Advanced Analysis Report on Biodiversity Risks

Advanced Analysis Report of Modern Dairy Biodiversity Risk

China Modern Dairy Holding Ltd. (hereinafter referred to as “Modern Dairy”, or “we”) fully recognizes that biodiversity conservation is not only a way to respect the natural environment and equal rights to resources, but also an essential pathway for sustainable transformation. We have completed the biodiversity impact assessment related to our own operations and upstream value chain and have developed responses to identified risks and opportunities.

Biodiversity Risk and Opportunity Assessment Methodology

Referring to the four-step methodology of Locate, Evaluate, Assess, Prepare (LEAP) suggested by the Taskforce on Nature-related Financial Disclosures (TNFD), we assess the biodiversity risks and opportunities in dairy farming, forage planting, and forage processing stages. This includes identifying the dependencies and impacts at each stage, evaluating how these factors affect the value chain, summarizing the potential risks and opportunities faced in each business segment, and developing corresponding response measures based on biodiversity conservation strategies of “avoid, minimize, restore and offset.”

Identification Results of Ecologically Sensitive Areas

We used Biodiversity Impact Assessment Tool(1) (BIA) and Integrated Biodiversity Assessment Tool(2) (IBAT) to identify and assess the ecological sensitivity of all our sites (including all farms, pastures, and forage processing plants). These tools can be used to obtain the number of protected areas (PA) and key biodiversity areas (KBA) (3) within a radius of 10 km and 50 km of our sites. We also included species listed in the IUCN Red List of threatened species and those protected by the Wild Animal Conservation Law of the People’s Republic of China, in the threatened species statistics, and incorporated sites near national and provincial nature reserves into the protected area statistics to assess the potential impact of our operations on surrounding ecosystems.

We have identified the sites with protected areas or key biodiversity areas located within a radius of 10 km as high ecologically sensitive sites. These sites are regularly monitored for endangered species and natural reserve conditions. Detailed information can be found in the attached “Modern Dairy Endangered Species and Nature Reserve List”. We will attach high attention to the 9 sites with high ecological sensitivity for their impact on surrounding habitats and species and implement effective risk prevention measures.

Table 1 Biodiversity Sensitivity IBAT/BIA Identification Results

Ecological Sensitivity Assessment Indicator	Quantity
Number of sites with high ecological sensitivity	9
Number of sites with protected areas within a radius of 10 km	6
Number of sites with key biodiversity areas within a radius of 10 km	6
Number of sites with protected areas within a radius of 50 km	15
Number of sites with key biodiversity areas within a radius of 50 km	28

Table 2 Endangered Species Identification Results

Ecological Sensitivity Assessment Indicator	Quantity
Number of IUCN Critically Endangered, Endangered, and Vulnerable species within 10 km	5
Number of National Class I and II protected animal species within 10 km	43

Protection on Ecologically Sensitive Sites

All sites of Modern Dairy are conducting identification and surveys of nature reserves, ecological protection zones, and rare plant and animal species. We clarify the ecological sensitivity and biological resource conditions of those areas and identify potential adverse impacts on surrounding areas during the development and operation of dairy farming, forage planting, and forage processing. Throughout the entire process, we adhere to the four major biodiversity protection measures of “avoid, minimize, restore and offset” and support biodiversity restoration and governance after project termination.

Modern Dairy integrates sustainable development principles in the design, development, operation, and decommissioning of livestock and planting projects, with a strong emphasis on biodiversity conservation. All construction projects are equipped with reclamation deposits, planning for land reclamation after project termination. These deposits are paid and deposited in third-party bank-controlled accounts to ensure public safety, environmental protection, and land use after the project ends. We also enhance green spaces around our plants and its surroundings according to the actual operation conditions, which facilitates ecological restoration, prevents soil erosion, and improves air quality. We commit that all sites where land use changes occur will be restored to their original state after the project ends, ensuring the land’s condition and the ecological habitats of plants and animals are fully restored.

Additionally, we are continuously investigating novel strategies for the ecological restoration of disturbed land. In collaboration with a mining company, we implemented the Xinyuan Farm mining reclamation project. To create a green industry that combines planting and breeding with circular resource usage, this project entails constructing organic forage bases and premium dairy farms on former mining sites. We seek to address the difficulties the mining industry faces in ecological recovery while restoring ecosystems affected by mining operations, including biodiversity, soil quality, and water quality, through contemporary, sustainable methods. We are also working closely with local governments to lease saline-alkali land for farm construction. At our Shuangcheng Farm, we have divided the responsibility areas according to the division in the saline alkali area and continued to try to plant various salt-resistant crops. Additionally, we are encouraging surrounding residents to grow silage corn with strong drought-resistant and salt-resistant abilities, promoting soil improvement in saline-alkali areas. Our Modern Grassland Industry Park in Togtoh County carried out a comprehensive saline-alkali land management project, focusing on issues such as low crop germination rates and low yields. We increased soil organic matter and permeability and reduced saline-alkali components by digging drainage channels, applying well-decomposed cow manure, organic fertilizers, acidic fertilizers, and microbial fertilizers. Looking ahead, we will persist in exploring the development of farm and grassland construction projects on reclaimed lands, such as reclaimed mining land and saline-alkali land. We are committed to planting indigenous vegetation at all reclamation sites, actively contributing to the restoration and rehabilitation of disturbed lands and providing native wildlife with a green and healthy habitat.

Additionally, crop planting and feed storage may inadvertently attract birds into operational areas. Strictly adhering to wild animal conservation laws and regulations, we prohibit any hunting or poaching within operational areas. We also actively create a green ecological circle at our sites and gradually improve bird identification and monitoring capabilities. For sites where bird incursions are frequent, we will properly guide the birds to a safe area to minimize human impacts on bird species diversity. If protected bird species are found within the operational area, the farm will promptly contact animal conservation organizations or rescue agencies to ensure the birds are treated appropriately.

In terms of upstream biodiversity protection in the value chain, we continue to focus on forest conservation and actively monitor and manage dairy cows and soybean meal products involved in forest development risks within the industry chain. We are committed to achieving “zero deforestation” by 2030 and working to eliminate forest development risks in our supply chain, to make contribution to forest protection. For further information on our zero-deforestation initiatives and progress, please refer to the Modern Dairy Forest Protection Policy.

Materiality Evaluation for Dependencies and Impacts

We used the Explore Natural Capital Opportunities, Risks, and Exposure (ENCORE) tool (4) to identify the biodiversity dependencies and impact factors related to our operations and upstream value chain. Additionally, we utilized the Biodiversity Risk Filter (BRF) (5) developed by the World Wide Fund for Nature (WWF) to assess biodiversity dependencies and impacts across all our sites. Combining the analysis results from ENCORE, BRF, and the practical aspects of Modern Dairy’s business, we comprehensively evaluated the biodiversity dependencies and impacts across the value chain. Based on the materiality evaluation results, we will prioritize the dependencies and impact factors ranked as “Very High (VH)” and analyze the interactions between these factors and our business.

Table 3 Materiality Evaluation Results for Dependencies in Dairy Farming/Forage Planting/Forage Processing

No.	Dependencies	Dairy Farming	Forage Planting	Forage Processing
1	Biomass Provisioning	H	H	NA
2	Genetic Material	M	M	NA
3	Solid Waste Remediation	M	M	M
4	Soil and Sediment Retention	VH	VH	L
5	Soil Quality Regulation	H	H	NA
6	Water Purification	VH	H	H
7	Dilution by Atmosphere and Ecosystems	L	M	L
8	Biological Control	M	M	L
9	Air Filtration	M	M	L
10	Flood Mitigation	M	M	M
11	Global Climate Regulation	H	H	L
12	Water Supply	H	H	H
13	Noise Attenuation	L	NA	NA
14	Mediation of Sensory Impact (other than noise)	L	NA	L
15	Local (Micro and Meso) Climate Regulation	M	M	L
16	Storm Mitigation	M	M	M
17	Water Flow Regulation	H	H	H
18	Rainfall Pattern Regulation	VH	VH	NA
19	Pollination	NA	M	NA
20	Nursery Population and Habitat Maintenance	L	L	NA
21	Animal Power	NA	M	NA

*Rating Legend: VH- Very High；H-High；M-Medium；L-Low；NA- Not Applicable

Table 4: Materiality Evaluation Results for Impacts in Dairy Farming/Forage Planting/Forage Processing

No.	Impacts	Dairy Farming	Forage Planting	Forage Processing
1	Disturbances (Noise, Light)	M	M	M
2	Area of Freshwater Use	H	H	NA
3	Emissions of GHG	H	M	L
4	Emissions of Non-GHG Air Pollutants	H	M	L
5	Generation and Release of Solid Waste	VH	H	M
6	Area of Land Use	H	H	L
7	Emissions of Toxic Pollutants to Water and Soil	VH	VH	M
8	Volume of Water Use	H	VH	M
9	Introduction of Invasive Species	H	M	NA

* Rating Legend: VH- Very High；H-High；M-Medium；L-Low；NA- Not Applicable

Impact of Soil and Sediment Retention:

Vegetation in ecosystems helps reduce soil and sediment loss, mitigating or preventing the potential damage caused by large-scale soil or rock movement to production operations and biological health and safety. The planting of forage needed for dairy cattle farming depends on soil and sediment retention to maintain a physical environment conducive to vegetation growth. Stable farm operations require stable geological conditions, and geological disasters such as landslides can not only damage farm and its facilities but also pose severe threats to both humans and livestock. Such events also disrupt the soil and sediment conditions of pastures, causing soil erosion and reduced fertility, ultimately affecting forage quality.

Impact of Water Purification:

A healthy and well-functioning ecosystem has self-purification capabilities, that means, in a natural state, the ecosystem can restore and maintain the normal chemical and physical conditions of surface and groundwater, reducing harmful impacts of pollutants on both humans and dairy cattle. The water quality for dairy cattle directly affects their milk production and poor water quality may lead to a decrease in milk yield. Poor water quality, such as substandard pH, excessive minerals, heavy metal contamination, and bacterial pollution, can also lead to diseases in dairy cattle. Given that dairy farming heavily relies on water purification services, when water’s self-purification abilities degrade or become insufficient, our farms will invest in water-saving or purification equipment to meet water quality standards, thus increasing operational costs.

Impact of Rainfall Pattern Regulation:

Rainfall pattern regulation refers to the effect of vegetation, through evapotranspiration, on rainfall. Forests and other vegetation release moisture into the atmosphere, which aids in the formation of rainfall. In mainland areas, rainfall is primarily dependent on such water cycle process. On one hand, an increase in rainfall can trigger extreme natural events such as floods and landslides, damaging farm facilities and structures, including barns, feed storage facilities, and milking equipment. Additionally, damp environment may not only increase the risk of disease transmission, but also cause waterlogging on pastures, leading to moldy or deteriorating forage, which seriously affects its nutritional value. On the other hand, a reduction in rainfall can lead to droughts and water shortages, affecting water availability for dairy cattle and causing soil moisture depletion, which limits forage growth. To obtain adequate water resources, businesses in the value chain may invest in water-saving or water-recycling equipment, thus raising operational costs. As dairy farming and forage planting are highly dependent on rainfall patterns, extreme fluctuations in rainfall directly impact normal production activities, and significantly increase operational costs.

Impact of Operation on Solid Waste Generation and Emissions:

Dairy farming generates various solid waste materials, including manure, bedding, leftover feed, crop residues, and deceased animals. Improper handling can lead to habitat degradation and soil pollution.

Impact of Operation on Emissions of Toxic Pollutants to Water and Soil:

There are twomain mechanisms influencing soil and water pollution during agricultural activities. First, biological species exposed to soil and water pollutants may suffer health impacts, which then affects species populations and their size. Second, the toxicity of pollutants may cause a decline in invertebrate and fungal species populations, potentially accompanied by an expansion of invasive plant species tolerant to pollutants and toxic substances, thus altering the original ecological structure and biological integrity. For farms, improper management of manure, which may contain harmful bacteria, chemicals, and pollutants (such as ammonia, nitrates, phosphorus, and antibiotics), can result in the deposition of toxic substances in the soil and water pollution. For pastures, the use of pesticides and herbicides in forage planting can cause the accumulation of toxic pollutants in the soil, which can contaminate surrounding soil and water bodies through surface runoff.

Impact of Operation on Volume of Water Use:

Volume of Water Use includes both surface and groundwater use. In the pastures, water loss through processes such as waterlogging, surface evaporation, and leakage can result in significant water use during forage planting. Irrigating arable crops generates large amounts of water, and unsustainable water use will have a serious impact on surface and groundwater reserves.

Assessment on and Response to Biodiversity Risk and Opportunity

Based on the analysis of dependencies and impacts mentioned above, we further assessed the types of biodiversity-related risks and opportunities in the short, medium, and long term. Referring to the risk and opportunity classification framework recommended by TNFD, we summarized the potential impacts on our business and integrated biodiversity protection strategies such as avoiding, minimizing, restoring and offsetting. We have developed corresponding responses to ensure effective management of biodiversity-related risks and to support the long-term stable development of our business.

Table 5 Biodiversity Risk and Opportunity Assessment and Response Preparation

Risk/Opportunity	Risk Category	Risk Name	Time Range	Potential Impact on Business	Response
Physical Risk	Acute Risk	Change in Rainfall Patterns	Medium to Long-term	Changes in rainfall patterns may trigger extreme natural events such as floods, landslides, or droughts. Farm: Heavy rainfall may damage farm facilities and structures, including barns, feed storage, and milking equipment. A damp environment may also increase disease transmission risks. Reduced rainfall may lead to water shortages, affecting dairy cattle hydration. Pastures: An increase in rainfall may lead to waterlogging on pastures, leading to moldy or deteriorating forage, severely affecting its nutritional value. A decrease in rainfall may cause droughts and water shortages, limiting forage growth and affecting yield and quality.	Farm: Strengthen pest and disease control during the rainy season and ensure barn cleanliness and comfort. Continuously improve water management systems to increase water recycling and ensure water supply during drought periods. Pastures: Improve drainage systems to quickly remove waterlogging; store forage scientifically to reduce rainwater exposure.
Soil Retention Risk	Medium to Long-term	Farm: Landslides may damage the farm and its infrastructure, threatening the safety of dairy cattle and staff. Pastures: Soil and sediment loss may lead to reduced soil fertility, affecting forage quality.	Farm: Assess geological conditions, hydrogeological characteristics, and potential hazards, and take targeted reinforcement measures. Pastures: Conduct risk assessments for soil erosion and pay soil conservation compensation fees in compliance with regulations.
Chronic Risk	Water Use Risk	Medium to Long-term	Water Supply Farm: Large amounts of water are required for livestock drinking, barn cleaning, and milking operations. Insufficient water supply may decrease milk yield. Extreme temperatures may cause heat stress or cold stress, increasing their water volume. Pastures: Prolonged water shortages or droughts may limit or kill forage, severely affecting its quality and yield.	Farm: Adjust water intake according to cows’ physiological stages and environmental conditions; continually improve water recycling and overall water management efficiency. Install precise sprinkler systems to minimize water waste. Perform regular inspections to prevent water leakage. Pastures: Build water storage and irrigation facilities to ensure water supply for forage planting.
Water Quality Farm: Dairy cow water quality directly impacts milk yield. Poor water quality (e.g., substandard pH, excessive minerals, heavy metal contamination, and bacterial pollution) can lead to milk yield reductions or diseases in cows.	Farm: Regularly monitor water quality indicators such as heavy metals and organic substances, ensuring water quality standards for cows. Install groundwater purification systems.
Species Security Risk	Short-term	Farm: Invasive species may contaminate feed and bedding materials, and using manure from invasive plant-contaminated areas may increase species invasion risk.	Farm: Continue promoting the harmless and resourceful treatment of manure; establish standards for feed and bedding material processing and pathogen control, with screening before entering the farm.
Land Use Risk	Medium to Long-term	Farm: Dairy cow farming needs large areas of land for livestock and necessary facilities, and improper management may impact the original ecosystem functions, such as wetland or native grassland encroachment. Pastures: Forage planting needs massive land areas, and improper management may affect original ecosystem functions, such as wetland or native grassland encroachment. Long-term accumulation of manure may lead to nutrients (nitrogen, phosphorus) overaccumulation in surrounding soils, causing soil degradation, and reducing land productivity, thus affecting forage yield.	Farm: Adopt intensive land use practices to ensure legal and compliant land use. Implement an “ecological agriculture” model combining forage planting, dairy farming, manure treatment, biogas fertilization, and forage planting. Pastures: Use ecological planting practices and technologies to rational utilize natural and biological resource. Utilize land in accordance with legal compliance.
Pollution Risk	Short-term	Solid Waste Farm: Dairy farming generates various solid waste materials, including manure, bedding, leftover feed, crop residues, and deceased animals. Improper handling may lead to habitat degradation and soil pollution. Pastures: Forage planting produces solid waste materials like plant residues and harvest by-products, and improper management may cause ecological damage and soil pollution.	Farm: Continue promoting the resource use of manure and waste; collaborate with qualified third parties to ensure proper disposal of dead animals and medical waste. Pastures: Realize the resource utilization of agricultural plant waste recycling methods such as straw returning, composting, and feed conversion.
Toxic Discharges to Water Bodies and Soil Farm: Manure may contain harmful bacteria and pollutants (e.g., ammonia, nitrates, phosphorus, heavy metals, antibiotics and hormones). Improper management may lead to toxic soil and water contamination. Pastures: Use of pesticides and herbicides in forage planting may result in toxic substances accumulating in soil and contaminating surrounding land and water areas via rainwater runoff.	Farm: Continue promoting the resource use of manure. Pastures: Increase the proportion of organic pastures that do not use chemical pesticides and fertilizers. Use soil-based formula fertilization to reduce chemical fertilizer usage and improve efficiency. Select water-soluble, low-toxicity pesticides and use drones for better pesticide dispersion and reduced impact.
Waste Gas and GHG Emissions Farm: Dairy farming produces massive greenhouse gas emissions, primarily methane, a major greenhouse gas. Pastures: Forage planting generates massive PM10, especially during the cultivation phase, where fertilizers and pesticides are heavily used, as well as during land preparation and harvesting phase, where diesel-powered agricultural machinery (e.g., CO, hydrocarbons, NOx, SO2, particulate matter, and VOCs) are used.	Farm: Continue optimizing livestock feed management to reduce methane emissions per unit of livestock product. Pastures: Use soil-based formula fertilization techniques to reduce chemical fertilizer usage and improve efficiency.
Transition Risk	Policy Risk		Short-term	The government and capital markets are increasing requirements for biodiversity protection information transparency. Failure to disclose in time and in compliance may pose compliance risks on enterprises. The government issued the “China’s Biodiversity Conservation Strategy and Action Plan (2023-2030),” clarifying future directions and focus of biodiversity conservation. In addition, the government adjusted the list of endangered species and the scope of sensitive biodiversity areas. Stricter environmental protection policies in regions like the Yellow River and Yangtze River economic belt may pose risks such as farm closure or relocation.	Timely and effectively disclose biodiversity policies and practices in response to government and capital market disclosure requirements. Focus on policy changes and implement biodiversity protection work for farms and pastures to avoid compliance risks.
Market Risk		Medium to Long-term	Consumers are increasingly focusing on the sustainability of products and services, and regulators are raising market entry barriers. This leads downstream companies to place higher sustainable requirements on upstream suppliers, leading to higher raw material procurement costs and compliance management costs.	Conduct market demand preference analysis, consumer surveys, and industry trend studies to understand market inclinations for eco-friendly products. Use these insights to support R&D and market expansion decisions.
Reputation Risk		Short-term	Investors are increasingly focusing on ESG performance. Poor environmental performance may affect investors’ trust and support, increasing financing costs. Society is increasingly concerning about corporate environmental friendliness and sustainable practices. Poor environmental governance and ecological protection may lead to a loss of stakeholders’ trust, damaging corporate credibility and reputation, lowering Modern Diary’s brand value, and possibly reducing consumer purchase willingness.	Strengthen communication with investors and consumers on biodiversity protection topics, such as publishing biodiversity protection action reports to increase corporate transparency in environmental governance.
Systemic Risk	Ecosystem Stability Risk		Long-term	Land salinization, desertification, and grassland degradation may lead to reduced forage supply.	Diversify forage sources and improve local planting, internal group sourcing, external procurement, and overseas sourcing mechanisms. Optimize forage planting models and continuously improve land yield per unit area. Continuously select high-resistance forage varieties and explore planting practices in sandy or saline-alkali lands, as well as the reclamation of degraded grasslands.
Opportunity	Market Opportunity		Medium to Long-term	Corporate clients and consumers are inclined to choose products and services that align with sustainable development principles.	Use communication channels such as ESG reports and company websites to convey sustainability values and management achievements to partners and consumers.
Financing/Capital Opportunity		Medium to Long-term	Capital markets are imposing greater ecological friendliness and resilience requirements, offering low-cost financing opportunities or reducing financing barriers for eligible projects.	Consider building a green/sustainable financial framework, clarify sustainable financing concepts, goals, and post-financing fund use, and develop disclosure plans. Look for financing opportunities in eco-friendly and sustainable transformation-related bonds and credit products in domestic and international markets.
Resource Efficiency Opportunity		Short-term	Water-saving leads to reduced operational costs for water and wastewater disposal.	Focus on the application of water-saving technologies to improve water use efficiency and recycling rate.
Reputation Capital Opportunity		Medium to Long-term	Society is increasingly focusing on ecological protection, and companies that practice resource equality and give back to society are more likely to gain public support.	Use communication channels such as ESG reports and company websites to convey sustainability values and management achievements to partners and consumers.
Ecosystem Protection, Restoration, and Regeneration Opportunity		Short-term	Specific regions are subject to regulatory requirements and market demand for ecological restoration is gradually emerging.	Focus on new cooperation models such as mine reclamation and saline-alkali land improvement and explore new business opportunities.

This report was approved by the Sustainability Committee under the Board of Modern Dairy in December 2024 and was published on the website of Modern Dairy for stakeholders to review. We are looking forward to further communication and discussion with all.

December 2024

Appendix

Endangered Wildlife Species and Nature Reserve List of Modern Dairy

Data Update Date: December 17, 2024

Modern Dairy conducts regular identification and monitoring of endangered wildlife species and nature reserve within a 10-kilometer radius of its sites (including all farms, pastures, and forage processing plants) every year. The monitoring is based on the IUCN Red List of Threatened Species (6), the Wild Animal Conservation Law of the People’s Republic of China, the National Key Protected Wild Animal List, and the list of beneficial or economically and scientifically valuable terrestrial wildlife species under national protection. The identified wildlife species are categorized as Critically Endangered (CR), Endangered (EN), Vulnerable (VU), and Class I and Class II Protected Animals. Modern Dairy updates the list of endangered wildlife species found around its operational sites in a timely manner and formulates targeted protection measures based on the ecological conditions of their habitats. Sensitive areas, wetlands, and other key environmental protection zones are reserved or developed to preserve local species at its sites. Additionally, on the premise of ensuring that our operations do not interfere with the healthy and orderly functioning of local ecosystems, we repair, protect, and improve the habitats and living conditions of wildlife species, thus contributing to the healthy development of the ecosystem.

Appendix 1: Wildlife Species List

No.	Species Name (Chinese)	Species Scientific Name	IUCN Red List Threat Level (7)	Wildlife Protection Law Protection Level (8)
1	草原雕	Aquila nipalensis	EN	Ⅰ
2	乌雕	Clanga clanga	VU	Ⅰ
3	长尾鸭	Clangula hyemalis	VU	NA
4	红头潜鸭	Aythya ferina	VU	NA
5	欧斑鸠	Streptopelia turtur	VU	NA
6	金雕	Aquila chrysaetos	NA	Ⅰ
7	黑鹳	Ciconia nigra	NA	Ⅰ
8	白琵鹭	Platalea leucorodia	NA	Ⅱ
9	灰鹤	Grus grus	NA	Ⅱ
10	斑头秋沙鸭	Mergellus albellus	NA	Ⅱ
11	普通鵟	Buteo japonicus	NA	Ⅱ
12	白尾鹞	Circus cyaneus	NA	Ⅱ
13	小天鹅	Cygnus columbianus	NA	Ⅱ
14	红隼	FaNAo tinnunculus	NA	Ⅱ
15	雀鹰	Accipiter nisus	NA	Ⅱ
16	红胁绣眼鸟	Zosterops erythropleurus	NA	Ⅱ
17	红嘴相思鸟	Leiothrix lutea	NA	Ⅱ
18	黑翅鸢	Elanus caeruleus	NA	Ⅱ
19	白腹鹞	Circus spilonotus	NA	Ⅱ
20	黑鸢	Milvus migrans	NA	Ⅱ
21	游隼	Falco peregrinus	NA	Ⅱ
22	纵纹腹小鸮	Athene noctua	NA	Ⅱ
23	棕尾鵟	Buteo rufinus	NA	Ⅱ
24	沙丘鹤	Grus canadensis	NA	Ⅱ
25	画眉	Garrulax canorus	NA	Ⅱ
26	凤头鹰	Accipiter trivirgatus	NA	Ⅱ
27	红脚隼	Falco amurensis	NA	Ⅱ
28	林雕	Ictinaetus malaiensis	NA	Ⅱ
29	日本松雀鹰	Accipiter gularis	NA	Ⅱ
30	赤腹鹰	Accipiter soloensis	NA	Ⅱ
31	松雀鹰	Accipiter virgatus	NA	Ⅱ
32	白腹隼雕	Aquila fasciata	NA	Ⅱ
33	灰脸鵟鹰	Butastur indicus	NA	Ⅱ
34	燕隼	Falco subbuteo	NA	Ⅱ
35	苍鹰	Accipiter gentilis	NA	Ⅱ
36	蛇雕	Spilornis cheela	NA	Ⅱ
37	凤头蜂鹰	Pernis ptilorhynchus	NA	Ⅱ
38	雕鸮	Bubo bubo	NA	Ⅱ
39	鹗	Pandion haliaetus	NA	Ⅱ
40	北朱雀	Carpodacus roseus	NA	Ⅱ
41	贺兰山岩鹨	Prunella koslowi	NA	Ⅱ
42	大鵟	Buteo hemilasius	NA	Ⅱ
43	鸳鸯	Aix galericulata	NA	Ⅱ
44	短耳鸮	Asio flammeus	NA	Ⅱ
45	长耳鸮	Asio otus	NA	Ⅱ
46	红交嘴雀	Loxia curvirostra	NA	Ⅱ

Appendix 2: Nature Reserve List

No.	Name of Sites	Name of Nature Reserve	Nature Reserve Level
1	Ningxia Fuminfeng Animal Husbandry Development Co., Ltd.	Ningxia Shapotou National Nature Reserve	National Level
2	Gegentala Farm	Inner Mongolia Tumuji National Nature Reserve	National Level
3	Modern Dairy (Wuzhong) Co., Ltd.	Ningxia Lingwu Baijitan National Nature Reserve	National Level
4	Ulan Buh Farm III (Front Banner)	Inner Mongolia Ulan Mountain Provincial Nature Reserve	Provincial Level
5	Modern Grassland Urad Front Banner Base	Inner Mongolia Wuliangsuhai Wetlands Waterfowl Provincial Nature Reserve	Provincial Level
6	Likang Selenium Farm	Hebei Huangyangtan Provincial Nature Reserve	Provincial Level

Appendix 3：List of Key Biodiversity Areas

No.	Name of Sites	Name of Key Biodiversity Areas
1	Ningxia Fuminfeng Animal Husbandry Development Co., Ltd.	Qingtongxia reservoir and Yellow River wetlands in Zhongning and Zhongwei Shapotou Nature Reserve
2	Modern Grassland Daqing Base	Lindian County Xinxing Horse Farm and Julang Farm
3	Daqing Farm I
4	Daqing Farm II
5	Modern Dairy (Wuzhong) Co., Ltd.	Yinchuan plain
6	Modern Grassland Urad Front Banner Base	Ulansuhai Nur Nature Reserve

1. A tool developed by the Shanshui Conservation Center and the Peking University Center of Nature and Society to assess biodiversity impacts.
2. Developed by the IBAT Alliance (including Bird Life International, Conservation International, IUCN, and UNEP-WCMC). It provides access to data from three major global biodiversity databases to assess the proximity between project sites and important conservation areas for endangered species.
3. The International Union for Conservation of Nature defines “Protected Area” as: “A clearly defined geographical space, recognized, dedicated, and managed through legal or other effective means, to achieve the long-term conservation of nature, with associated ecosystem services and cultural values.” “Key Biodiversity Areas” are regions that make a sustained and significant contribution to global biodiversity.
4. The ENCORE tool, developed by the Natural Capital Finance Alliance, is an online, interactive tool that assesses the biodiversity dependencies and impacts of various industries. It covers 167 sub-industries and 21 ecosystem services and is widely used for evaluating biodiversity-related risk exposures.
5. The BRF tool, developed by WWF, is an online tool that helps enterprises identify biodiversity-related risks in their operations, value chains, and investments, and take appropriate mitigation actions.
6. The International Union for Conservation of Nature (IUCN) is the world’s largest and oldest global non-profit environmental organization, as well as an international organization with permanent observer status at the United Nations General Assembly in the field of environmental conservation and sustainable development. The IUCN Red List of Threatened Species classifies species into nine different protection levels: Extinct (EX), Extinct in the Wild (EW), Critically Endangered (CR), Endangered (EN), Vulnerable (VU), Near Threatened (NT), Least Concern (LC), Data Deficient (DD), and Not Evaluated (NE).
7. “NA” in IUCN Red List Threat Level refers to species classified as “Least Concern (LC)” that are not categorized as CN (Critically Endangered), EN (Endangered), and VU (Vulnerable). These species are widely distributed and abundant, and due to their low level of endangerment, they are not specifically classified.
8. “NA” in Wildlife Protection Law Protection Level refers to species that are not categorized as Class I or Class II protected animals. These include terrestrial wildlife that is beneficial or of significant economic or scientific research value, but due to their low level of endangerment, they are not specifically classified under these categories.