Muyuan Foodstuff Co Ltd

The company does not have a science-based emission reduction target.

The company states that it has implemented energy-saving and consumption-reducing management practices to promote the efficient utilisation of resources. It reports a decrease in emission intensity by 4.94% compared to the previous reporting period. However, it does not disclose specific emission reduction targets for the current reporting period. Although it disclosed emission intensity reduction targets previously, this information must be included in the current reports. It details the emissions associated with feed processing, breeding, and slaughtering activities. However, it does not disclose specific targets for reducing greenhouse gas (GHG) emissions in the current reporting period.

The company has a code of conduct for suppliers, including labour and human rights, health and safety, environmental protection, business ethics and management system. However, it does not disclose information on working with suppliers to reduce emissions from agriculture.

The company has been conducting trials of low-protein diets for pigs since 1992 and extensively promoted and applied it in 2000, reducing soybean meal consumption. It discloses that its annual soybean meal usage accounts for 7.3%, significantly lower than the national average. However, the company does not mention that the feed innovation aims to reduce greenhouse gas (GHG) emissions.

The company has introduced heat exchange systems and installed better installation in some pig houses, reducing the need for heating.

The company discloses its Scope 1 emissions (3,894,500 tCO2e) and Scope 2 emissions (3,405,600 tCO2e) and emissions from feed processing, pig farming, slaughtering and processing. However, it does not disclose emissions from Scope 3, which could include emissions associated with feed farming or other indirect activities in the value chain.

The company discloses emissions from pig farming. However, it is unclear if this encompasses all of the company's operations. It discloses the emission factor for feed processing. However, it does not disclose the GHG emissions from feed production.

The company did not respond to the CDP climate questionnaire 2022.

The company reports an increase in Scope 1 emissions from 3,894,500 tons in 2021 to 3,076,500 tons in 2022 and an increase in Scope 2 emissions from 2,835,400 tons in 2021 to 3,405,600 tons in 2022. However, despite the overall increase in emissions, it has achieved a decrease in emission intensity by 4.94% compared to the previous reporting year. It discloses a reduction in nitrogen emissions by 1.3 kg per pig compared to the last reporting period. This reduction is equivalent to a decrease of 80,600 tonnes of nitrous oxide emissions from manure management. The reduction is achieved by reducing the protein content of the feed.

The company has conducted a materiality assessment and identified climate change as one of the most material issues which it faces. However, it has not conducted a climate-related scenario analysis.

The company mentions that due to extreme weather conditions, the prices of raw materials have increased, and market prices have changed. It is conducting in-depth research on pigs' optimal amino acid demand to mitigate this risk. This research aims to adjust the diet by decreasing the protein content and, as a result, reducing the reliance on soybean meal. It acknowledges that its production and operation sites are susceptible to natural disasters like rainstorms, floods, and typhoons, which can be intensified by climate change. It recognises that rising temperatures require improved pig breeding and transportation conditions, increasing costs. In response, it plans to establish strategic cooperation with reliable suppliers to enhance the resilience of its supply chain in managing risks. The company's long-term strategy is to develop a risk-response plan and continue research and innovation in indoor environmental control technology to maintain adequate temperatures in production and transport. It highlights several potential opportunities in the realm of alternative energy. These include harnessing biogas from manure for on-farm use, exploring photovoltaic power generation, and potentially replacing natural gas with geothermal energy to provide heat for pig houses.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

The company reports that the proportion of soybean meal used in pug feed is 7.3%. It states that it will collaborate with its major soybean suppliers, including Cargill and Yihai Kerry, to enhance the sustainability of its soybean supply chain. However, the company does not specify a target to source certified soy.

The company acknowledges its collaboration with Cargill and Yihai Kerry, its soy suppliers, to enhance the sustainability of the soybean supply chain. However, the company does not provide specific details about a commitment to sourcing soy sustainably.

The company did not provide a response to the CDP Forest questionnaire in 2022.

The company discloses that it requires its soybean product suppliers to adhere to non-deforestation standards. Additionally, the company actively advocates for upstream suppliers of soybean products to reduce deforestation during soybean planting. The company monitors the progress made by suppliers to avoid the risks associated with deforestation and habitat loss in soybean procurement. It states that it actively engages in and supports practical activities aimed at avoiding the risk of deforestation. However, specific details regarding these activities are not provided in the disclosure.

The company states that it monitors compliance against its policies through audits of its business partners and suppliers. It discloses that if a supplier is found to be non-compliant the company can reduce the purchase volume of relevant suppliers, and will guide suppliers to improve their sustainability based on their audit results.

The company mentions that it assists farmers and actively works to reduce the quantities of soy in its feed to reduce deforestation risks. However, it is not explicitly mentioned whether these farmers are direct suppliers to the company.

The company mentions that it has developed and applied innovative water-saving technologies and measures to effectively reduce the consumption of fresh water and promote water conservation. It also discloses the segment-wise water consumption intensity for the year 2022.

The company has set intensity-based water consumption targets for the short-term, medium-term, and long-term. In 2022, the company reported a current water intensity of hog production at 1.84m³/head.

The company discloses that it has invested a total of over 5 million yuan in establishing reclaimed water utilisation systems in each production plant area. Muyuan did not provide a response to the CDP water questionnaire in 2022. The company reported an average water consumption intensity in both 2021 and 2022 and reported there was no decrease in water consumption intensity.

The company has implemented a program to support local feed farmers, which includes initiatives to build high-quality farmland and reduce water usage, among other practices. However, the company does not specifically require its suppliers to set water reduction targets in the current reporting period. It invests in infrastructure that benefits farmers and provides agronomists to train them on various agricultural practices, including planting techniques, crop selection, fertilisation, and more. Additionally, the company supports its value chain partners through management and capital investments.

The company discloses that the water intensity of its feed processing segment is 0.075 cubic meters per tonne of feed. It is investigating the combination of feed crop and livestock farming, utilising biogas slurry as fertiliser to create a circular system. In this system, wastewater is used for irrigation needs to reduce water withdrawals and water scarcity risks.

The company has set intensity-based water consumption targets per pig for the short, medium, and long term but does not disclose progress against this target. Muyuan has a water conservation system in place, where it recycles wastewater from animal husbandry to reduce the consumption of clean water.

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

The company discloses that it received a fine due to a wastewater leak that impacted the surrounding environment. It states that it adheres to government regulations in China concerning quality standards. However, specific information regarding the company's own water quality targets are not provided.

The company mentions that effluent water is discharged after treatment to meet legal requirements. However, the company does not provide additional information on these parameters. It reports the total wastewater treatment volume in 2022.

The company mentions that it treats wastewater from its slaughtering plants. Specifically, wastewater from white offal rooms and waiting pens will be processed using anaerobic/aerobic treatment and denitrification technology.

Muyuan has developed a circular economic model which integrates "pig farming, biogas fertiliser and green agriculture" and has applied manure to crops, increasing production and income. The company states that it helps farmers apply fertiliser scientifically and improves the soil fertility of surrounding land with manure. Muyuan actively explores opportunities in agricultural development and develops a circular economic model with reduced waste and improved resource utilisation. However, it does not mention a nutrient management plan with respect to its feed suppliers. It provides training from agronomists to feed farmers, including training on the application of fertilisers. Alongside this, the company discloses that it had installed a total length of 19.7 million meters of pipes to apply manure to fields for free. It has developed a shared platform for industrial interconnection and established cooperative relationships with partners.

The company has conducted a trial on a low-protein diet which contains the optimal amino acid demand of pigs to reduce the quantity of proteins in feed and therefore, reduce the generation of nitrogen in the manure management process. The company currently has 270 agronomists who carry out soil-tests and recommend fertiliser applications for crops, including wheat and corn. This process was carried out at 201 subsidiaries. Muyuan does not disclose information about minimising pesticide use in feed farming.

The company has adopted anaerobic fermentation technology to dispose of pig manure and treat production wastewater. The biogas generated from this process is utilised for electricity generation and farm operations. The resulting biogas slurry is applied to crop fields as fertiliser, while pig manure and biogas residues undergo composting and fermentation to produce organic fertilisers after solid-liquid separation. The company provides application advice to farmers based on soil sampling to prevent over-application and minimise pollution risks. Additionally, the company conducts similar testing for the fields surrounding its production sites, which third-party surveyors inspect. Muyuan also conducts assessments relevant to pollution to identify new sites, but it does not explicitly mention whether similar assessments are conducted for already existing sites.

Muyuan actively explores opportunities in agricultural development and develops a circular economic model that integrates pig farming, biogas, and fertiliser production. It tests the nutrient content of soils to enable customised manure application to farmlands surrounding its sites. However, it does not specify whether certified nutrient management advisors are involved in the process.

The company offers farmers manure-based fertilisers and organic fertilisers, but it does not disclose whether it provides incentives based on nutrient management performance. It has refined its feed recipe by reducing protein content, which helps in reducing nitrogen emissions in manure. Additionally, the company has a subsidiary that specialises in using manure as the primary material to produce organic fertiliser.

The company commits to reducing antibiotic use through disease prevention measures including biosafety systems, air filtration and sterilisation, and environmental control in pig houses. It also explores alternative methods such as the use of probiotics and acidifiers, coupled with vaccination immunisation programmes. However, it lacks clear communication regarding the prohibition of routine antibiotic use or growth promotion throughout its operations and supply chain. Moreover, the company has not disclosed its stance on routine mutilation.

The company commits to responsible antibiotic administration and maintains internal records. It also actively studies alternatives to veterinary antibiotics, including acidifiers and probiotics. However, it does not disclose specific antibiotic use data or explanations for particular applications and lacks disclosure on the reduction in antibiotic use.

The company commits to the Five Freedoms principle and has a whole-life-cycle animal welfare management system. It provides employees with both online and offline training, with particular focus sessions for pig technicians. Muyuan has developed intelligent pig houses featuring fresh air filtration and real-time monitoring via Internet of Things technology. However, whether these practices are implemented across all operations is kept a secret.

The company sets stocking density standards for pig pens, limits transportation times to 8 hours, and commits to humane slaughter through the use of carbon dioxide stunning. It provides enrichment materials to engage pigs in natural behaviours and maintains stable pig communities. The company also focuses on breeding pigs better suited for the Chinese environment. However, information on teeth clipping and tail docking is not available for the current reporting period.

The company has obtained GLOBAL GAP (Global Good Agricultural Practice) standard certification for five farms. The company applies Global GAP standards to its pig farms and conducts internal audits focusing on food safety and environmental protection. However, it is not certified by Global GAP and does not disclose conducting internal audits specifically for animal welfare.

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

The company has installed lightboxes with heat lamps for newborn piglets and implemented intelligent controls for various environmental factors. However, it does not mention the use of gestation crates, tail docking, or surgical castration and lacks provision for enrichment materials to promote natural pig behaviour.

The company commits in writing to respect human rights, both within its operations and those of its business partners. However, it does not mention adhering to internationally agreed standards.

The company conducts quarterly evaluations and updates on human rights issues for its suppliers, indicating its ongoing monitoring and assessment efforts. Additionally, the company has implemented an internal policy that requires suppliers to pay an integrity and honesty deposit. This deposit serves as a form of assurance, and if a supplier violates the integrity agreement, the deposit will be deducted as a consequence. However, the company does not discuss monitoring human rights risks in its operations or whether it undergoes a human rights due diligence process.

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 as well as discrimination. However, it does not explicitly mention the prohibition of forced labour, inhumane treatment and harassment, the promotion of fair wages or a paid sick leave policy within its operations. Further, the company does not make specific reference to audits covering human rights policies or fair working conditions. The company requires suppliers to prohibit abuse and harassment, child labour, forced labour and discrimination. However, it does not mention the promotion of fair wages within its supply chain.

The company does not mention whether it conducts supply chain audits covering the policies of abuse and harassment, child labour, forced labour and discrimination. The company has established grievance mechanisms for reporting integrity violations and company management. The company also mentions the use of WeChat as an anonymous reporting channel. Whether these reporting channels were designed in consultation with stakeholders such as unions and employees is still being determined. The company also provides a mechanism that external individuals can use. However, the company's whistle-blower protection mechanism does not mention the supply chain, so anonymity is not guaranteed. The company does not explicitly disclose the total number of grievances it received during the reporting period.

The company emphasises its commitment to protecting the health and safety of its workers. However, it does not disclose if it holds a certification for health and safety. Each company's business department has a dedicated safety management section responsible for ensuring safety, but the company does not state whether these include worker representatives.

The company does not disclose injury or fatality data for the current reporting or previous year. Nor does the company disclose turnover rates for the reporting period.

The company clarifies that freedom of association is prohibited in China, and therefore, the company is exempt from addressing the question regarding freedom of association. However, the company does not provide sufficient details of alternative representation methods or mention whether suppliers must set a policy on freedom of association and collective bargaining.

The company explicitly mentions that it supports employees' collective bargaining rights. The company does not provide specific details about the distribution of its workforce across existing contractual agreements.

The company regards food safety as an important issue and has established a food safety system involving the whole process from raw materials to slaughter. It has improved its traceability system and established a "711" food safety assurance system. By the end of 2022, 14 feed mills were FSSC 22000 certified and five farms were GlobalGAP certified. Further, slaughterhouses in Neixiang and Zhengyang passed the China HACCP. These are GFSI-recognised. On its website, it states that all feed mills implement FSSC 22000. However, the proportion of total owned facilities certified with GFSI-recognised standards is not explicitly disclosed and cannot be inferred. Further, it does not confirm whether suppliers are expected to hold GFSI certification.

The company mentions that its pig farms undergo internal audits to ensure food safety. It further discloses that in 2022, its Neixiang Muyuan Modern Agricultural Complex Co., Ltd. obtained certification from China Good Agricultural Practice (GAP) and successfully passed the authentication review by the Certification and Accreditation Administration of the PRC. However, it does not provide information regarding the number or frequency of audits or the corrective action rate. It has integrated food safety management into its slaughter process, expanding its existing food safety management system to create a comprehensive quality traceability system across the entire supply chain. However, the information disclosed makes it unclear if this is consumer-facing technology.

The company mentions its efforts to enhance the "Product Recall Control Procedure" and the "Non-conforming Product Simulated Recall Exercise Plan," but it does not provide specific details about these improvements in the disclosed information. Zero product recalls took place in 2022.

The company does not provide any information regarding market bans, and none were detected during media screening in the reporting period.

The board is responsible for developing the company's social responsibility development strategy and reviewing primary sustainable development goals and plans. In addition, the company conducted a materiality assessment to identify material issues for the company and its stakeholders. The identified issues included 27 topics across economics, social class, and environmental class. Furthermore, the board reviewed and confirmed the results of the materiality assessment. All board-level expertise in sustainability, food safety or innovation is kept secret.

The company has not disclosed executive monetary remunerations linked with climate or sustainability performance. Nor has it disclosed engaging with civil or trade associations on ESG issues, a comprehensive list of trade association memberships or if it aligns any policy-engagement activities to restrict global temperature rise to 1.5C.

The company does not explicitly mention innovation in the context of sustainability or disclose how it benchmarks itself against peers in sustainability and innovation.

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

The company does not indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.