Supply Chain
We build a sustainable supply chain for shared growth.
Our Approach
In today’s business environment, sustainability has become a crucial factor in a company's success and competitiveness. CJ CheilJedang, particularly with its complex supply chain driven by industry demands, recognizes the importance of maintaining a sustainable supply chain that incorporates environmental responsibility, social contribution, and economic performance. Moreover, the significance of ESG management in supply chain has increased with the introduction of Corporate Sustainability Due Diligence Directive (EU CSDDD). CJ CheilJedang is committed to advancing its sustainable supply chain efforts and enhancing overall supply chain sustainability.
Sustainable supply chain system
CJ CheilJedang has established and operates a company-wide supply chain ESG risk control framework to manage ESG-related risks and opportunities that within its supply chain. We identify and evaluate ESG risks during contract and transaction processes, based on the Code of Conduct for Suppliers and our supply chain management regulations. In addition, risk identification and assessment are conducted using both quantitative and qualitative criteria to ensure a detailed analysis of the characteristics and potential impact of risks. Assessment results are reported as needed to the supply chain working council, which consists of key executives, and implementation progress and task plans are submitted biannually to the Corporate Sustainability Council. Through this comprehensive internal control process, CJ CheilJedang rigorously identifies ESG risks that may arise within the supply chain and manages them effectively.
Supply Chain Management Policy
CJ CheilJedang has established the Supplier Code of Conduct to assess and manage ESG risks in the supply chain. To consider sustainability factors when selecting and evaluating suppliers, we specifically include provisions from the Supplier Code of Conduct, including human rights, environment, safety, and ethical management in standard contracts for compliance.
Management of the supply chain and key suppliers
CJ CheilJedang evaluates ESG factors such as human rights and safety upon new registration of suppliers to determine the possibility of further transactions. In addition, suppliers of raw materials are managed through assessments and regular audits. If the result of the assessments proves to be unfit, a penalty is given depending on the seriousness of the matter along with recommendations for improvement. In addition, CJ CheilJedang selects and manages key suppliers based on scale of transactions, substitutability, and sustainability.
Supply Chain Governance
At CJ CheilJedang, the Corporate Sustainability Committee under the Board of Directors takes charge of the Sustainable Supply Chain Policy, and operates a supply chain working committee for the implementation of the supply chain management policy and a company-wide cooperation. The supply chain working committee operates based on the leadership of the Purchasing Department of Food, Grain, and BIO sectors, and executes tasks that enhance the supply chain’s sustainability through collaboration with departments by function, including human rights, safety, etc.
Supply Chain Sustainability Assessment
Supply Chain Due Diligence and Continuous Improvement
We operate a structured ESG risk management process for our supply chain. In 2024, we carried out comprehensive evaluations—including self-assessments, industry-specific diagnostics, and consulting—targeting key suppliers. Participating in a joint ESG supply chain project led by the Korea Food Industry Association, we completed ESG diagnostics tailored to the food industry.
We also partnered with ESG rating agencies including eCredible and NICE D&B to deliver ESG training and conduct evaluations for 18 domestic SME suppliers. Based on the assessment results, we presented short-term and long-term improvement plans and supported the development of customized ESG roadmaps for each supplier. Incentives were provided to five suppliers that demonstrated strong performance.
To quantitatively assess ESG risks among suppliers, we utilize the EiQ platform to identify and manage risks across human rights, ethics, safety, and environment. In 2025, we will conduct additional SAQs and on-site evaluations for high-risk suppliers to further strengthen our ESG management capabilities.
Mutual Growth
Win-Win Growth Index
CJ CheilJedang was selected as an “Honorary Excellent Company” by the Korea Commission for Corporate Partnership in the 2024 Win-Win Growth Index, after receiving the highest rating for more than three consecutive years.
Support for Suppliers ESG Management
We operate diverse support programs to reinforce sustainable supply chain management, covering financing, technology, quality and hygiene, employment stability, and ESG practices.
Supplier Grievance Management
We operate a Voice of Collaboration (VOC) system to collects and addresses grievances and suggestions from suppliers. In 2024, no VOC submissions were received through the Shared Growth Portal, and all five dispute resolution requests were fully resolved.
