Sustainable sourcing plays an increasingly important role today. Considering the impact of trade activities on the environment and human rights, as well as consumers' increasing expectations for the social responsibilities of listed companies, Yihai Kerry expects suppliers to operate in accordance with the same principles and values as us.
For Yihai Kerry, suppliers are our key partners in addressing environmental, human rights and other social issues along the supply chain. By working and cooperating with suppliers on environmental protection, respect for human rights, and standardization of business ethics and risk management, we can achieve the sustainability targets among suppliers, society and Yihai Kerry.
In 2021, in order to communicate this basic guideline to all suppliers, we developed a Supplier Code of Conduct and a Sustainable Sourcing Policy. In addition, we have successively developed the Responsible Palm Oil Sourcing Policy and Responsible Soy Sourcing Policy based on the classification of raw materials, and on that basis, we aim to set the traceability of palm oil and soy as a medium and long term goal by 2022.
We will communicate the above policies with stakeholders across the supply chain.
Policies Relating to Sustainable Sourcing
Palm oil is considered as one of our main ingredients for production, while environmental problems and human rights issues such as child labour and forced labour along the planation and production process, have often aroused concerns. Therefore, we are committed to sourcing and processing traceable and sustainable palm oil, prioritizing suppliers with firm NDPE commitments. Currently, over 60% of our palm oil sourcing are traceable and come from suppliers with firm NDPE commitments. Meanwhile, we are constantly developing positive action plans with an ongoing focus on traceability and sustainability of palm oil.
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.