Scaling new heights! Yurun Pastoral tops China's dairy industry in S&P CSA score, continuing to lead in sustainable development strength
In December 2025, the prestigious international rating agency S&P Global released its 2025 Corporate Sustainability Assessment (CSA) results. Yurun Pastoral’s score rose to 71 points, an increase of 8 points from last year, marking a significant annual leap and ranking first in China's dairy sector. This impressive achievement not only highlights Yurun Pastoral’s exceptional practices in environmental responsibility, social responsibility, corporate governance, and economic performance but also garners high recognition from global capital markets, signifying that the company has entered a new phase of high-quality advancement on its sustainable development journey.
As one of the most credible evaluation systems globally, the S&P CSA assessment covers over 1,000 data points, comprehensively spanning three major dimensions: environment, society, governance, and economy. Each year, it evaluates approximately 13,000 companies worldwide, with 55% of the S&P 500 index constituents participating. Its scoring results are widely used by global financial institutions managing $35 trillion in assets for portfolio management and investment strategy formulation, making its authority highly recognized by the capital market.
Excelling in three dimensions, solidifying the moat of sustainable development
In terms of environmental responsibility,Yurun Pastoral has set a zero-carbon goal to achieve peak carbon emissions by 2030 and carbon neutrality by 2050, along with eight practical core initiatives for carbon reduction. It was the first to introduce 'grazing-light complementarity' and biogas new energy power generation technologies, enabling the ranch to generate its own green electricity. Additionally, it developed and applied an AI sprinkler system, which saves over 45% more water compared to traditional sprinklers. Meanwhile, Yurun Pastoral has achieved multiple industry-first results in green and low-carbon practices: creating the domestic ranch approved for the highest VCS carbon credit quota, receiving 91,300 tons of carbon credits; developing the first plant-based feed for ruminants that reduces carbon emissions and increases yield; building the first ranch committed to using only 'zero-deforestation' soybeans; and establishing the first 'zero-carbon factory' in the domestic ruminant feed industry. Notably, in 2025, Yurun Pastoral built the industry’s first 'carbon neutral' ranch — the Pingdingshan Ranch in Henan Province. This milestone marks Yurun Pastoral’s exploration of actionable steps and pathways to achieve a 'carbon neutral' ranch, setting a benchmark for the industry's low-carbon transition.
To further enhance its sustainable development capabilities, the company, guided by the 'Yurun Pastoral Zero Carbon Future Plan,' continues to advance its commitment to purchasing 'zero-deforestation' soybean meal. In 2026, five additional large-scale ranches will procure 'zero-deforestation' soybean meal, with an annual procurement amount reaching 60 million yuan, highlighting Yurun Pastoral's firm support as a leader in high-quality dairy industry development for tropical rainforest ecological protection and even global forest conservation.
At the social responsibility level,Yurun Pastoral has joined the United Nations Global Compact (UNGC) and pledged to support the UNGC’s ten principles across four areas: human rights, labor, environment, and anti-corruption. Simultaneously, Yurun Pastoral actively promotes local employment for farmers and herders, alleviating social issues such as left-behind children. It also selects and freely promotes high-yield, highly digestible silage varieties to nearby farmers. With improvements in starch content and conversion rate of purchased silage corn, yields have increased by approximately 20%, adding around 300 yuan in income per mu for farmers. Farmers have realized 'straw-to-cash,' helping 300,000 farmers and herders increase their income, while also solving the issue of straw burning, driving regional agriculture and animal husbandry prosperity.
In terms of corporate governance and economics,Yurun Pastoral constructs a modern governance system based on compliance and transparency, fully integrating ESG management requirements into all operational processes. At the same time, ESG risks are incorporated into the comprehensive risk management system, with strict risk control measures formulated to confidently address market fluctuations and external environmental changes, ensuring stable company operations. Over the past three years, Yurun Pastoral’s revenue has climbed from 18.051 billion yuan to 20.096 billion yuan, an increase of 11.3%; annualized milk production per mature cow has risen by 10.5%; and feed costs per kilogram of raw milk have continuously decreased for three years, dropping by 12% year-over-year in the first half of 2025, further strengthening its industry competitiveness.
To further strengthen strategic decision-making effectiveness, in 2025, Yurun Pastoral optimized its board structure, adding directors with IT and risk management expertise, enhancing technical and risk management dimensions, while simultaneously increasing the proportion of female directors to 44%. This move not only effectively improves the company’s sustainable governance but also fully empowers the board team's decision-making through professional complementarity and structural optimization, injecting robust governance momentum into the company’s sustainable development.
The CSA assessment is a globally recognized authority on sustainability certification, with its results serving as a critical decision-making reference for institutional investors. The continuous rise in Yurun Pastoral's CSA scores confirms market recognition of the company’s sustainable development strategy. Moving forward, Yurun Pastoral will continue exploring new paths and technologies in green sustainable transformation, adopting more efficient, lower-carbon, and inclusive development practices to create greater green technological value for society. $YOURAN DAIRY (09858.HK)$
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.
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