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Tackling Climate Change

According to the Environmental Policy, Yihai Kerry strictly complies with relevant laws and regulations of the place of operations, continuously reduces greenhouse gas emissions by constantly improving management level, intensifying R&D and innovation, reducing fossil fuel consumptions, increasing use of renewable and clean energy such as solar energy and rice husk biomass energy, increasing biogas recycling and utilization, and optimizing logistics and transportation process, and continuously monitoring emissions data through the data management platform to always respond to climate change.

 

Product Carbon Footprint

Factories under Yihai Kerry actively conduct carbon footprint verification and obtained various product carbon footprint certificates and relevant reports:

--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 Soybean Oil

--Carbon Footprint Certificate of Fatty Alcohol

--Carbon Footprint Certificate of Stearic Acid

 

Production

Solar Energy Utilization

Factories under Yihai Kerry have carried out large-scale construction of solar photovoltaic power generation facilities. By laying solar panels on roofs of factories to 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.

 

Data Statistics

By December 2021, Yihai Kerry has built 29 solar PV power generation facilities (including those under installation) with a total installed power of 63.86 MWp; and another 13 solar PV facilities are under approval, with a total designed installed power of 38.38 MWp.

 

From January to October 2021, solar PV power generation facilities produced a total of 9,293.6 MW·h of green electricity and reduced CO2 emissions by 7,193 tons.

Future Goals

Yihai Kerry aim to achieve a total installed power of 200 MWp of solar PV power generation facilities in factories by 2030.

 

Biomass Energy Utilization (rice husk)

In order to reduce coal consumption and CO2 emissions, and ensure the supply of electricity and steam required for production, Yihai Kerry is promoting the construction of rice husk boilers. Such boilers use rice husks instead of coal to produce steam and electricity for production. Rice husk is not only a waste by-product of rice production, but also a renewable biomass energy source. During the combustion process, rice husk only releases the CO2 absorbed during the growth process, without increasing the amount of CO2 in the air. Therefore, the replacement of coal with rice husk can not only reduce energy consumption, but also reduce CO2 emissions, marking it an effective measure to help achieve the goals of Peak Carbon Emissions and Carbon Neutrality.

 

By November 2021, Yihai Kerry had built 22 rice husk boilers in operation, 1 under construction and 4 planned for construction.

 

From January to November 2021, a total of 282,033 tons (3,150 kcal/kg) of rice husk were used to replace 126,915 tons (7,000 kcal/kg) of coal and reduced 351,935 tons of CO2 emissions.

 

Methane Recycling

Yihai Kerry is committed to establishing biogas collection and processing facilities to continuously reduce CO2 emissions from biogas produced in the sewage treatment process of factories.

 

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 2020, a total of 9.42 million cubic meters of biogas was collected and treated, resulting in CO2 emissions reduction by 179,000 tons; from January to October, 2021, a total of 7.74 million cubic meters of biogas was collected and treated, reducing CO2 emissions by 142,000 tons (Biogas density at 1.221 kg/Nm3, methane content at 60%, methane CO2 equivalent at 25).

 

Logistics and Transportation

Through the construction of integrated multi-operation industrial park, Yihai Kerry has created the shortest supply chain, consolidated the inventory of various product lines and distributors, realized the integration of internal and external business orders, and effectively reduced carbon emissions in warehousing, transportation, distribution and other processes:

--Fusion of centralized warehousing and co-distribution: improving inventory turnover and removing intermediate processes througj inventory intensification and sharing across all channels.

--Lift direct transport: realizing direct warehousing of products by lift in the multi-story physical link production workshop to minimize the short distance transport in the depot or forklift operations across warehouses.

--Sorting strategy: realizing intelligent consolidation strategy with system algorithm, such as consolidating sorting tasks by route, delivery address and truck.

 

In terms of distribution centers and warehousing, Yihai Kerry positively reduces carbon emissions through the applications of new energy equipment and devices, including:

--Diesel forklift to electric forklift: vigorously promoting the application of electric forklift, reducing the proportion of diesel forklift in the warehouse, and effectively reducing diesel consumption.

--3D storage/AGV warehouse applications: minimizing the use of forklift to reduce energy consumption.

--Lighting equipment replacement: replacing lighting equipment in the warehouse with energy-saving lamps to reduce energy consumption.

--Raw grain belt conveyor transmission promotion: directly sending raw grain shipped to the wharf to the silo by raw grain belt conveyor instead of truck transportation to reduce truck use and energy consumption.

--Electric exhaust fan to unpowered exhaust fan: realizing the warehouse ventilation equipment power transformation by using wind energy to replace electric energy and ensuring the warehouse ventilation standards.

--Electric plane rotary screen to unpowered floor screen: realizing 100% energy saving by technological transformation to use unpowered floor screen instead of electric plane rotary screen.

 

In addition, through cooperation with transportation companies to carry out carbon reduction projects, Yihai Kerry effectively achieve greenhouse gas emission reduction. For example:

--Promoting the use of new energy vehicles for road transport by allocating about 500 LNG vehicles and 30 electric vehicles for urban distribution.

--Promoting the use of PV power generation instead of traditional generators for shipping to meet the electricity needs of monitoring equipment, AIS system, VHF radio telephone, etc., when ships are berthed. Up to now, sixteen ships have been transformed to use PV power generation, saving 43.2 tons of fuel oil per year; Yihai Kerry also implemented the shaft belt transformation project by using the main engine to drive the ship generator to make full use of the surplus power of the main engine. So far, 23 ships have been transformed, achieving 142 tons of fuel oil savings per year.