Modern Dairy Carbon Emission Target

Carbon emission per kilogram of FPCM in 2021 (base year): 0.9 KgCO₂e/kg FRCM

Taking 2021 as the base year, by the end of 2025, the Group’s carbon emission per kilogram of FPCM will be reduced by 7%, 0.85 KgCO₂e/kg FRCM;
Taking 2021 as the base year, by the end of 2030, the Group’s carbon emission per kilogram of FPCM will be reduced by 15%, 0.77 KgCO₂e/kg FRCM;
Taking 2021 as the base year, by the end of 2035, the Group’s carbon emission per kilogram of FPCM will be reduced by 20%, 0.73 KgCO₂e/kg FRCM.

Among them, by the end of 2025,

Achieve a 3% reduction in carbon emissions per kilogram of FPCM by enhancing digestion rates to intestinal fermentation and manure management;
Achieve a 1% reduction in carbon emissions per kilogram of FPCM by optimizing the cattle herd structure, reducing calving intervals, and increasing the proportion of milkable cows;
Achieve a 1.5% reduction in carbon emissions per kilogram of FPCM by upgrading energy facilities, implementing energy-saving measures, enhancing energy utilization efficiency, optimizing energy structure, and increasing the proportion of green energy sources;
Achieve a 1.5% reduction in carbon emissions per kilogram of FPCM by optimizing manure management practices.

Target Progress:

2022, the Company’s carbon emissions per unit of corrected milk (0.90 KgCO₂e/kg FRCM) decreased by 1.1% compared to 2021
2023, the Company’s carbon emissions per unit of corrected milk (0.89 KgCO₂e/kg FRCM) decreased by 2.2% compared to 2021

Modern Dairy launched the dual-carbon plan and set a quantitative target for carbon intensity emissions by 2035. Modern Dairy listed the ultra-large-scale farms and super-large-scale farms with low carbon emission intensity as the “carbon emission” model and star. “Energy saving and emission reduction” is incorporated into the strategic planning, aiming to provide a strong basis for the coordinated development of low-carbon and quality improvement and efficiency enhancement, and boost the confidence of the industry’s sustainable development.

By the end of 2023, Modern Dairy had planted a large number of crops and trees on the vacant land of its farms to beautify the environment and achieve carbon sequestration goals. The project encompassed 17 dairy farming companies, accounting for 40% of the total. The total area of tree planting reached 816 mu, with tree species including pine, willow, elm, and poplar. Tree planting not only helps to improve the ecological environment but also absorbs carbon dioxide and releases oxygen through photosynthesis, thus achieving carbon sequestration.

In addition, the planted trees can provide a variety of ecological benefits, such as:

Improving air quality: Trees absorb pollutants from the air and release fresh oxygen through photosynthesis.
Soil and water conservation: Tree roots can fix soil, reduce soil erosion, and prevent land degradation.
Enhancing biodiversity: Trees provide habitats for a variety of animals and plants, promoting the diversity and stability of ecosystems.

In the future, Modern Dairy plans to further expand the scale of the carbon sequestration project and promote this practice in more ranches to achieve higher environmental and social value.

Baoji Farm