Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Service
• Development of Human Resources
• Environment
• Social
• Governance

Environmental Achievements

• Unit energy consumption was 2.6% lower than in FY2012/3.
• 78.5% of all train cars are energy-saving train cars.
• Significant results in reducing water used at the Kokura Rolling Stock Center.

Social Achievements

• Achieved objective for the ratio of female managers of 6%.
• Established JR Kyushu Palette Work Inc. with the objective of employing people with disabilities.
• Held events combining fun and health promotion, such as “Let’s Walk Together: Tsubame Cup” and “JR Kyushu Group Sports Day”.

Governance Achievements

• Transitioned to a Company with Audit and Supervisory Committee structure in June 2018.
• Established the Nomination and Compensation Advisory Committee in March 2019.
• Introduced a performance-based stock compensation plan in June 2019.

Climate Goals & Targets

Environmental Challenges

• Frequent natural disasters.
• Aging facilities and rolling stock.
• Declining population in Kyushu.
• Rapid progress in technical innovation.
• Emergence of new business models.

Mitigation Strategies

• Investment in measures to address frequent natural disasters, aging facilities, and rolling stock upgrades.
• Formulated the 2030 Long-Term Vision and JR Kyushu Group Medium-Term Business Plan 2019–2021.
• Established intermediate holding companies in the station building business and the hotel business.
• Strengthened corporate governance.
• Advancing MaaS initiatives.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, typhoons, heavy rains)

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Sustainable Products & Innovation

• DENCHA dual energy charge train
• YC1 series storage battery-equipped diesel-electric train cars

Awards & Recognition

• Nihon Service Award
• Awards in three categories at the Cannes Lions international advertising festival

Environmental Metrics

ESG Focus Areas

• Climate Change
• Clean Transportation
• Green Buildings

Environmental Achievements

• Achieved a 3.7% reduction in unit energy consumption in the railway division by FY2019, exceeding the target of 2.5% by FY2030 (compared to FY2011).

Social Achievements

• Not disclosed

Governance Achievements

• Established an Ecology Committee chaired by the Company’s representative director, president and CEO, composed of general managers of business divisions, to oversee environmental protection measures.

Climate Goals & Targets

Environmental Challenges

• Potential environmental and social risks associated with large-scale infrastructure development, including noise, air pollution, loss of biodiversity, and impacts on local residents.
• Intensifying natural disasters (torrential rains and typhoons) impacting railway infrastructure.

Mitigation Strategies

• Established organizational structure for environment management with four special sub-committees to address environmental issues and ensure compliance with laws and regulations.
• Commitment to environmental impact assessments and adequate explanation to local residents prior to construction.
• Formulated Safety Principles and implemented measures to prevent disruptions in railway operations.
• Established Basic Procurement Policy promoting compliance with social norms, respect for human rights, and environmental friendliness.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Basic Procurement Policy promoting compliance with social norms, respect for human rights, and environmental friendliness.

Climate-Related Risks & Opportunities

Physical Risks

• Intensifying natural disasters (torrential rains and typhoons)

Transition Risks

• Not disclosed

Opportunities

• Introduction of energy-saving train cars and improved energy efficiency in railway transportation.

Reporting Standards

Frameworks Used: Green Bond Principles 2018 (GBP), Japan’s Green Bond Guidelines 2020

Certifications: LEED, CASBEE, BELS, DBJ Green Building Certification

Third-party Assurance: Sustainalytics

UN Sustainable Development Goals

• SDG 9
• SDG 11

Clean Transportation contributes to SDG 11.2 (safe, affordable, accessible and sustainable transport systems), while Green Buildings contributes to SDG 9.4 (upgrade infrastructure and retrofit industries to make them sustainable).

Sustainable Products & Innovation

• Energy-saving train cars with lighter car bodies and technologies that use energy more efficiently, including VVVF inverters and regeneration brakes.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Green bond issuance (April 2021, July 2022, November 2022)
• Environmentally rated loans (September 2022)
• Sustainability-linked loans (November 2022)
• Plan to invest ¥60 billion in energy-conserving vehicles and real estate aiming for green building certification
• Aim to obtain CASBEE certification for Kagoshima Chuo Station West Entrance Building and New Nagasaki Station Building by 2023
• N700S model Kamome train on the Nishi Kyushu Shinkansen line features lower energy consumption

Social Achievements

• Opened Safety Creation Center in January 2011, updated in March 2021, providing training for all managers and employees
• Sixth round of manager training currently being implemented
• Improvements based on employee feedback on safety risks (e.g., installation of fences to prevent falls)
• Regularly visualize initiatives in daily services to measure the pace of growth and identify issues
• Entry into comprehensive outdoor recreation experience business at Aburayama, Fukuoka City (opening spring 2023)
• Initiatives to improve employee engagement through opinion exchange events and review of wage system

Governance Achievements

• Endorsement of TCFD recommendations and declaration of carbon neutrality by 2050 (February 2021)
• Disclosure of Scope 3 emissions (April 2022)
• 1.5℃ scenario analysis (August 2022)
• Enhancing communication with stakeholders through initiatives like community engagement activities and exploratory meetings with residents

Climate Goals & Targets

Environmental Challenges

• Reducing carbon emissions to achieve carbon neutrality by 2050
• Improving employee satisfaction regarding JR Kyushu’s future prospects for growth and attractiveness to employees

Mitigation Strategies

• Investment in energy-conserving vehicles and real estate, renewable energy projects, and ESG financing
• Implementation of training programs and initiatives to improve safety and service
• Initiatives to increase employee engagement through opinion exchange events and review of wage system

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• N700S model Kamome train

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Sustainable City Building
• Well-being
• Regional Development
• Human Resources Development

Environmental Achievements

• Aiming for net zero CO2 emissions by 2050
• Approximately ¥60.0 billion in investments contributing to increasing environmental value (Based on projects eligible for the Green Bond framework)

Social Achievements

• Implementing city-building initiatives for the realization of well-being
• Advancing personnel strategy to maximize individual employee capabilities
• Rebuilding Employee Training Center (completed March 2022)

Governance Achievements

• Re-established material issues and set non-financial KPIs in the Medium-Term Business Plan
• Link with officer compensation for certain non-financial KPIs will be considered

Climate Goals & Targets

Environmental Challenges

• Declining population and growing population disparity between major cities and under-populated areas
• Increasing severity of natural disasters accompanying climate change
• COVID-19 pandemic impact

Mitigation Strategies

• City-building initiatives to attract residents and businesses
• Business structural reforms to stabilize profitability
• Development of new businesses to contribute to sustainable development
• Investments in safety and efficient maintenance and upgrades

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increasing severity of natural disasters

Transition Risks

• Transition to a decarbonized society

Opportunities

• Creating environmental value through cooperation with other companies