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The demonstrative milk production plant is located in the heart of Yili Modern Intelligent Health Valley. The aim of the plant is to establish a global manufacturing benchmark in terms of scale, automation, technology, and carbon emissions. The project applies the most advanced technology in thermal energy recycling in aspects such as architectural design, energy circulation, production processes, and logistics storage. It can save 5,329 tons of standard coal annually and reduce carbon emissions by 41,895 tons. The daily energy savings are equivalent to the daily electricity usage of 930 households.

The wastewater treatment plant at the Weifang Yili Dairy Factory has an annual carbon emission of approximately 4,200 tonnes. In 2022, the factory achieved 'carbon neutrality' through various pollution and carbon reduction initiatives including biogas recycling, air blower replacement, sludge minimization, methane utilization, and distributed solar power generation, etc. These upgrades reduced approximately 4,284 tonnes of carbon emissions and saved RMB 640,000 in electricity costs and RMB 1,160,000 in steam costs, respectively.

In March 2023, Longyou Yili Dairy Factory successfully connected its 5.77 MW distributed photovoltaic power station to the grid.It is the largest distributed photovoltaic installation in China's dairy industry. The project includes an energy management platform, has integrated 20 energy management sub-systems, and has 554 monitored indicotors. Annually, the project reduces energy costs by more than 2 million RMB and reduced carbon emissions by 3,050 tons of CO?e.

Yili Yunnan Factory obtained a 'Green Electricity Certificate' in 2021, issued by the Kunming Power Exchange Center, for purchasing renewable energy from Yunnan Province. It is the first such certificate in China's dairy industry. In 2022, by purchasing renewable energy and China Certified Emission Reductions (CCER) credits, the Yili Yunnan Factory became the first Yili factory to achieve carbon neutrality.

Youran Dairy is a core raw milk supplier for Yili. In 2025, Yili continues its partnership with core raw milk suppliers in its emission reduction project. The Houshandai Dairy Farm under Youran Dairy generated biogas through thermophilic fermentation of manure after solid-liquid separation, producing up to 6.25 million cubic meters of biogas annually for a single 10,000-head dairy farm, When this amount is fully used for power generation, it will produce approximately 11.5 million kWh of electricity per year. By the end of 2025, anaerobic fermentation biogas power generation projects had been established and operated at 18 dairy farms under Youran Dairy. In 2025, the Zhumadian Dairy Farm adopted the "mesophilic and thermophilic anaerobic fermentation process", which significantly increased biogas production efficiency. This biogas utilization project passed the official technical review under Verified Carbon Standard (VCS) and successfully obtained 91,300 tons of carbon credits, the highest carbon credit ever received by a Chinese dairy farm.

In 2025, Yili continued to collaborate with suppliers on carbon reduction initiatives. Regarding the use of packaging materials, Yili worked with suppliers to promote the replacement of traditional cardboard boxes with reusable containers, using 74,000 fewer cardboard boxes and reducing annual carbon emissions by 25.16 tons. Simultaneously, Yili worked with suppliers to reduce packaging weight and use less plastic. By decreasing the use of PE pellets in yogurt bottles, it reduced pellet consumption of the year by 136 tons, leading to approximately 394 tons of carbon emissions reduction. Through close collaboration with its suppliers, Yili provided replicable experience for carbon reduction across the industrial chain, contributing to the green development of the industry.