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Kweichow Moutai shares its ESG practices at 2025 Davos

2025-01-23 21:53:24Ecns.cn Editor : Mo Honge ECNS App Download

The 2025 World Economic Forum Annual Meeting kicked off in Davos, a small town in eastern Switzerland on Monday. This year’s gathering brought together nearly 3,000 leaders from over 130 countries, centering on the theme Collaboration for the Intelligent Age. Discussions revolved around five interconnected core topics: Reimagining Growth, Industries in the Intelligent Age, Investing in People, Safeguarding the Planet, and Rebuilding Trust.

At the invitation of the Forum, Wang Li, general manager of Kweichow Moutai Group, once again represented Moutai in Davos. On Tuesday, she participated in Davos-Caixin CEO Luncheon, the First Movers Coalition meeting, and the 2025 Davos-Tencent Finance Vision Dinner.

Speaking from various angles, she presented Moutai’s ESG experiences and practices, underscoring the proactive efforts and remarkable achievements of Chinese companies in ESG. She also demonstrated Moutai’s strong sense of responsibility and forward-looking vision as the world’s leading distillery brand.

Decoding Moutai’s ESG Practices

The 2025 Davos-Tencent Finance Vision Dinner, co-hosted by Tencent News, Tencent Finance, Tsinghua University PBC School of Finance, and the Global Economy Governance 50 Forum, brought together more than 30 prominent scholars, business elites, and policymakers from around the world. Focusing on Trust and Cooperation: A New Chapter of Globalization, attendees contributed ideas to promote global collaboration and high-quality development.

In an era of rapid change, companies face unprecedented challenges and opportunities. When asked how to stand out in a highly competitive market, achieve steady long-term growth, and embrace a new cycle through long-termism and high-quality development, Wang offered Moutai’s perspective.

Wang Li, general manager of Kweichow Moutai Group,shared a practical experience about ESG at the World Economic Forum Annual Meeting 2025 in Davos, Switzerland, Jan. 21. (Photo provided to Ecns.cn)

Wang noted that “long-termism” has been, and will continue to be, the cornerstone of organizational development. It is not only the core principle today but also the inevitable direction for future growth, she added.

Internally, it calls for a resilient supply chain, robust capabilities to face future challenges, and the accumulation of momentum for ongoing growth, while externally, enterprises must coexist harmoniously with nature and society, cultivating an environment conducive to sustainable development, the general manager noted.

She said “high-quality development” means balancing quality with efficiency, growth speed, and short- vs. long-term objectives.

She pointed out that the “new cycle” is characterized by increased complexity, reflected in the transition from old to new macroeconomic drivers. Additionally, a decline in consumer spending patterns and weak demand have contributed to cyclical adjustments across the industry.

According to Wang, recognizing and embracing the new cycle enables companies to navigate it successfully. The key lies in adhering to long-termism and high-quality development, with sustainability at the core—embedding ESG principles throughout the entire operational process to build momentum and advantages for future growth.

Wang illustrated how Moutai interprets ESG through its practices. Moutai’s heritage dates back two millennia to the “濮人善酿” (Pu people, renowned for their brewing skills). The Chinese character “濮 (Pu)” can be broken down into its components: “氵” represents nature, symbolizing harmonious coexistence with the environment; “亻” represents society, meaning shared social values; “业” embodies the spirit of craftsmanship, which indicates dedication, excellence, and passion for the craft, and “美” stands for the fine liquor that is finally brewed. This concept aligns with modern ESG principles: E (Environment) signifies harmony with nature, S (Social) reflects the shared social values, and G (Governance) integrates craftsmanship with advanced management practices to establish modern governance.

——Harmonious Coexistence with Nature. Wang stated that Moutai prioritizes ecological conservation. For instance, the company draws water from the Chishui River for its distillation process, ensuring that its wastewater discharge meets not only chemical standards but also biological and ecological criteria, safeguarding the entire river ecosystem. Additionally, Moutai emphasizes green industrial development, which includes energy conservation, carbon reduction, emission cuts, and enhanced efficiency, as well as the resource utilization, greening, and high-end use of by-products within its supply chain.

——Sharing Value with Society. Wang stated that Moutai stays consumer-centric by delivering functional, experiential, and emotional value while advocating a “self-enjoyment plus altruism” philosophy. For employees, Moutai ensures their sense of fulfillment, happiness, and personal growth through technical upgrades and productivity improvements, while also ensuring labor protection. For shareholders, Moutai maintains long-term dividends, increases share buybacks, and fosters strong communication with investors, enabling them to grow alongside the company. The company also forms communities of shared interests, emotions, and destiny with its partners, creating a business ecosystem of co-prosperity and shared values. Additionally, Moutai established the Guizhou Moutai Charity Foundation and introduced the “Heaven-Earth-Humanity-Culture” public welfare strategy, which covers ecological compensation, industrial empowerment, education, and cultural preservation, thus fulfilling its broader social responsibilities.

——Modernizing Governance. Wang emphasized that Moutai’s ethos — dedication, excellence, and passion for the craft — forms the foundation of the company. Building on this, Moutai has integrated the Performance Excellence Model and the EFQM Model with its own context to develop a modern management framework focused on strategy, budgeting, processes, performance, and risk management, significantly strengthening its governance capabilities. In 2023, Moutai won the National Quality Award for the third time.

In 2024, it became the first Chinese enterprise under the new regulations to be honored with 7 Diamonds and an Outstanding Achievement for an Inspiring Culture at the EFQM Global Award. These accolades exemplify the vitality that modern management has brought to Moutai’s longstanding legacy, fueling new momentum for sustainable development.

Wang stressed that for Moutai, “long-termism” means passing on a healthy, robust enterprise across generations. “High-quality development” depends on the “Four Obediences”—production volume, growth pace, cost, and efficiency must all yield to quality, using quality to solidify the foundation of development. Having navigated multiple cycles in its history, Moutai views this new cycle as both a challenge and an opportunity. By maintaining a strategic focus on long-termism and a relentless pursuit of high-quality development, Wang believes Moutai will “navigate through even the toughest challenges, like a light boat gliding through countless mountains.”

Moutai’s Green Technological Innovation

The Davos-Caixin CEO Luncheon has been held annually for 13 years and has become a highly recognized, international, high-profile, and interactive closed-door event during the World Economic Forum Annual Meeting.

This year, the luncheon focused on the theme “Tech Beyond Borders: Shaping Our Future.” Thirty-five global opinion leaders gathered to discuss various forward-looking global topics, including the leap of artificial intelligence, the rise of innovative tech companies, and achieving sustainable development through green technological innovation. During the event, Wang shared Moutai’s approaches and experiences in green technological innovation.

Wang Li, general manager of Kweichow Moutai Group,shares a practical experience about ESG at the World Economic Forum Annual Meeting 2025 in Davos, Switzerland, Jan. 21.(Photo provided to Ecns.cn)

“Like music and art, fine liquor is one of the languages that can achieve cross-border communication between people,” Wang noted during her presentation. She explained that brewing is one of the earliest technologies humans used to harness nature’s microorganisms to create food, earning it the title of the first generation of biotechnology. Chinese baijiu, including Moutai, is distinct from other spirits around the world, primarily using natural mixed inoculation and open solid-state fermentation. The core principle of Moutai lies in the rich diversity of microorganisms, which requires careful attention to seasonal timing, local conditions, and a harmonious balance between ecological, micro-ecological, and cultural factors.

In this way, the essence behind Moutai is to adhere to the principle of harmonious coexistence between humanity and nature, relying on green technological innovation to support the company’s sustainable development. Moutai’s green technological innovation encompasses two main aspects: the “greening of the main value chain” and the “utilization of by-products from the liquor industry.”

Greening the Main Value Chain

The liquor industry is Moutai’s core value chain. Wang emphasized that the green transformation of the main value chain is primarily focused on “energy saving, carbon reduction, emission reduction, and efficiency enhancement.”

“Energy saving” involves strengthening energy management. Over the past 70 years, Moutai has made several adjustments to its energy structure. From using wood and coal to switching to natural gas a decade ago, Moutai has increasingly adopted green energy in recent years. Every shift in the energy structure has provided new opportunities for Moutai’s growth.

“Carbon reduction” has been integrated into these energy structure adjustments. Moutai is also exploring advanced technologies such as CO2 heat pumps, waste heat recovery, and carbon capture to address carbon reduction challenges.

“Emission reduction” was particularly meaningful last year when Moutai conducted scientific calculations to measure the “carbon footprint,” “water footprint,” and “material footprint” of a bottle of Moutai. The company identified key stages to focus on and implemented measures to reduce carbon and water usage.

“Efficiency enhancement” requires both an emphasis on efficiency and benefits. Moutai uses innovative technologies to improve quality and efficiency in its processes. Through integrated top-level design and efficient coordination, the company continuously elevates the green level of its main value chain.

Utilizing By-products of the Liquor Industry

Wang stated that the utilization of by-products from the liquor industry must focus on resource efficiency, green practices, and high-end applications. Ten years ago, Moutai began actively exploring ways to convert by-products into reusable resources. Today, the company has achieved full-scale industrial utilization of brewing by-products such as lees and straw, realizing 100% resource recycling.

Moutai is also dedicated to addressing the greening and upgrading of by-products through ongoing technological research. For instance, Moutai is exploring three methods to turn the wastewater from fermentation pits into valuable resources: converting it into carbon sources for wastewater treatment; converting it into PHAs (Polyhydroxyalkanoates) for biodegradable packaging materials; using it to cultivate microalgae for producing functional proteins.

Moutai is committed to advancing the research and development of by-product utilization, striving to continually improve the green and high-end value of its by-products to enhance the overall industry’s added value.

Wang said “Liquor, as a food with deep historical roots, originated in agricultural civilization, is dependent on ecological civilization, and rose with industrial civilization. This process has imbued liquor with cultural, ecological, and modern characteristics. Looking ahead, Moutai will continue to utilize green technological innovations to maintain the unique characteristics of its products.”

Moutai’s Carbon Reduction Plan

Today, high-emission industrial sectors and agricultural food systems together account for approximately 60% of global emissions. In these areas, achieving carbon-neutral value chains requires companies with ambitious goals, government support, financial investment, and disruptive business models. Among these tools, green procurement is key to promoting transformation, establishing market conditions, and decarbonizing the value chains of high-emission industries. However, its potential has not yet been fully explored, which is why the First Movers Coalition (FMC) was established. The coalition, co-initiated by the World Economic Forum and the U.S. government, aims to drive high-emission industries to adopt breakthrough low-carbon technologies in order to meet global greenhouse gas net-zero goals.

At the First Movers Coalition leadership meeting, participants discussed reference paths for how to leverage the power of green procurement to expand the market potential for innovative clean solutions. As a special guest at the meeting, Wang also shared Moutai’s specific practices and innovative measures in carbon reduction, emissions reduction, and promoting sustainable development within the food industry. 

Wang Li participats in FMC Leadership Meeting’s Food Industry group discussion at at the World Economic Forum Annual Meeting 2025 in Davos, Switzerland, Jan. 21. (Photo provided to Ecns.cn)

Wang stated that in 2024, Moutai conducted a preliminary calculation of the greenhouse gas emissions over the full lifecycle of a bottle of Moutai liquor, dividing its carbon footprint into five stages: raw material procurement, brewing and production, product transportation, product sales, and packaging material recycling and reuse.

According to the carbon footprint calculation results, the first, second, and fifth stages are key areas for emission reduction. Based on these results, Moutai has developed targeted solutions for its supply chain:

1.Energy Structure Transformation: First, Moutai uses 100% green electricity for power supply. Second, it is exploring the integration of advanced technologies to replace natural gas boilers in the distillation process. Currently, small-scale experiments on the model and principles have been completed. The next step is to solve the issue of equipment integration. Once solved, green energy could replace natural gas as the energy source. Third, for scenarios where natural gas cannot yet be replaced, Moutai is exploring the use of advanced technologies to capture boiler CO2 emissions, convert them into carbon sources, and recycle them.

2.Promoting the Reduction and Green Transformation of Packaging Materials: Moutai is working to scientifically reduce the variety of packaging materials and minimize the weight of individual packaging units. For example, research is underway to reduce the weight of liquor bottles. At the same time, efforts are being made to reduce the use of paper products and explore the use of biodegradable, bio-based materials such as PLAs and PHAs in packaging.

Wang highlighted that the industry still faces challenges in the recycling and reuse of post-consumption packaging, which has also contributed to a certain level of carbon emissions. In 2025, Moutai will launch a nationwide initiative in China’s provincial capitals to recycle and resource post-consumption packaging. With these measures, Moutai aims to reduce the carbon emissions across the entire industry chain of a bottle of Moutai by 20% by 2030.

The World Economic Forum is a non-governmental international organization dedicated to researching and discussing global economic issues, promoting international economic cooperation and exchanges. It was founded in 1971 by Professor Klaus Schwab as the European Management Forum, and in 1987, it was renamed the World Economic Forum. This year marks the 55th annual meeting, which will run through January 24th.

During the Davos meeting, Wang will also participate in the “China Night” dialogue, where she will engage with experts from China and abroad to discuss Chinese companies’ responses to the intelligent era, as well as the shaping of the international image of Chinese enterprises.

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