Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and Security
• Nurturing the Next Generation
• The Environment
• Bridging Japan and the World
• Corporate Governance

Environmental Achievements

• Reduced CO2 emissions per revenue-ton-kilometer by 11.2% from FY2005 levels.
• Achieved annual reductions in CO2 emissions of approximately 38,000 tons through 'Eco Flight' activities.
• Reduced water usage by 106,000 m3.
• Achieved a final disposal rate of 0.9% for industrial waste in FY2012.

Social Achievements

• Launched the JAL Tohoku Support Project, 'Visit Tohoku!' to support reconstruction efforts.
• Resumed support for reconstruction efforts in Tohoku.
• Improved on-time performance, achieving the world’s top ranking.
• Introduced JAL SKY SUITE 777, receiving the 'Best Business Class Airline Seat' award from SKYTRAX.

Governance Achievements

• Established a CSR Committee in April 2013.
• Established the JAL Philosophy as company guidelines on proper conduct.
• Adopted Corporate Governance Guidelines.
• Appointed two External Directors with expertise in corporate governance and legal affairs, and supporting the professional development of women and corporate social responsibility.

Climate Goals & Targets

Environmental Challenges

• Grounding of Boeing 787 aircraft due to battery failures.
• Intense competition in the domestic and international airline landscape.
• Sluggish air cargo demand.
• Fluctuations in fuel prices and foreign exchange rates.
• Risks associated with changes in the international situation, Japanese and global economy, mid-term and annual plans, aircraft delivery plans, departure and arrival slots, alliances, competition, cost structure, disasters, airline safety, legal regulations, litigation, dependence on third parties, IT systems, financing, handling of customer data, and recruitment.

Mitigation Strategies

• Necessary modifications were made to the Boeing 787 aircraft and flight operations resumed.
• Implemented cost reduction measures and productivity improvements.
• Implemented hedging strategies to minimize risks posed by fluctuating fuel prices and exchange rates.
• Established a Council for Safety Enhancement, Risk Management Committee, and Financial Risk Committee to manage risks.
• Implemented the JAL Philosophy and divisional profitability management system to improve management efficiency and profit consciousness.

Supply Chain Management

Responsible Procurement

• Fair and transparent procurement practices
• Consideration of service and product quality, pricing, delivery times, reliability, and CSR efforts of business associates

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO26000 Guidance on Social Responsibility, UN Global Compact

Certifications: Eco-First Company

Sustainable Products & Innovation

• Fuel-efficient aircraft (Boeing 787, 737-800, Embraer 170)

Awards & Recognition

• World’s most punctual airline (FlightStats)
• 'Best Business Class Airline Seat' (SKYTRAX)

Environmental Metrics

ESG Focus Areas

• Flight safety
• Customer satisfaction
• Finance
• Environment
• Society
• Corporate governance

Environmental Achievements

• Reduced water usage by 0.9% year on year by reusing waste water and implementing water-saving measures.
• Reduced domestic electricity use by 5.8% year on year to 113 million kWh in fiscal year 2016.
• Achieved final disposal rate target of less than 2% for industrial waste.

Social Achievements

• Ranked first in the International Airlines category in the Repeat Intention and Recommendation Intention indicators of the Japan Customer Satisfaction Index (JCSI) survey.
• Selected as a Health & Productivity Stock in 2017 for the third consecutive year.
• Selected as a Company that Empowers Female Employees (Nadeshiko Brand) for the third consecutive year.
• Selected as a Competitive IT Strategy Company for the second consecutive year.
• Received the Basic Achievement Grand Prize for Diversity and Inclusion 2017 (J-Win Diversity Award).
• Received a Gold ranking in the Pride rating system for LGBT programs.
• JAL Factory Tours – SKY MUSEUM came top in the Best Free Attractions Ranking 2016 by TripAdvisor.

Governance Achievements

• Achieved compliance with the Corporate Governance Code, not just on paper but in practice.
• Improved information disclosure to External Directors.
• Established the JAL Group Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• One aircraft accident occurred in fiscal year 2016.
• Did not fully achieve customer satisfaction target for domestic flights.
• Shrinking working-age population in Japan impacting domestic passenger operations.
• Increased price competition in the domestic travel market.
• Risk of significant short-term fluctuations in demand due to various factors (natural disasters, wars, etc.).
• Fluctuations in fuel prices and exchange rates.
• Intensifying competition on domestic and international routes.
• Potential for delays in new aircraft delivery.

Mitigation Strategies

• Further accumulating safety layers to achieve zero aircraft accidents and zero serious incidents.
• Implementing initiatives to evolve safety management and security management systems.
• Maintaining and enhancing high-value-added services and generating new demand in domestic passenger operations.
• Leveraging strengths in areas outside the full-service carrier business to create new revenue sources.
• Using fuel hedging and fuel surcharges to mitigate fuel price fluctuations.
• Using foreign currency hedging transactions to mitigate exchange rate volatility.
• Reinforcing network through joint businesses and alliances.
• Introducing new aircraft with competitive cabin configurations.

Supply Chain Management

Responsible Procurement

• Assessing suppliers based on reputation, CSR initiatives, product quality, cost, and delivery performance.
• Promoting procurement in line with the JAL Group CSR Policy.
• Using Sedex platform to build a sustainable supply chain.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000, UN Sustainable Development Goals (SDGs)

Certifications: Eco-First Company

Awards & Recognition

• Skytrax 2017 World Airline Awards (Best Economy Class Airline Seat)
• FlightStats 2016 Airline On-time Performance Service Awards (Best Airline for On-time Performance in the Asia-Pacific Region)
• Health & Productivity Stock (2017)
• Nadeshiko Brand Enterprise (2017)
• Competitive IT Strategy Company (2017)
• Basic Achievement Grand Prize for Diversity and Inclusion 2017 (J-Win Diversity Award)
• Gold ranking in the Pride rating system
• TripAdvisor Best Free Attractions Ranking 2016 (JAL Factory Tours – SKY MUSEUM)

Environmental Metrics

ESG Focus Areas

• Coexistence in Harmony with the Earth
• Regional Contributions
• Nurturing the Next Generation
• Diversity and Inclusion
• Respect for Human Rights
• Corporate Governance
• Sustainable Supply Chains

Environmental Achievements

• Reduced CO2 emissions by 17.8% from 2005 levels by the end of FY2017 (targeting 23% reduction by FY2020)
• Increased share of fuel-efficient aircraft in the fleet to 81% by the end of FY2017
• Implemented various operational improvements to reduce CO2 emissions (eco-flights, reduced aircraft weight, engine water washing, etc.)
• Participated in Fly Green Day 2017, using biofuel for 5% of a Chicago-Tokyo flight

Social Achievements

• Launched JAL SORAIKU®, aiming for 1 million participants by FY2020
• JAL NEW-JAPAN PROJECT to promote regional revitalization
• Supported disaster relief efforts
• Promoted employment of people with disabilities
• Implemented LGBT initiatives, receiving a Gold ranking in the Pride rating system
• Launched JAL Next Athlete Project to discover the next generation of Paralympic athletes

Governance Achievements

• Established a corporate governance system with high management transparency and strong oversight
• Established various committees (Corporate Governance Committee, Nominating Committee, Compensation Committee, etc.)
• Implemented a remuneration system for Directors (excluding External Directors) based on sound financial incentives
• Strengthened compliance measures through training, newsletters, and a Group Hotline

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions in line with ICAO's CNG2020 targets
• Building sustainable supply chains
• Managing risks associated with international expansion (bribery, anti-competition practices)
• Data security breaches

Mitigation Strategies

• Investing in fuel-efficient aircraft
• Implementing operational improvements
• Utilizing biofuel
• Participating in CO2 emissions trading (CORSIA)
• Utilizing Sedex for supplier ethical data exchange
• Strengthening information security measures
• Establishing a Business Continuity Plan (BCP)

Supply Chain Management

Supplier Audits: 603 suppliers requested to become Sedex members and respond to a self-assessment questionnaire in 2018

Responsible Procurement

• JAL Group Supplier Code of Conduct
• Sustainable Sourcing Code for Tokyo 2020 Games
• Use of Sedex platform for managing and sharing corporate ethical information

Climate-Related Risks & Opportunities

Opportunities

• Development and utilization of biofuel

Reporting Standards

Frameworks Used: ISO 26000, SDGs

Certifications: Eco-First Company

UN Sustainable Development Goals

• Not disclosed

The report mentions alignment with the SDGs but doesn't specify which goals.

Awards & Recognition

• Excellent Operator for Energy Conservation (S-Class) by the Ministry of Economy, Trade and Industry (three consecutive years)
• Awards Committee Chairman’s Special Prize from the Japan Aeronautical Engineers’ Association (FY2017)

Environmental Metrics

ESG Focus Areas

• Environment
• Human
• Communities
• Governance

Environmental Achievements

• Reduced CO2 emissions per revenue ton kilometer by 17.0% compared to fiscal 2005 levels (despite a decrease in total emissions due to COVID-19).
• Introduced fuel-efficient aircraft (Airbus A350 and Boeing 787) resulting in CO2 emission reductions of around 15 to 25% compared to conventional aircraft.
• Successfully produced Japan's first domestically produced SAF using recycled cotton garments.
• Reduced approximately 2 million plastic straws and 4 million plastic stirrers per year.

Social Achievements

• Launched the JAL Wellness health promotion program.
• Achieved 18.4% female manager representation as of March 2020, exceeding the target for 2020.
• Launched the Work Again Program to support the reemployment of women with career experience.
• Implemented measures to improve accessibility for customers with disabilities, winning the FTE Accessibility Leadership Award.

Governance Achievements

• Established a robust corporate governance regime adhering to the Fundamental Policies of Corporate Governance.
• Received a top rating of Excellence in Corporate Disclosure in the Transportation Industry from the Securities Analysts Association of Japan for the second year in a row.
• Implemented measures to address alcohol-related incidents among flight crew.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transition risks from government regulations, carbon pricing, market changes, and technology adoption; physical risks from extreme weather and changing weather patterns).
• COVID-19 pandemic impacting air travel demand.
• Data security breaches (2014 incident).
• Alcohol-related incidents among flight crew.

Mitigation Strategies

• Set a long-term goal of Zero CO2 Emissions by 2050.
• Investing in SAF development and use, including investment in Fulcrum BioEnergy.
• Implementing measures to reduce CO2 emissions in daily operations.
• Engaging in emissions trading.
• Strengthening information security measures.
• Implementing comprehensive risk management and business continuity plans (BCP).
• Conducting alcohol-related training and establishing an external hotline for employee consultation.

Supply Chain Management

Supplier Audits: 293 suppliers responded to self-assessment questionnaires by fiscal 2019; SMETA audits conducted when serious issues are confirmed.

Responsible Procurement

• JAL Group Supplier Code of Conduct (revised July 2019)
• Use of certified products (FSC®, ASIAGAP, MSC/ASC, Rainforest Alliance, GOTS)
• Food safety management (FSSC 22000)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Changing weather patterns
• Increasing average temperatures

Transition Risks

• Government regulations
• Carbon pricing
• High fuel prices
• Adoption of alternative fuels
• Changing demand

Opportunities

• Adoption of alternative fuels
• Improved fuel efficiency
• Development of next-generation aircraft

Reporting Standards

Frameworks Used: SDGs, ISO 26000, Dow Jones Sustainability Indices (DJSI), Financial Times Stock Exchange (FTSE)

Certifications: MSC/ASC CoC, ASIAGAP, FSC®

UN Sustainable Development Goals

• All 17 SDGs

Initiatives are aligned with the 17 SDGs and their 169 targets.

Sustainable Products & Innovation

• SAF
• New uniforms made from recycled materials

Awards & Recognition

• Environment Minister Award at the Japan Open Innovation Prize (CONTRAIL Project)
• Second place in the World's Best Airline Cabin Cleanliness category at the Skytrax World Airline Awards (2019)
• FTE Accessibility Leadership Award (2019)
• Best practice company for LGBTQ activities by Work with Pride

Environmental Metrics

ESG Focus Areas

• Safety
• Customer Experience (CX)
• Green Transformation (GX)
• Relationships and Societal Connections
• Human Capital Management

Environmental Achievements

• Total CO2 emissions reduced to 9.07 million tonnes (FY19 -20,000 tonnes)
• Reduction ratio of new petroleum-derived single-use plastic items in in-house standard products used inflight and in lounges 58% (FY19 +55.5%)
• Conversion ratio of single-use plastics to eco-friendly materials in cargo and airports: 91%

Social Achievements

• Ratio of passengers onboard who find it difficult to travel 0.81 % (2.2 times v.s. FY2019)
• Increase in inbound tourists to Japan using domestic flights 912,578 (FY2019 +211,338)
• Number of cities with which we have comprehensive partnership agreements: 49 cities (FY19 +29)
• Ratio of female managers 29.8 %
• Percentage of male employees taking childcare leave 80.5 %

Governance Achievements

• Implementation ratio of human rights due diligence 100 percent
• Confirmation ratio of integrity of critical suppliers (461 suppliers) 100 % (FY19 +82 pt)
• Completion of human rights investigations of new key suppliers

Climate Goals & Targets

Environmental Challenges

• Series of safety events leading to an Administrative Warning from the Ministry of Land, Infrastructure, Transport and Tourism
• Lack of an environment where frontlines could prioritize safety
• Inadequate functioning of the safety management system
• Declining birthrate and aging population impacting human resource acquisition
• Increased costs due to price hikes, market conditions, and exchange rates

Mitigation Strategies

• Formulated measures to prevent recurrence of safety events
• Comprehensive review of safety management system
• Initiatives to improve employee engagement and attract talent
• Business structure reforms to counteract rising costs
• Introduction of fuel-efficient aircraft and productivity improvements through DX

Supply Chain Management

Supplier Audits: 100% confirmation ratio of integrity of critical suppliers (461 suppliers)

Responsible Procurement

• Human rights due diligence

Climate-Related Risks & Opportunities

Opportunities

• Development of fuel-efficient products

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), Guidance for Collaborative Value Creation (METI), GRI Standard

Sustainable Products & Innovation

• Fuel-efficient aircraft
• Plant-based materials for inflight cutlery

Awards & Recognition

• Selected as SX Brand
• Selected as one of the 2024 Health & Productivity Stock Selection for the sixth time