Wens Foodstuff Group Co., Ltd.

The company does not disclose having a science-based emission reduction target. It mentions that it continues to innovate the feed formulation to reduce methane emissions by enteric fermentation. However, it does not have a specific reduction target.

The company does not disclose whether it has set quantitative targets to reduce GHG emissions from Scope 1 and 2. However, it mentions various energy-saving and carbon-reduction measures. These include building a pig farm that reduces land use and offers environmental protection and farming automation, increasing energy saving and reducing emissions. In 2022, it will carry out an energy-saving transformation of the equipment and facilities of the existing buildings, which will reduce the energy consumption on the site. The report covers the company and its subsidiaries. Therefore, the geographic scope is considered to be universal. It does not disclose whether it has set targets to reduce GHG emissions from Scope 3.

The company uses biogas generated during the anaerobic fermentation of manure in its factories and encourages its cooperative farmers to use clean energy and biogas. It also reduces energy consumption by improving equipment in animal farming, such as adopting thermal insulation designs in livestock and poultry houses. It promotes feed formulas to enhance nutrient efficiency, reduce enteric fermentation, and reduce greenhouse gasses. However, it does not explicitly mention working with suppliers to reduce emissions.

The company discloses that it keeps developing innovative feed ingredients, improving feed quality, and decreasing GHG emissions through advanced technology, such as low protein ingredients, enzymes and pre-digestion technology.

The company uses biogas for water heating, kitchen fuel use and daily needs for farms. It mentions that some farms of the poultry business division have already implemented biogas for power generation. The average daily power generation is about 930 kWh and around 279,000 kWh annually. However, it does not disclose any innovative projects to reduce or mitigate emissions directly from animal farming.

The company discloses Scope 1 and 2 carbon emissions.

Although the company produces and farms its own livestock, it is unclear if Scope 1 and 2 emissions disclosed include emissions from animal farming.

The company does not disclose to CDP climate change questionnaire. The company does not disclose the data on GHG inventory is audited by a third party.

The company discloses an increase in Scope 1 and 2 emissions of 12.1% compared to the previous reporting year. It mentions that the volume of the company's main products in 2022 increased significantly compared to 2021. It further expanded the scope of large emission data, strove for accuracy, and collected the company's emission data as comprehensively as possible. It mentions that it continues to reduce methane emissions from enteric fermentation by innovating the feed formulation technology. However, it does not disclose a quantitative decrease.

The company does not disclose information on climate-related scenario analysis.

The company discusses the price volatility of feed raw materials due to climate change in its 2022 annual report. However, it does not disclose the mitigation plan.

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

The company discloses that it procures soybean as a raw material to produce animal feed. However, the company does not disclose information on how it manages deforestation risks linked to soy. China imports a significant amount of soy from South America, mainly from Brazil, an area at high risk of deforestation.

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 mentions that it assessed raw material suppliers' environmental and social performance and established a comprehensive traceability system to track the source of raw materials to identify potential high-risk areas. It further mentions that it has achieved 100% coverage of the screening and auditing process of suppliers' social responsibility standards. However, it needs to provide further detail on the traceability of soybeans sourced for animal feed or how it monitors its suppliers.

The company monitors suppliers and implements a blocklist system for suppliers not complying with the company's requirements. However, it is still being determined if this applies to deforestation compliance in the context of soy for animal feed. Wens mentions that it has a traceability system to track the source of raw materials and ships raw materials to its feed factories. However, it does not explicitly disclose the level of soy traceability it currently has.

The company does not discuss innovations and/or practices to move towards sustainable feed sources.

The company does not disclose any information on a water risk assessment. It provides a high-level discussion of water-saving measures, such as using high-efficiency cleaning machines, optimising the flushing process, and steadily promoting water-saving drinking fountains. Wens disclosed the total water consumption in 2022.

The company mentions setting a water use target. However, it does not provide details on targets set at its processing facilities. It continues to minimise production water consumption, improve water use efficiency, and offer practical solutions to local water resources protection. However, the company does not disclose further details.

The company categorised its total water consumption from municipal and other sources. It discloses investment in environmental protection for FY2022. However, it does not explicitly mention water-related/waste-water-related CAPEX by percentage or amount. It reveals an increase in water consumption in 2022 and states that it results from increased leading product sales.

The company procures soybean, corn, cotton meal, and wheat bran as raw materials for animal feed. However, it does not disclose information relating to water scarcity risks in feed farming.

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 mentions that it has set extensive water targets across its business divisions. However, it only provides examples of targets in its pig farming division. It provides no detail of progress against these targets, when they were set, or if water-use targets are an explicit requirement.

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

The company discloses that during the latest reporting period, no significant environmental protection incidents occurred in its operations. It has not conducted a water risk assessment from a quality perspective and has not disclosed high-risk locations. The company has measures in place to reduce wastewater discharge. However, it does not tell a target to reduce the volume or improve the quality of sewage. Wens states that it has measures to reduce wastewater discharged. However, the company does not disclose a book or quality target for sewage.

The company discloses wastewater metrics for both its self-owned farms and family farms. This includes absolute COD and Ammonia Nitrogen emissions compared to previous years. It also discloses wastewater metrics for each subsidiary. This includes the names of main pollutants, emission concentration, total emissions, approved total emissions, and excessive discharge. It also disclosed the total wastewater discharge in 2022.

The company discloses that it has increased the volume of pollutants in wastewater at a segregated level. However, the company does not tell the aggregated book of sewage discharged or aggregated concentration levels of contaminants so that it can be determined if wastewater quality has been improved. Wens did not disclose this information for the previous reporting year, so we cannot calculate a change in the volume of water discharged.

The company does not disclose information relating to nutrient management in feed farming.

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

Wens mentions the importance of good manure management to reduce the emissions of methane and nitrous oxide, given the potency of these greenhouse gases. It discusses how it converts manure to biogas to generate energy, such as heating water for employees. The remaining slurry from biogas production is used as base fertiliser and applied in specified quantities.

The company mentions that it has some research centres focussing research on manure and waste pollution. However, the company needs to cite any technical support to suppliers or own farms to improve manure storage and nutrient management.

The company provides a statement describing its use of low-protein diet formulas to improve the nutrient utilisation rate of its livestock.

The company recognises the significance of antibiotic-free farming and uses antibiotic-free feed for both meat and breeding pigs. It also implements a three-level biosafety prevention and control system in poultry farming. However, it does not have a formal antibiotic policy or commitment.

The company does not disclose the quantity of antibiotics used.

The company provides a detailed overview of its animal welfare measures, focusing on reducing stress and improving comfort for pigs and cattle. It outlines practices for balanced nutrition and optimised environmental conditions. However, it does not commit to the Five Freedoms framework. The company's cattle farming practices are more thoroughly disclosed, but its pig farming division lacks explicit detail, focusing mainly on transportation and slaughter procedures.

The company takes measures for pig transportation, including timing adjustments to reduce exposure to extreme temperatures, and utilises anaesthesia motors for electrically stunning and slaughtering pigs. However, there is no explicit commitment to minimising transportation time or adopting humane slaughter practices comprehensively. Additionally, information is confined to pig transportation, leaving transportation practices for cows undisclosed.

The company does not disclose the involvement of third-party entities in auditing, monitoring or assuring 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 disclose specific information on gestation crates, tail docking, surgical castration, stocking densities, water-bath stunning, higher welfare breeds, or enriched environments.

The company mentions that it safeguards the rights and interests of its employees and abides by the Labor Law of the People's Republic of China, which protects workers' rights in China. However, it does not sufficiently acknowledge its responsibility to uphold human rights.

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 whether it has identified any human rights risks in its operations through human rights due diligence

The company does not provide a high-level discussion on the prohibition of child labour, forced labour, harassment and discrimination or the provision of fair wages in its operations or supply chain.

The company has a complaint channel for reporting concerns open to employees, business partners and external stakeholders. Those calling the complaint channel have the option to remain anonymous. However, it does not specify whether mechanisms are designed in consultation with stakeholders (unions, employees, etc.). The total number of grievances received in the reporting year is not disclosed.

The company provides a high-level discussion on its employees' occupational health and safety. However, the company does not disclose whether it has any certification for health and safety or state the number or percentage of facilities with a health and safety committee composed of worker representatives.

The company reports a reduction in injuries from 400 in 2021 to 372 in 2022. The company does not disclose a turnover rate.

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 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 emplyees right to bargain collectively.

The company discloses that some pig farming and poultry subsidiaries have passed ISO22000 and HACCP quality management system certification. These are not GFSI-recognised. Moreover, it provides a high-level discussion of food safety, including a four-level organisational structure for food safety management, from strict implementation of responsibilities and obligations, management, and effective monitoring of the entire process of source, production, and sales to ensure the safety of the production chain of livestock and poultry products from farm to table. It states that some organisations in its value chain possess ISO22000 and HACCP certifications. Still, it is not universal and is not a stipulated requirement or expectation from the company for suppliers to hold these certifications. Additionally, these only apply to some subsidiaries.

The company states that there is a quality management team composed of professional quality control personnel, which conduct quality and safety inspections regularly and irregularly every year. In 2022, it completed more than 200,000 batches of food safety testing. At the same time, the pig-raising unit conducts daily inspections of tertiary companies, cooperative farmers, breeding communities, fresh products, slaughtering, and cooked food processing. However, it does not disclose corrective action rates nor whether it is developing or has developed a consumer-facing technology for food safety.

The company discloses that food safety is a material risk due to the impact on consumer confidence in its products, the impact on the brand in terms of trust, and the market demand for its food products. It does not explicitly mention the risk of recalls but acknowledges food safety performance as a material business issue. It does not provide details of its recall system but discloses zero major food safety accidents and recalls throughout the reporting year.

The company does not disclose information related to market bans in the reporting period, and none were detected in the media screen.

The company mentions that the board of directors put forward goals related to social responsibility. However, it does not define these issues, and whether the board has formal oversight of sustainability issues is unclear. Also, the company discloses a graph that shows 20 substantive issues that are important to both stakeholders and the company. In 2022, the most important seven issues concerned food quality and safety management, integrity and compliance management, employee rights and interests and well-being, green ecological breeding planning, risk management system, building a biosafety prevention and control system and employee health and safety. The company does not discuss holding board-level expertise in sustainability, food safety or innovation.

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 with the goal of restricting global temperature rise to 1.5C.

The company discusses its strategic approach to innovation. It has invested heavily in scientific research and innovation by building a scientific research expert team comprised of more than 20 industry experts, 64 doctors as R&D leaders, and more than 300 masters as the backbone of R&D. Moreover, it has promoted the use of Internet of Things technology, used for automation and the intelligent transformation of farming facilities that have helped to reduce labour intensity and improve farming efficiency. 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 does not indicate having an approach towards diversifying its product range to include alternative proteins.