New Hope Liuhe Co Ltd

The company does not have a science-based emission reduction target. It mentions methane reduction through manure treatment but does not have a specific methane emission reduction target related to animal farming.

The company's business involves breeding, raising, and processing pigs, chickens, and animal feed. It discloses that it actively promotes the diversified utilisation of clean energy, such as photovoltaics and biogas, optimises the energy structure, reduces the use of fossil energy, and assumes responsibility for emission reduction. However, it does not disclose specific energy-saving targets, renewable energy use, or emissions reduction. It plans to implement a new target over the next two years. The reports cover the company's and its subsidiaries' data; therefore, the scope is universal. Its disclosure does not report a specific target for Scope 3 emissions.

The company states that it is repurposing land previously designated for feed production to promote carbon sequestration. However, it does not discuss working with suppliers to reduce emissions generated from feed production.

The company states that it uses approximately 40% of its crop farmland for carbon sequestration and acknowledges the significance of biological carbon sequestration. However, it does not provide specific details about innovative actions to reduce direct emissions from feed farming activities.

The company discloses treating wastewater and manure but does not disclose any innovative projects aimed at reducing or mitigating emissions from active animal farming operations.

The company discloses its Scope 1 and 2 emissions and does not report Scope 3 emissions.

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 did not respond to the CDP Climate questionnaire in 2022.

The company reports a 12.5% increase in Scope 1 and 2 emissions from 2021 to 2022. However, it does not disclose its Scope 3 emissions.

The company stated that it anticipates using qualitative and quantitative analysis in the next two years to inform its climate strategy in its 2021 CDP Climate Report. However, no information was found in the current reporting period regarding the implementation or progress of this analysis.

The company acknowledges the increased frequency of extreme weather as a risk to its business, likely to increase costs. However, it does not explicitly address the potential impact of these weather events on feed ingredients' availability and price volatility, nor does it outline specific strategies for mitigating or adapting to these risks. It does mention the increase in corn and soybean prices by 27% year-on-year but does not explicitly attribute it to climate change or extreme weather events.

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

The company indicates that soy accounts for 11-20% of its procurement spend and is used in animal feed. Although the company does not directly import soybeans, it purchases them from major suppliers such as Cargill and Bungee, which source from high-risk areas like Brazil and Argentina. The company also mentions that it uses soybean meal and corn as major feed ingredients, making soy account for more than 2% of the animal feed ingredients.

The company does not disclose having a deforestation/conversion-free target for soy.

The company did not respond to the CDP Forests 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 states that it has a product traceability system which includes feed. However, it does not discloses the percentage of traceable soy it sources.

The company has undertaken research to reduce the amount of soybeans used within its feed and to replace this with alternatives such as cottonseed meal, rapeseed meal, and palm meal. This has resulted in 30 tonnes less soy being used in feed composition since the last reporting year.

The company discloses that it undertakes environmental impact assessments when selecting new sites. However, it is unclear if the company has undertaken a water-related risk assessment of its existing sites to identify those that operate in locations with high or medium water stress. New Hope Liuhe states that it promotes the recycling of wastewater from sterilising processes to address water quality and safety issues within its operations. The company has installed smart water meters to monitor water usage and track improvements. However, the company does not disclose its annual water consumption.

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

The company discloses its water withdrawal from municipal sources in the last reporting period. However, the company does not report the quantity of water from withdrawn from other sources, such as groundwater.

The company procures soybean meal and corn from major suppliers, including Cargill, Bunge Co., Ltd., COFCO, and others. However, it does not disclose specific information regarding water scarcity risks in feed farming.

The company discloses the water intensity of hog production. However, it is unclear whether this figure includes the water intensity related to feed production. The company discloses information about a project that integrates pig breeding and crop growing, where treated wastewater is used for irrigation. This project aims to reduce water withdrawals by promoting recycling. However, the company does not provide specific details about the scope and scale of this project.

The company sets targets for water consumption per head per day for sowing and fattening pigs. It discloses that the daily water consumption for sowing and fattening pigs in 2022 met its target.

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 total of nine penalties during the reporting period related to environmental issues. The company provides detailed information on the reasons for each penalty and the corresponding financial penalties imposed.

The company reports the total COD (Chemical Oxygen Demand), Total Ammonia Nitrogen Emissions, and Sulphur Dioxide emissions for the fiscal year 2022. It discloses the total volume of wastewater treated in 2022. However, the company does not disclose the specific volume of wastewater discharged.

The company discloses that it achieved 100% recycling of its wastewater, utilising the sewage from its facilities as a fertiliser. It reports wastewater quality information for its subsidiaries. Based on the available data, some subsidiaries showed improvements in wastewater quality, while others experienced either a decrease or no change compared to 2021. However, the company does not provide clear information on whether there was an overall improvement in wastewater quality at the aggregated level.

The company discloses that it has a standard model for returning manure and organic fertilisers to fields to grow crops, with each crop having its own application plan. However, it is unclear if this model applies to the company's feed crops.

The company has invested in research and development of alternative feed sources, such as black soldier fly larvae.

The company discusses using aerobic fermenters to convert pig manure to reduce pollutant discharge and produce biogas. The biogas residue is further utilised as organic fertiliser. The company also discloses the implementation of a standardised method for manure and fertiliser application, which includes pre-application measurement of soil nutrient content such as nitrogen, phosphorus, potassium, and organic matter.

The company discloses the methods it uses for the application of manure to crop fields. This involves measuring soil indicators such as nitrogen, phosphorus, potassium, organic matter, and other nutrient content. However, it does not explicitly mention whether this plan is verified or validated through external processes or audits.

The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovation in manure or provide evidence of a community engagement plan in relation to pollution.

The company operates an antibiotic-free speciality brand and utilises antibiotic-free feed for its pigs, aligning with relevant regulations on veterinary drug usage. Additionally, it employs vaccines and biosafety systems, incorporating bio-environment-friendly feed comprising organic acids and probiotics to bolster animal intestinal health and immunity, consequently reducing antibiotic usage. However, these actions only partially constitute a comprehensive antibiotics policy.

The company records antibiotic usage internally but does not disclose this data publicly.

The company commits to animal welfare principles covering adequate nutrition, comfortable living conditions, disease prevention, and stress reduction. However, it does not explicitly use the term "Five Freedoms" in its animal welfare framework.

The company effectively manages stocking density and employs gentle methods for livestock transportation to minimise stress. It utilises humane stunning methods, such as gas stunning, and implements thermal insulation measures and intelligent environmental control systems. However, it does not explicitly commit to avoiding close confinement or long-distance transportation. The 2021 Corporate Social Responsibility (CSR) report mentions the use of bath stunning, considered less humane, without clarification on its current status. Lastly, while it focuses on physical comfort, it does not specify if it provides an enriched environment for natural animal behaviours.

The company does not disclose the presence of third-party auditing, monitoring, or assurance for animal welfare.

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

The company does not provide information on prohibiting gestation crates, tail docking, or surgical castration in pork production. It also lacks disclosure on stocking densities and higher welfare breeds in poultry and employs water bath stunning, which is not considered best practice.

The company acknowledges its responsibility to respect human rights.

The company does not disclose having a due diligence approach to assessing human rights risks or whether it actively monitors human rights risks across its operations.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence

The company commits in writing to prohibit child labour, forced labour, and discrimination in its direct operations. However, it does not ask suppliers to make these commitments or promote fair wages. Further, the company does not discuss paid sick leave or disclose if it undergoes audits covering the policies above.

The company discusses having set up a complaint-reporting channel for employees and seeks to protect the rights of whistle-blowers. However, it does not disclose whether this channel was designed in consultation with stakeholders or if complaints can be made anonymously. Furthermore, the company does not state if suppliers can access a similar mechanism or report the number of grievances received during the reporting year.

The company provides a high-level statement on the importance of health and safety, expressing its commitment to achieving zero safety accidents in writing. The company also mentions that two branches have obtained the ISO 45001 certification, and a further 178 units have obtained some other certification. However, it does not disclose whether each site has a specific health and safety committee.

The company reports a total injury rate of 0.015% and zero fatalities in FY2022. However, no data from previous years is disclosed. Nor is data disclosed concerning turnover rates.

The company's operations in China are exempt from demonstrating support for freedom of association. However, the company does not discuss the rights of freedom of association and collective bargaining of its workforce outside of China. Furthermore, the company does not discuss alternative means of supporting employee representation or whether it requires suppliers to set a policy on freedom of association and collective bargaining.

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.

The company discloses that its owned facilities have GFSI certification, such as GlobalGAP. Further, it has 67 factories certified by China HACCP, 11 factories certified by FSSC 22000, 3 factories certified by BRC, two factories certified by ISO 22000, and 13 factories certified by ISO 9001. However, it does not disclose the proportion or percentage of sites certified. Further, it does not report whether suppliers are expected to hold GFSI certification, nor the portion of those that do.

In 2022, 179 audits were carried out in the company's food and farming branches and subsidiaries. However, the corrective action rate is not disclosed. It has implemented a consumer-facing technology that provides traceability throughout the entire process of its feed companies, farms, and slaughterhouses.

The company recognises that food safety and quality are critical issues for both the company, its stakeholders and consumers. It does not provide details of a product recall system or disclose the number of recall incidents in the reporting year. However, none were detected in the media screening.

It does not provide details of a product recall system or disclose the number of recall incidents in the reporting year. However, none were detected in the media screening.

The company prioritises environmental management as a strategic issue at the board level and includes environmental management indicators in management performance incentives. However, it does not explicitly mention whether the board is formally mandated to oversee ESG issues. Also, the company has conducted a materiality assessment to identify key focus areas, including reducing environmental impact, developing a circular economy, safeguarding animal welfare, ensuring occupational health and safety, and guaranteeing food safety, among others. The company states that once the material matrix is formed, this is reported to the directors for discussion. The company does not disclose board-level expertise in sustainability, food safety or innovation.

The company mentions that it sets executive remuneration incentive policies, which include incentives to enhance environmental protection and other ESG factors. However, it does not disclose the percentage of variable compensation linked to the ESG metric. The company has yet to disclose 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 highlights its strategic approach to innovation, emphasising its investments in research and development across various areas. These include agriculture, animal husbandry, food safety, biological breeding, environmentally friendly and efficient biotechnology products, animal nutrition, breeding technology, and disease prevention and control. However, the company does not 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 acquired Sichuan Huiji Food in 2020, including an alternative protein brand, "Plant Expectation". The brand offers three products that are substitutes for chicken, meatballs and sausages. However, there is no further evidence that it invests in alternative proteins for future growth.