Wens Foodstuff Group Co., Ltd.

The company does not have a science-based emission reduction target or a specific methane reduction target. Nonetheless, it focuses on reducing emissions in livestock and poultry breeding through advanced technologies that optimise feed quality and enhance animal intestinal health. By identifying intestinal flora and metabolites, and employing histological analysis, the company aims to minimise emissions from farming at the source.

The company has not specified whether it has established quantitative goals for reducing GHG emissions from Scope 1, Scope 2, or Scope 3. However, it has outlined energy conservation and carbon reduction measures, including optimising feed formulas, precision feeding, and advanced waste treatment to minimise emissions. It is also enhancing biogas utilisation, exploring carbon emission rights trading, and promoting photovoltaic power generation. These initiatives align with China's "30-60" dual-carbon goals, which aim to peak carbon emissions by 2030 and achieve carbon neutrality by 2060.

The company encourages suppliers to conduct business fairly and comply with regulations, while continuously evaluating the environmental performance of its raw material suppliers. In 2023, it carried out 210 environmental training sessions for cooperative farmers, suppliers, and customers, achieving full supplier coverage for environmental screening and audits. The company emphasises enhancing supplier communication and cooperation to strengthen strategic partnerships. It collaborates with strategic suppliers to address emissions in feed industrial chains, optimising the use of new raw materials and implementing a national policy to reduce and replace soybean meal in feed. It contributed to formulating technical regulations for low-protein and low-soybean meal diets for chickens and pigs, participated in a press conference on pig low-protein formula feed standards, and promoted the use of low-protein feed. Through supplier cooperation, the proportion of soybean meal in the company's feed nutritional formula decreased to 4.3%, contributing to a reduction in nitrogen emissions by 500,000 tCO2e.

The company is developing a regional circular "Planting and Breeding Cycle" Model to achieve green transformation and high-quality development within the "dual carbon" context. This "pig-slurry-grass" model integrates planting and breeding for ecological protection, cost reduction, and increased efficiency. The company plans to return manure to farmland to enhance soil organic matter and achieve carbon sequestration and emission reduction. By the end of 2023, it has established over 100 resource demonstration bases nationwide, utilising models such as "Pig - Fertilizer, Water - Grain" in East China, "Pig - Biogas - Corn" in Northeast China, and "Pig - Biogas - Vegetables" and "Pig - Biogas/Tailwater - Sweet Potato" in Southwest China. While the company does not explicitly state that this initiative targets emissions from feed farming, it implies usage of grain or corn as animal feed, warranting partial recognition.

The company reports ongoing biogas initiatives, photovoltaic pilot projects, and a new manure control technology, achieving an ammonia removal rate of over 87% for pig houses and 71%–92% for its chicken manure composting reactor. It describes regional farm carbon emission rights development and trading projects, with a focus on manure treatment and establishing a carbon sequestration accounting framework. Although these measures are not deemed innovative for reducing animal farming emissions, the company is optimising feed formulations. This includes using emulsified feed, microecological preparations, low-protein diet formulations, enzyme preparations, and raw material pre-digestion, which it claims effectively reduce greenhouse gas emissions in livestock and poultry farming.

In 2023, the company reported Scope 1 emissions of 1,047,261 tCO2e and Scope 2 emissions of 1,071,825 tCO2e. However, it also reported combined Scope 1 and 2 emissions as 1,237,270 tCO2e. The company is advised to clarify this discrepancy in its emissions disclosure.

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 reports a substantial increase in emissions between FY2022 and FY2023, with Scope 1 emissions rising from 228,290 to 1,047,261 tCO2e, and Scope 2 emissions from 880,440 to 1,071,825 tCO2e. Total emissions increased by 11.6% during this period, from 1,108,730 to 1,237,270 tCO2e, attributed to a significant rise in livestock and poultry production volumes. Between FY2021 and FY2023, total emissions (Scope 1 and 2) grew by 25%, from 988,354 to 1,237,270 tCO2e, reflecting an average annual increase of 13%. The company does not provide data on emissions reductions related to feed, enteric fermentation, or manure management. Additionally, it does not disclose Scope 3 emissions.

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

The company acknowledges feed raw materials' price volatility due to climate change in its 2023 annual report but lacks a disclosed mitigation strategy. It outlines providing appropriate temperature and humidity for animals according to regional climate characteristics, without detailing specific measures or addressing increased heat stress and mortality risks. Additionally, it does not disclose increased veterinary and medicine costs. The company discusses developing an energy-lean management platform to reduce electricity and gas consumption, providing examples such as distributed steam generators and upgrading the spiral pre-cooling system in slaughterhouses. However, it does not address the impact of rising energy costs or the risks of a carbon tax on electricity and animal protein. Furthermore, the company does not disclose the number of financially material events resulting from climate risk during 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 is working to implement the national policy of reducing and replacing soybean meal for feed, achieving a 1.3% reduction between 2022 and 2023. This effort reduces exposure to deforestation risk, for which the company has earned recognition.

In water risk management, the company reports regular monitoring and measurement of water use around farms by CMA-qualified institutions, as per an approved environmental impact assessment plan. The focus appears to be on surface and groundwater quality. However, the company does not confirm conducting a water scarcity risk assessment to identify if facilities are in areas of water stress. The company states no difficulties in obtaining water sources, nor any impact on sources from extraction. It is prohibited from building livestock and poultry facilities in drinking water source protection areas, and farm site selection must not harm local water sources and ecosystems. Sites are chosen according to national standards, and the "Environmental Protection Management System" is formulated before farm construction. In FY2023, the company reported total water consumption of 46,140,000 tons (130,653,930 m3) and outlined various water-saving measures to reduce source consumption. These include water-saving drinking fountains, smart water meters, spiral pre-cooling systems in slaughterhouses, robot flushing technology reducing single building consumption from 80m3 to 75m3, and water recycling and reuse treatments. It recycled 2,350,000 tons of water in FY2023.

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

In FY2023, the company reported water consumption of 46,140,000 tons, comprised of 23,540,000 tons from municipal sources and 22,600,000 tons from other sources. This marks an increase from 38,660,000 tons in FY2022, attributed to higher livestock and poultry production. Water consumption intensity remained constant at 0.08 (10,000 tons/tons of livestock and poultry products). The company does not disclose water withdrawal data, nor does it report on consumption or withdrawals by water stress level. It also does not provide information on water-related CAPEX or OPEX, and there is no evidence of third-party auditing of its data. Additionally, the company did not respond to the CDP Water 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 from water-stressed areas and lacks a sustainable agriculture policy. While it mentions plans to enhance water resource management in its 2023 Social Responsibility Report, there is no progress reported against these intentions. Three business units have set internal water standards and targets. Monthly assessments are conducted, particularly for departments that exceed these standards. Specific water usage targets are set for different seasons and field types in the pig industry, but the company does not provide details on when these targets were established or whether they are strictly enforced. Furthermore, the company describes several water-saving initiatives in livestock farming, such as installing water-saving drinking fountains and smart water meters in the production line, but offers limited information on their efficacy in reducing consumption.

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

The company's subsidiaries faced significant fines for environmental violations in China: Surabaya Wen's Livestock Co was fined $20,000 for wastewater spillage in Shandong Province due to clogged sewage pipes, and Guizhou Wenshi Breeding Pig Technology Co was fined $680,000 for pollution law violations. The company states it has paid these fines and completed the necessary corrective measures. The company has not conducted a water risk assessment concerning quality, failed to identify high-risk locations, and has not established or disclosed any volume or quality targets related to wastewater.

The company reports wastewater metrics for both its self-operated farms and those run by families, covering Chemical Oxygen Demand (COD), Ammonia Nitrogen, and Phosphorus emissions. It also provides wastewater metrics for each subsidiary, detailing primary pollutants, emission concentrations, total emissions, permitted levels, and any excessive discharges. In 2023, the company discharged 15,760,000 tons of water. However, it does not disclose whether its water-related data is audited by a third party or provide data to the CDP Water Security.

There is no evidence that the company converts animal by-products from processing effluents into fertiliser or biogas. The company disclosed the quality of water discharged in 2023, including COD and ammonia nitrogen levels. These levels increased between 2022 and 2023 across both owned and contracted farms. Despite this, the company reduced its water discharges by 4.19%, from 16,450,000 tonnes in 2022 to 15,760,000 tonnes in 2023.

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 integrates pig raising with crop planting, using pig and poultry manure to grow feed crops. However, it does not disclose information about pesticide use in its feed supply chain.

The company captures methane from hog production through biogas projects and integrates crop cultivation with livestock breeding. It utilises detoxification technologies for biogas residue and has established a technical standard for safely returning biogas slurry to farmland, with 10-15 demonstration sites in China. The company claims to generate 270,000 kWh annually using biogas. However, it does not disclose conducting risk assessments to identify high-risk farming locations concerning water quality.

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.

There is no evidence that the company incorporates nutrient management performance into farmers' incentive schemes. It states it is reducing the soy content in livestock feed to lower nitrogen emissions. However, the company does not demonstrate having a community engagement plan to address pollution around animal farms.

The company has achieved antibiotic-free feed across its pig farming operations, including both commercial and breeding pigs, and promotes antibiotic-free poultry farming. It has introduced various antibiotic-free feeds tailored to different growth stages of pigs. To reduce antibiotic use, the company has implemented measures such as biosecurity and sterilisation protocols, vaccination programmes, nutritional supplements, enhanced health management protocols, improved pig comfort, and optimised environmental control to minimise disease caused by environmental discomfort during breeding.

The company does not disclose the quantity of antibiotics used.

The company expresses a commitment to animal welfare, aiming to provide suitable living conditions and focus on the physiological needs of animals. However, it lacks detailed information on the implementation and adherence to the Five Freedoms or similar principles. There is no stated commitment to engaging and training employees on animal welfare issues. Additionally, the company does not disclose actions taken when breaches in its animal welfare policy are identified or demonstrate leadership through involvement in research and development programs to advance animal welfare.

The company does not commit to avoiding the close confinement of animals or routine mutilation practices such as beak trimming, tail docking, surgical castration, or teeth clipping. While it has measures to maintain animal health during transportation, such as using special vehicles and preventing injuries, it does not commit to avoiding long-distance transport or limiting transport time to eight hours or less. The company ensures humane slaughter by stunning animals before slaughter and using electric anaesthesia for pigs to reduce tissue damage. However, it does not explicitly state that it provides an enriched environment for animals or excludes breeds with traits that increase anatomical or metabolic disorders.

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 lacks a comprehensive policy or commitment to respect all human rights.

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 reports prohibiting child and forced labour but does not disclose policies against discrimination or abuse. Moreover, the company does not provide a commitment to offer living wage or sick pay to its workers. It also does not reveal whether it conducts audits to monitor compliance within its direct operations. Furthermore, the company does not disclose policies prohibiting inhumane treatment, discrimination, harassment, child labour, forced labour, or promoting fair wages within its supply chain.

The company provides open anonymous complaint channels and an accessible grievance platform for all stakeholders. However, it is unclear if the design of these channels involved stakeholder consultations. The company received 22 corruption-related grievances in the reporting year, but it is unknown whether other issues were also reported.

The company discloses targets to prevent work-related injuries and accidents but does not provide information about a health and safety certification. It also fails to state the number or percentage of facilities with health and safety committees made up of worker representatives. Additionally, there is no evidence that the company has assessed or discussed antimicrobial resistance risk for its workforce.

The company reports 345 work-related injuries for the reporting year, down from 372 in 2022, indicating an improvement in injuries per worker. However, it does not disclose fatality data or turnover rates for the current or previous years.

The company operates in China, where independent trade unions are not permitted by law. It does not describe any measures to support Collective Bargaining Agreements or Freedom of Association. Additionally, there is no evidence that its supplier code of conduct includes a requirement for 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 is certified to HACCP and ISO 22000 standards, but it does not hold GFSI-recognised certifications. Additionally, it does not disclose whether its suppliers are expected to have GFSI certification, nor does it reveal the proportion of suppliers with such certification.

The company conducted 20 food tests in 2023, inspecting over 200,000 batches, and performed six special inspections. However, it does not disclose corrective action rates for facilities' non-conformances or information on consumer-facing technology for food safety traceability.

The company has implemented a product recall system compliant with national "Food Recall Management Measures," encompassing all stages from breeding to consumption. The system includes protocols, roles and responsibilities, and communication plans. However, it lacks detailed descriptions of documentation, disposal procedures, and guidelines for recall decisions. The company reports no major food safety incidents or product recalls in 2023.

The company does not disclose the number or locations of market bans for the reporting year, and none were identified in media screenings.

The company's Board of Directors is tasked with setting social responsibility goals, though it is unclear if this encompasses other ESG areas such as climate, biodiversity, or antibiotics. In 2023, the company updated its materiality matrix, highlighting key issues like the social responsibility governance framework, integrity and complaint risk, risk management system, anti-corruption and anti-commercial bribery, and reporting and whistleblower protection. However, the extent of the Board's involvement in this analysis is unclear. The company does not disclose any board-level expertise in sustainability. Additionally, none of its board members have expertise in 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 is involved in national research and development initiatives for environmental protection and pollution prevention, with five key R&D projects in agricultural waste management approved at the national and provincial levels. However, it does not publicly 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.