Climate Change Data

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Air Quality
• Water Management
• Coal Ash Management
• Workforce Health & Safety
• Nuclear Safety & Emergency Management
• Grid Resiliency

Environmental Achievements

• Reduced CO2 emissions from the J-POWER Group’s domestic power generation business: -7 million tCO2 by FY2025 (Interim target towards 40% reduction by FY2030)
• 98.3% recycling rate of coal combustion residuals
• Aim for net-zero emissions (carbon neutrality) by 2050

Social Achievements

• Total recordable incident rate of 0.25
• Zero fatalities in 2021

Governance Achievements

• Zero incidents of non-compliance with physical and/or cybersecurity standards or regulations
• Zero incidents of non-compliance associated with water quantity and/or quality permits, standards, and regulations

Climate Goals & Targets

Environmental Challenges

• Managing water resources, especially in overseas areas with high water stress
• Reducing CO2 emissions from coal-fired power plants in Japan

Mitigation Strategies

• Phasing out obsolete coal-fired power plants and upgrading remaining plants with hydrogen and biomass/ammonia combustion
• Reducing water intake/consumption and operational risk by reusing water discharges after treatment and constructing reservoirs in overseas areas
• Implementing safety activities based on a quality management system for nuclear safety

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Third-party Assurance: Third-party review organization (for greenhouse gas emissions)

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Since April 2022, 271 MW of renewable energy sources (onshore wind, offshore wind, hydroelectricity, geothermal) have started commercial operation, bringing the total since FY2017 to 432 MW.
• CO2 emissions reduction of 8.13 million tons from FY2013 to FY2022 (40.64 million tons in FY2022).
• Effective utilization rate of industrial waste: 96.2%
• Issuance of three J-POWER Green Bonds since FY2022 to fund CO2-free onshore wind projects.

Social Achievements

• Established the J-POWER Group Basic Policy on Human Rights in June 2022.
• Selected as a Health & Productivity Management Outstanding Organization in the large enterprise category (2023).
• Received the Ministry of Health, Labour and Welfare’s special next-generation “Platinum Kurumin” certification for supporting childcare.
• Childcare leave utilization rate of 88% in FY2022.
• 3,263 J-POWER Group employees participated in 453 social contribution activities in FY2022.

Governance Achievements

• Transitioned to a company with an Audit & Supervisory Committee in 2022.
• Increased the percentage of performance-linked compensation from 10% to around 20% in 2023, incorporating non-financial indicators (material issues) into the evaluation.
• Established a Nomination and Compensation Committee.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions from domestic power generation projects.
• Achieving the thermal power generation benchmark under the Act on Rationalizing Energy Use by FY2030.
• Addressing occupational accidents among contractors.
• Maintaining relations with local communities.
• Cybersecurity threats.

Mitigation Strategies

• Accelerating the development of CO2-free power sources (over 1,500 MW by FY2025).
• Withdrawal from three thermal power projects and expansion of biomass combustion.
• Unified safety activities including partner companies to prevent accidents involving contractors.
• Proactive contribution activities in Japan and overseas.
• Established a Basic Policy on Cybersecurity and J-POWER CSIRT to prevent and respond to cybersecurity incidents.

Supply Chain Management

Responsible Procurement

• Encouraging business partners and suppliers to support the J-POWER Group Basic Policy on Human Rights.

Climate-Related Risks & Opportunities

Physical Risks

• Earthquakes
• Typhoons
• Lightning strikes
• Tsunamis

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of CO2-free power sources
• Development of CO2-free hydrogen power generation
• Expansion of renewable energy sources

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001:2004

Sustainable Products & Innovation

• CO2-free hydrogen power generation
• Domestic CCS

Awards & Recognition

• Most Improved Integrated Report (GPIF, five consecutive years)
• Excellent TCFD Disclosure (GPIF)
• Certified Health & Productivity Management Outstanding Organizations Recognition Program (2023)
• Platinum Kurumin certification

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions & Energy Resource Planning
• Air Quality
• Water Management
• Coal Ash Management
• Energy Affordability
• Workforce Health & Safety
• End-Use Efficiency & Demand
• Nuclear Safety & Emergency Management
• Grid Resiliency
• Human resources
• Occupational Health and Safety

Environmental Achievements

• Reduced CO2 emissions from the J-POWER Group’s domestic power generation business: 9.2 million t by FY2025 (compared to FY2013)
• Coal combustion residuals (CCR) generated and 95.8% recycled in FY2022
• Zero incidents of non-compliance associated with water quantity and/or quality permits, standards, and regulations

Social Achievements

• Total recordable incident rate of 0.18 (Employees: 0.10; Outsourcing & other contractors: 0.21) in FY2022
• Zero fatalities in FY2022

Governance Achievements

• 37.5% of Outside Directors on the Board of Directors and 60.0% of Outside Officers on the Nomination and Compensation Committee (as of June 28, 2023)

Climate Goals & Targets

Environmental Challenges

• Managing water resources in overseas areas with high water stress
• Reducing CO2 emissions from domestic power generation business by 46% (22.5 million t-CO2) by FY2030 (compared to FY2013)

Mitigation Strategies

• Reducing water intake/consumption and operational risk by reusing water discharges after treatment and constructing reservoirs in overseas areas
• Phasing out obsolete coal-fired power plants and upgrading remaining plants to highly efficient systems using hydrogen and mixed combustion of biomass and ammonia

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Ernst & Young ShinNihon LLC

Environmental Metrics

ESG Focus Areas

• Supply of energy
• Response to climate change
• Respect for people
• Engagement with local communities
• Enhancement of our business foundation

Environmental Achievements

• CO2 emissions in FY2022: 40.64 million tons (Compared to a 8.13 million ton reduction in FY2013)
• New development of renewable energy to 1,050 MW (FY2017-FY2022)
• Zero serious violations of environmental laws and agreements
• Effective utilization rate of industrial waste: 96%

Social Achievements

• Employees taking new parent leave: 101 men, 26 women
• Employees taking childcare leave: 85 men, 43 women
• Number of activities for local community engagement: 453
• 3,263 J-POWER Group employee participants in local community activities

Governance Achievements

• Zero major security incidents
• Steady transition to a company with an Audit & Supervisory Committee
• Consolidated ordinary profit: 170.7 billion yen
• Consolidated equity ratio: 32.3%

Climate Goals & Targets

Environmental Challenges

• Facility accidents from natural disasters
• Difficulty in procuring fuel (soaring resource prices, supply shortages, geopolitical risks)
• Investment in aging facilities
• Investment in network facilities
• Changes in the electric power business system
• Changes in society’s perception of nuclear power
• Revenue fluctuations due to changes in market value
• Decreasing electricity sales
• Delays starting operations at Ohma Nuclear Power Plant
• Profit deterioration due to CO2 emission regulations
• Difficulties implementing CCS in society
• Difficulties securing suitable land for renewable energy
• Cyber attacks
• Delayed use of digital technologies
• Difficulty in maintaining technological capabilities
• Less workers in rural areas
• Decline in reputation
• Increased difficulty in raising funds

Mitigation Strategies

• Expanded facility measures and crisis management system (including education and training)
• Fortified the power plant’s main structure and the headquarters building against earthquakes
• Planned infrastructure improvements to maintain and enhance crisis management response capabilities as well as ensure supply capacity
• Regularly conducted various disaster drills
• Strengthen revenue and financial base
• Overseas business development
• Promote safe nuclear power generation business
• Development of renewable energies
• Exploration of CO2-free hydrogen
• CO2 reduction, Carbon Capture Storage (CCS) promotion
• Development of CO2-free hydrogen
• Development of CO2-free power sources
• Network enhancement
• Digital transformation (DX), Cybersecurity
• Improve productivity by upgrading equipment maintenance
• Strengthen IT risk system, improve IT literacy
• Human resource development
• Regional revitalization
• Use of diverse human resources
• Improve productivity through streamlining work
• Attract ESG investment
• Strengthen governance
• Strengthen compliance

Supply Chain Management

Responsible Procurement

• Investment in upstream resource interests for the purpose of stable power supply

Climate-Related Risks & Opportunities

Physical Risks

• Facility accidents from natural disasters

Transition Risks

• Profit deterioration due to CO2 emission regulations
• Difficulties implementing CCS in society
• Difficulties securing suitable land for renewable energy

Opportunities

• Development of renewable energies
• Exploration of CO2-free hydrogen
• CO2 reduction, Carbon Capture Storage (CCS) promotion
• Development of CO2-free hydrogen
• Development of CO2-free power sources
• Network enhancement

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Air Quality
• Water Management
• Coal Ash Management
• Workforce Health and Safety
• Nuclear Safety
• Grid Resiliency

Environmental Achievements

• Reduced CO2 emissions from the J-POWER Group’s domestic power generation business by 9.2 million t by FY2025 (interim target towards 46% reduction by 2030)
• 94.8% recycling of coal combustion residuals (CCR)

Social Achievements

• Total recordable incident rate of 0.28 (Employees: 0.05; Outsourcing & other contractors: 0.35)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Managing water resources in overseas thermal power plants located in regions with high water stress
• Phasing out obsolete coal-fired power plants in Japan while maintaining energy supply

Mitigation Strategies

• Reducing water intake/consumption and operational risk by reusing water discharges after treatment and constructing reservoirs in overseas plants
• Upcycling remaining coal-fired power plants to highly efficient systems using hydrogen and mixed combustion of biomass and ammonia

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed