Sustainable Environment
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Sustainable Environment

Overview

HOW WE MANAGE

CJ CheilJedang is aware of the potential environmental impact of our products 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 a more efficient way to recycle waste materials? We ceaselessly 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 5,577 Tonnes. Reduction of potential waste Obtained certification for resource circulation. Reduction in CO₂ emissions for packaging improvement 1,527 Tonnes. eco-friendly packaging. The only company in the world Generate Nine Major Amino Acids with eco-friendly mass production method. Commercialization of Biodegradable PHA Plastic

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, 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. This system will serve to minimize environmental impacts caused by GHG emissions, energy, water usage, and help us organize actions against climate change risks. We will re-establish our environmental management principles, set mid-to 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. This plan encompasses environmental safety & risk awareness, improvement, prevention, response, and diagnosis. In this way, we can preemptively identify and address core environmental issues such as chemical spillage and malodor.

CJ CheilJedang’s Environmental Safety Management Process : Selection of Core Safety· Environmental Risks, Risk Top 10 > Check business sites with risks and invest in improvements. RM(Risk Management) DAY > Control the spread of risks and check legal compliance, Conduct a safety design review > Establish an emergency response system, Swift Report System· Response System· Regular training > Conduct regular diagnosis and make ongoing improvement efforts, Diagnose environmental safety risks and evaluate the construction conformity

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 making the banding wrap on dumplings products smaller. In addition, the residual plant materials (rice bran and broken rice) and compressed paper waste generated at Jincheon BC were approved as resource circulation by the government.

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

Carbon Footprint Certified Products

We implement carbon labeling on several products to control GHG emissions across all our production processes. In 2020, a total of seven products 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. In addition byproducts during fermentation processes can be recycled and reused as fertilizers to boost growth of crop. We also reduced feed consumption and nitrogen generated by livestock excrement by developing a highly digestible product, thereby realizing greater sustainability.

Production of the nine essential amino acids

With six decades of expertise in microbial fermentation R&D and our state-of-the-art technology, CJ CheilJedang has successfully 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 in this manner. 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 : Grain Industry Biomass 1. Virtuous cycle through photosynthesis 2. Sustainable resources > Eco-Friendly Fermentation Processes CJ CheilJedang Bio plants > Sustainable Products 1. Amino acids for feed 2. Amino acids for food > Livestock Industry 1. Increased protein uptake efficiency for livestock 2. Reduced nitrogenous excrements (8-9%) > Environment 1. Less ammonia release into the atmosphere 2. Usage as a natural fertilizer

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
  • Immune cells vitalization and production of antibodies
Tryptophan
  • Stress control for livestock
  • Improved productivity of swine milk·chicken eggs
Valine
  • Muscle protein synthesis
  • Increased feed intake and growth
Arginine
  • Boost 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
  • Hormones·energy production

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 also proactively reduces environmental impacts in its production processes. We successfully reduced CO2 emissions by88,600tCO2 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 : Production value chain. Raw Materials + Energy, Expanded use of biomass. Efforts to reduce environmental impacts 1. Investment in facilities to transition from LNG to biomass energy sources. Achieved reductions of 88,600 tCO₂(LNG to BIOMASS) 2. Prioritization of hydropower electricity suppliers when selecting additional external energy sources to continue GHG emission reduction activities. > Production Processes. Efforts to develop eco-friendly production processes, Efforts to reduce environmental impact. Efforts to develop eco-friendly production processes(e.g., development of new bacteria strains) > Product Manufacturing, Amino acids for feed

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 construction work or come from the unusable roots and branches of trees that have been broken into pieces for easy combustion. Bagasse is made 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. Our sustainable packaging strategies are ‘minimize the plastic’, ‘educate the consumer’, and ‘expand the collaboration’. We reduced plastic use by a total of 1,019 tonnes through technology development, enhanced customer communication 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 : Technology - 3R(Redesign, Recover, Recycle) Policy-based reduction in plastic consumption

Enhanced Recyclability of Premium Oil

By using water-soluble adhesives for the containers of Beksul premium oil, we have made waste separation easier for households. We also lightened the weight of lids and PET bottles, 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. We recycled the residual plastic pieces that remained after the production to minimize plastic use. The all paper 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 : Communication - Providing packaging disposal information to consumers

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.

Special Instructions, Packaging Material, Consumer - Facing Website > Recyclability Icon, Packaging Component

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 : Building a mutual relationship and network to realize a circular economy across the value chain including the fields of education and industry

Hetbahn container collection·upcycling campaign

As one of our resource cycling activities, we implemented a Hetbahn container collection·upcycling program for our staff. We installed a Hetbahn container collection boxes at worksites, collected containers, and then upcycled them 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 conferences 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. In the same year, we also joined the ‘SP4CE’ Online Community, an eco-friendly packaging community hosted by SK Global Chemical. In the same year, we also and attended the Global Packaging Seminar.

FUTURE PLANS

CJ CheilJedang will set challenging goals to reduce plastic consumption, maximize recyclability, and develop alternative materials for plastics in the second half of 2020. To accomplish them, we will establish detailed action plans for 2021.

Sustainable Packaging Performance

CJ CheilJedang’s efforts for 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.

1996 : Launching Hetbahn, Achieving a long shelf life at room temperature by completely removing oxygen from the packaging. 2004 : An aluminum can adopted for Spam, The first such instance in South Korea for consumer convenience. 2013 : Eco-friendly packaging for gift sets, Development of an eco- friendly tray made of wheat bran. 2015 : Launch of Cupbahn, Eco-friendly packaging to replace the Hetbahn container cap. 2016 : Claypot kimchi container, Development of gas discharge & keep plates that combine tradition and science. 2018 : Gourmet susceptor* pizza, Development of a self-heating pad. 2020 : Eco-friendly logistics packaging for CJ The Market, An eco-friendly packaging solution developed to meet the increasing demand in cold storage·frozen logistics due to the online market expansion

Reductions in plastic raw materials and GHG emissions

Through its sustainable packaging strategy, CJ CheilJedang reduced plastic usage by 1,019 tonnes 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 : The number of water bottle that can be produced with the amount of annual plastic reduction achieved (0.0162 kg of plastic per bottle) Data: as recommended by the Ministry of Environment > Gift sets 48.5 million. Premium oil 9.88 million > Hetbahn 1.16 million > Pastes/seasonings 1.23 million > Other 2.13 million mineral water bottles. Equivalents : Mineral water bottles used annually by an average South Korean consumer (96 bottles) Data: “Plastic Report of Korea” by Greenpeace > Mineral water bottles consumed by 0.66 million people per annum

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 introduce 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 : Board of Directors supervision. Role of top management > Strategy :  Identification of short, mid, and long-term risks·opportunities. Business·financial impact of risks and opportunities. Analysis of climate change scenarios > Risk Management : Risk identification·assessment process. Risk management process. Company-wide integrated risk management process > Indicators and Reduction Targets : Risk·opportunity assessment indicator. Reduction targets and emissions
Status·Plan
Governance

Status

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 Board of Directors.

Plan

To realize the virtuous cycle of Nature to Nature, CJ CheilJedang’s Sustainability Purpose, 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

Status

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.

Plan

We will publish the environmental(climate change) policies and strategies as well as the mid-to long- term goals approved by the Board of Directors 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

Status

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.

Plan

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

Status

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 207,286
Total emissions tCO₂eq 405,879

Plan

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.

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