JFE Group’s Response to the TCFD
The JFE Group leverages its innovative technology to address climate change and is committed to creating a resilient, sustainable society. The Group also seeks to disclose information on how it will address climate change risks and opportunities in accordance with TCFD recommendations, including scenario analysis.
JFE’s Initiatives on Climate Change and Future Response
As an enterprise engaged in iron and steel manufacturing, which is associated with emitting massive volumes of CO2, the issue of climate change is a critical managerial concern 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 CO2 emissions. We have actively addressed the risks by applying these technologies to steel manufacturing and have also successfully reduced CO2 emission intensity to the lowest level worldwide. We will continue to develop processes to reduce environmental impact further while at the same time seeking to turn this challenge into an opportunity for addressing climate change issues by deploying the technologies we have fostered across the globe.
The JFE Group has 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 view the current challenges as an opportunity and are contributing to solving the climate change problem. Automobiles are expected to become lighter in weight while the number of electric cars increases. We will support this by improving the functions of the JFE Group’s high tensile strength steel sheets and electrical steel sheets. In addition, we will help reduce our carbon footprint by further disseminating renewable energies and implementing recycling initiatives as well as energy conservation.
The Group will continue to develop and disseminate the technologies for achieving the 2°C target stipulated in the Paris Agreement and contribute to the prevention of global warming. We will also support national resilience by providing steel for social infrastructure and construction to address the emerging risks associated with the growing severity of meteorological disasters.
For more on this, please refer to the following information.
Addressing Climate Change Issues: Climate Change (Climate Change Mitigation)
Technologies and Products Related to CO2 Emissions: Development and Provision of Eco-friendly Processes and Products
Environmental Movement across the World Surrounding JFE’s Business
1997 Kyoto Protocol adopted at COP3 in Kyoto
2008 JISF’s Voluntary Action Plan launched
2013 JISF’s Commitment to a Low Carbon Society launched
2015 Paris Agreement adopted at COP21
2018 JISF announced the Long-term Vision for Climate Change Mitigation
2020 Keidanren launches the Challenge Zero initiative
The "Challenge Zero (Innovation Challenges Towards a Net Zero Carbon Society)” is a new joint initiative by Keidanren (Japan Business Federation) 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 JFE Group endorses the Challenge Zero declaration and will rise to the challenge in pursuit of innovation.
The JFE Group publishes information on specific initiatives through the following website.Challenge Zero
Disclosure Consistent with 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, please use the following link.Guideline Content Indices
The JFE Group actively strives to exist harmoniously with the global environment as well as to raise living standards and advance societies under the JFE Group Standards of Business Conduct. We are aware that protecting the global environment by 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 process and developing and providing eco-friendly products.
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 issues for corporate management such as climate change are deliberated at the Group Management Strategy Committee as well and reported to the Board of Directors. The board oversees environmental challenges by discussing the reported material. Additionally, specialized committees set up by JFE Group operating companies and affiliates implement specific activities.
Examples of climate change-related agendas reported to the Board of Directors for deliberation
- Declaration of endorsement for the final TCFD recommendation report
- Information disclosure consistent with TCFD recommendations (scenario analysis and other information)
For Outside Executive Group Interview on the status of supervision by the Board of Directors over the governance system and ESG challenges for the whole Group, please refer to the following information.Corporate Governance System
Framework for Environmental Management
JFE Group Report 2020 "Outside executives share perspectives on ESG as the foundation of value creation for the JFE Group"
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 Environmental Committee and other organs of each Group company. The JFE Group Environmental Committee collects information on risks and strengthens controls to reduce the frequency and impact of the risks and maximize opportunities.
Countermeasures Based on Monitoring
- Group-wide deliberations
- Monitoring penetration of policies within Group
- Monitoring deployment of policies throughout Group
For more on our risk management system, please refer to the following information.Risk Management
Risks and opportunities associated with climate change issues are integrated into the Group’s business strategies as follows. We formulated the JFE Group Sixth Medium-term Business Plan as our business management policy for FY2018 to FY2020. As part of our plan to strengthen the business structure for sustainable growth, we have placed high priority on contributing to the establishment of a sustainable society. Our efforts to address climate change issues have been incorporated into our business strategy by pursuing what we term as “ongoing ESG initiatives” as a key measure. We select important factors that may affect business to identify and evaluate risks and opportunities by advancing information disclosure in line with the TCFD recommendations, including scenario analysis.
The JFE Group gives high priority to protecting the global environment and has a strategy in place for reducing environmental impact by developing eco-friendly products and process technologies and providing material recycling solutions, in addition to reducing CO2 emissions in the steelmaking process and recycling water resources and energy. Furthermore, the JFE Group expresses its views on public policies concerning climate change issues and environmental protection through the Japan Iron and Steel Federation and actively participates in related activities.
Setting the Scenario
Scenario analysis is performed to provide an accurate understanding of climate-related risks and opportunities and assess implications to the current business strategy, thereby enabling the organization to establish business strategies that reflect this assessment. We selected the following two scenarios by considering the fact that our business has potentially high exposure to the impacts of climate change.
Both scenarios are based on those developed by the International Energy Agency (IEA). Analysis is conducted under the assumption that a uniform carbon price is implemented in major emitting countries toward the realization of the 2°C target.
|Selected Scenario||2°C Scenario||4°C Scenario|
|Reference Scenario||Transition Risks||Transition scenarios developed by the IEA
• Sustainable Development Scenario (SDS)*1
• 2°C Scenario (2DS)*2
|Transition scenarios developed by the IEA
• New Polices Scenario (NPS)*1
• Reference Technology Scenario (RTS)*2
|Physical Risks||Climate change projection scenario developed by the Intergovernmental Panel on Climate Change (IPCC)
Representative Concentration Pathways (RCP) Scenario*3
|How Society will Look||Dynamic policies will be adopted and technical innovations will progress to limit the average temperature rise by the end of this century to 2°C and realize sustainable development.
Assume a society in which our business is affected by social changes accompanying transition to a decarbonized society.
• World-wide/industry-wide uniform carbon pricing*4
• Increase in the ratio of sales of electric vehicles to overall vehicle sales
|Despite new policies implemented in each country based on approaches under the Paris Agreement, average temperature rises about 4°C by the end of this century.
Assume a society in which our business is affected by temperature rise and other climate change.
• Increase in the occurrence of flooding
• Sea level rise
*1 Source: IEA “World Energy Outlook 2018”
*2 Source: IEA “Energy Technology Perspectives 2017”
*3 Source: IPCC Fifth Assessment Report
*4 If prices of carbon differ from country to country, there will be a gap in international competitiveness between countries that impose strict CO2 emissions regulations and less strict regulations. This will result in carbon leakage where CO2 emissions of a strict climate policy country is reduced due to decreased production and investment, while production at and investment to other countries with laxer emission constraints increase, in turn increasing the CO2 emissions in those countries. One reference scenario, SDS, assumes that carbon pricing is implemented in developed countries and some developing countries. By taking this into account, we formulated the 2°C scenario based on the assumption that a uniform carbon pricing is introduced to major emitting countries to push toward achieving the target of two degrees.
Scope of Business and Period for Analysis
This analysis covers the following businesses: the steel business by JFE Steel, the engineering business by JFE Engineering, the trading business by JFE Shoji, and businesses carried out by some of the other Group companies. The period covered is up to 2050.
Relevance with JISF’s Long-term Vision for Climate Change Mitigation
The JFE Group’s steel business is led by its operating company, JFE Steel. JFE Steel is a member of the Japan Iron and Steel Federation (JISF), which has committed to the achievement of a low carbon society with the target year of 2030. In November 2018, JISF also formulated and published the Long-term Vision for Climate Change Mitigation for 2030 and beyond. JFE Steel was a core member when the long-term vision was formulated.
While JISF’s Long-term Vision for Climate Change Mitigation represents the industry’s challenge toward realizing zero-carbon steel with an eye on 2100, our scenario analysis is intended to ensure resiliency in our Group’s business strategy at the mid-point of the long-term challenge.
CO2 Emissions Based on Long-term Scenarios for Climate Change Mitigation
*1 BAU Scenario: A scenario based on the idea of “business as usual"
*2 BAT Max Introduction Scenario: A scenario based on maximum introduction of the best available technology
Initiatives to Achieve the Long-term Vision for Climate Change Mitigation
Process to Identify Key Factors that Impact the Business
Step 1: Examine the entire value chain from a holistic perspective and sort out factors that impact the businesses under analysis
(For more information on risks and opportunities in the value chain, refer to JFE Group Value Chain)
Step 2: Examine all factors from a holistic perspective and identify key factors by taking into consideration the level of impact and stakeholder expectations and concerns
|2°C Scenario||4°C Scenario|
|Impact on Procurement||5. Unstable raw materials procurement due to increased occurrence of climatic hazards|
|Impact on Direct Operation||1. Decarbonization of iron and steelmaking process
2. Increased needs for effective utilization of steel scrap
|6. Damage to production bases and offices caused by climatic hazards|
|Impact on Product and Service Demand||3. Change in demand for automotive steel, etc.
4. Increase in demand for solutions to promote decarbonization
|7. National resilience|
Axis for identifying key factors:
● Level of impact (possibility of risks and opportunities arising × Level of impact if it manifests)
● Expectations and concerns of stakeholders
Results of Scenario Analysis
Overview of a Scenario Analysis Assessment
FOCUS Key Factor (1) Decarbonization of Iron and Steelmaking ProcessWe are developing innovative technologies to emerge as the pioneer in realizing a decarbonized society. With a strong financial base to meet investments for implementing innovative technologies, we are significantly contributing to the transition to a decarbonized society.
JFE Steel has been committed to developing energy-saving technologies toward increasing the efficiency of the iron and steelmaking process and decarbonization. These initiatives have helped JFE Steel acquire technologies that realize the world’s top energy efficiency in iron and steelmaking. To further push ahead with decarbonation, the Company will enhance the development of innovative iron making processes such as COURSE50 and ferro-coke, which are expected to reduce the carbon footprint through hydrogen reduction and CCS.
COURSE50 applies hydrogen reduction technology and CCS to reduce CO2 emissions by about 10% and 20%, respectively, through each technology, for a total reduction of about 30%. The first facility is expected to come online by 2030, followed by the implementation of other plants by 2050, corresponding with the timing for upgrading blast furnace facilities. Ferro coke is a technology for significantly reducing CO2 emissions by improving the reduction rate of iron ore put into blast furnaces. In addition to these technologies, we will push forward to establish a hydrogen reduction iron making technology which we will aim to put it into practice after 2030 in order to realize the ultimate goal of creating zero-carbon steel.
We consider implementing innovative technologies as critical and will advance with this strategy together with the government. Furthermore, we have a sufficient financial base to meet necessary investments.
A medium-scale pilot plant with the capacity to produce 300 tonnes of ferro coke per day was constructed in the Fukuyama district of the JFE Steel West Japan Works, and experimental runs will begin in FY2020 toward commercialization.
Example of Developing an Innovative Technology: Ferro coke Production Process
Uniform carbon pricing is being discussed or introduced around the world. If it is introduced to major emitting countries, the increase in operating cost will be reflected reasonably on the price of steel products both in Japan and overseas, thus maintaining the Company’s cost competitiveness. In addition, since CO2 emissions per unit of steel production is the lowest of all competing materials, steel retains its superior position in cost competitiveness.
On the other hand, the introduction of carbon pricing in a manner that is biased toward certain regions would have a major impact on the JFE Group and particularly on its steel business, which may lead to the loss of its cost competitiveness. For this reason, we must remain vigilant to future developments.
FOCUS Key Factor (2) Increased Need for Effective Utilization of Steel ScrapWhile the use of steel scrap increases, demand for crude steel will also rise over the long-term. This will result in an increase for pig iron production by blast furnace (converter steel). Furthermore, the entire JFE Group will benefit from opportunities arising from the expanded use of electric furnaces, and it will utilize the construction technology of electric furnaces while expanding the scrap logistics business.
Steel scrap, a raw material for electric furnace steel, is used efficiently, as it is almost completely recovered in the steel value chain. For society, which expects the realization of the under 2°C scenario, steel is utilized as a basic material that will help achieve the SDGs. Steel accumulation will increase as well as the amount of scrap used. Global steel demand is expected to grow alongside the overall growth in the population and economy, and production of pig iron (converter furnace steel) is also expected to rise to support the development of a sustainable society (JISF: Long-term Vision for Climate Change Mitigation). In addition, under the current technology, the quantity of high-grade steel materials is only feasible using converter furnace steel. This steel and electric furnace steel will co-exist and be used in applicable places.
The JFE Group is viewing the increase in demand for electric furnace steel as well as the world-wide increase in the amount of scrap generated as an opportunity, and it will enhance its electric furnace steel production while applying its engineering technology for constructing an entirely cutting-edge, energy-saving electric furnace facility with the ultimate goal of opening up other business opportunities. Moreover, the Group will advance the development of technologies to utilize scrap and increase the industry-wide use of this material.
Meanwhile, expanding the use of scrap will bring about an increase in logistics for distributing it, and this will provide an opportunity for JFE Shoji to expand its logistics business.
Estimated Supply and Demand for Steel Production and Scrap Use
FOCUS Key Factor (3) Change in Demand for Automotive SteelDemand for electrical steel sheets for EV motors as well as special steel is increasing as global car sales rise. The increase in the intensity of high tensile strength automotive steel sheets contributes to further weight reductions.
The trend of increasing electric vehicles has given rise to rapidly expanding demand for electrical steel sheets used in EV motors. JFE Steel has already marketed the JNE series of non-oriented electrical steel sheets, used in building motors, as part of its eco-product lineup. It also commands a strong share of the market.
On the other hand, it has been pointed out that an increase in EVs may lead to a decline in the amount of special steel used in engine components. The amount of this type of steel, used in hybrid vehicles and electric vehicles, is 80% and 60% of gasoline cars, respectively. We believe that the risk level for this matter, however, is low since car sales are expected to increase even under the 2°C scenario and total demand for special steel for cars is increasing.
Nonetheless, the situation for EV remains the same in terms of strong demand for weight reduction of body structure. JFE Steel has developed a cold-rolled steel sheet boasting 1.5 GPa-grade tensile strength as an eco-product and has put it into practical use as an automotive steel sheet. With its high strength, the product can significantly reduce the weight of a car frame and thus dramatically reduce CO2 emissions from cars in motion.
Estimated World Demand for Automotive Special Steel
Estimated World Demand for Automotive Electrical Steel Sheets
Vertical axis: Steel demand (comparison by year with the year 2020 as 1.00)
Source: Estimated by JFE Holdings based on reports by Strategic Commission for the New Era of Automobiles (METI)
Estimated by JFE Holdings based on reports by Strategic Commission for the New Era of Automobiles (METI)
Steel is a highly recyclable material that can be reborn as many different products over and over again with no loss in its intrinsic quality. In the future, public resource recycling is expected to increase toward establishing a decarbonized society. We believe that the high recyclability of steel will gain attention once again in light of this transition.
Effect of trend to use multi-materials is limited.
Aluminum and carbon fiber reinforced plastic are potential alternative materials for reducing the weight of cars. It has been pointed out, however, that the production cost of these materials and the amount of CO2 emitted throughout their life cycles is higher than those of steel. Therefore, under the 2°C scenario, which assumes the introduction of a carbon price, the price differential between steel and alternative materials will be larger. Under this scenario, while the trend of using multi-materials may show some progress for luxury cars, their use would be limited for economy cars. Moreover, considering a situation in which all panels used for doors and other parts of a luxury car were changed to aluminum, the effect on weight reduction could be expected to be 5% of all materials used in luxury and economy cars together. Multiplied by the number of cars produced, the impact over the total demand for automotive steel can be assumed to be limited.
FOCUS Key Factor (4) Increase in Demand for Solutions to Enhance DecarbonizationContribution through the provision of solutions (renewable energy power generation, Multisite Energy Total Service, recycling plants, and energy-saving steel technologies
"Renewable Energy Power Generation"
Demand for power generation plants using non-carbon emitting renewable energies is expected to increase. The JFE Group engages in designing, procuring, constructing, and operating biomass*1, geothermal*2, and solar power*3 generation plants in its engineering domain.
We are also working on increasing power output at waste processing facilities from the perspective of resource recycling and the effective utilization of resources. JFE Engineering is striving to develop a fully automated operation*4 to facilitate higher power output at incinerators.
Moreover, we are utilizing renewable energy as the main power source for our retail electricity business*5 and in helping to establish and operate regional electricity retail companies*6 focused on local production and consumption of electricity based on renewable energy.
Biomass power generation plants
Waste-to-energy power generation plant
*1 The JFE Engineering Corporation’s Website: Biomass
*2 The JFE Engineering Corporation’s Website: Power generation plant
*3 The JFE Technos Corporation’s Website: Solar power generation (Japanese only)
*4 The JFE Engineering Corporation’s Website: Operation & maintenance
*5 The Urban Energy Corporation’s Website: Electricity retail business (Japanese only)
*6 The Urban Energy Corporation’s Website: Regional electric power support business (targeting local governments) (Japanese only)
“Multisite Energy Total Service”
In addition to the conventional service of optimizing energy use for single sites, JFE Engineering offers the Multisite Energy Total Service (JFE-METS)*1, which optimizes energy use for multiple sites through centralized management. We realize overall energy savings and CO2 reduction by analyzing energy consumption at multiple sites and achieving total optimization by installing and operating energy-related equipment at each site to circulate energy throughout the network, including remote locations.
*1 The JFE Engineering Corporation’s Website: JFE-METS (Japanese only)
We are working on reducing the additional use of materials derived from fossil fuels by using recycled materials in the production of plastic products. JFE Engineering undertakes the construction of recycling plants*1 from design to procurement and construction as well as operation, and J&T Recycling Corporation operates a plastic recycling business*2.
Industry-wide decarbonization cannot be achieved only through technical developments in the manufacturing process alone. Therefore, we believe that demand for CCU and CCS facilities will increase as they facilitate the efficient use and storage of CO2. JFE Engineering is able to undertake the entire process of building CCU and CCS facilities from design and procurement to construction.
*1 The JFE Engineering Corporation’s Website: Recycling
*2 The J&T Recycling Corporation’s Website: Recycling
"Energy-saving Steel Technologies"
From the perspective of the steel industry, there is space for disseminating eco solutions (energy-saving steel technologies) in nations such as China, where close to 50% of the world’s crude steel is produced, and India, where further growth in production is expected. The potential CO2 reduction achieved by internationally transferring and disseminating advanced energy-saving technologies widely used in Japan will exceed 400 million t-CO2 world-wide. Japan is estimated to contribute to the reduction of approximately 80 million t-CO2 in 2030 through these technologies.
FOCUS Key Factor (5) Unstable Raw Material Procurement due to Increased Occurrence of Climatic HazardsOngoing initiatives to address the issue, such as alternative procurement and dispersed supplier bases, and increasing plant capacity
In Australia, our major source country for raw materials, the occurrence of typhoons is predicted to double. We may be vulnerable in terms of continuous production and suffer a loss if production and shipping are interrupted for too long.
To address this issue, we are promoting alternative procurement and dispersed supplier bases.
and dispersed supplier
Respond to disaster by carrying out spot procurement from China’s port stocks, increasing procurement from closer source countries such as Russia and Indonesia and front-loading the purchase and/or increasing the purchase contract of different brands from outposts in unaffected regions of Australia. Also, use the stock and external yard of the Group company Philippine Sinter Corporation.
FOCUS Key Factor (6) Damage to Production Bases and Offices Caused by Climatic HazardsMeasures against flood and drought in progress; impact of flooding caused by rising sea levels can be addressed with current countermeasures.
We are taking action to minimize damage under the assumption that typhoons and heavy rains will become stronger and that the occurrence of disasters comparable to the torrential rain in western Japan in 2018 will rise. We have currently invested approximately 6.5 billion yen for disaster prevention at steelworks and strengthened drainage facilities and other assets. About 3.5 billion yen of separate investment has already been made to prepare for water shortages at steelworks by installing desalination facilities at some of the steelworks. Although no severe drought disaster has struck since the 1994 disaster, we are preparing to minimize any damage even if the frequency of occurrence should increase.
All steelworks are exposed to the risk of floods associated with rising sea levels because of their location in coastal areas. The estimated sea level rise by 2050 is 20 to 30 cm (70 cm by 2100 if the impact of climate change manifests itself at the highest level.) We believe that current measures against storm surge, which generates more sea level rise, are sufficient to address the risk. However, we will continue analyzing climatic hazards going forward so as to prepare for the changing circumstances.
FOCUS Key Factor (7) National ResilienceContribute to infrastructure enhancement with products such as a high-strength H-shaped steel, high-strength steel pipe pile, and hybrid tide embankments.
The JFE Group takes seriously the increased frequency and severity of recent climatic hazards in Japan. Also, the daily life of the Japanese citizenry is being exposed to a heightened risk of danger. The JFE Group defines its mission as promoting disaster prevention and mitigation as well as national resilience to maintain vital infrastructure that are essential to daily life and economic activities.
The JFE Group will gather its collective energy to protect key structures from earthquakes using structural steel such as a high-strength H-shaped steel and steel pipe piles as well as steel sheet piles. It will also help to reinforce embankments that are prone to bursting and provide disaster prevention products such as hybrid tide embankments*1 and steel slit dams, in addition to reconstructing infrastructure.
Hybrid tide embankments
Steel slit dams
*1 The JFE Engineering Corporation’s Website: Steel infrastructure (Japanese only)
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, collects specific information for the purpose of reducing 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 relevant committee confirms and evaluates risks and discusses and makes decisions on countermeasures.
The Board of Directors supervises initiatives on ESG risks such as those related to climate change and CSR by receiving reports and deliberating over key issues.
Climate-related risks are identified and evaluated based on a scenario analysis conducted under the framework recommended by the TCFD. Important factors that may affect management are selected for further analysis and used in formulating business strategies for the future.
For more on this, please refer to the following information.
CSR structure including ESG risk management: CSR Structure
Enterprise risk management: Risk Management
Environmental management including climate change issues: Environmental Management
Metrics and Targets
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.
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 this year to be a landmark year to further reinforce our efforts to tackle the issues of climate change, and we are actively promoting initiatives for reducing CO2 emissions with the targets set up as follows:
JFE Group's Target for Reducing CO2 Emissions
For more on this, please refer to the following information.
Commitment to a Low Carbon Society: Steel Industry Initiatives
Targets and Results Related to Climate Change: Material CSR Issues
Initiatives on Climate Change: Climate Change (Climate Change Mitigation)
Addressing Climate Change Issues
The JFE Group considers addressing climate change issues as an extremely important managerial challenge. We respond to risks and opportunities to enable sustainable growth and disclose information about our related actions.
Addressing climate change issues is an extremely important managerial challenge for the JFE Group, not only from the perspective of business risks but also in terms of opportunities to contribute to the realization of a sustainable society.
The TCFD’s final recommendations, published in 2017, encourage companies to disclose their resilience strategies for responding to climate change issues through scenario analysis. The JFE Group announced its endorsement of the recommendations in May 2019, and the CSR Report 2019 was our first disclosures in line with TCFD recommendations. The report provides information on our risk management for the 2°C and 4°C scenarios in addition to our commitment to addressing issues through the development of an innovative iron and steelmaking process, eco-friendly products and technologies, and efforts for strengthening national resilience. We regard this year to be a landmark year to further reinforce our efforts to tackle the issues of climate change, and intend to advance into a new stage.
In the steel business, which accounts for most of the JFE Group’s CO2 emissions, we are exploring feasible scenarios with the aim of reducing CO2 emissions in fiscal 2030 by 20% or more compared to fiscal 2013. We will also pursue diverse initiatives to strive to be carbon neutral within the JFE Group as soon as possible after 2050.
In addition, we will continue enhancing our scenario analysis to evaluate the impact on our business strategy and use the results in formulating future strategies while actively engaging in the necessary initiatives. We hope this information will be noted by many investors and other stakeholders and encourage dialogues for deepening understanding of the measures that the Group is taking.
Senior Vice President of
JFE Holdings, Inc.