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Sustainability Catalogue

Commitment Letter for Sustainable Procurement Management Guidelines

As a leading dairy cattle farming operator and raw milk producer, Modern Dairy is committed to providing high-quality fresh milk and dairy products, while establishing long-term, mutually beneficial, and sustainable partnerships with our suppliers. We recognize the important role that suppliers play in our business success and expect our suppliers to comply with this guideline and strive for sustainable and long-term cooperation. The guideline is as follows:

1. Business Ethics Code of Conduct:

  • Adhere to the principle of integrity and do not engage in fraud, corruption, or deception.
  • Maintain an honest environment for bidding, inquiry, business negotiation, and business cooperation.
  • Resolutely do not engage in improper bribery, extortion, or acceptance of bribes with Modern Dairy.
  • Resolutely do not engage in any behavior that infringes on the legitimate rights and interests of Modern Dairy, such as counterfeiting, shoddy, falsification, etc.
  • Resolutely do not provoke trouble, spread rumors, distort facts, or damage the normal business order of the other party.
  • Resolutely do not engage in any business activities that violate national laws and regulations.
  • Resolutely do not participate in any illegal and criminal activities involving pornography, drugs, gambling, etc.

2. Ethical, Social and Environmental Standards

2.1 Labor Standards

  • Prohibition of Forced Labor

    Commit to avoiding all forms of forced or compulsory labor, such as all work must be done voluntarily, and all workers must be allowed to freely terminate their employment relationship with reasonable notice. Do not use any form of threat, violence, restriction, detention, or other means to force workers to continue working or deprive them of their freedom. Do not restrict workers’ movement or communication in any way, or illegally confiscate workers’ identity documents, passports, or other important documents.

  • Child Labor and Minor Workers

    Comply with all applicable laws and regulations regarding the minimum working age and ensure that business activities do not use any form of child labor. Verify the age of employees when hiring, and do not arrange minors under the age of 18 to engage in any work that may harm their health or safety. Ensure that the working hours and rest time of minor workers comply with local laws and the regulations of the International Labor Organization (ILO), and do not affect their opportunities to participate in education and training.

  • Working Hours

    Comply with all applicable laws and regulations related to working hours, rest, wages, and benefits, and ensure that no employee exceeds the maximum working hours stipulated by law or contract, whichever is lower, and respect the right of employees to enjoy paid annual leave and public holidays. Arrange overtime work reasonably according to the actual situation and the wishes of the employees and ensure that overtime does not exceed the scope allowed by local laws or industry norms.

  • Wages and Benefits

    Comply with all applicable laws and regulations related to overtime pay and minimum wage and ensure that all employees receive fair and timely remuneration. Strictly implement the labor quota standards, and do not force or coerce workers to work overtime. When arranging overtime work, pay remuneration to workers in accordance with relevant national regulations. Pay employees reasonable and sufficient wages on time, which can at least meet their basic living needs and some disposable income. Explain clearly to employees their wage structure and calculation method and provide relevant records and proofs. Do not deduct or delay the payment of employees’ wages for any reason and provide relevant benefits and insurance for employees according to local laws and industry norms.

  • Humane Treatment

    Provide a safe, healthy, and non-violent working environment, and do not tolerate any form of harassment, abuse, or punishment, including but not limited to physical, sexual, verbal, or psychological aspects. Do not conduct any form of illegal or cross-gender searches, nor threaten to do so. Establish an effective complaint and appeal mechanism, and ensure that employees can freely, safely, and confidentially reflect their problems and opinions, and receive timely and fair treatment.

  • Anti-Discrimination

    Comply with the principle of equality and non-discrimination in business activities, and do not discriminate based on race, color, religion, gender, age, disability, nationality, sexual orientation, political views, or other characteristics protected by law in any business activity. Ensure that all employees have equal opportunities and treatment in recruitment, training, promotion, remuneration, benefits, etc., and evaluate and reward them according to their abilities and performance. Respect the diversity and inclusiveness of employees and provide them with a non-discriminatory and unbiased working environment.

  • Freedom of Association

    Respect the right of employees to freely associate, join unions, seek representation and collective bargaining as stipulated by law. Do not interfere with or retaliate against employees who exercise their rights to freedom of association and collective bargaining. Establish good communication and cooperation with unions or other organizations that represent employees’ interests and respect their legitimate rights and interests in labor relations.

2.2 Health and Safety

  • Workplace Environment

    Provide a safe, healthy, and non-violent working environment, comply with all applicable health and safety laws and regulations, and prevent accidents and injuries. Ensure that the workplace meets the safety standards for fire, electricity, construction, etc., and is equipped with sufficient safety facilities and equipment, such as fire extinguishers, first aid kits, safety exits, etc. Conduct regular safety inspections and risk assessments of the workplace and eliminate any factors that may cause danger or harm in a timely manner. Ensure that the workplace has good hygiene and ventilation conditions, and provide appropriate facilities such as drinking water, toilets, etc.

  • Product Quality and Safety

    Strictly comply with all laws and regulations related to product safety and quality, as well as meet the quality requirements of our company. Establish and maintain an effective quality management system to ensure the quality and safety of products and services. Handle any problems or complaints related to product or service quality or safety in a timely manner and take appropriate corrective and preventive measures to avoid recurrence.

2.3 Environmental Protection and Social Responsibility

  • Environmental Protection

    Take measures to reduce the negative impact on the environment, comply with all applicable environmental laws and regulations, improve resource utilization efficiency, reduce waste emissions, and reduce greenhouse gas(GHG) emissions.

  • Building a “Zero Forest Destruction” Supply Chain

    Conduct special management of the procurement behavior of feed raw and auxiliary materials such as dairy cattle and other breeding animals and soybean meal that have forest destruction risks and strive to build a “zero forest destruction” supply chain. The raw material producing areas should not cause harm such as deforestation due to the expansion of agricultural land or planting land. Comply with the applicable forest protection laws and regulations of the countries and regions where the business is conducted and prohibit the purchase of products produced from the destruction of High Carbon Stock Forests, High Conservation Value Forests, and peatlands, wetlands, and tropical rainforests and other ecosystems.

  • Protecting Biodiversity

    Respect and protect the biodiversity and natural landscape of our region and avoid any adverse impact on protected or endangered species and habitats. When conducting related business activities, minimize the consumption and pollution of natural resources such as land, water resources, and air quality, and adopt environmentally friendly technologies and methods.

2.4 Others

  • Information Protection: Protect personal information and privacy and comply with all applicable data protection laws and regulations. Protect the confidential assets and information of customers, and do not disclose, misuse, or misuse these assets and information.
  • Goodwill and Reputation: In the process of cooperation between the two parties, actively maintain the goodwill and reputation of the other party, and never smear, slander, damage, or boycott the other party.
  • Negative Information: Do not arbitrarily create or disseminate negative reports, comments, etc. about the other party in any media.

Our company has read and understood the above “Sustainable Procurement Management Guidelines” and promises to strictly abide by the terms and conditions of the “Sustainable Procurement Management Guidelines”. If it is found that our company violates the above terms and conditions due to its own reasons, Modern Dairy Group has the right to terminate the cooperation with our company and pursue the breach of contract responsibility according to the contract and other relevant regulations, and our company unconditionally accepts and actively cooperates.