CJ CheilJedang has upped its environmental, social and governance (ESG) management by launching its Carbon Neutral and Zero Waste 2050 initiative.
The company recently revealed a roadmap, approved by the Board of Directors, that introduces mid- and long-term objectives and strategies for 2030. The “CJ CheilJedang Commitment for Climate Action” released in December 2021 is Korean food industry’s first report in response to climate change.
“This plan declares specific actions that will be taken across all areas of business designed to minimize negative environmental effects leading to a sustainable life for our society,” said CJ CheilJedang CEO Choi Eun-seok in an email to all employees. “This is an opportunity to influence the market through low-carbonization and the development and acquisition of new technologies, giving a competitive advantage to companies that lead innovation, which will be a strong key to sustainable growth.”
The mid- to long-term strategy has three pillars: workplace decarbonization and energy conversion, eco-friendly innovation in products and solutions, and the establishment of green partnerships with partner companies and suppliers impacting the whole value chain. A total of 12 tasks were derived for each business area such as greenhouse gases, energy, water and waste.
In line with the first pillar, CJ CheilJedang will reduce the greenhouse gas emission from all of its workplaces by up to 25% by 2030 in comparison to 2020 emissions. Electric energy sources dependent on fossil fuels will be 100% replaced with renewable and bioenergy in American and European offices by 2030. This initiative will be expanded to the Asia region by 2050.
CJ CheilJedang will increase its efficiency in water usage and has pledged to keep food waste out of landfills. The company plans to reduce its total water intake per production output ratio by 10% to 20% by 2030 through investing in facilities that can reduce water usage. This process will begin with facilities in China and Indonesia where water intake is high despite the countries’ water resource vulnerability. For landfill waste, CJ CheilJedang will implement zero landfill policies at all of its facilities by 2030 through a global expansion of its domestic zero landfill efforts, currently at 0.4%. CJ CheilJedang also plans to lessen its total food loss and waste by increasing food product donations and recycling.
In an ongoing push to reduce carbon, CJ CheilJedang will strive to develop eco-friendly products and expand environmental solutions. The company will increase its use of sustainable products such as PHA, a biodegradable plastic material, meat substitutes, cultured meat-based food products and food upcycling. Through these actions, CJ CheilJedang customers will be able to contribute to reducing greenhouse gas emissions.
CJ CheilJedang will also minimize its carbon emissions throughout the entire value chain, from sourcing raw materials to sales and product disposal. To achieve this goal, the company plans to reduce its carbon footprint by preparing its key products and establishing an organic cooperation system with its supply chain partners. Moreover, the company will adopt an internal carbon pricing system that evaluates the potential costs of carbon emissions when making investment decisions.
CJ CheilJedang recently received a total of KRW 150 billion (approximately USD $116 million) in loans allocated for ESG activities. This funding, provided by Singapore’s DBS Bank, will be used as investment capital necessary for achieving the company’s carbon neutrality goals. Compared to general corporate loans, CJ CheilJedang has obtained the funds under favorable conditions as an additional interest rate cut incentive will be applied to the loan if CJ CheilJedang achieves its proposed ESG goals.
“Through the realization of the “2050 Carbon Neutral and Zero Waste” initiative, we will take the lead in sustainable growth, change and innovation to protect our home, the Earth,” said an official from CJ CheilJedang. “We will push forward in achieving CJ CheilJedang’s ESG goal named, ‘Nature to Nature: From nature, to consumers’ tables, and then returning to nature again.”
