Modern Dairy Water Management Operational Structure

Position of Individual or Committee	Responsibilities for Water-related Issues
Board Chair	The chairman of the board leads the board of directors and sets the strategic direction of the group. The chairman of the board is responsible for overseeing water-related issues, including water use, water risk management, water quality and water resource protection. The chairman of the board ensures that water-related factors are considered in the corporate priorities set by the board. As the ultimate responsible body for water projects, the chairman of the board of Modern Dairy has approved the “Five-Year Strategic Plan” that includes water resource development, policies, and corresponding measures, continuously monitors water-related risks and opportunities, and regularly adjusts water-related strategies. The chairman of the board also receives reports from the sustainability committee on the company’s water performance and progress.
Board of Directors	The board of directors attaches great importance to the work related to environment, social and governance (ESG), and is responsible for the relevant strategies and reports, including formulating the company’s sustainability strategy, assessing environmental (including water use, water risk management, water quality and water resource protection), social and governance risks, to ensure that the company has established an effective risk management and internal control system. It makes the final assessment and judgment on the importance of ESG issues such as climate change, water use, biodiversity, etc., and regularly reviews the company’s ESG performance (including water use, water risk management, water quality and water resource protection results) and approves the disclosure in the company’s ESG report.
Chief Executive Officer (CEO)	The CEO is an executive director member of the board. This makes the CEO the link between the board and the senior executive team. The CEO is responsible for integrating climate change, water management and other natural resource management, biodiversity conservation and other ESG-related issues into the strategy, monitoring ESG performance and climate-related progress, and leading the executive team to manage the delivery and execution of the sustainability strategy. The topics discussed in 2022 include climate change, water use-related risks and opportunities and their potential impact on the business, dual-carbon strategy, greenhouse gas emission reduction pathways and projects, water risk analysis, etc.
Board-level committee	The sustainability committee is a board-level committee composed of executive directors and independent directors. The committee is responsible for overseeing sustainability and corporate responsibility matters, including water-related issues, such as water use, water risk management, water quality and water resource protection. At the same time, the committee is also responsible for formulating the “Water Management Strategy”, policies and corresponding measures, continuously identifying and monitoring water-related risks and opportunities, and regularly supervising water-related work. The committee also reports to the chairman of the board on the company’s water performance and progress.