On December 10, 2025, the Carbon Disclosure Project (CDP), a globally recognized authority on carbon emissions ratings, released its latest corporate sustainability assessment results. CH MODERN D (01117) was awarded the CDP Management Level rating for the third consecutive year, highlighting its leadership in greenhouse gas reduction, water conservation, and forest protection. This achievement underscores the company's commitment to ESG governance and sustainable development as a global leader in the dairy industry.
Since its establishment in 2000, CDP has driven environmental transparency by encouraging companies to disclose data on greenhouse gas emissions, water usage, and deforestation. By 2025, CDP has engaged over 640 capital market signatories representing approximately $127 trillion in assets. Nearly 25,000 companies—accounting for two-thirds of global market capitalization—report environmental impact data through CDP, solidifying its reputation as a benchmark for corporate sustainability disclosures.
CDP’s rigorous rating system, ranging from D- (Disclosure Level) to A (Leadership Level), evaluates corporate environmental governance maturity and action. In this assessment, CH MODERN D maintained a "B" rating (Management Level) across three key dimensions: climate change, water security, and forest risk. This reflects the company’s deep-rooted sustainability practices and reinforces its industry leadership.
**Climate Change Initiatives** CH MODERN D has established clear carbon reduction targets and implemented a comprehensive emissions management system. Moving beyond traditional single-phase approaches, the company built a green circular supply chain covering "forage cultivation—dairy farming—manure treatment—biogas power generation—fertilizer recycling." This end-to-end system minimizes environmental impact while enhancing efficiency.
The company has strengthened carbon accounting capabilities and energy management, achieving significant progress in emissions reduction. Its farms now generate over 100 million kWh of biogas annually, with renewable energy accounting for nearly 60% of total usage. The "Low-Carbon Dairy Farm Lifecycle" project has gained international recognition, including being featured in the UN FAO’s best practices, China’s Ministry of Ecology and Environment’s "2025 ESG Excellence Cases," and the Ministry of Agriculture’s "2025 China Agricultural Low-Carbon Development Report." Additionally, CH MODERN D was named a "2025 Outstanding Sustainable Practice Case" by the China Association for Public Companies for its innovations in smart farming and emissions control.
**Water Security Measures** Water efficiency is central to CH MODERN D’s sustainability strategy. The company has adopted smart irrigation and real-time monitoring systems, reducing water consumption in dairy farming by 39%. In forage cultivation, precision irrigation techniques cut water and energy use by 25–30% per acre. Annually, the company recycles approximately 9.78 million cubic meters of wastewater while improving treatment capacity through optimized drainage systems.
**Forest Protection Commitments** CH MODERN D aims to achieve zero deforestation by 2030 by identifying and mitigating risks in its supply chain. The company prioritizes sustainably certified soybean suppliers, sourcing 42,000 tons of deforestation-free soybean meal in 2024 (13% of total procurement). It also collaborates with key suppliers on traceability initiatives and pilot programs for deforestation-free sourcing.
Guided by its "FRESH" strategy, CH MODERN D integrates ecological values with business growth, accelerating the industry’s transition toward green and low-carbon development. Its efforts continue to drive high-quality, sustainable progress in global dairy farming.
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