Vinamilk
VNM:VN VN000000VNM8
Key Information
HQ:
Vietnam
Market Cap:
$6.77bn
Primary Markets:
Asia, Europe & Russia
Company Information
Company Summary
Vinamilk processes, manufactures, and distributes milk cake, soya milk, fresh milk, refreshment drinks, bottled milk, powdered milk, nutritious powder and other milk products. It is the largest dairy company in Vietnam.![Vinamilk](http://images.ctfassets.net/kc2xclar6nri/67JfptK8F4U7ZY47ZAuM89/7ce13da65ab3ef7ef6ba79d0a9f12e95/Vinamilk.jpg?fit=scale&w=1320&fm=webp)
Revenue
Total revenue:
$2.7bn
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
25/100
High Risk
Greenhouse Gas Emissions
29/100
Scope 1, 2 & 3 Target
15/100
Type of Target
The company does not disclose having a science-based target. It states to reduce methane emissions from manure. It mentions that it uses methane gas to pasteurise milk for calves and uses organic atomic carbon technology to reduce methane emissions and odours in livestock. It also aims to reduce methane and nitrous oxide emissions from waste decomposition. However, it does not disclose a time-bound target.
0/3
Strength of Target - Non-SBT
The company aims to achieve net zero emissions by 2050 by increasing the use of renewable energy and planting trees to neutralise greenhouse gases. It also works on energy efficiency and minimising energy from fossil fuels by switching to renewable energy. In 2022, 13 farms and ten factories have installed solar panels, and 100% of farms and factories use LED systems. However, it does not disclose whether it has set targets to reduce GHG emissions from Scope 1 and 2. The data reported covers all of the company's operations. Therefore, the geographic scope is considered universal. It states that it procures raw milk from local farmers and suppliers, which would be reflected in the company's Scope 3 emissions. However, it does not disclose whether it has set targets to reduce GHG emissions from Scope 3.
0.75/2
Innovation on GHG Emission Reduction
20/100
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 discloses that it employs regenerative agricultural practices in its green farms to limit adverse environmental and soil impacts. Cited practices are reduced tillage, use of organic fertilisers and crop rotations.
1/2
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
40/100
Quality and scope of GHG inventory Completeness
The company discloses that in 2022, its total emissions from livestock farming, production and transportation were 266,161,432 kg. However, this data is not broken down by Scope.
1/1.5
Feed & Animal Farming Emissions
The company disclosed its emissions from livestock farming in 2021. It discloses its actions to reduce GHG emissions from cow farms. However, the company does not disclose the GHG emissions from animal farming.
0/2
Transparency of GHG Inventory
The company's sustainability report, including its GHG inventory, is audited by PwC Vietnam.
1/1.5
Emissions Performance
70/100
Overall Emission Performance
The company reports a decrease of 10.19% from 296,391,550 kg in 2021 to 266,161,432 kg in 2022. The emission intensity decreased from 240.69 kg/ton of product in 2021 to 232.95 kg/ton in 2022.
3.5/5
Climate-related Scenario Analysis
0/100
Climate-related Scenarios Analysis Conducted
The company discloses that it establishes and manages its respective sustainability-related risk portfolio, including GHG Emissions. However, it does not mention the climate-related scenario analysis.
0/1
Disclosure of Analysis Results on Material Risks
he company does not mention the risk of feed availability and price volatility. The company does not mentions the increased heat stress and mortality of animals. The company does not mention the increased veterinary and medicine costs. The company does not disclose information on increased energy costs'; The company does not discuss the risks of a carbon tax on electricity and/or animal protein. The company does not disclose the number of financially material events that occurred as a result of climate risk in the reporting period.
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
5/100
Deforestation/Conversion-free Target - Soy for Animal Feed
0/100
Risk Assessment to Identify High-risk Locations
In its Sustainability Report, the company mentions that it procures feed for its cattle. However, the composition of the feed is not clear from the disclosure. Given the lack of information available, soy is assumed to be a constituent ingredient. It indicates that all ingredients are traceable yet provides no further information. However, it does not disclose information on how it manages deforestation risks linked to soy.
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
10/100
Supplier Engagement
In the 2021 Sustainability Report, the company mentions that it procures both feed for its cattle and the ingredients to produce it. However, the exact composition of its feed is unclear. It also writes that all its feed ingredients are traceable, yet provides no additional information. It states that its "Green Farms" produce forage ingredients, including corn, Mombasa grass, oats, and rice for 20,000 head of cattle, but does not provide information regarding the feed sourcing for the remainder of its cattle under management (126,000). Further, it 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 discusses using crop rotation among corn, rice and beans based on the soil conditions, weather, and climate in each farm. For example, Tay Ninh dairy farm applied corn and rice rotation, whilst Dalat Organic Farm applied corn and bean rotation to ensure soil nutrient maintenance and improvement. It also states that it maximises the use of organic fertilisers to replace chemicals and inorganic fertilisers. In 2022, it reports it is also focusing on soil resting (i.e. fallow periods) and regeneration to improve soil health.
0.5/0.5
Water Use & Scarcity
24/100
Water Use & Scarcity in Facilities
38/100
Monitoring Water Consumption & Withdrawals
The company states that it has implemented several initiatives, which seek to recover and circulate water to best optimise its use in its facilities. The company also discloses its total water consumption by its source in 2022 and that it reduced its groundwater consumption by 5% compared to 2021.
0.25/0.75
Target to Reduce Water Consumption & Withdrawals
The company discloses that it has reduced its groundwater consumption by 5% compared to 2021, however does not disclose a time-bound reduction target.
0/1
Disclosure & Performance of Water Risks in Facilities
The company discloses that its water consuption by source. Its water-related data is audited by PwC Vietnam. The company reports a decrease in total water consumption in 2022.
1.63/3.25
Water Use & Scarcity in Feed Farming
35/100
Supplier Engagement in Water Use in Feed Farming
Although the company procures feed for its cattle, it provides no information on the suppliers or ingredients. Furthermore, the company does not disclose information relating to water scarcity risks in feed farming. It states that in one active project waste water discharged is collected and utilised as an organic fertiliser for the company's feed crops, reducing water usage and the need for synthetic fertilisers within its feed supply.
0.75/2.5
Disclosure of Water Risks in Feed Farming
The company states that it is committed to investing in regenerative agriculture development and promoting farmers' crop rotation. In 2022, it focused on crop rotation among corn, rice and beans based on the soil conditions and weather and climate in each farm. The company also states that at its green farms, it reuses treated wastewater as an organic fertiliser for its crops, thereby reducing its water consumption.
1/2.5
Water Use & Scarcity in Animal Farming
0/100
Supplier Engagement in Water Use in Animal Farming
The company mentions it will ensure water resources are consumed economically and effectively. However, it does not provide any detail on water management in animal farming operations.
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
23/100
Wastewater at Facilities
45/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company discloses that there were no environmental incidences or law violations in FY2022. It discloses that 100% of wastewater from production activities is treated to satisfy standards before being discharged into the environment.
0.5/1.5
Transparency on Water Pollution Risks
The company discloses the total volume of water discharged from production and supply of raw fresh milk in 2022. Wastewater data is audited by PwC Vietnam.
1.25/2
Performance on Wastewater Quality & Volume Discharged
The company's aggregate wastewater discharge has decreased in 2022.
0.5/1.5
Nutrient Management in Feed Farming
15/100
Supplier Engagement in Nutrient Pollution Risks
The company procures feed for its cattle. However, it needs to provide more information on how it manages nutrient management in feed farming. It states that it upholds its responsibility to limit the impacts of soil pollution and discusses the importance of soil health. However, the company does not mention nutrient management in crop production. The company does mention using organic fertilisers at its green farms to produce feed crops, but again, it does not mention using nutrient management plans for application.
0/4
Innovation to Improve Nutrient Management in Feed Farming
The company discloses that it employs regenerative agricultural practices as its green farms, in order to limit adverse impacts on the environment and soil. It only provides a statement for complying with European organic standards and does not use chemical fertilisers and pesticides in organic farming. However, the use pesticides across its operations is not reported by the company.
0.76/1
Manure Management in Animal Farming
10/100
Disclosure of Pollution Risks from Manure
The company has a biogas system which transforms waste into energy for on-farm usage. Vinamilk has introduced the system at all its farms. After biogas has been extracted, the company composts solid manure into fertiliser to be used for grass cultivation.
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 states that it received no complaints regarding the environment from the surrounding community, however, it does not provide sufficient detail of a community engagement plan with regard to pollution.
0/2.25
Antibiotics
0/100
Policy on Antibiotics Use
0/100
Policy on Antibiotics Use
The company commits to prohibiting the use of growth hormones in its dairy cows. However, it does not disclose any information concerning the use of antibiotics in its operations.
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
21/100
Animal Welfare Policy
18/100
Welfare Policy
The company provides a high-level statement on animal welfare and supports principles akin to the Five Freedoms. It offers various training courses, including those related to animal care and husbandry, and is upgrading its dairy farms with modern technology. However, it does not explicitly commit to comprehensive animal welfare training for all employees and is not involved in any research and development programmes for animal welfare.
0.5/2
Key Welfare Issues
The company has certified organic farms by Control Union and Organic China, ensuring cows have access to pasture. It has also implemented various initiatives for cow welfare, including a modern cooling system and comfort-enhancing features like soft mattresses and robotic brushes. However, organic products comprise only 0.18% of the portfolio, and there is no additional information or commitment regarding avoidance of close confinement.
0.4/3
Assurance & Certification
30/100
Auditing & Assurance by an Animal Welfare Organisation
All Vinamilk's dairy farms and centres have applied Global Good Agricultural Practices. The company's 14 farms are certified by Global Good Agricultural Practices (GAP). Additionally, four farms hold certification from EU Organic Standards.
1.5/4
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
15/100
Performance on Key Material Welfare Risks by Protein
The company commits to providing technical training for mastitis control and creating a suitable environment for cows with sawdust and straw lining. However, it does not discuss prohibiting tethering or lameness prevalence, and the incidence rate for mastitis remains unspecified.
0.75/5
Working Conditions
33/100
Human Rights
10/100
Strength of Policy
The company commits in writing to respect human rights. However, it does not mention whether it abides by internationally recognised human rights standards.
0.5/1
Due Diligence Process
The company does not disclose how it assesses, monitors or reviews respect for human rights across its operations.
The company mentions that security personnel are trained in human rights policies or procedures. However, it provides no further detail on human rights risk mitigation measures.
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
33/100
Policy for Direct Operations
The company prohibits child labour, forced labour, discrimination and harassment. Suppliers are also expected to ban child labour, harassment and discrimination. However, the company does not explicitly prohibit forced labour in its supply chain or state that it provides all its employees with a fair wage. In addition, the company does not discuss whether it conducts human rights audits covering the selected policies.
1.4/3
Monitoring & Discosure
The company does not mention conducting audits for its supply chain's selected human rights policies.
The company describes the grievance mechanism and the procedure for handling complaints in its direct operations. However, the company does not explicitly state if the whistleblowing channel allows for anonymity or if it was designed in consultation with stakeholders. It is also unclear if suppliers have access to a grievance mechanism. The number of grievances received in the reporting year is not disclosed.
0.25/2
Safety & Turnover Data
30/100
Committee representation of workers
The company has implemented the health and safety certifications OHSAS 18001/ and ISO 45001 in all its factories to prevent injuries. The company also reports that 8.6% of its workforce was in an occupational safety and health committee in 2022. However, the company does not disclose the percentage of facilities with a health and safety committee with worker representatives.
0.75/2
Disclosure of safety and turnover data
The company reports an increase in the injury rate in 2022 compared to 2021. The company does not disclose fatality rates. The company discloses turnover rate by age, industry type and by gender. However, it does not provide a breakdown of turnover rates by seniority level.
0.75/3
Freedom of Association
60/100
Strength of Policies
The company provides an introductory statement in support of collective bargaining and freedom of association. In addition, the company coordinates with trade unions and authorities to organise cultural activities and employee conferences, pay union fees and enforce democratic regulations at its units. However, it does not disclose the unionisation rate or whether it requires suppliers to support collective bargaining and freedom of association.
1.5/3
Disclosure of Collective Bargaining Metrics
The company states that 100% of its employees participate in collective bargaining agreements, but it does not mention whether this applies to all workers regardless of contract type. The company has also disclosed the distribution of its workforce by type of labour contract.
1.5/2
Food Safety
64/100
Food Safety System
75/100
Certifications
The company states that 100% of its factories have FSSC 22000 certification, recognised by the GFSI. Further, it says that 88% of raw material suppliers were granted GFSI-recognised certificates, and it also quotes food safety and quality management as one of the supplier's selection criteria. However, it does not disclose whether suppliers must have GFSI food safety certification.
3/3.5
Performance
The company mentions providing training to internal auditors on FSSC food safety certifications. However, it does not disclose the number or frequency of internal audits. The total number of incidents of non-compliance with regulations and standards related to the health and safety impacts of products and services is zero. It also mentions that the total number of incidents of non-compliance with laws and voluntary rules concerning product, service and labelling information is zero. Further, it discusses implementing a QR code tool, which allows consumers to trace the development back to its origin. Each product has a unique QR code and uses TE-FOOD's blockchain traceability solution for tracking organic milk. However, this technology has only been applied to specific product lines, such as Organic Fresh Milk.
0.75/1.5
Product Recalls & Market Bans
53/100
Product Recall Systems
The company does not disclose its approach to dealing with product recall cases or provide details of its recall system. However, it identifies product safety and quality as material areas. There were zero recalls in the reporting period.
2.13/3
Performance
The company does not disclose information on market bans in the reporting period, and none were detected in the media screen.
0.5/2
Sustainability Governance
23/100
Assessment of a Company's Sustainability Governance
23/100
Board Sustainability
The company reports that the board oversees the company's sustainable development policy and environmental protection and social responsibility activities. In addition, the company conducts a materiality assessment and publicly discloses the outcomes of the assessment. Material aspects include greenhouse gas emissions, water, biodiversity, rural economies, animal welfare, and product safety quality. The company discloses that a member of its critical management team has experience in product development and innovation. However, the company does not disclose board-level or executive-level food safety or sustainability expertise.
0.88/2
Incentives & Policy Engagement
The company provides details on trade association memberships. However, it has not disclosed executive monetary remunerations linked with climate or sustainability performance. Nor has it disclosed engaging with civil or trade associations on ESG issues or if it aligns any policy-engagement activities to restrict global temperature rise to 1.5C.
0.25/2.5
Innovation & Benchmarking
The company does not disclose a strategic approach to sustainability innovation or state whether it benchmarks itself against peers in sustainability and innovation.
0/0.5
Alternative Proteins
35/100
Diversification of Products to Alternative Protein Sources
35/100
Existing product portfolio
The company mentions that consumers are prioritising food of plant-based, green, clean and organic origin, which continues to expand in popularity. However, it does not refer to its strategy toward alternative protein products. It discloses that plant-based products make up 1.25% of its products. However, it needs to include sales/revenue from alternative proteins. Further, it has not yet set a timebound target to diversify protein sources.
0.25/2.5
Investing for future growth
The company has a dedicated alternative protein brand named "Soymilk". Its products include Fresh Soya, Red Bean Soymilk, Almond Soymilk, Walnut Soymilk, Vinamilk Double Calcium Soymilk, and GoldSoy High Protein Soymilk. However, it does not indicate that it is investing in the future growth of alternative proteins.
1.5/2.5
Members-only Content
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Workstream Information
2023 Risk Score:
25/100
Level:
High Risk
Ranking:
38/60
Main Protein:
Dairy
Assessed Proteins:
Dairy
Company Feedback Given:
Yes
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% | 10% | 15% |
Carbon Tax | 4% | 8% | 10% |
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 | 10% | 21% | 27% |
Carbon Tax | 10% | 18% | 19% |
Feed | -1% | 1% | 4% |
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