CJ CheilJedang Sustainability Management

Major areas for sustainability management

CJ CheilJedang analyzes the rapidly changing business environment and social
issues with a comprehensive approach. The company listens to the opinions of
its stakeholders to select major areas for sustainability management, and to
contribute to social development.

2017 Sustainability Report PDF Download

Selection of Major Areas for Sustainability Management

CJ CheilJedang comprehensively analyzes the rapidly changing management environment and social issues, and collects opinions from internal and external stakeholders and experts to decide key activities for sustainability management. Five activities selected include: provision of healthy food and guidance for the dietary culture; BIO R&D to move into the global arena; environmental protection through responsible consumption and production; creation of a win-win ecosystem through shared values; and contribution to sustainable social development. We promote a desirable and healthy business by carrying out these selected activities.

Secure Healthy Food and Leading Korea’s Food Culture

Respresent image of product shipment process

Business Trend

In 2017, there were various issues regarding food safety in the domestic market, while the global market requires higher food safety standards, increasing the awareness of customers about the significance of this particular issue. With this shifting megatrend in the food industry, CJ CheilJedang, a company that provides food and food ingredients, must consider the safety of products and the health of customers as priorities. We respond to and tackle social issues, such as an increasing number of single-person households and respect for human rights, using the characteristics of our business.

How We Manage

CJ CheilJedang provides safe food through the entire process from development to distribution. The company also takes charge of the food safety of global customers by establishing a global food safety post. We have launched various products and brands aimed at improving the health of customers, while continuing to listen to their voices to make our products better. We are striving to reflect a range of social issues in our products by introducing halal food certification and facilitating the development of HMR (Home Meal Replacement) food.

2017 Key Performances

2017 Key Performances
KPls 2017 OUTCOME 2018 GOAL
Sales based on the retail price of HMR KRW 1.5 trillion KRW 3.6 trillion
Establishment of the global safety post Stabilization of the global safety post in China;additional establishments in Vietnam and the U.S. Expansion of quality HQ in China;
stabilization in Vietnam and the U.S.
Remarkable growth in global business Year-on-year growth of 42.6% Achievement of global sales of
KRW 5 trillion

BIO R&D to Move into the Global Arena

Respresent image of BIO R&D

Business Trend

All living creatures are comprised of protein, which consists of about 20 types of amino acid. Some of these are essential amino acids that you need to consume from sources outside of your body. The balanced consumption of amino acids by livestock is directly connected with themselves as well as the health of mankind, affecting future food security. We try to come up with measures to minimize the effect on the environment during R&D, and to observe environmental regulations as a global bio company to prevent further pollution.

How We Manage

CJ CheilJedang develops functional feed and additives to increase the efficiency of livestock feed, securing the competitiveness of farming households and alleviating their environmental impact. We also operate eco-friendly plants and develop green fermentation methods to reduce the environmental impact of the product manufacturing process. We develop eco-friendly substances and explore CSV product opportunities, fulfilling our environmental responsibility in both direct and indirect ways.

2017 Key Performances

2017 Key Performances
KPls 2017 OUTCOME 2018 GOAL
R&D investment KRW 60 billion KRW 70 billion
Sales of specialty amino acids(improving the environment and reducing the stress experienced by livestock) KRW 240 billion KRW 330 billion
Sales of fermented Cysteine
(using an eco-friendly fermentation method)
KRW 24 billion KRW 34 billion

Protecting Environment through Responsible Consumption and Production

Respresent image of Protecting Environment

Business Trend

Greenhouse gases, waste resources, and wastewater caused by companies in their production and distribution processes affect the environment in various ways. Moreover, abnormal climate change such as heavy rain, cold and heat waves triggered by climate change lead to unexpected events in the ecosystem as well as countries and local communities. In this context, there are increasing roles and responsibilities of enterprises to minimize impacts on the environment, such as GHG (Green House Gas) reduction and recycling resources.

How We Manage

CJ CheilJedang has established long-term goals, a vision and annual strategies to minimize its impact on the environment, safety and GHG emissions, and conduct environmental safety activities. In the product and plant design process, we implement the preliminary environmental safety impact assessment system to identify and minimize the potential impact of corporate activities on environmental safety in advance. We also carry out a regular diagnoses of environmental safety at domestic business sites to check if they follow environmental safety regulations and the internal rules of the company.

2017 Key Performances

2017 Key Performances
KPls 2017 OUTCOME 2018 GOAL
GHG emissions 363,943 tons 387,000 tons
Consumption of new and renewable energy 1,075TJ 1,084TJ
Waste discharge intensity 17.18kg/ton 16.77kg/ton

* The figures in 2017 include the key performance of domestic business sites only.

Develop a Win-Win Ecosystem through Creating Shared Values

Respresent image of Eco system

Business Trend

With an expanding global industrial environment, the scope of the supply chain that must be managed by companies has also been enlarged. A number of enterprises are working to enhance the capacity of the industrial ecosystem in addition to their supply chain, while extending the scope of the supply chain beyond simple financial support and technical development assistance.

How We Manage

CJ CheilJedang manages the significance of the industrial ecosystem at the enterprise-wide aspect and establishes long-term plans, promoting a win-win growth* of large companies, SMEs and farm households. The company has also reinforced the virtuous cycle where the overall capacity improvement in the industrial ecosystem leads to the growth of the company. We support the sustainable growth of SME suppliers and farm households with funds, technologies, education and specific win-win growth programs including 'Happy Companion' and CJ Breeding’s activities.

* Win-win growth: A mutual growth of large companies, SMEs and farm households.

2017 Key Performances

2017 Key Performances
KPls 2017 OUTCOME 2018 GOAL
Technical support for SME suppliers 313cases 350cases
Cultivation area under contract with farm households 381ha 627.1ha
Naeil Chaeum (Brighter Future) Mutual Aid Program 10persons 27persons

Contribution to Sustainable Social Development

Respresent image of Sustainable Social Development

Business Trend

The independent growth of a company has slowed down as the competition between enterprises has intensified, while their relationships with various stakeholders has become complex. In this regard, global companies ensure their growth and sustainability by promoting harmonious growth with other members of society. In addition, there is a growing need for companies to support and communicate with local communities to grow together.

How We Manage

CJ CheilJedang recognizes that employees are the key players in fulfilling social responsibilities, and encourages their active participation in social contributions. The company also lays the groundwork for win-win growth with local communities through not only investment and donation, but also strategic sharing activities for various stakeholders including customers, local communities and unprivileged households in its scope of business.

2017 Key Performances

2017 Key Performances
KPls 2017 OUTCOME 2018 GOAL
Participation rate of employees in volunteer activities 85% 97%
Participation hours of volunteer activities per employee 8hours/person 8hours/person
Participation rate in donations 92% 97%

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