Climate Change Data

China Modern Dairy Holdings Ltd.

Climate Impact & Sustainability Data (2016)

Reporting Period: 2016

Environmental Metrics

Total Energy Consumption:54,098.4 MWh/year (23% of total electricity consumption)
Waste Generated:1.67 million tons of biogas residue/year (used as bedding)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 100% utilization of biogas, biogas fertilizer, and biogas residue from cow dung.
  • Reduced fertilizer consumption by 20-25kg per mu through biogas fertilizer.

Social Achievements

  • Named “Anhui Demonstration Unit for Labor Security” by the Provincial Department of Human Resources and Social Security.
  • Achieved 100% in labor contract rate and insurance coverage rate.
  • Provided employment for 680 local people, including 4 disabled people at Saibei Farm.
  • Donated 50,000 boxes of pure milk to flood-affected people.

Governance Achievements

  • Established a sound safety management system, resulting in 100% occupational health examination coverage rate.
  • Dealt with and investigated 14 compliance incidents, a 50% decrease from the previous year.
  • Held 15 trainings on professional ethics for over 280 management employees.

Climate Goals & Targets

Environmental Challenges

  • Pressure from domestic and international competition in the dairy industry.
  • Phenomena of “killing cows and pouring milk” due to cheaper imported milk powder affecting raw milk purchase prices.
Mitigation Strategies
  • Adhered to using home-grown raw milk and said “No” to imported milk powder.
  • Developed an innovative integrated production mode of forage planting, cow breeding, and milk processing to ensure high-quality raw milk supply and control costs.

Supply Chain Management

Supplier Audits: 477 suppliers, including 18 foreign suppliers

Responsible Procurement
  • Strict quality control over forage materials, packaging, and logistics.
  • Contracts with local feed companies to boost local economy and ensure feed quality.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong’s Environmental, Social and Governance Reporting Guide, Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (G4) and its supplement for food processing industry

Sustainable Products & Innovation

  • Pure milk products

Awards & Recognition

  • Monde Selection Gold Medal (three consecutive years)
  • Monde Selection International High Quality Trophy
  • Outstanding innovation team prize and individual prize for agricultural science and technology achievements by the Ministry of Agriculture