Water Stress - Environmental - Sustainability - 益海嘉里金龙鱼粮油食品股份有限公司

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Water Stress

Yihai Kerry strictly complies with the relevant laws and regulations in the places where it operates and conducts water resource analysis and assessment for areas with high water resource risks to reduce the risks as much as possible. The Company also strives to protect precious water resources by monitoring water consumption using a data-management platform, improving water-utilization and water-conservation measures, and raising awareness of water conservation among our employees.

Target:In 2022, we will conduct water footprint certification for some core products.

Risk Management for Water Usage

Water resources assessment	Factories using surface water and groundwater are required to entrust a third-party professional organization to conduct water resource justification before construction./li> The factory must analyse the rationality of water withdrawal and the impact on other water users. According to the regional water resources situation, the factory must analyse the water withdrawal plan, including the rationality and reliability of the source, quantity and quality of the water planning to be withdrawn, and the impact of water withdrawal and discharge on the surrounding environment, etc. Factories should propose an impact compensation scheme and water source protection measures.
Legal water withdrawal permit	All the Company's factories that withdraw surface water and groundwater must obtain a legal water usage permit from the local government where they operate, and legally withdraw water in accordance with the approved water source type, location, method,amount and purpose. The factory must pay a groundwater resource tax in accordance with the law, and comply with the corresponding environmental responsibilities
Water balance testing	Some of the Company's factories conduct water balance tests every 3 to 5 years in strict accordance with the requirements of the local government to identify weak points in water management and dig out water-saving potentials, and formulate practical management measures and plans to improve the water management quality of the factory.
Water consumption monitoring	The established PIMS data monitoring system and Enablon data statistics platform continuously tracks and records the factory's water consumption data. The water resources management team regularly analyses and evaluates the water consumption data and makes relevant improvement suggestions to the corresponding factories

The Company encourages all its factories to carry out continuous water-conservation activities every year to improve water efficiency. At the end of 2021, 54.5% of the Group's factories have carried out water conservation action. Through water conservation methods such as recycling steam condensate, improving production processes to reduce steam use, reusing water, installing meters to assess water consumption, identifying leak points, and reducing waste, nearly 5.74 million cubic meters of water were saved in 2021. The Company's overall water consumption intensity of its factories decreased significantly by 6.16% compared to 2020.

Water Reuse

Surface water and groundwater are reused after reaching the standard through water purification facilities. To reduce wastewater discharge and conserve water resources, some of our factories reuse concentrated water. After further treatment, the external drainage from the sewage and the concentrated water from the water treatment are recycled and used as circulating cooling water and plant domestic water (washroom water, cleaning water, planting water, etc.),effectively reducing the waste of water resources.

Supply Chain Water Management – Farming Support

Although Yihai Kerry's business does not involve farming,to promote modern agriculture for the benefit of the people, the Company takes our efforts to support farmers by providing scientific cultivation and scientific irrigation techniques. Taking cereal cultivation as an example,Yihai Kerry formulated regulations such as Operating Procedures for Organic Production and Operation and Technical Procedures for Cereal Production in Yu County, and through offline training activities, helps farmers use scientific irrigation techniques and achieve reasonable water conservation.

In the future, we will continue to improve water risk management, strengthen water conservation and reuse, promote supply chain water conservation programs, and set realistic water conservation targets based on the continuous monitoring of water use.

Sustainability