Want Want China Holdings Ltd

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

The company has set a target to reduce 13% greenhouse gas emission intensity by FY2025, with FY2020 as the base year. The target covers only the company's Chinese operations.

The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.

The company does not engage in innovative projects to reduce or mitigate emissions from feed farming

The company is investing in improved wastewater treatment to reduce emissions from sludge. The extent of the innovation's roll out is unclear from the disclosure.

The company discloses 191,465.44 tonnes of Scope 1 and 302,314.53 tonnes of Scope 2 emissions in FY2022.

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 has responded to CDP Climate Change 2022 and scored B. However, the reports are available to the investors. The company's Shandong Want Want Food Co., Ltd subsidiary emission data is verified by a third party.

The company's GHG emission decreased by 10.7% from 553,505.50 in FY2021 to 493,779.97 in FY2022. However, GHG inventory is incomplete since the company has not reported Scope 3 emissions.

The company conducted climate-related scenario analysis during the reporting year. It identified and prioritised climate change risks and opportunities of three timeframes - short-term (0-1 year), medium-term (1-3 years) and long-term (3-10 years), and two dimensions of risk possibility and financial impact. It combined the impact matrix of physical risks under the RCP4.5 Scenario and RCP8.5 Scenario.

The company discusses the projected impact of physical risks, such as how extreme weather caused by climate change might affect the output and price of the upstream agricultural products supply, thus affecting the cost and availability of raw materials that may further increase the production cost. However, it does not discuss mitigating measures to adapt to the projected impact of physical risks on feed ingredients' availability and price volatility. It references the risk of scorching weather but only discloses this in the context of its processing facilities. It mentions that increased pricing of GHG emissions may lead to higher energy costs and carbon taxes, negatively affecting the company's financial performance and production costs. However, it does not disclose how to mitigate and adapt to increased electricity and energy demand and prices. It recognises the risk of carbon taxes on business costs and discusses potential mitigation opportunities.

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

The company sources soy for cattle. Therefore, soy is assumed to represent 2% or more of the total feed ingredients sourced.

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

The company does not report progress against its commitment. Nor did it responded to the CDP Forest Questionnaire in 2022.

The company does not reference deforestation in its supplier code of conduct or selection process. It encourages suppliers to engage in forest protection, conduct traceability management and reduce deforestation risks. However, it needs to provide details of its support to suppliers. It also needs to be clarified if this statement applies to soy procurement, as it only explicitly mentions palm oil and timber products when referring to forest-risk commodities.

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.

The company is committed to practising sustainable agriculture, including rational use of agricultural chemicals and fertilisers, optimising water use, reducing environmental pollution, protecting soil health and preventing ecological damage. However, it needs to provide further detail about the innovations or practices it promotes. FAIRR recommends improved disclosure of its sustainable agricultural practices and the benefits this provides to soil health and biodiversity.

The company has conducted a risk assessment and concluded that nine facilities are exposed to water risk. As such, the company does not only operate in areas of low-water stress. The company discloses the location of these facilities. It disclosed total water consumption for the year and stated that it had adopted various water-saving measures. Want Want has also carried out three types of special water-saving projects, which it says could save 444,800 tonnes of water.

The company has set a target to achieve a 10% improvement in water use efficiency by FY2025, using FY2018 as a base year. It reports that it has reached 70% of its target.

The company discloses water withdrawals by source alongside the total water consumption in the last reporting period. It declares water withdrawals from nine water stress areas and a 20% increase in water-related capital expenditure. Want Want reports that it anticipates a 10% decrease in water-related OPEX. It audits violation information, water risk assessment, financial investment and income and financial expenditure. It has responded to CDP Water Security 2022. Want Want discloses a reduction in water withdrawals in FY2022. However, CDP Water Security 2022 reveals increased water consumption in FY2021.

Want Want has disclosed its Water Policy in CDP Water Security 2022, stating improved water use efficiency. The company also states that water-related targets must be included within its supplier selection mechanisms. In addition, it says that it works with its critical raw material suppliers to improve water-related performance to reduce water risks. Want Want discloses that it plans to gradually promote water-saving measures for suppliers, focusing on reducing the water intensity of planting crops. However, it is not clear what steps are currently being taken.

The company does not disclose feed water intensity, or the proportion of feed sourced from water stresses areas. Further, the company does not provide evidence that it is investing in sustainable feed production from a water use perspective.

The company does not disclose the proportion of animal protein commodities produced and/or sourced in water-stressed areas. It does not disclose information addressing water scarcity in its animal supply chain, nor does it discuss guidance it offers to animal farmers/suppliers on water usage.

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

The company states that it aims to treat 100% of wastewater. However, this target is not a time-bound quality target.

The company disclosed its wastewater quality in FY2022. It discloses the volume of wastewater discharged in the reporting year. Want Want has responded to CDP Water Security 2022.

The company states that professional disposal units dispose of the waste through various methods, including organic fertiliser and anaerobic power generation. However, it does not state that the company converts animal by-products from processing effluents into fertiliser or biogas. It discloses improved wastewater quality measures in Chemical Oxygen Demand (COD) emissions FY2022. The company's wastewater discharge decreased in FY2022 by 7.47%.

Whilst the company does not refer to nutrient management in its supplier code of conduct, the company states that it is committed to practising sustainable agriculture. Part of this commitment is responsibly using fertilisers, protecting soil health and preventing ecological damage. It collaborates with suppliers to cut down pollution concentration from the source. However, this collaboration is referenced to crop production.

The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company discloses that waste "sludge" is used for organic fertiliser and anaerobic power generation. However, this does not seem to include manure or effluents.

The company does not make site-specific nutrient management plans a part of its supplier's contractual agreement and/or own farms management. Nor does it provides technical and/or financial support to suppliers and/or own farms to develop nutrient management plans and improve manure storage.

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 does not disclose any information regarding its antibiotics policy.

The company does not disclose the quantity of antibiotics used.

The company does not disclose any information regarding its animal welfare practices.

The company does not state a commitment to engaging and training employees on animal welfare issues.

The company does not disclose animal welfare certifications or mention conducting internal animal welfare audits.

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

The company does not disclose information on prohibiting tethering, monitoring lameness prevalence, mastitis incidence, or appropriate bedding.

The company commits in writing to uphold a people-oriented approach guided by international human rights conventions and labour standards such as the Universal Declaration of Human Rights (UDHR). However, it is unclear if its human rights policies also apply to its operations outside China.

The company does not discuss how it monitors, assesses and mitigates actual and potential human rights risks in its own operations or supply chain.

The company does not disclose conducting human rights due diligence to identify human rights risks.

The company prohibits harassment, discrimination, child labour and forced labour. However, the company does not commit to paying fair wages or mention sick pay. Furthermore, the company does not state whether it requires suppliers to prohibit harassment, discrimination, child labour and forced labour or promote fair wages.

The company has established a whistleblower mechanism to encourage employees and suppliers to report integrity violations actively. However, the company does not explicitly mention that the mechanisms are anonymous or designed in consultation with stakeholders. The company did not have any complaints related to discrimination or harassment in the reporting year. However, the company does not disclose if it received complaints concerning other integrity violations.

The company provides high-level statements regarding its commitment to protecting the health and safety of all its workers. It has formulated a sound internal safety management system based on ISO 45001 standards. In addition, the group discloses that 18 of its factories have obtained ISO 45001 certification. However, it does not discuss the existence of health and safety committees.

The company's lost time injury frequency rate has increased from 0.831 in FY2021 to 0.937 in FY2022. The company discloses zero work-related deaths during the reporting period. In comparison, it had two fatalities in total in the three years prior to the reporting period. The company reports a 16.69% voluntary turnover rate in the reporting period. The turnover rate is disaggregated by age, region and gender but not by seniority.

Most of the company's operations are in mainland China and, thus, are exempt from promoting 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 discloses that 31% of employees have signed collective bargaining agreements. In addition, it discloses the number of full-time employees and the distribution of its workforce by age, status and region. However, the company does not reveal the number of part-time, hourly, or subcontracted workers it employs.

The company abides by the Food Safety Law of the People's Republic of China and the Product Quality Law of the People's Republic of China. Its 71 operating plants have obtained 127 standard certificates for quality and food safety systems, including FSSC 22000, BRCGS, China HACCP, ISO 22000 and ISO 9001. Some of these are GFSI certifications. It discloses an 88.7% coverage rate of GFSI-recognised standard accreditation. Further, it reports that it has established a sound supplier selection process, including verifying the supplier's quality and food safety system. It also mentions that it assesses and manages suppliers from different aspects, including quality and food safety, and sets up a rating system based on the assessment result. It manages its suppliers according to their rating, prioritising those with good ESG performance, including food safety qualifications. Qualification information of suppliers is reviewed every year. However, it is not clear whether it expects suppliers to have GFSI certification.

The company reports several key food safety performance rates, including a 100% pass rate for external inspections and quality inspections of finished products. Further, during the reporting period, it conducted 1095 internal audit activities relating to food safety. It also monitors supply chain risks through regular supplier audits and onsite factory inspections to check against reported information on the relevant raw materials. It notes that 100% of the risks discovered were solved, and related anomalies were intercepted.

The company strictly abides by the Food Recall Management Measures and other laws and regulations and has established a product simulation traceability mechanism and recall process. Further, it manages traceability through its SAP system. However, it does not provide detailed information on its product recall system. It had zero product recalls in the reporting period.

The company provided no disclosure on market bans during the reporting period; none were detected in the media screen.

The company established an ESG Committee in August 2020, chaired by the group’s chief operating officer, to oversee and achieve the group’s sustainable development objectives. Also, the company conducted a materiality assessment in FY2021 and then further adjusted the materiality matrix for FY2022, identifying 254 topics as material issues this year. These include water resource and wastewater management, waste management, exhaust emission management, energy consumption management and environment-friendly activities. The company discloses that the ESG committee prioritises the material issues that form the materiality matrix. In addition, the company reports holding board-level expertise in innovation but not in food safety or sustainability.

The company states that executive monetary remunerations are linked with sustainability performance. However, the company does not disclose the % of variable compensation linked to the metric. The company provides details on trade association memberships. However, it has not disclosed engaging with civil or trade associations on ESG issues or if it aligns any policy-engagement activities to restrict global temperature rise to 1.5C.

The company promotes technological transformation and innovation to reduce pollution and lower wastewater content. The company also invests in innovative R&D systems, focusing on new products, packaging materials, quality improvement, and method development. In addition, it is focusing on nutrition and health outcomes, developing products with low sugar, fat, sodium, organic substances, reduced artificial ingredients and plant-based nutrients. However, the company does not disclose how it benchmarks itself against peers in sustainability and innovation.

The company understands the new trend and pursuit of consumers towards plant-based products. Therefore, it wants to capitalise on the opportunity to keep increasing the proportion of nutritionally fortified and plant-based products offered. However, it does not disclose a timebound target to diversify protein sources or sales/revenue linked to alternative protein sources.

The company has several plant-based products, including one that directly substitutes animal protein, the "Fix XBody Oat Milk". It mentions that it wants to seize the opportunity to keep increasing the proportion of nutritionally fortified and plant-based products offered to consumers. It intends to continue researching and developing various plant-based products to support this. However, it does not explicitly confirm that it invests in R&D for future growth beyond its current product offering.