ENVIRONMENT
Sustainability
Our Approach to the Environment
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.
Basic Policy
The JES Group has been committed to supporting the safety and security of society through maintenance services for elevators and other elevating equipment.
The JES Group is committed to preserving the environment through its business activities. To mitigate the effects of climate change, we are focusing on environmentally friendly initiatives and addressing issues such as sustainable use of resources. We consider this as an important long-term issue to be addressed by the JES Group and will implement it based on the following environmental concepts.
The JES Group recognizes the impact of environmental issues on sustainable growth, and will manage risk and governance with the Sustainability Committee playing a central role in specific measures.
(i) Basic Stance
We will take into consideration the preservation of the environment in accordance with the JES Group Code of Conduct,
(ii) Compliance with related laws and regulations
Comply with environmental laws and regulations,
(iii) Environmental considerations
Consideration will be given to preservation of the environment and biodiversity,
(iv) Effective use of resources and energy
Strive to make effective use of resources and energy,
(v) Contribution to the construction of a circular economy
Strive to reduce waste, reuse and recycle consumables and other materials required for business activities, and
(vi) Utilization of environmental management system
Using an environmental management system, we will establish environmental objectives and targets, make continuous improvements, and strive to prevent environmental pollution.
Initiatives for 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 reason for becoming a carbon neutral society is to reduce greenhouse gas (GHG) emissions and mitigate climate change, and the transition to a carbon neutral society is an important step in limiting rising temperatures.
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 environmentally responsible 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
In the fiscal year ended March 31, 2023, we began measuring greenhouse gas emissions in accordance with Science Based Targets (SBT), and in November 2022, we submitted a commitment letter to the Science Based Targets Initiative (SBTi) to set targets within two years.
While our short-term goal is to reduce emissions per unit of sales, we also plan to establish medium- and long-term targets in accordance with the SBT.
JES Group Greenhouse Gas Emissions for the Year Enedd March 31, 2023
The JES Group has calculated the group's total greenhouse gas emissions for the fiscal year ended March 31, 2023, 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 for the fiscal year ended March 31, 2023 were calculated to be 3,512 t-CO2, 1,648 t-CO2, and 54,239 t-CO2, respectively.
By setting the fiscal year ended March 31, 2023 as the base year and establishing future reduction targets, we hope to clarify our efforts to contribute to the environment.
Disclosure Based on TCFD
Climate-related Financial Disclosure Task Force
(Task Force on Climate-related Financial Disclosures)
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. |
Water Resources
We recognize that wasting and pollute water resources is a serious problem 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 minor.
Conservation of Biodiversity
We recognize the importance of protecting ecological diversity and limiting negative impacts on human sustainability.
Since the JES Group is not a manufacturer and does not have a manufacturing plant, it does not engage in deforestation or other activities that directly affect the ecosystem, and we recognize that the impact will be very minor. In addition, JIC/JIL, located in Wako, Saitama Prefecture, is engaged in tree-planting activities to contribute to the neighborhood.