little happiness mattersmengniuir.com/pdf/governance_reporting.pdf · social responsibility report...

Social Responsibility Department of China Mengniu Dairy Company LimitedAddress: 29F Tower A, 8A International Finance Center, Jianguomenwai Avenue, Chaoyang District, BeijingPost Code: 100022www.mengniu.com.cn

Social Responsibility Report of China Mengniu D

airy Company Lim

ited (2008-2013)

Little Happiness MattersSocial Responsibility Report of China Mengniu Dairy Company Limited (2008-2013)

SEHK Stock Code: 2319

This report is made of degradable paper that is environment-friendly and recyclable

About the Report

Period of report

The report covers information from January 01, 2008 to December 31, 2013, using in particular the

information in 2013. The data in this report is as of December 31, 2013.

Scope of report

This report covers relevant information of China Mengniu Dairy Company Limited and its subsidiaries. For

convenience of expression and understanding, "China Mengniu Dairy Company Limited" is also expressed

as "Mengniu", "the company" and "we/us" in this report.

Issues of report

This is the second issue of Social Responsibility Report by Mengniu. The �rst release was made by Mengniu

in 2008 - Social Responsibility Report of Mengniu— Share our Growth (1999—2007) . According to

Mengniu's plan, a Social Responsibility Report will be issued every two years as from 2014.

Basis of report

International Standard Organization: ISO 26000: Guidance on Social Responsibility (2010)Global Reporting Initiative: Sustainability Reporting Guidelines (G4)TThe Stock Exchange of Hong Kong Limited: Guidelines on Environment, Society and Regulatory Reporting

Data and description

All information and data included in this report by reference are taken from o�cial documents, statistical

reports and �nancial statements of the company, as well as related sustainable development information

of various functional sectors and operating units collected, summarized and reviewed in accordance with

social responsibility management systems of Mengniu. Photos and pictures are provided by Mengniu’s

employees and partners and are only to present images of Mengniu employees and partners, and should

not be used for any commercial purpose.

Language and versions

This report is made in both Chinese and English. In case of inconsistency, the Chinese version shall prevail.

Feedback and suggestions

If you have any question or suggestions on this report, please contact us by writing to Social Responsibility

Department, China Mengniu Dairy Company Limited.

Address: 29F Tower A, International Finance Center,. 8A Jianguomenwai Avenue, Chaoyang District, Beijing

Telephone: (010) 5657 0938

Fax: (010) 5657 0900

Website: http://www.mengniu.com.cn/

01/ A Letter from Our President

03/ About Mengniu

07/ Social Responsibility Management

65/ Prospect

66/ Index of Report

67/ Veri�cation Statement

69/ Expert Review

Contents

13

39Low-carbon and Green Development

23

49Employee Care and Development

33

57E�cient Operation and Management

Community Involvement and Development

Food Safety and Health Product and Service Innovation

Dear friends:

I became a member of the big family of Mengniu in April 2012 with trust from the Board of

Directors. Over the past two years of arduous work, we have deeply realized that the great power

that drives a company forward comes from its people, system and culture. Two years ago, we came

up with the brand conception of "Little Happiness Matters" which is interpreted today by us making

"every drop of happiness". Together with 30,000 Mengniu employees, 300,000 partners, we have

reestablished the corporate vision of becoming a “consumer-oriented and innovation-led nutritious

and healthy food company”, for which we pool all efforts to build a sustainable ecosystem and to

provide consumers with every drop of happiness.

We spare no efforts to improve quality in every drop of our milk and to build our ecosystem and

an open culture. With every tiny action we take, we are changing our own world. With these

numerous efforts, we are becoming more confident than ever and changing our attitude towards

work from purely assuming responsibility to devotion to it. We are changing our communication

with customers from making our information transparent to frank interaction. We are leading your

health and nutrition through continuous innovations more than satisfying your needs for food.

More importantly, the revolution in the Internet is changing our communication means. We hope

you can feel the warmth from us in every detail we make and choose our products through better

understanding of Mengniu and Mengniu's people once you refuse to turn down warmth and

happiness. We highly value sharing and cooperation, and expect to jointly build and improve a

sustainable ecosystem, to contribute and reward the society.

01

Every Drop Represents Our Heartfelt Efforts —— A letter from our president

02 02

In the future, we will make continuous innovations in products and service, and will pool every tiny effort

from each single person to spread Mengniu's conception of "Little Happiness Matters" and to interpret our

values of "Openness, Integrity, Accountability, Innovation". Mengniu is to realize a complete reform and

transformation: we are not just based on the resources in China but also those around the world; we are

not just a dairy products producer but a leading nutritious and healthy food company; we are not only the

expert of one specific food category but a contributor to healthy and innovative development of the dairy

industry.

We will make persistent efforts and devote full attention to our goal.

Sincerely yours

Sun Yiping

August 2014

0303

About Mengniu

China Mengniu Dairy Company Limited is a listed company in the Stock Exchange of Hong Kong (SEHK). Mengniu provides

consumers with diversi�ed products and services, including liquid milk (such as UHT milk, milk beverage and yogurt), ice

cream, milk powder and other dairy products (such as cheese). In 2013, Mengniu liquid milk hit top in Chinese market in terms

of sales volume and revenue. In 2014, Mengniu became the constituent stock of Hang Seng Index, making it the �rst blue chip

Chinese dairy product manufacturer.

Our footprints

1999

Mengniu w

as established in a 53-m2 shabby house in H

ohhot;

2000

Mengniu produced the �rst bag of m

ilk in Tetra Fino packaging;

2001

Men

gn

iu in

itially pro

po

sed th

e con

ceptio

n o

f "Building a City of Chinese M

ilk";

2002

Mengniu ’s products entered H

ong Kong market;

2003

Mengniu produced m

ilk exclusively for Chinese astronauts;

2004

On June 10, 2004, M

engniu was listed in SEH

K (HK2319);

2005

The TV show “the Super G

irls ” sponsored by Mengniu Suansuan Ru

swept China;

2006

Mengniu launched its charity cam

paign of "A catty of m

ilk a day makes

Chinese strong and healthy";In O

ctober, Mengniu becam

e the first Chinese w

inner of IDF A

ward for

Innovation in dairy industry;M

engniu was listed as Top 500 A

sian Brands;

2007

Men

gniu H

igh

-tech D

airy Product A

cadem

y, also the h

igh

ly intelligent

production base of Mengniu, w

as built up with an investm

ent of RMB1.2 billion.

The academy pooled global intelligence in dairy products;

04

2008

Mengniu launched its "Safe M

ilk Project";

2009

Mengniu w

as listed as Most Valuable Chinese Brands 2009, and becam

e Top 16 dairy enterprises of the w

orld;

In July, Mengniu entered into strategic cooperation w

ith China Oil &

Foodstuffs Corporation (CO

FCO) w

hich became the largest strategic

shareholder of Mengniu;

2011

Mengniu's annual turnover reached RM

B 37.3 billion, by which M

engniu has w

on the �rst place in terms of sales revenue of sim

ilar products in 5 consecutive years;

Mengniu "Xinyangdao" w

as granted "Aw

ard of Dairy Innovation" in the 28th

World D

airy Conference;2013

Mengniu increased its shareholding in China M

odern Dairy, the largest dairy

cow breeding enterprise in China, and becam

e its single largest shareholder;

Mengniu entered a fram

ework agreem

ent with D

anone, by which a new

joint venture w

ill be established and specialized in production and sales of yogurt and m

eanwhile, D

anone became a strategic shareholder of M

engniu;

In June, Mengniu m

ade a general offer to Yashili, which is by far the largest

merger and acquisition in Chinese dairy industry.

2010

Mengniu's annual turnover hit a record of RM

B 30.2 billion, making

Mengniu the first dairy enterprise w

ith annual revenue exceeding RM

B 30 billion in Chinese market;

2012

Mengniu entered into strategic cooperation w

ith Arla Foods w

ho became the

second largest strategic shareholder of Mengniu;

In Ju

ne, th

e Sino

-Den

mark D

airy Techn

olo

gy C

oo

peratio

n C

enter w

as established under guidance from

the ministries of agriculture of China and

Denm

ark, for which M

engniu was responsible for the im

plementation in China;

05

Our philosophy

Core Values

Openness,Integrity,Accountability,Innovation

Mission

Develop with customers, employees, shareholders and all other stakeholders, to build a win-win ecosystem

Vision

Become a consumer-oriented, innovation-led, nutritious and healthy food company

Little happiness matters——every drop of happiness

In Mengniu,

We make more than good milk,

For we make milk a bridge of love between people.

When people enjoy our pure and yummy milk product,

And whenever they touch with our brand,

They feel the affection in every drop of the milk,

And feel delighted for it.

We believe,

As long as we present the world with goodness drop by drop,

These drops gather and form a fountain of happiness.

In Mengniu, Little Happiness Matters.

06

Ms. Sun Yiping has been appointed as President and Executive Director of Mengniu.

A Board of Directors has been established with due diligence and a complete set of internal control policies.

The Board of Directors comprises 2 executive directors, 6 non-executive directors and 5 independent non-executive directors.

The Board of Directors is mainly responsible for formulating overall strategies and policies, setting performance and administration goals, evaluating business performance and supervising the management.

Organization structure

China MengniuAn integrated and collaborative platform of investment,

�nancing and decision-making center

Liquid milk + Ice creamEstablished business

Infant milk formulaEmerging business

Plant-based proteinEmbryonic business

Farming, etc.Investment business

Strategy Finance R&D Risk&Audit

Supply chain

Publicrelations

Quality safety

Organizational development

Information innovation

Social Responsibility Management

We, in association with partners including ranchers, suppliers and city managers, perform our social responsibilities by

innovative means and create comprehensive economic, social and environmental values in six core domains of social

responsibilities including food safety and health, product and service innovation, e�cient operation and management, low-

carbon and green development, employee care and development as well as community involvement and development. With

these e�orts, we build up a sustainable ecosystem and present consumers with healthy food and nutrition of �ne quality,

boost cooperation and mutual bene�ts with ranchers and city managers, and drive the sustainable development of Mengniu

and society.

Consumers

Community Involvement and

Development

Ranc

hers

City Managers

Suppliers

Food Safety and Health

Product and Service

Innovation

E�cient Operation and Management

Low-carbon and Green

Development

Employee Care and

Development

Social responsibility management model

07

In the past, we focused on our competitiveness in products and industry and were devoted to producing

products of �nest quality and to winning competitive advantages for the Company. On such a basis, we began

to integrate resources along the industrial chain, to promote industrial cooperation and to build a sustainable

ecosystem. In the future, we will further facilitate value sharing and cooperation functions of the ecosystem,

collaborate with three core partners and integrate three major industrial resources. We will also perform the six

major social responsibilities and strive to realize sustainable development of enterprise, industry and society.

Product competitiveness

Ecosystem 1.0Ecosystem 2.0

Ecosystem 3.0

Responsibility competitiveness

Market price oriented

Industry cooperation oriented

Social innovation oriented

Social value

Enterprise competitiveness

08

The value in Mengniu sustainable cycle has gone beyond the social responsibilities of a company. It

has formed an ecological environment for the mutual promotion and co-existence of enterprises and

stakeholders and has established a new mode for social issues and innovation.

- Yu Zhihong, Chief Editor of China WTO Tribune

Industrial competitiveness


09

Core meaning of social responsibility management

In Mengniu, we integrate our social responsibilities in routine operation and management, hoping to build a

sustainable ecosystem, create social values and promote sustainable development, through innovations in corporate

social responsibilities and cooperation with partners.

We expect to build a sustainable ecosystem and to realize the vision of becoming a

"consumer-oriented, innovation-led nutritious and healthy food company".Management

goals

Based on food safety: Safety and quality of dairy products are essential to all work;

Led by product innovation: Through innovations, Mengniu focuses on and leads

consumer needs;

Driven by responsibility: Mengniu integrates resources in the ecosystem through

project-based operation;

Measured by social contribution: Contribution to society is the touchstone to

evaluate company operation and management.

Management principles

Management measures

Continuous innovation: Supported by sustainable ecosystem, Mengniu expects to

innovate its practices in performance of social responsibilities;

E�cient management: Mengniu facilitates the concepts of social responsibilities and

integrates it in company operation and management;

Transparent communication: Through frank communication, Mengniu wins the

understanding, recognition and support of stakeholders.

Public A�airs Management System

Party A�airs Management System

Information and Innovation Development System

Strategy Management System

R&D Management System

Market Management System


Milk Sourcing Management System

Operation Management System

Public A�airs Management System

Human Resources Management System

Party A�airs Management System

Finance Management System

Operation Management System


Milk Sourcing Management System

Quality Safety Management System

R&D Management System

10

Organizational systems of social responsibility

On basis of its Social Responsibility Committee, Social Responsibility O�ce and social responsibility liaison o�cers of existing

business systems, Mengniu has established, step by step, a complete and e�ective social responsibility organizational system

with clear rights and liabilities and collaboration between all levels. Through these e�orts, Mengniu has realized a three-level

linkage mechanism covering the headquarters, business systems and subordinate companies.

The Social Responsibility Committee is an important organizational guarantee for Mengniu to promote sustainable

development. The Social Responsibility Committee is directed by Chief Executive O�cer of the Company, with principals from

all systems as its deputy directors. It is responsible for strategic development directions of corporate social responsibilities,

the supervision of the implementation of social responsibility activities and performance evaluation. The Social Responsibility

Committee is supported by a Social Responsibility O�ce which is responsible for coordination of activities of work groups

under the Social Responsibility Committee. Focusing on the major domains in social responsibilities, Mengniu established

work groups under the Social Responsibility Committee, and invited its professional partners as consultant of the work group,

in order to realize cross-system and cross-�eld collaboration within and outside the company.

Social Responsibilitycommittee

Social Responsibility O�ce

Community Involvement and

DevelopmentProduct and Service

InnovationLow-carbon and

Green DevelopmentE�cient Operation and Management

Food Safety and Health

Employee Care and Development

Work Group of Social Responsibility Committee

Professional Partners







11

Materiality analysis

Company strategy and key operation

International standards on social responsibility

Macro-policies and background

Concerns of stakeholders

In�uence on company: strategic importance, in�uence on business

In�uence on stakeholders: social trends, importance of issue to stakeholders

Examined by company leaders

Examined by business systems

Examined by experts of social responsibility

Con�rm key issues in various �elds to promote social responsibility activities

Identify issues of corporate social responsibilities, analyze its nature, and formulate strategies on the implementation of social responsibility issues

Turn a social responsibility issue into speci�c and feasible targets, to facilitate its implementation

Carry out project-based management and facilitate project implementation by applying "revolutionary innovation, e�cient of management and transparent communication"

Encourage stakeholders to actively participate and boost the realization of goals

Quantify and rate the implementation of social responsibility issues and make improvements on basis of evaluation results

实质性议题

Engagement in disaster

relief

Environmental protection

Capital and asset

operation Sales quality management

Legal compliance

Employee care Environment

management systemNutrition

standard Factory quality

management

Ranch quality

management

Service innovation

Employee development

Supporting education

Green ranch

Green Storage &

Transportation

Product Innovation

Employees’ Interests &

rights Mutually-bene�cial

Partners

Implem

entation and Evaluation

Issue Identi�cation

Identi�cation Examination Con�rmationOrdering

12

Stakeholders Expectation Communication and response channels

SuppliersOpen, fair and just procurement

Honesty and faithfulness

Con�dentiality of information

Supplier conference

Rating management of suppliers

EnvironmentEnvironmental protection

Energy saving and emission reduction

On-line monitoring

Microblog

City managersMutual bene�ts

Mutual improvement

Distributor conference

Decision-making Management Committee

ConsumersSafe and healthy products

Smooth communication channels

Corporate microblog

Corporate Wechat

Governmental and regulatory

organizations

Legal operation

Tax payment according to law requirements

Contribution to local economic development

Supervision and evaluation

Positive tax payment

Specialized meetings

Employee

Occupational health

Wages and welfare guarantee

Establishing platform for employees’ development

Balanced work and life

Manager mail box

Employee representative congress

Training course and communication

CommunityEmployment promotion

Local economic development

Creation of job positions

Boosting development of relevant local industries

Improvement of local infrastructure

Shareholders and investors

Annual report and announcement

Non-deal / Deal Road show

Maintenance and appreciation of assets value

Protection from operating risks

Exploration of new markets and opportunities

Stakeholder communication


13

Fully-enclosed transportation ensures raw milk safety

Xu Zhengqiang: I am a driver of Mengniu milk truck. Many people around me care passionately about raw milk transportation safety issues. However safe and reliable the raw milk may be, if any problem occurs in the transportation

process, it is hard to guarantee that products from the raw milk are of the �nest quality. Therefore, Mengniu has very strict

and speci�c requirements on raw milk transportation, which is known as the "4 ℃ and 24 hour delivery to plant" principle.

After raw milk is collected in enclosed workshop and loaded on the lorry, an employee will seal all valves and inlets of the

milk tank by an E-Seal, which will be opened and veri�ed by another employee when the truck arrives at the manufacturing

workshop. The E-Seal technology can protect the milk tank from being opened in the middle way and from counterfeit, so

that it ensures the raw milk is transported in a completely closed environment free of contamination. In order to guarantee

the freshness of raw milk, there are strict plans on routes and time of the milk lorries to guarantee the transportation process.

milk test indicators

including physical

and chemical testing,

microbiological testing,

and others stricter than

national standards

raw 59batches of products

receive plant quality safety

inspection

100First Pass Yield (FPY) milk sources provided by

scaled ranches and farms

Food Safety and Health1

100 94

13

15Full-chain Quality Management 19

Plant Quality Management 17

Ranch Quality Management 21

Sales Quality Management

14

1. Food Safety and Health

14

15

Full-chain Quality ManagementWith close cooperation with ranchers, raw material suppliers and community partners,

we ensure the quality and safety of dairy products throughout the supply chain with

close attentions to every single link from the farms to the plants, and to market.

Improve internal quality inspections on all links, including plant operation and �nal products

Improve admittance standards of suppliers and city managers to realize strict control over raw/auxiliary material quality

Ranch Plant Sales

Strict compliance with quality safety regulations

Strict compliance with Food Hygiene Law, Product Quality Law as well as other domestic and international laws, regulations and standards

Certi�cation of 4 major management systems, including ISO 9001, HACCP, ISO 14001 and OHSAS18001, as well as 3 major product certi�cations on organic food, health food and student milk

Involvement in formulation and revision of national quality standards on food and dairy products

Analyze quality risks and carry out quality tracking

Identify 11 quality risk sources and 39 risks points in milk sources, suppliers and production

Real-time track and monitor existing risks; study and predict future risks

Establish quality safety control and traceability system and trace full industrial chain

Establish and improve technical inspection speci�cations

Build a uni�ed laboratory inspection and examination system

Facilitate standardization and controllability of full industrial chain quality inspection process

Introduce top-level dairy product inspection technologies and management standards

Strengthen strict evaluation and quality inspection

15

16


Technology determines quality

Mengniu ensures the product quality safety at

its sources by introducing the internationally

advanced Arla Gaarden farm management

system from Arla Denmark to launch

standardized and scienti�c management of

Mengniu ranches.

Mengniu has established dual assurance of

quality inspection through introducing Asure

Quality, an authoritative third party quality

inspection institution in New Zealand.

Based on the cooperation with Denmark Arla,

Mengniu introduced its raw milk �ngerprint

spectrum technology, which helps to

e�ectively detect and monitor abnormal raw

milk so as to ensure 100% of raw milk is up to

standard.

16

Raw milk inspection

Ranch management

Quality inspection supervision


1717

Ranch Quality Management

Seed screening

4 inspections on purity,

cleanliness, germination rate

and water content

Planting environment3-dimension indicators of soil,

irrigating water and air

Scaled ranches

94% of Mengniu raw milk is

collected from scaled ranches

M engniu introduced Ar la

Gaarden ranch management

system from Arla Denmark

Careful planting

Scienti�c farming

Field management

4 regular guidance on sowing,

fertilization, weeding and

harvest

Quality seeds

Introducing high-quality

Holstein cows

Cooperating with specialized

cow breeding companies

Breding elite cows �t for

growing environment in China

Disease prevention

A specialized cow life management

area has been established

Professional veterinarians on duty

Veterinary drug inspection and

use rules stricter than national

standards

Feed management

Feed suppliers with high integrity are

uniformly introduced in

Strict feed storage standard

Regular inspections

Health monitoring

Specialized electronic records

were created for cows to maintain

intelligent record of cow information

Patent ear tags, pedometers are

used to keep informed of the health

conditions of cows all the time

18


18

Enclosed transportation

Strict observance of 4℃

and 24-hour delivery

principle

Milk collection

Technical service for farmers to jonitly ensure raw milk quality

Taking advantage of technology in cow and feeding

improvement, epidemic prevention guidance and others,

Mengniu built a technical service team to provide ranchers

with technical service through customized training system via

telephone, Internet and �eld visits in line with their practical

needs and acceptance level. By the end of 2013, Mengniu

technical service team has provided over 2,000 training

sessions to 30,000 dairy farmers.

Ton per Cow per Year

2008-2013蒙牛牧场规模化、集约化占比

50%

0%

100%

2008

51%

2009

57%

2010

70%

2011

77%

2012

85%

2013

94%

5

7

6

2008

5.7

2009

6.0

2010

6.2

2011

6.6

2012

6.7

2013

6.8

Statistics on Mengniu’s yield per cow from 2008 to 2013

Raw milk inspection and detection

59 raw milk testing indicators stricter than national standards

Mengniu introduced advanced �ngerprint veri�cation technology from Arla, to realize

rapid inspection of raw milk quality

Mechanized milking

80 position rotating disc

milking machines

Fully-automatic milking

robots

100% mechanized milking

Standardized process

Milk produced in �rst

three milking attempts is

discarded

Nipple disinfection

Mechanized automatic

milking

19

Plant Quality Management

Admittance of raw/auxiliary materials

Every material supplier is subject to strict

examinations

Field investigation, pilot production, site

evaluation, etc

Strict tests

Strict tests and improvements

on various indicators including

edibility, nutrition, popularity and

other indicators

Examination of raw/auxiliary materials

Under joint control of R&D and technology

management sectors

Raw/auxiliary material standard is to be decided jointly

on basis of product attribute

Process control, traceability and statistics

Project based operation

Build R&D teams with joint

involvements of suppliers and city

managers, etc

E�ectively identify and lead

consumer needs

Safe formula

In strict compliance with

international formula standard

Mengniu focused on studies on

dosing of main dairy material,

auxiliary materials and additives

Strict testing process

Purchase of raw materials and auxiliary materials

Product development

19

20


Inspections regardless of cost

Mengniu strengthens its capacity

of laboratory inspection and

tests. Once a pack of products

fails, all products from the same

batch will be traced

Full-process tracing

Every single product bears a bar

code for tracing

Information such as production

date, production line, work shift,

warehouse and milk tanks are

inspected in time

Production

Exit-warehouse

Retrieval mechanism

Specialized retrieval cards have been

in use

5-Level in-depth retrieval including daily, weekly, ten-day and monthly inspection as well as monthly evaluation

Identify and eliminate safety issues in time

Electronic night patrol inspection

Build scienti�c and sound electronic night

patrol inspection system

Patrol is scheduled once every 6 hours.

Whole-process video monitoring over

1,000 monitoring projects

Control over key process

Inspection is made over 9

processes, 36 monitoring

points and 105 indicators

Strengthen real-time control

over key aspects

As a leading enterprise in dairy industry with its insistence on the safety philosophy of "Without quality all is vanity", Mengniu strives to ensure product quality throughout the production

process, by strict control over materials, complete quality management systems, implementation of related work, improvement of R&D, and others. Quality safety is an essential social responsibility of an enterprise in the dairy industry, and we hope Mengniu makes good use of its demonstration e�ect and lead the sound development of dairy enterprises in China.

- Song Kungang, Director of China Dairy Industry Association

20

100%In 2013, Mengniu dairy products First Pass Yield (FPY) was 100%

2121

Sales Quality Management

Account control

All distributors are required to maintain timely records of

type, speci�cation and quantity of dairy products sold

Timely tracking of dairy products is realized to remind

city managers of replenishment

Timely tracking

Mengniu cooperates with China Mobile to

realize mobile phone base positioning during

transportation of ice-cream products

Tracking and veri�cation via mobile phones

during products ordering and transportation by

forwarding agents are realized

Disposal of discarded products

Products that have expired warranty or fails

inspection are strictly prohibited from sales

Uniform replacement of products for city

managers

Storage and transportation of �nished products

Quality of Sales

Tracking platform

Multiple platforms are established on basis of internet, mobile

phone sms and qr code

Keep consumers informed of Mengniu products

Cold chain

Coolers are placed in point of sales

Truck transportation is used to minimize

transportation time

Products are transported in an ideal temperature

of 2-6 celsius degrees

22


22

After-sales service

Nation-wide service hotline

O�cial microblog and wechat accounts

Response to consumer complaints in 24 hours

Plant opening day

Regularly invite consumers to

visit Mengniu plants

Organizing lectures on milk

related knowledge

Consumer feedback

Mengniu has established standardized process and policies in

place on every link of dairy product sales, and carries out strict

management plans over all details, such as product display.

- Gao Huqing, City Manager, Tianmen, Hubei Region of Mengniu

Sales Management System

2008 2009 2010 2011 2012 2013

Unit: Person time

470,245 454,622

620,849

770,198758,409

1,085,6481,000,000

600,000

400,000

200,000

800,000

Consumers received on plant opening days from 2008 to 2013

SKUs launched from

2008 to 2013

plus270or disputable product is

sold

prohibited0on privacy infringement

and loss of customer data

complaint0 research stations

postdoctoral2

Awakening youth rejuvenates the aged

Gu Erhui: I am a product manager of Mengniu. We are always concerned about health issues of the aged. For the sake of a

enjoyable life of the aged in their later years, we have made extensive investigations into their health needs and launched

an innovative product, Mengniu · Awakening Youth. It helps the aged build stronger bones, improve cardiovascular

functions and mitigate the impacts of chronic diseases to their well-being. We made great innovations in product functions

and provided sufficient Vitamin D and Casein Phosphopeptides (CPP), deep sea fish oil and phosphatide, which promote

easy absorption of calcium and realize e�ective intestines and stomach conditioning. In June 2012, Awakening Youth was

successfully launched and won great popularity and trusts among the elderly consumers.

For better and more comprehensive care to the elderly consumers, we also launched a series of activities in various forms. For

instance, in August and September of 2013, we launched a Mengniu Awakening Youth activity themed as "Stay young with new

bone energy", to which we invited professional physicians to provide bone mineral density tests, lectures on rational calcium

supplement and shows of Taichi Ball Game to elderly consumers from 24 communities in 9 districts of Chongqing City.

Awakening Youth is more than providing elderly consumers with nutrition, and it also leads them to good patterns and

attitudes to live!

Products and Services Innovation

2

23

25 Product and Service Innovation System 29

Meeting Basic Nutrition Needs 31

Specific Nutrition for Different Age Groups

24

2. Product and service innovation system

24

2525

Product and Service Innovation System

We strive to provide consumers with healthy and considerate production based on all-encompassing mining of consumers'

needs and the establishment of Mengniu's product and service innovation system through a platform for cooperation with

Internet-based organizations, suppliers, city managers and scienti�c research institutions.

Consumer needs-driven innovation

With consumer needs as the longstanding core of our operation, we build R&D teams together with partners. Through full

insight into consumer needs, we have established complete production innovation procedures to provide consumers with

satisfactory products.

26


Convenient service channels

We have established a service platform based on city managers and e-commerce by building a product distribution network

and diversifying product marketing and selling to provide consumers with convenient and a�ordable products.

3,652 front-line salespersons

18 major sales regions 1,720,000 points of sale

Market survey to understand

consumer needs

Hearing opinions of suppliers/city

managers

Learning from domestic and foreign

experiences of nutrition researches

Project approvals

Integrating supplier and partner

resources

Building new product R&D team

Project-based operation

Conducting studies into consumer

needs

Extracting information innutrition

needs

Building ideas on product

development

Focusing on product innovation and

positioning

Introduction of specialized

technologies, experiments

Authoritative nutrition conception,

conversion from concepts to product

Innovating marketing modes

Cooperation with city managers

Collecting consumer feedback on

new products

Improving new product marketing

Inspections and tests on nutrition

balance, applicability and

anaphylaxis of new product

New product improvement

Review and con�rm by third party

1 2

5

3

6

Insight into consumer needs

4 Product development

Focusing on creative ideas

Evaluation and con�rmation

New product initialization

Launch of new product

26

Cooperating with 3 leading

e-commerce operators1 e-commerce platform

supporting omni-channels

Milk powder

2727

Plant opening day

As one of the first national industrial tourism models, we stick to the "opening day" activities, and invite media,

opinion leaders and consumers to visit Mengniu's plants and ranches, so that we show consumers a real and

transparent Mengniu through face-to-face communication.

Partners visited Mengniu’s plantsPrimary school students visited Mengniu’s plants

Your question, our responsibility

Mengniu invites all partners to participant in Mengniu's brand building efforts. Continuous improvement in

communication channels helps boost consumers' confidence. In 2013, we launched the innovative consumer

communication platform of "Your Question, Our Responsibility", which e�ectively promote the information transparency

and in-depth communication with our consumers.

In 2013, we received 1,085,648 consumer visitors during the opening days

28


28

We have set up Mengniu's official service hotline,

to respond in time to questions and complaints of

consumers over Mengniu's products and service and

to hear their voices.

Hotline customer service Micro-platforms

We have launched Q&A platforms in a variety of forms,

including Wechat, microblog and website, to respond

to and solve the concerns of consumers on milk.

Cumulative 267,090 interactions

with consumers

Cumulative 352,380 successful

human interactions

2929

We stick to the idea that rational diet improves fitness, and takes public health as our goals and provide the public with

diversi�ed products with various �avors and nutrition.

Meeting Basic Nutrition Needs

Mengniu's Suan Suan Ru builds close connections with consumers

in an absolutely new way based on analysis of diversified

psychology and needs of young consumers for nutrition, leisure

and fashion. We appointed Mayday, a famous rock band, as

its spokesperson and launched "Sour and sweet youth", and

sponsored a popular music reality show The X Factor on Hunan

Satellite TV to advocate new youth claims and awaken new vigor

of society.

Keeping leisure and comfort around

Based on extensive investigations into the needs and expectations in leisure hours of consumers of various ages, sexes and

habits, we strove to make products with new design and taste to cater for the public with healthy dairy products with various

�avors during their leisure times and hot summer days. Consumers can take both necessary nutrition and have a good time.

Mengniu’s Suan Suan Ru yells out sour and sweet youth

30


Starting a day o� with Mengniu breakfast milk

Nutritious breakfast provides human body with 60%-70% vitamins and minerals need every day. However, busy lives make

it harder to �nd the time to have breakfast. We actively developed Mengniu breakfast milk with various �avors and portable

packages, and added a variety of grain essence and dietary �ber, in order to make up the "nutrition de�ciency" due to the

skipped breakfast.

Maintaining a natural and balanced lifestyle everydayAccording to statistics, average milk consumption of

Chinese people is less than 1/2 of world average, and

the resulting acalcerosis attracted extensive attentions.

We developed pure milk and yogurt products to help

consumers keep �t by maintaining intestines and stomach

dynamics and providing them with all necessary protein

their bodies need.

Invoking the Rio 2 image of the popular little bird on the package of its breakfast milk, Mengniu hopes to advocate

young people wake up earlier and pass on the healthy life style. By the end of the activity, over 54,690,000 consumers

participated in the campaign via PC and mobile devices, covering 3,300,000 independent consumer QQ numbers

and �nally 158,000 consumers reached the �nal end.

We cooperated with Universal Picture Corporation

and combines the "Minions" in Despicable Me 2

with our new products and built the brand of "Cute

Big Eye". With milk and banana, Big Eye presents

consumers with tasty milk and also inspires their

joyful and healthy mindset to act cutely.

Morning energy in cities

Cute Big Eye comes to play tricks, you must be happy

30

3131

Specific Nutrition for Di�erent Age GroupsWe have carefully studied the nutrition needs of various consumer groups including children, middle aged and elderly

consumers and people with lactose intolerance, by which we researched on more dedicated and diversi�ed products to cater

for nutrition needs of special consumer groups.

Making milk more suitable for children

We focused on nutrition needs of children in various periods of growth, in order to speci�cally provide children with nutritional

supplement. We selected fine quality raw milk and employed professional experts in children nutrition industry to develop

special milk for children. We specially added DHA algae oil, prebiotics, taurine and other healthy nutrients that could satisfy

international standard, in order to meet demands of children for digestion, bone development and intelligence growth.

Guaranteeing student health with student milk

We have set up an exclusive ranch to produce student milk with an even higher standard. We ensure each child has safe and

nutritious milk based on stricter standards at all links of student milk, including propaganda, delivery, storage, distribution and

recycling.

Awakening youthful energy

We developed high-end functional dairy products for middle-aged and elderly consumers, which guarantees calcium absorption

by adopting special formulas and helps them dealing with health problems due to osteoporosis and cardiovascular diseases.

32


32

Caring for those with lactose intolerance

Since Mengniu Xinyangdao employed internationally advanced EHTTM

technology, nearly 100% lactose had been hydrolyzed, which is much higher than

similar products. Therefore, nutrition could easily reach every part of the human

body and significantly reduced the gastrointestinal discomfort of such a consumer

group with lactose intolerance, enabling them to enjoy a feast of milk.

Living a higher-quality life

With improvement of life quality and awareness of health, consumers tended

to be ever demanding on quality of dairy products. We developed the first high-

end milk of Mengniu, of which the raw milk was taken from Milk Deluxe exclusive

organic ranch. We implemented dual certification of Chinese national standards

and EU standards throughout the industrial chain and carried out complete source

tracking. The content of high-quality natural lactoprotein in every 100ml Milk Deluxe

milk was as high as 3.3g, which is 13.8% higher than required content by Chinese

national standard, so that we could cater pursuit of consumers for high quality both

in nutrition and technologies.

Working overtime, staying up late, poor air quality and lack of exercises...... Mengniu

had deep understanding of health troubles of office staff. So Mengniu developed the

Champion which is the first product in domestic market with bifidobacterium number

of 107/gram. Champion marked a new era of dual health care effects of "adjusting

intestinal flora and improving immunity". With various activities at "World Sleep Day"

on March 21st, "World Digestive Health Day" on May 29th and "National Fitness Day"

on August 8th Champion hoped to advance the healthy lifestyle by spreading related

ideas and creating a stimulating intellectual atmosphere for national fitness.

Do you know?A certain group of people in China cannot drink milk

for lactose intolerance caused by personal physical

problems of nature or nurture. Mengniu made

innovations and developed the Xinyangdao product

to cater for nutrition needs of such consumer group,

and realized the breakthrough of transforming milk

from being "nutritious" to "easily assimilated".

In 2011, Mengniu Xinyangdao was granted the

"IDF Award of Dairy Innovation" which is the most

authoritative award in the dairy industry.

Champion, new concept of health life

33

With YASHILI, milk powder business is brought to a new height

Li Xianming: I am a marketer of YASHILI milk powder. We are pleased to see that Mengniu kept YASHILI in independent operation after the acquisition in 2013. The leading position of Mengniu in domestic market and the strategic resources provided by COFCO as a large state-owned enterprise injected new energy to YASHILI's business development.

Our milk powder business will well supplement and improve Mengniu's product line, providing consumers with a wider portfolio of healthy products. After the acquisition, relying on the advantages of Mengniu in its raw milk chain management and international resources, YASHILI's milk powder quality was further improved. I could feel it intuitively that our products were better recognized by consumers and our business was also developing fast. I wish YASHILI could work together with Mengniu to provide healthy and safe milk power products to more Chinese babies.

Efficient Operation and Management

3

33

net pro�t

1.631tax paid

2.711corporate market value (as of

December 31, 2013)

52.761 billion RMB billion RMB billion RMB billion RMB 43.357business income

35Strengthening Compliance Management 36

Improving Management E�ciency 37

Integrating International Resources

34

3. E�cient Operation and Management

34

3535

Strengthening Compliance ManagementThe compliance with laws and regulations in business operation is the basis for sustainable development. We have carried

out inspections and evaluations on internal control, in accordance with related requirements in China and SEHK, to ensure

that the internal systems operate in full compliance.

Operational risk management

Perfecting system building

Standardizing business operation

Conducting risk assessment over operation and management of 12 major systems and identifying 340 risks points.

Enacting detailed precautions and countermeasures against long-term major risks.

Enacting series of anti-corruption regulations and policies, including the Mengniu Disciplinary Inspection and Supervision

Management System, to ensure integrity and compliance in corporate operation.

Signing Anti-commercial Bribery Contract with Mengniu’s suppliers to regulate the operation of industrial chain.

Establishing a Disciplinary Inspection and Supervision Office to strengthen anti-corruption practices by dedicated

organization.

Implementing SAP project, employing the management information systems to regulate business process and review

systems, and integrating standardized operation into corporate management.

36


36

Building image as industrial model

Building an images of healthy brand

Spreading outstanding management philosophy

Rationalizing internal procedures

Promoting practical experiences

Fostering innovative culture

Mengniu excellent operation mode

Enhancing executionImproving management Building image

Improving Management EfficiencyWe have realized in depth that to improve the operation capacity of Mengniu, we are in more needs of conceptual

breakthrough than funds and investment in technologies. We targeted Mengniu as an internationally leading company,

and for this purpose, we summarized the best practice of Mengniu in management and operation, established the

Mengniu Excellent Operation (MNWCO) mode, and have worked out innovative IPO management approaches and

contributed to implementation of corporate development strategies.

In 2012, we introduced the SAP system to make our supply chain management more effective and efficient

by promoting IT application integrating the information platform through the entire industrial chain. Based

on macro-data analysis, we can optimize the operating cost structure and improve our social values and

competitiveness.

Integrating information platform throughout the industrial chain

Improving management systems

Fixing management modes

Realizing lean management

3737

Integrating International Resources

Our strategic partners

Asure Quality: building safety certification covering entire industrial chain

In April 2013, Mengniu entered into a cooperation framework agreement with Asure Quality, a state-

owned enterprise in New Zealand and world famous food quality and safety certi�cation organization.

Arla Foods: introducing international leading ranch management system

In June 2012, an agriculture development agreement was signed by and between the ministry of

agriculture of both China and Denmark, by which the "Sino-Denmark Dairy Technology Cooperation

Center" was established. The project was jointly undertaken by Mengniu, COFCO and Arla Foods.

COFCO: introducing its industrial chain management

In 2009, COFCO became the single largest shareholder of Mengniu.

Modern Dairy: strengthening supervision over raw milk quality

In May 2013, Mengniu increased its shareholding and became the single largest shareholder of China

Modern Dairy Holdings Ltd..

Danone: improving R&D technology and collaborating on the low-temperature

yoghurt market

In May 2013, a cooperation agreement was signed among COFCO, Mengniu and Danone.

38


38

An improved and more comprehensive Mengniu product category and portfolio

Liquid milk Ice cream Milk powder Other dairy products

Business income (in RMB million)441.6

2012 130.332,336.0 3,171.5

2013 253.52,177.337,902.8 3,023.4

This transaction is fully in line with Danone's strategies: By increasing shareholding in

Mengniu and enhanced cooperation, Danone will further explore the huge potential in

Chinese yoghurt market. Our cooperation made us both winners. Through the cooperation,

we can provide consumers with healthy and tasty products and inspire the great potential in Chinese

yoghurt market, and we can also let more Chinese consumers know Danone brand.

- Franck Riboud, President and CEO of Danone

Extending industrial chain


393939

40

4. Low-carbon and Green Development

Low-carbon and Green Development

COD emissions

ton468investment in

environmental protection

12.2ton standard

coal/ton

overall energy consumption

per ten-thousand-yuan output

0.24 ton4.67comprehensive water

consumption per ton

product

New-type environment-friendly ranch

Wurenqiqige: I am a heifer breeder at Fuyuan Farming in Togtoh Ranch. The Togtoh Ranch is located in Togtoh County of Hohhot, Inner Mongolia and is an innovative ecological ranch designed on basis of environmental carrying capacity. There are 20,000 Mu of meadow around the ranch, so that the environmental capacity is utilized for the disposal of feces produced at the ranch. The grassland is mainly used to grow silage corn, to provide cows in the ranch with roughage. On the basis of local environmental conditions, we estimate that the optimum number of cows to be raised is 5,000. With this farm scale, the farm can realize economic bene�t of large scale farming and will not cause pressure to the local environment or a�ect the normal lives of local residents. We develop circular economy at the farm and collect cow dung for use to produce organic fertilizer. The yearly production of solid organic fertilizer is about 30,000 tons and the production of liquid organic fertilizer is about 90,000 tons, which are used for growth of silage corn and ordinary farms in the local places, in order to develop the local ecological agriculture and to realize harmony between human and environment.

4

4040

RMB

million

41Improving Management Systems 43 Green Ranch 45 Green Plant 47

Green Storage and Transportation

414141

Improving Management Systems

Strengthening management

We introduced the ISO 14001 Environmental Management System in 2002 and established organizational systems in

the Company and incorporated various work into environmental management. By 2004, we had established a complete

environment management system and had applied the "green" concepts to each production and operation process. We

worked with all partners on the industrial chain to jointly cope with climate changes, to build our "CSR competitiveness" in

low-carbon economy and to realize harmonious development of both the company and environment.

Improving system building

In 2007, Mengniu began to implement its environmental protection system.

From 2008 to 2010, on the basis of updated national regulations, policies and standards on environmental protection,

Mengniu had established a complete set of scienti�c and reasonable management systems.

In 2010, Mengniu established a new emergency response management system and strengthened its environmental

management and control systems on sub-quality products, to improve its management systems.

Establishing organizational system

We have established a three-tier safety and environmental protection group including headquarter, functional system,

business divisions and production sites , which takes charge of environmental protection activities.

42


4242

Monitoring the implementation

Strengthening procurement review

Mengniu incorporated energy-saving and emission-

reduction practices and the use of environmental friendly

materials by its suppliers into its review.

Improving monitoring measures

Mengniu worked out its energy management system and

environmental protection management system.

Mengniu deployed computer systems to monitor

and control the energy consumption and emission of

contaminants, in order to realize standardized statistics.

Mengniu realized online monitoring over emission at

the source of contamination and established network

connection to the numerical control platform of local

environmental protection bureau.

M e n gn i u s t re n g t h e n e d m a n a g e m e nt o n e n e rg y

procurement and use and its energy statistics met national

requirements.

Improving environmental protection awareness

Enhancing education on environmental protection

Mengniu launched a series of promotion campaigns

on energy conservation and emission reduction and

strengthened its conservation-oriented company culture.

Mengniu carried out regular education and training

programs to its employees on energy consumption

measurement and statistics as well as the management of

pollutant emissions.

Mengniu strove to improve the professional skills of its

operators operating energy-consuming equipments and

workers managing pollutant emissions.

43

Green Ranch

Biodiversity protection

We took protective actions on biodiversity and have built the Mengniu Natural Museum of Grassland. We began

the grassland restoration program and made specimen. The museum is open to consumers and the public, to

call for social concerns on biodiversity protection.

43

Green selection ofsite

Best use of environment capacity

The environment capacity should be made the best use of to eliminate

influences on people’s lives and to realize harmonious coexistence of human,

cow and nature.

Green construction

Scienti�c measurement and calculation of environment capacity

Mengniu is devoted to balance between ranch production and environmental

protection. By properly determining the farm capacity, Mengniu can effectively

mitigate pressures on environment.

Green operation

Turning wastes into valuable materials

Mengniu adopts specialized equipment to realize treatment of contaminants

produced on the ranch and transforms them into electric power or organic

fertilizer, to realize circular economy.

44


Do you know?The cow dung produced by a cow in one year

can be used to generate 1,000 kilowatt-hour of

electric power, which can power �ve household

refrigerators in one year.

44


45

Green PlantIn 2010, 29 production units under Mengniu successfully passed the certi�cation of environment management systems.

We invested and carried out energy-saving and emission-reduction technical transformation on production process with

large energy consumption and emission of contaminant. We have included the environmental protection performance

of its suppliers into the supplier review rules, by which we expected to help suppliers to improve their capacity in

environmental protection, to lead the development of the entire industrial chain and to practice the environmental

protection responsibilities.

Green construction Green production

45

Mengniu implemented green construction and

all newly built projects are efficient in energy

consumption, land use, and water and material

consumption

All new plants are built to realize integrated and

intensive production and the three workshops are

built as one large workshop with shared energy and

power system

Mengniu optimized plant layout to utilize natural

lighting in the daytime and LEDs in the nighttime

M e n g n i u e v a l u a t e d a n d r e v i e w e d e n e r g y

consumption indicators during the production

process to facilitate implementation of green

production

Mengniu gradually utilized its solar power generation

technologies, to cut down power consumption and

to reduce carbon emission

Mengniu deployed gas-fired boilers in replace of

coal-�red boilers, to increase thermal e�ciency and

to reduce dust emission

46


Environmental-friendly packing materials

Packing

Recycle

Mengniu selected "regenerated forest"__Tetra

packing materials, certi�cated by Forest Stewardship

Council (FSC), so as to avoid "one-off" use of forest

resources

Mengniu used 3 billion recycled packs every year,

equivalent of 1 million trees saved

Mengniu established a 10,000-ton sewage treatment

plant, realizing yearly sewage treatment of over 15

million tons

Mengniu released real-time monitoring data on

o�cial website, to accept social supervision

46


Materials

Green Storage and Transportation

In transportation and retail sales, we made the best of our forwarding agents and terminal partners to build up a

complete green industrial chain. We cooperated with logistic agents to build an information technology platform, to

optimize the modes and routes of logistics, to reduce energy consumption and emission of greenhouse gases during

transportation and to contribute to a clean sky.

47

Joint delivery

We advocated green and low-carbon logistics. In cooperation with freight agents, we

advocated integration of social logistic resources and carried out joint delivery to cut

down social logistic costs. We cooperated with logistic companies including CSL, COSCO

LOGISTICS, YCIL and Zhongpin Cold-chain Logistics, to carry out joint delivery in many

regions in China. In future, Mengniu will cooperate with other fresh fast-moving consumer

goods (FMCG) companies to realize joint warehousing and delivery services in inter-

provincial distribution center.

Low-carbon transportation

We are the �rst dairy company in China to adopt railway transportation. In comparison

with road transportation, railway transportation is more friendly to the environment.

Mengniu has consecutively entered into strategic partnership with Beijing Railway Bureau

and CRCT, by which �ve special freight trains were launched and most dairy products of

Mengniu sold to East China and South China were transported by railway to Shanghai and

Guangzhou and then distributed to adjacent areas.

Sales at the place of production

In order to ensure that consumers can drink the freshest milk, we adopted the operation

mode of "Locally produced products are sold locally". We have established 31 production

bases and cover 1,720,000 points of sales throughout China, to effectively reduce

transportation distance and carbon emission.


We are the �rst in China to raise the idea of “paid packaging recycling”, installing packaging recycling machines

in supermarkets. Consumers can get a certificate for recycling and a ticket for a Mengniu event after putting a

certain number of packaging into the machine. This campaign has activated the “paid ecology”, a model aimed

to encourage public participation in environmental protection. By the end of 2013, we, together with Tetra Pak,

recycled more than 40,000 tons of packaging materials, which could be used to pack 4 billion packs of milk or circle

the earth by ten times.

Mengniu put in use 20,000 custom-made freezers,

each of which can save 180 kilowatt-hours worth of

electricity every year, thus lowering users’ power

costs by over 30%. These freezers together can

save up to 3.6 million kilowatt-hours every year,

an amount enough for 3,000 households’ power

supply for a whole year.

Recycle packaging to advocate green consumption

Green Cold Chain

tons Pack 4 billion

packs of milk or circle the earth by ten times

of recyclablepackaging materials

40,000

48


can be used to

20,000 custom-made freezers save up to

3.6 million kilowatt-

hours

49

Successful self- development in MengniuYu Xiaoqing: I am a CSR manager at Mengniu and my career development is in line with Mengniu’s development. I joined Mengniu, a big family in my eyes, in November 2003. At the beginning, I was an ordinary worker at the production line. Thanks to Mengniu's extensive training and talent selection philosophy of appointing people by abilities, I won various occupational training opportunities and worked on many positions. In the past 11 years, I have worked in many cities, such as Hohhot, Tongliao, Baoji, Taian and Beijing and on many positions, including normal worker, HR clerk, HR Manager and O�ce Manager, and �nally I became the CSR Manager. Mengniu has provided a platform for my career development. As my personal career developed, I also got married and had a happy family.

Employee Care and Development

employee

satisfaction rate

74percentage of employees

with 5-year or longer service

average training hours

per employee per year

23.79percentage of women in middle

and senior management

36.9224.22

5

49

hours

Employee's Rights and Interests 51

Employee Development 53 Employee Care55

50

5. Employee Care and Development

5050

5151

Every day 70 million consumers consume Mengniu's products and over 30,000 Mengniu employees make it happen. We

support their work by providing safe and healthy working conditions and comprehensive welfare.

Employee's Rights and Interests

Transparent communicationMengniu has established its labor union, special President mailbox and employee Wechat group as communication channels

Mengniu enhanced internal communication on issues including payment system and employee welfare

All emails from employees to senior managers were replied in time by the senior managers in person

Equal employmentWe adhered to equal and normative employment

We prohibited any form of employment discrimination

We forbade the employment of child labor and forced labor

We employed 38,000 sta�

Our labor contract concluding rate reached 100%

We strengthened the occupational safety and health management for employees

We carried out physical examinations to employees with high risks of occupational diseases

We established health records for employees

Occupational safety and healthWe acquired the OHSAS18001 certi�cation

We established a complete prevention mechanism against occupational diseases

Comprehensive welfareWe paid for the �ve insurance and one housing fund for our employees

We o�ered equal pay for equal work regardless of gender

We were in a leading position in guaranteeing our employees’ income increase in line with the company’s development

Employee's rights and interests

52


We had 25,620 employees under the age of 40, accounting for

93.2% of total employees

Our male/female

employee ratio was

about 1:1.3

We newly employed

6,270 sta�

Employees with college or above education account for

60.49 % of the total employees

Restricted Share

Better-than-expected

PerformanceExcelle

nce

Board of Directors/ Bene�t

Sharing/ Target-reaching

Individual Performance

5252

Fivefold incentive systemsRestricted shares granted as bonus to employees with

excellent performance and general evaluation

Extra bonus on basis of outperformed

sales to be granted if business goals

determined by the Board of Directors

have been accomplished

Bonus to outstanding

employees and teams on

basis of performance in the

year

On basis that the yearly

overall business goal has

been accomplished, extra

pro�t sharing bonus is to be

granted to senior managers,

employees and responsible

persons in major sales regions

Employee has

accomplished his/her

performance goals of the

year


5353

We took employees’ personal development as a driving force for corporate development. In consideration of employee

differences, we provided employees with personalized development platform, to give full play to their innovation and

capability.

Employee DevelopmentPresident

Senior m

anagement

General

managem

entEm

ployee execution

Professionals Management

Primary

employee

team leaders

Employees

Senior supervisors, Supervisors

Advanced employees

Senior managers, M

anagers

Senior employees

General m

anager, Chief inspectors

Expert, employees

Senior general manager, Senior directors

Deputy president

Sound career development path

Mengniu has established development paths respectively for technical talents and

managerial talents.

Mengniu encouraged employees to choose development path in accordance with their

actual conditions and personal interest.

In 2013, all the employees accepted regular performance and career development

evaluations.

Complete training system

Mengniu provided training programs to all corporate employees and security personnel

on special technologies, management improvement and human rights protection.

In 2013, Mengniu invested over RMB 19 million yuan in training programs and the

average training time for employees was 23.79 hours per employee.

Tutor system for new employees

Mengniu assigned veteran colleagues to serve as tutors of new employees to help them

quickly get adapted to team work.

54


54

Conducting training programs with partners

The secret in fast development of Mengniu lies in its talent training system. Mengniu established its Mengniu 100

system covering trainees, grass-roots leaders, senior managers and core backbone managers, to whom Mengniu

provided corresponding training resources. When Mengniu trained talents for itself, it also laid a solid base of

talents for the entire dairy industry.

Junior

MT

GT

Mengniu 100

Mengniu 100

Mengniu 100

Mengniu 100

TOP20

Mengniu

Business management Grass-roots

employees

leadership skills

Professional skills

Managem

ent capability

We cooperated with our partners to carry out various training programs. For instance, we cooperated with Cheung

Kong GSB and AACSB International to provide senior managers with training programs on management. We also

cooperated with partners on the industrial chain, such as Tetra Pak, to provide training programs on development

trends of technologies and management in the dairy industry and practical skills. Through these e�orts, Mengniu

improved the knowledge and skill of our employees.

Mengniu 100 talent cultivation system

5555

Employee Care

Each Mengniu employee was supported by a big and warm family. They were proud of the supports from

family members, cares from colleagues as well as happy life and work.

Comfortable working environment

We provided employees oriented working environments by providing

leisure bar, sports ground and Yoga room etc. There are green plants in

offices and corridors and Mengniu also provides shuttle buses for the

convenience of employees

Colorful leisure activities

We launched recreational and sports activities in various forms, including

basketball games and badminton games

We encouraged employees to make better balance between work and life

Personalized care

We provided timely help and support for employees

Make sure that employees feel the warmth of family

56


56

As a member of Mengniu, my wife and I were very lucky to join the group wedding ceremony for new couples.

We received blessings from leaders and colleagues. How touching and unforgettable that is. I work in Mengniu

and get married in Mengniu. Through these years, I can feel the strong love from the company.

- Wang Hong, Director of No. 1 Business Sector, Milk Sourcing Management System

Cozy working environment

We set up leisure bar

Installed air

conditioning and

broadcasting facilities

O�ered free washing

services of uniforms to

employees

Provided personal

protective equipment

and emergency drugs

Rich corporate cultural activitiesWe hold nationwide sports events, summer cultural festivals and "Happiness

Express Cup" basketball and volleyball games on a regular basis.

Personalized careWe offered timely condolences and economic

supports to employees su�ering major emergent

adversity

We visited retired employees during holidays

We provided female employees with free

physical examination once every two years and

provided restroom for pregnant women

We created platforms for young employees to

make friends with the opposite sex and holds

group wedding ceremonies for the young lovers

58

6. Community Involvement and Development

schools were benefited

from our activities

400total charity investment in 2013

6,832 partners58

Mengniu helped better our life

Mimaciren: I am a teacher in Dongba Primary School in Gangga Town, Dingri County, Rikaze, Tibet Autonomous

Region. The primary school is in very poor conditions. The classrooms have fallen into disrepair and we have even

troubles in getting water. However, things began to change after Mengniu sent a team to help us. They built a

warm duty room for us, but also built a water storage tank with 5-ton capacity. What’s more, they brought to

us winter clothes which our impoverished students were in need of in the past winter. In addition, they o�ered

generous help to over one thousand households in seven villages around the primary school. The kind help from

Mengniu and its partners totally changed our lives, for they brought us hope and love.

6

58

18.075 RMBmillion

plusvillagevolunteers

participated participated in the charity

activities organized by

Mengniu

Community Involvement and Development

The Development of

Mengniu’s Public Good Cause

Anti-haze Campaign

Give a Lecture in My

Hometown

Community Care

59 61

63 64

5959

2003

Mengniu actively participated in public good activities and o�ered the best help to social groups in need.

Besides, Mengniu donated �nancial and material resources to solve as many social problems as possible by

its own power.

The Development of Mengniu’s Public Good Cause

Supporting public good cause by donations in cash and in kind

We have paid continuous attentions to the cause of public good, and made devoted e�orts to create a harmonious society

and community since Mengniu was founded. Through the past 15 years, we have witnessed the contributions of Mengniu to

community development and all e�orts made in exploring new modes of public good activities.

On this basis, we strove to build a social responsibility platform of "You are the �nishing touch". With public good project as

the bond and partners as core participators, Mengniu brought its employees, city managers, suppliers, media and celebrities

together in carrying out practical, measurable, sustainable, socialized and re�ned social responsibility activities and played its

social roles throughout the industrial value chain.

2001-2007

We donated cash and milk worth of RMB 12 million in the battle against SARS.

We also donated pure milk worth of RMB 30 million to 1.2 million teachers throughout China.

2001

2002

Mengniu donated RMB 590,000 to people su�ering from the indian ocean tsunami.

We carried out the campaign of "drinking one pack of Mengniu milk means donating one cent to the development of Beijing".

Invested RMB 10 million in establishing Hohhot milk risk foundation.

Mengniu launched a campaign of “A catty of milk a day makes Chinese strong and healthy" and donated milk to one thousand primary schools in poor areas in 31 provinces and autonomous regions in China. We also named and sponsored the "Between Cities" sports campaign in order to support nationwide sports.

Mengniu named and sponsored the Top Chinese Music Awards to support the cultivation of music talents.

2005

2006

2007

Mengniu sponsored the campaign of "orphans in Inner Mongolia returning to Shanghai to look for their parents".

Mengniu donated to the construction of a Hope Primary School in Dalian.

60


60

2008

2009

2010

2011

2013

2012

Making joint efforts for the public good with partnersThe effor ts made by Mengniu

were far from enough. Mengniu

then began to join hands with

stakeholders to carry out the public

good practices to contribute to a

happy China.

Paying constant attention to public good cause through establishing platforms Through continuous efforts in public good, Mengniu found that simple

donations in cash or in kind would not solve the key social problems and

only by establishing a constant and complete public good system can the

key social problems be greatly reduced fundamentally.

2008-2011

2012-2013

We jointly donated RMB 10 million with Laoniu Foundation to assist people in South China suffering from snow disaster and launched the campaign of “Gensheng Philanthropy Home” activity. They also helped orphans, the single-aged and the single-disabled in the disaster-stricken area in Sichuan and established the Chinese Milk Love Foundation with China Children and Teenagers’ Fund to build an open platform aggregating all charity powers in the society.

Mengniu Ecological Grassland Foundation was founded.

Mengniu invested RMB 10 million in the construction of "digging wells in the drought-hit pasturing areas" project. By 2013, 35 wells had been constructed, bene�ting about 110,000 people.

Southwest China was hit by severe drought and Mengniu donated RMB 5 million.

Mengniu donated RMB 5 million to people su�ering from the severe earthquake in Yushu, Qinghai.

Mengniu launched a number of activities of "Mengniu's Love, Grassland Dream".

Mengniu launched the love gift campaign which attracted famous TV stars, Fan Shaoxing and Yang Mi, and large numbers of college students to join our volunteers’ group.

M e n g n i u j o i n e d i n h a n d s with 58 partners to carry out the campaign of "Looking for teachers with the most beautiful hearts in rural areas".

M e n g n i u d o n a t e d R M B 1 0 million and 10 thousand cartons of milk to people su�ering from earthquake in Ya’an, and sent a group of volunteers to the disaster-hit area.

Mengniu joined the campaign of "Looking for teachers with the most beautiful hearts in rural areas".


6161

The day of teachers with the most beautiful hearts in rural areas

Calorie exchange

Happy gifts

The campaign covered provinces　

Give a Lecture in My HometownOn the public good platform of "You are the finishing touch", targeted on the rural education, Mengniu launched its

"Give a lecture in my hometown" program. We invited a number of public �gures to give lessons to the children at village

schools. We hoped their knowledge and experience could help to broaden the vision of the rural children and bring them

dreams and hope for future.

In 2013, we hope that driven by the "Give a

lecture in my hometown" campaign, more

public �gures can return to their hometown and

give lessons to the teachers and students there, bringing

them new knowledge and opening a new window for

them to know the outside world. In this way, we can help

them grow up happily.

_ Sun Yiping, President and Chief Executive Officer of

Mengniu

Liang Chunshu, a typecast actor of Zhou Enlai

22

62


62

Employee

Government

Media

PartnerSchool

Stud

en

t

Teacher

Promote the qualityof education

Improve school environment

Rural education

Looking for teachers with the most beautiful hearts in

rural areas

Happy gift

Give a lecture in my hometown

Calorie exchange

Broaden visions of teachers and students

60

Lao Lishi, champion of diving at the Athens Olympic Games

Hou Honglan, a famous ballet dancer

Shen Xingyun, �rst chief director of the Chinese astronaut brigade

12

Toy captain band

30 public �gures were invited to give lessons at village schools

We gave 12 major courses including sports, �lm and commerce, etc

thousand teachers and students bene�ted from the campaign

6363

Anti-haze Campaign

The "anti-haze" public good experiencing campaign is an important part of the "making the sky blue and

the land green" fund public good campaign launched by Mengniu. We called for social forces to take actions

against haze, investigate into the biodiversity and carry out anti-haze summer camps. We hoped to pool the

efforts from all ranks in the society and let blue sky and green land come back.

40Volunteers joined the anti-

haze campaign in Shanghai

Chongming Dongtan

Nationnal Nature Reserve.

The volunteers planted trees

and picked up the rubbish in

the Kubuqi Desert in Inner

Mongolia.

The volunteers took the challenge

of 8-hour’s tramping and jogging to

burn calories in exchange for gloves

and exercise books for the children.

64


64

Community Care

Supported by the social responsibility platform of "You are the finishing touch" and focusing on communities, Mengniu

provided help for local communities, carrying out public good practices along its range of industrial chain.

Engagement in earthquake rescue and relief

Digging wells in the drought-hit pasturing areasSince 2011, we have launched a large project for people’s

well-being of digging wells in the drought-hit pasturing

areas. Together with local mainstream media, we invited

hydrologists to carry out site investigations to dig wells.

With these practical actions, we hope to help people in the

pasturing areas to fight against drought, bringing them

convenient lives.

On April 20, 2013, Ya’an, a city in Sichuan, was hit by a

7-magnitude earthquake. Three hours after the earthquake,

we donated 2,000 cartons of milk and 2,000 cartons of

Suan Suan Ru to the earthquake-hit area. In addition, we

donated RMB 10 million through Sichuan Department of

Civil A�airs to the earthquake-hit area in Ya’an. At the same

time, we sent a "Mengniu volunteer rescue team" to the

earthquake-hit area for site rescues.

We donated RMB 10 million to dig wells within 5 years.

Mengniu donated RMB 10 millionBy the end of 2013, we have dug 35 wells, bene�ting

about 110,000 people in the local area

Employee

Partner

Product

Fund

Involved in disaster-relief

Supporting employee’s activities

Resources Services Volunteer activities

Providing job opportunities

Caring for the vulnerable groups

Involvement in disaster relief

Taking precedence to provide job opportunities to poverty-stricken areas

Helping to dig wells in the drought-hit pasturing areas

Employee blood donation

65

Prospect

In 2014, we will actively promote the strategy of "sustainable cycle" and focus on core business in corporate

management and operation. We will determine the key social responsibility work and take advantages of

collaboration in the ecosystem, to combine the social responsibilities with all business areas, administrative

levels and job positions, to boost the sustainable development of Mengniu and the society in a transparent

and open attitude.

We will stick to the corporate vision of becoming a "consumer-orientated and innovation-led nutritious and

healthy food company". We will make the best of Mengniu's advantages in resources, technologies and talents

to promote the management and practices in Mengniu: we will keep close attention to all details from ranch

to dining table and improve our quality management systems throughout the ranch, the factory and the

industrial chain, in order to understand the demands of consumers and to develop prospective products and

services. While we strive to meet the demands of various consumers, we are also going to build emotional

connections to consumers. Starting with training of talents for middle- and small-sized ranches, we will

strengthen our �nancial and technological supports to partners. We hope to help the ranch-owners to make

a fortune. Besides, we will facilitate the sustainable development of suppliers, city managers and the entire

industrial chain: we stick to the ideas of "green Mengniu, green development and green renaissance" and

reduce the impacts of production operation distribution, and sales on the environment, so as to encourage

individuals to build a green and healthy society. Through innovative and complete talent training systems,

we will provide various platforms for employee development and build up a high-quality talent team for

sustainable development of the dairy industry.

In the future, we will take a more enthusiastic attitude to cooperate with company employees, city managers,

suppliers, media and celebrities to contribute to the sustainable development of the society.

66

Index of Report

Index of Report

G4-1

G4-2

G4-3

G4-4

G4-5

G4-6

G4-7

G4-8

G4-9

G4-10

G4-11

G4-12

G4-13

G4-14

G4-15

G4-16

G4-17

G4-18

G4-19

G4-20

G4-21

G4-22

G4-23

G4-24

G4-25

G4-26

G4-27

G4-28

G4-29

G4-30

G4-31

G4-32

G4-33

G4-34

G4-35

G4-36

G4-37

G4-38

G4-39

G4-40

G4-41

G4-42

G4-43

G4-44

G4-45

G4-46

G4-47

G4-48

G4-49

G4-50

G4-51

G4-52

G4-53

G4-54

G4-55

G4-56

G4-57

G4-58

G4-EC1

G4-EC2

G4-EC3

G4-EC4

G4-EC5

G4-EC6

G4-EC7

G4-EC8

G4-EC9

G4-EN1

G4-EN2

G4-EN3

G4-EN4

G4-EN5

G4-EN6

G4-EN7

P1

P11

P3

P29-32

P3

P3

P3

P3

P3/P18/P26/P51

P49/P51/P52

P51

P7/P19

P3/P4/P37

P15/P41/P42

P41

About this report

About this report/P11

P11P15/P25-26/P35/P41-42/P51-56/P61-62/P64

About this report

P12

P11

P12

P12

About this report

About this report

About this report

About this report

P66/P67/P68

P67/P68

P6/P10

P10

P10

P10/P11

P6

P10

P6/P10

P10

P11/P12

P10

About this report

P11

P52

P52

P5

About this report/ P28/P51

About this report/ P28/P51

P33

P51

P51

P59-60/P64

P60/P64

P18

P46/P48

P40

P47-48

P40

P40/P46/P48

P45-48

G4-EN8

G4-EN9

G4-EN10

G4-EN11

G4-EN12

G4-EN13

G4-EN14

G4-EN15

G4-EN16

G4-EN17

G4-EN18

G4-EN19

G4-EN20

G4-EN21

G4-EN22

G4-EN23

G4-EN24

G4-EN25

G4-EN26

G4-EN27

G4-EN28

G4-EN29

G4-EN30

G4-EN31

G4-EN32

G4-EN33

G4-EN34

G4-LA1

G4-LA2

G4-LA3

G4-LA4

G4-LA5

G4-LA6

G4-LA7

G4-LA8

G4-LA9

G4-LA10

G4-LA11

G4-LA12

G4-LA13

G4-LA14

G4-LA15

G4-LA16

G4-HR1

G4-HR2

G4-HR3

G4-HR4

G4-HR5

G4-HR6

G4-HR7

G4-HR8

G4-HR9

G4-HR10

G4-HR11

G4-HR12

G4-SO1

G4-SO2

G4-SO3

G4-SO4

G4-SO5

G4-SO6

G4-SO7

G4-SO8

G4-SO9

G4-S10

G4-S11

G4-PR1

G4-PR2

G4-PR3

G4-PR4

G4-PR5

G4-PR6

G4-PR7

G4-PR8

G4-PR9

P46

P46

P40/P43

P43

P43

P40

P40/P48

P43-P46

P46/P48

P47-48

P40/P46

P45

P52

P51

P51

P51

P49/P53

P53/P54

P53

P52

P51

P53

P51

P51

P51

P53

P59-60/P64

P35

P35

P17-22/P29-32

P25/P29-32

P46

P25-26/P28

GRI Content Page Number GRI Content Page Number

Strategy and analysis

Organization pro�le

Identi�ed material

aspect and boundaries

Stakeholderengagement

Report pro�le

Governance

Ethics and integrity

Economics

Environment

Labor practices

and decent work

Human rights

Society

Productresponsibility

Environment

6767

Assurance Statement of Corporate Social Responsibility Report

TUV Asia Pacific Ltd. (‘TUV NORD’) has been commissioned by the management of China Mengniu

Dairy Company Limited (Hereinafter ‘Mengniu Company’) to carry out an independent assurance of the

Corporate Social Responsibility Report from the year 2008 to 2013 (Hereinafter ‘the Report’）.

Mengniu Company is responsible for the collection, analysis, aggregation and presentation of information

made available in the Report. TUV NORD’s responsibility in performing this work (assurance of the report)

is in accordance with terms of reference agreed in the scope of engagement with Mengniu. Mengniu is

the intended users of this statement.

This statement is based on the assumption that the data and information provided in the report is

complete and true. This Report is the second Corporate Social Responsibility Report publicly published

by Mengniu Company, and it’s the first time for Mengniu Company to invite the third party to give

independent assurance.

Assurance Scope The Report revealed the accuracy and reliability for key performance, information and management

system which happened in the period from 2008 to 2013.

The address where the assurance was implemented is the CSR department of Mengniu Company

which locates in Floor 29, Block A, International Finance Center, Jia 8 Jianguomen Wai Avenue,

Chaoyang District, Beijing, P. R. China. The production plants and related stakeholders were not

visited.

We evaluated the management process concerning the collection, analysis, aggregation of the

information and data.

Due to finance data had been audited by the third audit firm, and published in Mengniu 2013 annual

report, so the correctness of the financial data in the Report is not in our assurance scope.

Assurance of the Report was implemented on 19-20.08.2014.

Assurance Methodology Assurance process including following activities:

Review the document information which provided by Mengniu Company;

Interview the persons who collected the report information;

View related websites and media reports, verify the data and information through sampling method;

Refer to GRI Sustainability Reporting Guideline (G4) on balance, comparability, accuracy,

timeliness, clarity, reliability, and give the evaluation;

Refer to AA1000 AS (2008) Assurance methodology, and ISO 26000 Social Responsibility

Standard.

Assurance activity is based on the procedures of TUV NORD CSR report assurance, and planned,

implemented and gave the result regarding reasonable basis which identified by TUV NORD.

Assurance conclusion

6868

Mengniu Company Corporate Social Responsibility Report provides an appropriate and objective view of

the sustainability & social programs and performances during the period from 2008 to 2013. The data in

the Report is reliable and objective, TUV NORD didn’t find the systematic error or essential mistake.

The disclosed information is clear, comprehensible and available;

The Report takes ‘Live for drop of Happiness’ as the theme, and discloses the CSR philosophy,

practices, result and typical cases from 6 fields covering food healthy and safety, product and service

innovation, efficient operation and management, low carbon emission and green development, staff

care and growth, community participation and development.

Mengniu Company had set up CSR committee, and already carried out related CSR works.

Suggestion for improvement Regarding the assurance and evaluation, we suggested Mengniu Company improve CSR practice and

management in the following aspects:

Disclose more information on negative performance and company corresponding countermeasure,

intend to improve the balance of the Report;

Disclose more data on the subject of climate change, intend to reflect the efforts and contributions

on CSR aspect.

Special statement This statement excluding:

The activity outside the information disclosure;

The position, viewpoint, faith, object, developing direction, and commitment which stated by

Mengniu Company.

Statement of Independence and Competence TUV NORD Group is the world’s leader in inspection, testing and verification, operating in more than

70 countries throughout the world and providing services which includes management systems and

product certification; quality, environmental, social and ethical auditing and training; environmental; social

responsibility and sustainability report assurance.

TUV Asia Pacific Ltd. affirms its independence fr om Mengniu Company and confirms that there is no

conflicts of interest with the organization or any of its subsidiaries and stakeholders when performing the

assurance of the Report. TUV Asia Pacific Ltd. was not involved in any manner with Mengniu Company,

when the latter was preparing the Report.

TUV Asia Pacific Ltd.

Please refer to the Chinese version upon the difference between English version and Chinese.

Team leader：Huang Li Authorized person ：Song Haining

Date：20.08.2014 Date : 21.08.2014

69

Mengniu's Social Responsibility Report 2008-2013 has systematically disclosed the corporate vision of becoming a "consumer-orientated and innovation-

driven nutritious and healthy food company" and has fully demonstrated the characteristics in dairy industry and re�ected the conception and practices

of Mengniu to present consumers with safe, high-quality and healthy dairy products.

The report came out with an innovative concept of the sustainable ecosystem. Mengniu included its clients and partners, including consumers, suppliers

and city managers into its corporate social responsibility management, to build a sustainable ecosystem. Mengniu advocates the ideas of value sharing

and provides development platforms for all stakeholders on the industrial chain. Through cooperation of all parties involved, Mengniu works out an

overall strategy on solving social issues and on meeting social demands.

The report re�ected value creation in corporate social responsibility management. The report focuses on six core areas in corporate management and

operation and discloses the social responsibility management systems and speci�c actions in practices in each core areas. We can intuitively see scienti�c

corporate social responsibility management systems and feel the values created by Mengniu in the corporate social responsibility management.

The report is informative and well-structured. The report makes innovations to report structures and each chapter is started with an opening story, leading

readers to the management systems in di�erent areas. The responsibilities and practices are speci�ed under the management system. The report complies

with the codes and standards on social responsibility report and also demonstrates the characteristics in the industry and the company.

The report design echoes with the era of mobile internet in that it is provided with graphic display and images and illustration are added based on the

content, which can vividly describe the values of all the e�orts made by Mengniu. The Report is written brie�y and concisely, easy to read with each

chapter being an independent structure. It has shown the characteristics of communication in the ear of mobile internet.

I am totally attracted by the abundant information, in-depth thoughts and beautiful appearance of the report after I �nished reading it, and I am especially

touched by the sincerity and minds of Mengniu in undertaking its social responsibilities. I have to say that this is an excellent and valuable CSR report!

Throughout the report, I can feel the practical e�orts in all aspects made by Mengniu, as a leading company in the dairy industry, to rebuild Chinese

people's con�dence and trust in the domestic dairy products. The saying that "Food is the paramount necessity of the people, and milk is the �rst choice

as food, while safety is an important priority to milk" is far more than a slogan but a supreme creed for people working at Mengniu. On the basis of seven

major quality certi�cations, including the ISO 9001, ISO 14001 and OHSAS18001, Mengniu also participated in drafting national standards and information

collection for international standards on food and dairy products. Mengniu is leading the continuous improvement of quality and safety in the dairy

industry.

Employees are the main body of a company. Mengniu regards its employees as source of its sustainable development. Mengniu established its unique

"Mengniu 100" system, with which Mengniu established a complete training system covering all groups from management trainees to decision-making

managers in the company and broke the boundaries of internal business in the company. Mengniu is making constant e�orts to train excellent talents for

its company and the entire society and on the other hand it meets the needs of employees for personal development.

The report is compatible with international standards and has shown its characteristics in globalization. The report is prepared with reference to ISO 26000

and con�rms the six major social responsibility topics for Mengniu. The report covers all the G4 core indexes and provided a useful model and reference

for drafting of reports by Chinese enterprises in accordance with G4 requirements.

Expert Review

Yin Gefei, Deputy Director of China WTO Tribune

Chen Yuanqiao, Senior Principal Researcher from China National Institute of Standardization

Social Responsibility Department of China Mengniu Dairy Company LimitedAddress: 29F Tower A, 8A International Finance Center, Jianguomenwai Avenue, Chaoyang District, BeijingPost Code: 100022www.mengniu.com.cn

Social Responsibility Report of China Mengniu D

airy Company Lim

ited (2008-2013)

Little Happiness MattersSocial Responsibility Report of China Mengniu Dairy Company Limited (2008-2013)

SEHK Stock Code: 2319

This report is made of degradable paper that is environment-friendly and recyclable

little happiness mattersmengniuir.com/pdf/governance_reporting.pdf · social responsibility report...

Documents