. The company does not mention providing an enriched environment for animals or a commitment to avoiding routine mutilation. Additionally, it does not address efforts to reduce transportation time to 8 hours or less, nor does it commit to excluding breeds with traits that heighten anatomical or metabolic disorders.

The company states that its operations are certified by China Good Agricultural Practices (China GAP). However, it does not disclose the proportion of sites certified, though it can be inferred that the certification applies to some of its operations.

The company does not disclose information on animal welfare certifications or assurance programs for its beef operations.

The company does not disclose information on addressing key welfare risks in beef and poultry. However, it has implemented measures to ensure suitable environments for pigs, including specific indicators for feed, drinking water, farming facilities, stocking density, lying areas, temperature and ventilation, lighting, and farrowing systems.

The company asserts its commitment to upholding employees' rights but does not disclose adherence to internationally recognised human rights principles.

The company does not discuss how it monitors, assesses, and mitigates actual and potential human rights risks in its operations or supply chain.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence.

The company states it prohibits child labour, forced labour, and discrimination but does not mention prohibiting abuse or committing to fair wages. While it has implemented "Employee Leave Management Measures" for paid sick leave, clarification is needed on whether this applies to all workers, regardless of contract type. The company has not disclosed whether it conducts audits to monitor policy compliance in its direct operations. Additionally, it does not disclose measures prohibiting inhumane treatment, discrimination, harassment, child labour, and forced labour, or promoting fair wages in its supply chain.

The company has a whistleblowing policy for employees and suppliers to report misconduct, but it is unclear if reports can be made anonymously. It reports three cases of crimes but does not disclose the total number of grievances received during the reporting year.

The company prioritises employee health and safety but does not disclose any certification or the percentage of facilities with health and safety committees that include worker representatives. It also has not disclosed whether it evaluated and addressed antimicrobial resistance risks for its workforce.

The company reports losing 2,935 working days due to work-related injuries in 2022 and 601 in 2023. Despite this, no work-related deaths were recorded during these years, maintaining a fatality rate of zero. However, the company does not provide data that allow for the calculation of injury rates, nor does it disclose turnover rates.

The company produces exclusively in China, where freedom of association is not legally allowed. To address this, it has implemented employee representative conferences for dialogue between employees and upper management. However, the company has not confirmed whether its supplier code of conduct includes a policy on freedom of association and collective bargaining.

The company does not disclose the distribution of its workforce according to contract type, nor does it state the number of employees covered by collective bargaining agreements or provide a statement supporting its employees' right to bargain collectively.

The company maintains product quality and safety through certifications such as ISO 22000 Food Safety Management System (FSMS) and HACCP, though ISO 22000 is not GFSI-recognised. It does not disclose whether its suppliers are expected to have GFSI certification or the proportion of those who are certified.

The company does not disclose the quantity or frequency of food safety audits, nor does it reveal corrective action rates for non-conformances at its facilities. However, it has implemented an electronic traceability system for slaughter and processing, offering unique product identities through labelling and coding. This system, used in the Huanggang and Dongtai factories, includes personalised customer labels and product QR codes to enhance traceability and food safety. Data is stored in a cloud database to support full-process traceability and ongoing optimisation.

The company has implemented a Food Recall Management system categorising recalls into three levels, detailing the recall process, response time, and disposal management. However, it lacks detailed protocols, roles and responsibilities, documentation, a communication plan, and logistics and stock reconciliation procedures. The company reported zero product recalls in 2023.

The company does not disclose the number or locations of market bans for the reporting year, and no bans were detected in media screenings.

The company's board, supported by the ESG Working Group, oversees its Environmental, Social, and Governance (ESG) matters. The ESG Working Group reports relevant information to the board and implements ESG policies to achieve sustainability goals. The board regularly reviews ESG strategies to ensure alignment with the company’s long-term development strategy. In 2023, the company conducted a materiality assessment to prioritise significant ESG issues, engaging a wide range of stakeholders. It identified 57 material issues, focusing on compliance with laws and regulations, responsible governance, board participation in responsibility management, sustainable growth, operational transparency, environmental protection compliance, climate change response, and energy conservation and emission reduction. The board reviews the results of this assessment. The company discloses one board member, Zhang Nan, with innovation experience but does not disclose board-level expertise in sustainability or food safety.

The company does not disclose engagements with public policy officials or trade and civil associations on ESG issues. It is a member of the China Meat Association and serves as a standing director in the National Swine Industry Association and the China Animal Agriculture Association. The company has not disclosed whether executive remuneration is linked to sustainability performance. Furthermore, there is no evidence of a commitment to align its policy engagement activities with the goal of restricting global temperature rise to 1.5⁰C.

The company is advancing informatization and intelligence in production to develop a smart factory, enhancing efficiency and reducing labour intensity by minimising repetitive tasks. It also discloses conducting peer benchmarking to analyse material ESG risks.

The company does not explicitly acknowledge that protein diversification is a material business issue. Furthermore, it has not yet set a time-bound target to diversify protein sources, nor does it report revenue or sales linked to alternative protein sources.

The company does not indicate an approach to diversifying its product range to include plant-based and alternative protein options.