Communication on Progress

Participant
Published
  • 27-Jul-2021
Time period
  • May 2020  –  May 2021
Format
  • Stand alone document – Basic COP Template
Differentiation Level
  • This COP qualifies for the Global Compact Active level
Self-assessment
  • Includes a CEO statement of continued support for the UN Global Compact and its ten principles
  • Description of actions or relevant policies related to Human Rights
  • Description of actions or relevant policies related to Labour
  • Description of actions or relevant policies related to Environment
  • Description of actions or relevant policies related to Anti-Corruption
  • Includes a measurement of outcomes
 
  • Statement of continued support by the Chief Executive Officer
  • Statement of the company's chief executive (CEO or equivalent) expressing continued support for the Global Compact and renewing the company's ongoing commitment to the initiative and its principles.

  • Sample Statement of continued support

    [ 2021.05.07]

    To our stakeholders:

    I am pleased to confirm that [ Company Name ] reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

    In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

    Sincerely yours,

    
[ ]
    
[ ]

Human Rights
  • Assessment, policy and goals
  • Description of the relevance of human rights for the company (i.e. human rights risk-assessment). Description of policies, public commitments and company goals on Human Rights.

  • Sunner fully respects the laws and regulations related to international human rights and relevant statutes and applications mentioned in the Universal Declaration of Human Rights. 
    Regarding human rights issues involved in business communication and daily corporate management, the company has established relevant regulations on human rights in line with the international standard. They cover the requirements on the respect of human rights for business partners, living guarantee, safety production guarantee, life and health guarantee for employees of the company, and other laws and regulations related to protecting employees' human rights. 
    Sunner always has a policy of zero tolerance for problems related to the abuse of human rights. Every employee who encounters human rights problems can complain to the related authority department of the company, and the department would handle and settle the issues actively and safeguard the privacy and personal safety of the employee. 
    In the following year, Sunner will pay constant attention to human rights issues, keep improving the corporate policies related to human rights. In terms of the employee, please provide them with compensation and benefits needed for living security, pay the insurance, provide regular safety training for their health and safety, and better learning platforms to find their self-value in a harmonious work environment. 

  • Implementation
  • Description of concrete actions to implement Human Rights policies, address Human Rights risks and respond to Human Rights violations.

  • Sunner has formulated related policies to execute human rights policies, solve human rights risks, and cope with human rights violations. 
    Regarding recruitment policies, the company does not discriminate against gender, race, or age and will not ask questions about employee privacy, such as marital status, pregnancy, fertility intention, etc. It fully respects the human rights issues of employees. 
    About employee training policies, the company will provide both managers and employees with non-discriminatory training to make sure that they will treat employees seriously, rather than discriminate against anyone to realize whether they are discriminated against in work. Meanwhile, it establishes an employee discrimination feedback mechanism to report to the related person in charge to see whether they are discriminated against gender. 
    Concerning the employee welfare policies, employees are entitled to establish an independent labor union and negotiate to ensure that the labor union can strive for more benefits for employees. Besides, it provides employees with proper career planning and fully respects human rights and employee privacy instead of discriminating against them. 

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • In the early days, Sunner only has nine employees, and the number reached 25,000 by the end of 2020, of which female employees accounted for 46.29%. To provide families of these employees with a stable living guarantee, Sunner spent 1.401 billion Yuan/year on the total wage, including five social insurances and housing funds. 
    In the past 30+ years, the company has focused its relentless efforts on the white-feather broiler industry. Different from the standard practice, which is the "company + farmers" model in China. Sunner has from the very beginning adopted a closed-loop model of the whole industry chain: "self-breeding, self-feeding, self-slaughtering, and further processing," including feed mill plant, hatchery, grandparent and parent stock farms, broiler farms, and slaughterhouses are all self-owned. Moreover, it also established a complete traceability system to ensure food safety and enable traceability. Covering a chicken's growing, slaughtering, raising, hatching, eggs, and feeds. With all this, it has set up a benchmark for the industry and ensured the safety of chicken products. 
    Sunner keeps enhancing the value of employees, improving the salary incentive mechanism and promotion path, integrating "accommodation, catering, medical treatment, insurance, education, and other social resources," and providing employees with preferential and abundant welfare resources. It fully promotes Internet learning and helps employees obtain a better development space through great learning resources and vocational ability improvement platforms. It strengthens humanized management and creates the "breeding couple" mode according to the characteristics of the type of work to stabilize the balance between family and work of employees. It continues to improve the labor intensity, work environment, and employees' images, establish and improve the safe production and operation mechanism, create a sense of happiness and satisfaction in both the life and work of employees. It actively mobilizes employees' enthusiasm to be involved in the enterprise construction, including the breeding, production, transportation, packaging, sales, and others. 
    At the end of 2020, Sunner promoted the equity incentive policy for management and technology backbones so that all employees could pay more attention to the performance growth of the department and the company. 
    By the end of 2020, Sunner had donated 1.9 billion Yuan cumulatively in public welfare and charity, mainly for social assistance covering the "construction, poverty alleviation, help for those in need, disaster prevention, education, and medical treatment." 
    Sunner realizes poverty alleviation through industrialization and the creation of job opportunities. It also constructs a new rural area that provides the children of employees with access to better education, helps families get rid of poverty, and guarantees that employees can live and live work in peace. By the end of 2020, Sunner donated 40 million Yuan cumulatively to construct a primary school and health center in Zhongfang Village and improve its learning and medical environment. Moreover, it invested more than 6 million Yuan in the construction of leisure parks and farmers' clubs to enrich the life of villagers. 
    Sunner enables employees' children to attend "Guangze Experimental Kindergarten" (16 people), "No.1 Guangze Primary School"(30 people), "No.1 Guangze High School (Junior)"(50 people), and "No.1 Guangze High School (Senior)" (5 people) every year. To fully construct a characteristic town of Sunner further enhances the cultural knowledge of children of residents. In 2018, the county government established the Sunner Branch of Guangze Experimental Primary School, which was equipped with perfect teaching facilities in Sunner Town. It transferred 26 excellent experienced teachers from the Experimental Primary School. 
    Sunner will continue to adhere to the people-oriented principle and grow together with its employees in the coming year. 

Labour
  • Assessment, policy and goals
  • Description of the relevance of labour rights for the company (i.e. labour rights-related risks and opportunities). Description of written policies, public commitments and company goals on labour rights.

  • Sunner signs labor contracts that are in line with relevant stipulations of the People's Republic of China with regular employees, pay required insurances and related taxes for its employees, and pays wages to employees not less than the minimum wage stipulated by the state. 
    Sunner handles social insurances (including the basic pension insurance and basic medical insurance for urban and rural residents) for its employees. To guarantee the rights and obligations of each employee would be trained on the contents of the contract after being employed so that it can fully know relevant laws and regulations. Besides, the company also provides employees with regular labor-related training and promotion and wage increase opportunities. Moreover, employees can also enjoy the possibilities of fair employment, advertising, and training, etc.  
    Employees enjoy labor insurance subsidies, and Sunner provides employees who work on the posts in need of labor protection with free labor protection appliances. Employees who work outdoors in summer enjoy allowance for high temperatures. At the same time, employees who work in the ultra-low environment also enjoy funding for low temperatures by relevant stipulations. 
    The company divides all departments into management sequence, production sequence, professional sequence, marketing sequence, 21 ranks, and eight positions. It sets corresponding wages and allowance for different classes and qualities, such as academic allowance, title allowance, seniority allowance, party member dedication award, etc. Meanwhile, it also assists in the declaration of various talent allowances to strive for employee benefits, such as subsidy for engineering / non-engineering talents, rental assistance, housing subsidy, municipal subsidy, talent incentive housing, etc. The company establishes a corresponding relationship between the wage, treatment, and ranks in the same grades of different occupational channels and launches talent checks and promotions regularly every year. A talent evaluation team composed of a president and senior executives will assess talents so that each excellent employee can find its direction and position and achieve a competitive career development prospect. 
    Employees are entitled to participate in labor union activities, and the labor unit advocates free and collective negotiation, eliminates forced labor, child labor, and employment discrimination. 
    Where permitted by local laws, the company will inform the labor union of its rights and obligations. The company's management will meet with worker representatives, discuss problems related to the work of the labor union, and help with any complaint of human rights proposed by employees. 

  • Implementation
  • Description of concrete actions taken by the company to implement labour policies, address labour risks and respond to labour violations.

  • Sunner abides by local and state laws and regulations, and its labor contract signing rate is 100%. It practically safeguards the interests of employees, provides them with basic pension insurance, basic medical insurance, unemployment insurance, work injury insurance, and maternity insurance, optimizes the three-level salary system, proposes the equity incentive policy, and sets all kinds of allowance and talent subsidy. It provides canteens, dormitories, and housing subsidy, and solves the difficulty in going to school for employees. It launches talent checks, training, and promotion regularly, such as Sunner's talent program. 
    It abides by the international conventions signed or acknowledged by the Chinese government and international practices and respects the Universal Declaration of Human Rights, International Covenant on Civil and Political Rights, International Covenant on Economic, Social and Cultural Rights, and other conventions and declarations. 
    Sunner conducts re-examination and rectification of environmental protection and fire-fighting of old plants and equipment to be up to ecological conservation and fire-fighting standards. It carefully implements the relevant stipulations in the Safety Production Law and Regulations on the Safety Administration of Dangerous Chemicals to prevent all kinds of accidents and ensure the safety of the group, society, and people's life and property. According to GB/T29639-2013 Guidelines, for Enterprise to Develop Emergency Response Plan for Work Place Accidents, it formulates the Emergency Plan for Safety Production Accident of Fujian Sunner Food Co., Ltd. by combining the practices. The plan is applied to standardize and guide the emergency rescue actions of the company in case of emergencies so that it can launch emergency rescue timely, accurately, and orderly and take effective measures in time of accidents to minimize the casualties and economic loss caused by accident. The company also organizes fire safety drills (including fire emergency rescue and personnel evacuation drills, liquid ammonia leakage and personnel evacuation drills, etc.) and emergency rescue training every year. Its factories are equipped with safety officers and first-aid personnel who hold related qualification certificates. Throughout 2020, work injury accidents declined by 10% based on the previous year. 

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • Sunner abides by the local and state laws and regulations, and its labor contract signing rate is 100%. It practically safeguards the interests of employees, provides them with basic pension insurance, basic medical insurance, unemployment insurance, work injury insurance, and maternity insurance, optimizes the three-level salary system, proposes the equity incentive policy, and sets all kinds of allowance and talent subsidy. It provides canteens, dormitories, and housing subsidy, and solves the difficulty in going to school for employees. It launches talent checks, training, and promotion regularly, such as Sunner's talent program.
    Sunner establishes a labor union, and all employees are entitled to participate in the labor union, jointly formulate employee benefits, and report human rights issues. Meanwhile, they can meet with senior management of the company each month to solve the problems encountered in the daily operation of a labor union and help employees create a free and equal work environment to the greatest extent. It improves the workers' representative system, with a 100% labor union establishment rate, strengthens the grass-roots democracy construction and management system, and maintains the legitimate interests of employees. It puts an end to forced labor in all forms, issues the protocol of Conventions on Forced Labor, and formulates the regulations on the prohibition of forced labor. It establishes a fair, equal, competitive, and preferred talent use and selection mechanism and eliminates discrimination against employees due to race, gender, nationality, age, disability, marital status, religious beliefs, cultural background, language background, etc. Its female employees account for 46.29% of total employees, and it cares about employees in difficulty, retired cadres, and female employees. 

Environment
  • Assessment, policy and goals
  • Description of the relevance of environmental protection for the company (i.e. environmental risks and opportunities). Description of policies, public commitments and company goals on environmental protection.

  • To accelerate the construction of manufacturing power, implement the green manufacturing project and actively construct a green manufacturing system, GB/T 36132-2018 General Principles for Assessment of Green Factory was officially published in 2018, which was the first relevant standard for green factories formulated and issued in China. Sunner knows the tremendous pressure on the ecological environment caused by the resource and energy consumption and pollution due to the fast industrial development. The construction of an environmental and green development path shall be a long-term solution for enterprises. 
    Sunner launches the green factory work in six aspects, covering the infrastructure, management system, energy and resource input, product, environmental emission, and performance, and establishes the green factory management system per GB/T 36132. 
    While promoting business and technological innovation and reducing the waste of resources, Sunner reinforces the recycling of resources and new energy and vigorously develops green processing, green storage, green packaging, and green marketing. Following the "industrial chain of green circular economy," it carries out organic fertilizer production, biomass power generation, development and utilization of chicken manure, trash, and refuse, which protects the environment and drives the increase of economic efficiency. Protecting the environment is to maintain the fundamental interests of the enterprise, while the protection of ecology in Guangze would safeguard the sustainable future of Sunner. 

  • Implementation
  • Description of concrete actions to implement environmental policies, address environmental risks and respond to environmental incidents.

  • Sunner's production base relies on Wuyishan Natural Reserve and Futunxi, a source of Minjiang River, known as "green treasury," a "ecological, economic zone" in Fujian. It creates a unique barrier for the production of excellent pollution-free chicken. Guangze County, locating in the north section of the Wuyi Mountains, is one of the 28 protected zones in UNESCO's "Man and the Biosphere Program" in China. 
    In Guangze County, the forest coverage rate is 78%, and the annual average temperature is 17°C. It features a pleasant climate included in the core area of Wuyishan Natural Reserve, where there are two world heritage sites. With 66000 negative air ions / m3, it is a "natural oxygen bar." Sunner focuses on cultivating employees' environmental protection consciousness, providing employees with regular training in environmental protection, and proposes waste utilization, grain conservation, and low-carbon production. As a result, the consumption of natural resources has been reduced substantially (energy, fossil fuel, water, electricity, paper, packaging, etc.)
    Sunner builds a sewage treatment plant to process the wastewater produced from production. In 2019, it purified 10 million tons of sewage to allow water circulation in nature and endow it with a new value. 
    Sunner adheres to government support, enterprise entity, and market-oriented operation policy and sticks to the governance routes of source reduction, process control, and end-use. It fully promotes the resource utilization of poultry breeding wastes, with biomass power generation and biological natural gas as the central processing direction and agricultural organic fertilizer as the main utilization direction. 
    By the end of 2019, it had cumulatively generated 824 million kilowatt-hours with chicken manure and chaff and provided clean electric energy and heat energy to industrial production and residents' living. Besides, it had cumulatively produced 2 million tons of organic fertilizer, which improved the soil and transported necessary organic elements to grow crops. 
    The offal produced from the slaughtering and processing of chicken also has economic benefits. By the end of 2019, 15000 tons of refuse had been transferred to chicken powder, chick bone powder, chick bone soup, and other products cumulatively. It had 130000 tons of animal protein feed that had been shared cumulatively. 
    Since 2016, Sunner has continued to conduct technological transformation on the equipment of four food plants, built and re-built environmental protection treatment facilities. It constructed the sixth food plant according to the national green factory standard. Introduced automatic packaging line and stacking robots and realized the automatic weighing; bag making; sealing; coding; gold inspection; X-ray inspection; box sealing; stacking, and other processes, which significantly improved the production efficiency and reduced energy consumption. 
    In 2018, Fujian Sunner Development (Pucheng) Co., Ltd. formed the integrated union of enterprises, universities, research institutes, and end-users with Fujian Sunner New Energy Co., Ltd., Kunming Tianchen Intelligence Industry Energy Technology Co., Ltd., China Electronics Standardization Institute. Aiming at the high energy consumption, low resource utilization efficiency, poor harmless disposal of wastes in the raising, processing, packaging, and waste disposal of traditional white-feather broilers. it jointly implemented the "green design platform construction project for Sunner white-feather broiler whole-industry chain." Implemented eight sub-projects, established the environmental management system and energy management system, finished the system certification, and developed the life cycle evaluation and management system for Sunner white-feather broiler whole-industry chain. In August 2018, this project received a subsidy of 30 million Yuan for the industrial transformation and upgrade of the green manufacturing system integration project from the National Ministry of Industry and Information. 
    In 2019, the Pucheng broiler industrialization expansion project, under construction in full swing, made general plans in various aspects. It was covering constructing and renovating plants with green construction technology, reserving renewable energy application sites and designing load; rationally laying out the energy flow and material flow path inside the plant; adopting suitable advanced clean production technology and efficient end-treatment equipment, and establishing a resource recovery and recycling mechanism, etc. to create a green factory with all its strength.  
    In 2019, Fujian Sunner New Energy Co., Ltd. obtained a national invention patent, "collection method of abrasive blasting dust of chicken manure boiler." The invention removed the dust on the water wall surface in the abrasive blasting method. The collection of dust produced during the dust removal process in a negative pressure state could effectively eradicate the pollution of fust to the environment during the abrasive blasting operation. Meanwhile, this method can be applied during a unit outage or during several boilers, which could avoid the delay in the progress of the project caused due to the complete unit outage. In improving the energy efficiency of products, services, and technologies, the company researched, developed, and applied production wastes for power generation. While protecting the surrounding environment, it also explored the harmonious development of the environment and humans.
    Moreover, it displayed the company's efforts to replace traditional non-renewable resources with renewable new energy. Sunner shut down the carton plant in 2017 and purchased carton boxes by cooperating with the supplier in 2018 to put an end to the pollution caused by the production of carton boxes. The company established a special team for improving the packing materials, organized several departments to tackle critical problems, screened packing items that could improve, and drafted the packing specifications and materials that customers could accept. Moreover, it changed the carton formula, optimized the carton structure, reasonably configured the corrugated type, changed the double-wall to a single-wall corrugated carton box according to the actual needs to maximize the gram of the carton box. It integrated the specification and thickness of the inner bag, improved the utilization rate, reduced the thawing times, and actively assisted factories in saving the packing materials. In 2020, Sunner replaced the carton box with light and small woven bags and food-grade inner membrane to pack some chicken products. On the premise of not affecting the product quality, each woven bag was about 2 Yuan cheaper than the carton box. By the end of 2020, it saved a cost of three million cumulatively. For dealers/distributors other than major clients, Sunner's sales staff would assist merchants in collecting and sorting cartons for recycling.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates environmental performance.

  • Sunner is devoted to realizing the goal of zero emission, zero pollution, and zero waste. It strictly manages the discharge of all kinds of pollutants, advocates energy-saving and emission reduction, protects the bio-diversity, and actively copes with climate changes. 
    While promoting business and technological innovation and reducing the waste of resources, Sunner also strengthens the recycling of resources and new energy and vigorously develops green processing, green warehousing, green packaging, and green marketing. Sunner always abides by the "industrial chain for the green circular economy" and carries out organic fertilizer production, biomass power generation, development, and utilization of chicken manure, trash, and refuse, protecting the environment and driving the increase of local economic efficiency. Sunner purifies 10 million tons of wastewater every year, generates 824 million kilowatt-hours of power with biomass cumulatively, produces 2 million tons of organic fertilizer, and transfers 145000 tons of refuse. 
    The company participates in the observation by international environmental protection organizations, actively deals with the ecological issues disclosed by related protection organizations in the production process, and settles the environment-related influencing factors. During production, it is equipped with an intelligent environmental management system to identify, monitor, and control its environmental conditions. Moreover, it also adopts low-carbon environmentally-friendly materials for product packaging to reduce the impact on the environment. Some of its production technologies have gained exceptional support. They are launched for more enterprises, which supports the development of the local economy and gains approval from the local government. 
    It cooperates with third-party environmental monitoring organizations and tries hard to improve the production standard to monitor the impact on the environment during production. 
    The company takes an active part in the formulation of sustainable development reports. In 2020, it joined the survey by CDP environmental evaluation organization, actively disclosed problems related to environmental protection in the production and marketing process, and participated in and respect the global climate and forestry ecological development to make joint efforts for sustainable development of the world. 

Anti-Corruption
  • Assessment, policy and goals
  • Description of the relevance of anti-corruption for the company (i.e. anti-corruption risk-assessment). Description of policies, public commitments and company goals on anti-corruption.

  • President of Sunner, Ms. Fu Fenfang, and senior management of the company holds a zero-tolerance attitude to corruption, make relevant financial policies, set a financial audit department, and cooperate with a third-party audit company so that global directors, senior management, and ordinary employees of the company can strictly adhere to the baseline of morality, and abide by laws and regulations, as well as the anti-corruption policies of the company. Relevant anti-corruption policies have stipulated the situations prone to corruption risks, which including mediation costs, entertainment costs, giving or receiving gifts, sponsorship, provision of a political donation, etc., to avoid the corruption issues in the daily work of senior management and employees. 
    In terms of the treatment of corruption practices, the company organizes the self-inspection and self-correction for employees and cooperates with a third-party audit company. Once corruption practices are found, it will contact the local anti-corruption agencies in time and cooperate with related judicial organs to jointly launch the anti-corruption work. 

  • Implementation
  • Description of concrete actions to implement anti-corruption policies, address anti-corruption risks and respond to incidents.

  • To improve employees' understandings of anti-corruption and anti-blackmailing policies, the company will convey the anti-corruption policies through the notice of the formal anti-corruption plan, anti-corruption training for employees, and formulation of anti-corruption systems. Besides, it will organize regular self-inspection and self-correction for employees, monitor anti-corruption risks, and conduct anti-corruption training for all employees. 
    The company also establishes a clean workgroup to implement the anti-corruption policy thoroughly. With clear responsibilities, the workgroup will sort the corruption risks and cases regularly, conduct corruption risk training inside all company departments, establish an anti-corruption risk monitoring group, learn about the corruption situation in real-time, and make corresponding solutions. Once corruption issues are found, the company will also cooperate with local law enforcement agencies actively, crack down on corruption practices, and make corrupt personnel undertake corresponding liability for damage. 
    As for the clean workgroup and anti-corruption risk monitoring group, senior management will regularly discuss whether all services are legal and compliant, discuss and make anti-corruption policies, and keep improving to face the corruption risks in different stages. 

  • Measurement of outcomes
  • Description of how the company monitors and evaluates anti-corruption performance.

  • Sunner has two listed enterprises, and it has strict regulations on the audit by the financial and content department and strictly abides by the laws and regulations. Moreover, the company also requires the internal audit to be aware of anti-corruption and cooperate with the third-party audit and senior management to review the finance and corruption factors of the company regularly. 
    In the production, sales, marketing activities, and other links, the company will never make payments with verbal promises and sign legal contracts. In the agreement, the rights and obligations of both parties will be clearly stated and will judge the corruption. The corrupt partner will be deemed to have breached the contract and will investigate its legal responsibility. 
    The company takes an active part in the sharing of global anti-corruption experience and formulates a fair business environment policy with a third-party company. Furthermore, it encourages multiple stakeholders to conduct anti-corruption-related training and seminar and severely cracks down on corruption practices.