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 2023, 92.9% of the palm oil purchased by Yihai Kerry can be traced back to the mill, and 83.2% can be traced back to the plantation; SSAP-certified soybeans account for 20% of the total imported soybean purchases.

Furthermore, all raw materials of dairy products sold by Yihai Kerry in China come from fixed suppliers in New Zealand, with 100% traceability to the farm level (milk source belt located 41-46 degrees south latitude) and 100% of the dairy products obtaining the Fern Mark authoritatively certified by the New Zealand government. Also, all high-end milk products with a protein content greater than or equal to 4.0 have received grass-fed traceability certification issued by AsureQuality (a national laboratory of New Zealand).