New Hope Liuhe Co Ltd

The company does not have a science-based emission reduction target and lacks a specific methane emission reduction target. It references methane emission reduction through manure treatment but does not indicate if it is developing such targets.

The company operates in feed production, pig breeding, and slaughtering, with segments in white feather poultry and food processing. It operates in China and 15 other countries, including Vietnam, the Philippines, Indonesia, Singapore, and Egypt. The company invests in renewable energy technologies such as solar and biomass to diversify its energy structure, reduce greenhouse gas emissions, and enhance environmental protection. It aims to achieve full coverage of photovoltaic projects across all industries by 2026. This year, it implemented an energy-saving guidebook and reviewed energy consumption to establish targets and plans for future savings. The reports cover data from the company and its subsidiaries, providing a comprehensive scope. However, the company does not have a Scope 3 emission reduction target.

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

The company utilises biological carbon sequestration to produce feed that is cost-effective and environmentally friendly.

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

The company reports Scope 1 emissions of 511,780.24 tonnes of CO2 equivalent and Scope 2 emissions of 2,029,658.86 tonnes for FY2023. However, it does not disclose its 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 experienced a 43% increase in Scope 1 and 2 emissions, rising from 1,775,264 to 2,541,439 tCO2e. In 2023, it disclosed emissions totalling 2,541,439.11 tons of CO2 equivalent, including 511,780.24 tons from direct emissions (Scope 1) and 2,029,658.86 tons from indirect emissions (Scope 2). However, the greenhouse gas inventory remains incomplete as it only covers Scope 1 and 2 emissions, without a quantitative reduction from feed, enteric fermentation, or manure management.

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

The company reports that natural disasters significantly disrupt the feed and slaughter industries, leading to increased feed and meat prices. Price fluctuations in the feed industry, which account for over 90% of feed production costs, significantly affect its operating costs. Although its pig farming business is a major revenue source and cost-plus pricing mitigates some effects, the company does not provide specific strategies to address these risks. Furthermore, the company does not mention increased heat stress and animal mortality, rising veterinary and medicine costs, nor does it address increased energy costs. It also does not discuss the risks associated with a carbon tax on electricity or animal protein. Additionally, the company fails to disclose the number of financially material events due to climate risk in 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 initiated R&D projects to reduce soybean usage in feed by substituting alternative ingredients and improving grinder efficiency. These efforts have resulted in saving 90,000 tons of soybean meal in feeding, and 3,600 and 19,900 tons of soy in breeding and farming, respectively.

The company adheres to national guidelines for the layout of livestock and poultry farming facilities, avoiding areas prone to drought or water scarcity to preserve local water sources and ecosystems. It enhances protection and management of water sources through a monitoring network focused on water quality at the source, addressing contamination risks rather than scarcity. The company reports total water consumption of 16,257,780 tonnes for the Pig Industry BG and 1,159,106 tonnes for the Feed BU, totalling 17,416,886 tonnes. Water recycling is a key part of its three-year 'dual carbon' strategic plan, involving reclaimed water irrigation and the reuse of manure, which directly reduces water consumption and indirectly decreases energy use in fertiliser production. However, the company does not disclose whether it operates only in low water stress areas or if it has conducted risk assessments for facilities in high or medium water stress locations. Water conservation efforts also include routine inspections for gas leaks, water seepage, liquid drips, the introduction of liquid level controllers, and protective brackets to prevent water loss.

The company targets a reduction in water consumption to 16,048,412 tonnes by FY2024 for the Pig Industry BG and Feed BU, representing a 7.86% reduction from FY2023 levels. However, it does not disclose a time-bound target for reducing total water withdrawals at its facilities in the reporting year.

In 2023, the company's total water intake was 27.35 million tonnes: 7.74 million from municipal sources, 0.46 million from surface water, and 19.15 million from groundwater. The company does not disclose water withdrawals or consumption by stress level, nor does it provide information on water-related CAPEX, OPEX, or third-party auditing of its water data. Additionally, the company did not respond to the CDP Water Questionnaire in 2023. While it reports water consumption and intake for 2023 and municipal water use for 2022, it does not provide comparable data for a comprehensive analysis.

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 reports a water intensity of 65 cubic metres per tonne for feed processing in the reporting year, but this does not include water intensity from feed farming within its supply chain, indicating a limited scope. Additionally, the company does not disclose the proportion of feed sourced from water-stressed areas. It utilises technologies such as UASB Anaerobic + Two-stage A/O, CSTR, and Black Film Biogas to treat breeding wastewater, including animal urine, faeces, and wash water. The treated wastewater is converted into reclaimed water or biogas slurry for farmland irrigation. A case study from 2023 is mentioned, where 600 mu of sorghum was planted at the Taiping Pig Farm in Tianjin, offering flood and drought resistance, with an average reclaimed water absorption of 240m³ per mu. However, detailed information on these initiatives concerning sustainable feed production is lacking.

The company does not disclose the proportion of animal protein commodities produced or sourced from water-stressed areas. It has set a water consumption target of 15,932,624 tons for its Pig Industry BG by FY2024 and reports that consumption in FY2023 is on track to meet this goal. However, the company does not provide information on any guidance, support, or incentives offered to suppliers regarding 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 received 22 penalties for environmental infractions during the reporting period and has detailed the causes and financial sanctions for each. The company does not identify processing facilities in areas of high and medium water stress from a quality perspective, nor does it conduct a water risk assessment. Furthermore, it has not set a water-related quality target or a volume target for wastewater at its facilities.

The company provides detailed metrics on the quality of its discharged wastewater, such as Chemical Oxygen Demand (COD), Biological Oxygen Demand (BOD5), Total Nitrogen (TN), Total Phosphorus (TP), and Ammonia Nitrogen (NH3-N). In 2023, it treated 30.1113 million tons of wastewater, with COD discharges at 15,877 tons and Total Ammonia Nitrogen emissions at 835.3 tons. Although these adhere to national standards, the COD limit of 500 mg/L exceeds the World Bank's standard of 125 mg/L. The total water discharge for 2023 was 27.0184 million tons. The company does not provide information on third-party audits nor does it disclose data to the CDP.

The company reutilises animal by-products by converting them into fertiliser and biogas. In 2023, it reused 263.76 million cubic meters of biogas for heating, reducing CO2 emissions by 0.52 million tons, and 0.24 million cubic meters of biogas generated 0.3 million kWh of electricity, cutting carbon emissions by 233 tons. The company reported a 57% wastewater recycling rate for the year. While it discloses wastewater quality metrics for subsidiaries, indicating varied changes since 2022, there is no clear evidence of an overall improvement in wastewater quality. Enhanced reporting through consolidated wastewater quality data would be beneficial. Additionally, the company does not provide evidence of reducing the aggregate volume of wastewater discharged 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 converts manure into biogas for heating and electricity generation on farms, thereby reducing energy consumption and carbon emissions. It also implements a nutrient management plan for the sustainable use of biogas slurry, setting standards for soil testing and calculating slurry application based on soil nutrient levels, crop types, and expected yields. However, the company does not disclose evidence of risk assessments to identify high-risk locations sensitive to nutrient pollution.

The company implements site-specific nutrient management plans, which include standards for soil testing and a model to calculate the appropriate biogas slurry application for fields. These plans consider soil and slurry nutrient levels, crop types, and anticipated yields, providing detailed guidance for slurry application. However, there is no evidence that these plans are independently verified, which suggests the practices, though robust, lack third-party verification. Additionally, the company does not disclose whether it offers technical or financial support for developing nutrient management plans or enhancing manure storage facilities.

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 is committed to antibiotic-free operations in certain segments, with its subsidiary, Hebei Qianxihe Meat Industry Co., Ltd., certified for antibiotic-free pork under the "Qianxihe" brand. However, it lacks a comprehensive antibiotics usage policy across all operations. The company employs measures to reduce antibiotic use, emphasising biosecurity practices. Biosecurity officers conduct daily assessments of disinfectants to ensure effective sterilisation, disease prevention, and pig health. Additionally, the company provides vaccines to farmers, enhancing animal immunity and reducing reliance on antibiotics.

The company maintains internal records of antibiotic usage to ensure regulatory compliance. However, it does not publicly disclose the quantity of antibiotics used in industry-standard units, by type or class, or provide reasons for their use during the reporting period. Furthermore, there is no reported reduction in the percentage of animals treated with antibiotics or in usage per ton of product compared to the previous period, nor is there third-party auditing of this data.

The company endorses the Five Freedoms principles of animal welfare, focusing on the well-being of pigs by providing comfortable housing and effective disease prevention measures. It is committed to employee training in veterinary practices and disease management. Initiatives, such as PRRS purification and establishing PRV-negative herds, underline its dedication to animal welfare. However, it is unclear whether these efforts apply to all operational sites, and there is no disclosure on actions taken should a breach in animal welfare policy occur. Additionally, the company does not engage in research and development programs to advance animal welfare.

The company allocates at least one square metre of space per pig but does not disclose stocking density. It lacks commitments to avoid routine mutilation, long-distance transportation, humane slaughter, and excluding breeds with traits that increase anatomical or metabolic disorders. Some environmental enrichment measures have been adopted, such as providing toys like small rolling balls and hanging iron chains to enhance pigs' well-being. However, these measures appear limited, and their consistent implementation across all operations is unclear.

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 implements animal welfare measures for pigs, maintaining temperatures between 15-25°C, humidity levels at 60-70%, and providing enrichment toys to reduce stress. It monitors pig numbers to prevent overcrowding and ensures suitable ventilation, clean pens, and gentle handling during sow mating. However, it does not address the use of gestation crates, tail docking, or surgical castration. Additionally, the company fails to address key welfare risks in poultry operations.

The company states that it adheres to internationally recognised human rights standards, including the Universal Declaration of Human Rights.

The company conducts regular human rights impact assessments but does not detail the assessment process for actual and potential risks. It does not disclose how it monitors or reviews human rights practices or determines subsequent actions. Although all new employees receive human rights training and the Overseas Poultry Business Group pursued non-discrimination training in 2023, the company does not disclose any human rights mitigation measures in its 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 that it prohibits child labour, forced labour, and discrimination in its direct operations but does not disclose measures against abuse or ensuring wages match the cost of living. There is no disclosure of compliance monitoring for these policies through audits. While the company offers paid and parental leave, it does not explicitly provide a policy on sick pay. Furthermore, it does not offer an overview of fair working conditions within its supply chain.

The company provides various whistleblowing channels for employees and business partners, including mail, online hotlines, email, Feishu, WeChat, and its official account. An anonymous complaint mechanism supporting human rights policies is also available. However, it does not clarify if stakeholders were consulted in the grievance mechanism's design. It is unclear whether the anonymous human rights channel is accessible to suppliers, and the company does not disclose whether supply chain stakeholders can file anonymous reports. Additionally, the company does not disclose the number of grievances received during the reporting year.

The company states that it prioritises employee health and safety, implementing several protective measures against injury and illness. Only 6% of its subsidiaries are certified under the ISO 45001 Occupational Health Management System. The company does not disclose the percentage of facilities with health and safety committees that include worker representatives, nor does it assess or discuss antimicrobial resistance risk for its workforce.

The company reports an increase in the injury rate from 0.015% in FY2022 to 0.25% in FY2023. However, it does not disclose its method for calculating injury rates. The company does not provide fatality data for the current reporting year but had zero deaths in FY2022, preventing a comparison of fatality rates. It also discloses a turnover rate of 33.39% in 2023 but does not offer a breakdown by seniority level.

The company's operations are primarily in China, where freedom of association is legally prohibited. It does not disclose any commitment to this in regions where it is permitted. Additionally, the company fails to describe measures taken to support such rights or whether its supplier code of conduct requires 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 states its facilities have GFSI certifications, including FSSC 22000 and BRC Global Standard for Food Safety. It reports 52 subsidiaries certified by the China HACCP Food Safety Management System, 5 by FSSC 22000, 3 by BRC Global, 20 by ISO 22000, and 53 by ISO 9001. However, the company does not disclose the percentage of sites certified. Additionally, it does not provide information on supplier expectations or requirements concerning GFSI certification or the proportion of suppliers with such certification.

The company does not disclose the number or frequency of food safety audits for the current reporting year, nor does it provide information on corrective action rates for non-conformances at its facilities. However, it states that digital technology ensures full product traceability and integration with official systems, with each subsidiary required to conduct at least one annual traceability drill to verify system effectiveness.

The company acknowledges product quality and safety as critical issues for itself and its stakeholders, and pledges to maintain a product recall system with immediate response capabilities to protect human health. However, it does not disclose the number of recalls in the reporting year.

The company does not disclose the number and locations of market bans or any product recalls for the reporting year. No such cases were detected through media screening.

The company states that the Board is the highest governing body for ESG matters and oversees related decisions, yet it remains unclear whether the Board is involved in the substantive issue analysis process. This process results in a materiality matrix identifying six highly important issues: product quality and safety, business ethics, waste management, digital transformation, employee development, and rural revitalization. Moderately important issues include climate change, supply chain management, and occupational health, while general issues cover public welfare, responsible marketing, and operational safety. The company does not disclose any board-level expertise in sustainability, food safety, or product development and innovation.

The company does not disclose executive monetary remuneration linked to climate or sustainability performance. Nor has it disclosed engaging with civil or trade associations on ESG issues, providing a comprehensive list of trade association memberships, or aligning any policy engagement activities with the goal of restricting global temperature rise to 1.5°C.

The company has established a technological innovation system directed by the Science and Technology Management Committee and advised by the Academic Advisory Committee, focusing on research in biological breeding, animal nutrition, disease prevention, and food safety. However, it does not disclose any 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's subsidiary, Sichuan Huiji Food, offers plant-based products under the 'Plant Expectation' brand, including alternatives to chicken, meatballs, and sausages. The company acquired Sichuan Huiji Foods, along with the 'Plant Expectation' brand, in 2020. However, there has been no additional information since 2020 concerning further acquisitions or investments in alternative protein brands for future growth.