Full Environmental and Social Impact Assessment (ESIA) Report

File Name: Full Environmental and Social Impact Assessment (ESIA) Report

Applicable Certification Standard: ProTerra Standard V5.0

Certified Entity: Xiamen Yung Yong Co., Ltd.

Production & Processing Facility: Core supplier

Raw‑material Supply Base: Core agricultural base

Products Covered by Assessment: Frozen soy beans, broad beans,green beans and other frozen fruits and vegetables

Assessment Date: 20 August 2026

Version: V1.0

File Status: Internally‑controlled document (only the public ESIA summary shall be disclosed externally)

1. Assessment Overview

To meet the environmental and social risk‑management requirements for supply chains under ProTerra Standard V5.0, our company has conducted a systematic Environmental and Social Impact Assessment (ESIA) covering the full supply chain of upstream planting bases, production‑processing plants and trading‑operation entities within the scope of this certification. This assessment identifies potential environmental risks, social risks and compliance risks across all processes, analyses impact severity and likelihood of occurrence, and establishes risk‑mitigation, control, monitoring and continuous‑improvement measures to ensure sustainable, compliant and transparent supply‑chain operations.

2. Assessment Scope and Supply‑chain Boundary

The ESIA assessment boundary fully covers the entire supply chain for this ProTerra certification, including three tiers of activities:

2.1 Planting Tier: Core agricultural base

Includes all activities for certified fruit and vegetable varieties: field cultivation, agro‑input management, irrigation, field maintenance, harvesting, field‑waste management, field‑labour management and farmland‑ecosystem conservation.

2.2 Production‑processing Tier: Core supplier

Covers all production activities: raw‑material receiving, washing, sorting, blanching, sterilisation, freezing, grading, packaging, warehousing, cold‑store operation, wastewater treatment, equipment maintenance, workshop labour management, work‑safety administration and waste management.

2.3 Trading‑operation Tier: Xiamen Yung Yong Co., Ltd.

Covers business activities including supply‑chain procurement control, base auditing, traceability management, order administration, customer delivery, supply‑chain social‑responsibility oversight and information disclosure management.

3. Assessment References

(1) ProTerra Standard V5.0 Standard for Sustainable Agriculture and Food Supply Chains (2) Environmental Protection Law of the People’s Republic of China (3) Work Safety Law of the People’s Republic of China (4) Labour Law of the People’s Republic of China, Labour Contract Law of the People’s Republic of China (5) Local regulatory standards for sewage, solid waste, noise and atmospheric emissions (6) Specifications governing agricultural‑input management and farmland‑ecology conservation

4. Assessment Methodology and Procedure

This ESIA adopts a multi‑dimensional comprehensive assessment approach:

1. On‑site inspection: field investigation at planting bases and full‑site walk‑through audits of manufacturing workshops
2. Document review: verification of qualification certificates, ledgers, records and institutional procedures
3. Stakeholder interviews: discussions with base administrators, growers, workshop staff, safety managers, human‑resources personnel and company representatives
4. Risk identification: comprehensive identification of risks relating to environment, society, safety, labour rights, local communities, land tenure and biodiversity
5. Risk ranking: classification into high‑, medium‑ and low‑risk levels
6. Formulation of mitigation measures, monitoring plans and continuous‑improvement mechanisms

5. Identification of Environmental‑impact Risks and Control Measures

5.1 Water‑resource Risks

Potential risks: high water consumption for field irrigation at bases and cleaning processes in the factory; non‑standard discharge of production wastewater.

Control measures:

1. Water‑saving irrigation practices are implemented at planting bases to eliminate wasteful flood irrigation.
2. The factory optimises cleaning procedures with staged water reuse to reduce water consumption.
3. Pre‑treated production wastewater is discharged into the municipal sewage network in compliance with discharge standards.
4. Water‑use and drainage ledgers are maintained; equipment is regularly inspected for leaks and spillages.

5.2 Waste‑management Risks

Potential risks: improper disposal of field weeds, crop residues, production off‑cuts, packaging waste, domestic waste and small volumes of laboratory waste.

Control measures:

1. Planting residues are either recycled on‑site for resource utilisation or collected for authorised off‑site removal.
2. Fruit‑and‑vegetable processing off‑cuts are centrally collected and disposed of in accordance with regulations.
3. Paper and plastic packaging waste is sorted and recycled via qualified recycling contractors.
4. No illegal storage, dumping or transfer of hazardous waste occurs.

5.3 Energy‑consumption and Carbon‑emission Risks

Potential risks: high power‑energy consumption by cold‑stores, freezing equipment and production machinery.

Control measures:

1. Periodic equipment maintenance is performed to improve energy efficiency.
2. Production schedules and cold‑store operation cycles are optimised to avoid unnecessary energy consumption.
3. Energy‑saving and consumption‑reduction practices are continuously promoted to lower carbon emissions.

5.4 Farmland‑soil and Biodiversity Risks (key focus for planting bases)

Potential risks: soil contamination and farmland‑ecosystem disturbance caused by inappropriate pesticide and fertiliser application; risks of deforestation and vegetation destruction.

Control measures:

1. Caifutong Vegetable Specialized Cooperative implements standardised field management, uses permitted agro‑inputs and prohibits restricted/banned pesticides.
2. Scientific fertilisation is applied to mitigate soil compaction and contamination risks.
3. All planted areas are legally‑owned farmland; no deforestation, wetland encroachment or destruction of protected ecological zones takes place.
4. Peripheral field vegetation and minor local habitats are conserved to maintain stable regional biodiversity.

5.5 Chemical‑substance and Agro‑input Risks

Potential risks: improper storage and handling of pesticides, fertilisers, workshop disinfectants and laboratory reagents.

Control measures:

1. Agro‑inputs are managed by dedicated personnel with records for incoming receipt, issuance and recovery of unused materials.
2. Chemicals are stored separately away from fire hazards and food raw materials.
3. All operating personnel receive safety training.

6. Identification of Social‑impact Risks and Control Measures

6.1 Labour‑rights and Human‑rights Safeguards

Potential risks: excessive working hours, non‑standard remuneration, discrimination, child labour and forced‑labour risks.

Control measures:

1. All labour arrangements at bases and the factory comply with applicable laws; there is no child labour, forced labour or discriminatory practice.
2. Employment agreements are signed for all staff; wages are paid in full and on time and meet or exceed local minimum‑wage requirements.
3. Overtime work is voluntary, subject to time limits and compensated with full overtime pay.
4. A staff grievance and feedback mechanism is established to protect employee rights.

6.2 Occupational Health and Work Safety

Potential risks: physical hazards arising from field operations, machinery operation, cold‑store work and manufacturing processes, including slips, falls, collisions and mechanical injury.

Control measures:

1. All personnel are provided with personal protective equipment (PPE) and required to use it correctly.
2. Machinery is fully fitted with safety guards and subject to regular inspection and maintenance.
3. Regular safety training, emergency drills and hazard inspections are conducted.
4. First‑aid supplies and emergency materials are available; occupational‑health management is implemented.

6.3 Community Relations and Public Impacts

Potential risks: nuisance to neighbouring communities from production‑related noise, wastewater and waste.

Control measures:

1. Equipment is regularly maintained for noise‑reduction to contain operational noise levels.
2. Strict control of three types of waste (wastewater, waste gas, solid waste) prevents community nuisance.
3. Open communication channels with local communities are maintained to enable public oversight.

6.4 Land‑right Compliance

Land parcels farmed by Core agricultural base and construction land for Core supplier. have clear legal title and complete formalities. There are no land disputes, land encroachment, resettlement conflicts or unauthorised land occupation, fully satisfying ProTerra land‑tenure requirements.

7. Stakeholder Engagement and Consultation Records

Stakeholders consulted during this ESIA assessment include base farm managers, field operators, factory production, quality‑control, safety and human‑resources staff, senior management and supply‑chain managers from the trading company. Feedback on environmental management, agricultural practices, work safety and labour administration has been collected and incorporated into the improvement‑action list, ensuring a transparent, traceable and controllable assessment process.

8. Overall Risk Evaluation

Following comprehensive assessment: environmental and social risks across the certified supply chain (planting base + processing factory + trading company) are overall controllable, compliant and classified as low‑risk. Existing corporate management systems, control measures and on‑site implementation satisfy requirements under ProTerra Standard V5.0. No major environmental violations, critical safety hazards or material social‑non‑compliance issues have been identified.

9. Ongoing Monitoring and Dynamic‑update Mechanism

1. The enterprise conducts an annual review of supply‑chain environmental and social risks.
2. A new ESIA assessment is triggered immediately upon base relocation, capacity expansion, process modification or supply‑chain restructuring.
3. The public ESIA summary published on the corporate website is updated synchronously to ensure publicly disclosed information remains current and valid.

10. Conclusion

This Environmental and Social Impact Assessment for the full supply‑chain consisting of Core agricultural base, Core supplier and Xiamen Yung Yong Co., Ltd. is complete, authentic and valid. Supply‑chain environmental management, social responsibility, labour‑rights protection, work safety, land‑tenure compliance and ecological conservation satisfy ProTerra Standard V5.0 requirements. Risks are adequately controlled to enable sustainable and compliant operations.

Assessment Prepared by: Xiamen Yung Yong Co., Ltd.

Assessment Date: 20 August 2026