Sustainable Environment
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Sustainable Environment

Overview

HOW
WE MANAGE

CJ CheilJedang is aware of the potential impact that our products can have on the environment and strives to
minimize those impacts across the entire product development process. Can we make bio-degradable ingredients?
How can we reduce packaging? Is there any efficient way to recycle waste materials? We endlessly ask ourselves
these questions, look for solutions and apply them to production to enhance eco-friendliness. Until the day CJ
CheilJedang fully realizes a complete cycle of Nature to Nature, we will keep coming up with new questions.

2020 KEY
FACTS &
FIGURES

Total amount of Waste Reduction

Implementation of sustainable environmental management

Establishment of a sustainable environment system

Implementation Strategy

CJ CheilJedang is establishing mid- to long-term sustainable environmental goals and strategies to minimize environmental impact. Aiming to be
carbon neutral in 2050, we will gradually implement carbon emission reduction, eco-friendly energy introduction, plastic reduction, waste
resource circulation, and commercialization of biodegradable technology in the procurement-production-sales-recovery process. To accelerate
this process, we are setting up a task force to establish a sustainable environmental management system to minimize environmental impacts
caused by GHG emissions, energy, water usage, and take systematic actions against climate change risks. We will re-establish our environmental
management principles, set midto long-term goals, and enact an implementation system to publish a special report within this year.

Environmental Safety
Management Process

Under the slogan of “Create an OnlyOne
safety-first culture that puts the safety of
customers and employees first in all business
activities,” we have established a step-by-step
environmental safety strategy that
encompasses environmental safety & risk
awareness, improvement, prevention,
response, and diagnosis. With this, we can
preemptively identify and address core
environmental issues such as chemical
spillage and malodor.

CJ CheilJedang’s Environmental Safety Management Process)

Waste Reduction Activities

CJ CheilJedang endeavors to minimize waste
generated in its production processes and
increase recycling rates. We are seeking ways
to reduce waste and create new value by
turning waste into resources. In 2020, we
reduced waste by eliminating stickers on
frankfurter packaging, reducing the weight of
ssamjang and bibigo Porridge containers, and
products smaller. In addition, the residual
plant materials (rice bran and broken rice)
and compressed paper waste generated at
Jincheon BC were approved as usable
recycling resources by the government.

Removal of SPAM cap/Change of bibigo Mandu’s banding wraps

Carbon Footprint Certified Products

To control GHG emissions across the entire production process, we conducted carbon labeling on several products. In 2020, a total of seven products continue to maintained their certification.

Technology and Production process development
for sustainable environmental management

Eco-friendly fermentation processes

CJ CheilJedang produces amino acids through differentiated fermentation processes that use Corynebacterium and raw grains. This eco-friendly
fermentation method significantly reduces the volume of wastewater or gas generated during the amino acids production processes. In addition produced
byproducts during fermentation processes can be recycled and reused as fertilizers to boost growth of crop. Furthermore, Corynebacterium enhances feed
digestibility for livestock, reducing the amount of feed the animals need to consume, and reduces nitrogen in livestock excrement, contributing to sustain-
able environment

Production of the nine essential amino acids

With approximately 60 years of expertise in microbial fermentation R&D and our state-of-the-art technology, CJ CheilJedang has success- fully
manufactured the nine major amino acids using eco-friendly processes. CJ CheilJedang is the only company in the world that produces more
than five essential amino acids by fermentation. In 2020, CJ CheilJedang secured the technology to mass-produce Leucine, the ninth essential
amino acid we manufacture, using eco-friendly process. Amino acids are components of proteins, and livestock intake essential amino acids
through feed additives. CJ CheilJedang will complete a healthy cycle that connects feed (with essential amino acids added) → livestock → food
→ humans with our eco-friendly essential amino acid manufacturing processes.

CJ CHEILJEDANG’S SUSTAINABLE BIOCYCLE

Amino Acids
in Production with
Eco-Friendly
Fermentation
Method

Key Features
Lysine
  • Protein synthesis and muscle formation
L-Methionine
  • Anti-oxidation effect inside cells
  • Top priority essential amino acid for chicken, fish
Threonine
  • Improvement·maintenance of gut health
  • Activation of immune cells and production of antibodies
Tryptophan
  • Stress control for livestock
  • Improved productivity of sows’ milk·chicken eggs
Valine
  • Muscle protein synthesis
  • Increased feed intake and growth
Arginine
  • trength of blood health·immunity
  • Essential for chickens·fish
Histidine
  • Homeostasis control
  • Prevention of cataracts in salmon
  • Fatigue relief·muscle improvement
Isoleucine
  • Muscle protein synthesis
  • Increased feed intake·growth
Leucine
  • Blood sugar control·muscle growth
  • Production of hormones·energy
Production with low environmental impacts

Production of eco-friendly lysine at CJ BIO Piracicaba, Brazil

CJ BIO Piracicaba in Brazil, our South American base, produces lysine. In this plant, we produce about 100,000 tons of lysine
a year for swine feed. The CJ Piracicaba business site not only actively carries out eco-friendly production with our green
fermentation method, but it has also proactively reduces environmental impacts in its production processes. We successfully
reduced CO2 emissions by 88,600 tCO₂ by switching our energy source from LNG to Biomass. Going forward, we will continue
our efforts to reduce our environmental impact.

Production with low environmental impacts at Piracicaba, Brazil

Expanded use of wood chip fuel and bagasse fuel

CJ CheilJedang switched the production fuel used at its business site in Piracicaba, Brazil, from natural gas to biomass fuels, namely wood chips
and bagasse. Wood chips are produced from wood used in construction or the unusable roots and branches of trees that have been broken into
pieces for easy combustion. Bagasse is used as fuel after squeezing sugar from sugar cane and grinding sugar cane or cane stalks with leftover
residue. Biomass fuels are not only economic but also more eco-friendly since they create fewer GHG emissions such as carbon dioxide, sulfur
oxides, nitrogen oxides, etc., than petroleum or LNG.

Efforts to Establish a Sustainable Resource Cycling System

Establishing a sustainable packaging strategy

In step with global environmental trends, which demand reduced packaging waste and care for nature and society, CJ CheilJedang is establishing a resource cycling system. Under our sustainable packaging strategies of ‘minimize the plastic’, ‘educate the consumer’, and ‘expand the collaboration’ we reduced plastic use by a total of 1,019 tons through technology development, enhanced communication with customer and mutual cooperation Furthermore, CJ CheilJedang is striving to establish a sustainable resource circulation economy by reducing plastic packaging and developing alternative materials.

MINIMIZE THE PLASTIC

Enhanced Recyclability of Premium Oil

By using water-soluble adhesives for the containers of Beksul premium oil, we have made waste separa- tion easier for households. We also designed lids and PET bottles to be lighter, eliminated PVC* materials from tech bands, and started using transparent PET to enhance recyclability.

* PVC is unrecyclable material that accounts 0.4% of the entire plastic packaging used by CJ CheilJedang

Minimized Use of Plastics in Gift Boxes

We produced the tray for gift set, one of our major products, with 40% of recycled plastic to minimize plastic usage while applying an optimal design for it. We recycled the residual plastic pieces that remain after the production to minimize plastic use. The allpaper design also allows easy separate discharging and increases recyclability. Furthermore, we launched a gift set without any plastic caps for the first time in Korea.
EDUCATE THE CONSUMER

Global How2Recycle label

Our How2Recycle label is a standardized system that informs the public of recycling methods. It is applied to products made by Schwan’s and CJ Food USA.

Global How2Recycle label

Education on Domestic Packaging Disposal

From 2022, CJ CheilJedang will develop training content to raise consumer awareness about the correct way to recycle.
INCREASE THE COLLABORATION

Hetbahn container collection·upcycling campaign

As one of our resource cycling activities, we implemented a Hetbahn container collection·upcycling program for our staffs. We installed a Hetbahn container collection boxes at worksites and the collected containers transformed into reflective cards, which were donated to local children’s centers.

Efforts to build a circular economic system

We have collaborated with domestic and international value chains and participated in academic con- ferences and non-profit organizations in order to build a circular economy. In 2020, we participated in Swiss-Korean Innovation Week which was hosted by the Swiss Embassy in South Korea, joined the ‘SP4CE’ Online Community, an eco-friendly packaging community hosted by SK Global Chemical, and attended the Global Packaging Seminar.
FUTURE PLANS
CJ CheilJedang will set challenging goals to reduce plastic consumption, maximize recyclability, and de- velop alternative materials for plastics in the second half of 2020. In line with these, we will establish detailed action plans for 2021.
Sustainable Packaging Performance

The path of CJ CheilJedang in eco-friendly packaging

Since our establishment in 1953, CJ CheilJedang has launched the following products as part of its continuous efforts to realize eco-friendly packaging.

The path of CJ CheilJedang in eco-friendly packaging
* Susceptor: Enhance baking effect

Reductions in plastic raw materials and GHG emissions

Through its sustainable packaging strategy, CJ CheilJedang reduced plastic usage by 1,019 tons in 2020. This is equivalent to about 62.9 million 500 ml water bottles. That’s the amount of bottled water consumed by approximately 660,000 Korean people every year.

Effect of reductions in plastic raw materials*

Commercialization of biodegradable plastics (PHA*)

CJ CheilJedang has successfully developed a biodegradable PHA and commercialized it. This technology is the result of collaboration with three domestic companies. Thanks to our PHA mass-production and packaging development technology, the PLA film production infrastructure of SKC, and the compounding capability of Woosung Chemical to mix and process more than two biodegradable materials, we were able to intro- duce this new product. Going forward, we will gradually replace our disposable packaging materials with biodegradable (PHA) materials.

* PHA is the only bioplastic material that is biodegradable in soil as well as in the ocean. In February 2021, it acquired four types of TUV biodegradability certification, which is
   highly-regarded in Europe and North America.

TCFD FRAMEWORK

Humankind is now facing the climate crisis of global warming. It is not a regional crisis but a global climate catastrophe that threatens all of humanity. To this end, the international society is resolved to implement global efforts to address the issue of climate change. The Financial Stability Board (FSB), an international financial organization, established the Task Force on Climate related Financial Disclosure (TCFD) and presented global standards for the effort. CJ CheilJedang seeks to join the trend of the global response to climate change. We will strive to implement the recommendations by TCFD by reducing GHG emissions and increasing the use of renewable energy to enhance national sustainability.

Governance, Strategy, Risk Management, Indicators and Reduction Targets
Status Plan
Governance We have established the Coporate Sustainability Committee, which identifies major issues of sustainability, including climate change and environmental management, and reviews and approves related performances and improvements. Furthermore, the committee organizes the Sustainable Environment Management Council, which is chaired by the CEO, to execute and manage climate change and environmental management-related strategies approved by the BOD. To realize the virtuous cycle of Nature to Nature, CJ CheilJedang’s ultimate goal, in which we obtain resources from nature, provide food to consumers, and return the resources to nature, CJ CheilJedang has implement its Sustainable Environmental Management Project. Through this project, we will identify sustainable environmental strategies·goals and implementation systems and deliberate on them at meetings of the Coporate Sustainability Committee.
Strategy In the short term, we will establish and manage reduction targets for GHG emissions and energy consumption to eliminate financial impacts caused by the overuse of GHG emissions allocations. In addition, we are implementing a sustainable environmental management project to establish mid- to long-term environmental management strategies and implementation systems. We plan to increase the use of renewable energy and introduce bio-energy as well as additional solar energy. We will publish the environmental(climate change) policies and strategies as well as the midto long-term goals approved by the BOD in a special report on our climate change response at the end of 2021. By developing a prototype for a climate change risk cost calculation model, CJ CheilJedang will quantitatively and qualitatively identify risks and opportunities in consideration of climate change scenarios and reflect them in our future management strategies within the next three years.
Risk
Management
To alleviate business and environmental impacts caused by climate change and respond preemptively, we monitor GHG emissions and energy consumption. CJ CheilJedang has defined and proactively manages domestic GHG emissions, storms and floods as major risk factors. We have also expanded our scope of risk management to include the GHG emissions risks of our suppliers. We will quantitatively and qualitatively identify risks and opportunities with consideration for different climate change scenarios and establish integrated management with a company- wide risk management process within the next three years.
Indicators and
Reduction
Targets
To report GHG emissions under the Act on the Allocation and Trading of Greenhouse-Gas Emissions Permits (Emissions Trading Act), we set a goal of reducing emissions by 33% compared to BAU by 2030 based on the 2030 National GHG Emissions Reduction Roadmap and past data (GHG emissions, emissions intensity, and production volume).
Category Unit 2020
Direct emissions tCO₂eq 198,610
Indirect emissions tCO₂eq 207,217
Totla emmision tCO₂eq 405,827
We plan to re-establish our mid- to long-term goals(to be achieved by 2030 and 2050) to contribute to achieving the targets of the Paris Agreement and minimize environmental impacts through the Sustainable Environment Management Project. In addition, we will measure scope 3 emissions, in both the upstream and downstream sectors, and flesh out detailed strategies to achieve mid- to long- term goals within the next three years.