Climate Change Data

Environmental Metrics

ESG Focus Areas

• Eco-friendly distribution environment
• Healthy food culture
• Society growing together

Environmental Achievements

• Increased adoption of zero-emission electric trucks
• Established eco-friendly RDCs to minimize carbon emissions
• Expanded portfolio of eco-friendly products and services
• Implemented a waste recycling system
• Reused 75,700 ice packs
• Recycled 1.6 tons of plastic sneeze guards
• Provided 337,842 paper-packaged water

Social Achievements

• Launched the ESG Committee
• Published the ESG report
• Received the Grand Prize in Korea IR Awards 2022
• Acquired the certificate for Compliance Management System (ISO37301)
• Received the highest score in the Food Analysis Performance Assessment Scheme
• Moved forward with the brand solution business
• Established a public-private collaborative model for resource circulation
• Offered 1,072 eating habit nutrition training sessions (2018~2022)
• Conducted 2,146 cooking classes for children (2019~2022)
• I-NURI and HEALTHY-NURI exceeded 200 billion KRW in sales in 2022

Governance Achievements

• Established ESG governance
• Acquired ISO37301 (Compliance Management System)
• Conducted 7 Audit Committee meetings, 1 Outside Director Candidate Recommendation Committee meeting, 1 Remuneration Committee meeting and 2 ESG Committee meetings
• Operated ISO-certified systems for compliance, environmental management, food safety, and occupational health and safety

Climate Goals & Targets

Environmental Challenges

• Global economic downturn requiring businesses to transform themselves and realize the values of health and safety for our society
• Waste generation through the consumption of goods
• Climate change and its impact across the food production and disposal processes

Mitigation Strategies

• Building a resource circulation system
• Setting a target of reducing greenhouse gas emissions by 50% by 2030
• Establishing standards for sustainable products including eco-friendly products
• Providing partners with self-compliance guidelines for responsible production
• Working with key stakeholders such as local governments and customers to convert waste into resources
• Developing separate plans to exhaust products that are nearing their expiration date or are not selling well
• Examining food service operational data to reduce food waste

Supply Chain Management

Supplier Audits: 100% coverage

Responsible Procurement

• Supplier Autonomous Compliance Guide
• Contract farming

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI 2021, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISO 22000, ISO 37301, ASC, MSC

Third-party Assurance: DNV

Sustainable Products & Innovation

• Eco-friendly products
• ASC-certified shrimp
• Animal-welfare livestock products
• Smart farm products

Awards & Recognition

• Grand Prize in Korea IR Awards 2022

Environmental Metrics

ESG Focus Areas

• Food safety
• Waste management
• Customer satisfaction
• Safety and health management
• Working environment
• Ethical and compliance management
• Climate change
• Biodiversity
• Sustainable distribution
• Human rights
• Mutual growth and supply chain
• Corporate governance

Environmental Achievements

• Received commendation from the Minister of Environment for contributions to waste management efforts.
• Sustainable product sales increased 44% year-on-year.
• Icheon Logistics Center achieved a 33% improvement in energy efficiency by reducing electricity consumption and condensation after installing air curtains.

Social Achievements

• Selected as a Business Owner Excellent in Employing Persons with Disabilities by the Ministry of Employment and Labor.
• Awarded by the Minister of SMEs and Startups for efforts in safeguarding small business owners.
• Awarded the Excellence Award in the “Food and Drug Data Utilization Contest” for developing and operating a rapid alert system.
• Received Certification of Excellent Safety Management Laboratory from the Ministry of Science and ICT.
• Employee engagement score increased by 3.6 points to 83.1.

Governance Achievements

• Awarded the Best Governance Company Award by the Korea Institute of Corporate Governance and Sustainability.
• Awarded the Korea IR grand prize for promoting IR culture.
• Awarded the Gold Award at the 2023 Spotlight Awards by the League of American Communications Professionals (LACP).

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on food material supply (e.g., changes in precipitation patterns, average temperature changes).
• Supply chain disruptions due to climate events.
• Waste management and resource circulation.
• Maintaining food safety standards.

Mitigation Strategies

• Developed optimized transportation routes to handle disasters.
• Operates a cold chain system to maintain product quality.
• Established waste management and resource circulation systems.
• Implemented various food safety measures (e.g., HACCP, ISO 22000, radioactivity inspections).
• Established Sustainable Purchasing Guidelines.
• Advanced contract cultivation of smart farms.

Supply Chain Management

Responsible Procurement

• Sustainable Purchasing Guidelines
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Changes in precipitation patterns
• Average temperature changes
• Flooding
• Water shortages

Transition Risks

• Increased operating costs due to carbon reduction
• Increased investment costs for eco-friendly technologies and facilities
• Reduced competitiveness

Opportunities

• Reduced energy and resource costs
• Increased customer preference for low-carbon products
• New business opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, K-IFRS, SASB Food & Beverage Sectors: Food Retailers & Distributors, TCFD

Certifications: ISO 22000, ISO 14001, ISO 45001, ISO 37301

Third-party Assurance: DNV

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life on Land)
• Goal 16 (Peace, Justice and Strong Institutions)

Various initiatives contribute to these goals through food safety, waste reduction, sustainable products, employee well-being, supply chain management, and community engagement.

Sustainable Products & Innovation

• ASC and MSC certified marine products
• Low-carbon king oyster mushrooms
• Organic brown rice
• Leafy vegetables with biodegradable packaging
• Eco-friendly sweet pumpkins
• Cheongyang peppers
• Free-range eggs

Awards & Recognition

• Business Owner Excellent in Employing Persons with Disabilities
• Minister of SMEs and Startups Award
• Best Governance Company Award
• Korea IR grand prize
• Gold Award at the 2023 Spotlight Awards