POLICY

Our Approach to Sustainability

We Practice Sustainability Management to Increase Economic, Social and Environmental Value

The future is becoming increasingly difficult to predict in an increasingly complex macro environment, with a declining birthrate, an ageing population, increasing use of digital technologies and a worsening market environment due to climate change. In order for the JES Group to develop sustainability in an uncertain and uncertain society, we have set "quality and safety" in the elevator maintenance business and "occupational safety and employee engagement" supporting it as materiality.
Today, companies are not valued solely on the basis of economic growth, and it is difficult for them to continue their business in this society. Therefore, in its mid-term management plan VISION2027, the JES Group stipulated that it will promote activities aimed at solving social issues by incorporating ESG perspectives into its business, rather than just economic goals.
Social and environmental issues also affect our business. Our company operates mainly in Japan. In Japan, we are facing a declining workforce due to the falling birthrate and aging population, and we recognize that this is an important issue in securing the human resources that will support our business growth. Given our market share in Japan and our history of growth, there is still plenty of room for expansion, but we recognize that acquiring and securing the human resources needed to do so is an issue that must be given top priority. In order to attract and retain human resources, it is important that the JES Group is an environment in which people want to work and are comfortable working, and it is necessary to have an advantage over other companies.
More than ever, the key point is to recognize the diversity of human resources in society and how we can appeal to the appeal of the JES Group in that society.
Environmental challenges include the impact of extreme weather events due to climate change. In elevator maintenance, typhoons and other extreme weather events are highly likely to cause failures, creating a risk of unavailability for users. We are checking elevator operating status and working to restore operations as appropriate, but the risk of impact on users increases as the severity and frequency of extreme weather events intensifies, which is expected to interfere with maintenance.
We recognize that environmental issues caused by climate change will affect the JES Group's business, and we are determined to contribute as much as we can as a company. The JES Group has calculated the greenhouse gas emissions of the entire group for the fiscal year ended March 31, 2023. Since we do not manufacture our own elevators, our emissions are at a lower level than those of manufacturers and other companies that have their own factories. However, as mentioned above, we consider environmental issues caused by climate change as one of our management issues, and we set a goal of reducing greenhouse gas emissions.
As a short-term target, we aim to reduce net sales per unit of production compared to the previous year. We will also establish greenhouse gas emission reduction targets toward our long-term goal of achieving a carbon-neutral society by 2050.

Basic Sustainability Policy

Based on our corporate philosophy of "Safety Above Anything Else," "Never Cutting Corners," and "Building on Trust," the JES Group has identified the two materialities as "Quality and Safety" and "Occupational Safety and Employee Engagement," and will work to realize a sustainable society, aiming to be a company that is trusted and needed by all of our stakeholders.
We will fulfill the resolution of social issues through our corporate and business activities, and also contribute to the achievement of the SDGs goals related to each materiality.

Management Structure

Against this backdrop, we have established the Sustainability Com- mittee to promote sustainability initiatives linked to the management plan by resolving materiality issues related to sustainability and identi- fying opportunities and risks. The Committee was chaired by the Direc- tor Deputy President and Executive Officer CFO, and its members consisted of those deemed appropriate in light of the Committee's purpose and based on their duties. We will check for consistency with management and operations, as well as manage and oversee mea- sures in conjunction with environmental, social, governance, and other sustainability issues.

Materiality

(i) Quality and Safety

We consider "maintaining quality" and "providing security" as our major social responsibility, and aim to contribute to society by providing high quality and safe services that satisfy our customers.

(ii) Work Safety and Employee Engagement

We believe that the most important foundation supporting our business is our human resources, and by ensuring the safety of our employees and by creating an environment in which each and every employee can perform his or her duties with ease and satisfaction, we will lead to the sustainable development of the JES Group.

Management Structure

Recently, interest in sustainability as a factor leading to sustainable corporate growth and enhancement of corporate value over the medium to long term has been growing, and companies are increasingly being asked to proactively address issues related to sustainability and disclose such information.
Against this backdrop, we have established the Sustainability Committee to promote sustainability initiatives linked to the management plan by resolving materiality issues related to sustainability and identifying opportunities and risks. The Committee was chaired by the Director Deputy President and Executive Officer CFO, and its members consisted of those deemed appropriate in light of the Committee's purpose and based on their duties. We will check for consistency with management and operations, as well as manage and oversee measures in conjunction with environmental, social, governance, and other sustainability issues.
The committee mainly deliberates on the formulation of the JES Group's sustainability strategies and plans, identification and assessment of risks, consideration of countermeasures and management of progress, setting of indicators to be used as targets, etc., as well as monitoring the status of initiatives and making reports and proposals to the Board of Directors.