CJ CheilJedang Declares "Achieving Carbon Neutrality by 2050... A Crisis and an Opportunity"

CEO Choi Eun-seok's Email to Employees
"Minimizing Carbon Emissions, Operational Innovation
Will Be the Key to Sustainable Growth"

2030 Mid-to-Long-Term Goal Roadmap
25% Reduction in Greenhouse Gas Emissions
100% Transition to Renewable and Bio
Expansion of Eco-Friendly Products like PHA
Introduction of Internal Carbon Pricing System

[Asia Economy Reporter Lim Hye-seon] CJ CheilJedang has declared its commitment to achieving "carbon neutrality and zero waste by 2050." Carbon neutrality means implementing measures to absorb as much carbon dioxide as is emitted, effectively reducing net carbon emissions to zero. On the 22nd, CJ CheilJedang announced that it has established a roadmap containing mid- to long-term goals and strategies for 2030 to achieve this and has received approval from its board of directors. Notably, it published the "CJ CheilJedang Climate Change Response Report," the first of its kind in the food industry.

"Climate change is both a crisis and an opportunity"

On the 22nd, Choi Eun-seok, CEO of CJ CheilJedang, sent an email titled "CJ CheilJedang's Promise to Overcome the Climate Crisis" to employees, stating, "CJ CheilJedang is a company that aims for a virtuous cycle system that returns from nature to the consumer's table and back to nature." He added, "We have established detailed 2030 targets across greenhouse gases, energy, water, and waste to minimize negative environmental impacts throughout all business areas." He continued, "We will boldly pursue operational innovations to minimize carbon emissions across the entire value chain, from raw material procurement to product sales and disposal," and explained, "Climate change is both a crisis and an opportunity to capture new markets." CEO Choi emphasized, "Companies leading innovation will gain an unmatched competitive advantage, which will be a solid key to sustainable growth."

Greenhouse gas emissions to decrease by 25% within 10 years

The mid- to long-term core strategic directions include three main areas: decarbonizing energy at business sites, eco-friendly innovation of products and solutions, and building green partnerships across the entire value chain including supply chains and partners. Based on these three core strategies, 12 tasks have been identified across greenhouse gases, energy, water, and waste.

First, greenhouse gas emissions from all business sites will be reduced by 25% by 2030 compared to 2020 levels. By 2030, power energy sources at business sites in the Americas and Europe will be fully converted from fossil fuels to renewable and bioenergy, with expansion to Asia by 2050. Water use efficiency will also be improved, and landfill waste will be reduced to zero. According to the World Meteorological Organization, 3.6 billion people already experience water shortages for more than a month each year.

Due to climate change, it is expected that over 5 billion people will face water scarcity issues by 2050. Starting with business sites in China and Indonesia, which have high water intake despite being water-vulnerable regions, investments will be made in water reduction facilities to reduce water intake per unit of product output by 10-20% by 2030. Landfill waste, currently near zero (0.4%) domestically, will be expanded globally to achieve zero landfill waste at all domestic and overseas business sites by 2030. Food donations and recycling will be expanded to reduce food loss and waste by 50%.

Introduction of internal carbon pricing system

Efforts will also be made to develop eco-friendly products and expand solutions that reduce carbon emissions. The company will increase the release of eco-friendly products such as those using marine biodegradable bioplastics (PHA), alternative meat, cultured meat-based foods, and food upcycling.

Carbon emissions across the entire value chain, from raw material procurement to product sales and disposal, will also be minimized. To this end, a foundation for environmental impact assessment throughout the life cycle of key products will be established, and an organic cooperation system with supply chains and partners will be built to reduce the "carbon footprint." Additionally, an "internal carbon pricing system" will be introduced to evaluate feasibility by considering potential carbon cost burdens when making investment decisions.

Investment funds necessary for carbon neutrality are expected to utilize ESG (Environmental, Social, and Governance)-linked loans. Recently, CJ CheilJedang signed a 150 billion KRW "ESG management-linked loan" contract with DBS Bank in Singapore. The funds were raised under more favorable conditions compared to typical corporate bond issuances, and if the agreed ESG targets are achieved, additional incentives for loan interest rate reductions will be applied.

This content was produced with the assistance of AI translation services.