Yihai Kerry is committed to ensuring our sustainable and long-term products supply capability, reducing product supply risk,and working with our stakeholders to co-achieve sustainability goals in environmental, social and corporate governance aspects by continuously promoting sustainable sourcing.

Yihai Kerry strictly comply with the group's relevant procedures to manage the access, the assessment and annual audit of bulk material suppliers. In 2021, Yihai Kerry issued a Sustainable Sourcing Policy, supporting by a Responsible Palm Oil Sourcing Policy and a Responsible Soybean Sourcing Policy, depending on the type of the raw material. The Company will give preference to palm oil suppliers with a strong commitment to "No Deforestation, No Peat and No Exploitation" and soy suppliers with a commitment to "No Illegal Sourcing, No Deforestation and No Exploitation".

 Policies Relating to Sustainable Sourcing

In the future, we will develop more sourcing policies based on different social issues related to different raw materials such that the scope of sustainable sourcing is expanded and the basic sustainable sourcing policies are effectively implemented.

In line with our responsible sourcing policies, we are committed to promoting sustainability and traceability in the sourcing of palm oil and soybean. Yihai Kerry actively carries out the tracking and certification of sustainable soybeans and conducts SGS IP certification for some domestic non-GMO soybeans.

In 2022, the percentage of raw palm oil sourced by IHGL that can be traced back to the crushing mill of origin will be 91%; soybeans with SSAP certificates will account for 25% of the total amount of imported soybeans sourced.