In response to the increasingly severe global water challenges, the Company has incorporated a water management strategy of "Prioritizing Water Conservation, Managing Systematically" across all stages of production and operations. By proactively driving high-efficiency water management across the entire industrial chain, the Company is committed to reducing water consumption and wastewater discharge.We strictly adhere to a series of internal policies and regulations—including the ‘Environmental Policy’, Water Resource Management Procedure ‘Water Resource Management Procedures’ and ‘Rainwater and Wastewater Management’—in carrying out our water resource management work. Through measures such as water resource assessments, lawful water abstraction permits, water balance testing, water consumption monitoring and water-saving awareness campaigns, we advance the development of the company’s water resource management system and protect the water environment in the areas where we operate.

Water Resources Management Framework

We have established a clearly structured water resource management framework with well-defined responsibilities: the Sustainability Committee, which reports to the Board of Directors, is responsible for reviewing and overseeing strategic objectives and performance in water resource management, identifying and managing relevant risks, and coordinating the integrated development of water resource management with the company’s overall operations. The Company President, as a member of the Committee, leads and oversees sustainability initiatives, including water resource management. The day-to-day management of water resources, including target setting, project implementation, technical support and guidance, is the responsibility of the Environmental Engineering Department within the Production and Construction Management Department. This department has formed a dedicated water management team and reports regularly to the company’s senior management.

Water Reuse

Surface water and groundwater are reused after reaching the standard through water purification facilities. To reduce wastewater discharge and conserve water resources, some of our factories reuse concentrated water. After further treatment, the external drainage from the sewage and the concentrated water from the water treatment are recycled and used as circulating cooling water and plant domestic water (washroom water, cleaning water, planting water, etc.),effectively reducing the waste of water resources.

In 2025, Yihai Kerry completed a total of 72 water-saving projects, achieving a water conservation of 5.4 million tons.  

Water footprint certification conduction
In 2022, Yihai Kerry commissioned a third-party organisation to carry out a water footprint audit on its rice bran oil.

The water scarcity footprint of 1L of rice bran oil from gate to gate (i.e., the water footprint generated by the direct consumption of fresh water and the discharge of wastewater pollutants from raw materials entering the plant boundary through processing and production) is 0.7397 dm H Oeq/L; the water eutrophication footprint is 7.26 mgPO eq/L.
 

Rice Bran Oil Water Footprint Vertification Statement.pdf

Attention to water resources risk

With reference to the World Resources Institute's (WRI) ferry database and in conjunction with the average daily water withdrawal data, Yihai Kerry has classified the risk of water stress into five levels by adopting the method of "Comprehensive Average Daily Water Withdrawal = (Ferry Rating Data + Average Daily Water Withdrawal Level)/2".

We conduct annual water risk assessments for all the production and operating sites, and in 2025, the following water stress risks were identified for each subsidiary:

Reduce the risk of water stress at the operating site by identifying and assessing potential water stress risks, developing a program of appropriate response initiatives, and actively communicating and collaborating with various stakeholders.

In the future, we will continue to improve water risk management, strengthen water conservation and reuse, promote supply chain water conservation programs, and set realistic water conservation targets based on the continuous monitoring of water use.