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 2024, for purchased palm oil, we achieved  91.5% traceability to mill and 83.2% traceability to plantation.

Furthermore, all raw milk and ingredients of Meadow Fresh milk sold by Yihai Kerry Arawana in China come from New Zealand's well-defined and established raw material suppliers, and 100% traceability to farm level (the milk source belt at latitude 41-46 degrees south). The cows graze freely all year round on natural pastures and fresh grass, nourished by water from the Southern Alps, ensuring a pure and high quality milk supply that not only meets animal welfare standards, but also reduces carbon emissions and resource consumption.The New Zealand government has awarded 100% of Meadow Fresh Milk products sold by Yihai Kerry Arawana in China the "Silver Fern Mark." Among them, 30% of the milk products have obtained the Grassfed Traceability Certificate issued by New Zealand's AsureQuality National Laboratory. The Company plans to increase the proportion of grass-fed traceability-certified purchases from 30% to 39% by 2026.