Strategies
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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.

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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.

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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