MSCI Inc. ("MSCI"), a leading global index company, released its latest ratings report, upgrading Modern Dairy's ESG (Environmental, Social, and Governance) assessment from BBB to A, ranking the first among Chinese dairy companies. This upgrade reflects Modern Dairy's excellent practices in ESG strategic management and information disclosure and represents an acknowledgement by the international capital market of its achievements in green transformation and sustainable development.

As one of the most authoritative and influential ESG assessment systems globally, MSCI’s ESG rating is widely incorporated into the research frameworks and investment decision-making processes of global institutional investors. The purpose of this rating is to evaluate a company's resilience and governance level when facing long-term, substantial industry-related ESG risks. It helps investors identify more comprehensively a company's actual performance on the ESG front. This enables them to seize opportunities and identify risks that are often overlooked by traditional financial analysis.

According to the rating results released by MSCI, Modern Dairy achieved comprehensive improvements across environmental, social, and governance dimensions. The company's scores in community relations, supply chain labor standards, and corporate behaviour were notably higher than industry averages, fully demonstrating the company's continuous efforts and ongoing improvements in ESG. Additionally, Modern Dairy has made significant progress in addressing carbon emissions, indicating that its decarbonisation measures and outcomes have been internationally recognised. The company has passed “ISO14064 CERTIFICATE OF VERIFICATION ON GHG EMISSION” consecutively for four years. It was the among the first to complete Scope 3 emissions verification and has simultaneously passed the GHG Protocol certification. This development indicates that the company's carbon management system has been successfully aligned with international standards, seamlessly integrating low-carbon development concepts across the entire value chain and production processes. Modern Dairy has developed a three-level ESG governance structure, covering decision-making, management and executive levels. This structure ensures the efficient implementation of the "FRESH Sustainable Development Strategy" across all business segments. Its exceptional performance in the MSCI ESG ratings is closely linked to the company's strategic investments and tangible achievements in the ESG field.

As a leader in sustainable development within China's dairy industry, Modern Dairy has deeply integrated ESG concepts into its corporate strategy, constructing a comprehensive sustainability system around the five pillars of "Future, Responsibility, Environment, Society, and Health". It strengthens the intrinsic drivers for Modern Dairy's high-quality development and creates a model of sustainable development with industry demonstration value, continuously leading the green upgrade of the industrial ecosystem.