Climate Change Data

Environmental Metrics

ESG Focus Areas

• Disaster Risk Reduction
• Sustainable Infrastructure
• Renewable Energy
• Environmental Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Participation in the Third Session of the Global Platform for Disaster Risk Reduction, advocating for private sector expertise in disaster risk reduction.

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

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Disaster Resilience
• Renewable Energy
• Energy Efficiency
• Community Development
• Sustainable Urban Planning

Environmental Achievements

• Construction of Smart Village and Tsunami Relocation Public Housing with energy management systems and solar photovoltaic generation systems.

Social Achievements

• Development of Tsunami Relocation Public Housing (176 units) providing safe and secure living for residents.
• Creation of Smart Village integrating latest technology with architectural design, in collaboration with Tohoku University.

Governance Achievements

• Public-private partnership involving Sendai Tagonishi Land Readjustment Association, Miyagi Prefecture, Sendai City, Tohoku University and various stakeholder companies.

Climate Goals & Targets

Environmental Challenges

• Reconstruction needs in Tohoku after the 2011 Great East Japan Earthquake and Tsunami.

Mitigation Strategies

• Development of disaster resilient urban infrastructure, securing funding under various schemes, and utilizing the group’s strong disaster risk reduction capacity.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Tsunami

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Environmental Sustainability
• Community Development

Environmental Achievements

• Completed the Ashigara-Oi SolarWay, a 13MW solar photovoltaic power station, reducing CO2 emissions by approximately 6,600 tons annually.

Social Achievements

• Partnered with local governments (Kanagawa Prefecture and Oi Town) to develop the Ashigara-Oi SolarWay project, contributing to the community's sustainability and providing electricity to the greater Tokyo area.
• Plans to utilize Ashigara-Oi SolarWay for environmental education and community activities.

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

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

The Ashigara-Oi SolarWay project contributes to these goals by providing clean energy and reducing CO2 emissions.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Green energy
• Geospatial information consulting

Environmental Achievements

• New solar power plants started operations, bringing the total number of power plants currently online to 57 for a combined output capacity of more than 103 MW

Social Achievements

• Not disclosed

Governance Achievements

• Election of one substitute corporate auditor

Climate Goals & Targets

Environmental Challenges

• Slow recovery in export and manufacture due to economic downturn in emerging countries
• Weak market conditions reflecting concerns about worsening corporate results and the UK's decision to exit the EU
• Contracted market in the consigned development business due to concerns over delays in connection certification and enhanced output adjustments
• Increased volatility in performance due to market trends and intensified competition

Mitigation Strategies

• Strategic upfront investments for the future
• Establishment of a competitive advantage
• Delivery of added value
• Measures to strengthen new asset formation business and save costs by reviewing personnel placement and operation
• Assignment of all shares in Japan Asia Securities Co., Ltd., Okinawa Securities Ltd., and Japan Asia Securities Limited

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Development
• Diversity & Inclusion
• Governance
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Increased self-owned forest area to 4,500ha (as of July 2018)
• Participation in J-credit system for CO2 emission rights trading
• Development and operation of numerous solar power plants (69 locations, 161MW as of June 2018)
• Development of AI technology for forest vegetation estimation
• Mitigated damage to solar power plants during natural disasters

Social Achievements

• Launched employee engagement survey and implemented various HR initiatives based on results
• Introduced childcare leave and support programs for employees
• Support for ACCL (Asia Child Care League)
• Support for Yamaha's forest conservation project in Indonesia
• Strengthened compliance and risk management systems

Governance Achievements

• Established a Board Benefit Trust (BBT) for performance-based compensation
• Appointed a Chief Digital Transformation Officer (CDO)
• Strengthened corporate governance framework in line with the Corporate Governance Code
• Introduced a shareholder reward program

Climate Goals & Targets

Environmental Challenges

• Low profit margins despite increased sales in some sectors
• Dependence on government subsidies for renewable energy projects
• Need for cost reduction in renewable energy projects
• Challenges in early-stage forest revitalization business
• Risks associated with rapid business expansion and M&A activities

Mitigation Strategies

• Shifting business structure towards stable revenue streams
• Active pursuit of M&A opportunities
• Focus on cost reduction and efficiency improvements
• Building value chains in forest revitalization
• Strengthening risk management and internal control systems

Supply Chain Management

Responsible Procurement

• Building value chains in forest revitalization by acquiring multiple companies in the wood industry

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (typhoons, floods)

Transition Risks

• Changes in renewable energy policies (post-FIT)

Opportunities

• Growth in renewable energy and forest revitalization sectors

Reporting Standards

Frameworks Used: International Framework

Certifications: Resilience Certification

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Initiatives in renewable energy, forest revitalization, and disaster risk reduction contribute to these goals.

Sustainable Products & Innovation

• Renewable energy projects
• Forest revitalization initiatives

Awards & Recognition

• Resilience Certification

Environmental Metrics

ESG Focus Areas

• Climate Change
• Disaster Risk Reduction
• Environmental Conservation
• Regional Revitalization
• Community Development
• Sustainable Development Goals (SDGs)

Environmental Achievements

• CO2 emission reductions of approximately 99,000 tons/year (Green Energy)
• CO2 reduction contributions of approximately 32,000 tons/year (Forestry Revitalization)
• Received the Minister of Internal Affairs and Communications Award of the 1st Japan Open Innovation Prize for the development and operation of the Real-time Tsunami Inundation and Damage Forecasting System (Geospatial Information)

Social Achievements

• Established regional corporations to operate retail electricity businesses and provide regional energy services (Green Energy)
• Introduced data-driven forestry operations to solve labor shortages and ensure a stable supply of wood materials (Forestry Revitalization)
• Jointly established Miyoshi Energy Co., Ltd. with the town of Higashimiyoshi in Miyoshi, Tokushima Prefecture (Green Energy)
• Unified all units of the forestry revitalization business under JAG Forest Co., Ltd. to accelerate the formation of a new value chain (Forestry Revitalization)
• Various initiatives to improve work-life balance, including no-overtime days, flex hours, and support for employees returning after childbirth or maternity leave (Human Resource Development)

Governance Achievements

• Adoption of a holding company structure
• Implementation of a four-business-unit structure at Kokusai Kogyo Co., Ltd.
• Establishment of an independent Advanced Technologies and Business Development Department
• Kokusai Kogyo Co., Ltd. received Resilience Certification

Climate Goals & Targets

Environmental Challenges

• Cost competitiveness in renewable energy due to falling feed-in tariffs (Green Energy)
• Shortage of land suitable for solar power plant development (Green Energy)
• Output restrictions on solar power (Green Energy)
• Risks from extreme weather affecting solar power plants (Green Energy)
• Risk of forest degradation due to a shortage of forestry workers (Forestry Revitalization)
• Declining demand for construction timber (Forestry Revitalization)
• Uncertainty in international policy outlooks for REDD+ (Forestry Revitalization)
• Reduced public sector investments due to demographic changes (Geospatial Information)
• Tough market environment for Xacti Corporation (Financials)

Mitigation Strategies

• Maximizing earnings through optimal panel selection, EPC process, and project financing (Green Energy)
• Developing small to medium-sized solar power plants and acquiring existing plants (Green Energy)
• Diversifying renewable energy portfolio and geographically spreading facilities (Green Energy)
• Actively seeking certification by internationally recognized forest management institutions (Forestry Revitalization)
• Identifying or creating new uses for forestry products (Forestry Revitalization)
• Preparing for carbon credit registration in compliance and voluntary markets (Forestry Revitalization)
• Strengthening data maintenance and management capacity and expanding into private-sector and overseas markets (Geospatial Information)
• Accelerating entry into PPP and PFI businesses (Geospatial Information)
• Structural reforms at Xacti Corporation, including review of sales prices and procurement prices (Financials)

Supply Chain Management

Responsible Procurement

• JAS-certified sawmilling factory (Sakazume Seizaisho Co., Ltd.)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters

Transition Risks

• Changes in renewable energy policies
• Declining feed-in tariffs

Opportunities

• Development of renewable energy power plants
• Carbon credit generation through REDD+

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC)

Certifications: Resilience Certification (Kokusai Kogyo Co., Ltd.)

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11
• SDG 13
• SDG 15
• SDG 17

JAG's business activities contribute to these SDGs through renewable energy development, disaster risk reduction, environmental conservation, and regional revitalization.

Awards & Recognition

• Minister of Internal Affairs and Communications Award of the 1st Japan Open Innovation Prize
• Minister of Land, Infrastructure and Transport Award at the Eighth Robot Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Community Creation
• SDGs
• Disaster Prevention
• National Land Conservation
• Biodiversity

Environmental Achievements

• Developed and own solar power generation facilities with an operating capacity of 241 MW (as of March 2020).
• Acquired approximately 3,000 ha of forest in the Shikoku region and other forests in Nara and Niigata prefectures.
• Obtained J-Credit certification for 3,469 tons of CO2 (2016-2018).
• Initiated efforts towards SBTi certification and signed the UN Business Ambition for 1.5°C.

Social Achievements

• Established Kesenuma Green Energy Co., Ltd. to supply renewable energy to public facilities in Kesenuma City, Miyagi Prefecture.
• Launched a project to link hospital and external data to improve emergency medical response.
• Commenced renovation work for the first ZEB (Net Zero Energy Building) municipal office building in Japan.
• Developed and launched the agricultural support service "Tenhare (Appare)" using drone technology.

Governance Achievements

• Established a Corporate Sustainability Committee.
• Established an SDGs/Climate Change Strategy Institute within Kokusai Kogyo Co., Ltd.
• Implemented a three-pillar audit system (audit committee, external auditors, internal audit).

Climate Goals & Targets

Environmental Challenges

• High dependence on public works for the geospatial information business.
• High labor intensity in geospatial information business.
• High dependence on the digital camera market for the image solution business.
• Risks associated with project finance in renewable energy.
• Management risks associated with forest ownership.
• Price fluctuation risks in timber sales.
• Potential for power generation stoppages due to natural disasters in renewable energy facilities.

Mitigation Strategies

• Expanding into private and overseas markets.
• Developing AI and RPA technologies to reduce human workload.
• Shifting from OEM/ODM to own product development.
• Diversifying power sources in renewable energy.
• Strengthening forest management business and responding to the liquidity of forest real estate.
• Portfolio management of power generation facilities.
• Disaster prevention measures such as selecting locations with low disaster risk and adopting robust building structures.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (typhoons, heavy rain, earthquakes, tsunamis)

Transition Risks

• Changes in government policies and regulations related to renewable energy.

Opportunities

• Increased demand for disaster response services.
• Growing opportunities in renewable energy development.

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC) framework

Sustainable Products & Innovation

• Agricultural support service "Tenhare (Appare)"

Environmental Metrics

ESG Focus Areas

• SDGs
• Decarbonization
• Climate Change

Environmental Achievements

• Expanded solar power generation capacity to 108 locations with a total output of 252.4MW
• Started development of a biomass power generation facility in Aichi Prefecture (targeting completion in 2024)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased sales of Xacti due to global camera demand decline and parts procurement delays
• Underperformance of Xacti despite cost reduction and business restructuring efforts
• Negative impact of the COVID-19 pandemic on consumer demand
• Failed MBO due to market evaluation of the offer price

Mitigation Strategies

• Cost reduction and review of trading conditions at Xacti
• Business structural reform at Xacti
• Development and sales of original products such as wearable cameras and web conferencing cameras
• New management policy focused on improving corporate value and shareholder returns
• Plan to sell International Kogyo and JAG International Energy to accelerate growth and improve shareholder returns

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: UNGC, SBTi

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed