As one of the earliest Chinese dairy companies to focus on sustainable development, Yili has always believed in the power of good business and has integrated sustainable development into its corporate strategy. In the context of global climate change, sustainable development not only involves the responsibility of businesses towards consumers, the environment, and society, but also reflects Yili's ongoing efforts to achieve harmonious coexistence with nature. Additionally, it represents the Yili's approach to managing ESG risks, ensuring long-term benefits for our investors.
MSCI ESG Ratings aim to measure a company's management of financially relevant ESG risks and opportunities.
CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.
FAIRR is a global network of investors that analyzes and engages with companies on environmental, social and governance issues in the food system.
To align with the Company's strategic and sustainable development needs and further enhance its core competence and sustainable capacity, Yili established a Strategy and Sustainable Development Committee at the board level, which is composed of eight directors (including two independent directors), under the charge of the Committee Chairman Mr. Pan Gang, Chairman and President of Yili. The Strategy and Sustainable Development Committee also focuses on researching and recommending sustainability strategic plans for Yili's long-term development and oversees the sustainability strategy implementation across the company such as greenhouse gas emission, water resource management and sustainable packaging, etc.
The Strategy and Sustainable Development Committee has established the Sustainable Development Management Office, which is responsible for the strategic supervision and management of Yili Group's sustainable development, cross-departmental coordination and capacity building, helping effectively implement the Company's strategy. At the implementation level, there are eight sustainability topic working groups, covering such issues as carbon neutrality, water resource management, and responsible sourcing, etc. These working groups consist of sustainability coordinators from functional departments and product divisions, and are tasked with carrying out specific tasks aligned with the strategy. The Sustainable Development Office is under Strategy and Sustainable Development Committee, which is responsible for the sustainability performance supervision and report to the Strategy and Sustainable Development Committee on a regular basis.
In 2023, Yili released the "Sustainable Development Strategic Plan (2024-2027)." The strategy outlines six strategic goals for future sustainable development, namely, "enhancing product sustainability," "improving the nutritional and health functions of products," "Addressing climate change," "reducing operational environmental impact," "creating a sustainable supply chain," and "preventing ESG risks," along with 18 specific initiatives. Going forward, Yili will implement these goals and initiatives along the strategic roadmap and make necessary adjustments if needed.
