Environmental Awareness

Environmental issues are of great concern to the international community and have serious implications for humanity and the planet. Climate change, destruction of ecosystems due to deforestation, pollution of water resources, and protection of biodiversity are just a few examples of the global trends that require individuals and companies to implement and sustain long-term environmental initiatives.
It requires international coordination and cooperation, and the collaboration of governments, businesses, and individuals is essential. It is important to use international frameworks, such as the Sustainable Development Goals (SDGs), to implement strategies and measures to address environmental issues.

Environmental Policy

The JES Group considers environmental issues (climate change, biodiversity, water security, pollution and resources), which are international challenges, to be important management issues and is committed to working with stakeholders to reduce the environmental impact of its operations and contribute to the realization of a sustainable society through the following initiatives.

  1. Compliance with laws and regulations
    We will comply with environmental protection treaties and the laws and regulations of the countries in which we operate.
  2. Response to climate change
    To reduce greenhouse gas emissions, we will strive to contribute to the mitigation of climate change by being mindful of our energy use.
  3. Response to biodiversity
    Recognize the benefits that ecosystems provide, minimize their impact on biodiversity, and contribute to their conservation.
  4. Response to water security
    Strive to reduce water consumption through efficient use of water and proper treatment of water.
  5. Pollution and resources
    Contribute to the formation of a recycling-oriented society by promoting sustainable use of resources in the supply chain handled by our business, reduction of resource use, waste reduction, and recycling, in an effort to reduce emissions of air pollutants and to reduce and properly dispose of hazardous waste and wastewater.
  6. Collaboration with suppliers
    The JES Group will promote communication with suppliers and other business stakeholders on environmental issues and seek their cooperation in resolving these issues.
  7. Environmental management system
    We will establish targets for reducing environmental impact and conduct periodic monitoring reviews of all business activities, including service provision and logistics, and strive to take appropriate actions based on environmental impact assessments.

     

Supply Chain and the Environment

The JES Group considers environmental issues (climate change, biodiversity, water security, pollution and resources) as one of the most important management issues in conducting its business. We will work with all stakeholders, including customers, users, employees, subcontractors, suppliers, and local communities, to ensure appropriate environmental response throughout the supply chain of our business.
The JES Group also strives to disclose environmental information through its Sustainability Report. We will enhance information disclosure on climate change and environmental management so that all stakeholders can understand the various initiatives of the JES Group.

Initiatives to Tackle Climate Change

The JES Group supports the goal of international organizations and the Japanese government to achieve a carbon neutral society by 2050.
We recognize that global warming has the potential to cause severe weather, sea level rise, and ecosystem changes that could have serious impacts on humanity and ecosystems. Currently, many extreme weather events are occurring due to climate change. In Japan, torrential rain disasters have caused damage, which has also affected the elevator maintenance business, such as in response to malfunctions.
The transition to a carbon neutral society is an important step in limiting rising temperature through reduction of greenhouse gas (GHG) emissions and in mitigating climate change.
We recognize that economic activity requires an environment in which people can live healthily and safely, and that individuals and businesses have a social responsibility to take actions to address the impacts of climate change that impede such activity. Compliance with the Paris Agreement and other international climate change agreements is important and essential to building a sustainable future.
The JES Group is committed to contributing to the environment by striving to develop its business in an environmentally friendly manner.
 

 

Indicators and Targets

The JES Group has been calculating greenhouse gas emissions in accordance with Science Based Targets (SBT) since the fiscal year ended March 31, 2023. Aiming for SBT certification, we are clarifying our efforts to reduce greenhouse gas emissions and establishing reduction targets with the fiscal year ended March 31, 2024 as the base year.

Assumptions for Targets
In establishing reduction targets, we assumed that there will be no impediments to the execution of the business plan, materiality quality and safety, occupational safety, and employee engagement.
For example, technical personnel perform maintenance in each area, but travel to managed properties is primarily by car. Automobiles are primarily gasoline-powered vehicles, and while the use of gasoline produces greenhouse gases, there is no alternative to not using automobiles. Regular maintenance and access to transportation that can be quickly rushed to the site in the event of a disaster are essential.
As a publicly listed company, the JES Group continues to grow economically, and the number of offices and employees is increasing in proportion to growth, and this trend will not change as we work toward achieving our mid-term management plan. Therefore, emissions are expected to increase under the normal scenario because the amount of economic activity will increase. Goals are to be formulated on the assumption that the volume of activities will increase in proportion to the increase in sales.

JES Group Greenhouse Gas Emissions in FY March 2024

It is our policy to consider and implement environmentally friendly initiatives while keeping our business plan in mind and not taking options that would hinder the sustainability of our business.
The JES Group has calculated the group's total greenhouse gas emissions for the fiscal year ended March 31, 2024 for the entire supply chain, including Scope 1 and 2 (in-house emissions) as well as Scope 3 (non-JES Group emissions). Greenhouse gas emissions for Scope 1, Scope 2, and Scope 3 were calculated to be 4,006 t-CO2, 1,411 t-CO2, and 68,007 t-CO2, respectively, for the year ended March 31, 2024.
By setting the fiscal year ended March 31, 2024 as the base year and establishing future reduction targets, we hope to clarify our efforts to contribute to the environment.

CO2 Reduction

Scope1 Reduction
The main breakdown of Scope 1 is gasoline for vehicles used to inspect managed properties and respond to breakdowns. The total usage for the fiscal year ended March 31, 2024 is 1,489 kiloliters.
The number of managed properties is increasing every year, and the number of vehicles is expected to increase as the business tends to expand, including the opening of new stores in newly expanding areas.
In order to reduce emissions, we are currently working on switching from automobiles to motorcycles, especially in urban areas where there is a high density of properties, and also testing the introduction of electric bicycles. Our policy is to promote the switchover to the extent that it does not interfere with service quality.
Electric vehicles (EVs) do not use gasoline, so the Scope 1 reduction effect is significant, but the expansion and penetration of the recharging infrastructure is still to come, and will be considered based on the supply situation and its impact on our business.

Scope2 Reduction
The main component of Scope 2 is electricity used at our offices. JES Group offices are located throughout Japan, and electricity is purchased from electric power companies and other companies that have jurisdiction over each office.
One way to reduce emissions is to switch purchased electricity sources to renewable energy sources. However, we recognize that the capacity of non-fossil fuels held by electric utilities is finite, and without an increase in supply due to technological innovation and changes in social infrastructure, a stable and continuous switchover will be difficult. Therefore, we intend to promote the reduction of greenhouse gas emissions through a gradual switchover while continuing to gather information from electric power companies.

Scope3 Reduction
 Scope 3 is greenhouse gas emissions from sources other than our own, and the main source is from Category 1, "Purchased Products and Services.
JES Group purchases control panels, ropes, and other parts for use in elevator maintenance and modernization operations for a variety of models. Parts purchases are necessary for elevator safety, and the volume of purchases is expected to increase in proportion to the increase in the number of properties under management.
Cooperation from suppliers is essential for Category 1 reduction, as their commitment to GHG reduction is a key point. We will consider our response based on friendly relationships with our business partners and in light of the status of social demands.
Emission reductions for other categories are considered as individual issues.
 

Water Resources

We recognize that wastage of water resources and water pollution are important issues in the earth's ecosystem.
Since JES Group is not a manufacturer and does not have a manufacturing plant, we recognize that the impact on water resources through our business is very minimal.

Water Security

Basic Policy
We recognize that wastage of water resources and water pollution are important issues in the earth's ecosystem.

Water Risk
Utilizing the international index WRI Aqueduct, we comprehensively analyzed and evaluated current and future risks. We confirmed that  there is no significant water risk at Group's main sites at this time.

Water Use and Drainage
We monitor the amount of water resources used, strive to conserve water, and implement appropriate wastewater management.
The water used by the JES Group is for domestic use, and there were no violations of regulations pertaining to wastewater.
In addition, we confirmed that the water applied to employees was safe.

Biodiversity Conservation

We recognize the importance of protecting ecological diversity and limiting negative impacts on human sustainability.
Since JES Group is not a manufacturer and does not have a manufacturing plant, we do not engage in any activities that directly affect the ecosystem, such as deforestation, and we recognize that the impact of such activities is extremely minor.

Biodiversity Policy

Business activities benefit from biodiversity in the cycle of products and services, including production, distribution, and use. On the other hand, it is also true that disposal and incineration have an impact on biodiversity. All people and corporations living on the Earth must live in harmony with nature and biodiversity to achieve sustainable development.

In order to contribute to the realization of a society that coexists in harmony with nature, we aim to minimize the impact of our business activities on nature and biodiversity.
 

  1.  Understand the impact on biodiversity
  2.  Minimize the impact on biodiversity
  3.  Comply with international agreements and regulations
  4.  Conduct business activities without damaging the ecosystem
  5.  Work with external parties on biodiversity

Disclosure under the TCFD

Climate-related Financial Disclosure Task Force
Task Force on Climate-related Financial Disclosures (TCFD)


In November 2022, we expressed our endorsement of the TCFD.
In addition to disclosing information based on the TCFD recommendations, we will work to achieve environmental sustainability based on an analysis of business risks and opportunities based on these recommendations.

Risks/Opportunities

Transition Risks

Policy and Law

Increased response costs due to stricter CO2 emission regulations, introduction of carbon tax, etc.

Increased response costs for increased renewable energy deployment due to renewable energy policies

Technology

Increased costs to transition existing products and services to low CO2

Increased development costs for technological investments to reduce environmental impact

Market

Increased costs to meet growing market and customer demands for climate change

Rising prices of procured goods due to accelerated decarbonization efforts

Reputation

Risk of lost sales opportunities in the event of delays in responding to customers' CO2 emission reduction needs

Risk of increased shareholder disclosure requirements for listed companies that are reluctant to disclose climate-related information

Physical Risks

Risk of sales decline due to service delivery delays caused by damage to business locations and supply chains as a result of weather-related disasters.

Opportunities

Resource efficiency

Growing demand for recycling and refurbishing business due to the progress of decarbonization in society

Reduce the amount of energy used in corporate activities, thereby reducing operating costs

Energy source

Increased inquiries about recycling and refurbishing projects from companies looking to decarbonize their businesses.

Products and service

Increased inquiries about recycling and refurbishing projects from companies looking to decarbonize their businesses.

Increased orders for repair work on damaged elevators and other equipment

Market

Increased demand for recycling and refurbishing services from companies looking to decarbonize

Resilience

Increased demand for maintenance services with BCP systems in place

  • 1.5℃ 
    Changes in climate and weather extremes are expected. The Group will consider and implement specific measures in anticipation of an increase in emergency response due to typhoons, flooding, power outages, etc.
  • 2℃ 
    Stricter GHG emission regulations, technological innovation, and a shift to new energy sources are expected. The Group will consider and implement specific measures to reduce financial risks and enhance opportunities in the JES Group's services.
  • 4℃ 
    Physical risks are expected. Natural disasters, rising temperatures, and other factors could adversely affect infrastructure and increase electricity prices, among other risks. Specific measures will be considered and implemented to mitigate the impact of electricity price fluctuations caused by natural disasters.