Vietnam Dairy Products JSC

The company discloses its efforts to lower methane emissions from manure but does not specify a time-bound target for these initiatives. Additionally, the company does not disclose having a science-based target.

The company aims to achieve net-zero emissions by 2050, with interim reduction targets of 15% by 2027 and 55% by 2035, though the baseline year is unspecified. It has pledged to the global Pathways to Dairy Net Zero initiative and is transitioning towards increased renewable energy use, including the installation of solar panels on 13 farms and 11 factories in 2023, with plans to extend this to all sites. However, it has not set specific targets for reducing Scope 1 and 2 emissions. The company sources raw milk locally but has not disclosed any targets for reducing Scope 3 emissions. All reported environmental data covers the entire geographic scope of its operations.

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

The company implements regenerative agricultural practices on its farms to mitigate environmental and soil impact. It converts organic waste into fertilisers and adopts organic farming practices that eliminate chemical fertilisers and pesticides, effectively reducing CO2 emissions and enhancing soil regeneration. Additionally, the company restricts activities that disrupt soil structure, maintains vegetative soil cover, and establishes bio-fences. In 2023, it successfully converted over 2,160 hectares of pastureland to green farming. The company also adjusts crop rotation and planting schedules to suit regional soil, weather, and climate conditions, improving its adaptation to climate change.

The company adopts regenerative agriculture and circular economy practices, including the use of renewable energies and modern waste treatment systems powered by biogas technology, although these are not considered innovative. It also discusses the use of organic atomic carbon technology to reduce methane emissions and odours in livestock farming and is encouraged to provide further details on this initiative.

In 2023, the company reported Scope 1 emissions of 145,040,596 tonnes CO2eq and Scope 2 emissions of 132,689,418 tonnes CO2eq but did not disclose Scope 3 emissions.

The company does not disclose any information on GHG emissions from animal farming. The company does not disclose any information on GHG emissions from feed production. The company does not disclose any information on GHG emissions from land use change.

The company submitted its response to the 2023 CDP Climate Change questionnaire and received a score of C, but the response is not publicly available. Its sustainability report, including the greenhouse gas (GHG) inventory, is audited by PwC Vietnam.

In 2023, the company reported a reduction of over 3% in tCO2e per tonne of products for Scope 1 and 2 emissions. However, total Scope 1 and 2 emissions increased by 4.3% from 266,161,432 tCO2e in FY2022 to 277,730,014 tCO2e in FY2023. Despite this, there was an overall decrease of 6.3% from FY2021 to FY2023, representing an average annual decline of 3.2%. The company does not disclose specific quantitative decreases in emissions from feed, enteric fermentation, or manure management. Scope 1 emissions were 145,040,596 tons CO2eq, and Scope 2 emissions were 132,689,418 tons CO2eq.

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

The company recognises the growing impacts of climate change, such as natural disasters and supply chain disruptions, and has identified material risks from fluctuations in raw material costs. In response, it is investing in research on new production methods, including testing crop varieties like corn, rice, and oats, to enhance yields and reduce input costs. Priority strategies include implementing innovative production technologies and cultivation methods in various regions to boost production efficiency, save labour, and minimise environmental impact. Additionally, the company is intensifying farm cooling activities, like "cool bath" areas, to alleviate heat stress for cattle during high-temperature periods. However, it does not address increased veterinary or medicine costs, heightened energy demand or prices, or the risks of a carbon tax on electricity or animal protein. The company also does not disclose any financially material events resulting from 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 employs a comprehensive soil management strategy focused on risk analysis, nutrient enhancement, and biodiversity protection. It addresses pollution and erosion by adhering to land regulations, avoiding waste discharge, and practising sustainable agriculture, including organic farming and GLOBALG.A.P. certification. Their initiatives include maintaining vegetative cover, creating bio-fences, and greening over 2,160 hectares in 2023. Additionally, the company adjusts crop rotations to local conditions, employs ley farming for organic matter replenishment, and utilises sustainable irrigation, organic fertilisers, and wastewater reuse to enhance soil health and sustainability.

The company has not conducted a risk assessment to identify processing facilities in locations of high or medium water stress. The company prioritises water conservation through various initiatives, including advanced wastewater treatment technologies and practices like faucet control and leak prevention. By implementing a backwash water recovery system at its factories, it has saved up to 48,180 m3 annually. Additionally, research and surveys have identified optimal cooling water amounts for machinery, leading to a 66% reduction and an annual saving of 22,464 m3. The company's reported water consumption for 2023 is 4,130,388 m3.

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

The company reported a total water withdrawal of 7,903,116 m3 from surrounding sources, including 1,247,860 m3 from rivers, 3,371,961 m3 from municipal sources, and 3,283,295 m3 from wells. Water withdrawal increased from 7,128,764 m3 in FY2022, while total water consumption rose from 3,732,321 m3 to 4,130,388 m3 between FY2022 and FY2023. The company does not disclose water withdrawals or consumption by water stress level, nor does it provide information on water-related CAPEX or OPEX. However, its water-related data is audited by PwC Vietnam. The company has not responded to the 2023 CDP Water Security survey.

The company acquires additional feed for its cattle but does not disclose details about suppliers or feed ingredients. The company recognises clean water as essential for livestock and crop farming, as well as production operations. Though it identifies water management as a crucial topic, it does not provide information on water scarcity risks in feed farming within its operations or supply chain. The company adopts regenerative water conservation practices, including organic techniques that avoid chemical fertilisers to maintain the soil's water cycle, and water recycling for crop irrigation. For example, water used in dairy farming for animal spraying and barn cleaning is collected and treated to produce reclaimed water, with 85% of treated livestock wastewater reused for field irrigation. There is no indication the company has partnered with a third party to influence its water use strategy in feed sourcing or farming.

The company does not disclose feed water intensity or the proportion of feed sources from water-stressed areas. The company is committed to investing in regenerative agriculture and circular economy practices. It highlights efficient water usage, including water recycling for field irrigation, with wastewater treated to prevent environmental risks. Efforts are made to reduce soil pollution and erosion through efficient water use and protection of water sources via irrigation and organic fertiliser. The company has adopted a proactive approach to researching and adjusting crop rotation structures and planting schedules to enhance adaptation to climate change by aligning with local soil conditions, weather, and climate.

The company has not disclosed the proportion of animal protein commodities produced or sourced in water-stressed areas. Although it prioritises water resource protection and acknowledges the necessity of clean water for farming and production, it has not set a sustainable agriculture policy specifically addressing water usage in animal farming, nor established reduction targets. The company invests in water-saving initiatives and advanced wastewater treatment technologies to manage the water cycle. For instance, on its dairy farms, it employs a circular economy approach where water used for spraying animals and cleaning barns is collected, treated, and reused for irrigation and barn cleaning. Moreover, the company has implemented a comprehensive programme aimed at safeguarding and efficiently utilising water resources, which includes the deployment of state-of-the-art wastewater treatment technologies and the promotion of sustainable agricultural practices.

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

The company reports no environmental incidents or legal violations for FY2023 and confirms that all wastewater is treated to meet regulatory standards before discharge. However, it has not identified processing facilities in areas with high or medium water stress and lacks both quality and volume targets.

The company reports a total water discharge of 3,772,728 m3 in 2023, with wastewater data audited by PwC Vietnam. However, it has not disclosed the quality of the wastewater nor provided data to the CDP Water Security.

The company does not disclose having improved the wastewater quality at the aggregate level compared to the previous reporting period or reduced the volume of wastewater discharged.

The company acquires feed for its cattle but does not disclose its methods for nutrient management in feed production or require suppliers to have a nutrient management plan. The company conducts soil analysis and risk assessments to improve nutrient management in its feed crop operations. It maintains vegetative cover and bio-fences, practises crop rotation, and aligns planting with soil conditions. Additionally, the company invests in 'soil-less' systems such as hydroponics to reduce pollution risks from fertilisers and agrochemicals. However, the company has not established any partnership with third parties to inform its sourcing or farming strategy, including managing nutrient pollution or fertiliser use.

The company reports using regenerative farming practices, including reduced tillage, organic fertilisers, and crop rotation, to mitigate environmental and soil impact. It is investing in hydroponics to grow Azolla as an alternative to green forage, targeting a yield of 1,000 tons/ha/year. The company asserts compliance with European organic standards by avoiding chemical fertilisers and pesticides in organic farming. However, it does not report on pesticide use across its broader operations.

The company utilises a biogas system on all its farms to convert waste into energy and subsequently turns manure into fertiliser for grass cultivation. However, it does not disclose conducting risk assessments to identify high-risk farming locations from a water quality perspective.

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 enforces controls on antibiotic use and prohibits growth promoters, but it lacks a comprehensive antibiotics policy with detailed guidelines. It has implemented measures to reduce antibiotic dependency, such as biosecurity protocols, sanitation, routine health monitoring, vaccination programmes, and use of herbal remedies. Animal welfare is enhanced through comfortable living conditions, stress reduction, and improved nutrition to boost immunity. Specific interventions include modern barn designs, cooling systems, music for calming cows, comfortable resting areas, and brush systems for physical comfort.

The company does not disclose the quantity of antibiotics used.

The company supports the Five Freedoms and highlights the significance of animal welfare, focusing on the comfort, safety, and natural behaviour of its livestock. It provides a comfortable living environment, reduces stress, enables natural behaviours, and uses modern technology to enhance animal health and well-being. The company is committed to employee engagement and training on animal welfare issues, conducting ten training sessions annually, ensuring that 100% of farm workers are properly trained. It employs 166 veterinarians and animal health experts, comprising 11% of farm personnel. However, the company does not specify actions for breaches of its animal welfare policy nor provide details of leadership through involvement in research and development programmes to advance animal welfare.

The company outlines measures to provide ample space and freedom of movement for its dairy cows, allowing them to graze in herds, access sunlight, and roam freely daily. It provides an enriched environment, featuring barns designed for free movement and comfort, cooling systems, music for calmness, brush systems for massage, and soft mattresses. However, the company lacks commitments to avoid routine mutilation, long-distance transportation, humane slaughter with adequate stunning, and excluding breeds with traits that increase anatomical or metabolic disorders.

The company's operations are certified by GlobalG.A.P., covering 100% of its farms. Additionally, three of the farms hold certification from EU Organic Standards.

The company reports progress in animal welfare, detailing the percentage of farms certified under GlobalG.A.P standards. It also highlights investments in projects to enhance cow comfort and conducts training sessions for farm workers on animal welfare practices.

The company mitigates key welfare risks in dairy by providing cows with suitable environments, including soft bedding, cooling systems, and brush systems for scratching and massage.

The company issues a high-level statement on respecting human rights but does not indicate adherence to internationally recognised human rights conventions.

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, forced labour, discrimination, and harassment but does not explicitly state that it provides all employees with a living wage or sick pay. It discloses that 12% of its sites are Sedex SMETA verified, covering all specified policy areas. While the company's Code of Conduct, applicable to suppliers, addresses harassment and child labour, it does not explicitly prohibit discrimination nor cover policies on forced labour or living wages.

The company does not indicate conducting audits for supply chain policies. While it describes a grievance mechanism and complaints management process within its direct operations, it is unclear if anonymous submissions are allowed or if stakeholders were consulted during its design. The company does not detail grievance mechanisms for its supply chain or report the number of grievances.

The company reports that 54% of its sites are ISO 45001 certified. In 2023, 8.5% of its workforce participated in an occupational safety and health committee. However, the company does not disclose the percentage of facilities with health and safety committees that include worker representatives. Additionally, it has not assessed or discussed antimicrobial resistance risk for the workforce.

The company reports an increase in the rate of work-related injuries from 0.08 in 2022 to 0.2 in 2023, with 15 minor injuries and 6 work-related injuries during this period. It does not disclose fatality rates for the current or previous year. The company reports an overall turnover rate of 6.7%, with segmentation by age, industry type, and gender, but does not provide turnover rates by seniority level.

The company supports freedom of association and states that employees are part of various trade unions, but does not disclose the unionisation rate. It engages with trade unions to negotiate salary, bonuses, benefits, and working conditions, yet does not detail actions taken to ensure employees' rights to freedom of association. Additionally, the supplier code of conduct does not appear to require a policy on freedom of association and collective bargaining.

The company states that all its employees are covered by collective bargaining agreements, though it is unclear if this applies to all contract types. It provides workforce distribution by contract type, with 8,010 on indefinite-term contracts, 1,174 on fixed-term contracts, 71 on seasonal or temporary contracts, and 63 on probationary contracts. However, it does not disclose the number of full-time versus part-time employees.

The company reports that all its owned facilities and factories are certified to the FSSC 22000 standard under GFSI certification. Additionally, it ensures that all raw material suppliers are evaluated and hold a GFSI-accredited Food Safety Certification.

The company does not disclose the number or frequency of food safety audits. It reports zero incidents of non-compliance with health and safety regulations and product labelling standards. However, it does not provide information on the implementation or development of consumer-facing technology for food safety traceability.

The company highlights product safety, quality, and traceability in its sustainability efforts but does not describe a product recall system in detail. It reports zero product recalls for the reporting year.

The company reports zero market bans in the reporting year.

The company's board is responsible for overseeing its policies on sustainable development, environmental protection, and social responsibility initiatives. The company conducts a materiality assessment, disclosing outcomes that include aspects such as greenhouse gas emissions, water, biodiversity, local economies, animal welfare, and product safety and quality. However, the board's oversight or involvement in this process is not specified. Additionally, none of the board members possess expertise in sustainability or food safety. While one member of the Board of Management has experience in research and development, marketing, and brand development, there is no expertise in product development and innovation at the board level. Nonetheless, a member of the key management team does have experience in product development and innovation.

There is no evidence that the company links executive remuneration to sustainability performance. The company seeks collaborative opportunities with associations and NGOs to contribute to the sustainable growth of the dairy sector and Vietnam's development. It has partnered with organisations such as the DSF, VBCDS, the National Institute of Nutrition, and the Vietnam Dairy Association. However, it does not disclose any engagement with these entities or public policy officials on specific ESG issues. The company has launched a Net Zero Tree Planting project with the Ministry of Natural Resources and Environment to support Vietnam's COP26 commitment to Net Zero. It has not disclosed whether its policy engagement activities align with limiting the global temperature rise to 1.5⁰C.

The company does not disclose a strategic approach to sustainability innovation or state whether it benchmarks itself against peers in sustainability and innovation.

The company acknowledges the growing consumer preference for plant-based and nut milk driven by health and sustainability trends. Despite this, it does not outline a strategy for alternative protein products and currently reports only 1.30% of its product range as plant-based. This percentage does not reflect the sales or revenue from alternative proteins. Additionally, the company lacks a timebound target for protein diversification.

The company's brand, Vinamilk Super Nut, received three international awards in FY2023 for its plant-based products, which include a variety of nutrient-rich nuts and beans. The company also promotes its alternative protein brand, "Soymilk," offering products like Fresh Soya, Red Bean Soymilk, Almond Soymilk, Walnut Soymilk, Vinamilk Double Calcium Soymilk, and GoldSoy High Protein Soymilk. In 2023, the company expanded its range of plant-based milk products as dairy alternatives. According to its 2023 Sustainable Development Report, nut-based products constituted 1.30% of its product portfolio, reflecting a 0.05% increase from FY2022.