Coller FAIRR Protein Producer Index
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins
Greenhouse Gas Emissions
Scope 1, 2 & 3 Target
Type of Target
The company does not have a science-based emission reduction target. It mentions that it collects breeding waste through closed pipes and pumps it to an anaerobic fermentation tank for medium-temperature fermentation to reduce methane emissions effectively. However, it does not have a specific methane emission reduction target related to animal farming.
Source(s): COFCO Joycome 2022 Annual Report EN.pdf, page 21; COFCO Joycome 2022 ESG Report EN.pdf, page 19, 20, 22, 23; COFCO Joycome Foods Ltd Annual Report 2022 English.pdf, page 11; COFCO Joycome Foods Ltd Sustainability Report 2022 English.pdf, page 10
Strength of Target - Non-SBT
The company is implementing a long-term ecological and environmental protection method to lessen pollutants, greenhouse gases, and carbon emissions. A three-year plan for chemical oxygen demand, building sustainable development systems, fully utilising solid waste and a steady decrease in nitrogen oxide emission density has been recommended by the company. It procures soy and corn as its main feed ingredient and imports beef, poultry, mutton, and lamb. All of these account for Scope 3 emissions. It also mentions that it seeks to integrate energy conservation, ecological, environmental protection, and emission reduction in supplier management. However, it does not disclose whether it has set targets to reduce GHG emissions from Scope 3.
Innovation on GHG Emission Reduction
Innovation to Reduce Agriculture Emissions
The company mentions that it is pushing forward the concept of green procurement and continues to strengthen environmental protection and corporate responsibility management with suppliers by requiring suppliers to comply with the relevant laws and regulations. However, it does not mention any particular efforts to cut emissions from agriculture.
Feed Farming Innovation
The company procures feed for its hogs through suppliers. However, it does not engage in innovative projects to reduce or mitigate feed farming emissions.
Source(s): COFCO Joycome 2022 ESG Report EN.pdf, page 9, 10
Animal Farming Innovation
The company does not engage in innovative projects to reduce or mitigate emissions from animal farming
Quality of GHG Inventory
Quality and scope of GHG inventory Completeness
The company discloses in its 2022 ESG report that the Scope 1 emission is 110,000 tons, the Scope 2 emission is 180,000 tons and the emission intensity is 0.23 tons/10,000RMB.
Feed & Animal Farming Emissions
The company merely discusses its participation in the China Animal Husbandry Association. It does not disclose its GHG emissions from feed production.
Source(s): CDP Website; COFCO Joycome 2022 ESG Report EN.pdf, page 20; COFCO Joycome Foods Ltd Sustainability Report 2022 English.pdf, page 22
Transparency of GHG Inventory
The company was requested to respond to Climate Change by the CDP in 2022 but did not respond.
Source(s): Annual Report 2021, page 67; COFCO Joycome 2022 ESG Report EN.pdf, page 19, 22
Overall Emission Performance
In FY2022, the company discloses that its Scope 1 emission is 110,000 tons and the Scope 2 emission is 180,000 tons. The absolute emission increases from 270,000 to 290,000 tons. It mentions that it uses generated biogas as energy to reduce methane emissions. However, it does not disclose a quantitative decrease in methane emissions.
Climate-related Scenario Analysis
Climate-related Scenarios Analysis Conducted
The company acknowledges the risk from climatic changes and other natural forces. It has established an environmental risk warning and monitoring system, formulated specific early warning and bottom-line indicators, systematically checked environmental protection problems, and implemented rectifications. However, it does not disclose any details regarding climate-related scenario analysis.
Disclosure of Analysis Results on Material Risks
The company recognises feed price volatility as a risk due to the weather conditions in China's major agricultural and farming regions. However, it does not disclose how it intends to mitigate or adapt to the projected impact of physical risks on feed ingredients' availability and price volatility. It does not discuss the effects of temperature increases and how it intends to mitigate or plan to adapt to the impact of temperature increases. It mentions that the outbreak of the epidemic will increase feed and veterinary drug consumption, which will lead to higher operating costs.
Source(s): Annual Report 2022, page 23; COFCO Joycome 2022 Annual Report EN.pdf, page 20, 21
Disclosure of Financial Material Events & Alignment of CAPEX
The company does not disclose its commitment to align capital expenditures with its GHG targets.
Deforestation & Biodiversity
Deforestation/Conversion-free Target - Soy for Animal Feed
Risk Assessment to Identify High-risk Locations
The company states that soybean meal is a primary ingredient for hog feed in China. However, it does not disclose where it sources soybean meal from or information related to how it manages deforestation risks linked to soy. COFCO Group provides COFCO Joycome with feed ingredients such as soya bean meal, soya bean oil, wheat, corn, feed products, meat products. COFCO International aims to achieve a deforestation and conversion-free soy supply chain target by 2030. Through its farm-level traceability, it attempts to monitor the supply chain in sensitive regions of Latin America such as Amazon, Cerrado and Gran Chaco. It also has a Mutula Supply Agreement to trade feed raw materials to COFCO Joycome. However, it is unclear if 100% soy is sourced from deforestation-free areas. COFCO International sources and supplies feed ingredients from sensitive regions of Latin America such as Amazon, Cerrado and Gran Chaco. COFCO international states that it has identified the highest risk areas within Latin American countries which it sources soy from through a risk assessment. However, it only discloses the Amazon and Cerrado biomes rather than at-risk locations within these biomes.
Strength of Deforestation Commitment
COFCO International, a supplier of feed for COFCO Joycome has a deforestation and conversion-free soy supply target of 2030. However, COFCO Joycome does not have its own target in place, and it is unclear if this policy applies to COFCO Joycome.
Source(s): Annual Report 2022, page 11, 21, 52; CDP Website; COFCO International Sustainability Report 2021, page 17; COFCO Joycome 2022 Annual Report EN.pdf, page 52; News Webpage
Transparency - Progress Against Commitment
The company has not responded to CDP Forests Questionnaire in 2022.
Engagement, Monitoring & Traceability - Soy for Animal Feed
The company has a traceability system which covers feed processing, slaughtering and segmentation, and pig breeding. COFCO Joycome does not refer to deforestation in the context of supplier selection. Further, it does not seem to provide support to soy producers to encourage deforestation-free production.
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.
Source(s): COFCO Joycome 2022 Annual Report EN.pdf, page 21; COFCO Joycome 2022 ESG Report EN.pdf, page 11, 18; COFCO Joycome Foods Ltd Sustainability Report 2022 English.pdf, page 11
The company is trialling growing alfalfa on sandy soils as an alternative feed ingredient for cattle. The company also discloses that it is reducing soil erosion through these projects. It states that these projects have provided benefits to farmers, but it is unclear what the final results of the projects are.
Water Use & Scarcity
Water Use & Scarcity in Facilities
Monitoring Water Consumption & Withdrawals
The company states that it has formulated standards and assessment programs to reduce water consumption. However, the company does not disclose the details of these assessment programs or disclose the results of any assessment that has taken place. It provides a high-level discussion on its water-saving efforts, including, multi-level water metering system and drainage renovation. The company also discloses water resource use intensity in the last reporting year but does not disclose absolute consumption figures.
Target to Reduce Water Consumption & Withdrawals
The company has set a target to improve its industrial water intensity by 10% by 2025. However, COFCO Joycome does not disclose a baseline year for this target. The company does not have a time-bound water reduction target.
Source(s): CDP Website; COFCO International Water Conserve Webpage; COFCO Joycome 2022 ESG Report EN.pdf, page 1, 21
Disclosure & Performance of Water Risks in Facilities
The company does not disclose water-related CAPEX by %. The company did not respond to the CDP water questionnaire in 2022. It also discloses an increase in water consumption in the last reporting year.
Water Use & Scarcity in Feed Farming
Supplier Engagement in Water Use in Feed Farming
The company mentions that it promotes 'green procurement' of feed supplies. However, there is no information available on where it sources soybean meal and corn from or how it engages suppliers on water use in the farming of soy and corn.
Disclosure of Water Risks in Feed Farming
The company does not disclose the water intensity of feed it sources.
Water Use & Scarcity in Animal Farming
Supplier Engagement in Water Use in Animal Farming
The company has its own hog production and sources beef. It discloses water-saving policies for its hog farms. However, it does not discuss water scarcity in its beef supply chain. The company discloses promoting water-saving on the hog farms by introducing a multi-level water metering system, drainage renovation, high-pressure washers, and installing equipment such as drinking bowls and water level controllers and improving procedures.
Source(s): COFCO Joycome 2022 Annual Report EN.pdf, page 11; COFCO Joycome 2022 ESG Report EN.pdf, page 21
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.
Waste & Pollution
Wastewater at Facilities
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company states that it strictly complies with all relevant state laws and regulations. It mentions its commitment to ensuring its production and operations are within the environmental capacity. However, the company does not explicitly state that there were 0 incidences of non-compliance in FY22. COFCO states that drinking water source protection areas should be determined through environmental impact assessment when selecting new project sites. However, the company does not currently identify facilities that operate in locations with high and medium water stress from a quality perspective. It does not disclose specific targets to reduce the volume of wastewater discharged or improve wastewater quality.
Transparency on Water Pollution Risks
The company discloses various wastewater quality metrics including Chemical Oxygen Demand (COD), ammonia nitrogen and phosphorus. The company also discloses the quality of the wastewater discharged in graphical format year over year. Although the absolute figures for the quality of wastewater could not be determined, it is evident from the graph that the quality is below the World Bank wastewater limits for China. It reports the total amount of wastewater discharged in 2022. The company was requested to respond to the CDP water questionnaire in 2022, but did not respond.
Source(s): Annual Report 2021, page 67; CDP Website; COFCO Joycome 2022 ESG Report EN.pdf, page 13, 14, 16, 17, 19, 22; COFCO Joycome Foods Ltd Sustainability Report 2022 English.pdf, page 19; Social and Governance Report, Environment 2022, page 14
Performance on Wastewater Quality & Volume Discharged
The company reports converting effluents into biogas used in energy production. The remaining slurry is provided to farmers and applied as fertiliser. It reported wastewater pollutants generated by the company. This year, the company reports that ammonia nitrogen and COD emissions increased, whereas total phosphorus decreased compared to the previous year. Therefore, it can be concluded that wastewater quality did not improve at the aggregate level compared to the previous reporting period. The company reports a 73.44% increase in the volume of wastewater discharged in 2022 and that wastewater emission density (ton/revenue) decreased in 2022.
Nutrient Management in Feed Farming
Supplier Engagement in Nutrient Pollution Risks
The company does not disclose information relating to nutrient management in feed farming.
Source(s): COFCO Joycome 2022 ESG Report EN.pdf, page 8, 17
Innovation to Improve Nutrient Management in Feed Farming
The company discloses a project whereby biogas slurry and agricultural irrigation water are used to fertilise land used for growing Alfalfa, which is used as a feed ingredient. However, it is unclear from current disclosure if the goal of this project was to improve nutrient management. The company discloses that it tests for pesticide residues within its feed grains before storing them for use. However, the company does not disclose further information about pesticide use in its feed supply chains.
Manure Management in Animal Farming
Disclosure of Pollution Risks from Manure
The company discloses that it converts manure to biogas to generate power. COFCO Joycome also discloses that it undertakes an environmental impact assessment when selecting new project sites, however, it is unclear if the company has identified existing sites which are at high risk of pollution.
Supplier Engagement in Manure Management
The company reports having an environmental protection policy in place for the integrated application of biogas slurry. The company reports that it provides biogas slurry free of charge to regional farmers to improve the soil quality. However, the company does not disclose if it provides technical support to farmers to manage their nutrient usage.
Source(s): COFCO Joycome 2022 ESG Report EN.pdf, page 13, 14, 17, 21, 23
Innovation to Improve Nutrient Management in Animal Farming
The company states that when choosing new sites it fully evaluates and considers the impact on the life of local residents, stating that the site selection should keep a safe distance from the surrounding residential areas. However, it is unclear if the company undertakes ongoing engagement with communities on pollution-related issues.
Policy on Antibiotics Use
Source(s): COFCO Joycome 2022 ESG Report EN.pdf, page 8; Consumer Safety Webpage; Strict controls on products safety for better protection of consumers
Policy on Antibiotics Use
The company commits to national regulations regarding the prohibition of growth-promoting antibiotics in feed and engages in stringent supplier review processes to safeguard quality and safety. However, it fails to provide comprehensive information delineating the specific categories of prohibited antibiotics and does not disclose explicit initiatives undertaken to enhance animal welfare and curtail the necessity for antibiotic use.
Disclosure of Quantity of Antibiotics Used
Disclosure of Quantity of Antibiotics Used
The company does not disclose its antibiotic usage or provide reasons for such usage in the reporting period.
Animal Welfare Policy
The company implements national guidelines for livestock management quality and safety, and provides personnel training for slaughter facilities. However, it does not explicitly address animal welfare in its statements.
Source(s): COFCO Joycome 2022 ESG Report EN.pdf, page 9, 10, 11; COFCO Joycome Foods Ltd Sustainability Report 2022 English.pdf, page 10
Key Welfare Issues
The company has established 11 animal welfare indicators, including stocking density and ensures enough space for hog movement. It commits to humane slaughtering through automatic hog driving channels and carbon dioxide stunning technology. However, it does not commit to avoiding routine mutilation for hogs or long-distance transportation of poultry. Additionally, its animal welfare indicators do not include environmental enrichment.
Assurance & Certification
Auditing & Assurance by an Animal Welfare Organisation
The company's affiliates in pig production and meat processing have passed the China Global Agricultural Practice (ChinaGAP) system. The company's affiliates involved in pig and meat processing have obtained China Global Agricultural Practice (ChinaGAP) certification. However, it does not disclose information on third-party auditing, monitoring, or assurance of animal welfare.
Source(s): COFCO Joycome 2022 ESG Report EN.pdf, page 7
Public Reporting on Welfare
The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.
Performance on Key Material Risks
Performance on Key Material Welfare Risks by Protein
The company lacks specific commitments to address various animal welfare risks. It does not prohibit the use of gestation crates, routine tail docking, or surgical castration. Furthermore, it omits information on the provision of enrichment materials and bedding for physical and thermal comfort.
Strength of Policy
The company states that it respects and safeguards employees' legitimate rights and interests and mentions explicitly a zero-tolerance policy regarding child labour. Howdoes not provide moreovides no information indicating the policies and processes to ensure the company meets its responsibility to respect human rights.
Due Diligence Process
The companeeds does not sufficiently describe an approach to assessing human rights risks throughout its operations. Further, based on the company's publically available information, it cannot be determined how the company monitors and reviews respect for human rights and identifies the next action steps.
Source(s): COFCO Joycome 2022 ESG Report EN.pdf, page 26
Evidence of Remediation
The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence
Fair Working Conditions
Policy for Direct Operations
The company commits in writing to prohibit child labour, forced labour and discrimination in its operations but does not state that suppliers must adhere to these policies. In addition, the company must disclose whether it conducts audits to monitor corporate policies in its direct operations. Also, the company does not commit to ensuring its own or its suppliers’ employees are paid a fair wage. It has implemented the “Employee Leave Management Measures” to ensure that all its employees receive paid sick leave.
Source(s): Annual Report 2022, page 20; COFCO Joycome 2022 Annual Report EN.pdf, page 40; COFCO Joycome 2022 ESG Report EN.pdf, page 26; COFCO Joycome Foods Ltd Sustainability Report 2022 English.pdf, page 8; supplier-code-of-conduct.pdf
Monitoring & Discosure
The company has a whistleblowing policy that encourages employees of the group and those in the supply chain to report grievances to the company anonymously. The policy is reviewed regularly, and suspected cases are reported to the Audit Committee. Also, the company's parent group have a whistleblowing hotline open to all subsidiaries and thus is available to the company's employees. The procedure allows for anonymity and is operated by a third party. However, the company does not disclose how many grievances it received during the reporting period.
Safety & Turnover Data
Committee representation of workers
The company discusses the health and safety of its employees as one of its priorities and has formulated and implemented an occupational health management system. However, it does not disclose if it holds occupational health and safety certifications or if any of its sites have a health and safety committee with employee representatives.
Source(s): Annual Report 2021, page 55, 74; COFCO Joycome 2022 ESG Report EN.pdf, page 1, 25, 26; COFCO Joycome Foods Ltd Sustainability Report 2022 English.pdf, page 1, 26, 27
Disclosure of safety and turnover data
The company discloses that in 2022, 2,935 working days were lost due to work-related injuries, demonstrating a rise in days lost due to injuries compared to 2021, which amounted to 2,180 working days. That said, the company only discloses the number of days lost due to injury rather than an injury rate per number of hours worked. The company discloses that its fatality rate remained zero between 2021 and 2022. The company also reports that in 2022, the male employee turnover rate is 24.43%, and the female turnover rate is 14.88%. However, it does not provide an overall employee turnover rate for the reporting period disaggregated by seniority level.
Freedom of Association
Strength of Policies
The company is based in China, meaning support for freedom of association is prohibited per Chinese legislation. However, the company discloses that it dramatically emphasises the Workers' Representative Conference, which seeks to safeguard employee rights and encourages employees to engage in management discussions.
Source(s): COFCO Joycome 2022 ESG Report EN.pdf, page 27
Disclosure of Collective Bargaining Metrics
The company does not disclose the distribution of its workforce according to contract type, state the number of employees covered by collective bargaining agreements or provide a statement supporting its employees' right to bargain collectively.
Food Safety System
The company discloses that its affiliates engaged in feed processing, hog production, slaughtering, and meat processing have obtained the certifications of ISO9001, ISO22000, hazard analysis and critical control point (HACCP) system and China Good Agricultural Practice (ChinaGAP) system. It has formulated quality and safety assessment standards for its suppliers. However, the company does not disclose if its suppliers are expected to have GFSI certification.
Source(s): COFCO Joycome 2022 ESG Report EN.pdf, page 7, 8, 11; COFCO Joycome Foods Ltd Sustainability Report 2022 English.pdf, page 8
The company discusses regular inspection and monitoring; however, details about the number or frequency of food safety audits are not discussed. The corrective action rate is also not disclosed. However, the company discusses an electronic tracking system allowing full product traceability through label coding. The label's content includes the product name and critical information such as contact information and nutritional ingredients. Product labelling is carried out by national regulations and standards so customers can quickly trace this information.
Product Recalls & Market Bans
Product Recall Systems
The company identifies large-scale product recalls as a severe food safety risk. It has institutionalised food reflects and emergency response plans for food safety to minimise consumers' exposure to problematic products and ensure its traceability system works smoothly. It also provides special personnel and has set up a complaint hotline. However, the company does not provide a detailed disclosure of its recall system. It reported one product recall in 2022. However, no further details are provided.
Source(s): COFCO Joycome 2022 Annual Report EN.pdf, page 22; COFCO Joycome 2022 ESG Report EN.pdf, page 11
The company does not disclose information related to market bans in the reporting period, and none were detected in media screening.
Assessment of a Company's Sustainability Governance
The company has an ESG working group, managed by senior management, responsible for promoting the improvement of the company's own ESG performance. In addition, the company publishes a description of its materiality assessment. The most material issues identified by the company include compliance with laws and regulations, responsibility governance structure, board of directors participation in responsibility management, sustained growth and transparent operation, environmental compliance, response to climate change, energy saving and emission reduction, among others. However, it does not disclose board involvement in this assessment. Moreover, the company does not disclose board-level expertise in sustainability, food safety or innovation.
Incentives & Policy Engagement
The company has not disclosed executive monetary remunerations linked with climate or sustainability performance. The company discloses that it participated in formulating and revising national and industry standards, such as pure meat standards. The company also states that it actively engages in several engagement activities in the domestic sector. However, it is unclear if the participation in different associations addresses climate change, pollution, antibiotics, animal welfare or alternative proteins. Further, it does not provide a complete list of memberships with trade associations, alliances and coalitions or disclose whether its policy engagement activities are aligned with the Paris Agreement.
Source(s): COFCO Joycome 2022 ESG Report EN.pdf, page 2, 5, 22; COFCO Joycome Foods Ltd Sustainability Report 2022 English.pdf, page 10, 20, 22
Innovation & Benchmarking
The company continued to promote the application of informatisation and intelligence in production and used information and technological means to build a smart factory gradually. It also uses innovative technology within its feed and hog production and advanced carbon dioxide stunning technology to prevent pigs from suffering unnecessary pain. However, the company does not disclose how it benchmarks itself against peers in sustainability and innovation.
Diversification of Products to Alternative Protein Sources
Existing product portfolio
The company does not explicitly acknowledge that protein diversification is a material business issue. Further, it has not yet set a timebound target to diversify protein sources, nor does not report revenue/sales linked to alternative protein sources
Investing for future growth
The company does not indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.
2023 Risk Score:
Company Feedback Given:
31st October 2023
2023/24 COFCO Joycome Foods Ltd Assessment
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 Data
2023/24 Full Report
Coller FAIRR Protein Producer Index