Sustainable Environment

Overview

HOW
WE MANAGE

CJ CheilJedang recognizes that product manufacturing activities may affect the environment in both direct
and indirect ways and thus has a dedicated group to implement environmental management. This group
manages overall environmental risk factors, including energy efficiency improvement and reduction of GHG
emissions and waste. Beyond simply reducing emissions and waste, we explore eco-friendly packaging: how
to minimize product packaging and recover waste materials. We also produce Bioproducts using eco-friendly
fermentation methods. We are building the ‘eco-friendly cycle’, obtaining resources from nature, providing
food to consumers, and returning resources to nature.

2019 KEY
FACTS &
FIGURES

1.Products with carbon footprint certification - Development of 9 eco-friendly products, 2. Reduction in waste by resource circulation methods * - 722tons Certification of resource circulation, 3. Reduction in CO2 as a packaging improvement task - 978tons Eco-friendly packaging performance, 4.Biodegradable plastics - Development of eco-friendly materials

Reinforcement of Environmental Management

Responsible Production for Sustainable Environment

Environmental
Management Strategies

CJ CheilJedang set a sustainable environmental
management system, presenting
a vision of becoming ‘a world-class green
management company’. We established
environmental safety strategies for all stages
from recognition of environmental risks to
improvement, prevention, countermeasures,
and diagnosis. We detect key environmental
risks such as chemical leaks and odors in
advance and preemptively deal with such
issues.

Waste Resource Circulation
Activities

All corporate business management activities
inevitably generate some amount of waste.
CJ CheilJedang does not simply reduce waste
but turns it into other resources to create new
value. In 2019, at our plant in Jincheon, we
improved the management of by-products
and waste by using pureed soybean from the
tofu-making process as ingredients. This use
of by-products and waste was certified by the
government as resources circulation.

Resource Circulation Certification for CJ CheilJedang Jincheon Plant, Resource circulation certification criteria (Storage standards, Economic feasibility, Harmful effects on human health, Others) Meeting the criteria > Use of ingredients from resource circulation > Approx.722 tons Annual reduction in waste

Environmental Management Group System

In order to minimize the environmental
impact of our products and services, we have
in place environmental management groups
at headquarters (in Korea) and business sites
in and outside Korea.

CEO - Business Management Administration - Safety Management Team - Food Production& Manufacturing Department (1. Environmental Safety Team for Global Production Support, 2. Environmental Safety Team for Business Sites) - Bio Business - Environmental Safety Team for Bio Engineering - Environmental Safety Division for Business Sites

Expanding Target Products
for Pursuing Carbon
Footprint Certification

In order to control GHG (Green House Gas)
emissions throughout the whole production
process, we are pursuing carbon footprint
certification for some of our products. In
2019, we achieved certifications for nine
products, including ‘Hetbahn’, soybean oil,
white sugar and brown sugar products.

CJ CheilJedang Products Certified by Carbon Footprint

Sustainability-based Development of Technologies and Products

Eco-friendly Packaging

CJ CheilJedang adopted the ‘Sustainable Packaging Policy’ to reduce waste from packaging materials and promote a sustainable
environment. We also achieve sustainable circular economy by developing new packaging structures and materials to control the use of
non-recyclable materials and minimize packaging. With such technologies developed for our major products, we reduced about 551 tons
of plastic raw materials in 2019. This is equivalent to the amount of plastics used to manufacture approximately 3,673 vehicles.

Implementation of the Sustainable Packaging 3R Policy(Recycle, Recover, Redesign) > Effect of reduction in plastic raw materials*The number of vehicles that can be manufactured using the amount of plastics as our reduction (150 kg per car), Reference: NHTSA (National Highway Traffic Safety Administration in the United States) > Reduced the use of plastics in ‘Hetbahn’ products by the same amount as those used to manufacture 2,293 cars, Reduced the use of functional films by the same amount as those used to produce 593 cars, Reduced the use of plastics in ‘Gourmet’ products by the same amount as those used to manufacture 73 cars, Reduced the use of plastics in Seasoning containers by the same amount as those used to produce 49 cars = Effect of reduction in GHG emissions*, * Area of a forest with 30-year-old pine trees that can absorb as much GHG emissions as our annual reduction (10.8 tons per ha), Reference: National Institute of Forest Science in Korea, Area of a forest 91ha with pine trees

Development of Biodegradable Plastics (CJ BIO PHA*)

CJ CheilJedang is committed to developing eco-friendly materials using its biotech capacity. The new plastic material developed
by CJ CheilJedang (CJ BIO PHA) is a type of synthetic resin used in plastic bags, food packaging, and coated papers. This eco-friendly
bioplastic is made with 100% renewable raw materials and is also biodegradable in the ocean.

* PHA: Polyhydroxyalkanoates

PHA Biodegradation Cycle [Bio Degradable : H2O, CO2 > BIO Base (Corn, Sugar cane, etc.) > PHA (Biodegradable plastic) > End Product, Bio degradation in ocean After 120 Days

CASE

Product
Packaging
Improvement
Case

40% of the raw materials used in the trays of gift packages, some of our major products, is recyclable. We
also reduced the space ratio for these products by 19%, cutting our plastic consumption by 80 tons in 2019.
We also reduced the weight of ‘Hetbahn’ containers, cutting the use of plastics by 344 tons in the same year.
Improvement of the recycling rate of gift set packaging materials, Optimization of containers and lid films for ‘Hetbahn’ products, Reduction of the thickness of packaging materials for ‘Bibigo' pouch HMR, CJ THE MARKET Using Only Water for Ice Packs

Eco-friendly Bio-fermentation and Refining Technologies

Based on our eco-friendly fermentation and refining technologies, CJ CheilJedang achieved the ‘sustainable bio-cycle’ of obtaining
resources from nature, providing food to consumers, and returning resources to nature. We promote environmental sustainability by
making products using natural ingredients and reducing the impact of our products on the environment – from consumption to disposal.