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 nonfinancial 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, we have established a system where the Sustainability Promotion Committee, chaired by the President, Director, CEO and COO, work together to discuss internal and external issues regarding sustainability and submit important themes to the Leadership Panel.

Starting in FY2023, we established a Working-level Conference under the Sustainability Promotion Committee, centered on a dedicated sustainability organization, bringing together divisions responsible for environmental, social, and governance (ESG) to advance sustainability from a more company-wide and cross-divisional perspective.

Sustainability Promotion Structure

Recommendations for the Board of Directors

The ESG Advisory Group was established in September 2021 as a voluntary panel to provide advice and recommendations to the Board of Directors and, as necessary, to executives from the standpoint of ESG. Members include Director and Executive Vice President Kazuo Sakairi as coordinator, Director Joseph Naylor, GAE Paul Hanrahan*1, GAE Nobuo Tanaka, and Senior Advisor Hendrik Gordenker.

This group is composed mainly of outside experts*2 familiar with the energy industry and corporate management and addresses ESG-related issues. Over more than ten meetings, the group has had animated discussions on trends in the ESG field that impact JERA, the views of capital market participants on ESG, and how business plans and disclosures should be made from an ESG perspective. As a result, the group has provided advice and recommendations to the Board of Directors on incorporating an ESG perspective into business plans and disclosing non-financial information regarding JERA’s medium- to long-term strategy and CO2 emissions targets.

The group will continue to share with management information on ESG trends, issue awareness and perspectives among capital market participants, and other matters, incorporate these into governance, and strive to enhance JERA’s corporate value through improved information disclosure.

Main Issues

• ESG strategies that contribute to the improvement of corporate value
• Strategies for effective disclosure of information to stakeholders
• Provision of information and recommendations related to global ESG trends and developments

• Global Advisory Expert: An advisor invited to the group as an outside expert with deep knowledge of global management.
• Paul Hanrahan (former CEO of AES), Nobuo Tanaka (former Director General of IEA), Hendrik Gordenker (former JERA Chair)

Initiatives for Internal Sustainability Integration

At JERA, we believe that every employee plays a vital role in advancing sustainability management. As such, we prioritize engaging in dialogue with employees to explore what sustainability issues mean to them personally. In FY2023, employees from our Sustainability Promotion Unit, Global Investors Relations Group, with support from related divisions, conducted online sustainability briefings (power plant tours) targeting all staff at domestic power plants. Workshops were also held at our power plants in Japan to encourage employees to personally reflect on how their daily tasks relate to our sustainability initiatives. As a result, employees reported gaining a deeper understanding of sustainability management.

We also launched an internal portal to inform employees about the expectations of external stakeholders and to provide updates on company-wide sustainability activities. By regularly providing updates like these, we aim to promote a bottom-up approach to sustainability management that starts with each employee.

Power Plant Tour Workshops

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.

Our Vision for ESG Management at JERA

Managing Executive Officer(Officer to CFO)

Tatsuya Tsunoda