On November 4, 2024, S&P Global CSA released the 2024 Corporate Sustainability Assessment results for Modern Dairy (HK.1117). Modern Dairy achieved a CSA score of 56 (ESG score of 57), representing a 30% improvement compared to the previous year. This places Modern Dairy in the top 8% of participating companies within its industry that have completed the 2024 assessment. The company demonstrated significant improvement across all three ESG dimensions – Environmental (E), Social (S), and Governance (G) – with each area increasing by over 10 points. This achievement underscores Modern Dairy's outstanding ESG performance and reinforces its commitment to sustainable, high-quality development as a leading Chinese dairy farming enterprise. Modern Dairy's progress is attributed to significant improvements and innovations across the following areas:

Governance: Modern Dairy strengthened its business ethics practices by enhancing its Code of Ethics, clarifying management responsibilities, accountability mechanisms, and reporting relationships. Furthermore, the company reinforced its supply chain management by refining its supplier management processes, providing stronger support for suppliers' ESG management efforts, and enhancing the sustainability of its supply chain.

Environment: Modern Dairy actively engaged in energy, water resource, and biodiversity management. In energy management, the company established ambitious energy-saving targets, implemented energy management plans, and further increased the use of clean energy, with renewable energy usage increasing by over 5% compared to the previous year. The company also conducted an environmental management system audit, further enhancing its environmental management capabilities. In water resource management, Modern Dairy improved its water stress analysis and data collection, aiming to reduce water consumption and increase water recycling rates. The company also provided detailed disclosure on water management practices in water-stressed regions. Additionally, Modern Dairy released its Forest Conservation Policy, committing to zero deforestation by 2030 and adopting a "utilize and restore" strategy to promote biodiversity conservation.

Social: Modern Dairy prioritized human rights protection and employee health and safety, strengthening its efforts to protect human rights within its supply chain. The company further improved its occupational health and safety management system and capabilities, conducting occupational health and safety assessments and establishing procedures for investigating work-related injuries, illnesses, and accidents. In nutrition management, Modern Dairy referenced leading industry standards to develop product health and nutrition plans, demonstrating a continued focus on consumer well-being.