Gao Fei, CEO of Mengniu: Pursue Green Development and Shape a Sustainable Brand Image with Global Influence
Time：2025.04.16
At the "CGF’s China Green Transition Initiative: CEO Talks" recently co-launched by Consumer Goods Forum (CGF) China and Bain & Company, Gao Fei, CEO of Mengniu Dairy, shared his insights into topics such as the strategic significance of the green transition of the dairy industry, collaboration in carbon reduction across the industry chain, and global expansion.
Gao said that the green transition is the inevitable path to comprehensively foster new quality productive forces, and industry collaboration holds the key to realizing the green transition. Mengniu will continue pursuing green development, shape a sustainable brand image with global influence, and encourage more member companies to do the same and jointly contribute to the sustainable future of the industry.
The CGF brings together CEOs and executives from around 400 retailers, manufacturers, service providers, and other stakeholders in 70 countries around the world. It is governed by a Board of Directors comprised of the CEOs of more than 55 manufacturers and retailers.
As the co-chair of the CGF Board of Directors, Mengniu has long been actively involved in the four major areas of work in food safety, nutrition and health, sustainable development, and end-to-end value chain. Gao Fei said that Mengniu has long been thinking about how to translate CGF's initiative into pragmatic actions, upgrade the sustainable development model of dairy enterprises, build an industry-wide ecological benefits network, and lead China's consumer goods industry toward a collaborative, sustainable future.
"At the macro level, green transition is where the Chinese economy is heading generally. China has put forward its carbon peaking and carbon neutrality goals. Looking ahead, green development will not only lay the foundation for high-quality development but also shape the core competitive edge of enterprises”, said Gao Fei.
At the micro level, it is difficult for a single enterprise to achieve green transition in all respects through internal optimization; instead, it requires industry-wide collaboration. Gao Fei noted: "The CGF serves as a platform that brings together brands and retailers. We are at different links of the value chain and need to work with each other in setting uniform standards, sharing innovation, and advocating green consumption. Only by so doing can we truly realize a sustainable green transition".
Mengniu has been implementing its GREEN Sustainable Development Strategy across the board for a long time—GREEN is the acronym of its five pillars: Governance—Sustainability, Responsibility—Common Prosperity, Environment—Carbon Net-Zero, Ecosystem—Collaborative & Accountable, Nutrition—Supreme & Inclusive. It is the first dairy company to release its strategic goals for carbon peaking and carbon neutrality, vowing to peak its carbon emissions by 2030 and achieve carbon neutrality across the supply chain by 2050—the most ambitious in the industry, thus actively contributing to China’s decarbonization and promoting the sustainable development of upstream and downstream enterprises.
In 2024, Mengniu was rated "AA" again in MSCI ESG ratings, the highest rating in the dairy industry.
"The dairy industry has a very long supply chain, from forage planting to cattle raising, processing, transportation, and many other links, which poses a big challenge to green transition", said Gao Fei.
It is learned that the dairy supply chain spans primary, secondary, and tertiary sectors, and its green transition is not only a must for China to achieve its carbon peaking and carbon neutrality goals but also at the core of the high-quality development of the industry. However, the dairy industry’s carbon emissions mix is complex, with more than 90% of carbon emissions concentrated in Scope 3 (supply chain-related emissions) and difficult to reduce.
In response, Mengniu has built a carbon reduction system covering the whole chain from "forage planting, low-carbon breeding, green factory, eco-friendly packaging, and low-carbon transportation".
In pastures upstream of the supply chain, Mengniu focuses on sand control, carbon sequestration, and circular economy, and works with ecosystem partners to achieve green transition. "We have built organic pastures in Ulan Buhe Desert in Inner Mongolia, greening the desert to facilitate ecological restoration and producing the highest quality organic raw milk at the same time. The cumulative desert greening area has exceeded 200 square kilometers over the past more than ten years", Gao said.
Gao also stressed that the green transition is the inevitable path for developing new quality productive forces, and industry-wide collaboration holds the key to realizing the green transition. Mengniu builds a green value chain based on its network of ecosystem partners, empowering the whole chain with digital and intelligent technology, and driving efficiency upgrades with innovation.
At the midstream, Mengniu leverages digital and intelligent technology and zero-carbon benchmarking to achieve intelligent and green manufacturing. In October 2024, Mengniu's Ningxia factory became the first dairy "lighthouse factory" in China. It is noteworthy that with a workforce of only a hundred, the factory boasts a production capacity of 1 million tons and generates 10 billion yuan of output value per year. Compared with conventional factories, the Ningxia factory has reduced energy consumption by 43%, setting a model for green manufacturing in the dairy industry.
In response to downstream consumption, Mengniu vigorously advocates green consumption and advances green transition jointly with consumers. It has proposed the 4R1D Packaging Strategy and launched the Dairy Packaging Plastics Reduction and Regeneration Campaign, through which Mengniu has recycled a large amount of dairy packaging waste across the country, significantly reducing plastic pollution, equivalent to a carbon emissions reduction of nearly 9,000 kilograms.
As Chinese enterprises quicken their pace of "going global", enhancing ESG governance has become a must-do on their journey of global expansion. The green transition represents Mengniu’s core competitiveness in global development. In international operations, Mengniu adheres to the principles of environmental friendliness and green development and has developed capabilities for sustainable win-win collaboration in all respects for overseas businesses centering around green manufacturing, green supply chains, and green branding.
In Australia and New Zealand, Bellamy's Organic and Yashili, two subsidiaries of Mengniu, have built modern milk source bases in selected high-quality pastures known for high grassland coverage, good air and water quality, and high active nutrients in milk, laying a solid foundation for building green milk sources. It has created organic eco-pastures of premium quality.
In Mengniu's Indonesia factory, floor-standing natural gas boilers are used instead of liquefied petroleum gas, making the factory an example of pollution reduction. Mengniu has also invested in building an exclusive sewage treatment plant in Indonesia, with a designed capacity of 1,300 tons of sewage per day. Enabled by advanced technology and equipment, the effluent meets the first-class discharge criteria. Through green manufacturing, Mengniu’s Indonesia Factory and Aice Ice Cream Factory have achieved the highest level of intelligent manufacturing in Southeast Asia, minimizing their environmental impacts.
Focusing on the supply chain, Mengniu recently signed a sustainable soybean agreement with COFCO International in Brazil, and the two jointly released the Action Initiative for Building a Sustainable Global Dairy Supply Chain to upgrade the global green dairy supply chain. As early as 2023, Mengniu completed the first "zero deforestation" soybean order in China's dairy industry, and facilitated the formulation of international standards governing carbon reduction and zero deforestation in the dairy industry, leading the sustainable development of the supply chain.
Based on its progress in sustainable development in several overseas markets, Mengniu is committed to telling the green industry brand story of China. Gao Fei noted: "We will actively communicate Mengniu's resolve and practice of green transition to global consumers through our ESG reports, overseas social responsibility projects, and voice on international platforms”.
Moving forward, Mengniu will continue to work with consumers, partners, and the international community to pursue green development and shape a sustainable brand image with global influence, thus contributing to the sustainable development of a Beautiful China and the world. Gao Fei added, "I hope that more member companies will actively participate in the Green Transition Initiative so that we can move toward a net-zero future together and protect the health of mankind and the planet!"
Gao said that the green transition is the inevitable path to comprehensively foster new quality productive forces, and industry collaboration holds the key to realizing the green transition. Mengniu will continue pursuing green development, shape a sustainable brand image with global influence, and encourage more member companies to do the same and jointly contribute to the sustainable future of the industry.
Implementing the GREEN Strategy and comprehensively advancing the green transition of the dairy industry
The CGF brings together CEOs and executives from around 400 retailers, manufacturers, service providers, and other stakeholders in 70 countries around the world. It is governed by a Board of Directors comprised of the CEOs of more than 55 manufacturers and retailers.
As the co-chair of the CGF Board of Directors, Mengniu has long been actively involved in the four major areas of work in food safety, nutrition and health, sustainable development, and end-to-end value chain. Gao Fei said that Mengniu has long been thinking about how to translate CGF's initiative into pragmatic actions, upgrade the sustainable development model of dairy enterprises, build an industry-wide ecological benefits network, and lead China's consumer goods industry toward a collaborative, sustainable future.
"At the macro level, green transition is where the Chinese economy is heading generally. China has put forward its carbon peaking and carbon neutrality goals. Looking ahead, green development will not only lay the foundation for high-quality development but also shape the core competitive edge of enterprises”, said Gao Fei.
At the micro level, it is difficult for a single enterprise to achieve green transition in all respects through internal optimization; instead, it requires industry-wide collaboration. Gao Fei noted: "The CGF serves as a platform that brings together brands and retailers. We are at different links of the value chain and need to work with each other in setting uniform standards, sharing innovation, and advocating green consumption. Only by so doing can we truly realize a sustainable green transition".
Mengniu has been implementing its GREEN Sustainable Development Strategy across the board for a long time—GREEN is the acronym of its five pillars: Governance—Sustainability, Responsibility—Common Prosperity, Environment—Carbon Net-Zero, Ecosystem—Collaborative & Accountable, Nutrition—Supreme & Inclusive. It is the first dairy company to release its strategic goals for carbon peaking and carbon neutrality, vowing to peak its carbon emissions by 2030 and achieve carbon neutrality across the supply chain by 2050—the most ambitious in the industry, thus actively contributing to China’s decarbonization and promoting the sustainable development of upstream and downstream enterprises.
In 2024, Mengniu was rated "AA" again in MSCI ESG ratings, the highest rating in the dairy industry.
From desert to table, collaborative carbon reduction across the industry chain
可持續(xù)的公司治理Governance—Sustainability
營養(yǎng)普惠的卓越產品More Nutritious Products
共同富裕的乳業(yè)責任Responsibility—Common Prosperity
環(huán)境友好的綠色生產Environment—Carbon Net-Zero
負責任的產業(yè)生態(tài)圈Ecosystem—Collaborative & Accountable
生產更營養(yǎng)的成品Nutrition—Supreme & Inclusive
引領更美好的生活A Better Life
守護更可持續(xù)地球A More Sustainable Planet
愿景Vision
守護人類和地球共同健康Promise a Healthier World
"The dairy industry has a very long supply chain, from forage planting to cattle raising, processing, transportation, and many other links, which poses a big challenge to green transition", said Gao Fei.
It is learned that the dairy supply chain spans primary, secondary, and tertiary sectors, and its green transition is not only a must for China to achieve its carbon peaking and carbon neutrality goals but also at the core of the high-quality development of the industry. However, the dairy industry’s carbon emissions mix is complex, with more than 90% of carbon emissions concentrated in Scope 3 (supply chain-related emissions) and difficult to reduce.
In response, Mengniu has built a carbon reduction system covering the whole chain from "forage planting, low-carbon breeding, green factory, eco-friendly packaging, and low-carbon transportation".
In pastures upstream of the supply chain, Mengniu focuses on sand control, carbon sequestration, and circular economy, and works with ecosystem partners to achieve green transition. "We have built organic pastures in Ulan Buhe Desert in Inner Mongolia, greening the desert to facilitate ecological restoration and producing the highest quality organic raw milk at the same time. The cumulative desert greening area has exceeded 200 square kilometers over the past more than ten years", Gao said.
Gao also stressed that the green transition is the inevitable path for developing new quality productive forces, and industry-wide collaboration holds the key to realizing the green transition. Mengniu builds a green value chain based on its network of ecosystem partners, empowering the whole chain with digital and intelligent technology, and driving efficiency upgrades with innovation.
At the midstream, Mengniu leverages digital and intelligent technology and zero-carbon benchmarking to achieve intelligent and green manufacturing. In October 2024, Mengniu's Ningxia factory became the first dairy "lighthouse factory" in China. It is noteworthy that with a workforce of only a hundred, the factory boasts a production capacity of 1 million tons and generates 10 billion yuan of output value per year. Compared with conventional factories, the Ningxia factory has reduced energy consumption by 43%, setting a model for green manufacturing in the dairy industry.
In response to downstream consumption, Mengniu vigorously advocates green consumption and advances green transition jointly with consumers. It has proposed the 4R1D Packaging Strategy and launched the Dairy Packaging Plastics Reduction and Regeneration Campaign, through which Mengniu has recycled a large amount of dairy packaging waste across the country, significantly reducing plastic pollution, equivalent to a carbon emissions reduction of nearly 9,000 kilograms.
Go global and tell the world China’s green dairy story
As Chinese enterprises quicken their pace of "going global", enhancing ESG governance has become a must-do on their journey of global expansion. The green transition represents Mengniu’s core competitiveness in global development. In international operations, Mengniu adheres to the principles of environmental friendliness and green development and has developed capabilities for sustainable win-win collaboration in all respects for overseas businesses centering around green manufacturing, green supply chains, and green branding.
In Australia and New Zealand, Bellamy's Organic and Yashili, two subsidiaries of Mengniu, have built modern milk source bases in selected high-quality pastures known for high grassland coverage, good air and water quality, and high active nutrients in milk, laying a solid foundation for building green milk sources. It has created organic eco-pastures of premium quality.
In Mengniu's Indonesia factory, floor-standing natural gas boilers are used instead of liquefied petroleum gas, making the factory an example of pollution reduction. Mengniu has also invested in building an exclusive sewage treatment plant in Indonesia, with a designed capacity of 1,300 tons of sewage per day. Enabled by advanced technology and equipment, the effluent meets the first-class discharge criteria. Through green manufacturing, Mengniu’s Indonesia Factory and Aice Ice Cream Factory have achieved the highest level of intelligent manufacturing in Southeast Asia, minimizing their environmental impacts.
Focusing on the supply chain, Mengniu recently signed a sustainable soybean agreement with COFCO International in Brazil, and the two jointly released the Action Initiative for Building a Sustainable Global Dairy Supply Chain to upgrade the global green dairy supply chain. As early as 2023, Mengniu completed the first "zero deforestation" soybean order in China's dairy industry, and facilitated the formulation of international standards governing carbon reduction and zero deforestation in the dairy industry, leading the sustainable development of the supply chain.
Based on its progress in sustainable development in several overseas markets, Mengniu is committed to telling the green industry brand story of China. Gao Fei noted: "We will actively communicate Mengniu's resolve and practice of green transition to global consumers through our ESG reports, overseas social responsibility projects, and voice on international platforms”.
Moving forward, Mengniu will continue to work with consumers, partners, and the international community to pursue green development and shape a sustainable brand image with global influence, thus contributing to the sustainable development of a Beautiful China and the world. Gao Fei added, "I hope that more member companies will actively participate in the Green Transition Initiative so that we can move toward a net-zero future together and protect the health of mankind and the planet!"