Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Energy Management
• Resource Usage
• Emissions Management
• Addressing Climate Change
• Food Safety
• Nutrition and health
• Consumer services
• Legal and compliant operations
• Employee compensation and benefits
• Risk control
• Business ethics
• Employee rights
• Responsible marketing
• Talent development
• Supply chain management
• Innovation and intellectual property protection
• Climate change
• Green operations
• Green packaging
• Public welfare and charity
• Occupational health and safety

Environmental Achievements

• Reduced energy costs by RMB 5.39 million compared to 2022.
• Reduced plastic material usage by approximately 122.6 tonnes and minimized adhesive tape usage by about 10,800 square meters.
• 100% of product packaging outer boxes utilized eco-friendly water-based inks and were entirely film-free.
• Weidao Plant optimized the soaking water process for konjac production lines, reducing citric acid usage by 30%.
• All plants implemented reclaimed water recycling projects.
• Self-used photovoltaic power generation reached 11,698.5 thousand kWh, reducing carbon dioxide emissions by 6,671.63 tonnes.

Social Achievements

• Launched the "Flying Dragon Program" for middle-level managers.
• Established the Group's Trade Union.
• Improved living conditions in employee dormitories, enhancing the quality of food in employee canteens, and increasing the efficiency of shuttle bus operations.
• Employee training reached a coverage rate of 100%.
• Implemented the Qualification Management System, defining career development paths.

Governance Achievements

• Enhanced business ethics management system, strictly adhering to relevant laws and regulations.
• Developed and updated systems such as the Anti-Money Laundering Internal Audit System and the Weilong Reporting Reward Management Measures.
• Joined the Trust and Integrity Enterprise Alliance.
• Maintained a record of zero security incidents since 2018.
• Successfully implemented the environmental management system across all production plants, with Ping Ping Foods plant achieving ISO 14001 certification and ISO 50001 energy management system certification.

Climate Goals & Targets

Environmental Challenges

• Stringent national laws, regulations, and policy systems related to carbon emissions.
• SEHK mandates on climate-related information disclosure.
• Production cost increase caused by low carbon technology transformation.
• Consumer preference for environmentally friendly products with higher raw material costs.
• Insufficient supply of raw materials due to climate change.
• Stakeholders' increasing concerns about corporate responsibility and negative feedback.
• Impact of extreme weather on employee commuting, supply chain transportation, and production operation.
• Impact of changes in rainfall, extreme weather fluctuations, rising average temperatures, and rising sea levels on operational locations and operating costs.

Mitigation Strategies

• Continuously monitor and update self-management practices in response to changes in external regulations.
• Advance the low-carbon transformation of production, shift towards low-emission energy sources, and consistently reduce the carbon emission intensity of the product value chain.
• Enhance the energy management system, ensure data submission and disclosure are in strict compliance with regulatory guidelines.
• Integrate climate risks into the Group's overall risk management.
• Promote green, environmentally friendly, and low-carbon product initiatives.
• Comprehensively analyze the long-term economic benefits brought by purchasing green raw materials.
• Strengthen procurement management, actively establish cooperative relationships with multiple suppliers.
• Continuously advance the production process and product R&D, enhance production efficiency and raw material utilization rate, and reduce production costs.
• Continuously enhance the disclosure related to sustainable development and climate change.
• Effectively manage public opinions through various channels.
• Integrate the reduction of environmental impact and response to climate change risks into the corporate strategy.
• Analyze typical cases of extreme weather to develop emergency plans.
• Develop a Flood Control Emergency Plan.
• Conduct proactive risk identification and assessment of chronic climate risks.
• Continuously optimize software and hardware facilities for heating, cooling, and drainage in the operating environment.

Supply Chain Management

Supplier Audits: All 938 suppliers underwent an access review.

Responsible Procurement

• Supplier Access Management Measures
• Supplier Relationship Management (SRM) system
• Supplier Quality Management Process
• Procurement Integrity Management Measures
• Integrity Agreements with suppliers
• Stringent green environmental protection standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (hurricanes, floods, extreme heat, extreme cold, drought)
• Changes in rainfall, extreme weather fluctuations, rising average temperatures, and rising sea levels

Transition Risks

• Stringent national laws, regulations, and policy systems related to carbon emissions
• SEHK mandates on climate-related information disclosure
• Production cost increase caused by low carbon technology transformation
• Insufficient supply of raw materials due to climate change
• Stakeholders' increasing concerns about corporate responsibility and negative feedback

Opportunities

• Development of energy-efficient products and processes
• Increased use of renewable energy

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong ESG Reporting Guide

Certifications: FSSC 22000, HACCP, ISO 14001 (Ping Ping Foods plant), ISO 50001 (Ping Ping Foods plant)

Sustainable Products & Innovation

• Products with reduced oil, salt, and sugar content
• Products with zero trans fatty acids, zero cyclamate, and zero preservatives

Awards & Recognition

• Stockstar Industry Influence Award of the Year
• Capital Xueqiu 2023 Annual Growth Top 100 Listed Companies
• People.cn 2023 National Consumption Fashion Leading Case Brand
• China Brand Festival Top Brand
• China 500 in 2023 Value Certificate of China's Top 500 Brands
• Golden Jade Award Weilong Unique Ingenuity Award
• China Food Safety News 2022-2023 Food Safety Exchange Case Medal
• Certificate of "National Quality and Integrity Benchmark Enterprise"
• National Product and Service Quality Integrity Brand
• National Quality Leading Brand in the Spicy Snack Food Industry
• TMTPost Annual Brand Upgrade Exploration Award
• TMTPost Consumer Brand of the Year
• CMO CLUB Goldsmith Award
• TBI Brand Innovation Award
• Lanjinger Product Innovation Award of the Year
• China Business Journal Category Expansion Award
• DoNews Lingfeng Award
• National Quality Inspection Reputation Guarantee Product
• 2023 Top Ten Quality Consumer Innovation Award
• 2023 Creator's Product Innovation Grand Award Gold Award
• TopDigital Gold Award in Live Streaming Marketing
• Weilong Low-carbon Digital Intelligent Factory ESG 2023
• Central Plains ESG Emerging Enterprise
• 2022 Henan Food Industry Outstanding Enterprise in Fulfilling Social Responsibility
• Charitable Enterprise on the 99 Public Welfare Day