CJ Corporation

CJ Corporation

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

CJ Corporation is a South Korean conglomerate holding company headquartered in Seoul, South Korea. The company through its subsidiaries operates in the following businesses: Food and Food services, Retail and Logistics, Entertainment and Media, Infrastructure, and Life Science.

Its food and food services unit owns such brands as Dashida (seasoning), Beksul (sugar, flour, salt), Haechandeul (sauces), and Spam (canned ham), as well as dumpling and tofu labels. The unit provides dining-out service, too, through restaurants and franchises. Using TV, the Internet, and other retail channels, CJ’s shopping and logistics unit pushes lifestyle health and beauty items as well as global delivery services. In addition, the company is one of Korea’s top entertainment content providers and has increasing interests in biopharmaceutical manufacturing (animal nutrition, MSG).

Notable CJ subsidiaries include CJ CheilJedang (Food and Beverage), CJ Logistics, CJ Olive Networks (Health & Beauty Stores & IT), and CJ ENM (Entertainment and Retail).

Subsidiary CJ CheilJedang’s vision is to become the global No.1 food & bio company, through the globalization of “K-Food” culture and a wide range of products and solutions in the fields of nutrition and health for humans, animals, and plants. They have business sites around the world, including the United States, Germany, Australia and Brazil, as well as Asian markets in China and Vietnam.

 
 

Company Sustainability Activity

CJ Corporation does not release a CSR Report, but displays relevant news on their website. The following analysis uses this information as well as the 2019-2020 Sustainability Report released by one of their major subsidiaries, CJ CheilJedang. Specific CSR information for their other subsidiaries is limited and/or outdated.

CJ Corporation’s founding philosophy is “contributing to the country and the community through business,” which all their subsidiaries attempt to pursue through sustainable growth. CJ Corp. places an emphasis on “CSV” (creating shared value) through a multitude of global endeavors.

CJ CheilJedang specifically, aims to achieve a future based on a “Nature to Nature” cycle, in which they obtain resources from nature, provide food to consumers, and finally return these resources back to nature. They place high priorities on health & safety, and sustainable environmental practices, through the use of products promoting healthy lifestyles, and technological innovation.

CJ CheilJedang’s efforts towards incorporating sustainability throughout their business model include:

  • A sustainable supply chain that focuses on consumer health and safety throughout the product life cycle, from the acquisition of raw materials to product development, production, sale, and disposal.
  • A unique environmental management system that establishes a circular economy system for plastic, reducing carbon emissions, and reducing food waste.
  • Global efforts to share a healthy and convenient lifestyle, through the development of health products for humans, animals and plants.
  • A committee to propose policies and discuss relevant issues, analyzing key sustainability issues within the company.
 
 

Highlights

  • Aim to fulfill the virtuous cycle of ‘Nature to Nature’ that transfers resources from nature to dining tables, and then, back to nature
  • Industry leader in eco-friendly packaging with biodegradable plastic and implementation of “Sustainable Packaging 3R Policy”
  • Declaration of support for “Women’s Empowerment Principles” launched by UN Women to promote gender equality
  • Compliance pledge signed by executives and employees to promote ethical management.
  • 600,000 tons of eco-friendly ingredients procured
  • KRW 100 billion worth of health products sold

Targets

Nature-to-Nature Product Life Cycle

  • Developing resource circulation methods
  • Developing innovative technologies to reduce waste throughout life of product
  • Sourcing ingredients from sustainable and eco-friendly suppliers

Development of Products and Services to Improve Health of Customers

Diversified Generation of Economic Value

  • Supporting a rise in female employees and executives within the company and globally
  • Supporting small-scale businesses within Korea and abroad

Progress

Nature-to-Nature Product Life Cycle

  • 722 ton reduction in waste with resource circulation methods
  • Resource Circulation Certification achieved for major plant
  • 978 ton reduction in CO2 emissions by using biodegradable plastic packaging
  • 600,000 tons of eco-friendly ingredients procured
  • Member of Roundtable on Sustainable Palm Oil and the Roundtable on Responsible Soy 

Development of Products and Services to Improve Health of Customers

  • KRW 100 billion worth of health products sold
  • No. 1 in global market share for nutritional enhancement products
  • Range of products with increased nutrients

Diversified Generation of Economic Value

  • Steady rise in female employees and executives within company
  • Major contributions to the UNESCO Malala Fund for Girls’ Right to Education
  • Project for rural development in Vietnam to support farmers
  • “Pleasant Companion” program to support local small business

Certificates

  • Resource Circulation Certification for CJ CheilJedang Jincheon Plant from South Korean Government
  • Nine of CJ CheilJedang’s food products are certified by Carbon Footprint
  • CJ Logistics has been issued the ISO 14001 certificate, an international standard that specifies requirements for an effective environmental management system

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 2

  • CJ CheilJedang supports ending global hunger through various endeavours such as a specialized seed company, CJ Breeding Corp., to address the problems of farmers facing low growth and aging. They also support emergency aid food, providing KRW 50 million worth of food to people affected by disasters in 2019.

SDG 3

  • CJ CheilJedang supports good health and well-being through a product line focused on promoting healthy lifestyles and nutritional benefits. 

SDG 5

SDG 8 

  • CJ CheilJedang supports decent work and economic growth through various projects aimed at creating shared value. In Vietnam, farmers are supplied Korean chili seeds to grow, increasing their household incomes. Through the “Pleasant Companion” program, CJ provides small, local companies with consulting in a variety of areas to build an ecosystem of mutual growth. Through the “Silver Delivery” program, CJ creates jobs for elderly citizens to deliver products.

SDG 12 

  • CJ CheilJedang supports responsible consumption and production through their sustainable sourcing practices. They have implemented a sustainable raw material procurement policy to enhance animal welfare, and have joined the Roundtable on Sustainable Palm Oil and the Roundtable on Responsible Soy, to ensure a high ratio of sustainable palm oil and soybeans being purchased.
 

While CJ Corporation’s business plan places a high emphasis on sustainability, validated by a wealth of awards and industry partnerships, they lack transparency and clear targets due to a lack of CSR reporting

Their major subsidiary, CJ CheilJedang, is working towards several SDGs, through innovative technology and a variety of global social welfare projects. While they have many initiatives and commendable progress, again they lack clear, quantifiable targets and timelines for their goals.

There is also a significant lack of focus on energy reduction in their factories and reducing reliance on non-renewable sources of energy, as their CO2 emissions continue to rise.    

To see other initiatives, see the Key Points section below. This company has been rated a B. 

Analyst Outlook: Neutral

Their ambitious projects and a product line focused on healthy living, as well as an industry-leading reputation, gives them a positive outlook.

They must improve their transparency and develop clear targets, as well as significantly reduce their reliance on non-renewable sources of energy. 

 

Key Points

  • A sustainable supply chain that focuses on consumer health and safety throughout the product life cycle, from the acquisition of raw materials to product development, production, sale, and disposal
  • CJ CheilJedang supports responsible consumption and production through their sustainable sourcing practices.
  • CJ Corp. places an emphasis on “CSV” (creating shared value) through a multitude of global endeavors.
 
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