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.

Sustainable Palm Oil Sourcing
In 2021, Yihai Kerry officially launched a palm oil traceability initiative and worked closely with Wilmar International.Based on the existing sustainable supply chain monitoring mechanism of Wilmar International, we enhanced the monitoring of the supply between Wilmar International and Yihai Kerry to establish our own sustainable palm oil monitoring mechanism. In 2021, the Company traced all volumes of the palm oil handled by our refineries, 82% of which were traceable to mill level.Based on the management improvement of sustainable palm oil in Yihai Kerry and Wilmar International, the Company will further extend the initiatives to all suppliers and completed the palm oil supply chain traceability and certifications.

Sustainable Soybean Sourcing

Yihai Kerry actively carries out the tracking and certification of sustainable soybeans and conducts SGS IP certification for some domestic non-GMO soybeans.
The management of IP soybeans requires monitoring and managing the entire process, including seed selection, planting, the growing environment, harvesting, transportation and storage, processing to delivery, and final testing.

In 2021, the Company obtained RSPO (Roundtable on Sustainable Palm Oil) certification for palm oil and lauric acid oil purchases of 285,383 tons. Soybean purchases traceable to farms and certified by SGS IP amounted to 6,039 tons.

In 2022, Yaihai Kerry plans to deepen its cooperation with palm oil and soybean suppliers to carry out more traceability and certification of sustainable palm oil and sustainable soybeans.