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JFE Group Value Chain

The JFE Group's value chain encompasses upstream and downstream activities across the globe. We seek to address social challenges by identifying the risks and opportunities that the Group must resolve through its business operations and pursue initiatives that tackle those challenges. We will also continue to strengthen the sustainability of the entire Group and implement countermeasures throughout our value chain.

Steel Business and Trading Business

Steel Business and Trading Business

Overview of the Value Chain

Procurement

To ensure stable supply of iron ore and coal used as raw materials in the production of steel products, we purchase from various sources around the world such as Australia, North and South America, Russia, and Africa and transport materials to the steelworks on a special vessel. Equipment and materials used at steelworks plants are also purchased globally.

Manufacturing, Production, and Shipping

The JFE Group is one of the world's largest steelmakers and has cutting-edge technologies for the efficient production and stable supply of high-quality steel products, used in products indispensable to daily life such as automobiles, infrastructure, and home appliances. We also promote resource recycling by recycling steel scrap generated in the process of producing steel products while also repurposing iron and steel slag in cement and other construction materials.

Sales and Usage

The JFE Group is committed to developing eco-friendly products such as high tensile strength steel sheets that help reduce the weight of automobiles as well as electrical steel sheets used in electric vehicles. We support the frontier of production by responding to the diverse needs of different industries through research and development and by improving production technologies.

Collecting Steel Scrap

Steel products at the end of their product life cycle are collected as steel scrap and recycled as materials for the steel production cycle.

Environment

Challenges in the Value Chain Procurement Manufacturing,
Production,
brand Shipping
Sales
and Usage
Collecting
Steel Scrap
Raw Material
Iron Ore/Coal
Machinery
Climate Change
JFE Group views the issue of climate change as a critical managerial concern from the perspective of business continuity, and it considers achieving carbon neutrality by 2050 a top priority. By designating climate change issue as a material issue of corporate management, we are actively tackling the challenge to solve this issue.

Opportunities

Increased need for renewable energy solutions

Expand electric furnace steelmaking and electric furnace engineering businesses

Contribute to reduced CO₂ emissions by providing high-performance steel such as high tensile strength steel sheets and electrical steel sheets

   

Risks

Physical and transitional impact of climate change (CO₂ emissions, water risk, etc.)

Introduction of a carbon tax

Disruptions to the supply chain caused by climate change-related disasters, natural disasters such as earthquakes

Risk of floods associated with rising sea levels

Key Initiatives

Climate Change

Related Pages

Supply Chain Management

Development and Provision of Eco-friendly Processes and Products

Scenario Analysis in Line with the TCFD Recommendations

Steel Industry Initiatives

Environmental Data

Development and Provision of Eco-friendly Processes and Products
Under our corporate philosophy of contributing to society with the world's most innovative technology, the JFE Group strives to reduce its environmental impact by developing steel manufacturing processes and providing technologies and products with due consideration for the environment.

Opportunities

Develop eco-friendly innovative technologies and ensure competitiveness

     

Risks

Heightened decarbonization needs in iron and steelmaking process

Tighter environmental regulations

Increased environmental impact during product use

   

Key Initiatives

Development and Provision of Eco-friendly Processes and Products

Efficient Use of Resources
Given that such issues as resource depletion and environmental pollution are expected to intensify on a global scale, the JFE Group is enhancing resource recycling through recycling co-products generated in the iron and steelmaking process and promoting the international recycling of steel scrap.

Opportunities

Renewed interest in recyclability of steel

Increased use of scrap

Expand the scrap distribution business

   

Risks

Shortage of disposal sites for waste generated

Resource depletion

Declining in the grade, rising price and difficulty of obtaining obsolete scrap

 

Key Initiatives

Efficient Use of Resources

Related Pages

Development and Provision of Eco-friendly Processes and Products

Environmental Data

Water Security
Steel manufacturing requires large quantities of fresh water for cooling and cleansing products and facilities. For this reason, the efficient use of water resources with due consideration to the source of the water and stakeholders in the area is a key challenge.

Risks

Increased environmental impact

Tighter environmental regulations

Risk of drought in the water intake area, risk of pollution in the discharge area

   

Key Initiatives

Water Security

Related Pages

Development and Provision of Eco-friendly Processes and Products

Environmental Data

Prevention of Pollution
Controlling air pollutant emissions and aggressively investing in environmental preservation are key for achieving co-existence and mutual prosperity with local communities, the global environment, and society at large as well as ensuring business continuity.

Risks

Increased environmental impact

Tighter environmental regulations

 

Key Initiatives

Prevention of Pollution

Related Pages

Development and Provision of Eco-friendly Processes and Products

Environmental Data

Social

Challenges in the Value Chain Procurement Manufacturing,
Production,
brand Shipping
Sales
and Usage
Collecting
Steel Scrap
Raw Material
Iron Ore/Coal
Machinery
Responsibility to Customers
The JFE Group provides steel products used in diverse areas that are indispensable to daily life, such as automobiles, infrastructure, and home appliances. One of our key responsibilities is to serve customers by meeting their quality requirements and providing a stable supply of products.

Opportunities

Expansion of CSR procurement and development of structure for stable procurement

Ensure competitiveness through stable production and stable quality

Risks

Disruptions to the supply chain caused by climate change-related disasters, natural disasters such as earthquakes, and COVID-19

Lose credibility with customers due to issues related to production and quality

Declining in the grade, rising price and difficulty of obtaining obsolete scrap

Key Initiatives

Responsibility to Customers (Provide Quality Products and Enhance Customer Satisfaction)

Related Pages

Supply Chain Management

Social Data

Occupational Health and Safety
Providing for the health and safety of employees is a basic requirement of companies, particularly manufacturers, and is fundamental to the continued existence of any company. The JFE Group adheres to the philosophy of safety first, and, together with its Group companies and business associates, works to consistently maintain safe working environments and secure workplaces for all employees.

Risks

Occurrence of accidents, including occupational injuries

Key Initiatives

Occupational Health and Safety

Related Pages

Supply Chain Management

Social Data

Labor Standards
The JFE Group creates satisfying workplace environments and systems that incorporate diverse workstyles and enable employees with different backgrounds to fully demonstrate their abilities. We do this not only to comply with laws and regulations but also to achieve sustainable corporate growth.

Opportunities

Secure excellent human resources through workstyle reform

       

Risks

Labor shortage

Labor risks

Culture of passing down technical skills is dying out

Key Initiatives

Labor Standards (Recruit and Nurture Diverse Human Resources)

Related Pages

Social Data

Human Rights
The JFE Group views respect for human rights as both a corporate social responsibility and a foundation of its business. Our determination to not engage in discrimination in our business activities is clearly expressed in our Standards of Business Conduct, which we have upheld throughout our actions. And we pursue Group-wide initiatives based on the United Nations Guiding Principles on Business and Human Rights.

Risks

Potential human rights risks

Key Initiatives

Human Rights

Related Pages

Supply Chain Management

Social Data

Governance

Challenges in the Value Chain Procurement Manufacturing,
Production,
brand Shipping
Sales
and Usage
Collecting
Steel Scrap
Raw Material
Iron Ore/Coal
Machinery
Compliance
In expanding our businesses in and outside of Japan, it is important that JFE maintains relationships of trust with all stakeholders, including its customers, shareholders, and local communities. Trust can only be built upon a strong foundation of ensuring thorough compliance. It is therefore extremely important to conduct training on corruption prevention and other compliance training, so that all members of the organization can deepen their knowledge and awareness of compliance and perform their jobs accordingly.

Risks

Legal risks such as violations of antitrust law or competition law

   

Key Initiatives

Compliance

Related Pages

Supply Chain Management

Governance Data

Information Security
The JFE Group formulates various rules on information security management to prevent information leakage and system failure due to cyber-attack or improper system use and continually raise the level of its information security management.

Risks

Cyber security risks

Key Initiatives

Risk Management

Related Pages

Governance Data

DX REPORT



Engineering Business

Engineering Business

Overview of the Value Chain

Engineering (Creating the Foundations for Daily Life) - Business Operation/Operation Support (Bearing the Responsibility of Supporting Daily Life)

Engineering (Creating the Foundations for Daily Life)

The JFE Group has built many high-functioning, high-quality facilities in fields such as energy, the environment, and bridges while satisfying the needs of our customers every step of the way, from design to delivery. We have combined and evolved the technologies for processing and assembling in shipbuilding business and technologies relating to materials and combustion in the steel business to create next-generation energy and to address environmental issues. Many of our technologies support society. In addition, we are assembling our resources to develop new business models and new technologies based on existing technologies. We produce high-quality products at low cost by establishing production sites, including one of the largest steel structure production factories in Japan, overseas bases centered on Asian countries, and global engineering structures.

Business Operation/Operation Support (Bearing the Responsibility of Supporting Daily Life)

The JFE Group engages in many private-public initiatives in the field of public services by applying the operational and maintenance know-how acquired over many years, primarily with regard to the environment and water and sewage plants. Furthermore, we build plants, engage in the recycling business and renewable energy business, and take the initiative to realize a recycling-oriented sustainable society. Going forward, we intend to expand our initiatives even further.

Environment

Challenges in the Value Chain Planning,
Development,
and Design
Procurement Production
and Construction
Maintenance
and Operations
Climate Change
The JFE Group strives to reduce CO₂ emissions in society through its eco-friendly products and technologies, including those that harness renewable energy and energy-saving products in its engineering business. We identified our response to climate change as a material management issue and are actively addressing the related challenges.

Opportunities

Increased need for renewable energy solutions

Increased demand for CCU/CCS facilities

More sophisticated needs in the energy-environment area

Increased response to climate change related disasters (disaster prevention and mitigation, disaster waste processing)

Increased demand for food waste power generation

Risks

Disruptions to the supply chain caused by climate change-related disasters, natural disasters such as earthquakes

Effects of meteorological disasters

Risk of floods associated with rising sea levels

Tighter environmental regulations

Key Initiatives

Climate Change

Related Pages

Supply Chain Management

Development and Provision of Eco-friendly Processes and Products

Scenario Analysis in Line with the TCFD Recommendations

Environmental Data

Development and Provision of Eco-friendly Processes and Products
Under its corporate philosophy of contributing to society with the world's most innovative technology, the JFE Group will contribute to meeting social challenges related to reducing environmental impact through business operations that focus on the environment and recycling fields as growth sectors.

Opportunities

Need for improving operational efficiency and reducing environmental impact

Need for cost reduction and energy saving

 

Key Initiatives

Development and Provision of Eco-friendly Processes and Products

Efficient Use of Resources
Given that issues such as resource depletion and environmental pollution are expected to intensify on a global scale, our resource recycling solutions include operating our own waste recycling and energy supply businesses, in addition to constructing and providing plants for waste incineration and sludge digestion to customers.

Opportunities

Increased demand for plastic recycling

Increased demand for food waste power generation

Risks

Shortage of disposal sites for waste generated

Prevention of resource depletion

 

Key Initiatives

Efficient Use of Resources

Related Pages

Development and Provision of Eco-friendly Processes and Products

Environmental Data

Water Security
We provide total management of water and sewage systems, including maintenance and operations, to secure vital lifelines and are thereby contributing to reducing the negative impact on the water environment.

Opportunities

Need for improving operational efficiency and reducing environmental impact

     

Risks

Risk of drought in the water intake area, risk of pollution in the discharge area

Violation of environmental regulations and laws

 

Key Initiatives

Water Security

Related Pages

Development and Provision of Eco-friendly Processes and Products

Environmental Data

Prevention of Pollution
Controlling air pollutant emissions and aggressively investing in environmental preservation are key for achieving co-existence and mutual prosperity with local communities, the global environment, and society at large, as well as for ensuring business continuity.

Opportunities

Need for improving operational efficiency and reducing environmental impact

     

Risks

Increased environmental impact

Violation of environmental regulations and laws

Environmental accidents

Pollution of the environment

Key Initiatives

Prevention of Pollution

Related Pages

Development and Provision of Eco-friendly Processes and Products

Environmental Data

Social

Challenges in the Value Chain Planning,
Development,
and Design
Procurement Production
and Construction
Maintenance
and Operations
Responsibility to Customers
The JFE Group has developed a global engineering system encompassing one of the largest steel structure production factories in Japan, overseas bases centered on Asian countries, and global engineering structures. We intend to maximize customer satisfaction by complying with the Group-wide quality policy, providing high-quality products and services, and reinforcing our after-sales service system.

Opportunities

Expansion of CSR procurement and development of structure for stable procurement

Implement requested functions

Need for cost reduction and energy saving

Expand the business scale through privatization of public services

Risks

Lose credibility with customers due to issues related to production and quality

   

Key Initiatives

Responsibility to Customers (Provide Quality Products and Enhance Customer Satisfaction)

Related Pages

Social Data

Occupational Health and Safety
Providing for the health and safety of employees is a basic requirement of companies, particularly manufacturers, and is fundamental to the continued existence of any company. The JFE Group adheres to the philosophy of safety first, and, together with its Group companies and business associates, works to consistently maintain safe working environments and secure workplaces for all employees.

Opportunities

Maximize human capital through physical and mental health

Risks

Occurrence of accidents, including occupational injuries

Disruptions to the supply chain caused by COVID-19

Key Initiatives

Occupational Health and Safety

Related Pages

Supply Chain Management

Social Data

Labor Standards
The JFE Group creates satisfying workplace environments and systems that incorporate diverse workstyles and enable employees with different backgrounds to fully demonstrate their abilities. We do this not only to comply with laws and regulations but also to achieve sustainable corporate growth.

Opportunities

Saving labor through new technology

Need for remote monitoring and automation due to a lack of human resources

   

Risks

Labor shortage

Labor risks

Culture of passing down technical skills is dying out

Key Initiatives

Labor Standards (Recruit and Nurture Diverse Human Resources)

Related Pages

Social Data

Human Rights
The JFE Group views respect for human rights as both a corporate social responsibility and a foundation of its business. Our determination to not engage in discrimination in our business activities is clearly expressed in our Standards of Business Conduct, which we have upheld throughout our actions. And we pursue Group-wide initiatives based on the United Nations Guiding Principles on Business and Human Rights.

Risks

Potential human rights risks

Key Initiatives

Human Rights

Related Pages

Supply Chain Management

Social Data

Governance

Challenges in the Value Chain Planning,
Development,
and Design
Procurement Production
and Construction
Maintenance
and Operations
Compliance
In expanding our businesses in and outside of Japan, it is important that JFE maintains relationships of trust with all stakeholders, including its customers, shareholders, and local communities. Trust can only be built upon a strong foundation of ensuring thorough compliance. It is therefore extremely important to conduct training on corruption prevention and other compliance training, so that all members of the organization can deepen their knowledge and awareness of compliance and perform their jobs accordingly.

Risks

Legal risks such as violations of antitrust law or competition law

   

Key Initiatives

Compliance

Related Pages

Supply Chain Management

Governance Data

Ensuring Information Security
The JFE Group formulates various rules on information security management to prevent information leakage and system failure due to cyber-attack or improper system use and continually raise the level of its information security management.

Risks

Cyber security risks

Key Initiatives

Risk Management

Related Pages

Governance Data

DX REPORT