Climate change is an extremely important business concern for the JFE Group from the perspective of business continuity. Our steel business, which emits 99.9% of the Group's total CO₂ emissions, has been developing various technologies for saving energy and reducing these emissions. Applying these technologies to steel manufacturing has successfully reduced CO₂ emission intensity to the lowest level worldwide.
Furthermore, we have developed and maintained a variety of eco-friendly products and technologies, including high-performance steel materials that help save energy when customers use them, as well as renewable energy power generation.
We will continue to develop and promote the widespread use of these processes and products while at the same time seeking to turn this challenge into an opportunity to tackle climate change by deploying the technologies we have fostered across the globe.
JFE announced its endorsement for the TCFD recommendations in May 2019 and has identified climate change-related issues based on the scenario analysis advocated in the TCFD to formulate strategies for sustainable growth. In September 2020, JFE disclosed its target of reducing CO₂ emissions in FY2030 in the steel business, which accounts for most of the Group's CO₂ emissions. It also announced its intention to achieve carbon neutrality by 2050, ahead of the Japanese government's announcement of the same goal.
In February 2022, the target of reducing CO₂ emissions in FY2030 was revised upward to 30% or more compared to FY2013 considering advances in measures for carbon neutrality and improvement of external surroundings in the steel sector.
JFE Group Environmental Vision for 2050
The JFE Group intends to increase sustainability through solutions that address global climate change issues while restructuring its business to respond to the changes in the environment surrounding the steel business. We regard 2020 to be the landmark year to further reinforce our efforts to tackle climate change, and we are actively promoting initiatives for reducing CO₂ emissions.
In 2021, having positioned climate change as a top‐priority issue in the Seventh Medium‐term Business Plan, we formulated the JFE Group Environmental Vision for 2050 toward achieving carbon neutrality by that year.
We will systematically address climate change by reflecting the TCFD's principles in our business strategies in the JFE Group Environmental Vision for 2050. In the steel business, we will reduce CO₂ emissions by 18% from FY2013 levels by the end of FY2024. In addition, we announced that the target of reducing CO₂ emissions in FY2030 is 30% or more compared to FY2013 in steel business. To explore all possibilities for realizing carbon neutrality in 2050, we will take on the challenge of developing super-innovative technologies such as carbon-recycling blast furnaces developed with our unique techonology while also adopting a multitrack approach for pursuing other technologies. In our engineering business, we will widen our contribution to the reduction of CO₂ in society as a whole by expanding and advancing renewable power generation and carbon recycling technologies, by supplying high-performance steel products, and through other initiatives. Furthermore, we will accelerate commercialization of our offshore wind-power business by applying the strengths of the Group.
JFE Group Environmental Vision for 2050
- Climate change is an extremely important business concern for JFE, and we are aiming to achieve carbon neutral by 2050.
- We will accelerate our research and development of new technologies and pursue super‐innovative technologies.
- We will seek business opportunities that allow us to enhance our corporate value by contributing to CO₂ emissions reduction across society.
- The principles of TCFD will be reflected in our business strategies and deployed in a systematic manner.
Seventh Medium‐term Business Plan Initiatives
- Reduce steel‐business CO₂ emissions in FY2024 by 18% compared to FY2013 (JFE Steel).
The target of reducing CO₂ emissions in FY2030
- Reduce steel-business CO₂ emissions in FY 2030 by 30% or more compared to FY 2013 (JFE Steel).
Initiatives for Carbon Neutrality by 2050
①Reduce CO₂ emissions at JFE Steel
- Pursue super‐innovative technology for carbon‐recycling blast furnaces and CCU.
- Develop hydrogen‐based ironmaking (direct reduction) technology.
- Leverage top‐in‐class electric arc furnace technology for high‐grade steel manufacturing, high efficiency, etc.
- Develop transitional technologies for carbon neutrality, including ferro coke, increased use of steel scrap in converters, energy savings, and low‐carbon energy transformations.
②Expand contributions to CO₂ emissions reduction in society
JFE Engineering: Expand and develop renewable‐energy power generation and carbon‐recycling technologies.
Reduce CO₂ emissions by 12 million tonnes in FY2024 and 25 million tonnes in FY2030.
- JFE Steel: Develop and market eco‐products and eco‐solutions.
- JFE Shoji: Increase trading in biomass fuels, steel scrap, etc., and strengthen business in supply chain management (SCM) for eco products.
③Offshore wind-power generation business
Accelerate commercialization of the offshore wind‐power business by applying the strengths of the Group.
JFE Engineering: Manufacture and market monopiles and other seabed‐fixed structures for offshore wind‐power generation.
JFE Steel: Use the new continuous casting machine in Kurashiki to produce large heavy plates.
JFE Shoji: Carry out SCM for steel materials and processed products.
Japan Marine United Corporation: Manufacture offshore wind power‐generation floating structures and construct work vessels.
Group-wide: Operation and maintenance (O&M) making maximum use of Group resources.
1.Carbon‐recycling blast furnace: A technology that converts CO₂ from the blast furnace into methane and repeatedly uses it as reducing material in the blast furnace
2.CCU: Carbon dioxide capture and utilization
3. Transitional technologies: Technologies that advance the transition to low carbon and decarbonization
4.Ferro coke: Innovative blast furnace raw material that improves the reduction efficiency of iron ore and reduces CO₂ generation
Developing processes to mass produce high‐performance steel with zero CO₂ emissions is essential for a sustainable world. Huge R&D and equipment replacement costs will be inevitable as JFE executes strategies targeting carbon neutrality. Society must decide how these costs should be shouldered, including government support.
Working toward the lofty goal of carbon neutrality by 2050, JFE aims to establish the necessary decarbonization technologies as soon as possible, ahead of global competitors, assuming that we have the decarbonization infrastructure in place and ability to compete on an equal footing globally.
JFE Steel's Management Structure to Promote Carbon Neutrality
In October 2020, JFE Steel established a company-wide project team that directly reports to the president to promote the development and commercialization of ultra-innovative technologies for achieving carbon neutrality by 2050. In July and October of 2021, the company further enhanced its management structure for promoting carbon neutrality by introducing new specialized departments. This management structure will help the company accelerate its efforts to achieve carbon neutrality.
Information Disclosure Based on TCFD Recommendations
On May 27, 2019, JFE Holdings announced its endorsement for the final report of the Task Force on Climate-related Financial Disclosures (TCFD)* .
* The TCFD was established by the Financial Stability Board (FSB) at the request of G20 finance ministers and central bank governors.
Climate-related risks and opportunities will significantly impact medium- to long-term corporate finance. To reduce the risk of instability in the financial market, the G20 called on the FSB to establish the TCFD. The TCFD considers disclosure methodologies that can be used to appropriately assess climate-related risks and opportunities and releases its findings as a final recommendations report.
It is important for investors to accurately understand the financial impact of climate-related risks and the opportunities of investee companies when they make financial decisions. In this context, the task force recommends disclosures to be made in four core elements of organizational management: governance, strategy, risk management, and metrics and targets.
For the TCFD content index, click on the following link.Guideline Content Indices
Under the JFE Group Standards of Business Conduct, the JFE Group actively strives to exist in harmony with the global environment and create a society that is comfortable and convenient. We are aware that efforts to protect the global environment, such as reinforcing our environmental protection activities and addressing climate change issues, are extremely important for creating a sustainable society.
In FY2016, we identified the mitigation of global warming as a material CSR issue to facilitate the PDCA cycle and promote appropriate management of ongoing initiatives, such as reducing CO₂ in the iron and steelmaking processes and developing and providing eco-friendly products. In 2021, we relaunched the initiative as a top priority by adding economic perspectives to the material issues and by selecting other vital matters of importance. As part of this effort, we set our goal for helping to address climate change (initiatives to achieve carbon neutrality by 2050) as an area of focus and identified reducing the JFE Group's CO₂ emissions and contribution to CO₂ emissions reduction in society as two material issues.
The JFE Group Environmental Committee, chaired by the president of JFE Holdings and operating under the JFE Group CSR Council, supervises and guides these initiatives by deliberating goals, monitoring progress, and improving the Group's overall environmental performance.
Key managerial issues such as climate change and other environmental challenges are deliberated at the Group Management Strategy Committee as well and reported to the Board of Directors. The board discusses and makes decisions on the matters reported.
Examples of Climate Change-Related Agenda Items Involving Board of Directors Discussions, Decisions, and Reports
- Declaration of endorsement for the final TCFD recommendation report
- Information disclosure consistent with TCFD recommendations (scenario analysis and other information)
- Formulation of the Seventh Medium-term Business Plan, JFE Group Environmental Vision for 2050
Framework for Environmental Management
Addressing Climate Change Issues
The JFE Group considers climate change as a top-priority business concern and will vigorously pursue the goal of achieving carbon neutrality by 2050.
The JFE Group recognizes climate change as a vital management issue to overcome in order to achieve sustainable growth and enhance corporate value over the medium to long term. We believe that climate change and its global impact merit urgent consideration, and we have been taking action to reduce our CO₂ footprint.
In the Seventh Medium-term Business Plan (FY2021−FY2024) issued in May 2021, the JFE Group reconfirmed that climate change is a top priority and developed specific measures to address it. In order to achieving carbon neutrality by 2050, we formulated the JFE Group Environmental Vision for 2050, which includes the following three major policies, and entered a new stage of tackling the change.
In accordance with our corporate vision of contributing to society with the world's most innovative technology, we will take on the challenge of developing ultra-innovative technologies to tackle climate change. At present, there is no guaranteed solution for achieving carbon neutrality by 2050, which will require us to develop new ultra-innovative technologies in the steel business. We have presented a roadmap that includes specific measures for achieving carbon neutrality. This roadmap is based on pursuing our unique super-innovative technology, carbon recycling blast furnace with CCU, and also includes the development of other technologies such as hydrogen‐based ironmaking and electric arc furnace technology. We will realize these innovative technologies through multiple strategies to ultimately achieve the goal of carbon neutrality.
Next, we will view CO₂ reduction initiatives as both a response to business risks and a new business opportunity for helping to realize a sustainable society. We will also enhance our corporate value by contributing to CO₂ emissions reduction throughout society. By reducing overall CO₂ emissions, we will contribute to the realization of carbon neutrality for society as a whole. In our engineering business, we will expand and develop technologies for renewable energy power generation and carbon recycling. In our steel business, we will work on electrical steel sheets and ultra-high-tensile strength steels to promote the shifts to EVs and lighter weight automobiles. In particular, our offshore wind-power generation business can take full advantage of the capabilities of all our operating companies. We will make a Group-wide effort to accelerate this business.
Lastly, the Group will reflect the principles of the TCFD in its business strategies and systematically address climate change. In May 2019, the Group announced its endorsement for the TCFD recommendations. For the first time, we disclosed information based on the TCFD recommendation in our CSR REPORT 2019 and clarified business risks and opportunities through scenario analysis. This year, we deepened these efforts and formulated the JFE Group Environmental Vision for 2050 as a key strategy in our Seventh Medium-term Business Plan.
A process capable of producing large quantities of high-performance steel without emitting CO₂ is essential for society's sustainable development. We recognize that we must address this issue in order for the JFE Group to survive amid global competition. To achieve the lofty goal of becoming carbon neutral in 2050, we will strive to establish the necessary decarbonization technologies as early as possible, ahead of our global competitors.
Senior Executive Officer,
JFE Holdings, Inc.
JFE Group's Climate Change Strategy
Various risks and opportunities related to climate change are integrated into the JFE Group's business strategy. The Group formulated the its Seventh Medium-Term Business Plan as the main guide for business operations from fiscal 2021 to fiscal 2024, and we positioned efforts to address climate change as the key to achieving sustainable growth and increased value over the medium to long term. Under the plan, the Group defined ensuring environmental and social stability as a core strategy and formulated the JFE Group Environmental Vision for 2050 for achieving carbon neutrality by 2050. Then we concentrated our efforts on our business strategy and reflected the principles of the TCFD recommendations in our management strategy, enabling us to systematically address climate change. Furthermore, we are disclosing information based on the TCFD recommendations, including the scenario analysis, leveraging them to identify and evaluate risks and opportunities, and reflecting them in our management strategy.
For further details on the Results of Scenario Analysis and the JFE Group Environmental Vision for 2050, refer to the following source material.Scenario Analysis recommended by TCFD
JFE Group Environmental Vision for 2050, Presentation Material
In the JFE Group Environmental Vision for 2050, our efforts to achieve carbon neutrality are based on the following three key strategies: reduce CO₂ emissions at JFE Steel, expand contributions to the reduction for society as a whole, and accelerate Group-wide commercialization of the offshore wind‐power business. In the steelmaking process, which has a particularly significant environmental impact, we will focus on reducing CO₂ emissions. In addition, we will emphasize the reuse of water resources and energy as well as the development and provision of environmentally sound products, process technologies, and resource recycling solutions.
Reduce CO₂ Emissions at JFE Steel
Carbon Recycling Blast Furnaces (CR Blast Furnace)
We will work on developing carbon-recycling blast furnaces (CR blast furnaces), hydrogen steelmaking, and electric furnaces, and we will also strive to achieve carbon neutrality by 2050, as announced in the JFE Group Environmental Vision for 2050. We are particularly focused on a technology that combines a CR blast furnace and CCU*, which allows us to efficiently mass produce high-grade steel and reuse the CO₂ in the blast furnace. This technology aims for virtually zero emissions by using the remaining CO₂, which cannot be fully reused to manufacture basic chemicals such as methanol.
*Carbon dioxide capture and utilization
"Technical Features of a CR Blast Furnace"
The CR blast furnace is ultra-innovative in terms of its technology that converts CO₂ in the furnace exhaust gas into methane (through methanation), which is then used repeatedly as reducing material in the furnace. The technology is expected to reduce CO₂ by 30% in the blast furnace alone and to ultimately help achieve carbon neutrality by leveraging CCU/CCUS*. The thermal efficiency of the process can be further increased by replacing the air blown into the blast furnace with pure oxygen, as the energy used to heat the nitrogen in the air can instead be used to heat methane. In addition, the lack of nitrogen facilitates the separation of CO₂, so the equipment necessary to separate CO₂ for methanation can be smaller and more efficient while facilitating more effective gas utilization at CCUS.
*CCUS: CO₂ capture, utilization, and storage
"Opening the Way to Innovation"
Commercializing CR blast furnaces requires the following technological innovations. The JFE Group will take on the challenge of achieving these and also strive to reach carbon neutrality by 2050.
①Technology to reduce CO₂ by blowing a large volume of carbon-neutral methane along with oxygen into the blast furnace (world first)
②Linking the operations of a large-scale methanation facility and a CR blast furnace (world first)
New Technology to Process Raw Materials for Hydrogen Reduction Ironmaking
Hydrogen reduction ironmaking technology is another steelmaking process that the JFE Group is working on to achieve carbon neutrality. With this technology, the natural gas currently used in direct reduction ironmaking is replaced by 100% hydrogen to eliminate CO₂ emissions when iron ore is reduced.
"Technology for Processing Raw Materials"
Currently, the only raw material that can be used for direct reduction ironmaking is high-grade iron ore. Its production volume, however, is limited, and we expect it will become even more difficult to obtain in the future if direct reduction ironmaking were to expand worldwide.
To address this, JFE and one of its iron ore suppliers, BHP, are collaborating in the development of a new raw material processing technology for low- and medium-grade ores, which are currently used as raw materials for blast furnaces due to their large production volume. We are hoping that this new technology will allow us to use low- and medium-grade ores as raw materials for direct reduction ironmaking, thus expanding the raw material sourcing for direct reduction ironmaking.
"Technology for Pre-Heating Raw Materials, Technology for Heating Hydrogen Gas"
One challenge of hydrogen reduction is that the reduction of iron ore by hydrogen is an endothermic reaction, which means that heat must be applied externally for the reaction to proceed. A sufficient reduction reaction may not take place if there is not enough heat. Thus, technologies for heating raw materials and hydrogen gas must be developed.
Development of Electric Arc Furnace Process Technology
One of the JFE Group's development efforts in steelmaking technologies for carbon neutrality is electric arc furnace process technology. With the technology, steel products are manufactured by melting steel scrap and direct-reduced iron in an electric furnace. So far, we have managed to reduce CO₂ emissions from this steelmaking process down to one-quarter of that of the blast furnace-converter method. We are working to eliminate CO₂ emissions generated by the electric furnace process in the future by using the aforementioned hydrogen-reduced iron as the raw material and green electricity.
Although the electric furnace process has this advantage of reducing CO₂ emissions, there are two major problems with it compared to the blast furnace-converter method: the productivity of the electric furnace process in general is about 30% lower than that of the blast furnace-converter method, and the use of scrap as the raw material inevitably increases the concentration of impurities, which limits the production of high-grade steel. We are working to address these issues and striving to establish technologies that will enable the production of high-quality, high-grade steel with high productivity in the electric furnace process.
"Improve productivity of the electric arc furnace process"
To improve productivity of the electric arc furnace process, the JFE Group have developed ECOARC™, our proprietary, eco-friendly, high-efficiency electric arc furnace, and installed it at our operating companies. With this technology, a shaft is attached to the upper part of the electric furnace and is used to continuously feed scrap materials into the furnace. It uses the high-temperature exhaust gas from the furnace to preheat the scrap material, allowing for subsequent high-efficiency and high-speed melting. As well as improving the productivity of the electric arc furnaces, the technology also reduces the energy (electricity) required for the melting process.
The Group already has achieved industry-leading productivity and energy (electricity) efficiency with these technologies, but we are working to raise productivity even further.
"Manufacturing Higher-Grade Steels Using the Electric Arc Furnace Process"
The electric arc furnace process uses scrap and reduced iron as raw materials. The higher concentration of impurities in these materials, such as copper, causes material degradation, including surface defects and reduced workability in steel sheets and deterioration of properties in electrical steel sheets. We are working on two technologies to address the issue, one to remove impurities and another to detoxify impurities, so that we can use the electric arc furnace process to produce high-grade steel products such as steel sheets for automobiles and electrical steel sheets.
Related Products and Technologies
|Reduce CO₂ emissions at JFE Steel|
|Carbon Neutral||Management Structure||Management Structure to Promote Carbon Neutrality (Japanese only)|
|Carbon-recycling blast furnace||Carbon-recycling blast furnace technology||JFE Group Environmental Vision for 2050 "Carbon-recycling Blast Furnace Technology Development"|
|Challenge Zero (Challenge for development of super‐innovative technologies focusing on “Carbon-recycling Blast Furnace + CCU)|
|CCU/CCUS||Challenge Zero (Technology of CO₂ utilization)|
|New technology to process raw materials for hydrogen reduction ironmaking||Development of technology for direct hydrogen reduction||JFE Group Environmental Vision for 2050 (Development of Technology for 100% Direct Hydrogen Reduction)|
|Collaboration with a material supplier||JFE Steels and BHP to Address Decarbonization in Steelmaking Process|
Expand Contributions to CO₂ Emissions Reduction in Society
Contribution to CO₂ Reduction through our Engineering Business
Demand for power generation plants using renewable energy sources that do not emit carbon is expected to increase. Through JFE Engineering, the JFE Group is handling the design, procurement, construction, and operation of various renewable energy generation plants including biomass, geothermal, solar, and onshore wind power. We are also working to increase the amount of power generated at waste treatment facilities in order to promote recycling and the effective use of resources.
Furthermore, we are actively engaged in the retailing of electricity, which uses these renewable energies as the main power source, as well as in supporting the establishment and operation of new regional electricity companies that focus on local production and local consumption of energy using renewable energies.
As a new initiative toward carbon neutrality, we are developing CCU technology that uses exhaust gas and waste plastic, for which we have already established the necessary technologies to collect, separate, and produce synthesis gas (CO + H2) and use it as a raw material for manufacturing chemicals.
Through these efforts, we will contribute to reducing CO₂ emissions in society by 12 million tonnes by FY2024 and 25 million tonnes by FY2030.
Electrical Steel Sheets
Electrical steel sheets are widely used as core materials for electrical equipment such as motors and transformers and therefore play an important role in determining the performance of such electrical equipment. JFE Steel is contributing to reducing CO₂ emissions on a global scale by supplying high-performance electrical steel sheets.
"Non-Oriented Electrical Steel Sheets"
Demand for high‐grade non‐oriented electrical steel sheets, indispensable for electric automobiles, is expected to rapidly increase as global environmental regulations are accelerated/strengthened. In response to this demand, we have decided to invest approximately 49 billion yen to double the production capacity of high-grade non-oriented electrical steel sheets at the West Japan Works (Kurashiki district) in the first half of FY2024.
"Grain-Oriented Electrical Steel Sheets"
The global demand for grain‐oriented electrical steel sheets in transformers is expected to increase due to continuous growing demand for electric power and the expanding adoption of renewable energy. Demand in India for grain‐oriented electrical steel sheets is expected to increase by 1.7 times in 2030 compared to 2019. Moreover, we have agreed with our strategic‐alliance‐partner JSW to study the feasibility of establishing a joint, grain‐oriented steel (G/O) manufacturing and sales company in India.
In recent years, motors are becoming increasingly smaller and faster (for driving electric vehicles, home appliances, drones, etc.), and they are requiring higher output and efficiency. For electrical steel sheets, used as iron core materials for these products, there is growing demand to reduce high-frequency iron loss*1 and increase magnetic flux density*2. Silicon boosts the electrical resistance of steel, so increasing the amount silicon helps to achieve this is necessary. Using the proprietary technology for CVD continuous siliconizing*3, we worked to control silicon concentration distribution by optimizing the siliconizing amount and diffusion conditions and to control crystal orientation. These efforts have resulted in the development of a JNRF™ silicon-gradient steel sheet for high-speed motors. JNRF™ helps to significantly increase motor efficiency for energy conservation while maintaining magnetic flux density (torque) equivalent to that of conventional non-oriented electrical steel sheets (3% silicon steel sheets).
*1 Iron loss refers to energy, mainly heat, lost when an iron core is excited by an alternating current. The energy loss that occurs when the iron core is excited at high frequency is called a high-frequency iron loss. The efficiency of high-speed motors increases as high-frequency iron loss is reduced.
*2Magnetic flux density, which indicates a material's ease of magnetization, raises electromagnetic strength as density increases. In motors, larger torque (power) can be achieved with materials that offer high magnetic flux density.
*3The chemical vapor deposition (CVD) process technology increases silicon concentration in steel. CVD, performed in a steel strip annealing line, causes a reaction between steel strips and silicon tetrachloride (SiCl₄) gas in a furnace while continuously passing the steel strips through the furnace.
Related Products and Technologies
|Expand contributions to CO₂ emissions reduction in society|
|Contribution to CO₂ Reduction through the Engineering Business||New regional electricity||Regional Electricity Retail Businesses in Partnership with the Local Municipal Governments Establishing New Regional Electricity Businesses|
|Food waste recycling||Food Waste Recycling Business|
|Carbon recycling||Carbon recycling initiatives (CO₂ separation and collection, waste to chemical)|
|Electrical Steel Sheets||JNRF™||JFE Steel develops JNRF™ silicon-gradient steel sheet for high-speed motors—minimizes high-frequency iron loss and improves high magnetic flux density|
|Facility expansion||JFE Steel to expand electrical steel sheet production capacity at Kurashiki facility|
|Supply chain for electrical steel sheets||JFE Steel & JSW Steel proposes Grain Oriented Steel Sheet Manufacturing JV in India|
|Establish a global supply chain in electrical steel sheets business|
Accelerate Group-wide Commercialization of the Offshore Wind‐Power Business
Offshore wind power generation is a key initiative of the Japanese government's Green Growth Strategy to achieve carbon neutrality by 2050. We will work in this area by leveraging the Group's collective strength and our engineering business acting as the main driver. Specifically, we will become the forerunner in the business of offshore wind-power generation by manufacturing and commercializing the foundation structures (monopiles) and establish a supply chain across the Group, including manufacturing foundations and O&M.*
*Operation and maintenance
Related Products and Technologies
|Accelerate commercialization of our offshore wind-power business by applying the strengths of the Group.|
|Offshore wind‐power generation business||New offshore wind-power PJ team||Establishment of new organization for offshore wind business (Japanese only)
|Equipment for offshore wind power generation||Capital investment for the construction of the new factory for monopile foundations decided - Japan's first manufacturing base for the bottom—mounted foundations of offshore wind turbines
|No. 7 continuous casting machine at JFE Steel West Japan Works (Kurashiki district) began its operation (Japanese only)
|SCM for Steel Materials and Processed Products for Offshore Wind Power Generation
Risk Management (Climate Change)
JFE Holdings is responsible for comprehensive risk management in accordance with its Basic Policy for Building Internal Control Systems. The JFE Group CSR Council chaired by the president of JFE Holdings, consolidates information and strengthen management across the Group to reduce the frequency and impact of risks.
The executive officer responsible for risk works to identify potential ESG risks such as those associated with climate change. As necessary, the JFE Group CSR Council confirms and evaluates risks and discusses and makes decisions on countermeasures. Key managerial issue is deliberated by the Group Management Strategy Committee.
The Board of Directors supervises initiatives on ESG risks such as those related to climate change and CSR by discussing and making decisions on, and by receiving reports on, these matters.
Climate-related risks are identified and evaluated based on a scenario analysis conducted under the framework recommended by the TCFD in 2017. Important factors that may affect management are selected for further analysis and used in formulating business strategies, such as the Seventh Medium-term Business Plan.
Monitoring Method for Core Issues Related to Climate Change
Issues that may affect management are being monitored by the JFE Group CSR Council, Group Management Strategy Committee and the Management Committee. As for the method, measures are implemented based on a quarterly report on climate change-related issues deliberated by the specialized committees of each Group company (e.g., the Environmental Committee). The JFE Group Environmental Committee consolidates information and strengthens management to reduce the frequency and impact of risks and to maximize opportunities.
Countermeasures Based on Monitoring
2.Monitoring penetration of policies within the Group
3.Monitoring deployment of policies throughout the Group
For further details, refer to the following links.CSR Structure
Metrics and Targets (Medium- and Long-term Targets and Results in FY2020)
The JFE Group's steel business is led by its operating company, JFE Steel, which is a member of the Japan Iron and Steel Federation (JISF). The JFE Group is promoting the JISF's Commitment to a Low Carbon Society, which focuses on the Three Ecos initiatives and the development of innovative new iron and steelmaking processes. Under the initiative, the JISF plans to reduce emissions by 3 million t-CO₂ compared to the BAU (Business As Usual emissions: Estimated level of emissions in the absence of any special measure) by FY2020 and by 9 million t-CO₂ by FY2030. JFE Steel is aggressively pursuing activities toward these goals.
In addition, JISF has formulated and announced its long-term vision for climate change mitigation in 2030 and beyond, which is intended to realize zero-carbon steel. JFE Steel played an important role in formulating this vision. Furthermore, in 2021, the JISF announced the "Basic Policy of the Japan steel industry on 2050 Carbon Neutrality aimed by the Japanese government," declaring that the Japanese iron and steel industry will boldly take on the challenge of realizing zero-carbon steel.
The JFE Group intends to increase sustainability through solutions that address global climate change issues while restructuring its business to respond to developments in the environment facing the steel business. We regard the 2020 to be the landmark year to further reinforce our efforts to tackle the climate change issues, and we declared our target to reduce the CO₂ emissions in FY2030 by 20% or more compared to FY2013 and to achieve carbon neutrality by 2050.
In 2021, the JFE Group has positioned its initiatives on climate change as a top priority issue and, as part of its Seventh Medium-Term Business Plan, has formulated the JFE Group Environmental Vision for 2050, under which we will aim to achieve carbon neutrality by 2050. The Group also disclosed a new CO₂ reduction target. Major Group companies of JFE Steel have formulated CO₂ reduction targets on the same level as JFE Steel's. The Group companies in Japan and overseas work together to incorporate efforts to address climate change issues into the business strategy. By reflecting the TCFD's principles in their management strategies, the Group will systematically promote to reduce CO₂ emissions.
JFE Group's Initiatives to Reduce CO₂ (the JFE Group Environmental Vision for 2050)
|Seventh Medium‐term Business Plan Initiatives|
|Initiatives for Carbon Neutrality by 2050|
CO₂ Emissions of the JFE Group
Data cover 76 companies
JFE Steel and 30 major domestic and overseas subsidiaries
JFE Engineering and 10 major domestic subsidiaries
JFE Shoji and 33 major domestic and overseas subsidiaries
・Data for JFE Steel include CO₂ emissions from non-energy sources.
・Starting with FY2018, data for JFE Steel's subsidiaries and JFE Engineering's subsidiary include CO₂ emissions from non-energy sources.
・ Data from FY2013 to FY2016 includes the Sendai Works of JFE Bars & Shapes Corporation.
(Categories 1, 2, 3, 4, 5) JFE Steel, 25 JFE Steel domestic subsidiaries, JFE Engineering, and JFE Shoji
(Category 6, 7)JFE Steel, 25 JFE Steel domestic subsidiaries, JFE Engineering, 10 JFE Engineering domestic subsidiaries, and JFE Shoji
(Category 15) Japan Marine United, and 9 JFE Steel equity-method affiliates (7 domestic and 2 overseas)
Sources: Green Value Chain Platform (Ministry of the Environment) and others
For more on quantitative data related to CO₂ emissions, refer to the following information.Environmental Data
Initiatives to Save Energy and Reduce CO₂
JFE Steel has always aggressively pursued CO₂ reduction and energy savings, including the introduction of energy-saving equipment.
Energy Consumption and CO₂ Emissions in FY2020
Under the environmental strategies formulated in 2001, JFE Shoji offices in Japan have consistently worked to reduce its use of energy and paper as well as strictly manage waste separation.
Efforts to cut energy consumption such as leave-on-time days, prohibition of night work, and pinpoint lighting have become firmly rooted. Continuous efforts are also made to improve the working environment through 5S activities and to raise operational efficiencies through robotic process automation (RPA). These efforts are contributing to reducing JFE Shoji's environmental impact. In FY2020, because employees worked from home due to the coronavirus pandemic (COVID-19), the electricity consumption at its offices decreased.
For some time now, the company has also been distributing pocket-sized cards to all employees, which describe its environmental policy, fiscal year targets, and environmental initiatives related to office and trading activities, in order to raise employee awareness of environmental activities.
Endorsing and Participating in External Initiatives
The JFE Group expresses its views and opinions on various public policies and external initiatives related to climate change and environmental conservation through Keidanren (Japan Business Federation) and the Japan Iron and Steel Federation (JISF), and it proactively participates in these activities. The Group also endorses the Challenge Zero declaration and will rise to the challenge in pursuit of innovation. Challenge Zero (Innovation Challenges Towards a Net Zero Carbon Society) is a new joint initiative by Keidanren and the Japanese government for proactively publicizing and supporting companies and organizations that pursue innovative actions toward realizing a decarbonized society, which is the long-term goal of the Paris Agreement.
The Japan Iron and Steel Federation (JISF) is committed to the achievement of a low carbon society with the target year of FY2030. In November 2018, the JISF also formulated and published the Long-term Vision for Climate Change Mitigation for 2030 and beyond, which represents the industry's challenge toward realizing zero-carbon steel. Furthermore, in February 2021, the JISF announced the "Basic Policy of the Japan steel industry on 2050 Carbon Neutrality aimed by the Japanese government," declaring that the Japanese iron and steel industry will boldly take on the challenge of realizing zero-carbon steel. As a member of the JISF, JFE Steel will be actively involved in these medium- and long-term climate change initiatives. JFE Steel is also participating in international activities, such as the Japan India Public and Private Collaborative Meeting, Japan-ASEAN Steel Initiative, and Japan-China Steel Industries Exchange. Furthermore, it is a member of the World Steel Association (WSA)'s Climate Action Program, which uses ISO 14404 as the standard for measurement and calculation.
JFE Engineering is a member of the Japan Climate Leaders' Partnership (JCLP). The JCLP, established in 2009, is a coalition of Japanese corporations that urge the industrial community to develop a sound sense of urgency on the issue of climate change and to initiate more proactive actions toward the goal of creating a sustainable, decarbonized society. By leading the transition to a decarbonized society, companies aim to fulfill their social responsibilities. JFE Engineering, together with the JCLP, will actively engage in a variety of activities that go beyond the boundaries of the company, to realize a sustainable, decarbonized society.
For more details, refer to the following.Steel Industry Initiatives
Initiatives by industry groupsThe Japan Iron and Steel Federation: Climate Change Policy
The Japan Iron and Steel Federation: Challenge Toward Zero-Carbon Steel (Japanese only)
Keidanren (Japan Business Federation): Challenge Zero
Japan Climate Leaders' Partnership (JCLP)