Want Want China Holdings Ltd

The company lacks both a science-based emission reduction target and a specific methane emission reduction target. Additionally, it is not currently developing any such targets.

The company has set targets to reduce greenhouse gas emission intensity by 13% by FY2025 and 36% by FY2030, using FY2020 as the base year. It acknowledges Scope 3 emissions from administrative vehicles and has implemented a vehicle-sharing strategy to address these. However, the company has not disclosed any target specifically for reducing Scope 3 emissions.

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

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

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

The company reported Scope 1 emissions of 187,786 tonnes and Scope 2 emissions of 279,557 tonnes in FY2023.

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 scored a B on the CDP Climate Change 2023 Questionnaire, though reports are available only to investors. Its subsidiaries, Hunan Want Want Food Co., Ltd, Harbin Want Want (at the product level for fried soybean carbon inventory), and Quanzhou Lee-Want, have disclosed third-party verification of their emission data.

The company reports a decrease in GHG emissions (Scope 1 and 2) by 5.36%, from 493,779.97 tonnes in FY2022 to 467,343 tonnes in FY2023. Overall, emissions fell by 16% between FY2021 and FY2023, averaging a 7.8% annual reduction. However, the GHG inventory is incomplete as Scope 3 emissions are not reported. In FY2023, the company achieved a 19.9% reduction in GHG emission intensity compared to FY2020. It disclosed Scope 1 emissions of 187,786 tonnes and Scope 2 emissions of 279,557 tonnes for FY2023. Quantitative emissions from feed, enteric fermentation, and manure management are not disclosed.

The company has conducted a climate-related scenario analysis, identifying risks and opportunities across short, medium, and long-term periods. It assessed risks based on likelihood and financial impact, using an impact matrix for physical risks under the RCP4.5 and RCP8.5 scenarios, and for transition risks under the Net Zero Emissions by 2050 and Announced Pledges Scenarios.

The company acknowledges that extreme weather due to climate change affects the output and price of its upstream agricultural supply, leading to increased raw material and production costs as well as reduced supply capacity. However, it has not discussed measures to mitigate the impact of physical risks on feed ingredients' availability and price volatility. While it recognises the risk of extreme hot weather at its facilities, the company does not address the impact of rising temperatures or potential animal mortality. Additionally, it does not mention increased costs for veterinary services and medicine. The company reveals that higher pricing of greenhouse gas (GHG) emissions could negatively affect financial performance and production costs. To mitigate this, it has increased its renewable energy usage to 14% by installing solar street lights and photovoltaic roofs. It identifies increased GHG emissions pricing, including carbon taxes, as a risk in its transition risk Impact Matrix but also sees potential benefits, such as energy efficiency improvements and greener supply chains, which could reduce long-term costs and enhance brand image. The company disclosed experiencing extreme rainfall from Typhoon Doksuri in Beijing but has not clarified if this is linked to climate risk.

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 received a "B" score on the CDP Forests Questionnaire 2023, though the information is not publicly accessible.

The company claims to prioritise suppliers who are environmentally friendly and contribute significantly to sustainable development. It aims to protect forest resources across its industrial chain through standardised procurement and encourages suppliers to engage in forest protection, conduct traceability management, and reduce deforestation risks. However, the company does not mention soy in its policies and does not detail support provided to suppliers or clarify if these practices apply to soy procurement, focusing only on palm oil and wood products for forest-risk commodities.

The company does not disclose how compliance is monitored or what actions are taken if non-compliance occurs. Furthermore, the company does not disclose the level of traceability in its soy supply chain.

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

The company used the WWF Risk Filter to assess the watershed risk of each production base in light of climate change scenarios. Of the 29 bases evaluated, nine facilities were identified as having high water risk, and their locations have been disclosed. In 2022, the company reported water consumption of 1,212 m3 and implemented several water-saving measures. It introduced concentrated water recovery equipment at two new bases, optimised the RO ratio at 12 bases, and switched to softened water for cleaning at four bases, collectively saving approximately 100,000 tonnes of water annually. Additional installations and optimisations across 333 water-saving projects resulted in a further reduction of 663,800 tonnes of water.

The company aims to achieve a 10% improvement in water use efficiency by 2025, using 2020 as the baseline, with a target to reduce product water intensity to 2.9 tons of output per ton of water. In FY2022, it reported 3.03 tons of output per ton of water and a water consumption intensity of 344 tonnes per million RMB of output value in FY2023, marking a 12.5% efficiency improvement since 2020. However, the company does not disclose a target for reducing total water withdrawals at its facilities.

The company disclosed its water withdrawals from fresh surface water, groundwater, and third-party sources for FY2022 in the 2023 CDP Water response. In its 2023 Sustainability Report, it recorded municipal water withdrawals of 6,622,224 tonnes and natural water withdrawals of 1,027,831 tonnes for FY2023. Water withdrawal and consumption data from nine water-stressed areas are also included in the 2023 CDP Water response. The company reported a 5% reduction in total water withdrawals, from 8,035,530 tonnes in FY2022 to 7,650,055 tonnes in FY2023. Additionally, it disclosed a 27% decrease in water consumption, from 1,657 m3 in FY2021 to 1,212 m3 in FY2022. Water-related capital expenditure (CAPEX) increased by 20% and operational expenditure (OPEX) by 10%, as noted in the CDP Water response. The company also conducts audits on violation information, and water risk assessments, and evaluates financial investments and expenditures. It has responded to the CDP Water Security Questionnaire 2023.

The company does not address water usage in its feed supply chain. It does not discuss comprehensive guidance, support, or incentives offered to suppliers/growers on water usage and has not established a partnership with a third party to input into sourcing/farming strategy.

The company does not disclose feed water intensity or the proportion of feed sourced from water-stressed areas. Furthermore, the company does not provide evidence that it is investing in sustainable feed production from a water-use perspective.

The company does not disclose the proportion of animal protein commodities produced or sourced in water-stressed areas. It does not disclose information addressing water scarcity in its animal supply chain, nor does it discuss guidance it offers to animal farmers/suppliers on water usage.

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

The company reported no water-related regulatory violations or fines for non-compliance with water quality standards in its CDP Water Security 2023 submission. It conducted a water risk assessment of its direct operations, including water quality as a factor, but has not disclosed the results. Improved transparency on these results is recommended. The company aims to achieve a 100% wastewater treatment rate; however, this target is not time-bound and lacks specifications for individual pollutants. Additionally, the company has not set a water-related volume target.

The company reports COD emissions of 240 tonnes and a wastewater discharge of 6,569,086 tonnes for FY2023. It does not disclose other wastewater components like BOD, and the wastewater-related data is not audited by a third party. The company has responded to the CDP Water Security Questionnaire 2023.

The company reports that waste is managed by professional disposal units, employing methods like converting sludge into organic fertiliser and anaerobic power generation, likely related to processing effluents. The company has achieved a reduction in COD emissions by approximately 3.20%, from 252 tonnes in FY2022 to 240 tonnes in FY2023. Moreover, wastewater discharge has decreased by approximately 3.74%, from 6,824,366 tonnes in FY2022 to 6,569,086 tonnes in FY2023.

The company encourages its agricultural partners to adopt sustainable practices, use chemicals and fertilisers responsibly, protect soil health, and prevent ecological damage. However, its Supplier Code of Conduct does not mention nutrient management. The company has not disclosed if it requires feed to be purchased from suppliers or produced with a nutrient management plan. Furthermore, it does not provide comprehensive guidance, support, or incentives to suppliers or growers on nutrient management or fertiliser use in crop production. The company has also not established a partnership with a third party to influence its sourcing or farming strategy, including aspects such as nutrient pollution or fertiliser use.

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 does not outline processes for manure management, conversion to biogas, or sustainable slurry application. Additionally, it has not specifically identified farms located in areas at high risk of nutrient pollution.

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 does not disclose a policy on antibiotic usage or measures taken to reduce their need.

The company does not disclose the quantity of antibiotics used.

The company does not provide a statement in support of the Five Freedoms or a similar statement on the importance of animal welfare.

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

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

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

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

The company declares its commitment to a people-oriented approach, informed by international human rights conventions such as the Universal Declaration of Human Rights (UDHR).

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 and forced labour and avoids harassment and workplace discrimination based on gender, age, ethnicity, religion, and disability. However, it does not indicate a commitment to promoting living wages. The company does not disclose whether it conducts audits to monitor compliance with these policies in its direct operations. Additionally, it lacks transparency regarding policies prohibiting harassment, forced labour, child labour, discrimination, or promoting fair wages within its supply chain. While the company states all employees are entitled to statutory holidays, weekends, paid annual leave, marriage leave, maternity leave, home leave, funeral leave, and other holidays, it does not mention providing sick leave.

The company has a Whistle-blowing Management System for reporting integrity violations, with a channel that purportedly allows anonymous submissions. However, it requires users to provide their name, necessitating clarification on anonymous reporting processes. The company's whistleblower mechanism includes group-level suppliers with transactions in FY2023, excluding construction and information suppliers. The company reports receiving no complaints about discrimination or harassment in FY2023 but does not disclose whether grievances on other issues were received.

The company has implemented a safety management system based on ISO 45001 standards and, in FY2023, achieved ISO 14001 and ISO 45001 certifications for 21 of its factories, although this covers only a limited portion of its operations. It does not disclose the percentage of facilities with health and safety committees featuring worker representatives, nor does it assess antimicrobial resistance risk for its workforce.

The company recorded a decrease in its Lost Time Injury Frequency Rate (LTIFR), from 0.937 per million working hours in FY2022 to 0.9125 in FY2023, alongside a reduction in lost workdays due to injuries from 1,625 to 1,932. Work-related fatality rates remained at zero for both years. The company reports a 17.8% voluntary turnover rate in FY2023, with data disaggregated by age, region, and gender, though not by seniority level.

The company operates primarily in mainland China, where freedom of association is legally restricted. It does not describe measures taken to support these rights, nor does it require or expect suppliers to respect freedom of association and collective bargaining rights.

The company reports that 33% of its employees are covered by collective bargaining agreements in FY2023. It has 37,943 full-time employees and provides details on workforce distribution by age, status, and region. However, the company does not disclose the number of part-time, hourly, or subcontracted workers.

The company adheres to the Food Safety Law and Product Quality Law of the People’s Republic of China, with all 71 operating plants obtaining 124 quality and food safety system certifications, including FSSC 22000, BRCGS, CHINA HACCP, ISO 22000, and ISO 9001, all recognised by the Global Food Safety Initiative (GFSI). In FY2023, five factories conducted in-depth assessments using the BRCGS food safety culture module, evaluating their food safety culture across 20 dimensions. The company operates a supplier management system favouring suppliers with robust ESG performance, assessing them on ESG-related indicators and assigning scores. However, it is unclear whether it requires suppliers to hold GFSI certification, and the proportion of suppliers with such certifications is not disclosed.

The company reports a 100% pass rate for external inspections and finished product quality checks. It conducted 1,121 internal food safety audits in FY2023, fully addressing identified risks and correcting anomalies. Additionally, the company monitors supply chain risks through regular supplier audits and onsite factory inspections. It uses the SAP system for traceability management across procurement, production, distribution, and sales, though this system is not accessible to end consumers.

The company adheres to the Food Recall Management Measures and relevant regulations, supported by a product traceability and recall mechanism managed through its SAP system across procurement, production, distribution, and sales. However, it does not provide detailed information about its product recall system. The company reports zero product recalls in FY2023.

The company does not disclose information on market bans or recalls, including their numbers and locations, for the reporting year. No such issues were detected in media screenings either.

The company reports that its Board acknowledges the significance of sustainable development and ESG management, holding overall responsibility for ESG strategies and governance. It conducted a materiality assessment in FY2022, revised in the reporting year, identifying 24 material topics such as water and wastewater management, waste management, emissions, energy consumption, environmental activities, responsible marketing, and procurement. The ESG Committee, chaired by COO and Board member Cai Wangjia, prioritises these issues to form the FY2023 materiality matrix. The company does not disclose board-level expertise in sustainability and lacks a board member with food safety expertise. However, senior management team member Cao Yongmei has relevant expertise, stemming from roles in the Innovation Committee of the Walmart Food Safety Innovation Platform and as vice chairman of the GFSI China Working Group. Additionally, senior executives Cao Yongmei and Chen Junjiang are cited for their expertise and experience in product innovation and development.

The company links remuneration incentives for managers and employees to its sustainability strategies but does not specify the percentage of variable compensation tied to these metrics. The company does not disclose whether it engages with public policy officials or trade and civil associations on ESG issues and lacks a commitment to align its policy-engagement activities with the goal of restricting global temperature rise to 1.5°C. It is, however, a member of 32 industry associations, including the China National Food Industry Association, the Chinese Institute of Food Science and Technology, the Chinese Nutrition Society, and the China Dairy Industry Association.

The company undertakes research and development projects and applies for patents focused on energy conservation and environmental protection. However, it does not disclose any benchmarking against peers in sustainability and innovation.

In response to global trends towards low-carbon and green transformation, the company aims to increase its range of nutritionally fortified and plant-based products. However, it has not disclosed whether it tracks and reports revenue or sales related to alternative protein sources, nor has it set a timebound target for diversifying protein sources.

The company is expanding its plant-based portfolio in response to global trends towards low-carbon and green transformation. In FY2022, it introduced Fix XBody Oat Milk, a substitute for animal protein. The company aims to increase its range of nutritionally fortified and plant-based products and is enhancing research and development in this area. However, it does not confirm whether it is investing in R&D for the development of alternative proteins beyond its existing products.