Mengniuhassigned a Memorandum of Understanding (“MOU”) with the Alliance for Water Stewardship (“AWS”) during the Shanghai Sustainable Water Management Forum to enhance collaboration in facilitating AWS certification, promoting water conservation among consumers, standardizing sustainable water practices in the dairy industry, and establishing a benchmark for water management in China.

    AWS is a global collaborative network that includes businesses, NGOs, and public sector organizations. Members of AWS contribute to the sustainability of local water resources by adopting and promoting a universal framework for responsible water use– the International Water Stewardship Standard, or AWS Standard. The framework drives, recognizes, and rewards exemplary water management practices.

    Mengniu has been actively enhancing its water management initiatives in recent years. In 2020, the Company set a goal to achieve a 6% reduction in freshwater consumption per tonne of dairy product by 2025, compared to 2020. As of 2023, the Group has successfully reduced its water consumption per tonne of dairy product by 3.8% since 2020, resulting in annual water savings of 1,062,000 tonnes.

    Meanwhile,Mengniu has achieved a series of significant milestones in water resource conservation.

    Governance: Mengniu’s Sustainable Development Committee oversees its water resource management initiatives. Additionally, an Energy Conservation and Emissions ReductionWorking Group was established to monitor the progress of business units on both a monthly and annual basis.

    · Operations: Mengniu has implemented the WWF Water Risk Filter tool to create water risk and watershed maps aligned with operational needs, facilitating systematic water risk management. The Group’s water conservation strategy, encapsulated in the “3U Strategy” - “Save Use”, “Recycle Use” and “Common Use” – empowers each business unit to actively identify opportunities and enhance technological innovations to reduce water consumption.

    · Certification and Standards: Mengniu has contributed to the formulation of several national and industry water conservation standards. As a result, 27 of the Group’s entities have been recognized as water-saving enterprises. Notably, Mengniu was the first company in the domestic dairy industry to receive AWS water management certification for three of its facilities.

    · Water Footprint: Milk Deluxe (Dream Cap), an organic pure milk product, received the first Water Footprint Verification Statement for organic pure milk in China. Additionally, Mengniu’s Dangyang facility also earned the first Organization Water Footprint Verification Statement in China, with the factory serving as the verification boundary. 

    Building on their shared commitment to sustainable water management developed over the years, Mengniu views this strategic partnership as a pivotal opportunity to enhance its water resource management practices. By closely collaborating with AWS and leveraging the unique knowledge, experiences, and strengths of both organizations, Mengniu and AWS will promote the adoption and implementation of water conservation standards in China to drive the sustainable development of dairy industry both in China and overseas.