Sustainability Policy & Promotion StructureSustainability

Fundamental Approach and Scope of Application

At JERA, we recognize the need for a framework to achieve our mission and vision and guide the company toward long-term sustainable growth. As such, we have established a comprehensive sustainability management system, including the formulation of the JERA Group Sustainability Policy, revisions to our material issues, and the expansion of pre-financial KPIs. The sustainability management system includes management issues that we must resolve on a global scale, such as climate change, biodiversity, human rights, and governance. Through our business, we aim to enhance economic value while increasing environmental and social value through sustainability management, reducing capital costs, and maximizing corporate value.
The above sustainability management system, including our basic environmental policy, climate change, biodiversity, human rights, governance, etc., covers the entire value chain of our fuel and thermal power generation, and the main areas covered are as follows.

• Our power generation business and power plant facilities
• Our power generation power, services, and solutions
• Our fuel upstream
• Our transportation and storage
• Our waste management
• Our business partners (SPCs, JV partners, etc.)
• Our employees

Sustainability Promotion System

Under the supervision of the Board of Directors, JERA has established a framework in which the Sustainability Promotion Committee, chaired by the President, Director, CEO and COO, examines internal and external sustainability-related issues and refers key themes to the Leadership Panel.

We have established a Working-level Conference under the Sustainability Promotion Committee, centered around a dedicated sustainability organization, that brings together departments responsible for environmental, social, and governance (ESG) to promote company-wide sustainability through cross-functional collaboration.

In FY2024, we held the Sustainability Promotion Committee seven times and Working-level Conference seven times.

Recommendations for the Board of Directors

An advisory group*, consisting mainly of outside experts in energy and corporate management, has provided advice and recommendations to the Board of Directors on the ESG and sustainability issues that we should address.

• Note: Joseph Naylor, Director; Paul Hanrahan GAE*; Nobuo Tanaka GAE*; Hendrik Gordenker, Senior Advisor; etc.
• Global Advisory Expert: An outside expert with deep knowledge of global management. Invited into the group as an advisor.

Initiatives for Internal Sustainability Integration

We are working to embed sustainability within the organization so that each employee sees it as personally relevant and translates it into their own actions. In FY2024, we conducted sustainability e-learning for all employees to deepen their understanding of the significance of sustainability management and our related initiatives. Through the training, many employees commented that they became more aware of pre-financial value and the expectations of external stakeholders, while others said they wanted to know more about the connection between corporate value and sustainability initiatives, and learn more about the sustainability challenges we face.

Looking ahead, we will utilize the newly developed Pre-Financial Value Flow in FY2025 to foster deeper understanding and promote sustainability management that begins with each individual employee.

Meeting Global Levels in Sustainability Disclosure

We are committed to continuously improving our ESG and sustainability disclosures by considering the needs of investors and referring to the standards set by global ESG rating agencies. We also closely monitor developments in both domestic and international sustainability disclosure standards and regulations, such as those from the International Sustainability Standards Board (ISSB) and the Corporate Sustainability Reporting Directive (CSRD). Ultimately, we aim to achieve sustainability reporting that aligns with the highest global levels over the medium to long term.