Material IssuesSustainability

How We Identify Material Issues

New Material Issues

How We Set Our Material Issues

We address material issues accordingly as they evolve by reassessing the issues and adjusting KPIs, among other efforts.

We composed a list of 59 issues pertinent to our company following an analysis of the industry environment, our business strategies, and other factors.

We evaluate each of the 59 issues identified in Step 1 in terms of their importance to the company, stakeholders, and society, as well as their relevance to factors like company strategy and stakeholder opinion.

Taking into account Step 2 assessments, the Sustainability Promotion Committee (chaired by the company president) designates material issues.

Guided by the new corporate vision and JERA Environmental Target 2035 announced in May 2022, we abstracted and reorganized the material issues first formulated in 2020 into nine issues, which were considered and approved by The Sustainability Promotion Committee.

Material Issues

●Initiatives
◎KPI

Material Issues		Major Initiatives	Related Pages	Related SDGs
1	Establish a stable energy supply	●Stabilize supply and demand management ◎Replace domestic facilities representing 7–9 GW of energy (at 5–7 sites) ●Optimize security measures and monitoring systems in line with global standards ●Enhance JERA’s business continuity plan (BCP) and business continuity management (BCM) ●Improve disaster preparedness through systematic education and training ●Build a disaster prevention infrastructure by maintaining reserves	Business Development Optimization O&M Engineering Initiatives at Thermal Power Plants in Japan Response to TCFD Recommendations Risk Management Information Security
2	Create customer value through cutting-edge solutions	●Develop new technologies that can spearhead a sustainable society ●Further innovate by combining new technologies with power generation technology ●Strategically acquire intellectual property in Japan and abroad and apply it to new business ●Develop and deliver solution selling that ties in with company business	JERA Zero CO2 Emissions 2050 Zero CO2 Emissions Thermal Power Business Development
3	Adopt and expand renewable energies	◎Target renewable energy development representing 5 GW of energy by 2025 ●Acquire essential know-how about offshore wind power	JERA Zero CO2 Emissions 2050 Zero CO2 Emissions Thermal Power Business Development O&M Engineering Response to TCFD Recommendations Environment
4	Decarbonize thermal power and fuel supply chains	●Establish hydrogen and ammonia supply chains ◎Utilize ammonia effectively, with demonstration tests of conversion rates of 20% at Hekinan Thermal Power Station Unit 4 planned for FY2023, commercial operation of conversion rates of 20% targeted for the late 2020s, and commercial operation of conversion rates of 50% intended to begin in the early 2030s ◎Utilize hydrogen effectively, with commercial operation planned for the 2030s ●Pursue carbon capture and storage (CCS) know-how and project opportunities	JERA Zero CO2 Emissions 2050 Zero CO2 Emissions Thermal Power Business Development O&M Engineering Response to TCFD Recommendations Environment
5	Establish global corporate governance	●Improve board effectiveness ●Instill and put into practice a compliance culture and strengthen the JERA Group compliance system ●Make improvements to reporting of financial and non-financial information ●Initiate phased and joint decarbonization efforts with regional business partners, especially in Asia, that emphasize our power plant O&M and engineering technologies	O&M Engineering ESG Management Stakeholder Engagement Corporate Governance Compliance
6	Coexist and thrive alongside local communities in Japan and abroad	●Take action to coexist with the environment, educate the next generation, and resolve issues in local communities based on our Social Contribution Activity Policy ●Build good relationships with stakeholders through cooperative efforts with the community ●Strengthen systems for the prompt and proper reaction in response to domestic and international crises ●Practice global corporate social responsibility (CSR) founded on the needs of overseas sites	Environment Coexisting with Local Communities Safety and Health Stakeholder Engagement Risk Management
7	Realize new, zerocarbon energy models through digital transformation	●Acquire cutting-edge IT technologies through upgrading the R&D environment and building relationships with leading technology companies, among other efforts ●Set up data infrastructure and promote data governance ●Introduce apps featuring data protection and privacy (DPP) ●Offer digital education to all employees	O&M Engineering
8	Empower diverse talent	●Develop and implement human resource strategies linked to business strategies and goals ●Evolve and expand mechanisms to attract diverse talent (e.g., broaden the pool of new graduate and mid-career candidates and strengthen partnerships with educational institutions) ●Establish systems that promote self-driven career development (e.g., create structures for skill advancement and career paths, provide consultation services, and expand internal promotion efforts) ●Build an attractive workplace (e.g., better define employee jobs and expectations, introduce new remote work options) ●Realize borderless human resources (e.g., unify policies across all JERA Group companies and increase global mobility irrespective of hiring location) ●Emphasize diversity and inclusion (e.g., foster activities that empower women, employ persons with disabilities, and promote LGBTQ+ understanding) ◎Increase the percentage of women in leadership positions, targeting 15% in officer positions and manager representation equivalent to the overall employee gender ratio ●Improve global engagement across group companies, establishing and spreading an employee value proposition (EVP) that resonates within and beyond the company	Talent Development Diversity and Inclusion JERA Work Design Human Rights
9	Create a safe and comfortable work environment	●Improve safety levels and work toward zero accidents ●Boost safety awareness among all employees ●Build a robust safety infrastructure that promotes safety at JERA Group companies in Japan and abroad and reinforces collaboration with stakeholders ●Implement the measures needed for a safe workspace (e.g., augment safety information available online, construct a database of safety incidents, and design effective procedures targeting a zero-accident environment) ●Establish contingency plans for overseas operations ●Formulate safety management system standards for normal operations ●Promote work-life balance ◎Maintain stress check levels for employees in Japan below the 100-point national average ●Strive to reduce the number of abnormal test results during periodic employee health checkups	Communication with Employees JERA Work Design Safety and Health Stakeholder Engagement Risk Management