JFE to Introduce Climate-change Indicators in Executive Remuneration

JFE Holdings, Inc.

JFE Holdings, Inc. and its group operating companies have decided to include climate-change indicators in remuneration paid to directors and executive officers as an incentive to step up efforts to address climate change.

Remuneration based on nonfinancial indicators, which is part of annual bonuses paid to JFE directors and executives, reflects achievement scores that are calculated according to key performance indicators (KPIs) and performance outcomes.

In FY2022, JFE began incorporating nonfinancial indicators related to employee safety into performance-based remuneration paid to directors and executives. From the new fiscal year starting in April, payment calculations will additionally include the achievement of KPIs as an incentive to contribute to resolving climate change issues (initiatives for achieving carbon neutrality by 2050). Each operating company will set its own KPIs in order to reflect its own performance targets.

Going forward, JFE Holdings’ Remuneration Committee and Board of Directors will consider further changes to ensure that director and executive remuneration serves as an effective incentive to achieve sustainable growth over the long term.


Climate-change KPIs newly introduced in director and executive remuneration from FY2023

Operating company KPIs
JFE Steel
  • Achieve 75% of the CO2 reduction target from energy conservation and technological development reducing CO2 emissions by 18% from FY2013 levels by the end of FY2024
  • Launch sales and implement eco-friendly products and technologies*: at least 15 cases in FY2023 (at least 60 cases for the period from FY2021 to FY2024)
    *Products and technologies that contribute to saving energy and resources, reduce waste and environmentally hazardous substances, and do not require hazardous substances for manufacturing or use.
JFE Engineering
  • Reduce CO2 emissions in its own plants and offices FY2024: 40% reduction from FY2013 levels (brought forward one year from 7th Medium-term Business Plan)
  • Contribute to reduction of CO2 in society by providing renewable energy power generation facilities and expanding the basis of the recycling business (for plastic, food, etc.)Contribute to reduction in CO2 emissions (FY2023): 11.5 million tons per year
JFE Shoji
  • Reduce CO2 emissions through the procurement of electricity derived from renewable energy FY2023 domestic CO2 emissions: reduce by 15% from FY2019 levels (Reduce by 5% per year from FY2019 levels from FY2021 to FY2024)


JFE Holdings CEO remuneration example:6:2:2 ratio of base salary, annual bonus and stock award upon achievement of performance targets.

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