Climate Change Data

Environmental Metrics

ESG Focus Areas

• Nutrition
• Taste
• Sustainability
• Environmental Stewardship
• Ethical Business Practices
• Community Well-being

Environmental Achievements

• Reduced water used to manufacture each unit of product by 17.65% vs 2013/14
• Reduced electricity usage per unit by 15.77% vs 2013/14
• Reduced fuel usage per unit by 16.90% vs 2013/14
• 91% of fresh-keeping laminated paper packs had FSC certification labels (surpassing 2018/19 goal)
• Maintained okara recycling rate at 97.8% (slightly below the 99% target due to decreased demand)

Social Achievements

• Launched a pilot clean PET bottle recycling program in six primary schools
• Joined the Single-Use Beverage Packaging Working Group in Hong Kong
• Expanded Vitasoy University Grant to Southern China
• Organized the Vitasoy Nutrition Exploration Journey school nutrition education program
• Sponsored the Young Scholar Competition at the WUN summit
• Maintained a low Lost Time Injury Rate of 1.19

Governance Achievements

• Established a Sustainability Committee
• Integrated sustainability risks into enterprise risk management
• Introduced the Group Business Ethics Policy and Code of Business Conduct for Suppliers and Customers
• Launched an e-learning platform on business ethics

Climate Goals & Targets

Environmental Challenges

• Climate change impacting supply of food and natural resources
• Decreasing demand for animal and fish feeds impacting okara recycling
• Health-related regulations
• Shortages in resources
• Intense competition for talent
• Changing labor dynamics

Mitigation Strategies

• Carbon footprint assessment to understand GHG emissions
• Improved water and energy efficiency
• Enhanced waste management
• Development of an Environmental Policy
• Principles of Supplier Conduct
• Responsible Procurement Policy (in development)
• Sustainable farming practice guidelines (in development)
• Integration of ESG risks into enterprise risk management

Supply Chain Management

Supplier Audits: Field audits of contract farmers in Mainland China and Australia

Responsible Procurement

• Principles of Supplier Conduct
• Responsible Procurement Policy (in development)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: HACCP, GMP, ISO 22000, ISO 9001, FSC

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 12: Responsible Consumption and Production

Plant-based products, nutrition education, sustainable operations

Awards & Recognition

• Best CI Gold Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Steady improvement in ESG ratings
• Entered the Hang Seng Corporate Sustainability Index
• Became the only company in Hong Kong to enter the Top Global 100 Sustainable Companies index of Corporate Knights

Social Achievements

• Grew market share in Mainland China and Hong Kong
• Expanded business in other geographical regions
• Completed infrastructure projects to support future growth
• Achieved a major milestone in establishing and starting local manufacturing in the Philippines

Governance Achievements

• Set up a Board-level ESG Committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Ongoing social unrest in Hong Kong
• Prolonged drought in Australia
• Continued strain on US-China relations

Mitigation Strategies

• Focus on operational efficiencies
• Protection of associates and assets
• Stringent cost management
• Cautious pacing of investments

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Bushfires

Awards & Recognition

• 2019 Best Corporate Governance Awards: Sustainability and Social Responsibility Reporting Awards
• 2020 Corporate Knights Global 100
• “10 years Plus Caring Company” Logo
• “5 years Plus Consumer Caring” Logo
• “Diamond Enterprise Winner“ in the “Quality Food Traceability Scheme 2019”
• “Manpower Developer” in the “ERB Manpower Developer Award Scheme”
• “Caring Company” Logo
• One of the “Top Graduate Employers”
• “Excellent Quality Award 2019”
• Mawards Golden Awards
• Best Partnership Awards
• “Outstanding Water-saving Enterprise and Energy-saving Enterprise in China Beverage industry 2019”
• “Generous Donation Award 2018” and “Community Caring Award”
• “Shenzhen Good Corporate Credibility in Environmental Protection 2018”
• “Caring Enterprise 2019”
• National excellent enterprise with foreign investment 2018
• Economic Quality Development Enterprise –“Economic Contribution Award”2019
• “Harmonious Enterprise of Xinzhou District”
• “Outstanding Foreign-invested Enterprises in Wuhan, 2018-2019”

Environmental Metrics

ESG Focus Areas

• Climate change
• Water stewardship
• Waste management
• Sustainable packaging
• Product nutrition
• Responsible sourcing
• Fair labor practices
• Workplace diversity
• Community engagement
• Business ethics
• Health and safety

Environmental Achievements

• Reduced energy used to manufacture each unit of product by 13.8% compared to the 2013/14 base year.
• Reduced water used to manufacture each unit of product by 20.7% compared to the 2013/14 base year.
• Achieved a 79.2% reduction in manufacturing waste sent to landfill.
• 100% of carton packs were made from FSC-certified sustainable sources.
• 97% glass bottle recycling rate.

Social Achievements

• Launched a multi-year school nutrition and education program in Mainland China.
• Partnered with St. James Settlement to promote sustainable lifestyles among underprivileged students.
• Conducted various nutrition education programs and promoted plant-based diets.
• Decreased lost-time injury rate to 0.67.

Governance Achievements

• Established a Board-level ESG Committee.
• Integrated climate risks into the Enterprise Risk Management framework.
• Enforced the Enterprise Integrity Risk Management Framework (EIRM) Policy.
• Launched the Vitasoy Global Integrity Portal.

Climate Goals & Targets

Environmental Challenges

• Fluctuation in market demand leading to a reduction in production volume while maintaining similar baseload energy demand.
• Baseload need in water use for purification despite reduced production.
• Scope 3 emissions accounted for 79.7% of overall carbon footprint.

Mitigation Strategies

• Investing in energy-efficient systems (lighting, refrigeration, heat recovery) to save 15.2 GWh annually.
• Upgrading facilities for cooling water recycling and water consumption optimization.
• Exploring alternative packaging solutions (reusable boxes) and improving waste sorting.
• Working with suppliers to reduce emissions throughout the value chain.

Supply Chain Management

Responsible Procurement

• Supplier Responsibility Principles (SRP)
• Sustainable Farming Guidelines (SFG)
• Supplier Self-Assessment Questionnaire (SAQ)
• Supplier Performance Rating System

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Tropical cyclones
• Drought

Transition Risks

• Emissions restrictions
• Carbon pricing
• Changes in consumer demand

Opportunities

• Increased consumer demand for plant-based products

Reporting Standards

Frameworks Used: GRI Standards 2021, HKEX ESG Guide

Certifications: FSSC 22000, ISO 22000, ISO 9001, FSC

Third-party Assurance: Hong Kong Quality Assurance Agency

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Vitasoy's sustainability framework and initiatives contribute to these goals through product development, sustainable practices, community engagement, and climate action.

Sustainable Products & Innovation

• Vitasoy VitaOat Oat Milk
• Vitasoy PLANT+ Almond Milk, Soy Milk and Oat Milk
• Vitasoy Oat Milky
• Vitasoy+ Soy Milk & Oat Milk
• Vitasoy No Added Sugar Soya Bean Milk
• Protein+ Plant Milk
• Vita No Sugar Tea range
• Calci-Plus High Calcium Plant milk range
• Vitasoy Soya Milk range (Philippines)
• Almond Milky and Coconut Milky (Australia)
• VITA Gor Yin Hai Tea range (Hong Kong)
• Vitasoy flavoured variants (Mainland China)

Environmental Metrics

ESG Focus Areas

• Climate change
• Nutrition accessibility and affordability
• Food security (food loss and waste)
• Biodiversity
• Sustainable farming and raw material management
• Sustainable packaging/packaging waste
• Water stewardship/efficiency
• Ethical sourcing
• Product quality/safety
• Product nutrition/health
• Occupational health and safety
• Corporate governance
• Talent attraction/retention/development
• Fair labour practices
• Workplace diversity/inclusion/equal opportunity
• Community engagement
• Information security and data privacy
• Responsible consumer communication/education
• Business ethics

Environmental Achievements

• Reduced absolute greenhouse emissions by 11% compared to the previous year.
• Improved energy efficiency by 14.5% from the FY2013/14 base year.
• Reduced water intensity by 22.8% from the FY2013/14 baseline.
• Improved okara recycling rate to 98%.
• Diverted 76.3% of manufacturing waste from landfill.
• Increased the replacement of Virgin PET with Recycled PET to 34%.

Social Achievements

• Launched the “Hear Your Voice” programme in Mainland China for direct dialogues between high-performing talents and senior executives.
• Launched a one-year group mentoring programme for top talents.
• Implemented a digitalised performance feedback system.
• Vitasoy Community Care Project in Mainland China engaged more than 6,000 students.
• Pledged AUD 1.25 million (HKD 6.5 million) over five years to the Mulloon Institute in Australia for regenerative agriculture.

Governance Achievements

• Vitasoy International Singapore Pte. Ltd. achieved B Corp™ Certification.
• Conducted a double materiality assessment engaging over 750 stakeholders.
• Zero grievances regarding discrimination were lodged.

Climate Goals & Targets

Environmental Challenges

• Climate risks (water scarcity, extreme weather events, changes in agricultural patterns)
• Global unemployment rates
• Biodiversity loss
• Marine pollution and plastic waste
• Water stress
• Supply chain stability disruptions
• Food loss and waste

Mitigation Strategies

• Developed a group-wide emissions reduction roadmap aligned with the Paris Agreement.
• Expanded the use of renewable energy.
• Improved packaging design to be lighter and more efficient.
• Reduced sugar content in product portfolio.
• Implemented policies for fair wages, safe working conditions, and career development.
• Worked with suppliers to promote sustainable farming practices.
• Minimised waste from operations and mitigated pollution risks.
• Implemented robust inventory management systems and improved product packaging and storage.

Supply Chain Management

Supplier Audits: Annual audit on Sustainable Farming Guidelines with soybean and chrysanthemum contract farms; quarterly environmental risk screening of direct suppliers in Mainland China.

Responsible Procurement

• Supplier Responsibility Principles
• Sustainable Farming Guidelines
• Code of Business Conduct for Suppliers and Customers
• Integrity Commitment Declaration

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Changes in weather patterns
• Extreme weather events
• Tropical cyclones
• Drought

Transition Risks

• Emissions regulations
• Carbon pricing
• Shifting consumer preferences

Opportunities

• Increased consumer demand for plant-based diets
• Cost savings from renewable energy investments

Reporting Standards

Frameworks Used: GRI Universal Standards, HKEX ESG Guide

Certifications: B Corp™ (Vitasoy International Singapore Pte. Ltd.), FSSC 22000, ISO 22000, ISO 9001

Third-party Assurance: Hong Kong Quality Assurance Agency

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Initiatives aligned with SDGs are described throughout the report.

Sustainable Products & Innovation

• Plant-based yoghurts
• High Protein Soy milk
• VitaOat Oat Milk
• Plus Milky series
• San Sui tofu
• Braised Tau Kwa
• Vita No Sugar Tea
• Vita Fresh Tea

Awards & Recognition

• Featured in Corporate Knights' Global 100 Most Sustainable Corporations for the fourth consecutive year.
• A grade in the MSCI ESG ratings

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable packaging
• Sustainable farming
• Ethical sourcing
• Product nutrition and health
• Community engagement
• Workforce wellbeing
• Biodiversity

Environmental Achievements

• Improved energy efficiency by 12.0% from the FY2013/14 base year, achieving 0.35 kWh of energy use per kg of product manufactured.
• Improved water intensity by 23.9% from the FY2013/14 baseline, consuming an average of 3.86 liters of water to manufacture each kg of product.
• Diverted >94.7% of solid manufacturing waste from landfills in FY2023/24; 100% diversion rates achieved at Mainland China, Singapore, and Philippines sites.
• Maintained okara recycling rate at 99%.

Social Achievements

• Launched a multi-year school nutrition and education program in Mainland China, reaching around 6,500 rural children.
• Implemented various initiatives to foster a sense of greater belonging based on a 2023 employee engagement survey.
• Reduced lost-time injury rate to 0.61, representing a 50% reduction compared to the FY2015/16 baseline.

Governance Achievements

• Published the first Modern Slavery Act Statement for Vitasoy Australia.
• Upgraded the GRC System to engage employees more effectively in risk management.
• No grievances reported or under investigation during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (e.g., drought, extreme heat).
• Difficulty in accurately accounting for Scope 3 emissions.
• Limited availability of recycled materials in many markets.
• Technical challenges in switching to post-consumer recycled materials.

Mitigation Strategies

• Engaged with top suppliers to improve data collection for emissions inventory.
• Developed templates to assist suppliers in calculating emissions.
• Exploring opportunities to utilize plastics made from post-consumer recycled content.
• Implementing robust procurement, inventory management, and quality control systems.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Responsibility Principles (SRP)
• Group Responsible Procurement Policy
• Sustainable Farming Guidelines (SFG)
• Group Zero Deforestation Policy
• Non-GM Policy

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather patterns (extreme heat, drought, tropical cyclones)
• Heat stress on workforce
• Disruption to supply chain and distribution

Transition Risks

• Emissions regulations and carbon pricing
• Shifting consumer preferences
• Increasing insurance premiums

Opportunities

• Shifting consumer demand towards plant-based diets
• Technological advances in clean energy and transport
• Growing investor demand for green finance

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations, TNFD Recommendations, HKEX ESG Guide

Certifications: ISO 14001, ISO 45001, FSSC 22000, ISO 22000, ISO 9001

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Vitasoy's initiatives contribute to these goals through sustainable product development, responsible sourcing, waste reduction, water efficiency, employee wellbeing, and community engagement.

Sustainable Products & Innovation

• New plant-based products (oat yogurt, barista milk, etc.)
• Products with reduced sugar and saturated fat

Awards & Recognition

• National Green Factory (Dongguan and Wuhan factories)
• LEED Gold certification (Wuhan and Dongguan factories)
• Employer Brand Transformation Award (JobsDB Hong Kong HR Awards)