Mengniu Dairy, the eighth largest dairy producer in the world, has received a slew of honors, in recognition of its sustainable development.

Dairy Products Being Packaged At Mengnius Factory MAR 1450 Mengniu Image01, Industry Today
Dairy products being packaged at Mengniu’s factory where Mengniu’s GOAL (Green Operation and Life) system is implemented

The organisation’s green innovation strategy – or GOAL system – is driven by the Environmental Sustainability TRACC, a best practice implementation road map developed by global continuous improvement leaders, Competitive Capabilities International (CCi).

Shifting consumer expectations, coupled with a strong desire to establish a responsible supply chain, led to the formation of Mengniu Dairy’s GOAL (Green Operation and Life) system in 2019. GOAL is also based on the 17 Sustainable Development Goals (SDGs), adopted by the United Nation in 2015, which are designed to end poverty, protect the environment and ensure peace and prosperity by 2030.

The decision to implement the Environmental Sustainability TRACC was informed by the success of Mengniu Dairy’s TRACC-powered WCO2.0, which led to significant improvements at its Fresh Fermented Dairy Products division. Mengniu Dairy is the first Chinese company to integrate TRACC’s Environmental Sustainability best practices into its knowledge management system which aims to promote the sustainable development of China’s dairy industry.

The GOAL system is a stage-based approach to best practice implementation which initially focused on four key focus areas: air pollution and substances of concern; waste; energy and climate change; and water. The system was then further refined to place greater emphasis on other sustainable development factors, such as biodiversity, soil health, nature education, volunteer spirit and promoting a culture that supports a flourishing ecosystem.

Sustainable development is now an integral part of the organization’s day-to-day operations; as Liu Jianqin, Operation Performance Director of Mengniu Fresh Fermented Dairy Products says: “The TRACC-driven GOAL system is proving to be the boost we needed to achieve our 2025 new Mengniu targets.”

In the two years since the GOAL system was introduced, Mengniu Dairy has made significant progress in resource utilization and environmental performance, including reductions in milk and other raw and processed material loss, water consumption, energy efficiency and carbon emissions. There were also marked improvements in environmental management system building (compliance and competency) and sustainability system building (awareness and competency, stakeholders’ connection and co-creations). The GOAL system was also featured in the Golden Key China Excellent Action Set for Sustainable Development handbook (published in 2021).

Dairy Products Being Packaged At Mengniues Factory Picture1, Industry Today
Green innovation is a top priority in Mengniu’s factories and the company has won numerous awards.

Other accolades include:

  • In 2020, Mengniu Dairy was the recipient of one of China’s first top sustainability awards, the Golden Key Honour Award; the company received the second Golden Key Excellence Award for ‘Fighting against food waste through cooperation with food bank’ in 2021
  • The company was named the carbon neutral best practice case for ‘Fighting against food waste through cooperation with food bank’ in 2021
  • Mengniu Dairy received the Golden Apple Award from the China Sustainable Plastics Association (CSPA) for replacing carton boxes with recycled polypropylene (PP) plastic boxes in 2019. In 2021, the company received the same award for the GOAL system implementation at the Qingyuan pilot plant
  • The company’s preventive milk loss map won second prize in the 4th ‘Puhua Smart Cup’ Benchmark Lean Improvement Competition in 2020; Mengniu Dairy also won first prize in the 5th ‘Puhua Smart Cup’ in 2021 for pasteurization milk loss improvement 

In December 2021, the Mengniu Fresh Fermented Dairy Products division presented CCi with the ‘Best Supplier’ award, in recognition of the vital role CCi has played in driving world class operations and supporting sustainable development efforts.

To learn out more about Mengniu’s green innovation strategy, and the recognition the organization has received, read this case study.

About Competitive Capabilities International (CCi)   
Established in 1987, CCi is a privately held, global company that enables organizations to deliver sustainable results across the supply chain through a continuous improvement solution called TRACC. With its core experience residing in manufacturing and supply chain best practices, CCi’s goal is to ‘unlock greatness’ in organizational capability through proven experience in World Class Manufacturing (WCM), Total Productive Maintenance (TPM), Six Sigma, Lean and Supply Chain Optimisation.  

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