Mengniu released its 2023 ESG report to set a benchmark for sustainable development in the industry
On April 28, Mengniu Group released its 2023 Sustainability Report (hereinafter referred to as the "Report"). In 2023, Mengniu firmly implemented the GREEN sustainable development strategy, integrated ESG concepts into the whole process of business decision-making and execution, and drove the green transformation of the entire industry chain. In 2023, Mengniu's MSCI ESG rating continued to climb, rising from A to AA, making it the only comprehensive dairy company in China to receive this rating, and it has been ranked as a constituent stock of the Hang Seng Corporate Sustainability Index for four consecutive years, continuing to lead the high-quality development of the industry.
Cover of the 2023 Mengniu Sustainability Report
With the in-depth development of ESG (Environmental, Social and Governance) concepts and practices in recent years, ESG has become a value engine that drives sustainable growth of enterprises. Mengniu said in the report that ESG is of great significance to the long-term and stable operation of enterprises, and Mengniu also attaches great importance to sustainable development management, has established an effective ESG governance mechanism, and implemented ESG strategies that meet its own development needs and can give full play to its own resource advantages, so as to contribute to the high-quality development of the economy and society.
Ecology gives priority to "green", and the road of "double carbon" sets a green benchmark for the industry
Green development is the background color of high-quality development, and it is particularly important for the dairy industry, which is closely related to consumers' lives and spans the three industries. According to the Food and Agriculture Organization of the United Nations, livestock accounts for about 15% of global carbon emissions. Under the guidance of the national "dual carbon" strategy, promoting the green, low-carbon and sustainable development of the dairy industry has become a consensus in the industry.
In this context, Mengniu has set a dual-carbon strategic plan of "carbon peak in 2030 and carbon neutrality in 2050", continuously strengthened its carbon emission management around production, raw milk, packaging, transportation, products and other links, and worked with upstream and downstream partners in the value chain to promote the green and low-carbon development of the value chain, and set a demonstration benchmark for the green and low-carbon transformation and development of the dairy industry.
In the production process, Mengniu integrates the concept of improving capacity utilization and exploring energy-saving opportunities into the whole production process, and reduces capacity loss by shortening process transition time, applying innovative production technology, and investing in automated and intelligent production equipment. Taking the Mengniu Ningxia plant as an example, this fully intelligent chemical factory not only achieved the world's highest human efficiency ratio of "100 people with an output value of 10 billion", but also automatically judged the matching between production and energy through the factory's smart energy system, reducing energy consumption by 43%, creating an efficient, intelligent, green and sustainable industry benchmark
Mengniu Ningxia Factory
Pastures are one of the main sources of carbon emissions, and in order to build low-carbon and green pastures, Mengniu has continued to promote carbon reduction in pastures from five aspects: energy utilization, manure treatment, herd management, feed structure, and ecological carbon sequestration, and promoted the replacement of coal-fired boilers, water and electricity saving, and the use of new energy vehicles, which has reduced carbon dioxide emissions by about 185,000 tons.
Mengniu low-carbon green pasture construction
Under the pillar of the GREEN strategy "Responsible Industrial Ecosystem", Mengniu not only adheres to the concept of green development in the whole chain, but also opens up the industrial ecosystem, focusing on the three key issues of sustainable procurement, sustainable agriculture and biodiversity conservation, and leading upstream and downstream partners to jointly create a sustainable industrial ecosystem through a number of targeted supply chain management measures, and promoting a development path that pays equal attention to economic, social and environmental benefits while jointly creating business value.
Fulfill the mission of the "national team" of the dairy industry and fully assume social responsibility
Enterprises are the most active subjects in fulfilling social responsibilities and are the new force to promote high-quality social and economic development. Mengniu has always practiced the mission of the "national team" of the dairy industry, actively responded to the national strategy, fully assumed social responsibility, promoted the development of the industrial chain, carried out public welfare and charity activities, and created greater social value with practical actions.
In terms of actively promoting rural revitalization, Mengniu has demonstrated its responsibilities and advantages as a leading dairy enterprise, sorted out and improved the four-in-one rural revitalization work system of "industrial revitalization + ecological revitalization + inclusive nutrition + party building and co-construction", and relied on the construction of the whole industrial chain of "one grass to one cup of milk", established a mechanism to connect the interests of farmers and herdsmen, help farmers and herdsmen increase their income and become rich, and at the same time provide nutritional support for underdeveloped areas.
Mongolian Milk Chain Partners Sustainable Development Conference
In 2023, Mengniu will build 33 new large-scale pastures, increase the dairy herd by 30,000 heads, and build high-quality forage planting demonstration areas and high-yield and high-quality forage model fields, directly and indirectly driving about 70,000 people to work and increase income. In order to alleviate the cash flow problems of farmers and herdsmen, Mengniu has joined hands with a number of financial institutions to launch an integrated financial assistance model, and continue to provide nearly 4 billion yuan of support funds for upstream cooperative pastures to meet the various capital needs of pastures such as cattle purchase, equipment purchase, transformation and transformation, improved breed breeding, information construction, and forage purchase, and continue to solve the cash flow problems of farmers and herdsmen.
With its outstanding actions in helping rural revitalization, Mengniu was selected as a "Classic Case of Rural Revitalization" by the Rural Revitalization Research Center of China Famous Brand in 2023, and was selected as an ESG Outstanding Contribution Case of "Xinhua Credit Jinlan Cup" by China Economic Information Service of Xinhua News Agency.
As an industry leader, Mengniu attaches great importance to students' nutrition and strengthens children's health awareness. In 2023, Mengniu will continue to promote the "Nutrition Inclusion Project", take multiple measures to promote the development of students' nutrition and health, and carry out the Nutrition Inclusion Project milk donation project in 452 schools across the country, donating 3.704 million packs of milk, covering 582,000 children and adolescents.
Over the past 20 years, Mengniu's nutrition program has benefited 25 million students in 28 provinces, autonomous regions and municipalities across the country. Mengniu also expands the extracurricular education content of teenagers through a variety of public welfare activities such as physical education, research education, and food education, cultivates teenagers' awareness of nutrition and health, and lays a good foundation for the healthy growth and all-round development of teenagers.
Mengniu Hope Project Youth Football Public Welfare
According to the report, in 2023, Mengniu Public Welfare Foundation will spend 51.2475 million yuan on public welfare, and Mengniu volunteers will participate in more than 10,000 volunteer service activities. Mengniu has always been on the front line in public welfare actions such as community filial piety and respect for the elderly, earthquake relief, and caring for special populations. With these social contributions, the image of a responsible Mengniu has been widely recognized.
Seize the opportunity of ESG construction and create long-term value
Enterprises should actively embrace ESG construction and regard it as a development opportunity to help them develop new businesses, reduce operating costs, obtain more policy support, attract and retain outstanding talents, and promote high-quality development of enterprises.
Under the guidance of the GREEN strategy, Mengniu integrates ESG concepts into the whole process of business decision-making and execution, and promotes the high-quality development of the entire industry chain. Based on the characteristics of the business and the sustainable development goals, Mengniu has incorporated sustainability KPIs into the management's annual performance contracts, including the research and development of nutritional products, the construction of green benchmark factories, the reduction of carbon emission intensity, and responsible product marketing, etc., and formulates differentiated sustainability performance appraisal weights according to the relevant responsibilities of senior executives in various sustainability matters. At the same time, the sustainable development KPI is also included in the performance appraisal of middle managers, and the sustainable development evaluation dimension is included in the group's annual excellent commendation and selection.
In order to enhance the awareness and ability of sustainable development of all employees, Mengniu integrates internal and external resources and actively carries out various ESG theme co-creation, awareness publicity and training activities. In 2023, the second "Mengniu Sustainable Co-creation of Foreign Exchange" will be held to help all departments broaden their thinking, build consensus on sustainable development, and help implement Mengniu's sustainable development strategy through collaboration and innovative exploration
Mengniu's 2nd "Mengniu Sustainable Co-creation of Foreign Exchange"
In terms of employee training and career development, Mengniu focuses on the core value of "let cattle people bloom", makes it clear that managers are the first responsible persons for talent training, creates an internal counseling culture, and helps cattle people continue to bloom and grow under the guidance of talent concepts, continue to build a comprehensive talent training system, and broaden new paths for employees' career development. At the same time, Mengniu actively cooperates with universities and industry partners to create a variety of learning platforms to meet the diverse learning needs of employees, help them improve their career development and professional skills, and enhance the talent pool in the industry.
Mengniu attaches great importance to talent training
In the future, Mengniu will continue to promote the GREEN sustainable development strategy, actively cultivate new quality productivity for sustainable development, synergistically drive the dairy industry chain to create greater value, and comprehensively lead the high-quality development of China's dairy industry.
