Sustainability

Sustainability Road Map and Course of Action

Sustainability road map

17 GOALS TO TRANSFORM OUR WORLD

Aiming at the sustainable enhancement of corporate value, we have set
our goals for 2030 and 2050 and try to implement“discontinuous initiatives”

NO
POVERTYZERO
HUNGERGOOD HEALTH
AND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITY

CLEAN WATER
AND SANITATIONAFFORDABLE AND
CLEAN ENERGYDECENT WORK AND
ECONOMIC GROWTH

INDUSTRY, INNOVATION
AND INFRASTRUCTURE

REDUCEDINEQUALITIESSUSTAINABLE CITIESAND COMMUNITIESRESPONSIBLE
CONSUMPTION
AND PRODUCTION

CLIMATEACTIONLIFE
BELOW WATERPEACE, JUSTICEAND STRONG
INSTITUTIONSPARTNERSHIPFOR THE GOALS

by backcasting.

LIFEON LAND

“Sustainable Development Goals”
agreed by the world community
to be achieved by 2030

Scopes 1 and 2

CO2

Scopes 1 and 2
CO2 emissions● Formulation of Sustainability Policyemissions%40reduction(vs. 2017)● Support for Global Compact

Mutually cooperate with local communities in using ourstrong know-how of urban development and revitalizing
local communities to create sustainable communities● Ratio of women in management positions: 50％● Aim to extend the retirement age to 70● Men taking child care leave: 100％

● Creation of ESG Promotion Division● Development of Social Vision0● Disabled employees: 3.0%

● Identiﬁcation of materiality issues● Development of Eco Vision

2050

Zero

● Creation of Sustainability Committee● Turnover due to child/family care: 0％● Dissemination of Principles ofAction for Suppliers: 100％

● Formulation of JFR Principles of Action● Formulation of Principles of Action for Suppliers● Participation in Japan Climate Initiative● Support for WomenʼsEmpowerment Principles20182019● Scope 3 CO2 emissionsAim for 40％ reduction

2030(vs. 2017)

Creation of the Sustainability Committee
We created the Sustainability Committee to promote sustainability management in all companies in the Group in across-organizational manner by addressing ESG materiality issues. The Committee, as well as the Risk Management
Committee and Compliance Committee, is positioned as an advisory committee directly under the President andRepresentative Executive Officer. It meets biannually to develop action plans concerning the five materiality issues ofeach company in the Group so that they can be addressed by the entire Group and monitor the progress. The Board ofDirectors receives reports about what was discussed at the Sustainability Committee and discusses and supervises thelong-term goals on ESG issues and the progress of actions.

ESG course of action
The“Sustainability Policy,”which stipulates thegeneral policy of ESG initiatives, serves as guidelines
for all ESG activities. We developed separate
environmental and social visions (the Eco Vision andSocial Vision) in accordance with the“SustainabilityPolicy.” These visions as well as the Corporate

PermanentCorporate Credo
Basic Mission Statement

Future toaim forGroup Vision

ESG policy

Sustainability PolicyGovernance Guidelines guide our ESG activities. We
formulated the “JFR Principles of Action” and“Principles of Action for Suppliers”by translatingthese visions into a specific action level to implement
specific actions in accordance with them. We will
share these Principles with employees and suppliers
and promote ESG activities.
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Policies onenvironment,society andgovernance

JFR Way

Environment

Society

Governance

Eco Vision

Social VisionCorporate
Governance
Guidelines

Principles of Action for Suppliers/ JFR Principles of Action

Sustainability

JFR Principles of Action and Principles of Action for Suppliers

Management of the entire supply chain

The JFR Principles of Action set forth basic actions
that each individual of all officers and employees in
the Group should understand and follow on a daily
basis from a perspective of recognizing their roles andresponsibilities and acting with a high sense of ethics
to fulfill their social responsibilities toward therealization of the Corporate Credo and Visions.
The Principles of Action for Suppliers provide forthe matters to be complied with by the Group andPrinciples of Action for Suppliers
Suppliers
shall complywith them

The Group shall comply with themand asks suppliers to understandand comply with them.
Procurement policy
Human rights policy

Principles ofActionfor Suppliers

Anti-corruption policy

JFR conductpolicy

Occupational healthand safety policy

suppliers to meet their social responsibilities. By
complying with these Principles, the Group will fulfill

The Group
shall complywith themits social responsibilities along with suppliers and aim
to enhance corporate value.

JFR Principles of Action

Formulated the JFR Principles of Action and Principles of Action for Suppliers and four policies
JFR conduct policy and guidelines for action for suppliers
They are the most basic policies in the“Principlesof Action.”We will comply with and ask suppliers tocorruption or bribery and perform fair and highly transparent
corporate activities.
(4) Occupational health and safety policy

understand and cooperate in complying with five items

Based on the idea that occupational health and safety isincluding“fair business activities,”“consideration forthe most important foundation of business activities, we will

human rights and the work environment,”“consideration

work to improve employees’occupational health and safety

for the environment,”“consideration for the safety andlevels with top priority on ensuring health and safety.

security of products and services”and“contribution tolocal communities.”

Items of“JFR Principles of Action”and“Principles of Action for Suppliers”

Fair business activities(i) Legal compliance(ii) Prohibition of transactions with antisocial forces(iii) Prohibition of corruption, bribery and the like(iv) Prohibition of giving and accepting of improper benefits(v) Prohibition of anticompetitive acts(vi) Disclosure of information(vii) Prevention of leakage of personal information(viii) Protection of intellectual properties(ix) Promotion of responsible procurement

2

Consideration for humanrights and the workenvironment(i) Prohibition of discrimination(ii) Prohibition of harassment(iii) Provision of safe work environment(iv) Respect for freedom of association and collective bargaining(v) Prohibition of forced labor(vi) Prohibition of child labor(vii) Responsibility for local communities(viii) Disaster prevention measures

3

Consideration for theenvironment(i) Actions against global warming(ii) Sustainable use of resources(iii) Prevention of pollution(iv) Biodiversity(v) Elimination of chemicals

4

Consideration for thesafety and security ofproducts and services(i) Compliance with safety standards(ii) Prevention of accidents from happening or expanding(iii) Response to customers

5

Contribution to localcommunities(i) Activities to realize development of local communities(ii) Cooperation with local communities

Procurement policy, human rights policy, anti-corruption
policy and occupational health and safety policy(1) Procurement policy

1This policy is intended to ensure that the Group willprocure products and services, increase businesscompetitiveness and enhance corporate value torealize the optimal procurement for business.
(2) Human rights policy
This policy was developed so that we can have abetter understanding of various human rights issues
underlying all our business activities and takeappropriate actions.
(3) Anti-corruption policy
Recognizing corruption and bribery as a serious risk
factor that severely damages the trust of companies,
we will prevent the actions that may constituteInternal dissemination measures
We think it is essential for individual employees toSpecial issue ofinternal newsletterfeaturing ESG

understand the purpose and meaning of ESG initiatives
and address them as“persons involved”in order to promotethese initiatives. Therefore, the management teammembers of each operating company explain in person thebackground and importance of ESG initiatives and internal
newsletters are issued to raise awareness.
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