Main Activities and Performances
Materiality assessment
Selection of material issues
CJ Freshway is deriving the direction for ESG management by collecting the opinions of stakeholders.
In the 2022 materiality assessment, a final pool of 17 issues was selected based on important ESG evaluations such as GRI Standards, SASB, MSCI, and KCGS, guidelines and media analysis, peer group review, etc.
Materiality assessment process
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Step 1 ESG issue identification and pool configuration
- Analysis of sustainable management standards GRI Standards, ISO 26000, MSCI, TCFD, KCGS, UN SDGs, SASB
- CJ Freshway's own issues and pool analysis Internal data, business report, management strategy system, etc.
- Peer group comparison Analysis of the status of leading companies in the food and distribution industry group
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Step 2 Materiality assessment
- Analysis of importance of internal/external group influence
- Survey period: APR, 22nd ~ 27th, 2022
- Survey target: CJ Freshway ESG W/G and ESG expert group
- Item composition: importance of impact on each topic (probability of occurrence, magnitude of impact, resilience, etc.)
- Analysis of importance of internal/external group influence
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Step 3 Derive prioritization
- Prioritization The ranking of 17 issues is determined according to the results of comprehensive assessment considering the importance of impact
- Third-Party Verification The contents of the report are verified by a third-party organization (Marcspon) to ensure reliability and transparency.
Results of Materiality Assessment
As a result of the materiality assessment, food safety was selected as the most important issue with health management, sustainable product development, human rights management, ESG management, etc. selected as major issues.
CJ Freshway is continuously improving the insufficient areas among the selected issues to become a company that contributes to customers and society through assignments by the department in charge.
TCFD Task Force on Climate-related Financial Disclosures
CJ Freshway transparently discloses four major TCFD items-- climate-related governance, strategy, risk management, measurement indicator & hidden goal--focusing on risks that may affect its business model in line with the global climate change response flow. CJ Freshway transparently discloses four major TCFD items-- climate-related governance, strategy, risk management, measurement indicator & hidden goal--focusing on risks that may affect its business model in line with the global climate change response flow.
Governance
TCFD recommendations
- Management and supervision of the board of directors related to climate change response
- Management role in assessing and managing climate change risk and opportunity
CJ Freshway's Response Status and Plan
Recognizing the importance of the management role for prompt and accurate decision making in response to climate change, CJ Freshway established the ESG Committee in December 2021 and built a governance system to manage performance and improvement measures for sustainable management. In addition, we are raising interest in and awareness of participation in environmental management including climate change through internal and external communication. Going forward, the ESG Committee will implement major climate change-related agendas with the goal of being carbon-negative and continue to manage and supervise environmental issues through the Customer Quality Safety Center, an organization responsible for environmental safety management. We will also continue to monitor the environmental management system ISO14001 certification renewal and performance.
Business Strategy
TCFD recommendations
- Short-, medium-, and long-term climate change risk and opportunity
- The impact of climate change risk and opportunity on an organization's business, strategy, and financial plan
- Strategy considering various scenarios related to climate change including scenario below 2℃
CJ Freshway's Response Status and Plan
CJ Freshway will review risks and opportunities due to climate change for each business structure through systematic analysis and establish and manage subdivided environmental policy and strategy as well as short-term, medium-term, and long-term goals. In the short term, we are preparing to revise our existing environmental management guidelines, and we will manage the business and financial impacts of climate change on the company by identifying risks and opportunities related to climate change through the establishment of eco-friendly logistics system and resource circulation system in the future.
Risk management
TCFD recommendations
- Process for identifying and assessing climate change risk
- Process for managing climate change risk
- Level of integration between the process for identifying, assessing, and managing climate change risk and the organization's overall risk management system
CJ Freshway's Response Status and Plan
CJ Freshway monitors greenhouse gas emission and energy consumption within its business sites.
Based on this, we plan to build a greenhouse gas inventory to respond to climate change risk by managing emission source and emission and to include them in our integrated risk management scope and reflect them to our business activities.
Indicator and
reduction goal
TCFD recommendations
- Climate change risk and opportunity assessment indicator
- Scope1, Scope2, Scope3 Greenhouse gas emission
- Climate change risk, Opportunity and performance management goal
CJ Freshway's Response Status and Plan
In order to measure and manage risks and opportunities related to climate change, CJ Freshway plans to expand the disclosure of various indicators to respond to climate change such as greenhouse gas emission and energy consumption and strengthen data management. In addition, we plan to establish a climate change response strategy to set and implement the goal of reducing greenhouse gas emission compared to the projected greenhouse gas emission (BAU).
| Description | Unit | 2021 |
|---|---|---|
| Direct emission | tCO₂eq | 12,402 |
| Indirect emission | tCO₂eq | 14,875 |
| Total emission | tCO₂eq | 27,277 |
Main Activities and Performances
We carry out various activities according to the three ESG strategic directions.
Introduced electric truck for the first time in the food distribution industry
#Planet
CJ Freshway introduced the electric truck for the first time in the industry in 2021.
Electric trucks not only reduce carbon emission but are also safer, more economical, and more efficient than diesel vehicles. In order to reduce carbon emission in the future, we plan to expand and apply electric trucks continuously to the nationwide logistics network and build a sustainable logistics infrastructure.
- Affordable and clean energy
- Climate action
Establishment of Resource Circulation
#Planet #People
CJ Freshway is taking the lead in creating a sustainable distribution environment by establishing a resource circulation system that circulates various resources used in the distribution process.
In addition, we strive to expand additional positive influences such as job creation for the elderly, development of educational contents for children, and development of upcycling products in the process of recycling resources.
- Quality education
- Decent work and economic growth
- Responsible consumption and production
- Climate action
- Life on land
Healthy Food Culture Program
#Product & Culture
CJ Freshway provides a variety of products and services so that society can enjoy a healthy food culture.
We introduce eco-friendly packaging materials and biodegradable straws and provide low-carbon vegan menus to food (meal) channels such as school, office, and leisure area. In addition, we strive to improve the health and nutrition of the underprivileged through collaboration with WFP and CSR program for each life cycle.
- No poverty
- Zero hunger
- Good health and well-being
- Require inequalities
- Climate action
Fact sheet
Environment
Social
Governance
ESG Assessment Summary
| Year | Overall grade |
ENVIRON -MENT |
SOCIAL | Gover -nance |
|---|---|---|---|---|
| 2022 | A | B | A | A |
| 2021 | A | B | A | A |
| 2020 | A | B | A+ | A |
(Source : KOREA INSTITUTE OF CORPORATE GOVERNANCE AND SUSTAINABILITY)
