China Asset Management Co. (ChinaAMC) led a delegation of leading Chinese and international asset managers and non-governmental organizations on a series of field trips last week. The initiative aimed to connect international investors with Chinese agri-food businesses and examine their sustainable transformation practices. The focused areas included deforestation-free supply chains and methane emissions, aligning with global regulatory frameworks like the EU Deforestation Regulation (EUDR) and China's "Dual Carbon" targets.

Shanghai Roundtable on Methane Reduction

The delegation began its itinerary at the School of Agriculture and Biology, Shanghai Jiao Tong University, with an exclusive ESG Investor Roundtable. Representatives from the Climate Bonds Initiative (CBI) presented strategies for financing methane emission reduction across the agri-food supply chain. Discussions highlighted that while emission-reduction technologies exist in segments like livestock farming and feed optimization, scaling these efforts requires overcoming commercial hurdles. Delegates emphasized the need for precise quantification and verification of environmental benefits to deploy green financial instruments like green loans and green bonds at scale.

Mengniu Dairy's Green Transformation

Following the roundtable, the delegation visited Mengniu Dairy's production base in Northwestern China. The tour included the company's "super factory" in Ningxia, recognized by the World Economic Forum as the global dairy industry's first "Lighthouse Factory." Full automation and digitalization at the facility reduced overall energy consumption by 43% as of December 2024, serving as a model for digital intelligence and green practices in the dairy industry.

Sustainable Supply Chain Engagement

ChinaAMC's ESG research head, Shirly Xu, moderated a Q&A session with Mengniu and its suppliers, focusing on deforestation and greenhouse gas emissions. The delegation also visited the Ulan Buh desert outskirts to observe an organic farm created by a major Mengniu supplier. The project transformed a barren area into a vibrant ecological pasture over 17 years, featuring saxaul trees and purple alfalfa. The tour showcased livestock management and automated milking processes at a modern ranch, highlighting the integration of organic feed and temperature-controlled facilities.

Shirly Xu stated that the trip provided an opportunity to witness ESG achievements and a replicable methodology converting sustainability into business competitiveness. The initiative reflects ChinaAMC's broader stewardship approach to help companies set science-based targets, elevate data disclosure standards, and ensure supply chain traceability.