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

Rawmaterial 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: Internallycontrolled document (only the public ESIA summary shall be disclosed externally)

1. Assessment Overview

To meet the environmental and social riskmanagement 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, productionprocessing plants and tradingoperation 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 riskmitigation, control, monitoring and continuousimprovement measures to ensure sustainable, compliant and transparent supplychain operations.

2. Assessment Scope and Supplychain 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, agroinput management, irrigation, field maintenance, harvesting, fieldwaste management, fieldlabour management and farmlandecosystem conservation.

2.2 Productionprocessing Tier: Core supplier

Covers all production activities: rawmaterial receiving, washing, sorting, blanching, sterilisation, freezing, grading, packaging, warehousing, coldstore operation, wastewater treatment, equipment maintenance, workshop labour management, worksafety administration and waste management.

2.3 Tradingoperation Tier: Xiamen Yung Yong Co., Ltd.

Covers business activities including supplychain procurement control, base auditing, traceability management, order administration, customer delivery, supplychain socialresponsibility 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 agriculturalinput management and farmlandecology conservation

4. Assessment Methodology and Procedure

This ESIA adopts a multidimensional comprehensive assessment approach:

1. Onsite inspection: field investigation at planting bases and fullsite walkthrough 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, humanresources 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 lowrisk levels

6. Formulation of mitigation measures, monitoring plans and continuousimprovement mechanisms

5. Identification of Environmentalimpact Risks and Control Measures

5.1 Waterresource Risks

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

Control measures:

1. Watersaving 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. Pretreated production wastewater is discharged into the municipal sewage network in compliance with discharge standards.

4. Wateruse and drainage ledgers are maintained; equipment is regularly inspected for leaks and spillages.

5.2 Wastemanagement Risks

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

Control measures:

1. Planting residues are either recycled onsite for resource utilisation or collected for authorised offsite removal.

2. Fruitandvegetable processing offcuts 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 Energyconsumption and Carbonemission Risks

Potential risks: high powerenergy consumption by coldstores, freezing equipment and production machinery.

Control measures:

1. Periodic equipment maintenance is performed to improve energy efficiency.

2. Production schedules and coldstore operation cycles are optimised to avoid unnecessary energy consumption.

3. Energysaving and consumptionreduction practices are continuously promoted to lower carbon emissions.

5.4 Farmlandsoil and Biodiversity Risks (key focus for planting bases)

Potential risks: soil contamination and farmlandecosystem 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 agroinputs and prohibits restricted/banned pesticides.

2. Scientific fertilisation is applied to mitigate soil compaction and contamination risks.

3. All planted areas are legallyowned 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 Chemicalsubstance and Agroinput Risks

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

Control measures:

1. Agroinputs 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 Socialimpact Risks and Control Measures

6.1 Labourrights and Humanrights Safeguards

Potential risks: excessive working hours, nonstandard remuneration, discrimination, child labour and forcedlabour 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 minimumwage 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, coldstore 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. Firstaid supplies and emergency materials are available; occupationalhealth management is implemented.

6.3 Community Relations and Public Impacts

Potential risks: nuisance to neighbouring communities from productionrelated noise, wastewater and waste.

Control measures:

1. Equipment is regularly maintained for noisereduction 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 Landright 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 landtenure requirements.

7. Stakeholder Engagement and Consultation Records

Stakeholders consulted during this ESIA assessment include base farm managers, field operators, factory production, qualitycontrol, safety and humanresources staff, senior management and supplychain managers from the trading company. Feedback on environmental management, agricultural practices, work safety and labour administration has been collected and incorporated into the improvementaction 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 lowrisk. Existing corporate management systems, control measures and onsite implementation satisfy requirements under ProTerra Standard V5.0. No major environmental violations, critical safety hazards or material socialnoncompliance issues have been identified.

9. Ongoing Monitoring and Dynamicupdate Mechanism

1. The enterprise conducts an annual review of supplychain environmental and social risks.

2. A new ESIA assessment is triggered immediately upon base relocation, capacity expansion, process modification or supplychain 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 supplychain consisting of Core agricultural base, Core supplier and Xiamen Yung Yong Co., Ltd. is complete, authentic and valid. Supplychain environmental management, social responsibility, labourrights protection, work safety, landtenure 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: 1 September 2026