Sustainbility Management Strategy

Sustainability Purpose

To become a top global company that can ensure its survival in the future, CJ CheilJedang creates the two core values, health
and safety and sustainable environment, across the purchase of raw materials, production, consumption, and disposal. To do so,
we aim to achieve the virtuous cycle of Nature to Nature in which we obtain resources from nature, provide food to consumers,
and return the resources to nature.

Key strategic tasks

The key strategic tasks are linked to our core values, Sustainable environment, Health and Safety.
We selected tasks as follows, based on their external priority and impact on business.

Core Values	Category	Strategic Tasks	Task Details
SUSTAINABLE ENVIRONMENT	Environment	Responding to Climate Change	Respond to climate change risks and achieve carbon neutrality by 2050
		Procurement of Sustainable Materials	Increase sourcing of material with enhanced traceability and transparency
		Eco-Friendly Packaging	Develop reusable·recyclable packaging material and reduce waste
		Development of Eco-Friendly Materials Solution	Develop large-scale solutions solutions including PHA using a variety of White Bio technologies
WELLNESS AND SAFETY	Social	Zero Human Rights Risk	Preemptively manage human rights risks human rights risks for stakeholders
	Social	Organizational Culture based on DEI	Establish organizational culture based on Diversity, Equity, Inclusion
	Governance	Enhancement Of Health And Nutrition	Establish CJ Nutrient Policy and expand portfolio of health-oriented products
	Governance	Sustainable Supply Chain	Identify and manage ESG risks of suppliers at an early stage

Corporate Sustainability Governance

We established sustainability management governance to secure our ability to implement consistent and comprehensive sustainability
management and preemptive risk management in order to facilitate timely ESG-related decision-making. To this end, we established
the Corporate Sustainability Committee under the BOD, the highest decision-making body, the Corporate Sustainability Council chaired
by the CEO, the Sustainability Team, and a council composed based on the core ESG agenda.

The highest decision-making body : Corporate Sustainability Committee, Deliberation & Resolution of Strategy and Agenda, Review and Submission of Agenda. Management-level council : Corporate Sustainability Council(chaired by the CEO), Environment > Foods·Bio R&D Center, Food Business Administration Division, Food Production & Manufacturing Department, Change and Innovation Manager, Bio Engineering Division, White BIO CIC - Performance Review and Improvements. Social > Foods·Bio HR Division, Change and Innovation Manager. Economy·Governance > Foods·Grains·Bio Procurement Division, Food Research Institute, Marketing, Legal Affairs Division - Progress report. Dedicated organization : Sustainability Team - Identification of Agenda and Issue Discussion. Working-level Council : Working-level Council for Corporate Sustainability - Establishment of the Core ESG Agenda Council

Risk Management

Preemptive Risk Management

Establishment of the ‘Compliance Management System (CMS 2.0)’

CJ CheilJedang established its CMS (Compliance Management System) 2.0 to forecast risks and take effective measures against them. To enhance existing compliance management, the new system identifies and categorizes potential risks that may occur in each organization. It establishes control measures for each risk and clarifies the R&R of the department in charge (designing, managing, and supervising essential control activities for each risk) and the lead department (conducting activities according to the design of the department in charge) so that the Compliance Team can act as the company-wide risk control tower to organically manage risk across the lead departments, departments in charge, as well as the BOD and its committees.

CEO - CEO MESSAGE, Declaration of the Top Management. Policy : The CJ People’s Promise | Ethical Management Pledge | CP Program Code of Operation | Policy & Guide. Process - Identification → Assessment → Mitigation → RCSA → Monitoring. Governance - Compliance Management System - Board of Directors / Committees, Control Tower, Compliance Officer, Compliance Team, Department in Charge, Lead Department. CMS System, Regulatory Trend, Description, Training, Report, Announcement / FAQ, Process. 10 Major Risk Areas : Fair Trade, Quality Safety, Labor Rights, Environmental Safety(including the climate change), Consumer Protection, Indus trial Safety, Resource Preservation, Anti-Corruption, Property Rights Protection, Privacy Protection

10 Compliance
Obligations

4대 주요 의무영역 공정거래, 품질안전, 환경안전, 산업안전과 부패방지, 개인정보, 자원보전, 노동인권, 재산권보호, 소비자보호

Key Tasks

Current status of
ISO 37301 (compliance
management system)
Certification

CJ CheilJedang obtained the standardized ISO 37301(compliance management system) certification in December 2020 and is maintaining the certification through regular post management assessments. The most recent post assessment was conducted in October 2021.

Expanding the Scope of
Global Compliance
Management

With the expansion of its global business, CJ CheilJedang’s compliance issues outside of the country have also increased. In response to the need to strengthen the legal and compliance management and response of overseas subsidiaries, we identified 54 global compliance obligations based on the global ethical management policy. In addition, we plan to continuously advance global compliance management by setting priority global compliance obligations and directions.

Reinforce capacity of overseas departments and headquarters’ legal organizations and strengthen management
Conduct monitoring of major overseas corporations
Prepare global policy
Strengthen networks with global law firms
Link to ESG management

Risk Response Division

Situation Supervision Team CJ CheilJedang takes a three-step approach to potential risks in 16 categories, covering the environment (including climate change), industrial safety, quality, and processes, according to severity. We operate a company-wide risk management system to swiftly report and take countermeasures, within 24 hours, through the Risk Response Division whenever a risk is determined to be a major risk. In addition, we utilize an integrated risk management process to prevent any potential confusion or delays that may arise from a risk occurrence, initial recognition of the risk, or response measures.

Management of
potential risks

CJ CheilJedang is working to identify and preemptively respond to potential risks that can occur in its Food and BIO industries.