Securities Code：5411

JFE Group ESG Briefing
JFE Holdings, Inc.
October 8, 2020
JFE Holdings, Inc.

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 material is for information and discussion purpose only.
Any statements in the presentation which are not historical facts are future projections based on certain assumptions andcurrently available information. Please note that actual performance may vary significantly due to various factors.

JFE Holdings, Inc.

2

JFE Group’s Mission
and Future Vision

JFE Holdings, Inc.

3

JFE Group’s Mission and Future VisionCorporate
VisionContributing to society with the world's most innovativetechnology

Mission

Underpinning all industries and the lives of people as well as
contributing to the development of society and the resolutionof social issues through business centered on the material of“STEEL”

Business Environment
International
economic fluctuation
Trend of worldwide
protectionism

Spread of COVID-19

Declining birth rate andaging population in Japan

Increasing crisis awareness to the global
environment

etc.

Adapting flexibly and appropriately to majorchanges in the business environment
Creating economic value through sustainable growth“Economic Sustainability”

FutureVision

JFE Holdings, Inc.

Making sustainable efforts to resolve social issues through business“Environmental and Social Sustainability”

Robust corporate group to deliver value over the long termwith the two types of sustainability
4

Making Sustainable Efforts to Resolve Problems in Society throughBusiness
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 material of “STEEL”

Steel sheets forautomobiles••

Makingsustainable
efforts toresolve social
issues•••••

JFE Holdings, Inc.

Bridges and steel
for bridges

Steel sheets fortableware andkitchenware

Biomass power
Urban
generation
facilities
environmental
plantsRealizing comfortable lifestyles through supply of automobiles, ships, andhousehold appliances with advanced function
Constructing strong infrastructure through development in the civilengineering and construction fields
Ensuring stable energy supply and spreading the use of renewable energy
toward sustainable society
Developing and supplying environmentally friendly products and promoting
resource recycling
Contributing to solving global climate change through efforts to reduce CO₂Emissions
Developing human resources and creating work environment where diverse
human resources can maximize their abilities
Creating prosperous coexistence with local community etc.
5The Value of SteelJFE Holdings, Inc.

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Produce：High Economic Efficiency and Low Environmental Impact
Mass producti on at low cost
Steel is a material with rich reserves and a long
history of development. It can be stably mass
produced at a reasonable price, contributing
to the sustainable development of society.

■GHG emissions at manufacturing stage*Low environmental
impact1

Steel
Carbon Fiber
Reinforced Plastic■Price comparison
Reasonably
pricedExtremely low environmental impact,when compared to other materials

11
５～9

Aluminum

20~50

0

5

10

15

* Comparison with other materials‘ GHG emissions per unit weight, with steel as 1

2~10

Japan’s steel industry keeps the top energy
efficiency in the world■The world’s energy efficiency quotient,with Japan as 100
150

The best energy efficiency in the world

125
100

1
Steel

75

Carbon fiberInternal investigation
Comparisons with other materials’ prices per unit weight, with steel as 1

JFE Holdings, Inc.

Aluminum

50

100

Japan

103

South

109

Germany

116

China

123

India

130

USA

Korea
Source: 2015 Research Institute of Innovative Technology for the Earth (RITE)

7

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 .

【2100】
3.8 billion tons

World crude steel production（Mt／Y）

4000（estimate）

3500
3000

【2018】
1.8 billion tons

2500

Others
その他

Rapid growth

1500
1000

Post-war recovery

Japan
日本

Stagnation

USA
米国
China
中国

500

▲
2050

▲
2100

454749515355575961636567697173757779818385878991939597990103050709111315171921232527293133353739414345474950▲
1945
JFE Holdings, Inc.

（estimate）（actual）

2000

0【2050】
2.7 billion tons

▲
1980

▲
2000

▲
2018

（Source: The Japan Iron and Steel Federation）

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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 .
• S t e e l s t i l l h a s c o n s i d e ra b l e p o t e n t i a l f o r e v o l ut i o n . E m e r g i ng n e e d s o f
s o c i e t y w i l l m a k e s t e e l e v o l ve , w h i c h c o n t r i b u t e s t o a p r o d u c t i ve f u t u r e .
(%)

Elongation

60

Steel

Elongates40

2 to 3 times
3 to 5 times
stronger

20

Carbon fiber

Aluminum alloy
0

JFE Holdings, Inc.

400

800
Tensile strength (MPa)

1,200

1,600
9

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 recycling is superior to open-loop recycling*2
because of reducing additional consumption of natural resources, emissions of environmental
substances, and waste.
 Using Life Cycle Assessment to evaluate the entire life cycle, materials with excellent
recyclability have less environmental impact such as global warming.
*1 infinite recycling which maintains the products’ property*2 material recycling which deteriorates or changes the material property or uses heats by incineration. finite recycling

Magnetic collection
Collect reusable steel
from steel scraps

Steel Scrap
The end of product life span
JFE Holdings, Inc.

Brand-new products
Produce semi-final andfinal products

New
final products
Use final products inthe society

10JFE Group’s
Material CSR Issues

JFE Holdings, Inc.

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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
Activity

Provide quality products(customer satisfaction)

Material CSR issues
Stably supply products
Ensure quality
Pursue R&D operations
Respond to customer needs

Protect the global
environment

Develop and provide environmentallyfriendly products

Increased
corporate
value andsustainablegrowth of the
JFE Group

Mitigate climate change
Protect the global atmosphere
Pursue resource recycling

Basis of activity

Ensure occupational safety
and healthPrevent workplace accidents

Recruit and nurture diverse
human resources

Pursue diversity and inclusion

Thoroughly enforce
compliance

Ensure adherence to Corporate EthicalStandards and compliance

Ensure the health of employees and theirfamilies

Goals

Help realize
sustainable
society

Strengthen human resource development
programs

Corporate Governance (Ensure Fairness, Objectivity and Transparency)
Respect and Maintain Awareness of Human Rights
JFE Holdings, Inc.

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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 andreported to Board of Directors

Board of Directors monitors material CSR issues, including setting KPIs and status ofeach initiatives, through discussions

CSR Structure

Issues Discussed at Group CSR Council

Board of Directors
MonitorReport on CSR/ESG-relatedmaterial issues

CEO(President)● Group-wide deliberations (including instructions andguidance on important issues)Group Management
Strategy Committee●Monitoring penetration of policies within Group●Monitoring deployment of policies throughout Group

Group CSR Council
JFE Group Compliance Committee
JFE Group Environmental Committee
JFE Group Internal Control Committee

JFE Engineering CSR System
JFE Shoji CSR Council
JFE Holdings, Inc.

Affiliates
under
operatingcompanies

JFE Steel CSR Council

Compliance, environment, climate change, internal
controls, personnel/labor, safety, disaster prevention,social contribution, information security etc.

Topics Discussed at the Board Meeting• CSR・ESG initiatives• Set key performance indicators (KPIs) for material
CSR issues and the status of each initiative• Climate change initiative• Safety initiatives of each company• Operational status of the whistleblowing system• Publishing the CSR report and integrated report13

JFE Group’s Initiatives
for the Environmental Issues

JFE Holdings, Inc.

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Strengthen JFE Group’s Initiatives for Climate Change Issues (1) Climate change issues are serious management issues from theviewpoint of business continuity for JFE Group that involves in steel
manufacturing, which emits massive amounts of CO2.
 Urgent initiatives are necessary to respond to global climate change
issues such as the emergence of extreme weather

JFE Group decided to position 2020 as a turning point for the promotion of
initiatives for climate change, and set targets for reducing CO2 emissions

 Accelerate initiatives for climate change issues such as Research &Development of new technology in line with the corporate vision “Contributing
to society with the world's most innovative technology”
 Promote initiatives to enhance corporate value not only from the perspective of
business risks but also business opportunities that contribute to therealization of sustainable society
JFE Holdings, Inc.

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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 morecompared to FY2013
TowardFY2030• Launched a new project team headed by JFE Steel President tostart examining various measures to achieve our targets.
• Continue to share the Japan Iron and Steel Federation’s
Commitment to a Low-carbon Society to play an active role.

Toward2050

JFE Holdings, Inc.

In line with the social transformation to establish carbonfree infrastructure, strive to be carbon neutral within
the JFE Group as soon as possible after 2050
• Carry out Research & Development to be ready to show alineup of carbon neutral technologies in the businessprocesses well ahead of 2050

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Strengthen JFE Group’s Initiatives for Climate Change Issues (3)FY2030TargetPromote initiatives to achieve our target that is significantly exceeds Japan’s nationallydetermined contribution*1, NDC, of CO2 reduction in FY2030 (*1CO2 emissions from energy

sources of industrial sector: approx. 6.5% reduction from FY2013)



The impact of the structural reforms*2 is incorporated in the target, but it’s unable toachieve the target only by this impact. Maximize the use of existing and many
developing technologies to realize significant CO2 emissions reduction（Super innovativetechnologies including CCS etc. are out of scope of the FY2030 target）*2 Upstream process and hot rolling equipment in the East Japan Works (Keihin) will be shut down by FY2023 or thereabouts.

Released on March 27, 2020 “JFE Steel to Optimize Domestic Production Operations through Structural Reforms”

Reduce 20% or more

CO2 emissions from energy source of JFE Steel (million t-CO2)

(FY)

58.3

58.1

1990

2013

55.5

55.7

56.6

2015

2016

2017

53.5

54.2

2018

2019

from FY2013（reduce
11.6million t-CO2 or more）

2030※1 The CO2 coefficient for electricity purchased in FY2019 is that of FY2018 on the Japan Iron and Steel Federation’s Commitment to a
Low Carbon Society※2 FY2018 figure is recalculated based on the CO2 coefficient for electricity purchased in FY2018 on the Japan Iron and SteelFederation’s Commitment to a Low Carbon Society※3 Figures from FY2013 to FY2016 are added CO2 emissions of Sendai Works of JFE Bars and Shapes

JFE Holdings, Inc.

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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 underdevelopment etc.
Toward 2050：Promote Research & Development of various innovative technologies to implement
as soon as possible in line with the social transformation to establish carbon-free infrastructure,including low-cost larger quantity supply of hydrogen
CO2 reduction
throughproducts &technology

Eco products
Hard carbon for next-generation lithium-ion battery: JFE Chemical
Renewable energy power generation: JFE Engineering
Utilization of waste and biomass: JFE Engineering

CO2 reduction in
the current steel
making processes

AI and Data Science application technology
Scrap use technology
Energy efficiency improvement of facilities Implementation

Innovativetechnologies
Superinnovativetechnologies

JFE Group’s
CO2 reduction
targets

JFE Holdings, Inc.

Ferro-coke

R&D

Implementation

COURSE50

R&D

Implementation

Super COURSE50

R&D

CCS (Storage of CO2) /CCU (Utilization of CO2)

Implementation
Implementation

R&D

Leading
research

Hydrogen reduction iron making

2020

2030
Aim to reduce by 20%
or more from FY2013

Medium-scale pilot
ferro-coke plant

R&D

Implementation

2050

2100

Strive to realize carbon neutrality
Premisesas soon as possible after 2050
for implementationsocial infrastructure development
including low-cost large quantity supply of hydrogen18

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
 Energy saving technology that significantly reduces the amount of use of cokes in blast
furnace by catalytic effect of metallic iron in Ferro-coke Scheduled to start test operation of a medium-scale pilot Ferro-coke plant in the WestJapan Works (Fukuyama) in October after completing construction, which produces 300t/dof Ferro-coke Pursue 10% reductions of energy consumptions and CO2 emissions of iron-making
process and expand the use of low-rank materials■Ferro-coke production process■Ferro-coke and crosssection of particle■Medium-scale pilot plant
grinderand dryer

drydistillation

blending
molding

Lowgrade ironone

Nongrade coalcoke

JFE Holdings, Inc.

metalliciron

19

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 difficult to predict■Blast Furnace CPS Concept
Grasp furnace conditions and predict anomalies

Actual Blast
Furnace

Sensor Information and
Manufacturing Information

Virtual Blast
Furnace

Raw materials

Realize stable and efficient operation
Contribute to saving energy consumption of blast furnace

Reduce CO2 emissions
from Steelworks
Cyber Physical System (CPS)• Collect enormous sensor data from physical space such as
actual manufacturing processes and products into virtual(cyber) space• Feed back results of analysis by various methods tophysical space in real time
• Contribute to improving productivity and stability byfeeding back internal conditions of facilities that are unable
to be observed in reality and future predictions
JFE Holdings, Inc.

Disturbance

Database

Sensors
Data science(big data analysis)
Utility
Mathematical-physical model
Chemical-thermodynamic
model
Statistical modelVideo
Operations
Manufacturingconditions

Estimation of real-time conditions
Model prediction control

Feed Back and Feed Forward

20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 manufacturers to initiate R&D into the effective use of
CO2 separated and captured from blast furnace gas as valuable resource.
 Promote R&D into CCU as a participating member of NEDO project*1
 Initiate together with RITE*2 to develop innovative technologies forsynthesizing methanol (CH3OH) from CO2 inblast furnace gas
Apply the expertise in CO2 separation andrecovery technologies acquired through the
COURSE50 project to the development of CCU*1 New Energy and Industrial Technology Development
Organization“Development of next-generation thermal power
generation technologies / Development of basic
technologies for next-generation thermal power
generation / Development of CO2 utilization technology
project”*2 Research Institute of Innovative Technology for the EarthCCS：Carbon Capture and Storage

JFE Holdings, Inc.

CCU：Carbon Capture & Utilization

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Initiatives of Steel Business (4) Contribute to Reduction through Products & Technology

Electrical Steel Sheets forElectric Vehicles

JFE’s strengths

Ultra-thin electrical steel sheets with top-class,worldwide competitiveness

A comprehensive supply network covering major
Japanese, US, and European automobile and parts
manufacturers

Used by major automobile manufacturers as a corematerial for motors of electric vehicles

 Contribute to making motors for electricvehicle more compact and efficient withproduct lineup that achieves a fine balance between
higher magnetic flux density and lower iron loss

High tensile strength steel sheetsContribute to achieving weight reduction of
automobiles though leveraging accurate materials
designs and application technology solutions



1470MPa-grade cold-rolled high tensile strength
steel has the world’s highest tensile strength forautomobile parts formed through cold formingEnable significant weight reduction in

automobile frames⇒ Bring huge reduction in CO2 emission
during driving

JFE Holdings, Inc.

Structure design

Topology optimization
Multi-material

Performance
evaluation

Optimal materials

Collision simulator
Rigidity/fatigue test

JEFORMATM
1470MPa high tensile
strength steel

Welding technology

Forming technology

New spot welding
Laser welding

High tensile strength steel
forming technology, SBinhibition, pre-forming

22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 renewableenergy business including solar and geothermal power etc.


Expanding EPC (engineering, procurement,
construction) and O&M (operation andmaintenance) businesses in renewable energy
power generation including biomass, geothermal,
and solar powerUrban Energy, a subsidiary, introduced energy plans
with 100% renewable energy

Promoting local production and consumption ofelectricity mainly of renewable energy throughregional electricity retail companies in partnership withlocal municipal governments

Contribution to CO2 emission reductions by
renewable energy plants (FY2019)
Other (biogas,
geothermal, solar
power, wind) 0.48

Contribution
to CO2 emission
reductions
4.13 million
t-CO2/year

Biomass power
generation: 2.12

Waste power
generation: 1.53

Contributing to stable operations of waste-to-power plants and increase inpower generation by leveraging advanced technologies


Established the Global Remote Center that provides high value-added
services by leveraging AI and Big Data, including remote plant monitoring,
operational support and maintenanceIntroducing the world first automated incinerator operation system
for waste-to-power generation field

JFE Holdings, Inc.

Data
Analysis

23

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

Constructing a Japan’s biggest factory to produce recycled material from waste plastic bottle, which
contributes to Bottle-to-Bottle (BtoB) shift
Kyoei J&T RecyclingEstablished a JV between J&T Recycling and Kyoei Industry



Produce transparent raw materials for plastic bottles fromwaste plastic bottles



Contribute to reduce CO2 emissions andsave natural resource consumption throughsupplying raw materials to produce recycledplastic bottles

Produce high quality
pellets from used plastic
bottles equivalent tovirgin resin

BtoB
materials

Consumers
conventional

Fiber and sheet
products etc.

Recycle into plastic
bottles for beverages

Participating in R Plus Japan, a waste plastic recycling business

Established a JV with a group of 12 companies
across industries

Existing
Technology

Challenge the development of efficient
recycling technology with low
environmental impact by utilizing
the technology of ANELLOTECH in US（Date of commencement of business: June 2020,
Aiming to commercialize the recycling technology by 2027）

JFE Holdings, Inc.

Mixed
plastic
waste
Newtechnology

Liquefaction(thermalpyrolysis)

Mixedplastic
waste

Conversion
into basic
chemicals

Recycle backinto plastic

Catalytic fast Recycle backpyrolysis
into plastic

24

Initiatives of Shoji (Trading) Business Globally providing environmentally friendly products including steel products, such as hightensile strength steel sheets and electrical steel sheets, that can contribute to solving climatechange issues, and scraps
 Focusing on providing steel products and biomass fuel for power generation in renewableenergy field

Supply of biomass fuelSupply of environmentally friendly products

Under a global four pillar system (Japan, US,
China and ASEAN), achieving stable supplyof steel products including electrical steel
sheets, which contribute to improving
efficiency of motors and transformers, notonly as materials but also processed
products

Contributing to promotion of renewableenergy through stable biomass fuelsupplySupplying fuel to biomass power generationcompanies, including JFE Engineering, andcontributing to realizing sustainable society
by JFE Group

Global Four Pillar System
Trading
Sales &
Procurement

X

Business
Processing &Distribution
UnitedStates

China

ASEAN
JFE Holdings, Inc.

Japan

Motor core
manufacturing

Sales of steel products
in renewable energy field

Launched Renewable Energy Steel ProductsTeam in July 2020

Globally expand steel business in renewableenergy field, and consider to formulate a
supply chain model for material processing
to meet specific customer needs
25

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 andopportunities, which are analyzed and evaluated in line with the TCFD recommendation
Adaptation for the four core elements proposed by TCFD•
Governance•••In the 6th medium-term business plan, contribution to “realization of a sustainable society" ispositioned as an important management issue, and promote “continuous efforts to address ESG
issues” as a major initiative•

Identify key factors that impact JFE’s business and evaluate their risks and opportunities throughscenario analysis•

Corporate officers in charge strive to recognize risks, which are collected and managed through theGroup CSR Council•

Measures to mitigate frequency and impact of risks are deliberated and decided•

Promoting initiatives to achieve targets in Low Carbon Society of the Japan Iron and SteelFederation•

Played a pivotal role in the development of the Japan Iron and Steel Federation’s long term
vision for climate change mitigation•

Set JFE Group’s own targets for CO2 emissions reduction, and promote initiatives for achieving
them

Strategy

Riskmanagement

Indices &targets

JFE Holdings, Inc.

Identify “mitigate climate change” as a material CSR issue, and promote efficient PDCA cycle andeffective CSR management
The Group Environmental Committee discusses measures, and guides and supervises each
initiative
The Group Management Strategy Committee deliberates material issues, and the Board of Directors
receives reports on and supervises them26

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Outline of
Scenario

Bold policies and technological reforms will hold theincrease in temperature below 2°C
Societal changes associated with the transition to
decarbonization will affect business
Important Factor
Opportunities

1) Decarbonization in steel
production processes

２℃
Scenario2) Increase in demand forthe effective use of steel
scrapsOpportunities

Even with the new policies in various countries
stipulated, temperature will rise up to 4°C
 Climate changes such as rising temperatures willaffect business
Evaluation Results•Develop and put into practical use innovative technologies in addition to existing
ones

•
•

Investment on implementing innovative technologies is feasible
The Group’s cost competitiveness will be maintained through implementation ofa uniform carbon price across all countries•

Converter furnace steelmaking is increasing due to constraint on the supply ofscra
Expansion in electric furnace steelmaking and electric furnace engineering, scrap
logistics business•

Opportunities

•
•
•
•

Increase in demand for electrical steel sheets due to increase in electric vehicles
Increase in demand for special steel due to increased car sales
Increase in demand for high tensile strength automotive steel sheet
Recyclability of steel is gaining attention again

Risks

•

Effect of trend to use multi-materials is limited4) Increase in demand forsolutions promoting
decarbonization

Opportunities

•
•
•
•

Entire construction and operation of renewable energy plants
Entire construction and operation of incinerators and plastic recycling plants
Entire construction of CCU/CCS facilities
Overseas expansion of low-carbon business5) Unstable raw material
procurement

Risks

•

Ongoing specific measures:- Diversify supply sources- Increase plant capacity

6) Damages to business
bases

Risks

•
•

Measures against flood and drought are already in progress
Impact of flooding caused by sea level rise can be addressed with current
countermeasures7) National resilience

Opportunities•

Reinforce infrastructure with steel and other relevant product3) Change in demand forsteel for automobiles andothers４℃
Scenario

Risks

４℃ Scenario

JFE Holdings, Inc.

27

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 andflooding based on damage reported in the past for each steelworks and on
forecast data from the Meteorological Agency.
 It identifies steelworks having risks that are affected by climate change andmitigates their risks by creating a BCP.

•

Cycle use of water
JFE Steel’s target water recycling rate:
90% or more
• Improve the recycling rate by adopting
purification processes such as biologicaland chemical wastewater treatments• Have been successfully achieving the
Evaporation
targetloss 2.9％

The target water recycling Waste water
3.8％
rate (90% or more) at JFE
FY2019steel, which is extremely
Total waterhigh considering theconsumption
amount evaporated when
3,323 million tons
water is used, is achieved
Water resources
in FY2019.
recycled 93.4％

JFE Holdings, Inc.

(Mｔ)

230

93.7

93.9

93.5
220

220
210

93.7

212

208

93.5
218

(％)

93.4
221

80
60

203

200

40
Industrial water accepted（non-consolidated）

190
180

100

Targetover 90%

Industrial water circulated*（non-consolidated）

2014

2015

2016

2017

2018

2019

* Industrial water circulated (%)=（Total amount-industrial water accepted)/total amount×100

20
0
28

JFE Group’s contribution to
the Social Issues

JFE Holdings, Inc.

29

Materials regarding Society
In order to survive and continue to create added value in an increasingly complex anddiverse environment, it is necessary to recruit and nurture diverse and advanced
human resources, promote initiatives to maximize the abilities of employees,
promote initiatives to improve safety, and ensure the health of employees and theirfamilies.

Based on JFE Group’s Basic Policy on Human Resource Management,
JFE Group develops businesses that grow together with its employees.

Material CSR Issues regarding “Social”
Areas of Focus

Activity

Material CSR Issues

Ensure occupational safety Prevent workplace accidents
and health
Ensure the health of employees
and their families

Recruit and nurture
diverse human resources

JFE Holdings, Inc.

Pursue diversity and inclusion
Strengthen human resource
development programs
30

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 Eradicate workplace fatalities and continue to implement measures to improve safety records

Lost-work Injuries Ratio
1.06

1.20

1.16

FY

2015

Groupwide

0.21
0.19
2016

0.17

2017

Workplace fatalities: zero occurrences
Lost-work injuries ratio：~0.10

0.82

ST
0.45

0.71

0.15

1.20

1.02

JFE Steel
JFE Engineering
Manufacturing industry average

0.28

KPIs for FY2020（excerpt）

EN

0.17
0.28
2018

2019

JFE Steel and JFE Engineering: parent company, business associates and contractors
Lost-work
injuries ratio=
JFE Holdings,
Inc.Number of lost-time injuries / number of hours worked × 1,000,000

SH＜Crucial measures＞• Promotion of safety initiatives by utilizing
ICT（e.g. Installing safety monitoring
system, Safety support by using AIimage-analysis etc.）

Lost-work injuries ratio：~0.25<Example of advanced measure>• Conduct the risk simulation training, using
safety-simulation vehicles and VR＜Crucial measures＞• Prevention of accidental contact throughequipment improvements (Installation ofsafety sensor equipment, etc.)
31

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 and motion, detection of
approaching heavy machine, and gas concentration.
• Cloud system gathers such information, and managers can monitor it through their smartphones.

Heavy machine
approach detection

Movie

GPS position
WorkerAudio②Sharing workplaceinformation①Sharing Audio & Movie

Cloud

Alerts and gas concentration data aretracked on the map
Date of detection： ＊＊＊Oxygen concentration： ＊＊Carbon monoxide concentration：＊＊Share info with manager’s
smartphone

Gas concentration（Oxygen concentration, carbon
monoxide concentration etc.）

Gas detection

JFE Holdings, Inc.

Manager

Monitoring

32

Diversity & Inclusion
Promote initiatives to maximize the abilities of employees with diverse
backgrounds in terms of gender, nationality, values, or lifestyle.
Supporting womenin professional development• Each operating company has Diversity Promotion
Section to organize educational activities, such as
rank-based training and women’s exchange meetings,
and to implement best practices across the Group.

• Continuously hire new employees to support JFE Group’s
sustainable development• Actively hire personnel with diverse characteristics
and values as well as people from other businesssectors• Increased hiring of female employees
ST: Steelworks employ approx. 400 females who are
currently working on-site.

• Enhanced childcare-support programs thatsignificantly exceed statutory requirements.

Total number of hires in
3 operating companies• Set a target of females in managerial positions＜Female managers in the JFE Group: Actual and Target＞

April 2020

August 2014

JFE Holdings, Inc.

Target in
2025

５

times
Target wasachieved!
Compared
to August
times
2014

3.5

Hiring diverse human resources

1,248

The number ofonsite positions

The number of
mid-career hires

304

（24%）

183

The number ofcareer-track positions

121

Improving awarenessand offering training programs• Provide opportunities for management to improveawareness of diversity• Provide leadership training and seminars for female
employees• To respect LGBTQ（sexual minority), an LGBTQ study
group was convened for human resources
representatives in each district of JFE Steel’s businesslocations.
33

Human Resource Development to Enhance DX Strategy（Steel Business）
500
400

•

The practical application of data science inmanufacturing and R&D requires expertise in fields
specific to the steel industry•

Data scientists are not easy to be hired outside thecompany due to increased competition.

•

Established an education structure to train in-house
data scientists in order to immediately introduce rapidly
developing data science technology into the field.

•

Establish a hierarchical education system andimplement education that meets the needs of each
employee.

•

Increase the number of in-house data scientists toapproximately 350 by the end of fiscal 2020.

data communication in Japan and USA

ICT HRs in User companies
ICT HRs in Vendor companies

300

274

65%

200
100

28%

29

72%

75

0

Japan

145

35%

USA

Source：The Ministry of Internal Affairs and Communications
The 2018 Information and Communications White Paper

Level

Target employees

Methods to develop

Deeper DS Level 1
expertise• Part of engineers in Manufacturing Dept.

• Researchers in Research Dept.

• Education in academic institutions• Engineers to temporarily work in Research Dept.

DS Level 2• Part of engineers in Manufacturing Dept.

• Problem-solving approach education

DS Level 3• All engineers• Basic education regarding Data Science• General education regarding Data Science

DS Level 4• All employees including white-collar
positions• e-Learning

JFE Holdings, Inc.

Data Scientists

ICT human resources involved in data processing and（M unit）

34

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

JFE Steel• Encourage working at home and commute to theoffice preventing the rush hour by installing coreless flexible working hours.
• Provide partitions in the office• Temperature measurement by using thermo
cameras at the entrance
Head office and branch office

JFE
Engineering

•
•
•
•

More than 50% to take working at home
Measure and record temperature everyday
Must wear facial masks while working
Temperature measurements for guests
Head office

JFE Shoji

Steelworks and other works• Provide partitions in office and cafeterias.
• Reduce meeting participants by holding meetings
separately• Keep social distance during breaking timeWorks, construction sites, and operating plants• Provide plastic sheets in resting areas• Access control to the common facilities• Divide into 3 groups to enable staggered commuting of
one hour at works.
Other sites

・Commute to the office preventing the rush hour by installing core-less flexible working hours
・Hold online meetings with people from outside of the company
・Provide partitions in the office ・Temperature measurement for guests by thermo camera
・Encourage everyday temperature measurement before coming to the office・Working at home as often as possible（maximum rate of office attendances : 25%）

・Encourage working at home(maximum rate of office attendances : 50%)

Measures when an employee is tested positive• If employees are infected with COVID-19, the JFE Group will immediately take the following measures under theguidance of the public health center. 1: Disinfection of workplaces and communal areas where infected
employees worked 2: PCR testing of close contacts.
• JFE Group places top priority on the safety of its stakeholders' (including employees) and continues to take agile
JFE
Holdings, toInc.prevent the spread of COVID-19.
measures35

JFE Group’s Governance

JFE Holdings, Inc.

36

Approach to Diversity in Board of Directors
 Improvement of Diversity in Board of Directors＜Expansion and Diversity in Board of Directors＞• 2007 Added two outside directors
1. Added the presidents of JFE Engineering and JFE Shoji• 2017 Reorganized the Board of Directors
to the Board of Directors• 2019 Appointed
2. Increased two outside members (Director and Audit &a first female audit & supervisory member
Supervisory Board Member)• 2020 Appointed a first female outside director
Percentage of outside executives:46%, 6 outside executives (including 3 directors and 3 audit & supervisory), 7 in-house
executives (including 5 directors and 2 audit & supervisory) (as of September, 2020)

Audit & Supervisory
Board Members

Director

Category＜Outside Executive Structure＞
Name

Main concurrent positions

Independent
executive

Appointment as membersof advisory bodies to theBoard of Directors

Expertise and background
Corporate
management/
Management
strategy

GlobalEngineering management

Financeandaccounting

Legal

Administrat

Academic ion / Public
policyNomination
Committee

Remuneration
Committee

Chair

Member

Masami
Yamamoto

Director and Senior
Advisor of Fujitsu
LimitedIndependent

Nobumasa
Kemori

Executive Advisor of
Sumitomo Metal
Mining Co., Ltd.

Independent

Yoshiko
Ando

Audit & Supervisory
Board Member of Kirin
Holdings Company,
LimitedIndependent

MemberShigeoOhyagi

Senior Advisor of
Teijin Limited

Independent

MemberIsao
Saiki

Partner Lawyer of Abe,
Ikubo & Katayama
Law Firm

Independent

TsuyoshiNumagami

Professor, Graduate School ofBusiness Administration,
Department of Business
Administration of
HITOTSUBASHI UNIVERSITY

Independent

JFE Holdings, Inc.

Chair

MemberMemberMember37

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 contents of the survey were composition and operations of the Board of Directors, support andcooperation framework of Secretariat, supervision function and status of discussions at the Board of
Directors, status of discussions at advisory committees, and relationships with shareholders and*stakeholders.
• Discussed by the Board of Directors in light of the survey results and evaluation by the third-party
organization.

2.

Evaluation of the results• The Board of Directors determined that its overall effectiveness was ensured through more robust
discussions at its meetings, as officers attending the Board of Directors meetings, including Outside
Directors and Outside Audit & Supervisory Board Members, proactively expressed their opinions.
• The accurate and fair auditing of Directors’ execution of their duties by Audit & Supervisory Board
Members and their proactive voicing of opinions and questions regarding the management decisionmaking and reporting at the Board of Directors meetings have vitalized deliberations at the Board
meetings. It was thus determined that the Company is functioning effectively as a company with
an Audit & Supervisory Board.
• The following issues were extracted for further improvement of effectiveness; should further
promote specific ESG initiatives; should enhance the Board of Director’s supervision function
over risk management of the entire Group; and should improve the Board of Directors’
approach to business plans when facing drastic changes in the business environment.

JFE Holdings, Inc.

38

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, in principle.
• However, stocks of a company deemed necessary for maintaining and growing
the Group’s businesses are exceptionally held as strategic shareholdings.
 Proceeding to sell shareholdings based on the policy above.
•◆Regular review of the significance and merits of shareholdings••

The Board of Directors meetings regularly confirm the significance of thestrategic shareholdings and whether the benefits and risks of such holdings arecommensurate with their capital.
Selling shareholdings if there is no significance of such shareholdings or there isa risk of damage to shareholders’ interest.
JFE Holdings, Inc.

39

External Recognition
in Recent Years

JFE Holdings, Inc.

40

External Recognition and External Awards
Name of SRI*
Index etc.
FTSE4Good
Index Series,
FTSE Blossom
Japan Index

Evaluation/ selection
period

SQEP

As of
July
2020

（Supplier Quality
Excellence
Process）[CDP2019 Evaluation]

CDP20192019

Climate Change: B
Water Security: ASupplier Engagement: A-

DBJ
Environmentally
Rated Loan
Program

SOMPO
Sustainability
Index
JFE Holdings, Inc.

Name of SRI*
Index etc.

DX Stocks
2020

2012
~2020

*SRI：Social Responsible Investment

Supplier Quality Excellence ProcessGold certification plaque

2017
~2020

2020年

*JFE Holdings was selected for inclusion in the Competitive IT strategy
Company Stock Selection for five consecutive years.

Awards
2016

Evaluation/ selection
periodDescription

Environmental
Communication
Awards 2019

JFE Group’s CSR reportpublished in September
2019 was awarded forexcellence （first time to
win the prize)

EnergyConservation
Grand Prize
METI Minister's
Award”Multi-site integrated energy network
services “(JFE-METS) developed by JFE
Engineering was awarded for METI
Minister's Award of Energy
Conservation Grand Prize, which is thebest prize in the product and businessmodel section of the prize in FY 2019.

41

Appendix

JFE Holdings, Inc.

42

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 theworld’s most innovative technology
Corporate
VisionContributing to society with the world's most innovative technology

Corporate
Value

Challenging Spirit. Flexibility. Sincerity.
In implementing all corporate activities to realize the corporate
vision, comply with the following 10 items of Standard of Conduct

Standard of
Conduct

JFE Holdings, Inc.

１

Provide quality products
and services

2

Be open to society

３Work with communities

４

Globalize

５

Exist harmoniously with theglobal environment

６

Maintain proper relations withgovernments and politicalauthorities

7

Maintain crisis readiness８

Respect human rights

９

Provide challenging work
environments

10Comply with laws andordinances

43

JFE Group’s Environmental Management
Realize “harmony with the global environment” and “improvement of the
global environment” in corporate activities

Environmental
Philosophy

The JFE Group puts top priority on protecting and enhancing the global
environment to maintain its business in harmony with the environment,
ultimately for the prosperity of society as a whole.

Environmental
Strategies(1) Reduce the environmental impact of all businesses(2) Contribute through technologies and products(3) Conserve resources and energy (4) Communicate with society(5) Facilitate international cooperation•

The JFE Group Environmental Committee sets goals for environmental
protection, monitors the progress of initiatives•

Key issues for corporate management such as climate change aredeliberated at the Group Management Strategy Committee as well andreported to the Board of Directors.

•

Acquisitioned of ISO 14001 certification at all global production sites of
JFE Steel and JFE Engineering, and major offices of JFE Shoji•

Promote environmental auditing, education and accounting

Environmental
Management

JFE Holdings, Inc.

44

JFE Group’s Basic Policy on Human Resource Management（Established in April, 2015）① Respect human rights and facilitate fair management of humanresources

The Group manages human resources fairly by respecting the human rights ofall employees and nurturing employees who embrace the Group’s corporate
values and standards of business conduct.

② Foster a corporate culture that nurtures people and promotes
satisfying workplaces

The Group facilitates interactive communication among employees to cultivate a
corporate culture that nurtures human resources and creates safe, attractive
environments where everyone can enjoy working③ Diversify human resources

The Group ensures that diverse all people, including women, non-Japanese, theelderly and the disabled, can demonstrate their full potential.

④ Recruit and steadily nurture excellent human resources

To survives in an increasingly complicated and diversified global environment,
the Group steadily recruits diverse, high-quality skilled human resources,
ensures that they receive the skills and knowledge necessary to continue
strengthening the Group’s technological capabilities, and nurtures their global
capabilities

Based on this policy,
each operating company promote measures which meets actual circumstances.
JFE Holdings, Inc.

45

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
Prevent workplace accidents
Ensure the health of employees
and their families
Pursue diversity and inclusion
Strengthen human resource
development programs

Ensure adherence to Corporate
Ethical Standards andcompliance
JFE Holdings, Inc.

46

KPIs for Material CSR Issues (1)Updated KPIs of the issues below in this Fiscal Year.（Only KPIs updated are extracted.）

Provide quality products(customer satisfaction)

Material
CSR Issues

KPIs for FY2020

OperatingCompany

KPIs

Results in FY2019

ST

1.Stable products
supply to customers
through steady
operations
2.Make steady progresson strengthening its
manufacturing bases,
starting with blast
furnace stabilizing
measures

Capital investment of
the establishment of
manufacturing bases
was implemented, whichenabled stable operationin each steelworks,
resulting in a higherdelivery rate than in thesame period of theprevious fiscal year.

〇

1.Agile and flexible production and operation
adjustment to the demand change amidbusiness environment changes, stable products
supply to customers through steady operations
2.Make steady progress on strengthening its
manufacturing bases, starting with blast furnace
stabilizing measures

EN

Secure a stable
number ofcertificatedmanaging engineers

High-level revenue has
kept, while the stable
number of managing
engineers was
successfully secured.

〇

Secure a stable number of certificated managing
engineers

Make consistentcapital investmentin processing anddistribution
operations

All the investment
necessary for providing
quality products was
implemented within thisfiscal year.
【Amount of investment（amount adopted）】
Investment in quality
enhancement：1.7
billion yen
Renewal and safety
investment：2.0 billion
yen
System investment：1.8
billion yen〇

Make consistent capital investment in processing
and distribution operationsSH

JFE Holdings, Inc.

Evaluation(Parts colored red are updated from FY2019. ）47

KPIs for Material CSR Issues

Ensure quality

Material CSR
Issues(2)
Evaluation

KPIs for FY2020(Parts colored red are updated from
FY2019. ）ST

Implementation of thecapital investments
for improving the levelof quality assurance
and product testing
established in the
Sixth Medium-term
Business PlanIn FY2019, Completed almost all
the approval of the investment for
the full automated quality
assurance and product test of fourpriority areas in the Sixth Mediumterm Business Plan.（Tensile test：
96.7%, molten steel analysis：
100％, automotive steel plate
thickness measurement：100%,
plating adhesion measurement：
100%)

〇

Capital investment will be madeto improve the reliability of
testing and analysis, aiming torealize 100% automatic quality
assurance and product testing in
the four priority areas (tensile
test, molten steel analysis,
automotive steel sheet thickness
measurement, plating deposition
measurement).

EN

No major quality
problems

No major quality problems〇

No major quality problems

Continue to conduct
quality audits at least
once annually on 30
manufacturing affiliatecompanies (audit
executing rate:
100%)

Conducted quality audits 30
domestic and overseas
manufacturing affiliatecompanies as planed. In
consideration of the impact on
COVID -19, the 6 companies
scheduled to be audited at theend of the fiscal year were
postponed to fiscal 2020.
Audit executing rate：80％（Domestic：14, Overseas：
10）〇

Continue to conduct quality
audits at least once annually on
32 manufacturing affiliatecompanies (increased thenumber of companies audited
from 30 to 32)

OperatingCompanySH

JFE Holdings, Inc.

KPIs

Results in FY2019

48

KPIs for Material CSR Issues

Develop and provide
environmentally friendly products

Pursue R&D operations

Material CSR
IssuesKPIs

OperatingCompany

Results in FY2019

Conduct R&D
operations
established in
the Sixth
Medium-term
Business Plan

•

EN

Make
consistent orincreased
investment in
R&D
operations

Investment amount is maintained andincreased
FY2017 3.8 billion yen
FY2018 4.1 billion yen
FY2019 4.7 billion yen（15% growth from FY2018）

ST

Develop new
products andtechnologies
established in
the Sixth
Medium-term
Business PlanST

EN

JFE Holdings, Inc.

-•

Commercialize new products as planedby paying the same amount of R&D
expenses as the previous fiscal year
Companywide deployment of optimum
operation technology utilizing data
science technology

Developed and released 16 newenvironmentally friendly products as planed.

-(3)
KPIs for FY2020

Evaluation(Parts colored red are updated from FY2019. ）

•
•

〇
•

Pursue strategic R&D
By developing DS technology, establish JDXC
in FY2020, introduce Data Science(DS)technology to Blast Furnaces in all districts andNo.3 Sintering Machine in Fukuyama district,install J-dscom to all Hot Rolling Lines.
More than 20 new products and technologies
developed in fiscal 2020 (From FY2015 to
FY2020, aim for a total of 135 products andtechnologies)〇

Develop technology focus on ICT utilization,measurement for climate change, and plastic
recycling as the three priority areas【Numerical Target】 R&D expenses for the priority
area accounts for More than 30%.

〇

Expand line-up of environmentally friendly
products and technologies: more than 15
products and technologies in FY2020（From FY2015 to FY2020, aim for a total of 105
products and technologies）-

Expand and develop more than one new businessand new products, or business scale contributing
to the global environment conservation or expand
business in a year.
 Progress plastic recycling business Progress food waste recycling business Progress consumer electronics and fluorescentlight recycling Progress electricity supply business generated
by renewable energy
 Develop and provide new environmentallyfriendly products

49

KPIs for Material CSR Issues
Material
CSR
IssuesOperatingCompany

KPIs

Results in FY2019

Evaluation(4)
KPIs for FY2020(Parts colored red are updated from FY2019. ）•Mitigate climate changeST

1.CO₂ reduction target
defined in the Japan Iron
and Steel Federation’s“Commitment to a Low
Carbon Society”
2.Continue to invest inenergy conservation

1.Progressing to the FY2020
target in the Japan Iron andSteel Federation’s “commitment
to a Low Carbon Society” asplaned.
2.Keep investing in energy
conservation

•
〇

•

•

EN

JFE Holdings, Inc.

1.Contribute to global
environment conservation
through our products andservices
 Spread of waste-toenergy plants
 Spread of woody biomass
power generation
 Energy conservation inwater and sewage
facilities
 Spread of sewage sludge
energy plants
 Provide electricity fromrenewable energy
2.Reduce CO₂ emissions infactories and offices

1.Installed 3 waste-to-energy
plants and 2 biomass power
generations, exceeding original
yearly plan of 2 installation
cases.
Our providing plants (inoperation) contributed 4.13
million tons/ year of reduction of
CO₂ emissions.
2.Reduced 13.7% of Cos
emissions, exceeding by morethan 1% compared to theprevious fiscal year.
（FY2018：13,100 tons/year,
FY2019：11,300 tons/year）〇

The target for fiscal 2030 is to reduce CO₂
emissions by 20% or more from the fiscal
2013 level.
To achieve the target, a project team has
been launched within FY2020 and willdevelop implementation scenario.
Join the NEDO technology development for
attaining “zero-carbon steel” and develop,
in 2020-2021, a roadmap presenting longterm technology development .
Start test operation of a pilot ferro-coke
plant

1.Contribute to global environment
conservation through more than two of our
products and services
 Spread of waste-to-energy plants
 Spread of woody biomass power
generation
 Spread of digestion gas power generationplant Spread of geothermal, solar and wind
power generation
2.Reduce CO₂ emissions in factories andoffices by 1% and more compared to theprevious fiscal year.

50

KPIs for Material CSR Issues

Protect the global atmosphere

Material
CSR
IssuesOperatingCompany

KPIs

Results in FY2019

ST

1.Continue to work on
keeping NOx and SOx
emissions at low levels
2.VOC emissions：maintainat low levels (30%decrease compared to
2000)
3.Benzene emissions：maintain at low levels（80% decrease compared
to 1999)
4.Dichloromethane
emissions：maintain at low
levels（40% decrease
compared to 1999）

1.NOx and SOx emissions were
kept at low levels throughthorough combustion-control.
2.VOC emissions: 51% decrease
3.Benzene emissions: 93%
decrease
4.Dichloromethane emissions
68% decrease

Continue to work on keeping
NOx and Sox emissions at
low levels

Can maintain the low levels ofemissions due to emissions much
lower than yearly total amount ofregulationNOx 178N㎥（18,000N㎥）
SOx 40N㎥（100N㎥）

EN

JFE Holdings, Inc.

Evaluation(5)
KPIs for FY2020(Parts colored red are updated from FY2019. ）〇1.Continue to work on keeping NOx and SOx
emissions at low levels
2.VOC emissions：maintain at low levels(30% decrease compared to 2000)
3.Benzene emissions：maintain at low levels（80% decrease compared to 1999)
4.Dichloromethane emissions：maintain at
low levels（40% decrease compared to
1999）

〇

Continue to work on keeping NOx and SOx
emissions at low levels【Numerical Target】
Lower than the yearly total amount ofregulation
NOx ：18,000Nm3
SOx ：100Nm3

51

KPIs for Material CSR Issues
Material
CSR
IssuesOperatingCompany

Results in
FY2019KPIs

KPIs for FY2020

Evaluation(Parts colored red are updated from FY2019. ）Prevent workplace accidentGroupwide

S
TGroupwide

Workplacefatalities:
zero
occurrences
E
N

Workplacefatalities:
twooccurrencesーWorkplace fatalities: zero occurrences

ST

Lost-work Injuries Ratio: ~0.10＜Crucial measures＞
1. Further implementation of safety initiatives ineach district based on its weak points
2. Reestablishment of safety management system（installation of ISO）
3. Spread of safety initiatives using ICT（e.g. Installing safety monitoring system,
Safety support by using AI-image-analysis
etc.）

EN

Lost-work Injuries Ratio: ~0.25＜Crucial measures＞
1. Installation of working floor/handrail and safety
belt for work at height
2. Prevent people from around hanging load/
operating range of heavy equipment
3. Turn off the power of equipment, facilities andtools when doing unusual works.
4. Calling and correction during onsite patrolling<Example of advanced measure>
Conduct the risk simulation training, using safetysimulation vehicles and VR

SH＜Crucial measures＞• Prevention of accidental contact throughequipment improvements (Installation of safety
sensor equipment, etc.)×S
H
JFE Holdings, Inc.

Workplacefatalities:
four
occurrences

(6)

52

KPIs for Material CSR Issues

Ensure the health of employees and their families

Material
CSR
IssuesOperatingCompany

KPIs

ST

Provision rate ofhealth guidance (by2020：35%

EN

Provision rate ofhealth guidance (by2020：35%

SH

Provision rate ofhealth guidance (by2020：40%

Groupwide

JFE Holdings, Inc.

Rate of healthexamination for
dependents: 60%(by 2020)

Results in
FY2019ST

Actual rate ofhealthguidance：
56.9％

EN

Actual rate ofhealthguidance：
28.9％

SH

Actual rate ofhealthguidance：
36.8％

ST

Rate of healthexamination for
dependents：
48.2％

EN

Rate of healthexamination for
dependents：
51.7％

SH

Rate of healthexamination for
dependents：
51.0％

Evaluation

△

△

(7)
KPIs for FY2020(Parts colored red are updated from FY2019. ）ST

Provision rate of healthguidance (by 2023)：
60％

EN

Provision rate of healthguidance (by 2020)：
35％

SH

Provision rate of healthguidance (by 2020)：
40％

Groupwide

Rate of healthexamination for
dependents: 60% (by
2020)

53

KPIs for Material CSR Issues

Strengthen human resource
development programs

Material
CSR
IssuesOperatingCompany

Groupwide

KPIs• Improve
technical skills
and conduct
high-quality
human resource
development
programs• 100%
attendance fromthe target
audience forhuman rights
awarenesstraining

Results in FY2019

Qualitative

Quantitative

Evaluation

KPIs for FY2020(Parts colored red are updated from FY2019. ）S
TActual training program hours：
1,197,045Hr

S
T

Training program hours per person: morethan 40Hr/year

E
N

Human resource development using
various types of education system 389 participants of the level-specifictrainings
 2 participants of the human resource
development for overseas project

E
N

Training program hours per person: morethan 20Hr/year

S
H

Improve technical skills and conduct
high-quality human resource
development programs（100% attendance from the target
audience for level-specific training
programs）

S
H

Training program hours per person: morethan 20Hr/year
100% attendance from the target
audience for level-specific training
programs

S
T

Percentage of attendance for humanrights awareness training：99.98%

E
N

Percentage of attendance for humanrights awareness training：100%

S
H

Percentage of attendance for humanrights awareness training：100%

Evaluation criteria
Category of targets

(8)

〇

△

• 100% attendance from the target audiencefor human rights awareness training*Group-wide evaluation applies the lowest results in the operating companies as a final result.

〇

△

×

Single fiscal year

Achieved more than 100％More than 80％, less than 100％

Less than 80％

Mid-/long-term target

Achieved more than 100%of the final target

Progressing toward the final target.
Achieved certain level of performance.
(more than 80% in linear interpolation）

Progressing toward the target, but not achieved yet.
(less than 80% in linear interpolation)

Achieved target.
Advanced performance

Progressing toward the final target.
Achieved certain level of performance.

Progressing toward the target, but not achieved yet.

JFE Holdings, Inc.

54

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 environmental impact such as global warming is much smaller for materials with high recyclability.

85

As much as% （190 billion t)of the Earth’s metal resources areiron ore.

Steel contributes to social
developments with its
Steel scrap usedrich resources
Natural resources

0.56
Bｔ/year

Produce

1.55
Bｔ/year2015

Steel can be recycled
over and over again 1.22
Steelworks

Blast Furnace

Converter

2015

Crude Steel
Production

2050

JFE Holdings, Inc.

RecycleEfficient separation andretrieval of steel using
its magnetic property

1.40

92%

Steel is reborn
as anything

68.2Bｔ/year
29.4Bｔ/year

Bｔ/ year

2015
2050
Pig iron production
Electric furnace(Blast Furnace)

1.62 2.68
Bｔ/ yearBｔ/yearB ｔ/year

2050

Recycling rateof steel cans

＝7.0t/person

Society
Final product and usage＝4.0t/person

Steel stock

2015

2050

Buildings

Use
Contributing to sustainable
development of our life andeconomy by the world’s bestenergy-saving andenvironmental technologies
Processing & different manufacturing
Automobiles, construction materials, etc.

Cans

Automobiles

Demand for

1.29
B t/year

2015

2.13
Bｔ/year

2050

55

Initiatives to Preserve Biodiversity


Minimize the ecological impact from business activities by monitoring biodiversity around the steelworks andsurrounding areasPromote initiatives outside of business such as developing iron and steelmaking slag products that can help
restore the marine environment, and conducting environment-related training for local communities

Replanted a Rare Species of Orchid Found at a
Planned Construction Site•

Conducted an environmental prediction andevaluation for the renovation of Plant No.1 in
the JFE Ohgishima Thermal Power Plant•

Replanted the Kugenuma
orchid, an endangered
plant which was discoveredat the planned construction
site, in a different locationof the site that had asimilar environment

Improving Marine Ecosystems Using Steel Slag
Products•

In a joint research project with the City of
Yokohama, effectively utilize steel slag product“Marine Block™” as organism clinging base andmaterials for improvement of seabase•

Continue to work on this project with the City of
Yokohama toward improving the marine
environment in Yokohama Bay and developing
an attractive seaside town.

Kugenuma orchid

Contributing to biodiversity training for children inlocal communities•

JFE Steel has opened its Environment Pond at the
Chita Works to the community for a firefly festival
every year since 2014.

•

Since 2009, JFE
Engineering has been
inviting children in thecommunity to learn about
the ecosystem at a biotope,
Dragonfly Pond, in the
Tsurumi Works.

JFE Holdings, Inc.

Participants observing fireflies

56External Recognition
Name of SRI*
Index etc.

FTSE4Good
Index Series,
FTSE Blossom
Japan Index

Description of selection criteria, etc.
JFE Holdings has, for the first time, been selected as aconstituent in the FTSE4Good Index Series1, a series ofprominent global investment index focused on Environmental,
Social, and Governance (ESG) practices, and the FTSE Blossom
Japan Index2, which tracks Japanese companies with strong ESG
practices.
JFE Holdings is now a constituent of three ESG investment
indices used by the world’s largest pension fund, Japan’s
Government Pension Investment Fund (GPIF), namely the FTSE
Blossom Japan Index, the MSCI Japan Empowering Women
Index (WIN), and the S&P/JPX Carbon Efficient Index.

Evaluation/ selection
periodAs of July
2020

1FTSE4Good Index Series

Developed by FTSE Russell, a subsidiary of the London Stock Exchange Group, the index
comprise companies that are demonstrating strong environmental, social, and governancepractices. It is used widely to create and evaluate sustainable investment funds and otherfinancial instruments.
2FTSE Blossom Japan Index
Also developed by FTSE Russell, this index measures the performance of Japanese companies
that demonstrate strong ESG practices.

CDP2019

JFE Holdings, Inc.

CDP, the ESG evaluation organization (NGO) established in the
UK in 2000, requires companies to disclose ESG information as
CDP questionnaire in order to allow institutional investors toutilize it for ESG investment. CDP’s current target areas are“climate change”, “water security” and “forest”, wherecompanies are evaluated in 8 grades. CDP collects the mostinformation in the world, and more than 300 Japanesecompanies currently respond to CDP questionnaire. Thus, it is
widely used by in institutional investors and for various indices ofsocial responsibility. JFE group responds to two of the target
area, “climate change” and “water security”, every year, andreceives high evaluation for the appropriate information
disclosure.
*SRI：Social Responsible Investment[CDP2019 Evaluation]
Climate Change: B
2019

Water Security: ASupplier Engagement: A-

57

External Recognition
Name of SRI*
Index etc.

Description of selection criteria, etc.

Evaluation/ selection
periodDBJ
Environmentally
Rated Loan
ProgramThis is the first financing system in the world to incorporate special
environmental ratings, which uses a screening system developed by
the Development Bank of Japan (DBJ) to evaluate environmental
management levels and select outstanding companies with threeinterest stages according to evaluation points. In March 2016, JFE
Holdings was rated as a top-ranking company that pursues excellent
and advanced environmental initiatives in recognition of ouradvanced environmental management which JFE has pursed. JFE
has received a loan under this program.

2016

SOMPO
Sustainability
Index

JFE Holdings has been included in “SOMPO Sustainability Index”,
which is operated by SOMPO Asset Management Co., LTD., and used
to be called “SNAM Sustainability Index”, for nine consecutive years.
This index includes companies with high-ESG evaluation and aims tocontribute to investors’ asset building through companies’ evaluationfrom the long-term perspectives.

2012
~2020

SQEP
（Supplier Quality
Excellence
Process）

In 2019, JFE Steel West Japan Work (Kurashiki District) and JFE
Shoji Trade were named for four consecutive years as Gold Level
SQEP suppliers for the Supplier quality Excellence Process, a quality
certification of the U.S.-based construction equipment manufacturer
Caterpillar Inc. The program ranks suppliers for compliance with
ISO9001 standards and Caterpillar’s own specifications and certifies
the top firms as Platinum, Gold, Silver or Bronze. Only a few
companies in Japan has received Gold Level certification, and JFE
Steel is the world’s first blast furnace company to be certified.

JFE Holdings, Inc.

*SRI：Social Responsible Investment

Supplier Quality Excellence ProcessGold certification plaque

2017
~2020

58

External Recognition and External Awards
Name of SRI*
Index etc.

Description of selection criteria, etc.

DX Stocks 2020

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 Industry and the Tokyo Stock Exchange. The program
which recognizes companies that actively implement competitive IT,
deepens investor understanding of the strategic utilization of IT to boost
medium-to long-term corporate value and competitiveness. From this year,
this program was renamed to “DX Stocks”, which focuses on “Digital
Transformation (DX)” that can fundamentally revolve the business models
to gain further growth and stronger competitiveness. JFE Holdings wasagain selected for inclusion in “DX Stock 2020” as a company proactively
proceeding DX.

Awards

Evaluation/ selection
period2020

Description

Environmental
Communication
Awards 2019

JFE Group’s CSR report published in September 2019 was awarded for excellence in“Environmental Communication Awards 2019” hosted by the Ministry of the Environment
and the Global Environmental Forum accorded the Global Environmental Forum
Chairman’s Award (non-profit organization). This is the first time for JFE Holdings to win
this award. “Environmental Communication Awards” aims to encourage environmental
communications between companies and their stakeholders and to stimulate
environmental initiatives by awarding for excellent environmental reports for multistakeholders such as CSR reports, integrated reports and environmental management
reports. In this year, 180 applicants for the environmental report area and 118 applicantsfor the environmental management area. JFE group was selected as one of the 25
excellent prizes in the environmental report area. The award ceremony was held in
Shinagawa Prince Hotel in February 19th 2020.

EnergyConservation
Grand Prize
METI Minister's
Award”Multi-site integrated energy network services “(JFE-METS) developed by JFE Engineering was awarded for METI
Minister's Award of Energy Conservation Grand Prize, which is the best prize in the product and business model sectionof the prize in FY 2019. JFE-METS, by changing our viewpoint so far, analyzes the actual energy consumption conditions
at multiple bases, such as business units and area units, rather than individual bases, and deploys the energy-related
facilities as the whole optimum in each base. By implementing energy sharing including remote areas, it provides theenergy service that generates energy conservation in a comprehensive manner.

JFE Holdings, Inc.

*SRI：Social Responsible Investment

59

Copyright © 2020 JFE Holdings, Inc. All Rights Reserved

JFE Holdings, Inc.

60