On February 6, 2024, the Global Environmental Information Research Center (CDP), a global authoritative carbon emission rating agency, announced the latest rating results of global enterprises. Modern Dairy achieved management level in three areas: climate change, water security and forest risk, demonstrating the responsibility and commitment of a global leader in the dairy farming industry.

CDP is a non-profit organization based in London, founded in 2000, dedicated to promoting the reduction of greenhouse gas emissions, protecting water and forest resources. CDP has partnered with more than 680 institutional investors with total assets of 130 trillion US dollars and more than 280 purchasing enterprises, to encourage enterprises to disclose and manage their environmental impact through the power of investors and buyers. In 2022, more than 18,000 enterprises, accounting for more than half of the global market value, and more than 1,100 cities, states and regions reported their environmental data through the CDP platform.

Modern Dairy, as a global leader in the dairy industry, actively responds to the expectations of stakeholders and investors, and continuously improves its own environmental management level and transparency. In the latest rating results of CDP, Modern Dairy’s climate change achieved a “B” rating, up from the “B-” of the first evaluation last year. The first evaluation of water security achieved a “B” rating, and the first evaluation of forest risk achieved a “B” (cattle products) and “B-” (soy) rating. These ratings are higher than the global and industry average, reflecting Modern Dairy’s leading position and advantages in coping with climate change, protecting water resources and forest resources.

Climate Change

Modern Dairy builds a green circular industrial chain of “feed planting-dairy farming-manure treatment-organic waste soil fertilization (biogas power generation)-feed planting”, realizing biogas energy comprehensive utilization power generation (electricity, steam, and heating), solid manure recycling and organic fertilizer returning to the field, thus reducing carbon emissions. Modern Dairy sets specific carbon emission reduction targets and measures, and plans to reduce carbon emission intensity by 7%, 15% and 20% respectively in 2025, 2030 and 2035. In 2022, Modern Dairy has completed 16.67% of the first stage carbon emission target.

Water security

Modern Dairy uses the WRI water risk map assessment model and tools to screen and plan the farm operating in high-risk water locations and formulate water management goals and measures. In 2022, the irrigation water for grass planting saved 13% compared with the same region.

Forest

Modern Dairy imported more than 8,000 dairy cows in 2022, all from deforestation-free areas, and other cattle were self-bred. In November 2023, Modern Dairy signed a memorandum of cooperation with COFCO International, and the two sides reached a soybean trade intention order of more than 200 million yuan, which was also the first “zero-deforestation” soybean order in China’s dairy industry.

Modern Dairy said that it will continue to uphold the mission of “raising healthy cows and safeguarding every drop of milk”, driven by technological innovation, oriented by environmental responsibility, and aiming at sustainable development, to contribute to the green transformation and low-carbon development of the global dairy industry.