Jfe Holdings, Inc. · TSE:5411
Jfe — ESG Presentation (October 2020)
60 slides from Jfe's sustainability presentation, Oct 8, 2020
Slide 1: JFE Group ESG Briefing
Securities Code：5411 JFE Group ESG Briefing JFE Holdings, Inc. October 8, 2020 JFE Holdings, Inc.
Slide 2: Table of Contents
A Table of Contents １．JFE Group’s Mission and Future Vision ２．The Value of Steel ３．JFE Group’s Material CSR Issues ４．JFE Group’s Initiatives for the Environmental Issues ５．JFE Group’s Contribution to the Social Issues ６．JFE Group’s Governance ７．External Recognition in Recent Years This presentation
Slide 3: JFE Group's Mission and Future Vision
JFE Group’s Mission and Future Vision JFE Holdings, Inc. 3
Slide 4: JFE Group's Mission and Future Vision
JFE Group’s Mission and Future Vision Corporate Contributing to society with the world's most innovative Vision technology Underpinning all industries and the lives of people as well as contributing to the development of society and the resolution Mission of social issues through business centered o
Slide 5: Making Sustainable Efforts to Resolve Problems in Society through Business
Making Sustainable Efforts to Resolve Problems in Society through Business Providing solutions that meet the needs of society and customers by leveraging "collective strength of the group" cultivated in a wide range of business fields, including steel, engineering, and trading centered on the materi
Slide 6: The Value of Steel
The Value of Steel JFE Holdings, Inc. 6
Slide 7: Produce: High Economic Efficiency and Low Environmental Impact
Produce：High Economic Efficiency and Low Environmental Impact Extremely low environmental impact, Mass producti on at low cost when compared to other materials Steel is a material with rich reserves and a long ■GHG emissions at manufacturing stage* history of development. It can be stably mass produ
Slide 8: Use: Foundation for Life and Society (1)
Use：Foundation for Life and Society(1) The potential to grow on a global level Amid the economic growth in emerging countries, the long-term global demand for steel is expected to keep growing . 4000 【2100】 3.8 billion tons World crude steel production（Mt／Y） 3500 （estimate） 3000 【2050】 2.7 billion t
Slide 9: Use: Foundation for Life and Society (2)
Use：Foundation for Life and Society(2) Potential for evolution • S t e e l c a n b e e l o n g a te d t w o t o t h r e e t i m e s m o r e t h a n a l u m i n um a t t h e s a m e s t r e n g t h, a n d i s t h r e e t o f i v e t i m e s s t r o n g e r a t t h e s a m e e x t e nd e d ra t e . •
Slide 10: Recycle: Excellent Recyclability
Recycle： Excellent Recyclability Steel’s closed-loop recycling *1 • Steel is reborn over and over again into a high-quality, high-functional product thanks to its special characteristics, highly efficient separation and retrieval technologies. • From a sustainability perspective, closed-loop recycli
Slide 11: JFE Group's Material CSR Issues
JFE Group’s Material CSR Issues JFE Holdings, Inc. 11
Slide 12: JFE Group's Material CSR Issues
JFE Group’s Material CSR Issues Identified the following 13 issues in 5 areas as material CSR issues and promoting CSR initiatives Areas of Focus Material CSR issues Activity Provide quality products Stably supply products (customer satisfaction) Ensure quality Increased Pursue R&D operations corpor
Slide 13: JFE Group's CSR Management
JFE Group’s CSR Management • Group CSR Council monitors and supervises CSR initiatives of JFE Group • Material CSR issues are deliberated at Group Management Strategy Committee and reported to Board of Directors • Board of Directors monitors material CSR issues, including setting KPIs and status of
Slide 14: JFE Group's Initiatives for the Environmental Issues
JFE Group’s Initiatives for the Environmental Issues JFE Holdings, Inc. 14
Slide 15: Strengthen JFE Group's Initiatives for Climate Change Issues (1)
Strengthen JFE Group’s Initiatives for Climate Change Issues (1) Climate change issues are serious management issues from the viewpoint of business continuity for JFE Group that involves in steel manufacturing, which emits massive amounts of CO2. Urgent initiatives are necessary to respond to gl
Slide 16: Strengthen JFE Group's Initiatives for Climate Change Issues (2)
Strengthen JFE Group’s Initiatives for Climate Change Issues (2) JFE Group’s targets for reducing CO2 emissions Aim to reduce CO2 emission in FY2030 by 20% or more compared to FY2013 Toward • Launched a new project team headed by JFE Steel President to FY2030 start examining various measures to achi
Slide 17: Strengthen JFE Group's Initiatives for Climate Change Issues (3)
Strengthen JFE Group’s Initiatives for Climate Change Issues (3) Promote initiatives to achieve our target that is significantly exceeds Japan’s nationally determined contribution*1, NDC, of CO2 reduction in FY2030 (*1CO2 emissions from energy sources of industrial sector: approx. 6.5% reduction f
Slide 18: Strengthen JFE Group's Initiatives for Climate Change Issues (4)
Strengthen JFE Group’s Initiatives for Climate Change Issues (4) Toward 2030：Aim to reduce CO2 emission by 20% or more by improvement of the current steel making processes and expanding the application of Ferro-coke technology that is under development etc. Toward 2050：Promote Research & Development
Slide 19: Initiatives of Steel Business (1) Innovative Technology Ferro-coke
Initiatives of Steel Business (1) Innovative Technology Ferro-coke Promote the development of innovative technologies to achieve decarbonization ahead of the rest of the world Innovative Technology Ferro-coke Innovative material for a blast furnace produced from low-grade iron ore and coal Energ
Slide 20: Initiatives of Steel Business (2) Controlling Blast Furnace Operation with AI
Initiatives of Steel Business (2) Controlling Blast Furnace Operation with AI Introducing Data Science Technology at All Steelworks Blast Furnace Converting all blast furnaces in Japan to Cyber Physical System (CPS) Allowing to predict heat conditions and anomalies of permeability, which were di
Slide 21: Initiatives of Steel Business (3) CCS and CCU
Initiatives of Steel Business (3) CCS and CCU Super Innovative Technologies CCS and CCU (effective use and storage of CO2) Actively engaged in the development of new technologies to separate and capture CO2 from blast furnace gas in line with the COURSE50 project One of the first domestic steel
Slide 22: Initiatives of Steel Business (4) Contribute to Reduction through Products & Technology
Initiatives of Steel Business (4) Contribute to Reduction through Products & Technology Electrical Steel Sheets for JFE’s strengths Electric Vehicles Ultra-thin electrical steel sheets with top-class, worldwide competitiveness A comprehensive supply network covering major Japanese, US, and Europ
Slide 23: Initiatives of Engineering Business (1) Renewable Energy & Waste-to-Energy Power
Initiatives of Engineering Business (1) Renewable Energy & Waste-to-Energy Power Contributing to approx. 4 million tonnes of CO2 reduction per year through waste-to-energy and biomass power generation, and renewable energy business including solar and geothermal power etc. Expanding EPC (engineeri
Slide 24: Initiatives of Engineering Business (2) Recycling Business
Initiatives of Engineering Business (2) Recycling Business J&T Recycling is a subsidiary that operates recycling business with the biggest waste incineration capacity in the Tokyo metropolitan area Accelerating the development of new recycling business such as recycling of waste plastic bottles
Slide 25: Initiatives of Shoji (Trading) Business
Initiatives of Shoji (Trading) Business Globally providing environmentally friendly products including steel products, such as high tensile strength steel sheets and electrical steel sheets, that can contribute to solving climate change issues, and scraps Focusing on providing steel products and
Slide 26: Adapting to Climate Change Risks and Opportunities (1)
Adapting to Climate Change Risks and Opportunities (1) (Analysis and Evaluation in line with the TCFD recommendations) JFE Groups’ governance and business strategy is adaptive to climate change risks and opportunities, which are analyzed and evaluated in line with the TCFD recommendation Adaptation
Slide 27: Adapting to Climate Change Risks and Opportunities (2)
Adapting to Climate Change Risks and Opportunities (2) (Analysis and Evaluation in line with the TCFD recommendations) Identified 7 important factors in 2 scenarios. Evaluate climate-related risks and opportunities and use them to develop future business strategies ２℃ Scenario ４℃ Scenario Bold pol
Slide 28: Water-related Risks and Mitigation, Efficient Use of Water
Water-related Risks and Mitigation, Efficient Use of Water Water-related risks and mitigation • JFE Steel identifies and evaluates water-related risks such as drought and flooding based on damage reported in the past for each steelworks and on forecast data from the Meteorological Agency. It ident
Slide 29: JFE Group's Contribution to the Social Issues
JFE Group’s contribution to the Social Issues JFE Holdings, Inc. 29
Slide 30: Materials regarding Society
Materials regarding Society In order to survive and continue to create added value in an increasingly complex and diverse environment, it is necessary to recruit and nurture diverse and advanced human resources, promote initiatives to maximize the abilities of employees, promote initiatives to impro
Slide 31: Initiatives for Ensuring Safety
Initiatives for Ensuring Safety Prevent workplace accidents （Safety records Targets and results） • Although JFE’s lost-work injuries ratio is far below the average of manufacturing industry, it has not improved in recent years. • Workplace fatalities in FY2019: 4 in JFE Steel, 2 in JFE Engineering
Slide 32: Initiatives for Ensuring Safety (Steel Business)
Initiatives for Ensuring Safety（Steel Business） Ensuring employees’ safety by utilizing ICT （Safety support system） • Safety support system is useful for ensuring workers’ safety through ①audio and video communication among the group and ②sharing the workplace information such as workers’ location a
Slide 33: Diversity & Inclusion
Diversity & Inclusion Promote initiatives to maximize the abilities of employees with diverse backgrounds in terms of gender, nationality, values, or lifestyle. Supporting women in professional development Hiring diverse human resources • Each operating company has Diversity Promotion • Continuously
Slide 34: Human Resource Development to Enhance DX Strategy (Steel Business)
Human Resource Development to Enhance DX Strategy（Steel Business） ICT human resources involved in data processing and • The practical application of data science in （M unit） manufacturing and R&D requires expertise in fields data communication in Japan and USA 500 specific to the steel industry ICT
Slide 35: Measures against COVID-19 to Secure Employees' Health
Measures against COVID-19 to Secure Employees’ Health Measures to secure employees’ security and health Main measures to prevent infection Head office and branch office Steelworks and other works • Encourage working at home and commute to the office preventing the rush hour by installing core- • Pro
Slide 36: JFE Group's Governance
JFE Group’s Governance JFE Holdings, Inc. 36
Slide 37: Approach to Diversity in Board of Directors
Approach to Diversity in Board of Directors Improvement of Diversity in Board of Directors • 2007 Added two outside directors ＜Expansion and Diversity in Board of Directors＞ 1. Added the presidents of JFE Engineering and JFE Shoji • 2017 Reorganized the Board of Directors to the Board of Directors
Slide 38: Analysis and Evaluation of Effectiveness in Board of Directors
Analysis and Evaluation of Effectiveness in Board of Directors Analysis and Evaluation by the Third-party Organization 1. Process for analysis • A third-party organization reviewed and conducted a survey, which in-house group had conducted, and also helped the analysis of the results. • Main content
Slide 39: Policy on Strategic Holdings of Listed Stocks
Policy on Strategic Holdings of Listed Stocks ◆Policy on strategic holdings of listed stocks JFE Holdings, Inc. Basic Policy on Corporate Governance （updated in June, 2020） • JFE Steel Corporation, JFE Engineering Corporation and JFE Shoji Corporation, do not hold listed stocks as strategic holdings
Slide 40: External Recognition in Recent Years
External Recognition in Recent Years JFE Holdings, Inc. 40
Slide 41: External Recognition and External Awards
External Recognition and External Awards Name of SRI* Evaluation/ selection Name of SRI* Evaluation/ selection Index etc. period Index etc. period Supplier Quality Excellence Process Gold certification plaque FTSE4Good SQEP As of Index Series, July （Supplier Quality 2017 ~2020 Excellence FTSE Blosso
Slide 42: Appendix
Appendix JFE Holdings, Inc. 42
Slide 43: JFE Group's Corporate Vision and Standards of Conduct
JFE Group’s Corporate Vision and Standards of Conduct Contribute to the sustainable development of society by addressing global issues, including the resolution of climate change issues, with the world’s most innovative technology Corporate Vision Contributing to society with the world's most innova
Slide 44: JFE Group's Environmental Management
JFE Group’s Environmental Management Realize “harmony with the global environment” and “improvement of the global environment” in corporate activities The JFE Group puts top priority on protecting and enhancing the global Environmental Philosophy environment to maintain its business in harmony with
Slide 45: JFE Group's Basic Policy on Human Resource Management
JFE Group’s Basic Policy on Human Resource Management （Established in April, 2015） ① Respect human rights and facilitate fair management of human resources The Group manages human resources fairly by respecting the human rights of all employees and nurturing employees who embrace the Group’s corpora
Slide 46: SDGs Highly Relevant to Material CSR Issues
SGDs Highly Relevant to Material CSR Issues Material CSR Issues Relevant SDGs Stably supply products Ensure quality Pursue R&D operations Respond to customer needs Develop and provide environmentally friendly products Mitigate climate change Protect the global atmosphere Pursue resource recycling Pr
Slide 47: KPIs for Material CSR Issues (1)
KPIs for Material CSR Issues (1) Updated KPIs of the issues below in this Fiscal Year.（Only KPIs updated are extracted.） Material Operating KPIs Results in FY2019 Evaluation KPIs for FY2020 CSR Issues Company (Parts colored red are updated from FY2019. ） 1.Stable products Capital investment of suppl
Slide 48: KPIs for Material CSR Issues (2)
KPIs for Material CSR Issues (2) KPIs for FY2020 Material CSR KPIs Operating Results in FY2019 Evaluation (Parts colored red are updated from Issues Company FY2019. ） In FY2019, Completed almost all Capital investment will be made Implementation of the the approval of the investment for to improve t
Slide 49: KPIs for Material CSR Issues (3)
KPIs for Material CSR Issues (3) Material CSR KPIs for FY2020 KPIs Operating Results in FY2019 Evaluation Issues Company (Parts colored red are updated from FY2019. ） • Pursue strategic R&D • By developing DS technology, establish JDXC Conduct R&D Commercialize new products as planed in FY2020, intr
Slide 50: KPIs for Material CSR Issues (4)
KPIs for Material CSR Issues (4) Material KPIs for FY2020 KPIs Operating CSR Company Results in FY2019 Evaluation (Parts colored red are updated from FY2019. ） Issues • The target for fiscal 2030 is to reduce CO₂ emissions by 20% or more from the fiscal 2013 level. 1.CO₂ reduction target 1.Progressi
Slide 51: KPIs for Material CSR Issues (5)
KPIs for Material CSR Issues (5) Material KPIs for FY2020 KPIs Operating CSR Company Results in FY2019 Evaluation (Parts colored red are updated from FY2019. ） Issues 1.Continue to work on keeping NOx and SOx Protect the global atmosphere emissions at low levels 2.VOC emissions：maintain 1.Continue t
Slide 52: KPIs for Material CSR Issues (6)
KPIs for Material CSR Issues (6) Material Results in KPIs for FY2020 KPIs Operating CSR Evaluation Company FY2019 (Parts colored red are updated from FY2019. ） Issues Group- Workplace fatalities: zero occurrences wide Lost-work Injuries Ratio: ~0.10 Workplace ＜Crucial measures＞ S fatalities: 1. Furt
Slide 53: KPIs for Material CSR Issues (7)
KPIs for Material CSR Issues (7) Material Operating Results in KPIs for FY2020 CSR KPIs Evaluation Issues Company FY2019 (Parts colored red are updated from FY2019. ） Actual rate of Provision rate of Provision rate of health health Ensure the health of employees and their families ST health guidance
Slide 54: KPIs for Material CSR Issues (8)
KPIs for Material CSR Issues (8) Material Operating CSR Company KPIs Results in FY2019 Evaluation KPIs for FY2020 (Parts colored red are updated from FY2019. ） Issues S Actual training program hours： S Training program hours per person: more T 1,197,045Hr T than 40Hr/year Human resource development
Slide 55: Steel's LCA (Life Cycle Assessment)
Steel’s LCA（Life Cycle Assessment） S t e e l e s t a b l i s h e s a h i g h l y s o p h i s t i c a t e d v a l u e c h a i n t h a n k s t o i t s e x c e l l e n t r e c y c l a b i l i t y. When evaluating the entire life cycle including recycling by using Life Cycle Assessment, the environmenta
Slide 56: Initiatives to Preserve Biodiversity
Initiatives to Preserve Biodiversity Minimize the ecological impact from business activities by monitoring biodiversity around the steelworks and surrounding areas Promote initiatives outside of business such as developing iron and steelmaking slag products that can help restore the marine envir
Slide 57: External Recognition
External Recognition Name of SRI* Evaluation/ selection Index etc. Description of selection criteria, etc. period JFE Holdings has, for the first time, been selected as a constituent in the FTSE4Good Index Series1, a series of prominent global investment index focused on Environmental, Social, and G
Slide 58: External Recognition
External Recognition Name of SRI* Evaluation/ selection Description of selection criteria, etc. Index etc. period This is the first financing system in the world to incorporate special environmental ratings, which uses a screening system developed by DBJ the Development Bank of Japan (DBJ) to evalua
Slide 59: External Recognition and External Awards
External Recognition and External Awards Name of SRI* Evaluation/ selection Description of selection criteria, etc. Index etc. period JFE Holdings was selected for inclusion in the Competitive IT Strategy Company Stock Selection for five consecutive years by the Ministry of Economy, Trade and Indust
Slide 60: Copyright © 2020 JFE Holdings, Inc. All Rights Reserved
Copyright © 2020 JFE Holdings, Inc. All Rights Reserved JFE Holdings, Inc. 60