SSE 180 Index Constituent
2022
Meihua Holding Group Co., Ltd.
Environmental, Social and
Governance Report
Contents
About the Report 02 About Us 06
Chairman’s Message 04 Significant Recognitions in 2022 07
Our Sustainable Development Strategy 08
ESG Performance in 2022 10
01 ESG Governance 02 Leading Product
ESG Statement of the Board of Directors 14 Quality Management and Control 24
ESG Management 16 Work Safety 28
Stakeholder Engagement 18 R&D and Innovation 32
Business Ethics and Anti-corruption 20 Customer Service 33
03 Co-development 04 Addressing
with Employees Climate Change
Human Rights Protection 36 Governance 44
Employee Incentives 38 Strategy 45
Development Training Risk Management 46
40
Metrics and Targets 47
05 Green Factory 06 Win-win Cooperation
Environmental Management 52 Sustainable Supply Chain Management 62
Water Resources Management 53 Community Engagement 65
Waste Management 54
Recycling of Packaging Materials 58
GRI Index 66
Reader’s Feedback 70
About the Report
This is the first environmental, social and governance report released to the public by Meihua Holding Group Co., Ltd. It is a
faithful description of the Company’s operational, social, and environmental practices and performance in 2022 underpinned Notes on References Access
by the principles of objectivity, standardization, transparency, and comprehensiveness. It aims for effective communication
with stakeholders and systematic responses to their expectations and requirements. In this report, for the convenience of expression and read- The report is released in both print and online versions.
ing, Meihua Holding Group Co., Ltd. is referred to as “Mei- The online version in Chinese and English is available to
hua Group,”“Company,” and “we/us,” and its three be browsed and downloaded on the following websites:
subsidiaries, Tongliao Meihua Biological Technology Co., The official website of Meihua Group (www.meihuagrp.
Ltd., Xinjiang Meihua Amino Acid Co., Ltd., and Jilin Meihua com);
Boundary Preparation Basis Amino Acid Co., Ltd., as the “Tongliao Base,” the “Xinjiang
The website of the Shanghai Stock Exchange (www.sse.
Base,” and the “Jilin Base,” respectively. “Yuan” is the
com.cn).
This report covers the headquarters and all subsidiaries This report is prepared in accordance with the Notice of the unit of CNY unless otherwise specified.
of Meihua Holding Group Co., Ltd. unless otherwise speci- Shanghai Stock Exchange on Strengthening Listed Com- For any questions or suggestions, please send an e-mail
fied panies’ Assumption of Social Responsibility and Issuing to mhzqb@meihuagrp.com or call +86 0316-2359652.
the Guidelines on Listed Companies’ Environmental Infor-
Sources of Data mation Disclosure on the Shanghai Stock Exchange. It also
Cycle
refers to the IFRS S1 General Requirements for Disclosure
of Sustainability-related Financial Information (Exposure
Key financial data in this report are cited from the audit- This report is an annual report.
Draft) and the IFRS S2 Climate-related Disclosures (Exposure
ed Annual Report 2022 of Meihua Holding Group Co., Ltd.
Draft) published by the International Sustainability Stand-
Other data are cited from the Company’s internal docu-
ards Board (ISSB). The information cited in this report’s
ments and relevant statistics.
index was reported from January 1, 2022, to December 31,
2022, in accordance with the Global Reporting Initiative (GRI)
Period Covered Standards.
From January 1, 2022, to December 31, 2022. Part of the
report appropriately traces back to historical data.
04 05
Environmental, Social and Governance Report 2022
Chairman's Message
Meihua Group has transformed from a start-up in the mon- cesses and technology for the entire industry chain, with I am fully aware that the Company's growth is dependent
osodium glutamate (MSG) industry with a base in Hebei to a the goal of increasing energy efficiency and lowering on the tireless struggle and hard work of all employees.
global leader in amino acid nutrition and health solutions, resource consumption. We use innovation to advance the They enable the company to excel in its social responsibil-
from a single product structure to a comprehensive and di- circular economy, benefit China's agriculture, and blaze a ity. I always believe that only by providing employees with
versified industrial presence. The spectacularly high-speed new path to develop biotechnology. a broad development vision, a vast development platform,
development has demonstrated the company's great pro- and a work-life balance will we be able to achieve a brighter
gress in the past twenty years. To respond to the changes in In order to pursue high-quality development, we bolster our future for both employees and the company. We believe in
the market pattern along the way, we have carried forward comparative advantages. We are industry leaders in terms “associating by honesty; improving by attitude; thriving by
the spirit of "being indignant and innovative" and "making of product quality, operational support abilities, and man- integrity; and lasting by unity and harmony.” We adequate-
trailblazing efforts with perseverance" to stay committed ufacturing capabilities. We improved our quality manage- ly protect employees’ rights and interests and address their
to development and seek innovation and changes. We are ment program in 2022 and actively encouraged the adop- concerns and problems with the utmost care, guided by the
dedicated to our goal and original aspiration of building a tion of a multi-level quality management program. With the Meihua spirit.
century-old brand. help of science-based management techniques, we have
enhanced each quality inspection stage and given specific As a responsible business, Meihua Group is always mindful
We hope to establish a clear and science-based path of positions and quality responsibilities. Additionally, we have of its mission to give back to society and assist the under-
sustainable development with insight into the industry's increased the supplier admission threshold, tightened the privileged while improving economic benefits. We care
trends. This was our original goal in publishing this ESG identification of raw material risks, and accomplished the about the people and give back to society. We have gath-
report. Only by looking back can we see where we started, management objectives of fully traceable and controllable ered internal and external resources to form the Tibet Mei-
and only by looking forward can we know where the road sources of materials. hua Public Welfare Foundation. We are constantly working
will take us. on rural revitalization, charity donations, community build-
We have fully supported the state’s strategic goals of car- ing, and COVID-19 prevention. Meihua Group donated 4.32
We are focusing on biotechnology in order to create a bon peaking and carbon neutrality over the last year. We million yuan to public welfare in 2022, which people from In the future, Meihua Group will continue its
better future. Our path to sustainable development be- identified and analyzed climate change-related risks and all walks of life acknowledged. efforts in developing the great cause of amino
gins with synthetic biotechnology. We are pragmatic and established medium- and long-term greenhouse gas (GHG) acids and join hands with stakeholders to ful-
always driven by innovation in the face of increasing in- emission targets under a commitment to researching and I'd like to express my heartfelt appreciation to all of our fill social responsibility. We will adhere to the
dustry competition. We are proactively looking for new promoting low-carbon operations in our manufacturing and partners, shareholders, managers, and employees for circular economy and sustainable develop-
growth drivers, such as expanding our footprint into the operations. At the same time, we put the concept of green their faith, understanding, and support. Meihua Group will ment, rise to challenges, and strive for success
general area of amino acids and pursuing leapfrog devel- development into practice. We vigorously progressed waste continue its efforts in the great cause of amino acids in the and more splendid glory in the trend of the
opment in the area of new biotechnology. We invested management, pollution prevention, and water and pack- future. We will work together with all stakeholders to fulfill times.
829 million yuan in research and development (R&D) aging material recycling. We fulfilled our environmental social responsibility while adhering to the circular economy
and maintained an R&D workforce of 304 people in 2022. responsibilities as corporate citizens and created a green and sustainable development. We will rise to challenges
Furthermore, we established a production technology brand in every way. and strive for success and accomplishments in the current
research institute to conduct in-depth research on pro- trend.
Wang Aijun
Chairman of Meihua Holding Group Co., Ltd.
March 2023
06 07
Environmental, Social and Governance Report 2022
About Us Significant Recognitions in 2022
Meihua Group is a full-chain synthetic biology company main- We leverage synthetic biotechnology and give full play to
ly engaged in amino acid products. Its core competence covers our experience and advantages in industrialization. With a
all segments from strain design, construction, fermentation, comprehensive array of research, production, supply, and
separation, and extraction, to products. Through 20 years of sales services, we adaptably address the diverse needs of
surpass and innovation, the Company stands at the forefront worldwide customers and their pursuit of rapid innovation.
of the industry in the integration of research, production, We are committed to becoming a global leader in synthetic
and sales, and is one of the world’s largest amino acid man- biology. In 2022, our operating income reached 27.937 bil-
ufacturers. It boasts the industry’s most advanced integrated lion yuan with a net profit of 4.406 billion yuan. Our feature
production line for comprehensive utilization of resources. products are as follows. Top 100 Science ＆ Top 200 Enterpris- Top 10 Enterprises
Meihua Group has three production bases in Inner Mongolia’s Technology Enter- es in China Light in China Fermen-
Tongliao, Xinjiang’s Wujiaqu, and Jilin’s Baicheng, and two prises in China Light Industry tation Industry
R&D centers in Langfang and Shanghai. Industry
China National Light China National Light China National Light
Industry Council Industry Council Industry Council
Amino acid Taste optimiza- Pharmaceutical Colloidal Other products
products for tion productsa amino acids for polysaccharide
animal nutrition for food human
Lysine, threonine, MSG, disodium 5'-ri- Glutamine, proline, Xanthan gum, tre- Bioorganic
tryptophane, feed- bonucleotide, glu- leucine, isoleucine, halose, pullulan, oil fertilizers, etc.
grade valine, resi- tamate acid, mono- pharmaceutical-grade drilling grade xan-
due of MSG, starch sodium glutamate, valine, inosine, than gum, etc. Leading Enterprise in Energy Conser-
High and New Technol-
byproduct-based disodium inosinate, guanosine, adenosine, Top 50 Enterprises in vation and Environmental Protection
ogy Enterprise
feed fiber, corn food-grade xanthan pullulan, Vitamin B2, China Food Industry in the Chinese Biotech Fermentation
germs, microbial gum, trehalose, na- etc. Industry
protein, etc. tamycin, etc. China National Light China Biotech Fermentation Following the Xinjiang Base and the
Industry Council Industry Association (CBFIA) Tongliao Base, Jilin Meihua passed the
High and New Technology Enterprise
certification in December 2021
Our Focus： Our Driving Forces：
Our Mission Our Strategic Goal
Focus on the high-quality growth of the Leading technology and leading
main business and become a leader in Become a global management
Develop recycling economy, benefit Chinese Committed to becoming a leading enterprise
leader in synthetic
agriculture in synthetic biology synthetic biology
biology Rely on the core competitiveness built with
Pursue sustained profitability growth in- technology and management instead of a
stead of blind capacity expansion large scale, single element, low costs, or
individual experience
An industry leader with the strongest core
competitiveness
Our Core Values Our Vision
Associating by honesty; improving by attitude; Focusing on biotechnology, building and shar- Our Persistence：
thriving by integrity; lasting by unity and harmony ing better future We insist on creating and sharing We insist on customer-centricity We insist on integrity
The organic combination of corporate Market-oriented service awareness and the awareness Adhering to a holistic perspective
development and personal interests of internal-external and upstream-downstream for the long term
08 09
Environmental, Social and Governance Report 2022
Our Sustainable Development Strategy
We have combined ESG into our vision of “focusing on biotechnology, building and sharing better future”. We analyze the Our Sustainable Development Goal
external environment and context, sectoral needs, peer benchmarking, stakeholders’ appeals, and the Company’s strategic
development needs to gain insight into four strategic aspects: the focus, the goals, the path, and the needs. Based on our find-
ings and the United Nations Sustainable Development Goals (SDGs), we have developed our ESG strategy of GROWTH. We draw the resources we need from the nature. By developing synthetic biotechnology, we produce a variety
of amino acid products to ensure people’s healthy life and promote human’s sustainable development. We
The GROWTH strategy aims for “developing synthetic biotechnology, nourishing people and the environment, and making a hope that everyone will care more about the environment, improve the environment, and achieve harmonious
harmonious future” and relies on four pillars: Green, Responsible, Low-carbon, and Healthy. It is fully integrated with all sus- co-existence.
tainable development topics that the Company’s stakeholders and the society are concerned about.
Our Sustainable Development Pillars
On the road to a harmonious future between human beings and the environment, we need to carry out specif-
ic and effective actions to ensure the realization of Meihua Group’s ultimate goal:
The Green action route is our principle, which ensures that we minimize our impact on the natural environ-
Sustainable Development Goals ment and is the foundation of our development.
Develop synthetic biotechnology, nourish people and
the environment, and make a harmonious future The Responsible action route is our foundation, which ensures that the trust between us and stakeholders
continues to go deeper and is the premise for us to work together.
Environment People
The Low-carbon action route is our direction, which ensures that we stay calm in the face of climate change,
our most prominent risk, and is the guarantee for us to clear the obstacles in the future.
Sustainable Development Pillars The Healthy action route is our main battlefield, which ensures that we can maximize the influence of the Mei-
hua Group and is the core of our sustainable development for human.
Contribute to building a green, responsible, low-carbon,
and healthy world
Green Healthy We take internal and external perspectives. Internally, we aim higher to the best of our ability. Externally, we
extend the value chain and promote the sustainable development of the industry and society through collabo-
Responsible Low-carbon
ration to achieve the best action results.
Saving water Realizing nutrition
Green packag accessibility
ing materials Persistence with
Protecting Clean energy
purchase innovation
External Impact human rights
Business ethics Products’
carbon footprint
Internal Action
Reducing waste
Occupational Reducing energy
Product quality Our Sustainable Development Foundation
Improving the and safety
health and safety consumption
resource Emphasis on
Sustainable Climate action
utilization rate intellectual
supply chain
property rights
Synthetic biotechnology is the starting point of Meihua Group and our sustainable development actions. The
cause of sustainable development requires the joint efforts of stakeholders. In the process, we hope to convey
the concept of sustainable development to everyone.
Sustainable Development Foundation
Join hands with stakeholders to maximize the
value of synthetic biotechnology
Industry
Employees partners
Govern-
Customers Research
Commu- ment Share-
Suppliers
nities depart- holders
institutes Based on the sustainable development pillars of Green, Responsible, Low-carbon, and Healthy, we have developed a specific
ments sustainable development action plan. We will set measurable sustainable development goals and continue to steadily ad-
vance the Company’s sustainable development undertakings under our ESG governance system.
Synthetic Biotechnology
10 11
Environmental, Social and Governance Report 2022
ESG Performance in 2022
ESG Governance Addressing Climate Change
A development strategy set for addressing Leading the setting of the organization standard Require-
Litigation case involving corruption Business ethics and anti-corruption
0 0
climate change and reducing greenhouse ments for greenhouse gases emission accounting and
concluded incident reported gas emissions from 2020 to 2025 reporting Biotech fermentation manufacturing enterprises
proposed by CBFIA
62 suppliers engaged in climate action
Renewable energy consumption
43,731,262 kWh
Leading Product Green Factories
100 % of the production Work-related employee Authorized invention patents Achieving full coverage of the ISO The MSG workshop and refining workshop of the Tongliao
fatality 0 27 14001 system certification, with a Base reduced water consumption per unit by
bases have passed the ISO
9001 quality management
certification rate of 100 % 67 % and 74 % respectively
system and ISO 22000 food
safety management system All hazardous chemicals have Newly-filed patent applications The closed-loop recycled utiliza- The total weight of packaging materials is expected to
certifications
12 tion rate of some water resources
234 metric tons by the end of 2023
93 %
been filed for management be reduced by
being over
Products’ ex-factory pass rate R&D investment Customer satisfaction The Tongliao Base achieved 100 % After two years of weight reduction efforts, the weight of
100 % 226 million yuan 94.27 % packaging materials was reduced by an average of
716 metric tons per year, and an average of
comprehensive utilization of amino acid
activated carbon
981 metric tons of materials were recycled every year
Co-development with Employees Win-win Cooperation
Coverage of human rights Total training hours of employee 100 % products made of raw 1,744 hours spent in participating in community
1,969,451hours
Human rights violation
0
assessments for employees materials that can be traced back to
75.5 %
charity campaigns such as students’ aid and environ-
the place of origin
mental protection
Proportion of women among
763 suppliers having gone through Donated to public welfare
4,320,323 yuan
Overall employee satisfaction score Average training hours per employee
3.5 151.31hours
senior executives
40 %
ESG assessments
Proportion of employees that received
training 98.28 %
01 As part of our goal to become a world-leading amino acid enterprise, we proactively incorporate
ESG into the Company’s development strategy. We strive to achieve economic, social, and en-
vironmental sustainability in growing our business. We continuously optimize and improve our
ESG management system and pay attention to stakeholders’ opinions and needs. We are dedi-
cated to mitigating the environmental and social impact of our bio-fermentation and bio-phar-
maceutical business while advancing the long-term sustainable development of the Company.
Stakeholder
Engagement
14 15
Environmental, Social and Governance Report 2022 ESG Governance Leading Product Co-development Addressing Green Factory Win-win Cooperation
with Employees Climate Change
ESG Statement of the Board of Directors
As the highest decision-making body of ESG, the results at the Strategy Committee of the
the Strategic Development Committee of Board of Directors to determine the ESG materi-
Meihua Group’s Board of Directors war- the Board of Directors bears the ultimate re- ality matrix for the year.
sponsibility for Meihua Group’s ESG strategies
rants that the Company and its Board and disclosure. The Strategic Development In 2022, we actively responded to the state’s
goals of carbon peaking and carbon neutrality
of Directors continuously improves the Committee oversees and reviews the Com-
by establishing a governance structure to ad-
pany’s sustainable development progress and
Company’s Environmental, Social and offers recommendations. To ensure the exe- dress climate change and set a climate risk
management and control process. Based on our
Corporate Governance (ESG) manage- cution and implementation of day-to-day ESG
situation, we identified and assessed the key
management, the Company has established
ment system in accordance with the China an ESG Leadership Group. Authorized by the climate-related risks of Meihua Group, and de-
veloped corresponding management objectives
Securities Regulatory Commission’s Code Strategic Development Committee of the
and countermeasures.
Board of Directors, the ESG Leadership Group
of Corporate Governance of Listed Compa- progresses the Company’s ESG undertakings This report discloses in detail and truthfully the
nies and the SSE’s mandates. The Board as a whole and regularly reports to the Board progress and effects of Meihua Group’s ESG ef-
of Directors. Moreover, the Company has
of Directors will devote greater attention established a Sustainable Development Office.
forts in 2022, and was deliberated and adopted
by the Board of Directors on March 6, 2023.
to overseeing and engaging in the Compa- As a department dedicated to the management
of ESG affairs, it communicates between and co-
ny’s ESG affairs and proactively integrate ordinates functional departments and facilitates
ESG into the Company’s development strat- the steady execution of ESG undertakings.
egy, major decisions, and production opera- We prioritize determining material ESG topics
and the communication and exchanges of ideas
tions. with stakeholders. We regularly identify and as-
sess material ESG topics, and discuss and review
Board of Directors, Meihua Holding Group Co., Ltd.
16 17
Environmental, Social and Governance Report 2022 ESG Governance Leading Product Co-development Addressing Green Factory Win-win Cooperation
with Employees Climate Change
ESG Management
pany’s ESG strategies, we have developed the Environmental, key details of the Company’s ESG management, supporting
Social and Governance (ESG) Management Measures of Mei- the Company’s continued development of ESG manage-
hua Holding Group Co., Ltd . This policy is designed to build an ment.
efficient ESG management system with a complete organiza-
tional structure, a clear hierarchy, and well-defined rights and The Company’s ESG management framework provides man-
We insist on corporate governance compliance and efficien- responsibilities, and work procedures of the General Meet- responsibilities. To integrate ESG management into the Com- agement support to further improve our ESG effectiveness.
cy, continuously raise the Company’s value and responsi- ing of Shareholders, the Board of Directors, the Board of pany’s business management and improve ESG management Meanwhile, based on the Company’s ESG strategy, we have
bility, and protect shareholders’ interests and rights. We Supervisors, and management members. They improve the at the source, the Company’s ESG management structure is broken down the Company’s ESG action goals and content
strictly abide by the Company Law of the People’s Republic operational efficiency of the Board of Directors and ensure a two-tier management structure consisting of the Strategic and developed the Environmental, Social and Governance
of China , the Securities Law of the People’s Republic of Chi- that investors have equal access to corporate information. Committee of the Board of Directors and the ESG Leadership (ESG) Management Improvement Plan of Meihua Holding
na , the Code of Corporate Governance of Listed Companies , During the reporting period, we held one General Meeting Group, including the ESG Leadership Group of the Compa- Group Co., Ltd. (2022-2025) . The plan is designed to com-
and other applicable laws and regulations. We have developed of Shareholders, eight meetings of the Board of Directors, ny’s headquarters and production sites. Additionally, we prehensively standardize the guiding philosophy, basic
the General Meeting of Stockholders Rules of Procedure , the and five meetings of the Board of Supervisors. have established the Sustainable Development Office which principles, and advancement approaches for the Compa-
Board of Directors Rules of Procedure , the Board of Super- serves as a dedicated department for ESG management. In ny’s ESG purposes and facilitate system and process-based
visors Rules of Procedure , and the Independent Director To further improve the Company’s ESG management effi- the same year, we released the ESG Indicator Management management of ESG matters.
Working System . These internal systems define the roles, ciency and practically implement and progress the Com- System of Meihua Holding Group Co., Ltd. , summarizing the
Meihua Group’s ESG management structure
Levels of the ESG management structure
Board of Directors Board of Supervisors
Strategy Committee of the Board of Directors
Governance Layer
It is the highest body and decision-maker for the Company’s ESG matters.
Audit Committee
Remuneration
and Appraisal
Its main responsibilities include investigating and reviewing the Company’s en-
Nomination
Committee
Committee
Committee
Strategy
vironmental, social and corporate governance work and raising suggestions and
opinions.
Authorizing Reporting ESG Leadership Group
It is the executive level for the Company’s ESG matters. It is led by the Company’s Gener-
al Manager and composed of relevant departments’ heads and production bases’ general
ESG Leadership Group
managers and ESG coordinators.
Management and Executive Level
Sustainable Development Office Its main responsibilities include advancing the Company’s overall ESG affairs; coordinat-
Coordinating Communicating Authorizing ing the annual ESG work plan; guiding, overseeing, and coordinating internal and exter-
nal ESG resources; and reporting regularly to the Board of Directors with suggestions.
Headquarters’ ESG Base Company’s ESG
Leadership Group Leadership Group
Sustainable Development Office
HSE Produc-
Manage- tion Tech-
Human
R&D
Engi- Admin-
Audit
Management
Finance Tongliao Jilin It is a dedicated department for managing the Company’s ESG affairs and a permanent
Re- neering istration Office of the
ment nology Compa- Depart- Depart- Company Company liaison and coordination body for the Company’s ESG works.
sources Depart- Depart- Business
Depart- Research nies ment ment
Depart- ment ment Department
ment Institute
ment
Its main responsibilities include organizing the Company’s day-to-day ESG management
tasks, communicating with and coordinating functional departments, and ensuring the
Procure-
Securities
General
Quality
Oper- IT Man- steady progress of ESG works.
ment Man- Sales Compa- ation Logistics agement Xinjiang
Depart- Depart-
Depart- ager’s nies Depart- Department Depart- Company
ment ment
ment Office ment ment
18 19
Environmental, Social and Governance Report 2022 ESG Governance Leading Product Co-development Addressing Green Factory Win-win Cooperation
with Employees Climate Change
Stakeholder Engagement Topics of high importance
In 2022, we carried out our first systematic communication with stakeholders to better
1 Work safety
understand their concerns, expectations, and demands for the Company’s sustainable
2 Human rights protection development. Through peer benchmarking and media monitoring, we identified several
Through constructive stakeholder engagement, a company can ensure its ESG works meet the needs of the actual develop-
material topics and collected internal and external information through questionnaire
ments. As a result of paying close attention to stakeholders’ needs and suggestions, improving the diversified dialogue mech- Employee promotion and
3 surveys and stakeholder research. Based on the survey results and considering the
anism, and accepting their supervision, we have been able to achieve sustainable, high-quality, and high-standard develop- development
importance of each topic to business development, we comprehensively assessed and
ment. Through online and offline channels, we communicate with stakeholders and listen to their demands and expectations Customer communication
4 prioritized the topics and determined the focus of the Company’s internal and external
to accurately assess the impact of our decisions and promptly adjust our strategic focus. and complaints
ESG management in the future.
Business compliance and
5
stability
In this survey, we collected 1,110 questionnaires. Based on stakeholders’ concerns, ex-
Stakeholder Expectations and requirements Communication means and responses Comprehensive risk man-
6 pectations, and demands for the Company’s ESG works, we identified and evaluated 29
agement
high-importance, 25 medium-importance, and 5 low-importance material topics of the
7 Waste management year. Based on the survey results, we will adjust our ESG focus promptly and continu-
Observing the law and paying taxes ac- Compliance management Water conservation initia- ously improve our ESG performance to meet stakeholders’ expectations and respond to
Governments and 8
cording to the law Paying taxes tives potential risks. This form of stakeholder engagement will also be held regularly.
regulators
Supporting social sustainability Proactively implementing national policies Talent attraction and mo-
9
tivation
Dangerous goods/chemi- Meihua Group’s matrix of ESG materiality for 2022
10
cal management
Returns and growth Regular disclosure of business information Environmental topics Social topics Governance topics
Shareholders and 11 Employee satisfaction
Risk control General Meetings, reports, and announcements
investors Protection of intellectual
Corporate governance Proactively rewarding shareholders Medium-importance material topics High-importance material topics
12
property rights
13 Contractors’ work safety
Work safety
Dangerous
goods/chemical
Wages and benefits, security Paying wages and social security on time
Talent attraction
management
and motivation
Employee
Product inspection Human rights
14 Product quality training
satisfaction Occupational
Health and safety Establishing an occupational health and safety
protection health and safety
Employee
promotion and Product quality and safety
Supplier quality management Information security
Employees Unblocked communication management system
development
Protection of intellectual property rights Employee training
15 Patent management
R&D and innovation Customer communication
Equal promotion and development Improving career development channels
and complaints
Business compliance and stability Engaging in setting industry
Occupational health and
quality standards
opportunities Organizing employee training
16
Contractors’work safety
Comprehensive risk
safety
management Business ethics Customer satisfaction
Product quality training
Anti-money
Importance to stakeholders
Patent Pollutant management
17 Product inspection
laundering management Customer privacy
Water conservation initiatives Waste management
High-quality products Need/satisfaction surveys
Fair competition Anti-corruption Sustainable raw material procurement
Transparent
procurement Supplier quality training
Customers Satisfactory customer experience Customer complaint handling 18 Employee training
Sustainable supply chain management
Product recall Supply chainESG risk management
Protection of legal rights and interests Annual reviews and evaluation
Stakeholders communication Social welfare
Water resources risks
19 R&D and innovation
Carbon emission Water resources
Low carbon-related reduction targets Green packaging
external initiative
materials
Climate change Low-carbon operation
20 Customer satisfaction
governance Renewable
energy use
Product carbon Climate change Green procurement
Performing contracts according to the law
footprint governance Construction of
Suppliers, Faithfulness in business 21 Customer privacy
environmental
management system
Open tendering
contractors, Industry cooperation
Project-based collaboration 22 Anti-corruption
ESG risk Improvement of employees’ ESG awareness
and partners Open, fair, and impartial procurement
management Supplier empowerment
Driving the healthy development of the industry Diversity of the
23 Product quality and safety
Board of Directors Transgenic products
Biodiversity conservation
24 Information security ESG participation of the
Economic performance
Board of Directors
Supplier quality manage-
Employee volunteer management
Media Media inspection to projects 25
Pollutant discharge ment Compliance disclosure
Engaging in setting indus-
26 Low-importance material topics
try quality standards
Support for social development
27 Business ethics Importance to Meihua Group
Care for vulnerable groups Public welfare and charity
Communities and
Healthy culture Green production 28 Pollutant management
the public
Energy conservation and emission Green buildings and materials
reduction Sustainable raw material
29
procurement
20 21
Environmental, Social and Governance Report 2022 ESG Governance Leading Product Co-development Addressing Green Factory Win-win Cooperation
with Employees Climate Change
Business Ethics and Anti-corruption
We are committed to creating a positive culture of honesty and integrity. With a philosophy that emphasizes virtue in corpo-
rate governance and training. We have developed stringent codes of business ethics and internal supervision and handling
Whistleblower Protection
procedures, improved our compliance performance, and steadily improved our corporate business ethics and anti-corruption
management.
We have developed the Whistleblowing and Whistleblower ters, take corresponding punishment and control measures,
Protection Management System of Meihua Holding Group and publicize the results.
Co., Ltd . This policy sets out whistleblowing channels, han-
The Business Ethics and Anti-corruption Management System dling procedures, and whistleblower protection measures, We uphold the legitimate rights and interests of whistleblow-
with the intention of protecting stakeholders’ whistleblow- ers and their family members by defending their personal,
ing rights. Whistleblowers may report any violation of the property, reputational, and other rights. In addition, we com-
policy to the Audit Department with evidence in the form mend and reward those who submit valuable information.
We protect our rights and interests in strict accordance with manifestations, such as“bribing state functionaries,”“accept- of written materials, emails, and telephone calls, but such Those who violated a whistleblower’s rights and interests will
the Criminal Law of the People’s Republic of China , the An- ing property from third parties in violation of the law,”“using evidence must not be fabricated or framed. We have estab- be held accountable or turned over to the judicial authorities.
ti-Unfair Competition Law of the People’s Republic of China , power to seek benefits for relatives or people with particular lished a sound internal investigation mechanism. We will In 2022, the Company was not involved in any business ethics
the Company Law of the People’s Republic of China , and relationships,”and“infringing upon or disclosing trade se- initiate a comprehensive investigation of the reported mat- or anti-corruption whistleblowing incidents.
other applicable laws and regulations. We have established crets” are well defined. We have established a comprehensive
a sound anti-corruption governance structure, with special anti-corruption and internal control mechanism. At the busi-
committees of the Board of Directors or the senior manage- ness level, we identify and assess corruption risks and conduct
ment supervising anti-corruption, the Audit Department regular anti-corruption audits for high-risk businesses to re-
managing anti-corruption affairs, and business departments duce the possibility of corruption incidents.
implementing anti-corruption tasks. We have developed the
Anti-corruption Management Measures of Meihua Holding Employees who violate anti-corruption rules and regulations
Group Co., Ltd . This policy defines integrity and law-abiding will be subjected to corresponding internal financial and
conducts for all employees of the headquarters, produc- administrative disciplinary punishments, and those who are
tion bases, and subsidiaries, and sets out anti-corruption suspected of violating the law will be turned over to the judi-
management measures, prevention mechanisms, whistle- cial authorities. In 2022, we prevented and controlled bribery
blowing channels, and investigation procedures. As a result, and other unfair business practices, and the Company was not
business ethics and anti-corruption can be implemented in involved in any corruption-related lawsuits.
every aspect.
The terms“business ethics”and“anti-corruption”and their
02 Leading Product As a global leader in providing amino acid nutrition and health solutions, we are
committed to the vision of " focusing on b iotechnology, b uilding and sharing
better future" . We contribute to the global food health industry by providing
health products and solutions in more than 100 countries and regions. We extend
throughout the industrial chain of the deep processing of agricultural products
and utilize biological fermentation technology. We continuously optimize our
industrial structure and layout and improve our product lifecycle management.
We strengthen the assurance of product quality and safety, enhance our product
R&D and innovation capabilities, and put eorts into providing high-quality prod-
ucts for customers.
Quality Management 24 R&D and Innovation 32
and Control
Work Safety 28 Customer Service 33
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Quality Management and Control
Setting the social organization standard for isoleucine
One of the fundamental components of a business, a key factor in customer trust, and a necessity for a company’s survival is
quality. We adhere to process management and control over quality, improve our comprehensive ability and performance of
In 2022, we worked with associations, enterprises, and universities in setting the social organization standards of China
quality management in every aspect, and promote a quality culture to make safer and more reliable high-quality products.
Feed Industry Association and released and implemented the social organization standard for the feed additive L-isoleu-
cine. The standard stipulates the technical requirements, sampling, test methods, and inspection rules of L-isoleucine,
and specifies its labeling, packaging, transportation, storage, and shelf life. It improves product safety and boosts the
The Quality Management System continuous quality improvement of China’s feed additives.
We have established a sound quality management system and
Our Product Quality Target
a multi-level governance structure, with the Company’s General
Manager responsible for reviews and oversight; the Production
The Quality Management and Control Mechanism
Technology Research Institute responsible for coordination; Products’ ex-factory pass
the Quality Department responsible for efficient collaboration; rate maintained at
Our quality standards are stringent and we control product management roles and responsibilities and management
and the Technical Management Office of each production base
100
quality at every stage of the production and manufacturing standards and regulates the process control, cause analy-
responsible for implementation. We set precise and explicit
process to ensure that it meets the standards. We have de- sis, and emergency treatment of unqualified products. It is
product quality targets and revise them annually to meet the %
veloped the Product Testing Instruction s, a product-specific designed to minimize risks associated with product quality
Company’s commitment to product quality. In addition, we
guideline which sets out testing items, pharmaceutical re- and determine the primary accountability of products. In
continuously carry out quality control and improvement.
agents, analysis steps, presentation methods, and regulate 2022, our products’ ex-factory pass rate was 100%.
testing methods for different products to ensure that they
Product quality certifications obtained by Meihua Group: meet the quality standards. We conduct internal inspec- Quality management requires the participation of all em-
tions on all products regularly. We also develop annual ployees. We attach great importance to creating a quality
product inspection plans and submit product samples to culture and hosting diversified training events on quality
national authorities for inspection. As a result, the quality to comprehensively improve employees’ skills and perfor-
The ISO 9001 Quality Management The ISO 22000 Food Safety Manage- The Feed Additive and Premixture
and safety of our products in storage, out of the factory, and mance. In 2022, we delivered 21,420 hours of quality train-
System ment System System (FAMI-QS) of the EU
in delivery are ensured. In addition, we have developed the ing to 720 quality management employees of the Company.
Unqualified Product Control System . This policy defines
The MUI Halal Certificate of Indonesia The BRC Food Safety Management Halal certifications of the U.S., Malay-
System sia, and other countries
Non-GMO Identity Preservation (IP)
We strictly abide by the Product Quality Law of the People’s In addition to strict self-quality control, we aspire to be part
Republic of China, the Food Safety Law of the People’s Repub- of the industry’s quality improvement. With an open mind,
lic of China, the Regulation on the Administration of Feeds and we are prepared to collaborate and exchange cutting-edge
Feed Additives , and other applicable laws and regulations. information and expertise with peer companies in order to
Based on national standards in relation to our products, the create a positive industrial ecosystem. We are a member of
GB/T 19001 Quality Management Systems-Requirements, the the Technical Committee 64 on Food Industry of Standardi-
ISO 22000 Food Safety Management System, and the BRCGS zation Administration of China and the SC5 on Fermentation
Global Standard for Food Safety, we have developed the Prod- Industries, China Biotech Fermentation Industry Association
uct Quality Standards, the Product Testing Guidelines, and the (CBFIA), and other industry associations. We have partici-
Integrated Quality Management Manual . These internal sys- pated in setting many national standards and social organi-
tems regulate the standardization of processes and the manage- zation standards and contributed to the development of the
ment of quality. We continuously work on quality certification. All amino acid industry.
of our production bases have passed the ISO 9001 Quality Man-
agement System and the ISO 22000 Food Safety Management
System certifications.
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Supplier Quality Management
The quality month
As an integral part of quality management, raw materials industrial chain. As of December 31, 2022, 17% of our sup-
In September 2022, to achieve the Company’s quality strategy and annual goals, we launched the Quality Month cam- and auxiliary materials have a direct impact on product pliers had passed HACCP, ISO 22000, FSSC 22000, and ISO
paign with the theme of “reducing waste, improving management, creating and enjoying high quality”. All produc- quality, food safety, and customer satisfaction. We have 9001, among other product quality-related certifications.
tion bases responded to the call and carried out a variety of quality events around this theme to enhance employees’ developed the Supplier Quality Management Manual to
quality awareness. The Xinjiang Base hosted an Appearance Competition, in which contestants selected samples with regulate the selection, classification, supervision, and eval- We identify and assess the product risks associated with
appearance defects, and a Foreign Object Inspection Drill, in which contesting teams searched scissors placed in ad- uation of suppliers. This policy aims to steadily raise the raw and auxiliary materials. In addition to scoring the ma-
vance in the products. These entertaining events taught employees to avoid product quality problems and accidents. product quality of our suppliers and maintain a long-lasting terials’ usage, applied procedures, food safety impact, and
and stable strategic partnership. other factors, we perform class-based management based
on the results and the Risk Rating Result Table . In addition,
We continuously raise the threshold for supplier admission. we have introduced risk-specific management measures.
We evaluate the credentials and certificates of our suppliers For example, Raw and auxiliary materials with significant
through on-site evaluations and questionnaires during the impact on product quality and food safety are monitored
selection process. Suppliers of food-grade, pharmaceuti- intensively, while low-risk products are monitored regularly.
cal-grade, and feed-grade materials must pass ISO 9001, ISO As a result, product risks are controlled.
22000, GMP for pharmaceutical products, and other relevant
certifications. As a result, we have improved the quality of our
Classification of Meihua Group’s main raw and auxiliary materials in use (part)
Class Raw and axiliary materials
Meihua Group’s quality month Sulfuric acid, hydrochloric acid, liquid caustic soda, alcohol, defoamer, activated
Class A (major risk)
carbon, soybean powder, and ammonium sulfate
Fermentation ingredients, soy sauce auxiliary materials, sodium hypochlorite, acid
Class B (high risk)
hydrolyzed plant protein powder, corn steep powder, and liquid caustic soda
Product Recall
Sodium carbonate, betaine hydrochloride, disodium succinate, cellulase, perlite fil-
Class C (medium risk)
ter aid, and caustic soda
We have developed the Product Recall Procedures and oth- recalls, both of which were handled immediately and prop-
er emergency rules and regulations. We have established erly, with all products concerned recalled.
a sound product recall mechanism with a clear classifica-
tion of recalled products, the recall process, and corrective Moreover, we conduct regular product recall drills at our Class D (low risk) Water treatment agents, process aids, and disinfectants
measures to ensure a rapid response to unsafe products. In production bases every year. By simulating recall incidents
the event of product quality defects and products with po- and analyzing and checking products, we ensure that risky
tential safety hazards, we will immediately carry out detec- products can be traced within the specified timeframe and
tion and analysis, recall the products, and ensure that those evaluate whether the recall procedures are feasible and ra-
products are identified and traced. During a recall incident, tional. In 2022, we carried out recall simulation drills for MSG,
we will investigate the cause of the defect and develop trehalose, threonine, and small amino acids to strengthen em- To improve quality assurance, we conduct unannounced inspections on suppliers. We score their workshops, processes, and
corrective and preventive measures, track the incident han- ployees’ emergency recall awareness and capabilities. raw materials, identify defects and formulate rectification plans. If a supplier fails to make rectifications according to the plan,
dling results, and prevent similar incidents from happening we will take punitive measures, such as warnings, reducing or even suspending the procurement until the rectification is com-
again. In 2022, the Company had two voluntary product plete. Moreover, we are committed to assisting suppliers to improve their quality capabilities. We deliver quality training and
communication for suppliers and develop supplier assistance plans, joining hands with suppliers to address product quality
and safety related issues.
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Work Safety Safety Training
Putting safety first, focusing on prevention, and establish- safe operations and safety management and prevent safety
ing a safety culture are our top priorities. We have the HSE accidents by helping them develop good operating habits.
We deem work safety as the fundamental essence of our business operation. We have invested considerable effort in estab-
Work Safety Education and Training Management Regula- Moreover, we insist on including contractors in our safety
lishing a safety management system, implementing various safety measures, and delivering work safety training and commu-
tions (for Trial Implementation) in place and develop an- training. The Company’s safety managers deliver training to
nication. In addition, we manage hazardous chemicals systematically. As a result, we strive to keep the health and safety of
nual safety training and education plans. We deliver work contractors and require them to organize safety training to
our employees at the highest level.
safety provide information and regular work safety training ensure that everyone and all projects of the Company are in
for employees and contractors to raise their awareness of line with the Company’s work safety goals.
Meihua Group’s safety data for 2022
Meihua Group’s safety training data for 2022
Number of work-related fatalities
among employees Frequency of work-related injuries among employees
Indicator Employee Attendance Contractor Attendance
0 person 1.58 every 1,000,000 hours worked
Total attendance at safety training 434,953 12,958
Total recordable injury frequency Number of work-related fatalities Frequency of work-related
rate (TFIFR) among employees among contractors injuries among contractors In June 2022, we launched the Work Safety Month campaign with the theme of “abiding by the work safety law and taking
primary responsibility”. During the Work Safety Month, we hosted various events to foster a safety culture, focusing on raising
1.49 every 1,000,000
hours worked 0 person 0.31 every 1,000,000
hours worked
employees’ safety awareness and caliber, to ensure workplace safety for the Company in the long run.
Safety Management
We abide by the Work Safety Law of the People’s Republic headquarters, which coordinates routine safety manage-
of China , the Law of the People’s Republic of China on the ment and oversees, guides, and inspects work safety mat-
Prevention and Control of Occupational Diseases , the Pro- ters of subordinate production bases. Safety management
visions on the Safety Training of Production and Operation targets are set at the beginning of each year, and work-re-
Entities , the Guideline of China Occupational Safety and lated injuries are included in the monthly performance as-
Health Management System , and other applicable laws and sessment of safety managers. This practice has stimulated
regulations. We adhere to the management philosophy that the safety management team’s initiative and improved the
“work safety is everyone’s duty”. We have developed the Company’s overall safety management performance.
Health, Safety and Environmental (HSE) Post Duty System
for All Employees of Meihua Holding Group Co., Ltd. and In addition, we attach great importance to regular protec-
other internal management regulations to ensure that we tion for production employees. Depending on the likelihood
are fulfilling our work safety responsibility. Additionally, of workplace injuries, we provide employees with personal
we are continually improving the Company’s safety man- protective equipment such as safety footwear, uniforms, and
agement system and encouraging our production bases to safety helmets. We have also set up work safety signs such as
obtain relevant certifications. All our bases have obtained accident notification boards, warning signs, and occupational
the Level-3 work safety standardization certificate and the health “formulas” in the production workshop to alert em-
ISO system certification, respectively; the Jilin Base has ob- ployees. We are committed to minimizing occupational haz-
tained 100% safety management system certification. ards and protecting the health and safety of our employees.
Throughout 2022, zero work-related fatalities among employ-
We have set up an HSE Management Department at the ees or contractors were reported at Meihua Group. Meihua Group’s full staff safety training
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Chemical Safety
Watching a work safety promotional video
The Company’s production and operations involve the use of Management of Hazardous Chemicals , which define each
On July 1, 2022, the headquarters of Meihua Group or- chemicals. For these chemicals, we require full-lifecycle safety department’s functions and responsibilities and the man-
ganized employees to watch a work safety promotional management for their procurement, storage, application, and agement requirements for hazardous chemicals. We assess
video, Life is the Most Valuable . The employees earnestly the disposal of discarded containers. We observe the Regula- chemicals for hazard, maneuverability, and environmental im-
studied General Secretary Xi Jinping’s important state- tions on the Safety Management of Hazardous Chemical s, the pact. Based on the assessment results, we rate the hazards of
ments on work safety and gained a deeper understand- Regulations on the Safe Use of Chemicals in the Workplace , chemicals and develop specific management objectives and
ing of the concept of “putting the people and life first”. and other applicable laws and regulations. We have intro- operational requirements, aiming to reduce the chemicals’
The event significantly enhanced employees’ safety duced internal policies such as the Regulations on the Safety harms on human health and the environment.
awareness.
Classifying and
We classify and identify hazardous chemicals such as explosives, flammable liquids, and
Identifying
corrosive substances according to the List of Dangerous Goods (GB 12268—2012).
The scene of the fire emergency response drill chemicals
Fire emergency response drills For all hazardous chemicals involved in the Company, such as liquid ammonia, liquid caustic
Developing a
soda, sulfuric acid, and hydrochloric acid, we have developed an internal list of hazardous
list of hazardous
In late June 2022, the Tongliao and Xinjiang Bases organ- chemicals for strict control and management. Our practices include the storage and publicity of
chemicals
ized fire emergency rescue drills, which simulated root material safety data sheets (MSDSs), the notification of risk factors, and emergency handling.
valve leakage in a liquid ammonia spherical tank. The drills
showed that the accident prevention awareness and rescue
and disposal capabilities of employees at the Xinjiang Base Filing chemicals All hazardous chemicals of Meihua Group had been filed at the Chemical Registration
were greatly improved compared with previous years, and at the authorities Center of the Ministry of Emergency Management for management.
the Tongliao Base’s employees had outstanding perfor-
Employees watching the Life is the Most Valuable pro- mance. The two bases’ fire emergency response teams had
motional video their capabilities enhanced in the drills.
We regularly entrust qualified third parties to assess all hazardous chemicals involved in
our production and operation activities and issue assessment reports to systematically
Assessing clarify the chemicals’ hazard levels and particulars.
chemicals’
Safety banners and posters hazard level The Jilin Base uses the D=LEC method1 to assess the risk of hazardous chemicals in their
production and manufacturing processes. It assesses the risk level and develops manage-
During the Work Safety Month, production bases pro- ment and mitigation measures accordingly.
duced banners, slogans, and painted posters and carried
out colorful and extensive safety communication events,
emersed in a strong safety atmosphere.
Developing emergency response plans Taking measure to optimize processes
For hazardous chemical emergencies, we We replace and properly dispose of some hazardous
have developed emergency response plans chemicals with process optimization and other miti-
and conducted regular drills to enhance our gation methods. For example, we use benzalkonium
Employees in the game of the Rooster Laying Eggs
emergency response capabilities. chloride instead of formaldehyde for the disinfection
of fermentation workshops, and eliminate hazardous
Safety skill contest chemicals such as arsenic trioxide and phosphoric acid.
In mid-June 2022, the Tongliao Base held a Safety Skill
Contest, in which production workshop directors led
In the future, we will conduct comprehensive assessment and identification of chemicals based on the impacts throughout the
their shift heads to complete tasks within the time lim-
product life cycle, take measures to replace high-risk chemical substances and phase out high-risk chemicals, and integrate
it. The event was divided into the Rooster Laying Eggs,
environmental and health standards into the product design process. Our goal is to enhance harmony between economic de-
safety scenario simulation, on-site rescue, and other
velopment and the environment, and between human beings and nature.
stages. It combined fun games with safety knowledge,
guided and raised employees’ work safety awareness, 1
The D=LEC method: It is a semi-quantitative method for assessing hazard sources in potentially dangerous operating
A safety poster hand-drawled by employees and strengthened their teamwork. environments. It is used to assess the danger and harm exposed to operators working in potentially dangerous environments.
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R&D and Innovation Customer Service
Driven by R&D and innovation, we are committed to becoming a leading enterprise in synthetic biology. In our pursuit of continuous advance- Adhering to the core values of“thriving by integrity”, we forts into developing and raising customer service personnel’s
ment in synthetic biotechnology, we focus on building an advanced industrial platform for biological fermentation and biosynthesis. We contin- have built a sound customer service ecosystem to adapt to capabilities. We have introduced Ten Don’ts for Salespeople.
uously enhance our product innovation capabilities to provide better, more economical, and more accessible products. the various needs of our global customers. It is our commit- We also deliver customer service training to improve employ-
ment to provide our customers with high-quality, efficient, ees’ service awareness and ability.
and professional services.
Innovation Layout We have developed internal management systems such as the
When we receive a customer complaint, we categorize it,
begin an internal investigation, offer solutions, and take cor-
Sales Standardization Manua l and the Customer Complaint responding corrective actions. In addition, we continuously
We insist on creating value for customers with continuous innovation. As we invested 829 million yuan and a workforce of 304 in R&D. Handling Process to regulate customer acquisition, commu- optimize the way we give feedback on customer opinions.
a biosynthesis company that covers the whole chain from genome editing nication, and complaints service processes, and continuously In 2022, we received 108 complaints, all of which have been
to product launch, we have reconstructed ourselves into a microbial cell As a model of innovation in the industry, we participate in setting
improve our service performance. At the same time, we put ef- properly resolved.
factory based on industrial production strains such as Escherichia coli, industry standards, launch external cooperation, and continuously
Corynebacterium glutamicum , and Bacillus, and optimized and upgraded empower the innovation and upgrading of the industry. We have
the production strains of the whole product portfolio. passed the laboratory accreditation of China National Accreditation
Service for Conformity Assessment and established an amino acid Meihua Group’s complaint handling process
Our substantial investment in R&D and innovation has resulted in com- analysis and testing center qualified to issue test reports to boost
prehensive improvements in innovative technology, research capabil- technological advancement in the amino acid industry. Externally,
ities, and our personnel pipeline. As a result of our scientific research we have established close relationships with many first-class univer-
strength, we have gained a leading position in the industry. We have sities and research institutes in China, including the Research Center Receiving a customer Relevant departments
Classifying the complaint
established a research and development center and have long been of Industrial Biotechnology (a body of Shanghai Institutes for Biolog- complaint launching an investigation
committed to developing and constructing biosynthetic technology ical Sciences, Chinese Academy of Sciences), the Institute of Microbi-
platforms. We have also established several amino acid laboratories ology of the Chinese Academy of Sciences, and Jiangnan University.
around our core products, which have made breakthroughs in strain We work together to develop high-performance biosynthetic strains.
quality, amino acid conversion rate, and many other aspects. In 2022,
Archiving the complaint Feeding the handling Issuing a complaint inves-
Vitamin B2, our new product Meihua Group’s Innovative and R&D handling result result to the customer tigation report
cooperation projects
● We cooperate with the Jiangnan University team, which is
In 2022, we launched a new product, Vitamin B2, also known the leader in functional sugar research and industrialization
as riboflavin. It is an essential vitamin for body health and in China. We have obtained key technologies for preparing To further strengthen our customer service system, our targeted the People’s Republic of China , and other applicable laws
normal development and is widely used in food, medicine, functional sugars by the one-step conversion method and customer satisfaction rate has been set at 90%. In addition, we and regulations. We have developed internal systems such
and feed. The product is based on Bacillus and made improved the conversion efficiency. The technologies are conduct customer satisfaction surveys annually, which cover as the Information Security Training Management System
from innovatively designed and constructed Vitamin B2 advanced in China.
product quality, transportation and delivery, business services, and the Mobile Storage Media Management Regulations to
production strains. We have completed the patent layout
We cooperate with a biotechnology company in Shanghai and customer service. In 2022, our customer satisfaction survey safeguard the Company’s network, data, and information.
of riboflavin strains and created a favorable condition
●
for the long-term healthy development of China’s bio- to develop new strains for multiple products. We have result was 94.27%. We treat customer information as confidential documents
fermentation vitamin products. improved the conversion rate of strains, improved product and include confidentiality clauses in our contracts. New
quality, and reduced production costs. We aim to reach Information security and consumer privacy are very impor- employees are required to sign the Non-disclosure Agree-
the world’s leading level. tant to us. To handle such concerns, we have formed an IT ments . That way, we protect the privacy and security of our
Management Department and created a reliable informa- customers’ information. During 2022, no incidents relating
tion security management system. We strictly abide by the to the security and privacy of information occurred at the
Protection of Intellectual Property Rights
Law of the People’s Republic of China on the Protection of company.
Consumer Rights and Interests , the Data Security Law of
We attach great importance to the protection of intellectual property evaluate and analyze whether the invention is novel, creative, and prac-
rights. We encourage independent innovation within the Company and tical. We protect inventors’ rights and interests to encourage invention
respect third parties’ intellectual property rights. An intellectual prop- and creation and provide incentives for employees who publish articles
erty management system has been developed to facilitate the creation, and obtain patents. To prevent potential patent disputes, we perform
protection, and application of intellectual property across all aspects of the Freedom to Operate (FTO) analysis in patent-related processes to
the production and operation of the Company. correct and prevent infringement. In 2022, we filed 12 patent applica-
tions and obtained 27 patent authorizations, including 2 in Japan.
As part of the patent application review and submission process, we
03 Co-development
with Employees We always adhere to the people-centricity business philosophy. During the rapid progress of the
company, our most valuable assets are the employees who have worked with us along the way, and
our greatest strength will be the employees we hire in the future. We are committed to protecting
the rights and interests of our employees. We offer a competitive compensation and incentive sys-
tem, long-term incentive plans, and clear career development plans. By providing our employees
with all-around care, we could achieve mutual benefits and win-win results.
Human Rights Protection 36
Employee Incentives 38
Development Training 40
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Human Rights Protection
Meihua Group’s workforce by different categories in 2022
Total workforce
We observe the Universal Declaration of Human Rights, the Convention on Human Rights , the United Nations Convention on
the Elimination of All Forms of Racial Discrimination , and the International Labor Organization’s Declaration on Fundamental
Principles and Rights at Work , among other international human rights norms and standards. In our operations, we are com-
mitted to respecting and protecting human rights. With reference to the SA8000 Standard for social accountability, we have
13,016
developed the Human Rights Protection and Anti-Violence and Conflict Policy , which is applicable to all employees, contrac-
tors, and suppliers of the company. It is designed to systematically prevent human rights violations including violence, human
trafficking, slavery, exploitation, and restrictions of personal freedom, and to safeguard every employee’s dignity. In 2022, Number of employees by gender
there was no violation of human rights at the Company.
Prohibition of Child Labor Human Rights Monitoring
and Forced Labor
Male Female
We abide by the Law of the People’s Republic of We put efforts into monitoring human rights issues.
China on the Protection of Minors , the Provisions We have developed a Human Rights Due Diligence
8,134 4,882
on the Prohibition of Using Child Labor , and other Process . We continuously monitor the Company’s
applicable laws and regulations, as well as the human rights situation by directing production bases
Universal Declaration of Human Rights . We have to conduct routine self-examination and cross-base
developed Provisions on the Prohibition of Using inspections to prevent human rights violations. In
Child Labor and Provisions on the Prohibition of 2022, we conducted a human rights assessment on
Using Forced Labor within the Company. To prevent our operations, covering 75.5% of our employees. Number of employees by age Number of employees by region
child labor, forced labor, and illegal employment at
the source, we review and record employee identity 55 13,015
information rigorously and comprehensively during Under 20 Chinese mainland
employee registration. Upon confirmation of a
1
violation, we will proceed with serious actions in
accordance with the Company’s regulations. 3,936 Non-Chinese mainland
20-29
Number of employees by ethnic group
4,778
Anti-Discrimination and Equal Employment
30-39 9,626
Anti-Harassment Han
3,255 2,370
We adopt a zero-tolerance approach for discrimina- We strictly abide by the Labor Law of the People’s
40-49 Mongol
tion, bullying, humiliation, intimidation, and sexual Republic of China , the Labor Contract Law of the
harassment in the workplace. We have developed People’s Republic of China , and the Implementa- 717 717
an Anti-Harassment and Anti-Abuse Policy and an tion Regulations of the Labor Contract Law of the 974 Manchu
Anti-Discrimination Policy . Any confirmed violations People’s Republic of China . 100% of our employees 50-59 164 164
will be handled as per regulations by the Human are covered by the Company’s collective bargaining
Hui
Resources Department, including warnings, perfor- agreement. We always provide every employee with
mance downgrades, demotions, suspensions, trans- equal employment and development opportunities 18 139 139
fers, and terminations. We try our best to prevent and encourage people from diverse backgrounds Over 60 Others
harassment and abuse and provide employees with to join our team. We strongly oppose all forms of
an agreeable, fair, and secure working environment. discrimination based on gender, age, ethnicity, re-
gion, and religion, as well as vicious competition. We devote great care to female employees’ legitimate rights ensure that female employees have equal compensation,
We undertake social responsibility and are com- and interests. We strictly abide by the Law of the People’s benefits, and career development opportunities and are
mitted to providing employment opportunities to Republic of China on the Protection of Women’s Rights treated fairly when it comes to promotions, assessment of
vulnerable groups such as people with disabilities. and Interests , the Special Rules on the Labor Protection of professional and technical titles, and salary determination.
We employed 13,016 people overall as of the end of Female Employees , and other applicable laws and regula- In addition, we continuously increase the representation of
the reporting period, including over 80 people with tions. Female employees are fully entitled to maternity and women in our management. As of the end of the reporting
disabilities who made up 0.63% of the total. parental leave, and the difficulties caused by women’s phys- period, women accounted for 40% of our executives.
iological characteristics during labor are fully addressed. We
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Employee Incentives Employee Support
We promote work-life balance and integrate care and support In 2022, we conducted an employee satisfaction survey.
In recognition of the importance of the employee incentive system, we have built a diversified compensation and benefit mecha- for our employees into our dailyday-to-day operations. We Our employee survey was designed to listen to employees
nism and launched supplementary employee support programs, thereby stimulating employees, raising their enthusiasm, and fur- create an agreeable working environment and provide em- and understand their perspectives on the Company, expose
ther enhancing their confidence to grow together with the Company. ployees with comprehensive and practical protection through problems in our employee service, and improve the Com-
continuous initiatives such as caring for female employees pany’s employee management system. In 2022, our overall
and assistance for employees with difficulties. These initiatives employee satisfaction score was 3.5 (out of 5).
Compensation and Benefits have greatly united and cheered up employees.
We have established a sound and competitive compensation managers of HSE management, human resources, finance,
The employee stock ownership plan Mommy’s cabin
and benefit system in accordance with relevant laws and and other departments with respect to environmental pro-
regulations and the Compensation and Incentive System. In tection, health and safety, resource utilization, and personnel
addition to equal statutory benefits, it ensures non-statutory training. These KPIs are linked to the compensation of the per- In 2022, we proceeded with the Employee Stock Owner- In 2022, we established the Mommy’s Cabin for fe-
benefits introduced by the Company for all employees, who sonnel being assessed. Rewards and punishments are given ship Plan in accordance with the medium and long-term male employees’ breastfeeding. It meets the needs
can share development results with the Company. according to the completion of the objectives. This has moti- incentive plan. During the reporting period, the incentive of lactating and expecting female employees and
vated direct department managers’ enthusiasm and helped plan granted shares to 219 people, including 9 directors, ensures inclusiveness and dignity for every working
In 2022, we introduced an ESG incentive compensation mech- the Company implement its ESG strategic plan. supervisors, and executives. mother at the Company.
anism. We also set key performance indicators (KPIs) for the
In addition to the basic salary, we offer generous benefits and bonuses to employees:
Heat relief supplies
● Endowment insurance, unemployment insurance, employment injury insurance, medical and
maternity insurance, and housing provident fund paid by the Company for employees in accord- In August 2022, we provided employees with iced watermelon, sour plum juice,
Statutory
ance with national regulations; towels, ice cream, and medicine. They prevented heatstroke and employees
benefits
● Statutory leaves (including family leave, marriage leave, funeral leave, maternity inspection working in high temperature environments such as logistics, warehouses,
leave, maternity leave, and sick leave). workshops, and outdoors for a long time felt cool and cared from the Company
in summer.
Physical We arrange physical examinations for employees. In 2022, 100% new employees went through the
Meihua Group’s trade union sending
●
examinations pre-employment physical examination, and 26.05% of the employees went through the periodic on-
heat relief supplies to employees
for employees the-job physical examination.
We provide a home purchase subsidy for managers and employees who are willing to develop together “The Voice of Meihua”online singing contest Meihua Group’s headquarters holds
Home purchase
●
with the Company. As of the end of the reporting period, we have granted home purchase subsidies to a power walking competition
subsidy
403 employees and a total of 52 million yuan in the housing subsidy.
On May 10, 2022, the annual Sing! Meihua online singing In June 2022, the headquarters of Meihua Group held a
● We provide a monthly housing subsidy for employees relocated due to business assignments or contest concluded, and the scores and awards were an- power walking competition. More than 370 employees
Housing subsi- transfers and have increased the amount. A remote employee may apply for an additional one-off nounced. The contest had first, second, and third prizes from 22 departments took part in this 20-day event.
dy for remote subsidy of 50,000 yuan or 100,000 yuan with the local house purchase contract and invoice in the and honorable mentions for 19 contestants. The contest During the event, employees walked nearly 100,000
employees year when the relocation subsidy expires. As of the end of the reporting period, we have granted provided a stage for employees to show their talent and kilometers in total. This event encouraged employees to
home purchase subsidies to 68 employees and a total of 6.5 million yuan in the housing subsidy. greatly enriched their lives. exercise and enhanced team cohesion, achieving posi-
tive results.
On the eve of traditional festivals such as the Mid-Autumn Festival and the Chinese New
Festival gifts
●
Year, we send employees daily necessities such as food, laundry detergent, and fruits.
In 2022, Meihua Group gave 60 million yuan in Chinese New Year red envelopes to all employ-
Festival bonus
●
ees, with each employee receiving nearly 5,000 yuan.
● We celebrate the International Women’s Day and send flower baskets, cakes, or small gifts to
Festival events female employees;
● We organize events such as flower arrangement salons for female employees.
The voting ranking on the online platform The awarding ceremony of the event
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Environmental, Social and Governance Report 2022 ESG Governance Leading Product Co-development Addressing Green Factory Win-win Cooperation
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Development Training
High-caliber employees are the foundation of the Company’s long- positions to determine the optimal position allocation and define the
term success. We put efforts into creating unrestricted promotion assessment dimensions, standards, certification methods, and promo- During the reporting period, Training percentage by gender
channels for employees and launching a variety of vocational train- tion paths for positions at all levels. With the mechanisms of job rota-
98.28
ing programs. Our employees can improve their overall quality and tion and mentoring, we guide employees to continuously improve their
grow together with the Company. capabilities. In this way, we have established a Y-shaped promotion
channel for front-line production workers to be promoted to positions %
We have developed diversified growth mechanisms for our employees in production management and production technology.
and are committed to creating reasonable and fair promotion paths. of Meihua Group’s employees
We have devised the “Small Wins” personnel training program. In the In addition, we have designed employee training courses in various went through training
program, employees with potential will be selected and benchmarked forms. We have developed a special talent training mechanism, that
against their target positions and a phased improvement plan will be includes providing onboarding training for new employees, leader-
developed. They will then be trained for to their target position. The ship training sessions for managers and workshop directors, and a
program sufficiently motivates employees for advancement. We have
also launched a Worker Ability Certification Program. We evaluate all
training program for management trainees to support the capacity
building of employees at all levels.
98.55% 97.83%
Male Female
The total hours of employee training were
The “Set Sailing Onboarding” Advanced course for
training course for college graduates managers and department heads
● We provide fresh graduates with a Set Sailing onboarding train- ● In August 2022, we held the third lesson of the advanced course
1,969,451
ing program, including lectures and physical training. In 2022, for managers and department heads. The course combined train-
the Set Sailing training course trained 750 college graduates for ing and hands-on practice and was designed to improve in-service
the Company. managers’ ability to fulfill goals and lead the team. A total of 30
Training percentage by level
trainees participated in this session. The per capita training hours were
Training courses for workshop
The Aim High Program directors and shift heads
151.31
● Our Aim High special training program for management trainees ● In 2022, we launched training courses for workshop directors and
focuses on training future middle and senior managers with com-
pound capabilities. The selected management trainees will start
shift heads. The training courses, which combine practical projects
and manager rotation training, improved trainees’ management abili-
98.83% 97.69%
with cross-departmental rotation and fully understand the Com- ty. They addressed the problem of insufficient qualified product tech- Primary-level employees Middle management
pany’s value chain and business logic. They will be equipped with nical directors, workshop directors, and production section chiefs. A
the ability to lead a department, workshop, and area within three
total of 473 trainees attended the session.
years and to concurrently serve at other departments or new de-
partments within five years.
● In 2022, 39 outstanding graduates were selected into the Aim High
program. They are in the job rotation stage.
100% 100%
Middle-senior Senior management
management and executives
A group photo of trainees at training courses for workshop directors and shift heads
04 Addressing Climate
Change Climate change is one of the greatest challenges facing the world today. The increase in
global temperatures since the Industrial Revolution is a result of greenhouse gas (GHG)
emissions, which also contribute to other issues including melting glaciers and rising sea
levels. The environment on which human beings depend is facing unprecedented threats
and challenges.
Adhering to sustainable development, we observe the United Nations Framework Conven-
tion on Climate Change and the Paris Agreement , fully grasp China’s carbon peaking and
carbon neutrality goals and energy transition trends, and join in global efforts to address
climate change. Referring to the Task Force on Climate-related Financial Disclosures (TCFD),
we have established a governance structure for addressing climate change. We have inte-
grated climate change responses into the Company’s strategy and perform climate change
risk management. We have set climate-related metrics and targets and are committed to
reducing GHG emissions. With the above actions, we are transitioning to a more green,
low-carbon, and sustainable business model.
Governance 44 Risk Management 46
Strategy 45 Metrics and Targets 47
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Environmental, Social and Governance Report 2022 ESG Governance Leading Product Co-development Addressing Green Factory Win-win Cooperation
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Governance Strategy
We attach great importance to climate-related risk man- development strategy, major decisions, production, and op- In 2020, in the background of China’s vigorous pursuit of car- We progress and implement the climate change adaptation
agement. We regularly analyze climate-related risks and erations. bon neutrality, we responded to the state’s call and took the strategy and take actions to address climate change. We
opportunities against macro policies, corporate strategic initiatives to carry out various tasks to address climate-related continuously improved our responses to climate-related
planning, production, and operations. We have developed The Strategy Committee is responsible for the Company’s risks. We have developed a development strategy for address- risks and reduced GHG emissions by improving manage-
the Management Measures for Addressing Climate Change climate change responses and holds regular meetings on ing climate change and reducing GHG emissions for 2020- ment, upgrading equipment, adjusting techniques, opti-
and Sustainable Development and the Energy Management relevant matters. The Sustainable Development Office un- 2025, which defines the Company’s specific goals, tasks, and mizing processes, and substituting with clean energy, from
System to define the responsibilities of all levels of the Com- der the Strategy Committee communicates with the Board assessment and incentive measures, and ensures the progress perspectives of energy supply, energy use, green finance,
pany in addressing climate change. With the above actions, of Directors on climate change in a timely manner. of the work. and carbon pricing and sink.
we integrate climate change responses into the Company’s
Climate Change
Management Management Bodies Responsibilities
Structure Energy supply Increasing the proportion of electricity in secondary en-
ergy supply. We reduce direct coal burning and accelerate
de-coalization. We speed up the electrification of energy
supply for power stations and ammonia synthesis plants and
research the use of green electricity and green hydrogen to
● Supervises and approves the Company’s strategies replace coal in hydrogen preparation.
and plans for addressing climate change and oversees
climate-risk management;
The governance Strategy Improving energy efficiency. We reduce energy consumption
Strategy Committee Energy use
level of climate per unit of product by improving technology and process, re-
● Approves climate-related performance targets and in-
centive mechanisms, and conducts regular reviews on change fining production management, and upgrading equipment.
the progress of achieving the targets. responses
Green finance As green finance is expected to grow exponentially, we will
continue to monitor financing channels such as green credits
and bonds related to carbon emission reduction.
Develops the Company’s medium to long-term energy
We will take into account carbon trading and carbon emis-
●
conservation plan, energy development plan, and ener- Carbon pricing
gy conservation and emission reduction targets; sion reduction costs and plan carbon trading strategies in
and carbon sink
advance.
ESG Leadership Group ● Organizes the identification and assessment of cli-
mate-related risks and supervises the progress in ener-
gy conservation and emission reduction at bases;
Organizes and hosts training on climate change.
The management
●
and executive
levels In 2021 and 2022, in addition to reducing carbon emissions through energy conservation and carbon capture, the Tongliao
Base met the target to save 652,000 metric tons of carbon emissions. Moreover, we have adopted a carbon pricing mechanism
to evaluate the cost of carbon emissions. In addition, we make investment decisions based on the carbon trading price on the
national carbon emissions market.
● Conduct identification and assessment of climate-relat-
ed risks;
To standardize GHG accounting for the bio-fermentation industry, we took the lead in setting Requirements for greenhouse
Relevant Departments gases emission accounting and reporting Biotech fermentation manufacturing enterprises, an organization standard proposed
Take climate-related risk management measures in
by CBFIA. The document was released in December 2022 and will take effect on April 1, 2023.
●
business activities and implement energy conservation
and emission reduction plans.
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Risk Management Metrics and Targets
Based on the analysis of China’s carbon peaking and carbon neutrality goals and policies on climate change, types of natural As China aims to achieve carbon peaking and carbon neutrality, plans that produce outstanding outcomes.
disasters in the country, and the Company’s actual condition, we have identified and assessed risks and developed counter- we insist on equal emphasis on both technology and manage-
measures to adapt to or mitigate the impact of climate change on business. ment, and we continually reduce the energy consumption of Moreover, the Strategy Committee of the Company’s Board
our products. Upholding the sustainable development concept of Directors monitors the progress of achieving climate-relat-
of green biosynthetic manufacturing, we encourage all employ- ed targets and indicators and conducts regular performance
ees to submit rationalization proposals on energy efficiency appraisals to ensure that relevant departments are working
Meihua Group’s climate-related risk management in 2022
and carbon emission reduction. Rewards will be given to the toward the set targets. During the reporting period, we met our
proposers in accordance with the regulations for rationalization annual targets for carbon dioxide emission reduction.
Risk Type Risk Category Risk Description Countermeasures
GHG emission reduction targets:
Against the carbon peaking and To promote the use of renewable energy
By 2025, the carbon dioxide emissions per 10,000 In 2022, the Scopes 1 and 2 absolute carbon emissions
●
carbon neutrality goals, China and increase the use of solar and wind
has tightened its controls on the energy; yuan of output will be reduced by 20% based on 500,000 metric tons and 10,000
will
metric tons,respectively, compared with 2021.
management of greenhouse gas
Policy risk that in 2020.
emissions. It increases our com- ● To launch technological transformation
pliance risks and raises the ener- and energy recovery projects to reduce
energy waste in all operations and use
gy structure adjustment costs for Clean energy use target:
our low-carbon transition. energy more effectively and rationally.
The coal-based energy structure will be improved. The proportion of renewable energy such as photovoltaics and
Transition wind power will be increased from 2020 to 2030. By 2030, the installed capacity of renewable electric energy will
risks ● To advance research and development
of technologies that reduce consump-
be more than 20MW .
The increase in investment cost tion and energy use;
is due to the low-carbon trans- Meihua Group’s energy use and carbon emissions in 2022
formation of the production To monitor the latest development and
Technical risk
●
process and the introduction of application of energy-saving technol-
energy-saving and consump- ogies in the bio-fermentation industry, Indicator Unit Data in 2022
tion-reducing equipment. conduct feasibility analyses of tech-
nology replacement, and introduce Coal consumption3 metric ton 3,641,870.02
advanced energy-saving equipment.
Gasoline consumption L 25,402.37
Climate events such as heavy Diesel consumption metric ton 1,121.50
To develop plans for flood control and
rainfall, high temperatures, and
●
emergency rescue under extreme heat;
other extreme climate condi- Purchased electricity consumption kWh 621,112,430.22
tions can damage production To pay close attention to the information
Natural gas consumption m3 18,106,244.41
●
Acute risk equipment and storage facilities, released by the meteorological authori-
interrupt transportation, and ties, especially weather warnings;
Renewable energy use kWh 43,731,262.80
cause other property losses, as
Physical To add extreme weather defense equip-
well as threaten the health and
risks Comprehensive energy consump-
●
safety of employees. ment and facilities. GJ/revenue of 1 million yuan 3,926.00
tion intensity
Total Scope 1 GHG emissions metric ton of CO2e 9,243,768.55
Long-term climate risks such as ● To roll out water-related risk analysis
water shortages may affect pro- and assessment and incorporate wa- Total Scope 2 GHG emissions metric ton of CO2e 306,957.04
Chronicrisk2
duction and drive-up operating ter-related risk management into the
costs. Company’s overall risk management. Total GHG emissions metric ton of CO2e 9,550,725.59
GHG emissions intensity metric ton of CO2e/revenue of 1 million yuan 341.86
2
Chronic physical risks refer to longer-term shifts in climate patterns that may lead to sea level rise or long-lasting extreme
heat, such as prolonged heat. 3
Including 715,389.66 metric tons of raw coal consumed.
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Reducing Energy Consumption Suppliers’ Engagement in Climate Action
To improve energy efficiency, we put efforts into developing efficiency. This practice saves energy, protects the environment, In addition to addressing climate change, conserving en- set energy consumption targets and convert the use of coal to
and applying waste heat recycling systems and related facilities, improves the quality of the heat supply, and increases the elec- ergy, and reducing emissions on our own, we value the gas, modify our techniques, improve processes, recycle steam,
including heat and power cogeneration, steam turbine-driven tricity supply. During the production of synthetic ammonia, we partnership with suppliers to reduce carbon emissions in and use clean energy. These measures have decreased energy
compressor units, multi-effect evaporators, evaporative cooling, capture and compress carbon dioxide to produce food-grade dry the supply chain. In 2022, we collaborated with 62 suppli- consumption, improved energy efficiency, and reduced car-
power generation from waste heat of sulfuric acid synthetic am- ice, reducing carbon dioxide emissions and enhancing the econo- ers (about 18% of the total number of suppliers) to reduce bon emissions in the upstream supply chain.
monia, steam as the by-product of Ende gasifiers’ waste heat, and my at the same time. emissions and conserve energy. We encourage suppliers to
starch waste heat evaporators. Prior to usage, we categorize heat
energy, which lowers environmental pollution and boosts energy
The steam energy-efficiency technical transformation project for the fermentation workshop
In response to the national policy of assessing the total amount and intensity of energy consumption, we launched
the Steam Energy-efficiency Technical Transformation Project for the Fermentation Workshop in 2022 to improve
heat efficiency. Under the project, a set of material heat exchanger and a water material heat exchanger were added
in the fermentation workshop, which have significantly improved acid production. The material inlet temperature of
the fermenter has been reduced from 127° C to 40° C, thereby reducing the number of cooling devices, and the con-
version rate and acid production have been improved. The products’ steam consumption per metric ton has been
reduced by 0.16 metric ton, which saves 279.7 metric tons of steam per day and 14,000 metric tons of coal equivalent
(TCE) per year and reduces 37,000 metric tons of carbon dioxide emissions.
To enhance our employees’ ability to respond to climate-re- China’s carbon-neutral trends, peer companies’ energy con-
lated risks, conserve energy, and reduce carbon emissions, servation and emission reduction strategies, and the Com-
we have launched a comprehensive training program on pany’s energy consumption status and energy conservation
energy conservation strategies, policies, and standards. and emission reduction planning and strategies. They were
From June to September 2022, we delivered four training delivered to a total audience of 120 with more than 240
sessions on climate change, energy conservation, and emis- training hours.
sion reduction strategies. They covered the interpretation of
05 Green Factory We adhere to the scientific assertion that “lucid waters and lush mountains are invaluable as-
sets”. While acquiring natural resources, we devote ourselves to environmental protection and
resource conservation. Having a keen understanding of the importance of ecological conserva-
tion, we continually seek to improve our environmental management system. We optimize water
efficiency, put great efforts into waste management and pollution prevention, and improve the
recycling of packaging materials. We aspire to be a pioneer in protecting the environment and a
contributor to promoting harmony between mankind and the environment.
Environmental Management 52
Water Resources Management 53
Waste Management 54
Recycling of Packaging Materials 58
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Environmental Management Water Resources Management
We, in the bio-fermentation industry, face increasing exter- For effective environmental management, we fully perform According to the Global Risks Report 2016 of the World Eco- impact analysis and develop countermeasures based on the
nal demands regarding environmental protection, which the primary responsibility of environmental protection. nomic Forum, water supply crises are one of the most sig- situation of areas where the Company operates.
raises the standards of our environmental management Each of our production bases has an environmental man- nificant risks facing human society in the next decade. Chi-
system. We regard environmental protection as an essential agement department and a senior executive in charge of na has 20% of the world’s population but only 7% of fresh We make efforts in improving water resources management
part of our business and strictly comply with the Environ- environmental management. We comprehensively manage water. According to the United Nations’ releases, the global to meet the Company’s development and employees’ living
mental Protection Law of the People’s Republic of China production bases’ environmental protection work by hold- available water supply is expected to decrease by 40% by needs. We strictly abide by the Water Law of the People’s
and other applicable laws and regulations. Based on the ing environmental briefings and special meetings regularly, 2030, and China will have a shortage of water resources in a Republic of China and other applicable national regulations
Company’s current progress in environmental protection, developing environmental protection plans, and reviewing decade. on water resources management. Based on our current
we have introduced an Up-to-standard Odor Management environmental protection resources for development, reno- situation, we have developed the Water Resources Manage-
System and a Stable Operation Management System for vation, and expansion projects. Using the Aqueduct tools of the World Resources Insti- ment Measures of Meihua Holding Group Co., Ltd. , set the
Sewage Workshops . Our production bases strictly imple- tute (WRI), we identified water risk levels in areas where Strategy Committee of the Board of Directors as the highest
ment the Headquarters’ requirements. An Environmental We place special emphasis on environmental training. We the Company operates and found that 100% of our water responsible body for the Company’s water resources man-
Protection Management System , an Environmental Pro- develop annual environmental protection training plans withdrawals were drawn from high-risk areas in 2022. In agement, and established a three-level water resources
tection Monitoring System , an Environmental Protection and provide training to all employees. Moreover, we hold addition, 80%-100% of our crops were sourced in areas management structure that comprises of the Company, pro-
Education and Training System , and an Environmental Pro- several special environmental protection training sessions with high or very high baseline water stress. These results duction bases, and production entities. In our system, we
tection Inspection System have been developed for internal every year for shift head employees and above, allowing have become an inexhaustible driving force for us to con- provide clear instructions on how to develop overall plans
management. We continuously improve our environmental environmental protection managers and executors to gain a tinuously improve our water efficiency. We aim to reduce for the Company’s water resources, improve water resourc-
management performance and capabilities by advancing deeper understanding of the Company’s environmental pro- water consumption throughout the Company, conduct reg- es conservation, protection, and scientific use, and increase
the construction and certification of our environmental tection progress and technology and environmental man- ular performance appraisals based on the progress of the the reuse rate of water and the industrial use of non-tradi-
management system, fulfilling environmental management agement system. Furthermore, we require our production targets, and protect water resources with practical actions. tional water resources. We aim for a water-efficiency model.
responsibilities, and establishing a sound environmental bases to provide employees with training on environmental We will effectively control water-related risks and conserve In 2022, there were no water-related violations in the Com-
audit system. protection principles, policies, laws, and regulations as part water by optimizing technological processes and recycling pany.
of their regular departmental training. water resources. In 2023, we will conduct more water risk
Environmental management
Meihua Group’s use of water in 2022
system certification Environmental inspection
Indicator Unit Data for 2022
● We proceed with environmental ● The operation of sewage discharge and environmental protection facilities Reuse of water metric ton 5,841,943
management system certifica- is regularly monitored.
tion. As of the end of the report- Total water withdrawal metric ton 30,642,207
ing period, our three production
● Environmental protection commissioners are dispatched for field inspec-
bases had achieved 100% cov- tion on the Company’s environment from time to time.
Total water consumption metric ton 36,484,150
erage of the ISO 14001 system
Every month, a joint inspection led by the Environmental Protection De-
certification. Water consumption intensity metric ton/1,000 yuan of revenue 1.31
●
partment is held, focusing on the operation of the Company’s environmen-
tal protection system. The inspection results are taken as a field assess-
ment item for the Environmental Protection Award.
Taking sustainable development as our duty, we urge our sustainability of business chain coordination.
In 2022, each of our three production bases conducted four environmental
suppliers and partners to fulfill their environmental and
●
compliance audits covering the entire operating area.
social responsibilities. We plan to conduct water risk assess- As a leader in the industry, we are always committed to con-
ments for suppliers in areas of high or extremely high water tributing to the development of the bio-fermentation indus-
stress and field assessments for key suppliers every year. try. In 2015, we participated in setting the national standard
Environmental emergency management We will analyze the water risk assessment results together Water Saving Enterprises: Monosodium L-glutamate Indus-
with the suppliers and develop corresponding risk manage- try (GB/T 32165-2015) . In 2022, we participated in revising
ment plans. In addition, we will invite suppliers to discuss the national standard Water Saving Enterprises: Fermenta-
water risk issues every year, along with technical exchanges tion Industry to set more scientific and unified standards for
The Company’s environmental protection commissioners prepare an environmental emergency plan and organize drills
and cooperation in water conservation, use, treatment, and water resources management and water conservation for
according to the Interim Measures for the Administration of Environmental Emergency Response Plans and the Measures
recycling. We will carry out training and sharing of the best the fermentation industry.
for the Filing and Administration of the Environmental Emergency Response Plans of Enterprises and Public Institutions .
In the case of an environmental pollution emergency, they will promptly report to the higher authorities. practices of corporate water risk management to achieve
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Waste Management Use of Effluents
In waste management, we always discharge waste against applicable laws and regulations. We have developed a Pol- For efficient resource management, we vigorously promote consumed approximately 4 metric tons of water per metric
standards and address problems at the source. We are lutant Discharge Management System and the Hazardous the comprehensive utilization of wastewater and water ton of MSG, which is significantly lower than Level 1 indica-
committed to minimizing all kinds of pollutants and waste Waste Management Regulations of Meihua Holding Group recycling projects. We have also made significant progress tor requirements of Cleaner Production Standard -Monoso-
generated in production and operation activities. We strictly Co., Ltd. (for Trial Implementation) . These systems are de- in the conservation of water by upgrading our technologies dium glutamate industry.
abide by the Atmospheric Pollution Prevention and Control signed to ensure the stable operation of pollutant treatment and improving our processes. The Tongliao Base invested
Law of the People’s Republic of China , the Law of the Peo- facilities, the up-to-standard discharge of air pollutants and hundreds of millions of yuan to introduce the world’s top In addition to the comprehensive utilization of wastewater,
ple’s Republic of China on the Prevention and Control of effluents, and the proper disposal of waste. water treatment technology from the Netherlands-based we have combined progressive utilization and recycling. For
Environment Pollution Caused by Solid Wastes , and other Paques and build reclaimed water reuse workshops for some water, the closed-circuit recycling rate is more than
effective treatment of low-concentration wastewater and 93%.
Atmospheric Pollutant Management
reduction of effluent discharge. In 2022, the Tongliao Base
Our waste gas emissions are mostly sulfur dioxide, nitrogen oxides, and other atmospheric pollutants generated during the
power generation process of the Company’s self-owned power plants. We have taken special treatment measures against
them. In 2022, we launched rectification on odor pollutants and sulfur dioxide and adopted the following emission reduction The water conservation technological upgrade project in the tongliao and jilin bases
measures:
Tongliao Base In 2022, the Tongliao Base upgraded the decolorization columnal activated carbon process for MSG and installed a con-
tinuous resin decolorization system with related new processes. After the new system was put into operation, the MSG
workshop’s unit consumption of water intake and discharge was reduced by 67%, saving 175,200 metric tons of water
In heating stations, SNCR denitrification and PSCR denitrification are used in combination with electrostatic-fabric integrated per year. In addition, the unit consumption of water discharge in the refining workshop has been reduced by 74%, sav-
precipitation, ammonia desulfurization, and ultrasonic desulfurization and dust removal integrated devices to treat flue gas. ing 642,400 metric tons of water per year.
Treatment devices of cyclone dust collection, bag dust collection, water foam dust collection, low temperature plasma, The Jilin Base’s five sets of ion exchange water washing equipment for lysine extraction consumed a large amount of
ozone adsorption and oxidation are used to dry the tail gas. desalted water. In 2022, the secondary condensate from the batching workshop was reused to replace desalinated
water, thereby reducing the unit consumption of desalted water in the workshop as well as the amount of effluent dis-
charged from the batching workshop. This practice has reduced the unit consumption of desalinated water by 63.5%,
saving 685,000 m3 water per year.
Xinjiang Base
An intensive stench and odor control project has been launched. The bases’ malodorous gas treatment facilities adopt
acid/alkali washing, low-temperature plasma, condensers, and photoelectric dust removal. Meihua Group’s effluent discharge in 2022
After treatment, the concentration of lysine and threonine exhaust odor has reached the national standard.
Indicator Unit Data in 2022
After treatment, the concentration of glutamate and nucleotide exhaust odor has been much lower than the cap set in
the national Emission Standards for Odor Pollutants .
Total effluents metric ton 22,107,489.15
COD metric ton 2,149.37
Jilin Base COD intensity metric ton/100 million yuan of revenue 7.69
N-NH3 metric ton 262.27
Odor control, electrostatic-fabric integrated precipitation, desulfurization and denitrification equipment, bag dust
collection, cyclone dust collection, washing towers, oxidation towers, electrostatic demisting, plasma, activated car-
bon, photoelectric deodorization are adopted to treat non-fugitive waste gas. N-NH3 intensity metric ton/ 100 million yuan of revenue 0.94
A fully-enclosed coal yard has been built to reduce the generation of fugitive dust.
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Waste Disposal
We are meticulous in waste disposal management. We re- Waste Classification and Disposal Principles . Meihua Group’s pollutant and waste discharge in 2022
cycle the waste generated in production and office work in
a safe and environmentally friendly manner. This practice The Company’s hazardous waste primarily consists of waste
reuses waste while reducing the environmental pollution. chemical reagents, waste chemicals, and waste activated Type of Pollutant Indicator Unit Data for 2022
carbon. We have introduced the Regulations on Hazardous
Our non-hazardous waste mostly comes from office waste, Waste Management (for Trial Implementation) . We collect,
SO2 emissions metric ton 1,375.28
domestic waste, and general industrial waste produced dur- store, and transfer hazardous waste, develop emergency
ing production and operations. The solid waste produced plans, and maintain special records in strict accordance
in the Company’s production and everyday life is classified with the requirements. Our hazardous waste is disposed of
NOx emissions metric ton 1,790.65
and collected and disposed of in accordance with the Solid by qualified third parties under our contract.
Dust emissions metric ton 103.65
Tongliao Base Atmospheric
Total waste air emissions metric ton 3,269.58
pollutants
metric ton/1 million yuan
Activated carbon is recycled. Activated carbon used to produced amino acid is recycled and reused in the waste car- Waste air emissions intensity 0.12
of revenue
bon workshop, realizing 100% comprehensive utilization.
Incinerators have been built. Sewage treatment sludge, organic fertilizers, electrostatic defogging fluids, and other Total general solid waste discharge metric ton 970,032.94
wastes are recycled by being sent to the incinerators in the plant for incineration to generate steam.
Office waste and various metal wastes are centrally collected and recycled. metric ton/1 million yuan
Non-hazardous waste General solid waste discharge intensity 34.72
of revenue
Used batteries generated piece 11,635
Xinjiang Base Spent activated carbon generated metric ton 155.02
Spent zinc oxide catalysts generated metric ton 10.36
The activated carbon is reused after being recycled and processed by the waste carbon workshop to realize
zero emission of waste activated carbon.
Spent engine oil generated metric ton 162.39
Non-hazardous metal-containing waste is collected at the recycling station or waste material station in the fac-
tory to be converted into resources.
Spent detection solution generated metric ton 2.51
Water-treatment sludge and waste mother liquor for amino acid production are sent to the incinerator in the
factory for incineration. Hazardous waste
Used (empty) reagent bottles generated metric ton 2.52
Used paint buckets generated metric ton 4.84
Jilin Base
Hazardous waste discharge metric ton 337.64
Lysine and sodium glutamate tail liquids are used as raw materials for organic fertilizers.
metric ton/1 million of
Hazardous waste discharge intensity 0.01
General solid waste such as fly ash and slag generated in power plants are sold to third parties for comprehensive revenue
utilization.
58 59
Environmental, Social and Governance Report 2022 ESG Governance Leading Product Co-development Addressing Green Factory Win-win Cooperation
with Employees Climate Change
Recycling of Packaging Materials
Meihua Group’s green packaging material campaign
As a leading company in the Chinese bio-fermentation in- Co., Ltd. with multi-effect utilization and resource recycling
dustry, we have seen a steady increase in production and as the core. We implement standardized control over pack-
sales as well as the number and demand of customers aging materials and green packaging material management.
worldwide. In this context, we have prioritized minimizing We have set management targets for packaging materials,
the weight of product packaging materials, reducing their established a green packaging procurement system, and
environmental impact, and promoting packaging material standardized and optimized the paper, plastic, and metal
recycling, which are all significant ways we can protect the packaging processes. We also require that all packaging ma-
environment. terials used by the Company be reusable, recyclable, and
Reduction Reuse Recycling
degradable, as well as promote the use of less, lighter, and
In 2022, we developed the Green Packaging Material Pro- recycled packaging. Minimize the total consump- Dispose of used packaging Recycle and dispose of waste
curement Strategy and System of Meihua Holding Group
tion of packaging materials materials and reuse them. packaging products and con-
without compromising func- vert them into new substanc-
tions for transportation, stor- es or energy;
age, and sales.
Use packaging waste or pro-
Meihua Group’s green packaging Meihua Group’s green packaging
cessing leftovers as raw ma-
material management philosophy material weight reduction targe
terials or ingredients to make
recycled packaging materials
We are committed to increasing the proportion By December 31, 2023, we will reduce the total such as fiberboard and de-
of environmental labeling products; prioritizing weight of packaging materials by 234 metric tons, gradable plastics.
the use of renewable, reusable, and recyclable including 180 metric tons of plastic packaging ma-
packaging materials; and gradually eliminating terials for amino acid products, 53 metric tons of
unnecessary packaging materials. Through opti- plastic packaging materials for MSG products, and
mization, we will achieve “reduction, reuse, and 1 metric ton of paper drum packaging materials.
recycling”.
Consumption of packaging materials
The majority of our packaging materials are plastic, paper, and sumption of packaging materials and increased the amount
wood. Besides ensuring the safety and reliability of packag- of recycled packaging. During the weight reduction campaign
ing materials, we seek to minimize the number of packaging in 2021 and 2022, the consumption of packaging materials
materials used and promote green packaging innovation. We was reduced by an average of 716 metric tons per year, and an
launched a special campaign to reduce the weight of woven average of 981 metric tons of materials were recycled per year.
bags. During the reporting period, we used recycled materials In 2022, the Company’s revenue from products using green
to produce by-product woven packaging, and the woven bag packaging materials accounted for 5% of its total revenue from
Plastic Paper Wood
for amino acids was made using a lighter outer bag and a thin- products.
ner inner lining. As a result, we reasonably reduced the con-
22,028 metric tons
18,225 metric tons
3,372 metric tons
We will continue to pursue green packaging material management together with our packaging suppliers in the future. We will
accelerate the establishment and improvement of a green packaging system through packaging weight reduction and recy-
cling and realize a green future.
06 Win-win Cooperation
Our sustainable development depends on the joint efforts of our partners. We aspire to “develop
recycling economy, benefit chinese agriculture”. Besides comprehensively improving our respon-
sible procurement practices, we work with high-caliber suppliers in the bio-fermentation and
bio-pharmaceutical industries to boost sustainable development in the supply chain. Meanwhile,
we perform corporate citizenship and participate in charitable activities to foster progress in socie-
ty and build a better future for everyone.
Sustainable Supply Chain Management 62
Community Engagement 65
62 63
Environmental, Social and Governance Report 2022 ESG Governance Leading Product Co-development Addressing Green Factory Win-win Cooperation
with Employees Climate Change
Sustainable Supply Chain Management Responsible Procurement
We strictly observe the Bidding Law of the People’s Republic of China . We have developed the Suppliers’ Responsible Procure-
To provide customers with high-quality green products, we ment Management Measures of Meihua Holding Group Co. Ltd. and established a supplier management mechanism covering
integrate sustainable development demands into the man- risk management, admission, assessments, and terminations to improve the Company’s supply chain management.
agement of the whole supply which extends from the procure- Meihua Group’s sustainable
ment of raw materials, such as corn and coal, to the partner- procurement strategy:
Supplier Risk Management
ship with logistics companies and retailers at the end of the
supply chain. In 2022, we strictly observe guidelines and laws We uphold the vision and mission of purchasing
on human rights and anti-violent conflicts in the areas where with value and realizing a procurement system
operate. We developed an internal policy, which is the Envi- of excellence. With our supply chain capabilities,
ronmental and Labor Human Rights Sustainable Procurement industry influence, and market expertise, we are Every year, we identify and evaluate ESG risks among sup- We grade suppliers based on the results of the ESG risk
Policy of Meihua Holding Group Co. Ltd . This policy contains committed to creating a more sustainable future pliers. Based on the industry and procurement volume, we evaluation and divide them into high-risk, medium-risk,
regulations and agreements on human rights and anti-violent with our suppliers and promoting our procure- identify and assess suppliers’ environmental, social and and low-risk suppliers. High-risk suppliers will be requested
conflicts with contractors, suppliers, and other business part- ment system toward sustainability and respon- governance risk levels using our ESG risk evaluation matrix. to complete the Supplier ESG Questionnaire from time to
ners, aiming to build a fair, transparent, and sustainable sup- sibility. The environmental dimension of the matrix includes six time before we reassess and update their ESG risk level and
ply chain. indicators: carbon emissions, water grades, raw material provide timely feedback. We control suppliers’ ESG risks
sources, pollutant discharge, biodiversity, and environmen- with measures in the organization, systems, technology,
tal protection measures. The social dimension includes and emergency response, and carry out ESG risk investiga-
three indicators: labor management, product responsibil- tions. We have made ESG risk management and control a
In 2022, Meihua Group
ity, and stakeholders. The governance dimension includes standardized and regular practice and comprehensively im-
three indicators: communication and feedback, corporate proved our ESG risk identification, prevention, and control
100
governance, and corporate behaviors. That way, we are able capabilities. In 2022, we conducted ESG risk identification
to comprehensively identify suppliers’ ESG risks by grade, and determination for our suppliers twice and identified
saw % of its products made from materials that were
category, and discipline. 123 high-risk suppliers, including 20 key primary suppliers
traceable to the place of origin. and 0 key non-primary suppliers.
Rating criteria for suppliers’ risks
Meihua Group’s number of suppliers
High-risk suppliers Medium-risk suppliers Low-risk suppliers
383 53 380 8 The number of high-risk ESG indica-
tors accounts for more than 30% (the
The proportion of high-risk ESG indi-
cators is less than 30%, and the pro-
portion of medium-risk ESG indicators
Cases other than the above two are of
low ESG risk and the cumulative pro-
curement value of the year is less than
decisive factor for high ESG risk) and
Primary suppliers Key primary suppliers Non-primary suppliers Key non-primary suppliers the cumulative procurement value of is more than 40% (the decisive factor 10 million yuan.
the year is more than 10 million yuan. for medium ESG risk) and the cumula-
tive procurement value of the year is
Direct procurement sup- Top 10 primary suppli- Non-direct procurement Non-direct procurement
less than 10 million yuan.
pliers ers in the industry or suppliers suppliers with an annu-
region with an annual al procurement value
procurement value of of more than 10 million
more than 10 million yuan and accounting for
yuan over 30% of total pro-
curement amount (of a
Supplier Admission
single material)
During supplier admission, we strictly observe relevant industry standards and the ESG Management System of Meihua Holding
Group Co., Ltd. for Suppliers and prioritize suppliers who are certified in product quality and safety, employees’ occupational health
and safety, environmental management, green products, data privacy, and information security. Obtaining ESG-related certifica-
tions will be a necessary requirement for suppliers identified as high-ESG-risk. For ESG medium-risk suppliers, we prioritize those
who can provide ESG-related certification documents during the admission process to select suppliers with strong advantages and
good intentions for partnership.
64 65
Environmental, Social and Governance Report 2022 ESG Governance Leading Product Co-development Addressing Green Factory Win-win Cooperation
with Employees Climate Change
Supplier Assessments Community Engagement
For admitted suppliers, we have developed Supplier ESG We have developed a Supplier ESG Assessment Form to
Assessment Criteria. Every year, we regularly conduct ESG score admitted suppliers. Based on the final total scores, we
Despite our rapid growth and increased economic output, nity welfare activities such as student aid and environmental
assessments for suppliers through questionnaires, on-site classify suppliers into Classes A, B, C, and D. In addition, we
we have not forgotten our mission to give back to society and protection.
audits, and video link. We put forward expectations and will give corresponding rewards or penalties to suppliers
assist the disadvantaged. We make full use of our industry
requirements for suppliers’ social responsibility and envi- according to their ESG assessment results. In 2022, we con-
advantages and support our public welfare undertakings. We We established the Tibet Meihua Public Welfare Foundation,
ronmental management and focus on the performance in ducted supplier ESG assessments and reviewed a total of
contribute to rural revitalization, charitable donations, com- and developed special management systems such as the
labor and human rights, health and safety, environmental 763 suppliers, of which 57 were unqualified, accounting for
munity building, and the combat against COVID -19. Through Donation Management Measures of Tibet Meihua Public
protection, and business ethics when inspecting suppliers. 7% of the total.
these public welfare undertakings, we give back to society Welfare Foundation . Our charity undertakings concentrate
with love and assist people in practical ways, fulfilling the in Hebei, Xinjiang, and Tibet. In 2022, we donated 4,320,323
Company’s social responsibility. By the end of the reporting yuan to public welfare.
Criteria for supplier ESG assessments and rating
period, our employees spent 1,744 working hours in commu-
Type of suppliers Definition Rating criterion
Tibet Meihua Public Welfare Foundation’ public welfare events
Class-A suppliers Outstanding suppliers Suppliers scoring 90 or above in the ESG assessment
Suppliers scoring below 90 and above 75 or 75 in the ESG In 2022, Tibet Meihua Public Welfare Foundation held a variety of public welfare events, which were widely recognized by the
Class-B suppliers Qualified suppliers
assessment whole community.
Suppliers qualified after Suppliers scoring below 75 and above 60 or 60 in the ESG Followed the initiative of the Tibet Office of the China Se- Donated anti-epidemic supplies worth more than 360,000
Class-C suppliers
● ●
rectification assessment curities Regulatory Commission anad made poverty allevi- yuan to help Jilin fight COVID-19.
ation donation in Gulu Town, Naqu, Tibet, providing local
Class-D suppliers Unqualified suppliers Suppliers scoring below 60 in the ESG assessment residents with daily necessities, rice, flour, grain, oil, books, ● Donated 5,000 sets of protective clothing and 30 boxes of
and other supplies. Lianhua Qingwen to aid COVID-19 prevention and control
in Xinjiang.
Supplier Termination ● Donated winter supplies to Guoke Village, Gulu Town,
Contributed funds to the construction of the community
Seni District, Naqu, Tibet Autonomous Region. ●
center of Sibao Village, Donggugang Town, Anci District,
Suppliers who have received two Class C ratings must complete rectification and submit a rectification report within the pre- ● Donated 5,010 sets of protective clothing to the Adminis- Langfang, Hebei Province.
scribed time frame. If a supplier still fails to meet the standards after rectification, its products will be banned by the Company. tration Committee of the Lhasa Economic Development
Zone. Visited the Linkong Checkpoint of the Langfang Public
Suppliers who have received D in an ESG assessment, provided false materials, had major ESG violations or violated the code
●
Security Bureau.
of conduct for suppliers will be banned in accordance with relevant disposal procedures to ensure the integrity and impartiali-
Donated protective clothing, masks, and antiviral drugs
ty of the supply chain.
●
to fight COVID-19 to Fukang Maternity and Children’s
Hospital in Chengguan District, Lhasa.
Compliance Management and Control Over Suppliers
As part of our commitment to establishing clean and healthy partnerships with suppliers, we emphasize compliance man-
Meihua Group’s fertilizer donation
agement throughout the supply chain. We define suppliers’ corruptive conduct in the Anti-Corruption Management Measures
of Meihua Holding Group Co., Ltd. We have formulated the Code of Conduct of Meihua Holding Group Co. Ltd. for Suppliers.
A major focus of this policy is the prevention of child labor, the protection of basic human rights, equal treatment, business
integrity, operational compliance, health, safety, and environmental protection. It covers labor and human rights, health and We have carried out fertilizer donations for many years in a row. Through targeted
safety, environmental protection, ethics, and corporate governance. With the above measures, we strictly regulate suppliers’ assistance to farmers, we boost spring farming. Since 2020, we have donated 170,000
conduct and maintain a transparent procurement culture. metric tons of fertilizers, worth about 100.41 million yuan in total, benefiting 140.67
million hectares of farmland.
Communication with Suppliers In April 2022, the Tongliao Base donated fertilizers to farmers living nearby to ad-
dress the rising prices of agricultural materials. The farmers expressed praise and
thanks for the Company’s charitable deeds. In this campaign, 152,08 metric tons
We insist on transparency openness, cooperation, equality, and mutual benefit. We have established effective communication of fertilizers were donated to farmers in 1,000 nearby villages and towns.
channels for suppliers, including regular suppliers’ conferences every year. We also encourage suppliers to participate in the
exchange events regularly hosted by the Company to communicate, discuss, and share information regarding cost reduction, A farmer benefited from the fertilizer
quality and service improvement, low-carbon technology, and human rights protection. In addition, we regularly deliver ESG donation
training for suppliers to strengthen our partnerships and advance our mutual growth.
66 67
Environmental, Social and Governance Report 2022 GRI Index
GRI Index
Disclosure topic/Disclosure item Title of the disclosure item Chapter index Page Disclosure topic/Disclosure item Title of the disclosure item Chapter index Page
GRI 1: Foundation 2021 GRI 206: Anti-competitive Behavior 2016
GRI 2: General Disclosures 2021 206-1
Legal actions for anti-competitive behavior, anti-trust, Business Ethics and Anti-corrup-
20
and monopoly practices tion
2-1 Organizational details About the Report 02
GRI 301: Materials 2016
Entities included in the organization’s sustaina-
2-2 About the Report 02 301-1 Materials used by weight or volume Recycling of Packaging Materials 58
bility reporting
2-3 Reporting period, frequency and contact point About the Report 02 301-2 Recycled input materials used Recycling of Packaging Materials 58
301-3 Reclaimed products and their packaging materials Recycling of Packaging Materials 58
2-4 Restatements of information / /
2-5 External assurance / / GRI 302: Energy 2016
Activities, value chain and other business rela- 302-1 Energy consumption within the organization Indicators and Targets 47
2-6 About Us 06
tionships
302-2 Energy consumption outside of the organization Indicators and Targets 47
2-7 Employees About Us 06
302-3 Energy intensity Indicators and Targets 47
2-8 Workers who are not employees About Us 06
302-4 Reduction of energy consumption Indicators and Targets 47
Our Sustainable Development
2-22 Statement on sustainable development strategy 08 Reductions in energy requirements of products and
Strategy 302-5 Indicators and Targets 47
services
2-29 Approach to stakeholder engagement Stakeholder Engagement 18
GRI 303: Water and Effluents 2018
2-30 Collective bargaining agreements Human Rights Protection 36
303-1 Interactions with water as a shared resource Water Resources Management 53
GRI 3：Material Topics 2021
303-2 Management of water discharge-related impacts Water Resources Management 53
3-1 Process to determine material topics Stakeholder Engagement 18
303-3 Water withdrawal Water Resources Management 53
3-2 List of material topics Stakeholder Engagement 18
303-4 Water discharge Water Resources Management 53
3-3 Management of material topics Stakeholder Engagement 18
303-5 Water consumption Water Resources Management 55
GRI 201：Economic Performance 2016
GRI 305: Emissions 2016
Financial implications and other risks and oppor-
201-2 Risk Management 46 305-1 Direct (Scope 1) GHG emissions Indicators and Targets 47
tunities due to climate change
Defined benefit plan obligations and other retire- 305-2 Energy indirect (Scope 2) GHG emissions Indicators and Targets 47
201-3 Employee Incentives 38
ment plans
305-3 Other indirect (Scope 3) GHG emissions / /
GRI 204: Procurement Practices 2016 305-4 GHG emissions intensity Indicators and Targets 47
Sustainable Supply Chain Manage-
204-1 Proportion of spending on local suppliers 62 305-5 Reduction of GHG emissions Indicators and Targets 47
ment
305-6 Emissions of ozone-depleting substances (ODS) Waste Management 54
GRI 205：Anti-corruption 2016
Nitrogen oxides (NOx), sulfur oxides (SOx), and
305-7 Waste Management 54
205-1 Operations assessed for risks related to corruption Business Ethics and Anti-corruption 20 other significant air emissions
Communication and training about anti-corrup-
205-2 Business Ethics and Anti-corruption 20
tion policies and procedures
205-3 Confirmed incidents of corruption and actions taken Business Ethics and Anti-corruption 20
68 69
Environmental, Social and Governance Report 2022 GRI Index
Disclosure topic/Disclosure item Title of the disclosure item Chapter index Page Disclosure topic/Disclosure item Title of the disclosure item Chapter index Page
GRI 306: Effluents and Waste 2016 GRI 405: Diversity and Equal Opportunity 2016
306-1 Water discharge by quality and destination Water Resources Management 53 405-1 Diversity of governance bodies and employees Human Rights Protection 37
306-2 Waste by type and disposal method Waste Management 57 Ratio of basic salary and remuneration of women
405-2 / /
to men
306-3 Significant spills Waste Management 54
GRI 406: Non-discrimination 2016
306-4 Transport of hazardous waste Waste Management 56
Incidents of discrimination and corrective
Water bodies affected by water discharges and/or 406-1 Human Rights Protection 36
306-5 Water Resources Management 53 actions taken
runoff
GRI 407: Freedom of Association and Collective Bargaining 2016
GRI 308: Supplier Environmental Assessment 2016
Operations and suppliers in which the right to
New suppliers that were screened using environ- 407-1 freedom of association and collective bargaining Human Rights Protection 36
308-1 Responsible Procurement 63
mental criteria may be at risk
Negative environmental impacts in the supply
308-2
chain and actions taken
Responsible Procurement 64 GRI 408: Child Labor 2016
GRI 401: Employment 2016
Operations and suppliers at significant risk for
408-1 Human Rights Protection 36
incidents of child labor
401-1 New employee hires and employee turnover Human Rights Protection 37
GRI 409: Forced or Compulsory Labor 2016
Benefits provided to full-time employees that are
401-2 Employee Incentives 38 Operations and suppliers at significant risk for
not provided to temporary or part- time employees 409-1 Human Rights Protection 36
incidents of forced or compulsory labor
401-3 Parental leave Employee Incentives 38
GRI 413: Local Communities 2016
GRI 403: Occupational Health and Safety 2018
Operations with local community engagement,
413-1 Community Engagement 65
403-1 Occupational health and safety management system Safety Management 28 impact assessments , and development programs
Hazard identification, risk assessment, and inci- Operations with significant actual and potential nega-
403-2 Safety Management 28 413-2 / /
dent investigation tive impacts on local communities
403-3 Occupational health services Safety Management 28 GRI 414: Supplier Social Assessment 2016
Worker participation, consultation, and communica- New suppliers that were screened using social
403-4 Safety Training 29 414-1 Responsible Procurement 63
tion on occupational health and safety criteria
403-5 Worker training on occupational health and safety Safety Training 29 Negative social impacts in the supply chain and
414-2 Responsible Procurement 64
actions taken
403-6 Promotion of worker health Safety Management 28
GRI 416: Customer Health and Safety 2016
Prevention and mitigation of occupational health
403-7 and safety impacts directly linked by business Safety Management 28
Assessment of the health and safety impacts of
relationships 416-1 Customer Service 33
product and service categories
Workers covered by an occupational health and Incidents of non-compliance concerning the health
403-8 Safety Management 28 416-2 Customer Service 33
safety management system and safety impacts of products and services
403-9 Work-related injuries Safety Management 28
GRI 417: Marketing and Labeling 2016
403-10 Work-related ill health Safety Management 28
Requirements for product and service information
417-1 Customer Service 33
and labeling
GRI 404: Training and Education 2016
Incidents of non-compliance concerning product
404-1 Average hours of training per year per employee Development Training 41 417-2 Customer Service 33
and service information and labeling
404-2 Programs for upgrading employee skills and transition Development Training 41 Incidents of non-compliance concerning market-
417-3 / /
ing communications
Percentage of employees receiving regular per-
404-3 Development Training 41
formance and career development reviews
GRI 418: Customer Privacy 2016
Substantiated complaints concerning breaches of
418-1 Customer Service 33
customer privacy and losses of customer data
Reader’s Feedback
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Greetings.
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comments and suggestions on the report and our work will be most welcomed and appreciated.
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Contact Information
8. What are your opinions and suggestions for Meihua Group’s environmental, social and governance performance and reporting?
Address: No.66 Huaxiang Road, Economic and Technical Development Area, Langfang City, Hebei
Province, China, 065001
Email: mhzqb@meihuagrp.com
Telephone: +86 0316-2359652