Tackling Climate Change - Environmental - Sustainability - 益海嘉里金龙鱼食品集团股份有限公司

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Tackling Climate Change

Yihai Kerry continues to pay attention to international and national developments related to climate change and actively explores new models of low-carbon development to address climate change. We take corresponding countermeasures through the assessment of climate change risks.

Target:

We aim to achieve net-zero GHG emissions by 2050, study and develop a net-zero emissions roadmap and timeline consistent with our own development plans starting in 2023
By 2030, the total PV power installed on the roof of the Company's factories will reach 200 MWp
We aim to raise the share of clean electricity no less than 20% by 2024

Enhancing Risk Response Capabilities
In 2023, to improve the capacity to address climate change, the Company has integrated climate change risks into overall risk assessment and management system. We have established a working mechanism, led by the Board of Directors, with the Sustainability Committee in charge and other relevant departments collaborating. Additionally, we follow the disclosure methodology and recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to conduct annual assessments of climate change risks, including physical and transitional risks, as well as opportunities. We are committed to developing comprehensive strategies for climate risk prevention and fully supporting global climate action.

Constructing a Low-Carbon Value Chain
Yihai Kerry Arawana is dedicated to constructing a green and low-carbon value chain. The Company assess the environmental impact of the products from a life cycle perspective, and work towards achieving national carbon peak and carbon neutrality goals to mitigate the impact of climate change.

Carbon Neutrality Factory

In 2022, Yihai Kerry successfully built the first "carbon neutrality factory" in the domestic cereal and oil industry, playing an essential role as a model to promote China's cereal and oil industry to achieve the goal of "carbon peaking and carbon neutrality"

Product Carbon Footprint
Yihai Kerry implements energy saving and emission reduction efforts along the value chain by assessing greenhouse gas emissions in the supply chain. We continue to carry out carbon footprint verification of some of our core products and have obtained carbon footprint certificates for the relevant products.

2021	2022	2023
Carbon Footprint Report of Grease Products Edible Oil Carbon Footprint Verification Report Carbon Footprint Report of Edible Vegetable Oils and Grease Products Carbon Footprint Certificate of Xiangmanyuan Grade 1 SoybeanOil Carbon Footprint Certificate of Fatty Alcohol Carbon Footprint Certificate of Stearic Acid	Carbon Footprint Certificate of Rice Bran Oil Carbon Footprint Certificate of Sebacic Acid Carbon Footprint Certificate of Mixed Acids Carbon Footprint Certificate of Stearic Acid Carbon Footprint Certificate of Fatty Alcohol FAL-0860 Carbon Footprint Certificate of Fatty Alcohol FAL-1214 Carbon Footprint Certificate of Sec-Octanol Carbon Footprint Certificate of Palmitic Acid	Precipitated Silica Activated Carbon Epichlorohydrin (ECH) Refined Glycerin High-purity Sodium Hydroxide Sania Organic Edible Vegetable Blended Oil

GHG emissions reduction

We uphold the adoption of clean energy, promote resource recycling, and carry out energy conservation and emissions-reduction measures.

By the end of 2023, Yihai Kerry will reduce GHG emissions by a total of 1,016,495 tons of CO2e through the use of biomass energy (rice husks), biogas recycling, procurement of solar power, and energy-saving and emission reduction projects.

**Initiatives to reduce GHG emissions in production**
Solar energy utilization	Biomass energy utilization (rice husks)	Methane recycling
Yihai Kerry launched the construction of solarphotovoltaic power -generation facilities. By providing sites such as roofs of subsidiary factory buildings to professional institutions in order to lay solar panels and produce clean electricity, and adopting the mode of "Self-generation for self-use, surplus for the Grid", the proportion of renewable clean energy used by factories is increased and CO2 emission is reduced.	To reduce fossil energy consumption,reduce GHG emissions, and ensure stable electricity supply, and steam and heat required for production, Yihai Kerry is promoting the use of rice husks. Rice husks are used as fuel to produce the required steam,electricity and heat needed in production.	By establishing biogas recycling facilities, Yihai Kerry has reduced GHG emissions caused by biogas generated in the factory's sewage treatment process. The collected biogas is fed into the boiler to produce steam and reduce the consumption of coal or natural gas in the boiler, while the excess biogas is burned through a flare to ensure minimal leakage of methane.

In addition, the Company promotes the green office concept by encouraging employees to use online conferencing to reduce GHG emissions generated by travel. Also, by using shared disks, servers and printing networks in office areas, we reduce the use of paper, thereby reducing GHG emissions in the office.

Internal storage and transportation

Yihai Kerry has adopted new models, new energy and new technologies to reduce direct GHG emissions in internal storage and logistics.

Upstream and downstream transport logistics

The Company cooperates with carriers to achieve the refined management of fuel in transportation through informationization and standardization. Besides, by optimizing routes and integrating resources to shorten the supply chain, thus effectively shortening the transportation distance and reducing waste, so that we reduce Scope 3 GHG emissions.

Upstream and downstream supply chain emissions-reduction action
In the upstream and downstream energy saving and emissions-reduction process, the Company provides assistance and cooperation for farmers and suppliers to reduce GHG emissions generated from the upstream supply chain's raw material cultivation, processing and production. We also reduce GHG emissions from the use of end product through product design and product packaging improvement action.

Energy conservation and emissions- reduction action in raw material cultivation	Principles of sustainable procurement: Yihai Kerry adheres to the principle of "No Deforestation, No Peat and No Exploitation", and requires the Company's bulk raw material farmers to adopt sustainable practices, including not cutting down forests with high conservation value or high carbon reserves, no new developments on peatland, and no burning for preparation or land clearing. The Company promotes the procurement of sustainable raw materials to reduce forest damage and GHG emissions caused by the cultivation of raw materials. Support for farmers: Yihai Kerry conducts publicity and training on technical standards and procedures, including the rational use or replacement of chemical fertilizers, by carrying out support action for small and medium-sized farmers, and using contract farming and other methods to reduce GHG emissions from cultivation.
Energy conservation and emissions- reduction action in supplier production and processing	Supplier assistance project: Yihai Kerry provides assistance for non-trade suppliers through end-to-end supply chain projects, and uses lean production experience to support suppliers to reduce energy and emissions in procurement, manufacturing, operation, etc. Energy conservation and emissions-reduction projects for raw material processing suppliers: Yihai Kerry has always encouraged all its raw material processors to adopt sustainable processing techniques to reduce GHG emissions during raw material processing.
Energy conservation and emissions-reduction action in Product use	Product packaging optimization project: For the end products, Yihai Kerry reduces GHG emissions caused by product packaging through product design optimization, such as selling bulk products and carrying out product packaging recycling. Support for customers to conserve energy and reduce emissions: Yihai Kerry supports its customers to carry out corresponding GHG emissions investigations, and works with them to achieve green development throughout the industrial chain.

Sustainability