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  • Overall approach
    1/12
    • Overarching commitment on deforestation
      0/4
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "Forests are a stabilizing force for the climate. Mengniu supports the conservation of forest land and actively explores different ways to avoid the impact of raw materials and pasture construction on forest and biodiversity"
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      0/1
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
      Yes
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 200 square kilometers
      "Since 2009, Mengniu’s subsidiary Shengmu High-tech has invested over RMB7.5 billion in the Uulan Buh Desert in Inner Mongolia to carry out large-scale ecological treatment of the desert and construction of the sand industry based on the “low-coverage sand treatment theory.” At present, 90 million trees of various types have been planted and greened more than 200 square kilometres of the desert"
    • Target to reduce emissions in scope 1/2
  • Commodity score
    17/88
    • Palm oil
      29/88
      • Commitment Strength
        10/20
        • Commitment to protect priority forests
          4/8
          • Commitment details
            Credible certification scheme
            2/6
            Commitment to protect priority forests
            Credible certification scheme
            2/6
            Which certification schemes are used?: RSPO
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        4/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Other workers' rights commitments: Only work legal working hours

          Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association
          "Main contents of the Supplier Code of Conduct [...] Non-discrimination Freedom of association; Freedom of expression; Protection of human rights; Elimination of child labour Prohibition of forced labour; Regulated working time"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        15/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: no
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            What percent of the company's supply volume is verified using company verification systems?: 100%

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certification

            Which processes or groups does the company use for third party verification?: RSPO Certification
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: RSPO Certification

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certification
            "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified."
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          100%
          6/6
          Report verified volumes of commodity
          100%
          6/6
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
          "We are committed to prioritizing the sourcing and supporting the production of sustainable palm oil. Together with our suppliers and stakeholders, Mengniu is committed to being environmentally responsible upstream. In 2020, 100% of the Group's palm oil suppliers are RSPO certified." 
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: Not specified

          Details of monitoring: Using internal monitoring and verification systems; Using third party verification
          "We are committed to prioritising sourcing and supporting sustainable palm oil production, with RSPO certified palm oil suppliers accounting for 100% in 2020. Mengniu conducts regular supply chain assessments for compliance with environmental, health and safety, labour rights and ethics standards and related risks and develops targeted training and improvement plans. In 2020, Mengniu commissioned a third-party organisation to conduct a supply chain ESG risk assessment and required suppliers to identify management practice weaknesses and ESG risks based on the results of the assessment and to submit corresponding improvement plans."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: training and improvement plans

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "We are committed to prioritising sourcing and supporting sustainable palm oil production, with RSPO certified palm oil suppliers accounting for 100% in 2020. Mengniu conducts regular supply chain assessments for compliance with environmental, health and safety, labour rights and ethics standards and related risks and develops targeted training and improvement plans."  
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper
      19/88
      • Commitment Strength
        9/20
        • Commitment to protect priority forests
          4/8
          • Commitment details
            Credible certification scheme
            2/6
            Commitment to protect priority forests
            Credible certification scheme
            2/6
            Which certification schemes are used?: FSC
            “Mengniu has partnered with the world's leading manufacturers of sterile packaging materials, pioneering the use of sterile recyclable packaging materials certified by the FSC or the Sustainable Forestry Initiative (SFI). So far, 100% of our packaging materials papers are certified under the FSC forest system.”
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            “Mengniu has partnered with the world's leading manufacturers of sterile packaging materials, pioneering the use of sterile recyclable packaging materials certified by the FSC or the Sustainable Forestry Initiative (SFI). So far, 100% of our packaging materials papers are certified under the FSC forest system.”
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            “Mengniu has partnered with the world's leading manufacturers of sterile packaging materials, pioneering the use of sterile recyclable packaging materials certified by the FSC or the Sustainable Forestry Initiative (SFI). So far, 100% of our packaging materials papers are certified under the FSC forest system.”
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            “Mengniu has partnered with the world's leading manufacturers of sterile packaging materials, pioneering the use of sterile recyclable packaging materials certified by the FSC or the Sustainable Forestry Initiative (SFI). So far, 100% of our packaging materials papers are certified under the FSC forest system.”
        • Commitment to reduce use of virgin wood fibre
          4/5
          • Commitment details
            Yes
            3/3
            Commitment to reduce use of virgin wood fibre
            Yes
            3/3
            Type of commitment: Recycled content
            “Mengniu has partnered with the world's leading manufacturers of sterile packaging materials, pioneering the use of sterile recyclable packaging materials certified by the FSC or the Sustainable Forestry Initiative (SFI). So far, 100% of our packaging materials papers are certified under the FSC forest system.”
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            “Mengniu has partnered with the world's leading manufacturers of sterile packaging materials, pioneering the use of sterile recyclable packaging materials certified by the FSC or the Sustainable Forestry Initiative (SFI). So far, 100% of our packaging materials papers are certified under the FSC forest system.”
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        4/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association

          Other workers' rights commitments: Only work legal working hours
          "Main contents of the Supplier Code of Conduct [...] Non-discrimination Freedom of association; Freedom of expression; Protection of human rights; Elimination of child labour Prohibition of forced labour; Regulated working time"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        7/50
        • Reporting against commitments
          0/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            “Mengniu has partnered with the world's leading manufacturers of sterile packaging materials, pioneering the use of sterile recyclable packaging materials certified by the FSC or the Sustainable Forestry Initiative (SFI). So far, 100% of our packaging materials papers are certified under the FSC forest system.”
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.7
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC Certification

            Which processes or groups does the company use for third party verification?: FSC Certification
            “Mengniu has partnered with the world's leading manufacturers of sterile packaging materials, pioneering the use of sterile recyclable packaging materials certified by the FSC or the Sustainable Forestry Initiative (SFI). So far, 100% of our packaging materials papers are certified under the FSC forest system.”
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
          Report verified volumes of commodity
          No disclosure
          0/6
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
          Mengniu has partnered with the world's leading manufacturers of sterile packaging materials, pioneering the use of sterile recyclable packaging materials certified by the FSC or the Sustainable Forestry Initiative (SFI). So far, 100% of our packaging materials papers are certified under the FSC forest system.
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: Not specified

          Details of monitoring: Using internal monitoring and verification systems; Using third party verification
          "Mengniu conducts regular supply chain assessments for compliance with environmental, health and safety, labour rights and ethics standards and related risks and develops targeted training and improvement plans. In 2020, Mengniu commissioned a third-party organisation to conduct a supply chain ESG risk assessment and required suppliers to identify management practice weaknesses and ESG risks based on the results of the assessment and to submit corresponding improvement plans."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "Mengniu conducts regular supply chain assessments for compliance with environmental, health and safety, labour rights and ethics standards and related risks and develops targeted training and improvement plans. In 2020, Mengniu commissioned a third-party organisation to conduct a supply chain ESG risk assessment and required suppliers to identify management practice weaknesses and ESG risks based on the results of the assessment and to submit corresponding improvement plans."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Soy
      4/88
      • Commitment Strength
        0/20
        • Commitment to protect priority forests
          0/11
          • Commitment details
            No commitment
            0/8
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        4/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Other workers' rights commitments: Only work legal working hours

          Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association
          "Main contents of the Supplier Code of Conduct [...] Non-discrimination Freedom of association; Freedom of expression; Protection of human rights; Elimination of child labour Prohibition of forced labour; Regulated working time"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        0/50
        • Reporting against commitments
          0/3
          • Commitment to protect priority forests
            No
            0/2.5
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          0/2
          • Commitment to protect priority forests
            No
            0/1.5
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    6/20
    Avg. score
  • Reporting and Implementation
    7/50
    Avg. score
  • Social considerations
    4/18
    Avg. score

Profile

China Mengniu Dairy (Mengniu) is a Chinese manufacturer and distributor of dairy products. Its products include milk, ice-cream, cheese, and other dairy products. The company is one of the top dairy companies in China and globally, whilst also ranking highly for other dairy products and packaged food. It is also a major Chinese importer of palm oil. China Mengniu Dairy Co. Ltd. is selected as a powerbroker for palm oil, soy and paper packaging.

Sector
Industry sector 
Dairy, Packaged food
Segments
Manufacturer
HQ
HQ 
Hong Kong
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.