Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Developed Ebara Ube Process (EUP) for waste plastic gasification, with a long-term track record of commercial operation.
• Accelerating the establishment of a system to produce domestic Sustainable Aviation Fuel (SAF) from hydrogenated waste cooking oil.
• Successful demonstration of a green ammonia value chain using solar-powered water electrolysis.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services related to CO2 capture, utilization, and storage; hydrogen and ammonia production; and renewable energy sources.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• EUP process for waste plastic gasification, SAF, green ammonia synthesis process, new ammonia synthesis catalysts

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Enhancing planetary health
• Energy transition
• Circular economy
• High-performance functional materials
• Healthcare & life sciences
• Industrial & urban infrastructure

Environmental Achievements

• Reduced CO2 emissions intensity per base unit of production by 47% against fiscal 2020.
• Achieved 94.8% industrial waste recycling rate at domestic construction sites.
• Developed and marketed an alternative material made from silica, a sustainable mineral, for microplastic beads.
• Construction of a production demonstration facility for domestic SAF made from waste cooking oil.

Social Achievements

• Launched various initiatives under the “MODEL” framework for human capital development.
• Introduced a networking program to boost employee retention and collaboration.
• Established JGC Parallel Technologies Corporation to promote the employment of people with disabilities.
• Increased the number of male employees taking childcare leave.
• Held an International Women’s Day event to promote inclusion and diversity.
• Provided education in programming and science to public elementary schools in Basra, Iraq.

Governance Achievements

• Appointed two new outside directors with expertise in different fields.
• Implemented a succession plan to ensure long-term leadership.
• Introduced a malus and clawback clause for stock compensation.
• Implemented all principles laid out in the Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• Declining profitability in Total Engineering Business due to additional costs and risk contingencies in multiple projects.
• Rising interest rates and soaring construction costs delaying clients' investment decisions.
• Design quality issues at overseas JGC Group subsidiaries and JGC Corporation headquarters.
• Insufficient capabilities of overseas Group subsidiaries to manage large-scale projects.
• Shortage of construction workers or substantial increases in wages.

Mitigation Strategies

• Rebuilding EPC execution structure by optimizing resource allocation, prioritizing projects, and enhancing overseas subsidiaries' capabilities.
• Focusing on projects with high feasibility, resource support, and future contribution.
• Strengthening JGC Corporation management team.
• Pausing efforts to build a stronger framework for regional management.
• Redefining roles of overseas Group subsidiaries.
• Implementing risk management flow applying original project management system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Human rights provisions added to procurement contract terms.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding

Transition Risks

• Regulatory changes, market shifts, lower demand for fossil fuels

Opportunities

• Increased contract opportunities in renewable energy, CCS, hydrogen, ammonia, and circular economy.

Reporting Standards

Frameworks Used: IFRS, WICI, METI’s Guidance for Collaborative Value Creation, GRI, TCFD, UN Global Compact

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SAF, biomanufacturing, high thermal conductivity silicon nitride substrates, chemical recycling catalysts.

Awards & Recognition

• Encouragement Award and Excellence Award from the Japan Alumni Award.
• Award for excellence at Daiwa Internet IR Awards 2023.