Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Factory
• Water Resources Management
• Waste Management
• Recycling of Packaging Materials
• Sustainable Supply Chain Management
• Community Engagement
• Human Rights
• Employee Development
• Business Ethics and Anti-corruption

Environmental Achievements

• Reduced carbon dioxide emissions per 10,000 yuan of output by an unspecified amount by 2025.
• Increased renewable energy use to 43,731,262 kWh.
• Achieved 100% coverage of ISO 14001 environmental management system certification across all production bases.
• Reduced water consumption per unit in Tongliao Base MSG and refining workshops by unspecified amounts, resulting in significant water savings.
• Reduced the total weight of packaging materials by an average of 716 metric tons per year over two years, with an average of 981 metric tons of materials recycled annually.
• Achieved a closed-loop recycled utilization rate of over 93% for some water resources.

Social Achievements

• Launched the Quality Month campaign and Work Safety Month campaign to enhance employee awareness.
• Provided 1,969,451 total training hours for employees (151.31 hours per employee).
• Achieved 98.28% employee training participation rate.
• Overall employee satisfaction score of 3.5 (out of 5).
• Donated 4,320,323 yuan to public welfare.
• Established a Mommy’s Cabin for breastfeeding mothers.
• Women account for 40% of senior executives.
• Zero work-related fatalities among employees or contractors.

Governance Achievements

• Established a comprehensive anti-corruption governance structure and implemented the Anti-corruption Management Measures.
• Established an ESG Leadership Group and Sustainable Development Office to manage ESG affairs.
• Developed the Environmental, Social and Governance (ESG) Management Improvement Plan (2022-2025).
• Implemented an ESG incentive compensation mechanism linking manager KPIs to environmental protection, health and safety, resource utilization, and personnel training.

Climate Goals & Targets

Environmental Challenges

• Climate change-related risks, including policy risks (increased compliance costs due to stricter GHG emission controls), transition risks (increased investment costs for low-carbon transformation), and physical risks (extreme weather events impacting production and facilities).
• Water scarcity in operating areas (100% of water withdrawals from high-risk areas).

Mitigation Strategies

• Developed a climate change development strategy (2020-2025) with specific goals, tasks, and assessment measures.
• Implemented energy conservation and emission reduction measures, including increasing renewable energy use, improving energy efficiency, and adopting a carbon pricing mechanism.
• Developed and implemented water conservation measures, including technological process optimization and water resource recycling.
• Conducted regular climate-related risk assessments and developed corresponding management objectives and countermeasures.

Supply Chain Management

Supplier Audits: 763 suppliers assessed in 2022

Responsible Procurement

• Environmental and Labor Human Rights Sustainable Procurement Policy
• Suppliers’ Responsible Procurement Management Measures
• Supplier ESG Assessment Criteria
• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rainfall, high temperatures)
• Water shortages

Transition Risks

• Policy risks related to stricter GHG emission controls
• Increased investment costs for low-carbon transformation

Opportunities

• Development of energy-efficient technologies and processes

Reporting Standards

Frameworks Used: GRI Standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (Exposure Draft), IFRS S2 Climate-related Disclosures (Exposure Draft), TCFD

Certifications: ISO 9001, ISO 22000, ISO 14001, FAMI-QS, MUI Halal Certificate, BRC Food Safety Management System

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Vitamin B2

Awards & Recognition

• Top 200 Enterprises in China Light Industry
• Top 10 Enterprises in China Fermentation Industry
• Top 50 Enterprises in China Food Industry
• Leading Enterprise in Energy Conservation and Environmental Protection in the Chinese Biotech Fermentation Industry
• Top 100 Science & Technology Enterprises in China Light Industry

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Sustainable development
• Governance

Environmental Achievements

• Reduced alcohol consumption by 33% and detergent consumption by 50% in xanthan gum production.
• Reduced CO2 equivalent emissions by 313,683 tons through various energy efficiency improvements and technological upgrades.
• Achieved ultralow discharge standards for fume emissions at all production bases.
• Obtained ISO 14001 certification at all three production bases.
• Implemented advanced wastewater treatment technologies, significantly reducing wastewater discharge and reusing reclaimed water.

Social Achievements

• Donated approximately 471.67 million yuan to various charity projects and poverty alleviation initiatives.
• Implemented a talent development system for management trainees, hiring nearly 600 fresh graduates.
• Increased staff income, with expenses for salary and staff welfare increasing by about 170 million yuan.

Governance Achievements

• Established an anti-bribery management system compliant with ISO 37001:2016.
• Improved internal control system and risk management, with no major defects identified in the internal control audit.
• Implemented an annual salary system for officers combining position-based remuneration and performance appraisals.

Climate Goals & Targets

Environmental Challenges

• Declining product prices leading to a decrease in revenue and net profit.
• Fluctuations in corn prices impacting production costs.
• Risk of overseas market sales due to trade restrictions and sanctions.
• Risk of environmental compliance due to potential pollution accidents.
• Risk of production safety due to the use of hazardous materials and aging equipment.
• Risk of change in the industrial regulatory environment.
• Risk of core technology leakage or loss of core technical personnel.
• Risk of development and promotion of new products.
• Risk of fluctuations in exchange rates.
• Risk of change in corporate income tax policies.
• Risk of intellectual property disputes.

Mitigation Strategies

• Strengthening sales of star products like xanthan gum and minor amino acids.
• Implementing MES (Manufacturing Execution System) to refine production management and improve efficiency.
• Increasing R&D spending and technological upgrades to reduce production costs and improve product competitiveness.
• Establishing standard management models in production, purchase, and sales.
• Investing in pollution prevention and control facilities, including wastewater and waste gas treatment.
• Developing environmental emergency response plans and conducting regular drills.
• Implementing safety management measures and improving staff training.
• Strengthening cooperation with global biotech companies and institutions.
• Trading financial derivatives to reduce exchange rate risk.
• Maintaining a strong intellectual property protection system.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• First Prize of the Scientific and Technological Progress Award by the China National Light Industry Council