Strategies

CJ CheilJedang is committed to creating integrated values from economic, environmental and social perspectives
for sustainable growth and fulfilling its social responsibilities.

CJ CheilJedang’s Goals

CJ CheilJedang pursues core shared values of ‘Health and Safety’ and ‘Sustainable Environment’ across the overall business
management activities to achieve the virtuous circle of ‘Nature to Nature’.

VISION : Global No.1 Food & BIO Company > To-be : Sustainability Management System - 'Nature to Nature'Cycle To establish a virtuous circle to obtain resources from nature, provide food to consumers, and return resources to nature > Health and Safety (Nature to Table) : Production Food Safety ( Jeulgeoun Donghang (Happy Companion), Zero-dust, zero-microplastics ) , Raw Materials Biodiversity ( Rural development projects in Vietnam, Alternative Renewable resources project ), Consumption Nutrition ( Customized nutrition enhancement business , Materials as alternatives to antibiotics ), Disposal Zero-Waste( Establishment of the system for recycling and reducing the disposal of food products) - Sustainable Environment Nature to Nature > Consumption Biodiversity (Eco-friendly biomaterials as alternatives to chemicals, Eco-friendly feed additive business, Agricultural materials ) >Core Shared Values : Health and Safety > Major Area : Food Safety & Nutrition > Fundamental Factor : Sustainable Environment > Sustainable Environment : Biodiversity & Zero-waste > Fundamental Factor : Environmental Responsibility, Social Responsibility, Governance

Major Agenda

Establish a Sustainable System to Achieve
Strengthened ‘Health and Safety’ Value

Health and safety is our top priority across all processes from
procurement to development, production, sale, and disposal. We
will build processes to thoroughly check and prevent economic,
social, and environmental risks within the company throughout the
entire supply chain.

Establish a Sustainable Environment System

CJ CheilJedang recognizes that the manufacturing and use of
products have a potential impact on the environment. To fulfill our
responsibility, we will establish our own environmental management
system to create environmental values regarding the plastic
recirculation system, carbon emissions, and food waste reduction.

Business Department for Sustainability Management

For systematic sustainability management, we organized the cooperation department of each division, the Business Department for Sustainability
Management that integrates these cooperation departments, and the committee for policy suggestions and joint discussion for each issue..

CEO - Social Contribution Committee , Company-wide Risk Response Operating Committee, Business Management Administration, CBP Division - 1. Sustainability Management Organization : CSV Team ,2. E(Environment) [Environmental Safety Division, Packaging Division, Procurement Division], S(Social) [Procurement Division, HR Division], G(Economy & Governance) [Financial Division, R&D, Procurement Division, Compliance Division]

Joint
Discussion for
Social
Contribution

CJ CheilJedang implements company-wide joint discussion over each agenda to enhance its sustainability. In 2018,y
we established the Social Contribution Committee to ensure the transparency of purposes and processes regardingy
the use of donations and contributions. The committee members include CEO, CFO, compliance officer and CSRy
director. Under the Company-wide Risk Response Operating Committee, we run a company-wide risk system to takey
measures promptly for major risks and the committee is composed of On-site Response Team, External Responsey
Team, and Internal Operating Support Team.

Risk Management

CJ CheilJedang identifies financial and non-financial risks that affect its business management activities and defines potential risks that are
expected to have a major influence on its business in the future. Based on that, we conduct a thorough analysis and come up with countermeasures
to minimize their impact by running the dedicated management group.

Definition and Management of Major Risks

Dow Jones Sustainability Index
Risks	Definition and Impact	Management Group	Management Method
Overall business management	Risks arising across the overall business management activities regarding environment, industrial safety, quality and process may affect reliability and profits of the company. We thus operate the companywide risk response division against the occurrence of major risks.	Food Production & Manufacturing Department Business Management	Company-wide risk response division
Information security	Information security risks including threats to cybersecurity undermine trust with consumers and affect company profits. We thus operate the in-house group that protects personal information of consumers and confidential data of the company.	Convergence Security Team	Company-wide risk response division Organization of information protection group Designation of the dedicated security staff at each division
Taxation	Since CJ CheilJedang runs business all around the world, any compliance risk regarding local tax regulations and institutions directly affects company profits. We thus implement CJ CheilJedang Tax Policy based on local tax policies and regulations.	Financial Operation Division	Company-wide risk response division Tax policy Tax risk management process

Definition and Management of Emerging Risks

Dow Jones Sustainability Index
Emerging Risk	Definition and Impact	Management Group	Management Policy
Risk of rapid changes in the price of raw materials	Supply and cost risks may arise due to suddend changes in the price of major raw materials andd ingredients, which may have an impact on profit andd loss.	Food Procurement Department Global Procurement Strategy Division	Establish a system to monitor the price of raw materials and ingredients Monitor quantitative indicators Monitor qualitative developments
Foreign exchange risk management	Exchange rate fluctuations may result in increased uncertainty and changes in profit and loss.	Financial Strategy Division	Alleviate foreign exchange risk by first reducing exchange rate exposure through matching Hedge residual exposure through derivatives, such as forward exchange, in accordance with internal foreign exchange control regulations Strictly prohibit foreign exchange management for speculative purposes
Risk of changes in environmental safety regulations and policies	Inadequate response to changes in environmental and safety regulations and policies that apply to our business sites may cause legal risks, affecting the operation of business sites.	Safety Management Team Food Production& Manufacturing Department BIO Engineering Division	Establish a company-wide system for monitoring regulations - Take proper measures to comply with new and revised regulations that apply to the company, including consideration of proactive application of upcoming (noyet adopted) regulations
Business site safety risk	Environmental disasters, fire, industrial (severe) accidents, health hazards, and electricity-related factors are defined as the five major risks that may occur in manufacturing sites. These risks may affect the credibility of the company among employees and the community.	Safety Management Team Food Production & Manufacturing Department BIO Engineering Division	Establish a Risk-Top management system at each business site focusing on major accidents Strengthen the operation of SDR (Safety Design Review) Establish rules for safe code of conduct (‘No Stop? No Touch!’) Implement infectious disease prevention and management in phases
Demographic changes	Changes in the population structure, such as an increase in single-person households and female workers, affect the overall food business and require the introduction of new products that reflect customer needs based on changing trends.	Food Brand Marketing Division	Develop new HMR products that reflect the trend of pursuit of health and convenience Implement strategies for making premium HMR products Upgrade HMR products to the next level based on the trend forecast