INNER MONGOLIA YILI INDUSTRIAL GRO

Inner Mongolia Yili Industrial Group is a major dairy producer in China, ranking among the world's largest. The company's climate transition pathway has been flagged as insufficient by multiple asset managers. Columbia Threadneedle Investments has identified Yili as a company requiring engagement on its climate strategy and transition plan. Similarly, Federated Hermes Limited has noted the company's performance on climate-related metrics as an area of focus. These assessments indicate Yili's current climate governance, target-setting, and disclosure practices do not align with the expectations of investors focused on limiting global warming to 1.5°C. The company lacks a publicly disclosed, science-based net-zero target that encompasses its full value chain emissions, including Scope 3 from its agricultural supply chain, which constitutes the majority of its carbon footprint. Without a robust, quantified plan to reduce emissions across its operations and milk supply, Yili is assessed as not having a credible pathway to decarbonization.