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Major Areas

Selecting focus areas of sustainability management

CJ CheilJedang comprehensively analyzed the rapidly changing management environment and social issues, and listened to the opinions of internal and external stakeholders and experts, and selected key sustainability management activities. The selected 5 activities are ‘Providing healthy foods and leading the food culture,’ ‘BIO R&D for a global leap forward,’ ‘Environmental protection for responsible consumption and production,’ ‘Creating a win-win ecosystem through the creation of shared values’ and ‘contributing to the development of a sustainable society.’ We are conducting desirable and healthy business by conducting the selected activities in good faith.

Providing healthy foods and leading the food culture

BUSINESS TREND

In 2017, various safety issues were raised in Korea, and the global market is demanding a higher level of food safety standards. Accordingly, customers’ awareness of the importance of food safety is increasing. According to the changes in food-related mega trends, CJ CheilJedang, as a company providing foods and food materials, must give top priority to the safety of products and the health of customers. Also, to make the best use of characteristics of the industry, we must make efforts to respond to and improve such social issues such as the increase of the 1-person households and respect for human rights.

HOW WE MANAGE

By building all safe food-related processes from product development to distribution, we are providing safe food to consumers. In addition, we built global food safety posts, and take responsibility for the food safety of global customers as well as domestic customers. Also, we launched various products and brands in consideration of customers’ health, and by listening to the voice of customers, we are continuously making improvements. In addition, we are developing products that respond to various social issues by introducing halal certification and reinforcing development of HMR food.

2017 KEY PERFORMANCES

HMR 식품 개발 강화에 대한 성과 및 계획
KPIs 2017 Performance 2018 Plan
Sales based on the retail price of HMR KRW 1.5 trillion KRW 3.6 trillion
Building global safety posts We stabilized China, and built additional safety posts in Vietnam/the US. We expanded the quality HQ in China, and stabilized Vietnam/the US.
Global business grew dramatically Grew by 42.6% over the previous year Global sales amounted to KRW 5 trillion.

Bio R&D to Move into the Global Arena

BUSINESS TREND

All living creatures are comprised of protein, which consists of about 20 types of amino acid. Some of these are essential amino acids that you need to consume from sources outside of your body. The balanced consumption of amino acids by livestock is directly connected with themselves as well as the health of mankind, affecting future food security. We try to come up with measures to minimize the effect on the environment during R&D, and to observe environmental regulations as a global bio company to prevent further pollution.

HOW WE MANAGE

CJ CheilJedang develops functional feed and additives to increase the efficiency of livestock feed, securing the competitiveness of farming households and alleviating their environmental impact. We also operate eco-friendly plants and develop green fermentation methods to reduce the environmental impact of the product manufacturing process. We develop eco-friendly substances and explore CSV product opportunities, fulfilling our environmental responsibilities in both direct and indirect ways.

2017 KEY PERFORMANCES

환경 영향 절감에 대한 성과 및 계획
KPIs 2017 OUTCOME 2018 Plan
R&D investment KRW 60 billion KRW 70 billion
Sales of specialty amino acids (improving the environment and reducing the stress experienced by livestock) KRW 240 billion KRW 330 billion
Sales of fermented Cysteine (using an eco-friendly fermentation method) KRW 24 billion KRW 34 billion

Protecting Environment through Responsible Consumption and Production

BUSINESS TREND

Greenhouse gases, waste resources, and wastewater caused by companies in their production and distribution processes affect the environment in various ways. Moreover, abnormal climate change such as heavy rain, cold and heat waves triggered by climate change lead to unexpected events in the ecosystem as well as countries and local communities. In this context, there are increasing roles and responsibilities of enterprises to minimize impacts on the environment, such as GHG (Green House Gas) reduction and recycling resources.

HOW WE MANAGE

CJ CheilJedang has established long-term goals, a vision and annual strategies to minimize its impact on the environment, safety and GHG emissions, and conduct environmental safety activities. In the product and plant design process, we implement the preliminary environmental safety impact assessment system to identify and minimize the potential impact of corporate activities on environmental safety in advance. We also carry out regular diagnoses of environmental safety at domestic business sites to check if they follow environmental safety regulations and the internal rules of the company.

2017 KEY PERFORMANCES

환경 보호 최소화하기 위한 성과 및 계획
KPIs 2017 OUTCOME 2018 Plan
GHG emissions 363,943 tons 387,000 tons
Consumption of new and renewable energy 1,075TJ 1,084TJ
Waste discharge intensity 17.18 kg/ton 16.77 kg/ton

Develop a Win-win ecosystem through Shared Values

BUSINESS TREND

With an expanding global industrial environment, the scope of the supply chain that must be managed by companies has also been enlarged. A number of enterprises are working to enhance the capacity of the industrial ecosystem in addition to their supply chain, while extending the scope of the supply chain beyond simple financial support and technical development assistance.

HOW WE MANAGE

CJ CheilJedang manages the significance of the industrial ecosystem at the enterprise-wide aspect and establishes long-term plans, promoting a win-win growth* of large companies, SMEs and farm households. The company has also reinforced the virtuous cycle where the overall capacity improvement in the industrial ecosystem leads to the growth of the company. We support the sustainable growth of SME suppliers and farm households with funds, technologies, education and specific win-win growth programs including ‘Happy Companion’ and CJ Breeding’s activities. * Win-win growth: A mutual growth of large companies, SMEs and farm households.

2017 KEY PERFORMANCES

글로벌 산업환경 공급망 범위 확장을 위한 성과 및 계획
KPIs 2017 OUTCOME 2018 Plan
Technical support for SME suppliers 313 Cases 350 Cases
Cultivation area under contract with farm households 381ha 627.1ha
Naeil Chaeum (Brighter Future) Mutual Aid Program 10 persons 27 persons

Contribution to Sustainable Social Development

BUSINESS TREND

The independent growth of a company has slowed down as the competition between enterprises has intensified, while their relationships with various stakeholders has become complex. In this regard, global companies ensure their growth and sustainability by promoting harmonious growth with other members of society. In addition, there is a growing need for companies to support and communicate with local communities to grow together.

HOW WE MANAGE

CJ CheilJedang recognizes that employees are the key players in fulfilling social responsibilities, and encourages their active participation in social contributions. The company also lays the groundwork for win-win growth with local communities through not only investment and donation, but also strategic sharing activities for various stakeholders including customers, local communities and underprivileged households in its scope of business.

2017 KEY PERFORMANCES

임직원 기업이 사회적 책임 이행에 대한 성과 및 계획
KPIs 2017 OUTCOME 2018 Plan
Participation rate of employees in volunteer activities 85% 97%
Participation hours of volunteer activities per employee 8 hours/person 8 hours/person
Participation rate in donations 92% 97%
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