Modern Dairy Environmental Protection Policy

Modern Dairy, as a leading dairy cattle farming operator and raw milk producer in the industry, deeply understands that environmental protection is a core component of our sustainable development strategy. We are committed to minimizing the environmental impact of our operations while providing high-quality raw milk and dairy products and actively promoting the health and restoration of ecosystems. This Environmental Protection Policy Statement aims to clarify Modern Dairy’s commitments, responsibilities, goals, and scope of implementation in environmental protection, ensuring that our business activities comply with relevant environmental regulations and continuously pursue excellent environmental performance.

1. Environmental Policy Commitments and Principles

Modern Dairy commits to:

Compliance with Regulations and Standards: Strictly adhere to all applicable environmental protection laws, regulations, and related provisions, ensuring that all operational activities are legal and compliant.
Continuous Improvement: Continuously evaluate and improve our environmental performance by introducing advanced technologies, optimizing management processes, and enhancing employee awareness to consistently reduce our environmental footprint.
Pollution Prevention: Implement preventive and control measures in the company’s production and operation processes to reduce waste, wastewater, exhaust gas, and noise emissions, and promote environmental responsibility among supply chain partners.
Efficient Resource Utilization: Optimize the efficiency of natural resource use, such as water, energy, and land, and promote circular economy models to reduce resource consumption.
Biodiversity Protection: Actively protect and restore biodiversity in our operating areas, avoid irreversible damage to ecosystems, and support biodiversity-related research and conservation projects (detailed in the “Modern Dairy Biodiversity Policy”).
Climate Action: Identify and manage climate change-related risks and opportunities, strive to reduce greenhouse gas emissions, and explore solutions for climate change adaptation.
Transparency and Communication: Regularly disclose environmental performance and maintain open and transparent communication mechanisms with internal and external stakeholders, listening to their opinions and suggestions.

2. Environmental Management Roles and Structure

We clarify the environmental management responsibilities of personnel at all levels of the company to ensure the effective implementation of this environmental policy:

Board of Directors: The Modern Dairy Board of Directors, as the highest decision-making body for this policy, is responsible for approving, supervising, and guiding the formulation and implementation of the company’s overall environmental strategy, ensuring that environmental goals are consistent with the company’s development strategy.
CEO: The CEO is responsible for translating the environmental strategy approved by the Board into actionable plans, coordinating resource allocation, overseeing the implementation by various departments and farms, and regularly reporting environmental performance to the Board.
Safety and Environmental Protection Department: Provides professional technical support, guides various departments and farms in standardizing resource use, optimizing waste treatment and pollutant emission processes, and conducts daily supervision, evaluation, and reporting of environmental performance.
All Departments and Farms: Heads of all business departments and farms are the direct implementers of this policy in daily operations, responsible for formulating and implementing environmental management measures consistent with this policy, and ensuring that employees comply with environmental management requirements.
All Employees: Every employee of Modern Dairy has the responsibility to understand and comply with the company’s environmental protection policy and relevant rules and regulations, actively participate in environmental protection activities, and report any potential environmental risks or violations.

3. Environmental Performance Management

To achieve continuous improvement in environmental performance, we will:

Establish an Environmental Management System: Gradually establish and improve an environmental management system (such as ISO 14001) that complies with international standards to systematically manage environmental risks and opportunities.
Regular Assessment and Audits: Regularly conduct internal and external assessments and audits of environmental performance, identify areas for improvement, and formulate corrective and preventive measures.
Technological Innovation and Investment: Continuously invest in environmental technology research and development and application, introducing more efficient and environmentally friendly production equipment and processes.
Performance Indicators and Monitoring: Set quantifiable environmental performance indicators (KPIs) and establish a comprehensive monitoring system to regularly collect, analyze, and report environmental data.
Risk Identification and Compliance Assessment: Regularly conduct environmental risk identification and compliance assessments to ensure that the company’s operations always comply with the latest environmental regulatory requirements.
Emergency Preparedness and Response: Establish and improve an environmental emergency management system, regularly revise emergency plans, and organize drills to enhance the ability to respond to sudden environmental incidents.

4. Environmental Goals and Action Plans

Modern Dairy will set specific, measurable, achievable, relevant, and time-bound (SMART) environmental goals and objectives to reduce our environmental impact. These goals will include, but are not limited to:

Carbon Emission Reduction Management: Actively respond to national carbon peaking and carbon neutrality goals by optimizing feed formulations, improving farm energy efficiency, promoting the resource utilization of manure, and setting and gradually achieving targets for reducing greenhouse gas emission intensity.
Waste Management: Increase the resource utilization rate of waste (especially livestock manure), reduce landfill volume, and explore new waste treatment and recycling technologies.
Water Resource Management: Reduce water consumption per unit product, optimize water recycling, reduce wastewater discharge, and ensure that wastewater treatment meets discharge standards.
Energy and Greenhouse Gas Emissions: Improve energy efficiency, increase the proportion of renewable energy use, and set targets for reducing greenhouse gas emission intensity or total emissions.
Soil Health: Continuously monitor and improve the soil health of land returned to cultivation, preventing soil pollution and degradation.
Biodiversity: Implement specific biodiversity protection and restoration projects, such as habitat restoration and species protection, and regularly evaluate their effectiveness.
Air Quality Management: Take measures to reduce the emission of air pollutants (such as ammonia, hydrogen sulfide, particulate matter, etc.) generated during operations, reducing the impact on the surrounding environment and communities.
Chemical and Hazardous Substance Management: Minimize the use of chemicals and hazardous substances, and ensure their safe storage, use, and disposal to prevent environmental pollution.

5. Stakeholder Engagement

Modern Dairy firmly believes that effective communication and cooperation with external stakeholders are key to formulating and implementing a successful environmental policy. We will:

Regular Communication: Regularly communicate with external stakeholders such as government agencies, industry associations, research institutes, local communities, suppliers, customers, and non-governmental organizations through surveys, forums, public reports, and other forms.
Listen to Opinions: Actively listen to and consider the opinions, suggestions, and concerns of external stakeholders regarding our environmental policy and practices.
Win-Win Cooperation: Seek opportunities for cooperation with external partners in environmental protection to jointly promote sustainable development of the industry.
Public Participation: Conduct public participation activities in accordance with laws and regulations during the early stages of major project construction, fully informing and listening to public opinions.

6. Environmental Training

Modern Dairy will provide comprehensive environmental training to all employees to enhance their environmental awareness and responsibility:

New Employee Training: All new employees involved in production operations, environmental management, equipment maintenance, and waste treatment will receive training on the company’s environmental protection policy, environmental management system, and their own environmental responsibilities.
Regular Training: Regularly organize specialized environmental training for different positions and levels, including but not limited to: waste classification and treatment, water conservation, energy efficiency management, safe use of chemicals, emergency response, and biodiversity protection practices.
Awareness Enhancement: Continuously enhance employees’ understanding of the company’s environmental impact through internal publicity, case sharing, competitions, and other forms, encouraging employees to practice environmental concepts in their daily work.
Professional Skill Training: Provide professional skill training for employees involved in environmental management, monitoring, and emergency response to ensure they have the necessary capabilities to fulfill their duties.
Advocate Green Living: Encourage employees to practice green and low-carbon behaviors in their daily work and life, such as choosing green travel and conserving resources.

7. Policy Scope

This Environmental Protection Policy covers the following aspects of Modern Dairy’s operations, corporate processes, and supply chain:

Self-operated Business: Includes all operational activities of Modern Dairy’s own farms, such as dairy cattle farming, raw milk production, digital platforms, feed, forage, and breeding.
Suppliers: We will require our key suppliers (especially for feed, veterinary drugs, equipment, etc.) to strictly comply with all applicable environmental laws and regulations, and prioritize suppliers with good environmental performance in procurement. We will promote environmental sustainability in the supply chain through supplier codes of conduct, contractual terms, and regular evaluations.
Products and Services: Fully consider environmental management requirements in product research and development, production, and sales processes, explore the use of environmentally friendly materials, optimize production processes, and reduce resource consumption and environmental footprint.
Distribution and Logistics: Optimize logistics routes, promote low-emission transportation methods, strengthen packaging waste management, and reduce the environmental impact of distribution.
Mergers and Acquisitions: In merger and acquisition activities, environmental due diligence will be an important aspect to ensure that the merged or acquired company complies with relevant environmental regulations and company standards.

8. Policy Governance and Oversight

This Environmental Protection Policy Statement has been acknowledged and approved by the Modern Dairy Board of Directors. The Board will regularly review the implementation of this policy and environmental performance reports to ensure the policy’s effectiveness and suitability, and make necessary revisions and updates based on internal and external environmental changes. The executive management will be responsible for daily supervision and implementation and will report regularly to the Board.