CJ Cheiljedang : 2022 Sustainability Report

CJ CHEILJEDANG Sustainability Report 2022

ABOUT THIS REPORT

REPORT OVERVIEW

CJ CheilJedang publishes the Sustainability Report every year to transparently disclose its sustainability efforts, performance, and goals. It also serves as a communication channel with its stakeholders. With the Sustainability Report, CJ CheilJedang aims to share the progress of its sustainability efforts and achievements with its stakeholders.

REPORTING STANDARDS

This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards 2021, an international sustainability reporting guideline. The report covers the company's efforts to meet the requirements of the Sustainability Accounting Standards Board (SASB) disclosures and the United Nations Sustainable Development Goals (UN SDGs). In preparing the report, the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) were taken into account.

REPORTING PERIOD AND SCOPE

This report provides an overview of CJ CheilJedang's efforts and performance from January 1 to December 31, 2022. It partly includes data from the first half of 2023 to help stakeholders understand the report. The scope of the report covers all of CJ CheilJedang's domestic and overseas sites and their economic, social, and environmental performance, excluding the logistics business. Starting from 2021, the report also covers overseas sites, and for overseas sites newly included in the 2022 report, the scope of the data is clearly indicated with footnotes and additional descriptions.

EXTERNAL ASSURANCE

This report has undergone a third-party assurance process by an independent agency, DNV Business Assurance Korea, to ensure the accuracy and credibility of the contents. Please see pages 112 and 113 for more details and the assurance statement. The third-party assurance statement for greenhouse gas emissions (Scopes 1, 2, and 3) is available on the CJ CheilJedang website.

Third-party Assurance of GHG Statements

CONTACT

For further information or inquiries regarding this report, please contact us using the following information.

CJ CHEILJEDANG

ADDRESS CJ CheilJedang. 330 Dongho-ro,Jung-gu,Seoul(Ssanglim-dong)

PHONE [phone]

EMAIL [e-mail] DATE OF ISSUE July 2023

COVER STORY	002

Aligned with its core values of "Wellness and Safety" and "Sustainable Environment," CJ CheilJedang is dedicated to building the virtuous cycle of "Nature to Nature." This cycle involves bringing resources from nature to the table and returning them back to nature. The cover of this year's report illustrates CJ CheilJedang's determination and challenging spirit as it expands its global presence to further promote the value of the virtuous cycle.

CONTENTS

003

This report is published as an interactive PDF, offering features such as shortcuts to relevant pages within the report, shortcuts to relevant websites, and videos.

	OVERVIEW		OUR APPROACH TO SUSTAINABILITY		PERFORMANCE		FUNDAMENTALS		ESG FACT SHEET		APPENDIX
005	Message from CEO	016	Sustainability Management Strategy		SUSTAINABLE ENVIRONMENT	073	Governance	089	Environmental Performance	097	Financial Information
006	70 Years of History		018 Partnership & External Recognition	024	Response to Climate Change	079	Compliance Management	091	Social Performance	100	Business Sites by Region
008	Company Overview	019	Stakeholder Communication	033	Sustainable Packaging	081	Information Security	095	Economic & Governance	103	GRI Content Index
010	Our Business	020	Materiality Assessment	037	Eco-friendly Material Solutions	082	Innovation				107	SASB Index
014	Sustainable Business				039	Sustainable Raw Materials Sourcing	086	Social Contributions				109	TCFD Index
							WELLNESS AND SAFETY							111	UNGC & UN SDGs Index
														112 Third-party Verification
						044	Enhancement of Health and
												114	External Awards
								Nutrition
						047	Food and Product Safety
						050	Strengthening Product & Service
								Responsibility
							PEOPLE AND COMMUNITY
						054	Zero Human Rights Risks
						058	Respect for DE&I
						065	Safety and Health
						068	Sustainable Supply Chain

OVERVIEW

005 Message from CEO

006 70 Years of History

008 Company Overview

010 Our Business

014 Sustainable Business

OVERVIEW

004

Our Approach to Sustainability

Performance

Fundamentals

ESG Fact Sheet

Appendix

CJ CHEILJEDANG Sustainability Report 2022

MESSAGE FROM CEO

DEAR CJ CHEILJEDANG STAKEHOLDERS,

THIS IS EUN SEOK CHOI, CEO OF CJ CHEILJEDANG.

I WOULD LIKE TO THANK YOU FOR YOUR UNWAVERING SUPPORT AND ENCOURAGEMENT OVER THE PAST YEAR.

Last year, despite the challenging business landscape both domestically and internationally, CJ CheilJedang achieved record-breaking sales and operating profit, and further solidified its internal strength and competitiveness. The Food Business continued its successful expansion into global markets with K-Foods, and the BIO Business expanded its business scope. Additionally, we launched the FNT Business, laying a foundation for our future innovative growth. While striving for sustainable growth by entering new business areas and expanding our global business, we also endeavored to fulfill our responsibility towards the environment and society by creating a virtuous cycle of "Nature to Nature."

WE AIM TO ADDRESS THE CLIMATE CHANGE CRISIS AND CREATE A SUSTAINABLE ENVIRONMENT THROUGH THE TRANSITION TO DECARBONIZED ENERGY AND INNOVATION IN ENVIRONMENTALLY FRIENDLY PRODUCTS AND SOLUTIONS.

CJ CheilJedang is implementing a comprehensive climate change response strategy to reduce carbon emissions. We have increased the use of renewable energy and the installation of solar panels, and established a foundation for Life Cycle Assessment (LCA) to analyze the environmental impact of the entire production process. We are also working to reduce the wasteful and unnecessary use of packaging and to switch to recyclable, reusable and compostable packaging. To this end, we have developed a "Negative List" to reduce the environmental impact of packaging materials and phase them out. In addition, we are focusing on providing sustainable material solutions to turn packaging materials into compost, thereby addressing the issue of microplastics from packaging materials. We have launched the PHACT brand for biodegradable PHA and are leveraging our proprietary technology platform to make it widely available for various products.

TO PROMOTE THE WELLNESS OF INDIVIDUALS AND SOCIETY, WE AIM TO IMPROVE THE NUTRITIONAL VALUE OF OUR PRODUCTS AND PROVIDE HEALTHIER AND SAFER FOOD THROUGH AN INDUSTRY-LEADING INTEGRATED

QUALITY AND SAFETY SYSTEM.

Keeping with the global trend towards healthy and balanced diets, we plan to expand the development of products with increased nutritional value.

To this end, we have established a medium- to long-term nutrition policy action plan to increase the use of healthy ingredients and minimize the use of unhealthy ingredients, while defining and implementing country- specific nutrition strategies. As a food manufacturer, thorough food safety management is essential to protect the health of individuals and society. We have a monitoring system in place to prevent quality issues throughout the value chain, and we have obtained more food production sites internationally certified for quality management (GFSI).

TO BE A MORE SUSTAINABLE COMPANY, WE COLLABORATE WITH ALL OF CJ CHEILJEDANG'S EMPLOYEES, OPERATIONS, EXTERNAL SUPPLY CHAINS, AS WELL AS THE LOCAL COMMUNITY. WE STRIVE TO GROW TOGETHER BY BUILDING A CREATIVE AND FLEXIBLE CULTURE OF DE&I (DIVERSITY, EQUITY, AND INCLUSION), ENSURING WORKPLACE SAFETY, ELIMINATING HUMAN RIGHTS RISKS, AND PARTNERING WITH OUR GLOBAL SUPPLIERS.

To help everyone grow as a leading talent, we infuse respect and DE&I into our organizational culture. Our global talent development program, CJ&me, is designed to help all employees pursue self-directed growth and change the way they work based on the value of DE&I. Today, sustainable supply chain management is recognized as a competitive differentiator, not just an element of ESG risk management. CJ CheilJedang is dedicated to various efforts in this regard, including establishing a supplier risk assessment system and supporting key suppliers in their ESG risk diagnosis and management. Respecting and protecting the rights of all stakeholders, including those involved in the supply chain, CJ CheilJedang proactively identifies risks and implements improvements in both domestic and overseas sites. Furthermore, we continue to provide training to help employees strengthen their human rights awareness.

This year marks CJ CheilJedang's 70th anniversary. Building a sustainable future is how we grow. By combining our time-honored strength with the full potential of all employees, we will be able to meet the challenges of the internal and external business environment and achieve shared growth.

We ask for your unreserved support for CJ CheilJedang's endeavors.

Thank you.

CEO of CJ CheilJedang EUNSEOK CHOI

OVERVIEW

005

• Message from CEO
  70 Years of History

Company Overview

Our Business

Sustainable Business

Our Approach to Sustainability

Performance

Fundamentals

ESG Fact Sheet

Appendix

CJ CHEILJEDANG Sustainability Report 2022