Muyuan Foodstuff Co Ltd

The company mentions it has adopted the LEAP framework to establish a biodiversity risk management mechanism. The company has also started using the WRI Aqueduct Water Risk Atlas to conduct water risk assessments across all major operating sites, including farms, feed mills and slaughterhouses. The company discloses that 1.92% of its operating sites are located in regions classified as high risk from a water quality perspective. However, the company does not disclose the specific geographic regions' risk.

The company discloses the average concentrations of COD, ammonia nitrogen, and total phosphorus for all its sites. The company's average wastewater parameters are below the IFC EHS guidelines limits. However, this is a weighted average for all the sites, and it is unclear what percentage of sites have individual parameters that align with the IFC EHS guidelines. The company discloses that it paid 1.3064 million yuan in fines related to environmental issues. The company discloses the amount invested in fixed assets to support water supply in high-risk sites, as well as operating expenses.

The company views biodiversity and water quality as strategic risks, explaining how these factors drive the company´s assessments and management plans. The company discloses that 1.92% of its operating sites are located in regions classified as high risk from a water quality perspective. The company also mentions that it conducted a total of 906 biodiversity impact assessments and risk monitoring sessions, with no major risk incidents identified. However, the company does not disclose the specific areas of high biodiversity value or at water risk.

The company includes all its operations in the risk assessment, including livestock farms, as it owns 100% of these farms. The company mentions that it assesses biodiversity risks for 70% of the local procurement of raw grain. Biodiversity risks are evaluated by analysing the impact of climate change on species loss and Muyuan's dependence on ecological and natural resources. However, this is a model rather than a current assessment, and the company does not consider other drivers of biodiversity loss apart from climate change.

The company does not disclose this information.

The company does not disclose this information.

The company discloses information about the different treatments used for its wastewater. Wastewater from pig farms is treated by solid-liquid separation and anaerobic fermentation, among other processes. The company employs various treatment methods for manure, including biogas production and composting. It explains the different characteristics achieved as a result of these treatments, such as volume reduction and the conversion of ammonia nitrogen into nitrate fertiliser. The biogas produced is used for electricity generation and farm operation, the biogas slurry is applied to crop fields, and pig manure and biogas residues are composted and fermented after solid-liquid separation to produce organic fertilisers.

The company used to disclose an overall target to reduce wastewater metrics for its slaughtering factories, including COD and ammonia nitrogen emissions targets. However, it no longer discloses that information. The company mentions that 1.92% of its operating sites are located in regions classified as high water risk. For these sites, the company mentions that it implements different measures. It also discloses the investment made in 2024 to support water supply in high-risk sites. However, it seems the company considers this issue from a water scarcity threat perspective, rather than improving wastewater discharge in high-risk areas.

The company mentions that it actively promotes the combination of crop planting and pig farming. It provides integrated manure utilisation and scientific planting services, led by agronomists, to third-party arable farmers who grow fruits such as oranges and apples. The company also mentions that it tests the soil nutrients before manure application and customises schemes for each farm and cropland. The company discloses using a feed receipt with lower protein content to reduce nitrogen emissions in manure.

The company discloses the treatment of manure and animal waste with anaerobic digestors. However, it does not provide information about the quality of the end product.

The company does not disclose information.

The company does not disclose information.

The company provided a response to the investor letter and responded to the engagement questions. The company met with investors within the engagement period. The company acknowledged the FAIRR´s assessment and provided feedback.