Sustainability

Focusing on Environment

As global environmental issues become increasingly severe, we have clearly acknowledged our responsibility for environmental protection. We place a high priority on managing our carbon footprint, proactively controlling our carbon emissions, gradually optimizing our resources and improving our management of pollutions and emissions. We also continue to implement different innovative and environmentally-friendly projects, providing plant- based products to our customers, while working hard to minimize the negative impacts of our value chain on the environment.

Performance highlights 2019

Our major business locations

employ the ISO14001 Environment Management System Certification
In 2019 , the discard intensity of non - hazardouswastewas

reduced by 18.3%

compared with that of 2018
In 2019, the total quantity of recycled non- hazardous waste

increased by 3.5%

compared with that of 201
In China, renewable energy is used for power generation , which

reduced approximately 4,000 metric tons of carbon dioxide emissions

compared with fossil energy in 2019
In 2019, solid waste to landfill by our U.S. operations was reduced by

57%

compared to 2010 baseline, down by

31%

year-on- year
In 2019, an additional

30 new acres

of monarch butterfly habitat was reconstructed through our donation in the United States

Carbon Footprint Mitigation

We are aware of the importance of mitigating our carbon footprint at the whole value chain and work earnestly to minimize it. Through upgrading the technological application, optimizing our energy management and structure, as well as streamlining our logistics transportation, we were able to reduce our greenhouse gas emissions and take a step forward toward low-carbon development. Our subsidiary Smithfield has set a GHG emission reduction target, which aims to reduce 25% of the absolute GHG emissions by 2025.

Since energy-efficient management is a major solution to reducing our carbon footprint, we have been searching for alternative ways to reduce our energy consumption and improve our energy efficiency. In China, we actively implement internal management systems such as Energy Technology Standards , Energy Management Standards and Energy Assessment Programs , strengthen target management, formulate annual energy consumption targets, and actively adopt policy promotion, assessment guidance, process control to enhance energy management. We formulated energy consumption targets for our operations in the United States and Europe, which aim to achieve a 5% reduction in energy consumption by 2020 globally at our farms and facilities compared to 2014, through equipment upgrades, management improvement and energy structure optimization.

The energy consumption data of last several years is showed as follows:

Energy consumption 2017 2018 2019 Unit
Direct energy consumption 5,432 5,851 5,878 Million kWh
Direct energy consumption intensity 606 579 617 kWh/metric ton of products produced
Indirect energy consumption 3,587 3,808 3,686 Million kWh
Indirect energy consumption intensity 400 377 387 kWh/metric ton of products produced
Total energy consumption 9,019 9,659 9,564 Million kWh
Total energy consumption intensity 1,006 956 1,004 kWh/metric ton of products produced
GHG emissions 2017 2018 2019 Unit
GHG emissions 2,440,202 2,632,607 2,616,317 Metric tons of carbon dioxide equivalent
GHG emissions 0.27 0.26 0.27 Metric tons of carbon dioxide equivalent/metric tons of products produced

Our joint venture with Dominion Energy, Align Renewable Natural Gas (Align RNG), will expand our reach to pursue new biogas projects across the country. When fully implemented, the expanded partnership will prevent more than 2.5 million metric tons of GHG emissions from entering the atmosphere each year, the equivalent of planting more than 40 million new trees.

We are also making tremendous strides with our joint venture with Roeslein Alternative Energy (RAE), Monarch Bioenergy. In 2019, we increased the amount of RNG produced in Missouri from our farms. With our additional $45 million investment in early 2020, we aim to produce biogas at 100% of our company-owned finishing farms in Missouri, an initiative that will remove the equivalent of 130,000 gasoline vehicles off the road.

Water Resource Management

We step up our efforts in assessing and migrating water risks by monitoring the use of water, and continuously reduce water consumption and improve water- use efficiency by adopting innovative and effective measures according to local situations.

In China, under the guidance of water conservation principles, we strengthened target management including formulated annual water consumption targets, and actively strengthened water resource management through policy advocacy, assessment guidance and process control. In 2019, we surpassed water consumption targets per unit in the high- temperature meat products and low-temperature meat products industries. Our operations in the United States and Europe gave a high priority to water conservation. We have established a water policy to provide guidance about our management of water resources and how we monitor all water- consuming equipment. Meanwhile, we are working to reduce our water use by 10% by 2020 compared to a 2014 baseline.

The water resource consumption data of last several years is as follows:

Water consumption 2017 2018 2019 Unit
Total volume of freshwater 66.54 73.06 70.87 Million cubic meters
Water consumption intensity 7.42 7.23 7.44 Cubic meters/metric tons of products produced