China Modern Dairy Holdings Ltd

1117:HK KYG215791008
Key Information
HQ:
China
Market Cap:
$1.12bn
Primary Market:
Asia



Company Information

Company Summary

China Modern Dairy is the largest dairy farming company and the largest raw milk producer in China. It is primarily engaged in two business segments: (a) dairy farming, which is 70% of its business; and (b) liquid milk products under its own brands. Modern Dairy is a long-term partner of Mengniu and is its largest raw milk supplier. In 2017, Mengniu announced the acquisition of additional shares of China Modern Dairy - Mengniu and its concert party own 56% of the company's issued share capital.
China Modern Dairy

Revenue

Total revenue:

$1.1bn

Revenue by Geography

Revenue by Protein

Revenue by Product Type

Note: This financial breakdown is based on Annual reports released in 2022, containing, in most cases, FY2021.


Disclosures

CDP ScoresLast Reviewed: 11/10/2023

CDP ClimateCDP ForestsCDP Water
YesNoNo

Science Based Target InitiativeLast Reviewed: 03/10/2023

Target classificationStatusDate
Has not set SBT--

Coller FAIRR Protein Producer Index

Analysis Overview

Index-Radar-2023
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

41/100
Medium Risk



Greenhouse Gas Emissions

32/100

Scope 1, 2 & 3 Target
25/100
Type of Target
0/3
Strength of Target - Non-SBT
1.25/2
Source(s): ESG Report 2022, page 63

Innovation on GHG Emission Reduction
20/100
Innovation to Reduce Agriculture Emissions
0/1
Feed Farming Innovation
0/2
Animal Farming Innovation
1/2
Source(s): ESG Report 2022, page 28, 77

Quality of GHG Inventory
55/100
Quality and scope of GHG inventory Completeness
1.25/1.5
Feed & Animal Farming Emissions
0/2
Transparency of GHG Inventory
1.5/1.5
Source(s): ESG Report 2022, page 4, 69

Emissions Performance
25/100
Overall Emission Performance
1.25/5
Source(s): China Mengniu 2022 Sustainability Report.pdf, page 63; ESG Report 2022, page 4, 69

Climate-related Scenario Analysis
35/100
Climate-related Scenarios Analysis Conducted
0/1
Disclosure of Analysis Results on Material Risks
1.75/3
Disclosure of Financial Material Events & Alignment of CAPEX
0/1
Source(s): ESG Report 2022, page 17, 69, 71, 74, 75, 76, 77, 94, 107



Deforestation & Biodiversity

11/100

Deforestation/Conversion-free Target - Soy for Animal Feed
0/100
Risk Assessment to Identify High-risk Locations
0/0.5
Strength of Deforestation Commitment
0/3.25
Transparency - Progress Against Commitment
0/1.25
Source(s): ESG Report 2022, page 47, 69, 70, 144

Engagement, Monitoring & Traceability - Soy for Animal Feed
21/100
Supplier Engagement
0.3/1.25
Compliance monitoring & Traceability
0.75/3.25
Feed Innovation
0/0.5
Source(s): ESG Report 2022, page 47, 48; Supplier Code of Conduct 2023, page 1



Water Use & Scarcity

47/100


Water Use & Scarcity in Feed Farming
37/100
Supplier Engagement in Water Use in Feed Farming
1.5/2.5
Disclosure of Water Risks in Feed Farming
0.35/2.5
Source(s): ESG Report 2021, page 95; ESG Report 2022, page 92, 94, 95, 144

Water Use & Scarcity in Animal Farming
56/100
Supplier Engagement in Water Use in Animal Farming
2.8/3
Disclosure of Water Risks in Animal Farming
0/2
Source(s): ESG Report 2022, page 9, 57, 92, 94



Waste & Pollution

25/100


Nutrient Management in Feed Farming
12/100
Supplier Engagement in Nutrient Pollution Risks
0.6/4
Innovation to Improve Nutrient Management in Feed Farming
0/1
Source(s): ESG Report 2022, page 56, 60, 95, 147

Manure Management in Animal Farming
38/100
Disclosure of Pollution Risks from Manure
1.25/1.25
Supplier Engagement in Manure Management
0.38/1.5
Innovation to Improve Nutrient Management in Animal Farming
0.25/2.25
Source(s): Biodiversity Statement 2023, page 1; ESG Report 2021; ESG Report 2022, page 48, 51, 56, 58, 67, 77, 82, 90



Antibiotics

30/100

Policy on Antibiotics Use
40/100
Policy on Antibiotics Use
2/5
Source(s): ESG Report 2022, page 102, 116

Disclosure of Quantity of Antibiotics Used
20/100
Disclosure of Quantity of Antibiotics Used
1/5
Source(s): ESG Report 2021, page 79; ESG Report 2022, page 4, 118



Animal Welfare

66/100

Animal Welfare Policy
57/100
Welfare Policy
1.25/2
Key Welfare Issues
1.6/3
Source(s): ESG Report 2022, page 4, 101, 102, 103, 104, 110, 111

Assurance & Certification
40/100
Auditing & Assurance by an Animal Welfare Organisation
1.5/4
Public Reporting on Welfare
0.5/1
Source(s): ESG Report 2021, page 76; ESG Report 2022, page 12, 118

Performance on Key Material Risks
100/100
Performance on Key Material Welfare Risks by Protein
5/5
Source(s): ESG Report 2022, page 2, 84, 102, 103, 114, 115



Working Conditions

56/100

Human Rights
20/100
Strength of Policy
1/1
Due Diligence Process
0/3
Evidence of Remediation
0/1
Source(s): ESG Report 2022, page 151, 152, 153, 181

Fair Working Conditions
52/100
Policy for Direct Operations
1.6/3
Monitoring & Discosure
1/2
Source(s): Code of Ethics 2022, page 6; ESG Report 2022, page 27, 32, 140, 146, 153, 154, 158, 160, 181; Supplier Code of Conduct 2023

Safety & Turnover Data
73/100
Committee representation of workers
0.65/2
Disclosure of safety and turnover data
3/3
Source(s): ESG Report 2021, page 108; ESG Report 2022, page 2, 160, 161, 166, 169, 179; Our Farms webpage

Freedom of Association
80/100
Strength of Policies
2.5/3
Disclosure of Collective Bargaining Metrics
1.5/2
Source(s): ESG Report 2022, page 2, 141, 152, 180, 181; Supplier Code of Conduct 2023



Food Safety

63/100

Food Safety System
40/100
Certifications
1/3.5
Performance
1/1.5
Source(s): ESG Report 2022, page 12, 120, 130; Quality and Safety Review Plan

Product Recalls & Market Bans
85/100
Product Recall Systems
2.25/3
Performance
2/2
Source(s): ESG Report 2022, page 120, 132



Sustainability Governance

40/100

Assessment of a Company's Sustainability Governance
40/100
Board Sustainability
1.38/2
Incentives & Policy Engagement
0.1/2.5
Innovation & Benchmarking
0.5/0.5
Source(s): Annual Report 2022, page 49; Board of Directors; ESG Report 2022, page 11, 12, 19, 21, 25, 57, 82



Alternative Proteins

0/100

Diversification of Products to Alternative Protein Sources
0/100
Existing product portfolio
0/2.5
Investing for future growth
0/2.5
Source(s):

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