From Rice Fields to Factories
Sustainability (by Wilmar Sustainability Engagement)
The 8 Pathways of YKA Towards Net Zero
Crabs, ducks and crayfish have become unlikely climate allies in paddy fields across Liaoning, Heilongjiang and Hubei. By feeding on pests, tilling the soil and enriching the land with their manures, these animals reduce the need for chemical pesticides and synthetic fertilisers.
Wilmar’s Chinese subsidiary Yihai Kerry Arawana (YKA) has adopted this climate-friendly approach to farming across its supplier sites in China. It is one example of how the company’s sustainable agriculture programme contributes to a broader strategy for lowering greenhouse gas (GHG) emissions across its value chain.
As a leading player in China’s grains and edible oils industry, YKA launched its 2050 net-zero roadmap in December 2024, setting out targets to achieve net-zero emissions across its operations and supply chain, using 2022 as the baseline year. Its near- and long-term goals include:
- By 2030: 38% reduction in baseline year emissions
- By 2040: 104% reduction in baseline year emissions
- By 2050: Net-zero emissions
- Optimising energy structure
The first pathway focuses on:
- achieving 100% biomass substitution for coal gradually,
- scaling up renewable energy such as solar and wind power, and
- increasing the proportion of clean electricity.
To date, YKA has installed over 100MWp of rooftop solar photovoltaic panels across its factories and is targeting 200MWp by 2030.
By 2050, it aims to source 100% of its electricity from clean energy. At the same time, biomass boiler projects are being rolled out to replace coal boilers.
- Boosting energy efficiency
Through air and gas leak detection, equipment upgrades, facility improvements and energy recovery systems, YKA is driving efficiency across its operations.
In 2024, YKA implemented 123 energy-saving projects that reduced an estimated 82,000 tonnes of carbon dioxide (CO₂) equivalent emissions.
- Cutting fugitive emissions
YKA is addressing hard-to-abate emissions by gradually replacing high Global Warming Potential (GWP) refrigerants in its industrial refrigeration systems with low-GWP counterparts, reducing CO₂-based fire extinguishers, and maximising biogas capture.
In 2024, it successfully avoided some 234,000 tonnes of CO₂-equivalent emissions by recovering 15.16 million m3 of biogas.
- Promoting low-carbon consumption
In its downstream operations, YKA reduces its footprint through circular packaging, plastic recycling as well as consumer education. YKA recycles about 15,000 tonnes of plastic in animal feed packaging annually.
YKA further avoids the use of over eight million single-use cardboard boxes and more than 6,400 tonnes of paper consumption annually by promoting reusable foldable crates.
- Greening logistics
YKA will work with its suppliers to actively explore low-carbon fuels, such as liquefied natural gas, biofuels and other alternatives for international maritime shipping as well as new energy vehicles for domestic land transport.
YKA also continuously optimises transport routes to shorten travel distances, lower fuel consumption and minimise logistics-related emissions.
- Strengthening supplier partnerships
Sustainable agricultural practices, digital carbon management tools, and responsible procurement are central to reducing Scope 3 emissions.
For instance, the symbiotic ecological planting approach which YKA adopts across its upstream supply chain improves farmers’ livelihoods while reducing agricultural pollution and GHG emissions naturally.
As purchased products and services account for the bulk of YKA’s value chain emissions, the company aims for 67% of its suppliers to adopt GHG emissions reduction goals by 2029. Existing suppliers will be required to submit annual emissions inventories while new ones will be evaluated to ensure their emissions management mechanisms align with YKA’s 2050 net-zero targets.
To reinforce this, YKA is introducing advanced traceability systems to track its products from farm to fork. Suppliers that commit to the company’s No Deforestation, No Peat, No Exploitation (NDPE) Policy or possess certifications from sustainability bodies such as the Roundtable on Sustainable Palm Oil (RSPO) and the U.S. Soy Sustainability Assurance Protocol (SSAP) are given preference.
- Progressively achieving carbon neutrality
This pathway involves expanding the scope of carbon footprint certification and the steady advancement of carbon-neutral facilities. By the end of 2024, YKA had completed carbon footprint verification for 30 key products, including edible oils, fatty alcohols and soy protein isolate, as well as obtained carbon-neutral certifications for four of its factories.
- Practising low-carbon operations
YKA is embedding sustainability into day-to-day operations by advancing circular economy models, developing low-carbon production technologies, and implementing green office practices and low-carbon commuting. It is also proactively exploring circular economy applications across rice, wheat, soybean, corn, palm oil, and their by-products.
Collaborating for a Better Future
From low-carbon operations to clean energy adoption, these eight pathways form the backbone of YKA’s emissions reduction strategy to achieve net-zero GHG emissions by 2050.
Along the way, the company is facilitating the transformation of traditional agriculture into precision farming, advanced refining, and resource-efficient, sustainable practices.
“We deeply recognise the importance and urgency of setting net-zero emissions targets. Achieving them is a long-term and challenging task that requires collaboration across all sectors of society. Our goal is to inspire our partners to reduce GHG emissions together, ultimately achieving net-zero emissions across the entire value chain, and becoming a model for the green and low-carbon transformation of the grains and oils industry.”
- Kuok Khoon Hong, Chairman, YKA