Material Issue 2. Response to Climate ChangeClimate change:
Can we turn it into opportunity?
HOW WE MANAGE
Global warming, abnormal climate, and environmental pollution have already become familiar dangers and realities. Response to climate change is now a social challenge that must be overcome through joint cooperation regardless of government, industry, or individuals. CJ CheilJedang declared Carbon Neutral & Zero Waste for 2050, and is going after sustainable businesses and investments for the future to turn a crisis into an opportunity. We aim to not only pursue business activities for carbon neutrality but also introduce eco-friendly products and technologies that can contribute to carbon neutrality through innovative technology that can be applied by each product unit.
Establishing mid-to long-term goals for 2030
CJ CheilJedang is working to contribute to our consumers achieving healthy and balanced eating habits by offering healthy food products. We are especially in the middle of implementing a mid-to long-term nutritional policy strategy that we established to increase the nutritional value of our company’s products. More specifically, we established ‘Nutrition Commitment 2025’ and are implementing nutritional quality improvement projects for each one of our products. We also newly established the process to assess the nutritional value when developing new products, strengthening the process for healthy product development. In addition, to enhance the implementation of our activities to improve the health and nutrition of our consumers, we formed a Nutrition Committee with the company’s overall value chain involved. Moving forward, we hope to continuously enhance our company’s action system for our nutritional policy and expand our portfolio of health-oriented products that consider consumers’ health and nutrition.
Response to climate change
In order to achieve Carbon Neutral & Zero Waste by 2050, we established a sustainable environment management strategy and came up with 3 strategic directions and 12 strategic tasks in the areas of decarbonization(GHG, energy) and circular economy(water, waste). Also, to quickly start the implementation, we established a ‘Performance Evaluation System’ that adds environmental business goals to the KPI. We are also pursuing the adoption of an internal carbon pricing system and an innovation program and a rewards program. Our company plans to construct a TF(Task Force) that can encompass the company’s value chain in its entirety to pursue implementation of tasks and achieve our goals.
Reduction activities at the business sites
Constructing eco-friendly energy supply facilities that use wood resources
As the first in South Korea, CJ CheilJedang is planning to build a steam gasification facility that uses wood resources(forest biomass) at the Chungbuk K-Food Valley where its CJ Blossom Campus is located. This is planned to begin in the first half of 2023 with the goal of commercial operation by 2025 as a part of the company’s effort to establish a forest resource-circulating energy supplying facility in line with the Green New Deal. Forest biomass is a clean energy system where the by-products from logging, such as branches, stems, etc. that are left behind are used, unlike the combustion system that produces second-hand environmental pollution during the energy production process. For this project, we plan to invest about KRW 130 billion and expect GHG emission reductions of about 44,000 tons per year by producing 50 tons of steam per hour, resulting in more jobs due to construction and operation of the facility and economic revitalization.
Validated as Zero Waste
In April 2022, CJ CheilJedang Jincheon plant became the first in the domestic food industry to acquire the Gold grade of the ‘Zero waste landfill’ validation from the global UL(Underwriters Laboratories). CJ CheilJedang will continue to carry out waste reduction and resource recycling activities to promote sustainable management in the waste sector that contributes to the national policy.
Reduction efforts in the products/
Building a reduction base for products/solutions
To promote reduction activities based on our products and solutions, we are building a standard to measure emissions by each product unit. As a part of the strategic tasks of 2022, we calculated the LCA (Life Cycle Assessment) of all of our major products. With this we plan to expand the product portfolio step-by-step to conduct LCA for each of the company’s product groups. Using the results from the LCA, we will review GHG reduction points and will work to reduce carbon emissions by incorporating new technologies. We will continuously work towards delivering carbon neutral products to our customers by gradually reducing the carbon emission amount of our products. In addition, we are looking forward to create new business opportunities through endless research and investment on eco-friendly products such as launching products made with food by-products and developing biodegradable plastic materials. We will objectively measure the environmental effects from these efforts and carry out external verification to earn the trust of our stakeholders and build a MRV(Monitoring, Reporting, Verification) model for better communication with them.
Reduction efforts in value chain and the community
Building a reduction base in the value chain
We are not only reducing emissions in our business premises, but also building a reduction standard and a GHG emission management system that encompasses the entire value chain (Scope3). We have derived our priority list by considering the amount of emissions as well as each Scope 3 category’s weight and importance. With this, we will build a GHG inventory one step at a time. In the mid- to long-term, we will gradually expand the width of Scope3, enhance the management system and basis by creating opportunities for collaboration with suppliers, affiliates, and partners to pursue cooperative reduction activities. With such efforts, we will proactively work towards our goal of full-scale operation of our reduction activities.
The number of consumers pursuing value consumption with heightened awareness to the climate change crisis and interest in healthy diet has increased. Therefore, CJ CheilJedang is working hard to reduce greenhouse gas emissions and develop food products that promote resource circulation. We developed ‘PlanTable’ Mandu, which is a plant-based food product that reduces greenhouse gas emissions that arise from largescale livestock farming. We also launched ‘Excycle Basak Chips’, a product that promotes food upcycling by using by-products of foods that are produced during the manufacturing process.
Launching PlanTable Mandu
As the first product of the PlanTable brand, CJ CheilJedang launched 2 types of Mandu made from 100% vegetable ingredients, such as TVP(Textured Vegetable Protein) raw materials and vegetable oils using soybeans and peas in December 2021. By using plant-based ingredients, we were able to bring out the delicious texture while canola oil and onion oil brought out the juiciness of the meat and flavor. Instead of adding unnecessary food additives, CJ CheilJedang used its own ‘TasteNrich’ solution, a natural seasoning material, to realize the taste of delicious Mandu without using any meat. Within three months of its launch, it reached 1st place in sales in the plant-based dumpling sector. In addition, we are currently exporting the product to 10 overseas countries in line with global demands and we plan to continuously expand the number of countries to export the product to.
Acquired V-label, a global vegan certification
PlanTable Mandu has acquired ‘V-label*’ by an internationally recognized certification organization and is officially labeled as a vegan product. In particular, Kimchi in the Kimchi Mandu is seasoned with pickled cabbage, garlic, and red pepper powder instead of the original Kimchi made with fish sauce.
Developing sustainable food products
We are continuing our efforts to reduce greenhouse gas emissions and environmental pollution caused by development of sustainable food and livestock farming by creating plant-based Mandu products that use vegetable ingredients such as soybeans instead of meat ingredients.
Launch food upcycling product
With the idea from CJ CheilJedang’s first in-house venture team, we launched ‘Excycle Basak Chips’, a product for food upcycling. Excycle Basak Chips are made from food by-products generated during the food manufacturing process that would have been discarded otherwise, particularly, ugly rice from Hetbahn and bean curds from Happy Soy Tofu products. For packaging, upcycled PET, (PCR-PET, Post Consumer Recycle-PET) that has acquired the GRS(Global Recycled Standard) certification was used. This product has become a representative example of eco-friendly food that reduces food loss and waste and contributes to resource circulation. We will continue our efforts to expand products that represent food upcycling.
Sustainable Animal Farming
With the spread of One Health, a concept that humans, animals, and the environment are interconnected and co-exist, our company is working to create businesses with the health of animals and humans in mind. The BIO sector of CJ CheilJedang produces 8 amino acids and amino acids for feed through an eco-friendly method that includes six decades of expertise in microbial fermentation R&D and state-of-the-art technology. By providing customized solutions for the customers, we are improving the digestibility of livestock which reduces the amount of feed required, and minimizing the amount of nitrogen generated by livestock excrement, all contributing to creating a sustainable environment. Starting in 2022, we have been progressing our low-protein E-balanced Diet Campaign that offers Eco-friendly, Economical, Efficient solutions through the use of our amino acids. Also our CJ Feed & Care sector is supporting the success of livestock farmers by securing differentiated feed-based technologies and developing high-quality feed, and providing consultations and solutions needed for farm operation. Furthermore, we are continuously introducing safer and healthier livestock based on our firm responsibility on high-quality feed and healthy livestock. In 2021, we launched ‘DonDonMyungJak Eco’, eco-friendly feed that effectively minimized the emission of Zinc generated by livestock excrement, which is a soil contaminating pollutant. We are also shortening the growth periods, thereby contributing to the revitalization of eco-friendly resource circulation.