Water resources play a vital role in ensuring the survival and progress of human beings. But unfortunately, we are facing a global water crisis due to the scarcity of water resources and the escalating problem of water pollution. To tackle this pressing issue, Yili is committed to promoting efficient utilization and management of water resources. By harnessing new technologies, Yili aims to reduce water consumption and enhance water resource management. Our goal is to contribute to the sustainable development of water resources, ensuring a better future for generations to come. By proposing the "Low Water Footprint Initiative (LWFi) for Dairy Industry", Yili has become China's first company to join the UN Water Action Agenda at the UN Water Conference held in March 2023.
Yili has established a Strategy and Sustainable Development Committee at the board level, which is composed of eight directors (including two independent directors), under the charge of Mr. Pan Gang, the Chairman and President of Yili. Apart from business development strategy, the Committee also focuses on researching and recommending sustainability strategic plans for Yili's long-term development. The Committee also oversees its sustainability strategy implementation across the company (including water resource management). The Sustainable Development Office is under Strategy and Sustainable Development Committee, which is responsible for the sustainability performance supervision and report to the Strategy and Sustainable Development Committee on a regular basis. The Safety Production Management Department of Yili is responsible for day-to-day management of water resources. The quarterly progress reports are submitted to the Sustainable Development Management Office for review and monitoring purposes.
In 2024, Yili Group was rated as "B-Management Level" by the CDP Water Security, representing the international sustainability rating agency's recognition of Yili Group's effective water management in terms of governance structure, risk management, and actionable strategies.
Yili has implemented water management programs across all of its core operations. The Strategy and Sustainable Development Committee of the Board has set water reduction targets in order to monitor the progress and effectiveness of the water reduction programme.
| Target Categories | Target Value | Progress made in 2024 | Target Progress |
|---|---|---|---|
| Water conservation target at operation | By 2025, the water consumption of production will be reduced by 3% compared with 2021. | Reduced by 10.66% | Achieved |
| By 2025, the water consumption per ton of product will be reduced by 3% compared with 2021. | Reduced by 7.96% | Achieved | |
| By 2025, the recycling rate of reclaimed water will be increased by 5% compared with 2021. | Increased by 8.18% | Achieved | |
| Water conservation target at supply chains | Taking 2021 as the baseline year, within the next five years (up to 2025), the daily water consumption standard per single cow will be maintained within 110 kg. | The water consumption was 1,100 tons per million revenue. The water consumption per ton of milk in 2024 decreased by 12.47% compared with 2023 | In progress |
In 2022, Yili launched a water footprint project for both products and organization level. Based on the "ISO 14046 Environmental Management - Water Footprint - Principles, Requirements and Guidelines", the project involved certifying the water scarcity footprint by conducting a Life Cycle Assessment (LCA) for both the organization and its products. The project comprehensively assessed the water footprint throughout the entire product value chain's lifecycle and its impact on regional water resources, identifying opportunities for potential environmental improvement. By December 2024, a total of three products and five factories had conducted water footprint Assessment and obtained third-party certification.
Ambrosial Flavored Yogurt Original Flavor 2.55 m?H?O_eq/L
Xinhuo Middle Aged and Elderly Milk Powder 5.98 m?H?O_eq/kg
Changqing Premium Protein Artisan Yogurt 4.2 m?H?O_eq/kg
Yili plans to establish a water footprint evaluation platform that complies with the ISO 14046 standard to assess the water footprint of all its products. In 2024, Yili continued to promote the water footprint verification for organizations and products across its business units.
Steam condensate recovery technology
Condensate from high-pressure steam separators, pasteurization/UHT systems, flash evaporation/batching systems, filling machine traps, CIP systems, and purchased steam is recycled after soft water standard testing for acid/alkali dilution, cleaning clear water tank/milk truck exteriors, etc.
Cooling water recovery technology
Cooling water from pasteurization/UHT sterilization heating systems, aseptic tank jackets, filling machine seam transformers, refrigeration compressors, degassing tanks, etc., is recycled for pre-rinse/raw water/CIP clear water tanks and for self-circulation.
RO concentrated water recovery technology
The forward and backward flushing of water from multi-media filters, activated carbon filters and water softeners shall be filtered via concentrated water recovery reverse osmosis (RO) equipment. RO concentrated water (scale-inhibitor-free, with a hardness level of ≤50 mg/L) is in accordance with soft water standards and is recycled to the raw water pool.
CIP water reduction technology
CIP water reduction technology is designed to enhance the efficiency of the CIP process. Traditional methods require a significant quantity of water for equipment and pipeline cleaning, but advanced automation control and metering technology can significantly reduce cleaning water usage by optimizing CIP duration.
Water conservation at operation
Homogenizer Cooling Water Reduction Project
The cooling system for the homogenizer used in Yili's production plant is organized into three distinct stages. Each stage has its own separate cooling water supply, which makes it challenging to control the water flow. By connecting the water supplies together into a continuous series, the cooling water can then be recycled. This leads to a reduction of 4,380 tonnes in water consumption per homogenizer per year at Yili's production facility.
Enhancing Reclaimed Water Recycling
In 2024, Yili implemented a number of water recycling initiatives, including recycling from pure water systems, flushing water treatment, recycling from soft water systems, mechanical seal cooling water recovery, and recycling of treated non-hazardous reclaimed water. Notably, the excess cooling water and cleaning water from the production workshop are recovered for use in the energy system for cooling and process tower water supplementation, saving 360,000 tons of water annually.
Rainwater Collection and Reuse
In 2024, Yili identified significant rainwater reuse potential at Meizhou Yili Frozen Food Co., Ltd. By evaluating existing equipment layouts and integrating rainwater collection points with recycled water accessibility, the facility implemented rainwater recycling primarily to replace circulating water in evaporative cooling systems, achieving an annual water replacement volume of 4,800 tons.
Water conservation at supply chain
Water Conservation Project at Raw Milk Suppliers
Yili has initiated a project to upgrade the sprinkler systems at its primary raw milk supplier farms. By employing radar capture systems and AI-based intelligent recognition technology, the farms can smartly manage the equipment in the sprinkler areas. Once this project is fully implemented, each farm can save over 50% of its water usage, significantly reducing water waste and greatly improving the efficiency of water resource utilization.
Water Conservation Project at Henan Feitian
Henan Feitian Biotechnology Co., Ltd. is one of China's largest corn and wheat processing companies and a key supplier for Yili. In 2022, Feitian actively participated in Yili's water resource management initiative within the supply chain. They successfully recycled condensate water generated from boilers and the evaporation of raw materials, leading to an annual water saving of more than 800,000 cubic meters.
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