Great Wall Enterprise Co Ltd

The company does not have a science-based emission reduction target.

The company initiated its greenhouse gas (GHG) inventory in the reporting year, covering 13 factory areas, and reported 763,703.3 tCO2e emissions for Scope 1 and Scope 2 in 2023. It is working to enhance energy efficiency by selecting energy-efficient fans, replacing natural gas boilers, and installing LED lighting and solar energy equipment. However, no specific quantitative energy savings targets have been disclosed. The company is in the process of developing detailed GHG reduction targets and strategies. While it acknowledges sourcing wheat, corn, and soy, contributing to Scope 3 emissions, it has not set specific targets for reducing these emissions.

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 does not engage in innovative projects to reduce or mitigate emissions from animal farming.

In 2023, the company reported total Scope 1 and 2 emissions of 763,703,300 tCO2e, primarily from Scope 1 direct emissions due to the use of refrigerants in rapid freezing within the food processing industry, followed by Scope 2 indirect emissions from electricity. Although the inventory base year is 2023, the company plans to fully commence it in 2024. Currently, 13 factory areas have completed the initial ISO 14064-1 inventory with 47,526 tCO2e from Scope 1 and 28,843 tCO2e from Scope 2. However, this scope is restricted to specific geographies beyond these areas.

In its 2022 ESG Report, the company discloses aggregated carbon emissions of 43,006 tCO2 from its Feed, Food, and Meat departments, and Pig Farms. However, it does not provide specific emissions data from animal farming, feed production, or land-use change.

The company does not disclose information to CDP. It has stated that KPMG Taiwan conducted limited assurance on its sustainability report, covering both direct (Scope 1) and indirect (Scope 2) GHG emissions.

Between FY2021 and FY2022, the company reported a reduction in carbon emissions from its Pig Farms, Feed, Food and Meat Departments from 45,360 tCO2 to 43,006 tCO2, a decrease of approximately 5.2%. For FY2023, Scope 1 and 2 emissions from 13 factory areas were 47,526 tCO2e and 28,843 tCO2e, respectively, with absolute Scope 1 and 2 emissions totalling 763,703,300 tCO2e. However, comparable figures for previous years are not disclosed, and the GHG inventory is incomplete. The company does not quantify emission reductions from feed, enteric fermentation, or manure management.

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

The company acknowledges that the increasing frequency of extreme weather events, such as typhoons, floods, and droughts, may disrupt supply chains, raise raw material prices, increase operating costs, and reduce output, potentially resulting in lower revenues. It notes that domestic feed ingredients rely heavily on imports, which are affected by the changing global economic environment, foreign exchange, and futures market fluctuations. To mitigate climate change risks, the company has increased insurance coverage against natural disasters and diversified its raw material sources beyond the United States to include Brazil, Argentina, and India. While it does not explicitly address the impact of temperature increases and variability on animal productivity and mortality, it has taken adaptive measures. Notably, improved biosecurity measures reduced damage from cold snaps in winter 2023, preventing large-scale chicken deaths. Additionally, it has invested in wet curtain cooling systems with automatic controls to maintain optimal barn conditions, reducing vector pollution and providing a comfortable environment for chickens. The company discusses the impact of the avian influenza epidemic and corresponding biosecurity measures but does not relate these to veterinary and medicine costs or potential climate change impacts. It does not address increased energy costs either. Although it mentions carbon tax in assessments of short- and long-term transformational risks, it does not discuss mitigation strategies for this risk. Furthermore, the company does not disclose the number of financially material events due to 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 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.

The company does not discuss innovations or practices to move towards sustainable feed sources.

The company has not assessed water scarcity risks at its processing facilities or clarified if it operates solely in areas with low water stress. It does not provide information on any water scarcity or stress risk assessment efforts. Although the reviewed documents focus on water withdrawal, discharge, and consumption, they do not include specific risk assessments related to water scarcity. In 2023, the company reported a total water consumption of 334.348 million metric tons, an increase from 468.8 thousand cubic meters in 2022. It also outlined measures to enhance efficiency and reduce water usage in its processing facilities.

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

The company shares water consumption and withdrawal data but does not specify the sources or disclose this information by water stress level. Although it has outlined plans for environmental capital expenditure to enhance wastewater and gas treatment equipment, specific water-related CAPEX and OPEX have not been disclosed. KPMG Taiwan provided limited assurance on the company's sustainability report, covering water withdrawal, discharge, and consumption. However, the company did not respond to the CDP Water Security survey in 2023. Water consumption rose significantly from 468.8 thousand cubic meters in 2022 to 334.348 million cubic meters in 2023.

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.

The company claims that the quality of its discharged wastewater complies with regulatory standards: 80 ppm for Suspended Solids (SS), 150 ppm for Chemical Oxygen Demand (COD), and 80 ppm for Biochemical Oxygen Demand (BOD). However, it does not disclose actual water quality measurements, and none of the regulatory limits meet World Bank standards. In 2022, the company reported 1,369.5 thousand cubic metres of wastewater from its 'Feed Department', 'Food Department', 'Meat Department', and 'Pig Farms'. KPMG Taiwan conducted limited assurance on the company's sustainability report, which included water discharge by quality and destination, and waste by type and disposal method. However, the company has not disclosed wastewater-related data to the CDP.

The company disclosed in 2022 that it converts animal by-products into organic fertiliser. It reported a reduction in wastewater volume from 1,937,992 metric tons in 2021 to 1,369,500 cubic metres in 2022. However, it has not disclosed improvements in wastewater quality compared to the previous reporting period.

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 utilises high-temperature/efficiency microbiological decomposition (HMD) treatment equipment on its farms to process manure, thereby reducing fermentation time, treatment processes, and labour costs. It also converts manure into biogas at its pig farms, contributing to its circular economy efforts. However, the company has not conducted risk assessments to identify high-risk locations.

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 does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovations in manure or provide evidence of a community engagement plan in relation to pollution.

The company states that its "Holy Chicken" brand operates under a "No Antibiotics Ever (NAE)" production model, supported by veterinarians, nutritionists, and cooperative farmers. The chickens receive an all-vegetarian diet with probiotics and natural plant extracts to promote healthy growth without antibiotics. Similarly, the company discloses that its Tongde black pork meat and black honey pig products are antibiotic-free. However, it lacks an overarching antibiotics policy. The company employs various measures to reduce disease incidence and improve animal welfare. These include biosecurity and sterilisation protocols, nutritional supplements such as probiotics and natural plant extracts, and routine health monitoring programmes.

The company does not disclose the quantity of antibiotics used.

The company invests in advanced farming systems to support animal welfare, ensuring optimal breeding environments with biosecurity and ventilation measures. It leads research and development initiatives in this area, including the implementation of advanced breeding environments such as the wet curtain cooling system, and the establishment of a new animal nutrition and biotechnology research centre. Collaborations with research institutions focus on antibiotic-free feeding systems and improving gut health and immunity in chickens using an all-vegetarian feed formula. However, the company does not commit to engaging and training employees on animal welfare issues, nor does it specify actions in case of breaches in its animal welfare policy.

The company does not state a commitment to engaging and training employees on animal welfare issues.

The company does not disclose information on animal welfare certifications or farm assurance programs.

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

The company does not disclose information on key animal welfare risks in beef.

The company is committed to corporate social responsibility and protecting human rights for employees, customers, and stakeholders, adhering to international conventions like the United Nations Universal Declaration of Human Rights and the United Nations Guiding Principles on Business and Human Rights.

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 explicitly prohibits child labour, forced labour, and discrimination. However, it does not commit to paying a living wage or sick pay, and does not have a policy prohibiting abuse. Regular internal audits are conducted by its audit department, but it is unclear if these cover the specified policies. Furthermore, the company does not provide a comprehensive discussion on ensuring fair working conditions within its supply chain.

The company describes its whistleblowing procedure in its annual report, providing a complaint channel via telephone or email. However, it is unclear if anonymous reporting is possible or if the system was developed in consultation with stakeholders. Additionally, it is uncertain whether the whistleblowing channel is available to suppliers. In 2022, the company reported no incidents of child labour, discrimination, violations of Indigenous people's rights, or human rights issues through formal complaint mechanisms. Nonetheless, it is unclear if other types of grievances were reported.

The company prioritises health and safety across management levels to prevent employee injuries, property losses, and occupational incidents, aiming for zero injuries. It has formed an Occupational Health and Safety Committee, holding quarterly meetings, as required by regulations. Additionally, each plant has its own occupational safety and health committee, with more than one-third of members being labour representatives, in compliance with legal requirements. However, there is no indication of occupational health and safety certification, and the company has not assessed antimicrobial resistance risk for its workforce.

The company reported a decrease in the disabling injury frequency rate from 4.22 per million hours worked in 2022 to 2.24 in 2023. It maintained zero fatal occupational incidents in both years. The company discloses employee turnover by length of service and age but does not break this down by seniority. Additionally, it does not clarify the definition of a "local" employee or the coverage of these figures within its operations.

The company primarily operates in China, where freedom of association is restricted. It discloses details of collective bargaining agreements with the workforce, which include provisions for injury/fatality compensation and childbirth allowances. However, its supplier code of conduct does not require or expect suppliers to set policies 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's facilities are certified under ISO 22000, CAS, HACCP, and FSSC 22000, with most being part of GFSI-recognised schemes. These certifications cover significant output in feeds, meat, and food products. However, the company does not disclose whether its suppliers are expected or required to obtain GFSI certification, nor the proportion of suppliers who are certified.

The company conducts food safety audits for raw materials and finished products, providing data on inspection numbers, item types tested, sample quantities, and pass rates. It has also launched consumer technology for food safety and traceability, such as the DaChan Safe Chicken Traceability System and the DaChan Corn Fed Chicken Traceability System, enabling consumers to trace chicken products back to their sources, including farm and quality control details. However, the company does not disclose corrective action rates for facility non-conformances.

The company reports zero product recalls in 2022 but does not disclose its approach to handling such incidents.

The company does not disclose information about market bans, and none were identified in media screenings.

In its materiality analysis, the company identifies 22 sustainability issues, including product quality, health and safety, occupational health, raw material traceability, supply chain management, environmental pollution prevention, water resource management, green procurement, waste management, and disease control. However, the company does not specify if the Board is involved in this analysis or if there is a board mandate to oversee ESG issues. Furthermore, it does not disclose the presence of board members with expertise in sustainability, food safety, or product development and innovation.

The company discloses its memberships in various trade associations, alliances, and coalitions. However, it has not linked executive monetary remunerations with sustainability performance. The company does not provide information on engaging with public policy officials or trade and civil associations on ESG issues. Additionally, it has not disclosed a commitment to align its policy engagement activities with the goal of limiting global temperature rise to 1.5°C.

The company has adjusted its research and development efforts towards sustainable growth, concentrating on waste and carbon reduction, energy conservation, and environmental protection. It also conducts industry benchmarking as part of its materiality analysis.

The company is expanding its vertical integration in agricultural and animal food products by diversifying into plant-based meat. It recognises growth opportunities in Asia's plant-based food market, which is projected to increase by 200% over the next five years. Accordingly, it has committed significant R&D resources to improve the texture, flavour, and pricing of plant-based meat, and plans to expand its product line and global market presence. However, the company does not disclose its revenues or sales from alternative protein sources and has not set a time-bound target for diversifying protein sources.

In 2022, the company commenced production of plant-based meats through its subsidiary, Neo Foods Company Limited, which specialises in research, development, and production of these alternatives. The company has acquired land to expand this production and established a food development centre to manage R&D, machinery development, production, and marketing. It has allocated substantial R&D resources to enhance the texture, flavour, and pricing of plant-based meat, with plans for future global market expansion.