Muyuan Foodstuff Co Ltd

The company employs biogas utilisation and farming cycles to mitigate methane emissions. However, it does not have specific methane reduction targets or a science-based emission reduction target.

The company operates in China's hog industry, providing services including feed processing, pig breeding, commercial pig breeding, and pig slaughtering. It has established targets for photovoltaic power generation and biogas utilisation for 2024, exceeding its 2023 goals to reduce energy use. However, it has not set reduction targets for Scope 1 and 2 emissions. While the company discloses practices to reduce Scope 3 emissions, it has not outlined specific targets for reducing greenhouse gas emissions in the current reporting period.

In 2023, the company established seven agricultural research and development bases to explore green and low-carbon pathways, promoting sustainable agriculture. It provides manure as organic fertiliser, substituting 146,800 tonnes of chemical fertiliser over 4,520,700 mu of pastureland across these sites. This practice resulted in a 6.76% increase in soil organic matter and a total soil carbon sequestration of 1,348,200 tCO2e.

The company reports a reduction in soybean meal usage from 7.3% in 2022 to 5.7% in 2023, saving 31.2 kg of soybeans per pig. This resulted in reduced nitrogen emissions by 80,700 tCO2e and greenhouse gas emissions by 146,600 tCO2e. The company is encouraged to clarify the scope of these initiatives across its operations.

The company has implemented innovative practices to reduce greenhouse gas emissions from animal farms and slaughtering facilities. Notably, it has developed a pig house heating system that operates without fossil fuels by using insulation boards and heat exchange for air flow to recover exhaust gas heat. This approach reduces natural gas and coal consumption, achieving energy savings and emissions reductions of 333,500 tons of standard coal and 867,000 tCO2e emissions in 2023. Additionally, the company employs air filtration systems to purify waste gases from farming and slaughter processes, achieving a 97.3% ammonia removal rate. This resulted in a reduction of 26,700 tons of ammonia emissions, equivalent to 125,200 tCO2e in greenhouse gas emissions in 2023. The company is encouraged to clarify the scope of these initiatives across its operations.

The company discloses its Scope 1 emissions of 4,165,700 tCO2e and Scope 2 emissions of 3,815,400 tCO2e, including emissions from feed processing, pig farming, and slaughtering and processing. However, it does not disclose Scope 3 emissions, which may include emissions from feed farming or other indirect activities in the value chain.

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.

The company has reduced its emission intensity (kg CO2e/kg pork) by 3.4% compared to the previous year. However, Scope 1 and 2 emissions increased from 7,300,100 to 7,980,100 tCO2e, marking a 35% rise from FY2021 to FY2023, with an average annual increase of 17.5%. Additionally, the company reduced soybean meal usage from 7.3% in 2022 to 5.7% in 2023, decreasing nitrogen emissions by 80,700 tCO2e and GHG emissions by 146,600 tCO2e. It discloses emission intensity and total emissions from feed processing, pig farming, and slaughtering and processing activities.

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

The company recognises that extreme cold weather affects the storage and supply of feed, impacting the feeding efficiency of pigs. It plans to mitigate risks related to feed availability and price volatility with a flexible feed formula and purchasing strategy. Additionally, the company acknowledges that extra-warm weather increases heat stress in pigs and that typhoons can damage facilities, posing risks of pigs escaping or dying. It utilises an intelligent environmental control system for precise regulation of the breeding environment but does not mention animal mortality. The company is aware that climate change will affect society and commits to optimising its energy structure and reducing greenhouse gas emissions in production and operations. It employs practices to reduce emissions, including heatless pigsties, distributed photovoltaics, biogas use, and low-carbon transport. It is promoting clean production and energy-saving technologies, developing renewable energy sources like solar and biomass, and reducing fossil fuel use. However, it does not address the impact of increased electricity demand and prices. The company acknowledges the risk of fees for carbon emissions and is promoting renewable energy such as photovoltaic power and biogas. It is innovating energy-saving technologies and conducting "Green and Low-Carbon Benchmarking" activities to encourage sustainable production. The company is also exploring agricultural carbon sink projects through integrated crop-livestock systems to reduce greenhouse gas emissions and enhance carbon sequestration via green and low-carbon agricultural practices.

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 requires its soybean product suppliers to adhere to non-deforestation standards and encourages them to progressively reduce deforestation during planting. It monitors supplier progress to mitigate deforestation and habitat loss risks. While the company claims to support practical activities to prevent deforestation, it does not provide specific details on these activities.

The company monitors compliance with its policies through audits of its business partners and suppliers. Part of its soy supply, which is certified, undergoes third-party audits. If audits reveal non-compliance, the company may adjust procurement volumes and provide guidance to improve sustainable development performance. Currently, 52.76% of soybeans from direct and indirect suppliers are certified as sustainable, with a target of increasing to 70% by 2025.

The company states it is working to reduce the soy content in its feed to lower deforestation risks but does not specify if the farmers involved are direct suppliers. Additionally, the disclosure does not address soil health or biodiversity concerning these deforestation efforts.

The company has established a water resources risk assessment system to evaluate water savings and quality across its farming locations and has developed its own risk level standard to identify at-risk farms. It also installed a new groundwater monitoring system for early warnings in areas with declining water levels to mitigate water shortages caused by extreme weather or river cut-offs. However, it does not disclose the tools, indicators used in the water stress assessments, or the water stress situation at specific locations. The company has implemented measures to reduce freshwater consumption and promote conservation, including water-saving technologies and remote metering devices. These provide data to support informed water management decisions. It utilises the Muyuan Internet of Things (IoT) platform to digitise water resource management, integrating intelligent feeding and smart water management. This platform enhances tracking and early warning of water usage, pollution generation, and reuse through manual and automatic data collection. The company discloses segment-wise water consumption intensity for 2023 but does not report the total volume consumed.

The company has set intensity-based water consumption targets to be met by 2024, including 2.21 m³ per head for animal farming, 0.35 m³ per head for slaughtering, and 0.125 m³ per ton for feed processing. Additionally, there is a total water consumption target for pig raising set at 170,300,000 m³ by 2024. However, the company has not set a target for water withdrawals.

The company does not report water withdrawals or consumption by source or by water stress level. It does not disclose water-related CAPEX or OPEX, nor did it respond to the CDP Water Questionnaire.

The company requires its suppliers to hold relevant environmental permits and comply with national regulations for water resource management. It outlines initiatives for recycling wastewater from animal farming and slaughtering, supplying recycled water and manure to nearby farmers. Wastewater is converted into liquid fertiliser for crop cultivation, enabling 100% resource utilisation and conserving irrigation water. However, the company does not specify the scope of these activities.

The company reports a water intensity of 0.13 cubic metres per tonne in its feed processing segment. It is exploring the integration of feed crop and livestock farming by using biogas slurry as fertiliser to establish a circular system. Additionally, wastewater is utilised for irrigation to reduce water withdrawals and mitigate water scarcity risks.

The company has established intensity-based water consumption targets per pig and for total water usage in animal farming for 2024. It has implemented a water conservation system, recycling wastewater from animal husbandry to decrease clean water usage. Monitoring equipment has been installed in each unit and breeding stage to analyse daily water consumption in pig farms, aiding in decision-making for water management. Additionally, the company employs various innovative water-saving technologies, such as upgrading sprinkler systems, to manage water use in animal farming.

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

The company reports receiving five fines across various subsidiaries due to wastewater pollution. It imposes strict environmental requirements for selecting animal farms, necessitating assessments before and after selection, yet it does not specify if similar requirements apply to slaughtering factories. Also, it does not disclose locations with high or medium water stress. The company provides wastewater data and targets for its slaughtering factories, including metrics for COD, ammonia, nitrogen, and phosphorus emissions. It highlights water quality data from one of its largest slaughtering facilities, surpassing national standards. Additionally, the company has set wastewater quality targets per pig or per kilogramme of pork, including wastewater discharge intensity, COD emission intensity, and ammonia nitrogen emission intensity for slaughtering processes.

The company states that effluent water is treated for SS2, COD, BOD, and total nitrogen to meet World Bank minimum requirements. It also engages third-party testing units to ensure compliance with national and local pollutant emission standards.

The company treats wastewater from its slaughtering plants and repurposes pig hair, hoof shells, and white offal into organic fertilisers and protein feeds. In 2023, it increased the reuse of excreta water to 3,482,600 cubic metres, up from 3,070,000 cubic metres in 2022, thereby reducing the volume of wastewater discharged.

The company has developed a circular economic model that integrates pig farming, biogas fertiliser, and green agriculture. This model benefits farmers by facilitating scientific fertiliser application, enhancing soil fertility with manure, and increasing farmers' incomes. The company explores agricultural development opportunities based on principles of waste reduction, harmless treatment, resource utilisation, and ecological recycling. However, it does not provide a nutrient management plan for its feed suppliers. Training is provided to feed farmers by agronomists, including fertiliser application training. Additionally, the company reports installing 26.89 million metres of pipes to freely apply manure to fields. The company claims to actively build a shared platform for industrial interconnection and establish cooperative relationships with partners, contributing to a closed cycle in the modern agricultural industrial chain. This approach reportedly yields increased production and farmers' incomes. Further disclosure is encouraged regarding how these collaborations address pollution in feed farming.

The company has trialled a low-protein diet that optimises pigs' amino acid requirements, reducing protein use in feed and nitrogen generation during manure management. Additionally, 300 agronomists conduct soil tests and recommend fertiliser application for 39 crops, such as wheat and corn, though geographic coverage is unspecified but likely covers at least three-quarters of operations. The company is CNAS accredited and tests for pesticide residues, as well as physical, chemical, elemental, and microbiological indicators. However, it does not disclose efforts to minimise pesticide use in feed farming.

The company adopts anaerobic fermentation technology to dispose of pig manure and treat production wastewater, generating biogas for electricity and operations. Biogas slurry is used as fertiliser, while composting and fermentation of pig manure and residues produce organic fertilisers post solid-liquid separation. It advises farmers using soil sampling to prevent over-application and minimise pollution risk. The company conducts regular pollution risk assessments to identify and monitor sites but does not disclose the locations or proportions of high-risk operations.

The company is exploring agricultural development opportunities through a circular economic model that integrates pig farming, biogas, and fertiliser production, alongside 'green agriculture.' It prioritises 'production with reduced wastes, harmless treatment, resource utilisation, and ecological recycling.' The company focuses on scientifically applying fertiliser to improve soil health and tests soil nutrient content to customise manure application on adjacent farmlands. However, it does not specify the involvement of certified nutrient management advisors in this process.

The company employs agronomists to assist farmers in scientific planting and management, aiming to enhance the value of water fertiliser. It incentivises farmers through awards for outstanding planting performance, encouraging improved soil health and reduced chemical fertiliser usage. The company reports the use of water fertiliser to improve soil health on 229,500 mu of saline land and 88,200 mu of desertified land with organic fertilisers. However, this year's report does not disclose information on feed additives previously used to reduce nutrient excretion. The company does not provide information on its engagement with communities regarding pollution around animal farms.

The company has implemented an antibiotics policy with specific targets to eliminate antibiotic use during the rearing and fattening stages, prohibiting growth-promoting antibiotics in feed. However, it does not disclose the types of antibiotics affected by this policy. To reduce antibiotic necessity, the company employs biosecurity protocols, vaccination programmes, nutritional supplements, and probiotics, along with routine health monitoring under veterinary oversight. It also enhances animal welfare by providing materials and toys to reduce stress.

The company does not disclose the quantity of antibiotics used.

The company supports the Five Freedoms and frames its animal welfare practices from an animal well-being perspective. Its policies ensure pigs receive healthy diets, comfortable housing, disease prevention, and meticulous care, supervised by the quality control department, which conducts regular reviews and training to enhance welfare standards. Employees receive training on animal welfare, with specific instruction and performance appraisals for pig herders to prevent violent treatment. Although the company demonstrates commitment to animal welfare through innovative practices in pig farm design and maintenance, such as advanced air filtration, intelligent environmental control systems, and pen space standards, there is no evidence that these programmes comprehensively cover all operations. Additionally, the company does not detail actions taken in case of breaches of its animal welfare policy.

The company is committed to avoiding close confinement by providing pigs with enough space for movement, including pens that allow them to stand, stretch, turn around, sit, and lie down comfortably. It adheres to farm animal welfare and GLOBALG.A.P. standards for appropriate stocking densities, using the Muyuan stocking density standard to ensure each pig can lie down simultaneously. Routine mutilations performed on piglets include tail docking and castration. Tail docking occurs in piglets older than seven days, with iron supplementation and medication provided to prevent infection. Castration is performed on piglets aged three to five days, with disinfection before and after procedures. The term 'necessary' for these practices is not clearly defined, leaving ambiguity about their essentiality. The company requires the grinding of edges and protrusions on transport vehicles, loading ramps, and guardrails to protect pigs from injury. It also uses gas stunning technology in slaughterhouses to ensure pigs do not feel pain, optimising CO2 concentration and duration to prevent consciousness before bleeding, thereby minimising stress and discomfort. Pigs are provided with materials and toys to encourage natural behaviours such as rooting and chewing and are kept in appropriate social groups to meet their social needs. However, the company does not commit to excluding breeds with production traits that increase anatomical or metabolic disorders.

The company holds multiple certifications, such as GLOBALG.A.P. and ChinaG.A.P., indicating compliance with international animal welfare standards. It conducts both internal and third-party audits on practices including biosafety, feed management, microenvironment control, antibiotic use, and environmental enrichment. Its pork operations are certified under the Global Good Agricultural Practice (G.A.P.) Integrated Farm Assurance programme. However, there is no specific information on the total number of farms or the extent of certification coverage, suggesting these certifications may not apply to the majority of its operations.

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

The company does not use gestation crates. It has implemented several measures to address welfare risks in its pork operations, including designing pig farms with animal welfare in mind, providing enrichment materials, and ensuring adequate space for sows and piglets. Welfare farrowing beds are used for lactating sows, allowing them to turn freely, and hemp bedding is added for nest building. For piglets, the company installs protection light boxes, heating and insulation boxes, and heating pads to maintain suitable temperatures.

The company states that it complies with the Labour Law of the People's Republic of China and aims to enhance employees' access, happiness, and security in human rights protection.

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 prohibits child labour and discrimination, but does not disclose measures against forced labour or abuse, nor does it promote fair wages or offer sick pay. There is also no mention of compliance monitoring through audits. The company requires suppliers to prohibit discrimination, child labour, forced labour, abuse, and harassment, but does not extend this to promoting fair wages within its supply chain.

The company claims the right to audit suppliers' compliance with its code of conduct and adjust purchasing volumes as needed, though it is unclear if audits are conducted. The company has established an Integrity and Honesty Reporting Channel for reporting violations of integrity and the management system, maintained by the Audit Department, with confidentiality assured and anonymous reporting permitted. However, there is no indication of stakeholder consultation in designing these channels. Additionally, while there is an external reporting system for the Audit Department to protect reporters' information, it is not disclosed if anonymity is guaranteed. In 2023, the company investigated 126 cases related to honesty and integrity but has not disclosed the total number of grievances received.

The company has achieved ISO45001 certification for occupational health and safety management at two slaughterhouses and established a three-level safety management structure across headquarters, areas, and subsidiaries. Each level has its own safety management committee, although it is unclear if these committees include employee representatives. The company has not assessed antimicrobial resistance risk for its workforce.

The company does not disclose injury or fatality data for the current reporting or previous year. Nor does the company disclose turnover rates for the reporting period.

The company operates in China, where freedom of association is legally restricted. While it cannot implement measures to support this, it reports holding worker congresses for employee input on management, salary, education, and welfare. However, it does not provide sufficient details on supporting collective bargaining, such as agreements with workers. Additionally, its supplier code of conduct lacks requirements for policies on freedom of association and collective bargaining.

The company states it is enhancing collective consultation but does not provide a clear statement supporting employees' right to collective bargaining. Additionally, the company reports that all labour contractual agreements are full-time, with no part-time employees or contractors.

The company has obtained several certifications for its operations, including FSSC22000 Food Safety Management System Certification and GLOBALG.A.P certification. In 2023, it reported that 14 feed factories were FSSC22000 certified and five farms GLOBALG.A.P certified. However, it does not specify the proportion of its total facilities that are GFSI-certified or require suppliers to hold GFSI certification. Among its 9,500 suppliers, only one has obtained a BRC certificate, 13 have achieved FSSC22000 certification, and three have passed ChinaHACCP certification, indicating that a small fraction of its suppliers are certified.

The company implements a comprehensive food safety audit system across its operations, conducting bi-monthly inspections that include 10.7 million items annually at agronomy farms and 4.42 million items at 10 slaughterhouses. However, it does not disclose corrective action rates for non-conformances at its facilities, nor information on developing or implementing consumer-facing technology for food safety.

The company has implemented a "Product Recall Control Procedure" and an "Unqualified Product Simulation Recall Exercise Plan" with protocols for initiating recalls within 24, 48, and 72 hours after identifying a food safety risk. In 2023, it enhanced its procedures to allow recalls within 2 hours, incorporating key personnel information. However, the procedures lack detailed descriptions of roles, responsibilities, documentation, disposal processes, and a comprehensive communication plan. In 2023, the company organised a simulated recall drill and reported no product recall incidents throughout the year.

The company does not disclose the number or locations of market bans for the reporting year. No market bans were detected in media screening during this period.

The company has established a Board-level Sustainability Committee responsible for developing sustainable development strategies, supervising their implementation, reviewing climate change measures, and overseeing sustainability disclosure. In 2023, the company conducted a materiality assessment, identifying 25 significant topics, including water resource management, technology development, employee rights protection, green packaging, and low-carbon action. The board reviewed and confirmed these assessment results through the Sustainability Committee. The company does not disclose any board-level expertise in sustainability, nor does it have board members with expertise in food safety or product development and innovation.

The company does not link executive remuneration with sustainability performance. It collaborates with the China Animal Agriculture Association and the Sanyan Economic Research Centre on developing the Livestock ESG information disclosure guidance group standard, committing to enhancing sustainable industry practices, including ESG information disclosure, food safety, and supply chain management. The company does not provide a complete list of memberships in trade associations, alliances, and coalitions. Furthermore, it has not disclosed any commitment to aligning its policy engagement activities with the goal of limiting global temperature rise to 1.5°C.

The company reports investments in innovation aimed at reducing water consumption, such as using biogas slurry for irrigation, water purification technologies, intelligent feed technology, sprinkle system upgrades, and soil moisture retention techniques. It also invested 1.658 billion yuan in research and development, focusing on environmental protection technology. However, the company does not disclose benchmarking against peers in sustainability and innovation.

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.