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CSR Structure

JFE Group CSR System

The JFE Group realizes corporate responsibility by understanding itself as part of the society and considers corporate social responsibility (CSR) to be the foundation of its business as it contributes to the realization of a better society.

Supervision over CSR Initiatives (JFE Group CSR Council, Group Management Strategy Committee, and Board of Directors)

The Group established the JFE Group CSR Council, chaired by the president of JFE Holdings and comprised of the executive vice president (director), corporate officers, full-time Audit & Supervisory Board members, the presidents of operating companies, and other members to oversee and direct the CSR initiatives of the entire organization. Three independent, cross-Group committees have been established under the council, JFE Group Compliance Committee, JFE Group Environmental Committee, and JFE Group Internal Control Committee to discuss specific topics as well as to oversee and direct the Group’s CSR initiatives. Topics regarding CSR policies and initiatives discussed at the meetings of the Group CSR Council and deemed important to management will also be deliberated at the Group Management Strategy Committee and reported to the Board of Directors. The board oversees the Group’s CSR activities by discussing the key matters reported.

JFE Group CSR Council Activities

The Group CSR Council meets approximately once every three months to discuss policies related to the Group’s CSR initiatives, including instruction and guidance on material issues, to monitor the penetration of the policies within the Group, and to share information and carry out horizontal communication regarding examples of our responses to issues and problems. The council deals with a broad scope of issues, including those related to compliance, the environment, climate change, human resources, labor issues, safety, disaster prevention, social contribution, addressing antisocial forces, and ESG-related risks.

Cooperation with Operating Companies

Entities with functions similar to those of the Group CSR Council are set up at each operating company as well and coordinate the promotion of Group-wide CSR initiatives. JFE Steel established the CSR Council chaired by the President in July 2005, following the establishment of the CSR Section in April 2005. Specific committees and sub-committees in areas such as compliance, global environment, risk management, safety and disaster prevention, customer satisfaction, social contributions, etc. established under the CSR Council have been actively conducting the activities in each area, while promoting CSR awareness together with the Group companies. JFE Engineering and JFE Shoji also lead in the promotion of CSR through establishment of committees in areas such as compliance and environmental committees.

CSR Structure

CSR Structure

Confirmation and Improvement through the Employee Awareness Survey

The JFE Group regularly conducts a Corporate Ethics Awareness Survey for directors and employees of the Company as well as the operating companies to confirm the penetration and thorough compliance of the Group’s Corporate Vision, Corporate Values, and Standards of Business Conduct, along with the identification of potential risks. The survey conducted in 2019 confirmed that many employees acknowledged the vision and corporate policy and are aware of compliance matters when carrying out their work. On the other hand, the survey also brought to our attention issues to address going forward. The survey results were reported to the Board of Directors and JFE Group CSR Council, and each company worked on reflecting the information in their specific initiatives.

CSR Audit

To ensure that CSR activities are conducted properly, the JFE Group systematically audits environmental management, Antimonopoly Law compliance, expense management, overseas office management, tax law compliance, safety management, and disaster prevention. If an audit reveals a problem, the internal audit departments of JFE Holdings and relevant operating companies share information to support the implementation of corrective measures in their CSR activity.

Initiatives and Relevant SDGs

The JFE Group is taking action to address CSR issues, even in non-material areas.
The following chart summarizes all activities introduced in this report. Through these activities, the JFE Group intends to contribute to the achievement of the SDGs.


Activities Related SDGs
CSR Management
Supply Chain Management ・Procurement Policy and Initiatives for Each Business
・Promoting Green Procurement
Addressing ESG Issues
Environmental Management ・Environmental Management System
・Environmental Education
Climate Change ・Saving Energy and Reducing CO2 in Iron and Steelmaking Process
・Initiatives for Reducing CO2
Prevention of Pollution ・Controlling Air Emissions
・Preventing Water Pollution
・Management of Chemical Substances
Efficient Use of Resources ・Reducing Generation and Emission of Co-products and Reusing Co-products
・Promoting Recycling
・Resource Recycling Solution
Water Security ・Efficient Use of Water
Biodiversity ・Biodiversity Initiatives
・Commitments to External Initiatives
・Products and Technologies to Preserve Biodiversity
Environmental Communication ・Disclosing Environmental Data
・Disclosure and Exchange of Information
Customer Responsibility ・Quality Initiatives
・Quality Improvement and Enforcement of Quality Assurance Systems
・Improving Customer Satisfaction
・Responsible Export Practices
Occupational Health and Safety ・Occupational Health and Safety
・Employee Health
Labor Standards ・Workstyle Reform
・Operational Reform
・Workforce Diversity Promotion
・Developing Dynamic Work Environments
Human Rights ・Respecting Human Rights Initiatives
・Respecting the Rights of Workers
Community ・Local Activities
・Support for External Organizations
・Support for Youth Development
・JFE 21st Century Foundation
Shareholders and Investors ・Proactive Information Disclosure
Compliance (including Anti-corruption) ・Adherence to Ethical Standard; Legal Compliance
Tax Transparency ・Basic Policy

Stakeholder Engagement

The JFE Group strives to maintain agreeable and favorable relationships with all stakeholders, including Stakeholder Engagement shareholders, customers, clients, employees, and local communities, for the sustainable growth and medium- to long-term increase of corporate value.

JFE Group’s Major Stakeholders

Approach Major Communication
Methods, etc.
Others
Frequency
(per year)
Scale, etc.
Shareholders/Investors
We work to disclose information accurately, fairly and in a timely and appropriate manner as well as strive for active communication. We established the Investor Relations and Corporate Communications Department as an organization responsible for communication with domestic and international shareholders and investors, and to promote constructive dialogue as well as provide management with the information acquired, with the aim of maintaining and improving the relationship of trust. Ordinary general meeting of shareholders (convocation notices, notices of resolutions, etc.) 1 Approx. 150,000 shareholders
Investors meeting (financial results, medium-term business plan, etc.) 5 Approx. 500 persons in total
Individual meeting (financial results, medium-term business plan, etc.) As needed Approx. 400 persons in total
Briefings (at the branch offices of securities firms, etc.) 11 Approx. 800 persons
Plant tours for shareholders (steel, engineering, shipbuilding bases, etc.) 23 Approx. 1,800 persons
Publishing shareholder newsletters (JFE Dayori) 2
(mid-year and annual)
Approx. 220,000 copies/issues
Various reports, including integrated reports and CSR reports 1 Approx. 40,000 copies
Information via websites (for shareholders and investors), etc. As needed
Customers
The Group believes that the stable supply of products and services and reliable quality assurance, along with advancing research and development, are necessary to meet customer needs. We will work to establish win-win relationships by continuously meeting customer needs and the trust they place in us. Communication through sales activities and support for quality assurance As needed Conducted at each operating company
Interviews and questionnaires, such as that on customer satisfaction As needed Conducted at each operating company
Information via websites (product information), etc. As needed
Clients
CSR initiatives are being actively pursued together with our clients, who are important business partners. We have established Purchasing and Procurement Policies to promote fair and sincere procurement activities and to construct healthy relationships with clients. Communications through purchasing activities As needed Conducted at each operating company
Briefing and discussions As needed Conducted at each operating company
Information via website, etc. As needed
Employees
With the recognition of top management that creating workplaces to provide dignity and job satisfaction for all is essential for maximizing the potential of individuals, we have formulated the Basic Policy on Human Resource Management and Health Declaration and are conducting various activities toward attaining the goals. Communications through daily operations and in the workplace As needed
Internal newsletters and intranet As needed
Various labor-management committees 2 to 4 Management and labor unions
at each operating company
Corporate Ethics Hotline As needed 101 calls in FY2019
Various training sessions As needed Position-specific, compliance, human rights, etc.
Family days (visits by employee families, lunch at employees’ cafeterias, etc.) As needed Conducted at each operating company
Corporate Ethics Awareness Survey 1 (every 3 years) At the company and operating companies
Local communities
To ensure business continuity at manufacturing bases where steelworks are located and elsewhere, constructing a relationship of trust with citizens in local communities and realizing coexistence and prosperity are crucial. We will pursue various activities with the aim of realizing sustainable growth and regional development, including continued initiatives toward ensuring safety and reducing our environmental impact. Communication through local residents’ associations, events, etc. As needed
Events at manufacturing bases (festivals, etc.) Approx. once in each region Approx. 270,000 persons a year
Plant tours As needed 100,000 or more persons a year
Clean-up activities (vicinity of manufacturing bases, regional cleaning, etc.) As needed
Sports promotion (baseball or jogging workshops, various sports competitions, etc.) As needed
Others (education at elementary schools, craft workshops, workplace experience events, etc.) As needed
Information via websites (environmental info, etc.) As needed
Social contribution through JFE 21st Century Foundation (various research support, regional activity support, etc.) As needed