CJ Cheiljedang : 2021 Sustainability Report Download

ABOUT THIS REPORT

REPORT OVERVIEW

CJ CheilJedang publishes a sustainability report every year to transparently disclose its sustainability activities, performance, and future goals and to use it as a communication channel with its stakeholders. Through its Sustainability Report , CJ CheilJedang plans to share the progress of its sustainability pursuits as well as its achievements with the stakeholders.

REPORTING PERIOD AND SCOPE

This report covers our activities and performance from January 1st to December 31st, 2021. It includes some information from the first five months of 2022 to assist stakeholders in understanding the report. The scope of the report covers all of CJ CheilJedang's domestic and overseas businesses and their economic, social, and environmental achievements excluding our logistics business. This year's report additionally covers overseas business sites, and some data that were collected starting with achievements from the year 2021 are supported with footnotes and additional descriptions.

REPORT PRINCIPLES

COVER STORY

This image embodies the virtuous cycle of 'Nature to Nature' where we deliver nature to our consumer's tables and bring it back to nature.

EXTERNAL RECOGNITION FOR OUR SUSTAINABILITY MANAGEMENT

This report was prepared in accordance with the Core Option of the GRI (Global Reporting Initiative) Standards

EXTERNAL ASSURANCE

This report underwent a third-party assurance process by an independent agency, LRQA to ensure the accuracy and credibility of the contents herein. Please refer to pages 94-95 for details and opinions related to the assurance.

INCLUDED IN THE DJSI FOR SEVEN CONSECUTIVE YEARS

The Dow Jones Sustainability Index was co-created by a global sustainability rating agency and investor, the S&P Dow Jones from the U.S. and a sustainability standards organization from Switzerland, called 'RobecoSAM'. CJ CheilJedang is the first Korean food company to be included for seven consecutive years in the DJSI(Dow Jones Sustainability Indices) Asia-Pacific Index. In particular, we received excellent ratings for establishing strategies for sustainability management(ESG: Environment, Society, and Governance) and embodying a mid-tolong-term roadmap, strengthening competitiveness in overseas markets through a global localization strategy and accelerating groundbreaking growth, as well as expanding the launch of products that take into account consumers' health and nutrition and transparently disclosing such information.

CONTACT

For further information or inquiries regarding this report, please contact us using the following information.

'BEST' GRADE IN THE SHARED	CJ CheilJedang has been selected as 'Best' Grade for six consecutive years, which aims to promote shared growth between large
GROWTH INDEX FOR SIX	corporations and SMEs. Especially, CJ CheilJedang has achieved high ratings in both the "Comprehensive Assessment for Shared
CONSECUTIVE YEARS	Growth" and the "Implementation Assessment of the Fair Trade Agreement". With the company's philosophy of 'contributing to
	the national economy', the fact that we have solidified our fair trade and shared growth structure attracted positive feedback.

CJ CHEILJEDANG

ADDRESS CJ CheilJedang. 330 Dongho-ro,Jung-gu,Seoul(Ssanglim-dong)

ACHIEVED GRADE A IN THE COMPREHENSIVE ESG EVALUATION BY KCGS

KCGS(Korea Corporate Governance Service), which aims to promote a healthy capital market by identifying companies with excellent performance in terms of improvements to corporate governance, social responsibility, and green management, has awarded CJ CheilJedang with Grade A+ for the Social Category in the ESG evaluation. We have earned Grade A in governance, environment, and ESG integration. In particular, we received excellent ratings in the areas of green management(environment), business partners and competitors, consumers(society), and information disclosure(economy). Through continuous improvement of our ESG performance and clear disclosure of information, we hope to lay the groundwork to launch as a top-tier global company.

PHONE	[phone]
EMAIL	[e-mail]
DATE OF ISSUE	July 2022
Homepage

ACQUIRED A RATING FROM THE	CJ CheilJedang acquired an A rating in the MSCI(Morgan Stanley Capital International) ESG assessment, which we have adopted
MSCI ESG ASSESSMENT	to inspect ESG risks and opportunities and integrate them into the management process upon MSCI's investment decision-
	making. In particular, we saw a great improvement in the areas of water management and corporate behavior compared to the
	previous year. We also received excellent ratings for Product Carbon Footprint, Corporate Activities,
	and product risk management.

CONTENTS

This report is published as an interactive PDF that includes functions such as shortcuts to relevant pages within the report, shortcuts to relevant websites, and videos.

MESSAGE FROM CEO

004 Message from CEO

006 2021 Sustainable Highlights

OVERVIEW

009 Company Overview

011 Business Review

018 Sustainability at CJ Cheiljedang

SUSTAINABLE IMPACT

023 Communication with Stakeholders

024 Materiality Assessment

026 Material Issue 1. Health and Safety

035 Material Issue 2. Response to Climate Change

044 Material Issue 3. Sustainable Packaging & Material Solutions

050 Material Issue 4. Respect for Diversity, Equity, and Inclusion

058 Material Issue 5. Strengthening Supply Chain Sustainability

ESG FACTBOOK

065 Environmental Performance

069 Social Performance

078 Economic Performance

082 Governance Structure

APPENDIX

087 GRI Content Index

091 SASB Index

092 TCFD Index

093 GHG Verification

094 Third-party Verification

096 Business sites by Region

098 External Awards

CJ CHEILJEDANG Sustainability Report 2021

MESSAGE FROM CEO

• Message from CEO

2021 Sustainable Highlights

OVERVIEW

MESSAGE FROM CEO• Overview • Sustainable Impact • ESG Factbook • Appendix

004

MESSAGE FROM CEO

GREETINGS,

I'M EUN SEOK CHOI, CEO OF CJ CHEILJEDANG.

SUSTAINABLE IMPACT

ESG FACTBOOK

APPENDIX

With the goal to achieve its sustainable goal, the virtuous cycle of 'Nature to Nature: Bringing nature to the consumers' tables and back to nature', CJ CheilJedang plans to create opportunities for

new businesses in eco-friendliness, new materials, food resources, etc. based on innovative technology and for expansion into global territories.

For the past year, CJ CheilJedang has exerted its efforts for all-rounded innovation to prepare for the future by strengthening its structural competitiveness and continuously leading its profit-based growth.

In the Food business, we were able to solidify the foundation for expansion into global territories with K-Food by maximizing our 7 Global Strategic Products, including Mandu and P-Rice, etc.

The BIO business strengthened its new growth engines by officially widening its territories to White BIO and Red BIO. On top of this, we established mid-term strategies for each business in line with CJ Group's four future growth engines (Culture, Platform, Health, and Sustainability) and are focusing on future innovative growth. These are meaningful achievements that were created during uncertainties amid the COVID-19 pandemic as well as intensified inflation.

In addition, we declared the year 2021 as the "First year of Sustainable Management" and built a system to pursue ESG management. We established the Corporate Sustainability Committee as the highest decision making body of the under the Board of Directors and assessed our strategies and directions. By establishing the Corporate Sustainability Council and the ESG Center, we heightened our implementation competencies. In addition, we built a roadmap to 'Respond to climate change' and to achieve 'Zero human rights risks'.

IN 2022, WE WILL PURSUE SPREADING OF THE ESG MANAGEMENT SYSTEM TO OUR OVERSEAS SITES AND THE SUPPLY CHAIN AND FOCUS ON MAGNIFYING ENVIRONMENTAL AND SOCIAL VALUE.

To this end, we will quickly and effectively implement the eight strategic tasks which were identified through the materiality assessment as seen by the stakeholders as well as business impact.

First, as a 'Response to climate change', we will achieve Carbon Neutral & Zero Waste not only in the production process but in all areas of the value chain.

In addition, we hope to contribute to resource circulation through our task on 'Eco-friendly packaging'. We will continue our research to reduce the use of plastic and build a firm collection/upcycling system for Hetbahn containers. We will also speed up the commercialization of PHA, a marine biodegradable plastic material, which is a part of our 'Development of eco-friendly material solution'.

CJ CHEILJEDANG Sustainability Report 2021

MESSAGE FROM CEO

• Message from CEO

2021 Sustainable Highlights

OVERVIEW

SUSTAINABLE IMPACT

ESG FACTBOOK

APPENDIX

MESSAGE FROM CEO• Overview • Sustainable Impact • ESG Factbook • Appendix

005

We will also place our emphasis on 'Improving health and nutrition'. In order to provide healthy food that our customers can consume with confidence, we plan to heighten the nutritional value of our products and increase the number of brands and products that meet CJ CheilJedang's nutrition standards. In particular, we look forward to launching new products that reflect changes in consumer lifestyles and social trends and enhance customer satisfaction.

In addition to the above, we will establish an 'Innovative organizational culture' to secure the best talents that will be the future leaders of innovative growth. We will further strengthen our 'Culture that respects DEI(Diversity, Equity, Inclusion)' where members can freely express their challenging and advanced ideas under fair opportunities and fulfill their competencies.

In particular, 'Respect for human rights' is a fundamental element that should not be compromised when advancing the business. To preemptively identify and mitigate human rights violations of various stakeholders and local communities related to business activities, we plan to expand the scope of on-site assessments to cover our overseas business sites as well as our suppliers.

We will also strive for 'Sustainable supply chain management'. We will expand 'Sustainable sourcing' required to protect biodiversity and the global environment, and strengthen partnerships with suppliers to build an ecosystem where we can all grow together.

Above all, we will sincerely communicate with our stakeholders.

We will further align the standards and policies of sustainability management for our stakeholders, and strive to communicate the company's updates through various channels.

I hope that this '2021 Sustainability Report', which is our eighth publication, serves as a stepping stone for us to get closer to you.

We ask for your kind interest and encouragement of CJ CheilJedang's firm will and effort to positively inspire all of us through sustainable management.

Thank you.

CEO of CJ CheilJedang EUNSEOK CHOI