Yili has established a Strategy and Sustainable Development Committee at the board level, which is composed of eight directors (including two independent directors), under the charge of Mr. Pan Gang, the Chairman and President of Yili. Apart from business development strategy, the Committee also focuses on researching and recommending sustainability strategic plans for Yili's long-term development. The Committee also oversees its sustainability strategy implementation across the company (including water resource management). The Sustainable Development Office is under Strategy and Sustainable Development Committee, which is responsible for the sustainability performance supervision and report to the Strategy and Sustainable Development Committee on a regular basis. The Safety Production Management Department of Yili is responsible for day-to-day management of water resources. The quarterly progress reports are submitted to the Sustainable Development Management Office for review and monitoring purposes.
In 2023, Yili Group was rated as 'B - Management Level' by the CDP Water Security, representing the international sustainability rating agency's recognition of Yili Group's effective water management in terms of governance structure, risk management, and actionable strategies.
Yili has implemented water management programs across all of its core operations. The Strategy and Sustainable Development Committee of the Board has set water reduction targets in order to monitor the progress and effectiveness of the water reduction programme.
| Target Categories | Target Details | Progress made in 2023 | Target Progress |
|---|---|---|---|
| Targets on water consumption reduction at operation | By 2025, the water consumption of production will be reduced by 3% compared with 2021. | Reduced by 5% | Achieved |
| By 2025, the water consumption per ton of product will be reduced by 3% compared with 2021. | Reduced by 4% | Achieved | |
| By 2025, the recycling rate of reclaimed water will be increased by 5% compared with 2021. | Increased by 5.77% | Achieved | |
| Targets on water consumption reduction at supply chain | Taking 2021 as the baseline year, the water consumption of core raw milk suppliers reduced to 900 tons per RMB million revenue by 2027. | Reduced to 1,077 tons per RMB million revenue, and the water consumption per ton of milk was reduced by 8.56% | In progress |
In 2022, Yili launched a water footprint project for both products and organization level. Based on the "ISO 14046 Environmental Management - Water Footprint - Principles, Requirements and Guidelines," the project involved certifying the water scarcity footprint by conducting a Life Cycle Assessment (LCA) for both the organization and its products. The project comprehensively assessed the water footprint throughout the entire product value chain's lifecycle and its impact on regional water resources, identifying opportunities for potential environmental improvement. By December 2023, a total of three products and five factories had conducted water footprint Assessment and obtained third-party certification.
AMBPOMIAL Flavored Yogurt (original flavor) 2.55 m³H₂O_eq/L
XINHUO Milk Powder for Senior 5.98 m³H₂O_eq/kg
Changqing Premium Protein Artisan Yogurt 4.2 m³H₂O_eq/kg
In 2024, Yili plans to establish a water footprint evalsuation platform compliant with the ISO 14046 standard to assess the water footprint of all products in 7 core product categories.
Water conservation at operation
Homogenizer Cooling Water Reduction Project
The cooling system for the homogenizer used in Yili's production plant is organized into three distinct stages. Each stage has its own separate cooling water supply, which makes it challenging to control the water flow. By connecting the water supplies together into a continuous series, the cooling water can then be recycled. This leads to a reduction of 4,380 tonnes in water consumption per homogenizer per year at Yili's production facility.
Steam Condensate Recycling Project
Yili has enhanced the reuse rate of recovered water and reduced the water consumption per ton of product by upgrading the steam condensate water recovery process and adding a replenishment procedure for cleaning acid and alkali tanks. This upgrade allows each relevant production workshop to save 1,650 tons of water annually.
Cleaning Water Recycling Project
Yili recycles the cleaning water used for supply tanks and pipelines in the production workshop, and the recovered water is then used for pre-rinsing of equipment and for evaporative cooling in cooling towers.Through this technological renovation, Yili has managed to reduce water consumption by 109,500 tons annually in its factories.
Water conservation at supply chain
Water Conservation Project at Raw Milk Suppliers
Yili has initiated a project to upgrade the sprinkler systems at its primary raw milk supplier farms. By employing radar capture systems and AI-based intelligent recognition technology, the farms can smartly manage the equipment in the sprinkler areas. Once this project is fully implemented, each farm can save over 50% of its water usage, significantly reducing water waste and greatly improving the efficiency of water resource utilization.
Water Conservation Project at Henan Feitian
Henan Feitian Biotechnology Co., Ltd. is one of China's largest corn and wheat processing companies and a key supplier for Yili. In 2022, Feitian actively participated in Yili's water resource management initiative within the supply chain. They successfully recycled condensate water generated from boilers and the evaporation of raw materials, leading to an annual water saving of more than 800,000 cubic meters.
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