２０２２
Japan Elevator Service Holdings Co., Ltd.
Sustainability Report 2022

Table of Contents

1.JES Proﬁle4.Social

Introduction ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・4Contributing to Society Through Our Business ・・・・・・・・・・・・・・・・19

Corporate Proﬁle, Corporate Philosophy, and Vision ・・・・・・・・・・・・5
Financial Highlights ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・6
Business Domains of JES Group ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・7
Growth Strategy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・9
Medium-term Management Plan VISION2027 ・・・・・・・・・・・・・・・・10

2.Sustainability Management
3.Environment
4.Social
5.Governance
6.GRI Standards Table

Improvement of User Satisfaction ・・・・・・・・・・・・・・・・・・・・・・・・・・・・21
Response to Disasters ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・22
Respect for Human Rights ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・23
Human Resources and Training ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・24
Diversity & Inclusion ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・25
Creating a good working environment / Fair Evaluation and Beneﬁts ・・・26

Table of Contents
1.JES ProﬁleQuality and Safety ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・20

2.Sustainability Management
Messages from CEO / CFO Sustainability Chair ・・・・・・・・・・・・・・・・11
Basic Sustainability Policy / Materiality /Sustainability Management Structure ・・・・・・・・・・・・・・・・・・・・・・・・・12
Communication with Stakeholders ・・・・・・・・・・・・・・・・・・・・・・・・・・・13

3.Environment
Our Approach to the Environment and Communication ・・・・・・・ 14
Eﬀorts to Achieve Carbon Neutrality by 2050 / Participation in Initiatives ・・15
Disclosure based on TCFD ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・16

Occupational Safety and Health ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・27
Social and Community Activities ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・28
Social Data ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・29

5.GovernanceCorporate Governance・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・30
Policy on Directorsʼ Remuneration / Compliance / Anti-corruption /Tax policy / Supplier Management・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・31
Basic Policy on Information Security / Privacy Poicy /R&D and Intellectual Property / Dialogue with Shareholders ・・・32

Response to Risks and Opportunities ・・・・・・・・・・・・・・・・・・・・・・・・・17

6.GRI Standards Comparison Table

Environmental Data ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・18

GRI Standards Comparison Table・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・33

Japan Elevator Service
Sustainability ReportJapan Elevator Service Sustainability Report 2022
002

Sustainability Report Editorial Policy

Basic ConceptThis report focuses on the realization of a sustainable society and the sustainability of the JES Group, with a focus on major initiatives for ﬁscal year
2022. We are committed to fulﬁlling our accountability to society and enhancing communication with our stakeholders. This report refers to thedisclosure requirements of the GRI Standards in order to disclose information as an engagement tool with all stakeholders. In addition, various information on climate change is disclosed based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Scope of This Report

Table of Contents

PeriodFrom April 1, 2021 to March 31, 2022 Partially includes activities after April 2022 and reports from previous years.

Organization

Japan Elevator Service Holdings Co., Ltd. and consolidated subsidiaries

Performance

Finance︓Japan Elevator Service Holdings Co., Ltd. and consolidated subsidiaries and companies accounted for by equity method
Environment︓Japan Elevator Service Holdings Co., Ltd. and consolidated subsidiaries in Japan

Editorial Policy

Some group companies that have been acquired by the Company are not included in the scope of coverage, but
the environmental impact data from business activities covers more than 90% of the total impact of the entire group.

1.JES Proﬁle2.Sustainability Management

Social ︓Data scope is described separately.
Schedule

Reported annually

3.Environment
4.Social
5.Governance

Description

JES Group :JESHDJapan Elevator Service Holdings Co., Ltd.
and consolidated subsidiaries: Japan Elevator Service Holdings Co., Ltd.

Reference
Guidelines

GRI Standard (Global Reporting Initiative)
Ministry of the Environment
Environmental Reporting Guidelines (2018)

6.GRI Standards Table

Disclaimer

Japan Elevator Service
Sustainability Report

This report has been prepared for your reference to help you understand the current
situation of Japan Elevator Service Holdings Co., Ltd. (hereinafter referred to as "theCompany"). The information contained in this report is based on economic, social, andother conditions generally recognized at the present time and on certain assumptions
that we have judged to be reasonable, but may be subject to change without notice
due to changes in the business environment or for other reasons.

Cautionary Statement Regarding Forward-Looking Statements
The materials and information provided in this disclosure include so-called "forward-looking
statements". They are based on current estimates, forecasts, and assumptions that involve risks
and involve uncertainties that could cause results to diﬀer materially from those in thestatements. These risks and uncertainties include general industry and market conditions, andgeneral national and international economic conditions such as interest rate, currency, andexchange rate ﬂuctuations. We are under no obligation to update or revise the "forward-looking
information" contained in this disclosure, even if new information or future events arise in the
future.

Sustainability Report Contact: Japan Elevator Service Holdings Co., Ltd tel: +813-6262-1625

Japan Elevator Service Sustainability Report 2022
003

1

J ES Proﬁle
JESグループについて

Introduction
Incorporate social sustainability
into corporate activities

Social Value,
Environmental
Value

Economic Value

Table of Contents
1.JES ProﬁleIntroduction

Return sustainability of corporate activities
to the environment and society

2.Sustainability Management
3.Environment
4.Social
5.Governance
6.GRI Standard Tables

Japan Elevator Service
Sustainability Report

We are enhancing economic value and social and environmental value by practicing sustainability management
As a company specializing in the maintenance, repair, and modernization of elevators and other equipment, the JES Group strives to operate
its business with the safety and security of its customers as its toppriority. Being an independent maintenance specialist, we believe that
our important mission is to continue to provide high quality services atreasonable prices and to realize a comfortable and environmentallyfriendly society for our users.
Since our listing in 2017, we have seen continued growth in sales andoperating proﬁt due to an increase in the number of maintenancecontracts for elevators and other equipment.
At the same time, through maintenance, preservation, and renewal
work on elevators and other equipment, we consider the environment
by contributing to extending the durability of elevators and utilizing
recycled products. We are also committed to sustainable businessgrowth and strengthening our human resources through humanresource development initiatives to improve the business and technicalskills of our employees.
And as a company listed on Prime Market, we are developing ourgovernance system in accordance with the Corporate GovernanceCode.
We have been working on ESG in the past, but in recent years, asclimate change and other risks to global sustainability have increased,
individuals and companies are expected to proactively respond to therisks. We recognize that it is our social responsibility to take concretemeasures to address these risks.
In May 2022, we also announced our medium-term management
plan, VISION2027, in which we declared our commitment to ESG, notjust ﬁnancial indicators.
As a company listed on Prime Market, we contributes to a sustainable
society by enhancing economic value and social and environmental
value.

Japan Elevator Service Sustainability Report 2022004

Corporate Proﬁle/Philosophy/VISION
Since its establishment in 1994, the JES Group has been promoting
the maintenance and modernization business of elevators and othersocial infrastructure based on a strengthened management foundation,
striving to improve the quality of service and the technical skills of its
employees, with the safety and security of our customers as our top
priority.
Thanks to the support of our stakeholders, we were listed on theTokyo Stock Exchange in 2017 and designated to the Prime Market in
April 2022.
Our performance and number of employees have grown year afteryear, and we have risen to become the number one independent
elevator maintenance company.

Corporate Philosophy
Safety above anything else
Our lifeline is "safety" above anything else
Committed to watch over 24 hours a day, 365 days a year

No cutting corners even when others don't see it
Aiming for safe operation without cutting corners

Corporate ProﬁleTable of Contents

Company
NameJapan Elevator Service Holdings Co., Ltd.

Established

October 3, 1944

Listed market

Tokyo Stock Exchange Prime Market(Securities Code ︓6544)
Market change on April 4, 2022

1.JES ProﬁleProﬁle/Philosophy/VISION

2.Sustainability Management
3.Environment〒103-0027
Head Oﬃce

1-3-13 Nihonbashi, Chuo-ku, Tokyo

4.Social
5.Governance
6.GRI Standard Tables

Japan Elevator Service
Sustainability Report

Tokyo Tatemono Nihonbashi Building 5F,

Representative

As an expert company specializing in maintenance,
we are committed to building relationships of trust with our many customers
based on our position and strengths as a company that is not a manufacturer.

With population growth, concentration of population in cities, and theaging of society, elevators are an essential piece of social infrastructurethat is indispensable for vertical movement within buildings. It is notjust a means of transportation, but is required to be safe and comfortable, and in the event of an abnormal situation such as an earthquakeor natural disaster, it is also required to prevent conﬁnement and torestore the system as soon as possible.
The role of maintenance is important to ensure the safety and security of users, and we have adopted the corporate philosophy of "safety
above anything else," "No cutting corners even when others don't seeit," and "Building on Trust."
Our mission is to create safety for elevators and peace of mind forusers through our services, and we are working daily toward sustainable growth.

Representative Director CEO
Katsushi Ishida (March 25, 1966)

Number of
Employees

1,792 (as of December 31, 2022)

Share capital

2,493 million yen (as of December 31, 2022)

Net sales

Building on Trust

29,751 million yen (FY3/2022)

VISION
Challenge to inspiring service!
To be a maintenance manufacturer that creates the future of the industry!

The elevator maintenance and modernization market is expanding
year after year, both in Japan and in Asian countries.
JES Group will continue to take on the challenge of leading the maintenance industry as a maintenance company that has established abusiness model of global standards, providing high-quality services atreasonable prices.

Japan Elevator Service Sustainability Report 2022005

Financial Highlights
Thanks to our stakeholders, JES Group has continued to grow in sales and operating proﬁt since listing on the Tokyo Stock Exchange in March 2017.
While upfront and ongoing investments in human resources, research and development, and other areas are necessary for business expansion, we areworking to stabilize our ﬁnancial base by securing internal reserves in preparation for capital needs and raising funds through borrowings and othermeans.
In addition, the medium-term management plan calls for maintaining a dividend payout ratio of 40% or more.

Results of Operations(Millions of yen)March 2018

Net sales

1.JES ProﬁleFinancial Highlights

2.Sustainability Management
3.Environment
4.Social
5.Governance
6.GRI Standard Tables

Sustainability Report

March 2021

March 2022

21,33924,52129,751

Cost of goods

10,011

11,41913,52315,09018,253Gross proﬁt

5,315

6,480

7,816

9,431

11,497

Sales, general, andadministrative
expenses

3,963

4,446

5,098

5,818

7,384

1,351

2,034

2,717

3,612

4,113

Non-operating
income

30

22

29

136

162

Non-operating
expenses

43

55

43

33

49

1,339

2,001

2,703

3,715

4,225

1

8

0

15

8

Ordinary proﬁt
Extraordinary
incomeExtraordinary losses
Proﬁt before income taxes
Proﬁt attributable toowners of parent

43

1

22

5

3

1,296

2,008

2,681

3,725

4,230

848

1,265

1,700

2,362

2,726

Financial Conditions(Millions of yen)March 2018

March 2019

March 2020

March 2021

March 2022

4,919

5,568

6,356

8,168

9,822

Cash and deposits

1,295

1,045

1,145

1,674

2,179

Notes and accounts
receivable - trade

1,993

2,544

2,781

3,606

4,154

Property, plant and equipment

4,189

4,179

5,672

8,175

9,559

339

574

1,044

2,610

4,307

Investments and other assets

1,175

1,161

1,223

1,520

1,648

Non-current assets

5,704

5,915

7,940

12,305

15,515Current assets

Intangible assets

Japan Elevator Service

March 2020

17,900Operating proﬁt

Table of Contents

March 201915,326

Total assets

10,624

11,484

14,297

20,47325,338Current liabilities

6,002

5,905

6,352

7,242

8,706

Non-current liabilities

1,751

1,641

2,767

2,725

4,876

Total liabilities

7,754

7,546

9,120

9,968

13,582

Total net assets

2,870

3,937

5,177

10,505

11,756

Total liabilities and net assets

10,624

11,484

14,297

20,47325,338Japan Elevator Service Sustainability Report 2022006

Business Domains of the JES GroupThe JES Group is engaged in the maintenance, repair, and modernization
business of elevators and other equipment.
Since its establishment in 1994, the company has continued to grow on thestrength of its advanced technological capabilities to handle models from all
major Japanese manufacturers and its ability to procure genuine parts, and thenumber of maintenance contracts for elevators and other equipment reachedapproximately 79,000 units at the end of the ﬁscal year ended March 2022.
We provide services centered on maintenance work to inspect elevators on amonthly basis, maintenance work to repair malfunctions and defects, andrenewal work to perform renewal work, as well as related optional services atreasonable prices.
As a company specializing in the maintenance and repair and modernization
business of elevators and other equipment, we believe that our importantmission is to realize a comfortable and environmentally friendly society bycontinuing to provide high-quality services at reasonable prices as an independent maintenance company, while always placing the safety and security of ourcustomers as our top priority in our business operations.

Maintenance
Table of Contents

We have also fundamentally reviewed our pricing structure and established afair price structure based on the processes and services that are truly necessary
to deliver a high level of satisfaction.

Strengths of the JES Group◆Control Center

The control center, which operates 24 hours a day, 365 days a year, receives
failure signals through PRIME, the only independent JES remote inspection
device, and handles calls directly from customers. We have established asystem in which the location of technical personnel is monitored in real time byGPS, and when we receive a failure signal, we can properly determine themeans of transportation and the capabilities of the technical personnel andmake the necessary arrangements.
"PRIME" has been developed with multiple
patented technologies to constantly monitor
elevator operation and conditions and detectsigns of failure, enabling trouble prevention andquick recovery. Among independent maintenance companies, only JES Group can provide
this service.

1.JES ProﬁleBusiness Domains◆Parts Center

2.Sustainability Management
3.Environment
4.Social
5.GovernanceBusiness Model

Modernization

Repair

6.GRI Standard Tables

We have realized eﬃcient stocking of parts at our 8 parts centers nationwide
and approximately 130 sales oﬃces throughout Japan. Major parts are genuine
manufacturer parts, and the company boasts the largest number of independent parts items, approximately 3 billion yen and more than 100,000 items.
We have parts engineers on duty 24 hours a day, 365 days a year, day andnight, and on holidays to establish a quick turnaround system in case of emergencies. As part of our eﬀorts to ensure a stable supply of parts and to addressenvironmental issues, we are engaged in the refurbished parts business (parts
that have passed our quality control tests after being repaired and serviced fromparts collected at the time of replacement), which enables us to respond toparts that are no longer supplied by manufacturers or to delays in the supply of
manufacturer parts due to the global shortage of semiconductors. In addition,
this process contributes to the reduction of green-house gas emissions
compared to the manufacturing process of new parts.

Maintenance and Repair Services

Japan Elevator Service
Sustainability Report

Maintenance services include statutory inspections, periodic inspections(cleaning, lubrication, adjustment, replenishment and replacement of consumables, etc.), and monitoring services (investigation of abnormalities anddefects, including remote monitoring and remote inspection) as stipulated in the
Building Standard Law.
Repair services include replacement of deteriorated parts and repair ofmalfunctions based on reasonable judgments based on inspection results.
We have a wealth of maintenance experience and are capable of maintaining
all major domestic manufacturers' models. Although each manufacturer has its
own error analysis, adjustment standards, and parts replacement standards forelevators, our strength is that we can provide maintenance from a variety ofangles based on our many accumulated maintenance achievements.

◆Technical Support

Maintenance is performed by multi-specialists who have undergone "STEP24,"
a unique training program that ensures acquisition of basic knowledge andknow-how of each model. The program is designed to create technical personnel who not only have the technical skills to handle a variety of models, but who
can also be trusted as human beings.

Japan Elevator Service Sustainability Report 2022
007

Business Domains of the JES Group
Modernization services
The legal depreciable life of an elevator is 17 years, while the Life Cycle
Assessment of the Long Life Building Promotion Association (BELCA) states thatthe expected life of a standard elevator is 25 years. The JES Group mainly
targets elevators that have been installed for about 20 years or so. To improvereliability, safety, and eﬃcient operation, the Group performs removal andrepair work on existing equipment, including complete replacement of control
panels, hoisting machines, and other major components. It prevents the risk offailure due to aging deterioration and addresses the risk of non-recovery due toparts supply stoppage.
We also oﬀer a wide variety of components to elaborate the elevator design,
including control panels, buttons, wallpaper, and mats that enhance operability
and comfort. Because we are familiar with elevators, we can propose modernization to match the shape of the elevator.

New Initiatives
Mechanical Parking Equipment

In March 2021, JESHD established Japan Parking Service Co.,
Ltd., a joint venture with NC Holdings Corporation, which owns
Nippon Conveyor Corporation, a multi-level parking facility
manufacturer. Our maintenance services combine thestrengths of an independent maintenance company with thoseof a manufacturer, resulting in high customer satisfaction.

Digital Signage with Security Camera "LiftSPOT”
This is a proprietary digital signage with security camera
functionality. In addition to reinforcing security inside the elevator, the system delivers a variety of content to improve thesafety and comfort of the elevator space. "LiftSPOT" hasacquired multiple patented technologies and can be used across
manufacturer boundaries.
It has grown to become the largest installed digital signage
media with voice in elevators in Japan, and we will continue toincrease the number of units installed to improve media value
and increase advertising sales.

Table of Contents
1.JES ProﬁleBusiness Domains

2.Sustainability Management
3.Environment

Escalator Maintenance

4.Social

We can handle escalator maintenancefor all major domestic manufacturers'
models. In order to deliver escalator
maintenance with a high level ofsatisfaction, we focus on improving theskills of our employees through an
extensive curriculum that includes
training on actual equipment.

5.Governance
6.GRI Standard Tables

Quick Renewal

Japan Elevator Service
Sustainability Report

We oﬀer our own latest modernization service, Quick
Renewal.
By replacing only the control panel, it can signiﬁcantly shorten elevator suspension time anddramatically reduce costs. By minimizing thenumber of replacement parts, waste is minimized,
making this next-generation service environmentally friendly.

Overseas BusinessFor sustainable growth, we are strengthening our overseas expansion as wellas domestic expansion. In particular, we will expand our business bases mainlyin Southeast Asia and utilize our technical capabilities and educational andtraining know-how that we have cultivated in the Japanese market to handle
elevators and other equipment from multiple manufacturers, in order to expand
and grow in overseas markets.

Japan Elevator Service Sustainability Report 2022008

Growth Strategy
The JES Group has three growth strategies for sustainable enhancement ofcorporate value: "Increase domestic market share," "Strengthen modernization
business" and "Overseas strategy."

1 Increase Domestic Market Share
It is estimated that there are approximately 1.1 million elevators maintainedin Japan, with elevator manufacturers and their aﬃliates holding approximately
80% of the market share. About 20% are independent maintenance companies,
including the JES Group, and we are leading the expansion of their market
share.
In recent years, we have been strengthening our system in new areas, mainly
in western Japan, and have increased the number of maintenance contracts.
We will continue to provide high-quality, reasonably priced services andincrease our market share in Japan.
Table of Contents

JES

1.JES ProﬁleGrowth Strategy

Independents

2.Sustainability Management

As the number of maintenance contracts increases, demand for modernization
is expected to rise, and we are working to strengthen our modernization system
to capture this demand. In October 2017, we completed construction of the"JES Innovation Center (commonly known as JIC)" and in October 2020, the"JES Innovation Center Lab (commonly known as JIL)" in order to expand thenumber of units that can support modernization.

JIC

JIL

JES

Market share expansion
New acquisitions

2 Strengthen Modernization Business

Independents
New markets
Friendly M＆A

OEMs

OEMs

In addition, we have developed and started
service of our own control panel, Quick
Renewal, which achieves signiﬁcant "lowcost" and "short time". We provide environmentally friendly services with the minimum
amount of construction required.

3.Environment

３ Overseas Strategy

4.Social
5.Governance
6.GRI Standard Tables

The elevator maintenance and modernization market is expanding year afteryear, both in Japan and in Asian countries. We are expanding overseas basedon overseas market needs, market research, etc., and are aiming for a global
standard that balances new construction, maintenance, and modernization.
Currently, we are expanding our presence in Indonesia, Vietnam, and Malaysia, and are working to expand our presence in the ASEAN market.

Increase in number of locations
Oﬃces

64

locations
Before listing (end of 2016)

Oﬃces

129

locations(As of December 31, 2022)

Installation

Japan Elevator Service
Sustainability Report

Covered by JES Group

Covered by allianceModernization

Maintenance & Repair(any OEMs)

Japan Elevator Service Sustainability Report 2022
009

Medium-term Management Plan VISION2027
For the Next Five Years of Growth
In May 2022, JES Group formulated and announced its ﬁrst medium-term management plan. Our goal is to continue to grow our business, improve
proﬁtability, provide stable shareholder returns, and strengthen ESG management through our business to ensure continued sustainable growth.

Basic Strategy■ Accelerate growth with the goal of serving 150,000 units in 5 years,
double the current number of units under management.
■ Achieve sustainable growth and increased corporate value by adapting tochanges in the social environment as a company designated for the Prime
Market listing, while addressing social and global environmental issues.

Growth Strategy■ Grow sales of maintenance and repair services through expansion ofdomestic market share■ Capture demand for modernization due to an increase in the number ofmaintenance contracts■ Improve business productivity and operational eﬃciency and proﬁtability
through human resource development and the use of digital technology

Table of Contents
1.JES Proﬁle

VISION2027

2.Sustainability Management
3.Environment
4.Social
5.Governance
6.GRI Standard Tables

Japan Elevator Service
Sustainability ReportJapan Elevator Service Sustainability Report 2022010

2

Sustainability Management
サステナビリティマネジメント

Message from CEO

Representative Director CEO

Katsushi Ishida

Table of Contents
1.JES Proﬁle2.Sustainability Management
Message from CEO
Message from CFO

3.Environment
4.Social
5.Governance
6.GRI Standards Table

Japan Elevator Service
Sustainability Report

JES Group have been specializing in the maintenance of elevators andother equipment since our establishment in 1994 under the corporate
philosophy of "safety above anything else", "No cutting corners evenwhen others don't see it", and "Building on Trust". Because we are afabless company independent of manufacturers, we are able to provide
environmentally friendly, high-quality services at reasonable prices,and fulﬁll an important role and responsibility in the establishment of asustainable society.
As buildings become taller and more barrier-free in response to social
trends such as urban redevelopment and an aging society with adeclining birthrate, elevators have become one type of infrastructurethat is friendly to people. However, in order to protect the safety of ourcustomers and earn their trust, we, as an independent elevator maintenance company, have taken on numerous challenges and eﬀorts in
hidden areas, such as developing technologies that defy common
sense, providing 24-hour remote maintenance service, strengthening
the supply chain, and training human resources.
Thanks to these eﬀorts, we achieved record sales (29.75 billion yen)and operating proﬁt (4.11 billion yen) in the ﬁscal year ended March
31, 2022, despite the diﬃcult economic conditions caused by
COVID-19 and other factors. The elevator maintenance and modernization market is expanding year by year in Japan as well as in Asian
countries. Based on the safety and reliability know-how we have cultivated in the Japanese market, we are developing the global standardsof "maintenance and repair", "modernization" and "Installation" as our
mid- to long-term strategy to overseas markets, especially in Southeast Asian countries.
In advancing these social capitals of quality and product safety, ouremployees are the key to the growth of the JES Group.
We are committed to ensuring the safety and engagement of ouremployees by providing thorough "Technical Support" training, whichadds our own safety standards to those established in the elevator
industry, expanding career paths, introducing "STEP24," an in-house
qualiﬁcation system to improve technical skills, holding technical championships, and implementing an extensive training program thatenables career development regardless of gender or other factors.
Our eﬀorts and growth will contribute to environmental and social
issues, and we will work together with our stakeholders to create asustainable society.
We appreciate your continued support.

Message from CFO
Sustainability Chair
Director Deputy President and Executive Oﬃcer CFO
General Manager, Corporate Administration Headquarters
Sustainability Committee Chairman

Kimihiko Imamura

We established the Sustainability Committee in May 2022 and built anorganizational structure to further advance the sustainability of the JESGroup. The Sustainability Committee aims to manage and enhanceenvironmental and social risks in our business through a comprehensive overview of "ﬁnancial" and "non-ﬁnancial" information. Throughthis report, we report to our stakeholders what the JES Group has beenworking on.
Climate change is an issue that threatens the security of people acrossborders, whether in developed or developing countries. The increase ingreenhouse gas emissions, which is considered one of the causes ofclimate change, is believed to be contributing to global warming andhaving a signiﬁcant negative impact on natural ecosystems, etc., andrequires action by countries around the world.
Although our business produces fewer greenhouse gas emissions
than the manufacturing industry, we recognize that climate change
and other environmental issues are important issues. The Japanese
government has declared its commitment to achieving a decarbonizedsociety by taking on the challenge of becoming "carbon neutral by
2050," which would reduce overall greenhouse gas emissions to zeroby 2050. We agree with the declaration and are working to improve
product life cycles through maintenance, promoting the use of refurbished and recycled products, switching to LED lights, and solar power
generation in order to achieve carbon neutrality by 2050. We will
deepen these eﬀorts to solve social issues through our business andincrease both social and economic value.
At the same time, we consider "quality and safety" and "occupationalsafety engagement" as materiality (key issues), and are focusing onstrengthening quality control to ensure the safety and security ofusers. We believe that human resources are an important foundation
for quality and safety, and it is essential to ensure the safety of ouremployees and create an environment in which they can work comfortably and with a sense of fulﬁllment. We strongly believe that expanding
our human capital through securing and developing human resources
will lead to sustainable development in the future.
Our business model of providing high quality services at reasonable
prices has also built resilience in the unstable social environment
caused by the recent coronavirus outbreak and the rising cost of living
due to the situation in Russia and Ukraine.
We will continue to develop and provide environmentally friendly
services to deliver security and safety to all people living in an aging
society with a declining birthrate and urbanization.

Japan Elevator Service Sustainability Report 2022
011

Basic Sustainability Policy
Based on our corporate philosophy of "safety above anything else,""no cutting corners even when others don't see it" and "building on
trust," the JES Group has have identiﬁed two material issues, (1)"Quality and Safety" and (2) "Occupational Safety and Employee
Engagement," that we must give priority to while leveraging ourstrengths through our business activities, and we will work to realize asustainable society, aiming to be a company that is trusted and sought
after by our stakeholders.
We will fulﬁll the resolution of social issues through our corporate andbusiness activities, and contribute to the achievement of the SDGs
goals related to each materiality.

Materiality
Table of Contents
1.JES Proﬁle2.Sustainability Management(i) Quality and safety
We consider "maintaining quality" and "providing security" as our majorsocial responsibility, and aim to contribute to society by providing highquality and safe services that satisfy our customers.

Basic Sustainability Policy
Materiality
Management Structure

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

General Meeting of Shareholders
Election/dismissal

Board of Directors

3.Environment
4.Social
5.Governance
6.GRI Standards Table

ReportSupervise(ii) Occupational safety and employee engagement
We believe that the most important foundation supporting our business is
our human resources, and by ensuring the safety of our employees and bycreating an environment in which each and every employee can perform hisor her duties with ease and satisfaction, we will lead to the sustainable
development of the JES Group.

ReportSustainability Committee
Guidance

ReportDivisions, Group Companies

Japan Elevator Service
Sustainability ReportJapan Elevator Service Sustainability Report 2022012

Communication with Stakeholders
Stakeholders

Communication Channel
IR

Shareholders

Quarterly ﬁnancial summary
Financial results brieﬁng
General Meeting of Shareholders
WebsiteTable of Contents
1.JES ProﬁleMaintenance service

Customers

2.Sustainability Management

Control center

Examples of Engagement
For the ﬁscal year ended March 31, 2022, we paid a dividend of
14 yen per share. With regard to the future distribution of
surplus earnings, we will proactively work to return proﬁts toshareholders, taking into consideration our businessperformance, ﬁnancial condition, and investment plans from a
medium- to long-term perspective. In addition, we havecompletely revised our oﬃcial website (in English) to improveaccessibility so that shareholders and investors can easily
disclose and obtain the information they deem necessary forinvestment decisions.
Our goal is to expand into new areas in Japan and to expand
the market in existing areas.
We will continue to expand our provision of high-quality,
reasonably priced services throughout Japan to protect thesafety and security of elevators.

Website[Number of units under maintenance contract in Japan]
79,000 units as of March 31, 2022
87,000 units as of December 31, 2022

STEP24To expand our business, we will actively hire mainly technicalpersonnel and expand our training system.

Communication with Stakeholders

3.Environment
4.Social
5.Governance
6.GRI Standards Table

Technical Championship

Employees

Various training programs
Tiered training
Meister system

Wako City, Saitama:

Community
Japan Elevator Service

JIC（JES Innovation Center）
JIL（JES Innovation Center Lab）

[Number of JES Group employees]
1,618 of which technical personnel 1,003 as of March 31, 2022
1,792 of which technical personnel 1,098 as of December 31, 2022(based on annual securities report, excluding contract and part-time employees)

JIC/JIL has taken BCP measures such as securing emergency
power. It is also opened as a place for social studies tours forthe children who will lead the next generation. The facility iscertiﬁed as a "Baby's Station" under the Saitama Prefecture
initiative.

Sustainability ReportJapan Elevator Service Sustainability Report 2022013

3

Environment
環境Our Approach to the Environment and Communication
Our Approach to the Environment

Communication

In order to solve global environmental issues and in response to theglobal trend toward decarbonization, companies are expected to implement and sustain long-term environmental initiatives.
The JES Group recognizes that environmental issues, including
climate change, aﬀect business continuity, and the Sustainability Committee will work together to examine speciﬁc measures related toclimate change, including the content of responses to issues, indicators, and targets.
We will work to reduce greenhouse gas emissions throughout thevalue chain through the JES service system that has been implemented
to date, including taking the initiative in environmentally conscious
actions from management to all employees, and developing ideas andservices to address risks and opportunities.

We recognize the importance of expanding disclosure of environmental information in order to demonstrate sustainable corporate growth.
Strengthen disclosure of information on climate change and environmental management so that stakeholders can understand the safety
and security of our eﬀorts as the JES Group toward a carbon neutral
society by 2050 and information disclosure based on the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD).

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
Our Approachand Communication

4.Social
5.Governance
6.GRI Standards Table

Japan Elevator Service
Sustainability ReportJapan Elevator Service Sustainability Report 2022
014

Eﬀorts to Achieve Carbon
Neutrality by 2050

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
Eﬀorts to Achieve Carbon
Neutrality by 2050
Participation in Initiatives

In October 2020, the Japanese government declared its goal of
becoming carbon neutral, which means virtually eliminating greenhouse gas emissions by 2050. To achieve carbon neutrality, it is necessary to promote the reduction of greenhouse gas emissions.
The risks associated with climate change are expected to increase,and it has been pointed out that in Japan, water resources, natural
ecosystems, natural disasters, health, and industrial and economic
activities will be aﬀected.
Greenhouse gases that contribute to climate change are emitted as aresult of economic activities and daily life. Carbon neutrality is a decarbonized society in which all companies are working to create a sustainable economy and society.
Since its listing on the stock exchange, the JES Group's greenhousegas emissions have been on the rise as the number of locations has
increased in line with the growth in the number of maintenancecontracts, and the number of group companies has also increased
through mergers and acquisitions. However, GHG emissions per unit ofsales are trending downward due to our eﬀorts to improve businessproductivity.
We will take concrete and feasible measures to achieve carbon
neutrality in 2050.
■ Consider switching to renewable energy sources■ Examine measures for energy eﬃciency and conservation■ Optimizing the placement of an increasing number of oﬃces■ Consider gradual switch to more fuel-eﬃcient vehicles■ Reduction of greenhouse gas emissions through the use of recycled
and refurbished products

Participation in Initiatives

The JES Group is participating in initiative to encourage companies totake action and set ambitious goals for carbon neutrality, as well as
promote the initiative.
In accordance with their respective policies on "TCFD" and "SBT," weincorporate actions consistent with disclosure standards and futuregoals.
After review by the Sustainability Committee, we endorsed the TCFD
and made a commitment regarding SBTi (expressing our intention toestablish SBT within 2 years).

TCFD(Task Force on Climate-related Financial Disclosures)

In November 2022, we expressed our endorsement of the TCFD. In
addition to disclosing information based on the TCFD recommendations, wewill work to achieve environmental sustainability based on an analysis ofbusiness risks and opportunities based on these recommendations.

4.Social

SBTi

5.Governance(Science Based Targets initiative)

6.GRI Standards Table

Japan Elevator Service
Sustainability Report2050

In addition to measuring greenhouse gases in accordance with the
SBT, we announced in November 2022 that we would set targets
within two years. Although we have just begun measuring theseemissions, setting future reduction targets will clarify the JES Group's
commitment to these reductions.

Japan Elevator Service Sustainability Report 2022015

Disclosure Based on TCFD
Risks/Opportunities
O ppor t unit ies

Trans ition ris k
Policyand Law

Technology

MarketIncreased costs responding to stricter CO2 emission regulations
and others including introduction of carbon tax
Increased costs responding to increased renewable energy
deployment due to renewable energy policies
Increased costs to transition existing products and services tolower Co2 emissions
Increased development costs for technological investments to
reduce environmental impact
Increased costs to meet growing market and customer
demands for climate change

Eﬃciency

EnergySourceProducts
andService

Growing demand for recycled and refurbished products due tothe progress of the decarbonization trend in society
Reduce the amount of energy used in corporate activities,
reducing operating costs
Increased inquiries about recycled and refurbished products
from companies aiming to decarbonize their businesses
Increased inquiries about recycled and refurbished products
from companies aiming to decarbonize their businesses
Expanding orders for repair work on damaged elevators and other equipment

Table of Contents

Rising prices of procured goods due to accelerated decarbonization eﬀorts

MarketIncreased demand for recycled and refurbished products fromcompanies looking to decarbonize

1.JES ProﬁleRisk of lost sales opportunities in the event of delays in responding to customers' CO2 emission reduction needs

Resilience

Increased demand for maintenance services with BCP systems in place

2.Sustainability Management
3.Environment
Disclosure Based on TCFD

4.Social

Reputation

Risk of increased shareholder disclosure requirements for listedcompanies that are reluctant to disclose climate-related information

P hys ical Ris k
Risk of sales decline due to service delivery delays caused by damage tobusiness locations and supply chains as a result of weather-related disasters

Extreme changes in climatic and weather phenomena are expected

1.5℃ We will consider and implement speciﬁc measures in anticipation of an increase in emergency
response due to typhoons, ﬂooding, power outages, etc.

We assume that stricter GHG emission regulations, technological innovation, and a shift to new

２℃ energy sources will occur.

We will consider and implement speciﬁc measures to ensure that these reduce ﬁnancial risks andenhance opportunities in the JES Group's services.

４℃

We assume that physical risks will arise. Natural disasters, rising temperatures, and other factors
could adversely aﬀect infrastructure and increase electricity prices, among other risks. Speciﬁc
measures will be considered and implemented to mitigate the impact of electricity priceﬂuctuations caused by natural disasters.

5.Governance
6.GRI Standards Table

Japan Elevator Service
Sustainability ReportJapan Elevator Service Sustainability Report 2022
016

Response to Risk and Opportunities
Remote Inspection Service “PRIME”

JES-certiﬁed refurbished products

We are the only independent elevator maintenance company to oﬀer
a unique remote inspection service called PRIME (including remotediagnosis and monitoring).
Elevator operation and condition can be monitored remotely withaccuracy comparable to that of manufacturer-aﬃliated maintenancecompanies.
It enables early detection of signs of failure and response to failures
before they occur, thereby reducing downtime during inspections.

Refurbished parts are parts that have been repaired and serviced
from parts recovered at the time of replacement and have passed ourquality control tests. These are certiﬁed as "JES Authorized Refurbishment Parts".
The JES Group is promoting the refurbished parts by focusing on
obtaining recycled parts as part of its eﬀorts to ensure a stable supplyof parts and to address environmental issues.

Point1︓24 hours a day, 365 days ayear, maintenance on behalf of people

Point1: Stable supply of parts

Point2︓Monitor elevator operationand conditions

Point2︓Environmental eﬃciency

Fewer manned inspections reduce elevator
downtime

Address problems before they
happen/reduce failure rates

Table of Contents

Point3︓Detects small abnormalities that can lead to major problems, such as abnormal door
opening/closing and abnormal
steps

1.JES Proﬁle3.Environment

4.Social

This is JES Group's unique modernization service that achieves
signiﬁcantly lower cost and shorter time by replacing only the "control
panel," the brain (control tower) of the elevator.

We are promoting LED replacement of ﬂuorescent lamps used inelevators and escalators to help our customers reduce greenhouse gas
emissions.
The greenhouse gas reduction value based on the number of LED
lights replaced over the past year is approximately 950 tons.

Point1︓Construction takes about
half a day

Point1︓Cost reduction

Point2︓Less than half the cost

Point2︓Long life

By replacing only the necessary parts, wehave succeeded in reducing the cost to lessthan half that of conventional products(compared to our conventional products).

Sustainability Report

Only parts that have passed quality
standard tests are certiﬁed as refurbishedproducts, with warranty period

Promotion of LED replacement

Signiﬁcantly shortens elevator shutdown
time from about a week to about half a day

Japan Elevator Service

Point3︓Quality Assurance

Quick Renewal

5.Governance
6.GRI Standards Table

Reduces greenhouse gas emissions

Smooth restoration by being able to assess
the general situation prior to arrival on site

2.Sustainability Management

Response to Risk/Opportunities

Eliminates parts supply delays andensures a stable supply of parts

Point3︓Environmentally friendly

Environmentally friendly with minimal
waste as only the control panel is replaced,and energy is saved by replacing aging
control panels

Electricity costs can be reduced byapproximately 70% for elevators and 50%
for escalators on an annual basis
LED lighting should be replaced about 8
years for elevators and about 10 years for
escalators.

Point3︓Energy-saving andeco-friendly control panel only

Reduced energy consumption and CO2
emissionsJapan Elevator Service Sustainability Report 2022
017

Environmental Data
SCOPE1・2
4,000

14.8

16.0
14.2

3,500

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
Environmental Data

4.Social

13.4

12.9

14.0

12.5

3,000

12.0

2,500

10.0

2,000

8.0

1,500

6.0

1,000

4.0

500

2.0

0

March 2018

March 2019

Scope 1 (t-CO2)

Scope 2 (t-CO2)

March 2020

March 2021

0.0

March 2022

Emission per net sales (t-CO2/sales<100 million yen>)

5.GovernanceMarch 2018

6.GRI Standards Table

Japan Elevator Service

March 2019

March 2020

March 2021

March 2022

SCOPE1 (t-CO2)

1,416

1,640

1,817

1,981

2,356

SCOPE2 (t-CO2)

852

902

1,051

1,163

1,340

Emission per net sales(t-CO2/sales<100M yen>)

14.8

14.2

13.4

12.9

12.5

Net Sales (100 million yen)

153

179

213

244

296

Sustainability ReportJapan Elevator Service Sustainability Report 2022018

4Social社会

Contribution to Society Through Our Business
Based on our corporate philosophy of "safety above anything else,""no cutting corners even when others don't see it" and "building on
trust," the JES Group has have identiﬁed two material issues, (1)"Quality and Safety" and (2) "Occupational Safety and Employee
Engagement," that we must give priority to while leveraging ourstrengths through our business activities, and we will work to realize asustainable society, aiming to be a company that is trusted and sought
after by our stakeholders.
This section introduces the JES Group's contribution to society
through its business.

Quality and Safety Initiatives

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
Contribution to Society

Elevators continue to operate 24 hours a day, 365 days a year withouta break as social infrastructure used by many people in commercial
and residential facilities on a daily basis. Through our maintenancebusiness for elevators and other equipment, we look after the daily
accessibility and safe operation of users. To this end, we havepositioned quality and safety as key issues, and are striving to enhanceuser satisfaction by improving quality and technical capabilities andstrengthening research and development.
For quality and safety, we focus on organization and structure, andhuman resource development for this purpose. PRIME, a remote
inspection service, was developed using multiple patented technologies
to constantly monitor elevator operation and conditions to detect signsof failure, prevent problems before they occur, and restore service in ashort period of time. This is a service that only the JES Group can
provide as an independent maintenance company, and we areconstantly working to develop this service.
Elevator maintenance is done behind the scenes of social infrastructure under our corporate philosophy of "No cutting corners even whenothers don't see it," and we work tirelessly for the daily lives of users,
to solve their concerns and inconveniences, and to bring smiles to theirfaces.

Human Rights and Human Resources Initiatives
We believe that the most important foundation supporting ourbusiness is our human resources, and we ensure the safety of ouremployees and create an environment in which each employee canperform his or her duties with ease and satisfaction, which will lead tothe sustainable development of the JES Group.
The number of employees at the end of March 2022 was 1,618 andthe headcount is increasing due to the hiring of new graduates andmid-career workers in line with business growth. At the same time, we
promote the improvement of technical skills through various training
programs, such as our own in-house training program "STEP24."
To ensure that our employees can work with peace of mind, we haveestablished regulations regarding the prevention of harassment andfocus on human rights concerns through an internal reporting system.
In addition, we are practicing management with wellbeing in mind by
expanding our personnel system.
Diversity is not just about respecting the human rights and improving
the quality of life of people with disabilities, pregnant and parenting
mothers, and the elderly, but also about engaging our employees, who
are the key players in creating a barrier-free world through theirservices.
Our eﬀorts include ensuring the safety of our employees, creating asystem that allows for a variety of comfortable work styles, accepting
a diverse workforce, and a human resource development plan thatallows all employees to play an active role in the company.

5.Governance
6.GRI Standards Table

Japan Elevator Service
Sustainability ReportJapan Elevator Service Sustainability Report 2022
019

Quality and Safety
Basic Policy

Quality Improvement Activities

Based on the corporate philosophy of "safety above anything else","no cutting corners even when others don't see it" and "building on
trust", JES Group, as an expert company specializing in maintenance,puts safety ﬁrst and foremost and strives to build relationships of trustwith its many customers.

Quality control results, which are tabulated monthly, are analyzed by
the Technical Division and other operating companies to reduce breakdowns. In addition, a meeting is held semi-annually for technical managers from all operating companies to share information face to face,conﬁrm failure trends, and horizontally deploy their experiences.

Quality Control

Actions to Realize Medium-term Management Plan

Identify failure trends at each oﬃce

We strive to reduce breakdowns by analyzing breakdown trends ineach region and implementing countermeasures. These eﬀorts have
improved technical capabilities and site conditions, and also reduced
working hours.

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment

Maintenance and Inspection Manualand Inspection Check Sheet

Manuals and check sheet are formulated
based on guidelines established by the
Ministry of Land, Infrastructure, Transport
and Tourism and manufacturers' technicaldata. We conduct inspections with higher
accuracy and stricter standards by utilizing
our own technical data and statistical datafrom our experience cases.

Establishment of a trouble-shooting
desk (help desk)

5.GovernanceCentralizing technical consultation in one
location has the following advantages:
early completion of breakdowns, creationof an environment in which technicalpersonnel can easily consult, and securing
time oﬀ for oﬀ-duty technical personnel.

6.GRI Standards Table

Response to prolonged breakdowns

4.Social
Quality and Safety

Japan Elevator Service
Sustainability Report

Information on long-time breakdowns
such as conﬁnements and stoppages at
9:00, 13:00, and 17:00 is shared within
the company, and telephone follow-up anddispatch response are conducted to reduce
long-time breakdowns and restore thesystem as soon as possible. By visually
identifying "when," "where," and "whatkind of malfunction" is occurring, thesystem aims to reduce the time customers
are unable to use the elevator by providing
prompt approach and follow-up.

Quality Control System
Board of Director
Direction

ReportTechnology Headquarters

In preparation for the increase in the number of maintenancecontracts to realize the medium-term management plan, we plan toestablish a Quality Control Section in all operating companies in 2024
as an organization under the direct control of the JESHD Quality
Department. To this end, we will provide education through the "Meister System" and deploy trained technical personnel throughout thecountry. As a pioneering step, quality control sections were establishedat three operating companies in the Kanto region in April 2022 and areoperating on a pilot basis.

Meister System

The Meister System is a system for recruiting personnel from operating companies nationwide and quickly developing next-generation
executive candidates for quality control operations.
By taking steps to deal with diﬃcult and advanced repair sites, theprogram is designed to hone role performance skills while gaining quality experience, and to acquire and strengthen further knowledge,
attitude, skills, and habits.

Strengthen quality control to realize mid-term management plan

Analyze and formulate actions for improvement

Quality Assurance Division
Support

Share

ReportQuality Assurance Division

Group companies

Japan Elevator Service Sustainability Report 2022020

Improvement of User Satisfaction
Four services that only the JES Group can provide
We aim to improve the satisfaction of all customers, including building and building managers and end users(i) Remote inspection and diagnosis“PRIME”(iii) Integration of security cameras and digital signage“LiftSPOT”"PRIME" is a service that remotely monitors elevator operations and conditions 24 hours a day, 365 days a year from acontrol center, detecting even minor abnormalities to provide
safety and peace of mind. We have acquired multiple patented
technologies and can respond across manufacturer boundaries.

"LiftSPOT" is a digital signage system equipped with a security
camera. In addition to enhancing security in the elevator, thesystem delivers a variety of content to improve the safety andcomfort of the elevator space.
There is no initial or monthly fee for maintenance or modernization subscriptions.

(ii) Low cost and short construction time
“Quick Renewal”(iv) Multi-level parking lot maintenance andmodernization“Mechanical Parking Equipment”

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
Improvement of User Satisfaction

5.Governance
6.GRI Standards Table

Japan Elevator Service
Sustainability Report"Quick Renewal" is a service that enables signiﬁcant"low-cost" and "short-term" construction by replacing only thecontrol panel, which is the control tower of the elevator.
Elevator re-installation work, which normally takes more thana week, can be completed in as little as half a day. Since only
the necessary parts are replaced, in addition to being low-cost,the system reduces waste, is environmentally friendly, andsaves energy.

We also oﬀer multi-story parking garage maintenance, which
can reduce costs by up to 50% compared to conventional manufacturer maintenance by integrating a single point of contact
with elevator maintenance. We accept a wide range of models,
including simple elevators, transverse elevators, elevator
types, gondola types, and underground circulation types.

Japan Elevator Service Sustainability Report 2022
021

Response to Disasters
Disaster Management System and Initiatives

Response to Disasters

In preparation for disasters, each group company conducts annual
disaster drills, simulating everything from receiving power to making
arrangements. In addition, as part of advance preparations, we
conﬁrm the maintenance of customer information and the preparationof necessary equipment such as a ﬂood recovery set. In accordancewith the JES Group Disaster Manual, in the event of a disaster, the ﬁrst
priority is to ensure personal safety, including that of family members,
while acting in accordance with the roles of each department according
to the level of activation.

Post-disaster response
Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
Response to Disasters

In the event of an earthquake, typhoon, or other disaster, the disasterlevel is determined based on the situation and a disaster response
headquarters is set up.
The headquarters immediately activates the disaster system to assessthe disaster situation.
We have also introduced our own web-based reception system, WES(Web Entry System). Because WES uses Internet lines, it can beaccessed without congestion even during disasters, when telephonelines tend to be congested. Quick communication of information
ensures that emergency calls are accepted.

Emergency power supply (JES Innovation Center)As part of its BCP eﬀorts, the JES Innovation Center (JIC) has installed
an emergency power supply equipped with solar power generation andis ready to operate 81 hours a day in the event of an emergency.

Customer

JES Group

Contractor or local reporting / Contact

WES (Web Entry System), a web-based reception system for disasters
Connect and contact via 2D code

*WES will be activated at our discretion based on the scale of the disaster,
the situation, and the aﬀected area.

Control Center
When a disaster occurs, inquiries and reports are transmitted from various locations to the control center via telephone and WES.

Determine disaster level
Depending on the situation and scale of the disaster, determine the details of the initial response system and disseminate information to employees.
Use it as a guide for optimal action.

(Earthquake)(Typhoon)

Level 7

Seismic intensity 6 or higher――

Level 6

Seismic intensity around over 5 to 6

Evacuation Advisory Issued

Level 5

Seismic intensity below 5

The storm is directly overhead and the typhoon is "very strong."

Level 4

Seismic intensity 4

The storm is directly overhead and JMA "warning" is issued.

Level 3

Seismic intensity 3

Storm watch area is not a direct hit, or a JMA "warning" is issued

Level 2

Seismic intensity 2 or lower

Not a direct hit to the area and takes about 48 hours or more to reachLevel 1

Normal conditions

Normal conditions

Establish disaster headquarters according to level. Emergency work if it is at night or on weekends or holidays.

5.Governance
6.GRI Standards Table

Rescue and recovery work
Rescue and restoration work is performed from properties with a high degree of urgency, mainly from the perspective of human life or vulnerable populations.

Activate disaster system
The Disaster Response Headquarters centrally manages the status of properties through the Disaster Response System. The status of reception,
the number of units stopped and restored, rescue/restoration workers, supervisors, etc., are monitored as needed, and eﬀorts are made to rescue andrestore units as quickly as possible.

Japan Elevator Service
Sustainability Report

Disaster drill

Normal time Each operating company conducts annual disaster drills in preparation for disasters. Under the assumption that an earthquake of intensity

4 has occurred, simulations are conducted to determine whether there are any deﬁciencies in the response to incoming calls from
customers and restoration arrangements.

Pre-Disaster
Preparation

When typhoons, heavy snowfalls, etc. can be predicted in advance
Properties that have been ﬂooded or aﬀected by typhoons in the past will be entered into the in-house system and shared internally.
Contact the contractors of properties that need to be shut down in advance of a typhoon or other disaster, and if possible, post a sign andshut down the property.

Japan Elevator Service Sustainability Report 2022
022

Respect for Human Rights

Basic Concept
The JES Group, based on the premise that its corporate activities
support and respect the protection of internationally agreed-upon
human rights, stipulates in its Code of Conduct that it will ensure ahealthy work environment free from harassment or discrimination on
the basis of race, creed, ethnicity, gender, religion, nationality,
language, physical characteristics, property, place of origin, or any
other grounds. The Company prohibits harassment, discrimination,and human rights violations in its anti-harassment regulations, andprovides employees with educational guidance.
We will take necessary measures promptly and appropriately when aproblem arises with an employee.

Internal Audit Oﬃce
Audit &
Supervisory
Board

Compliance
Committee

Internal Reporting
Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
Respect for Human Rights

5.Governance
6.GRI Standards Table

Japan Elevator Service
Sustainability Report

The Company has established an internal reporting system. By establishing a system for the proper handling of consultations and reportingof misconduct and legal violations, we strive to ensure the early detection and correction of misconduct and to maintain public conﬁdence inour company. The reports received are processed as appropriate andreported to a full-time Audit & Supervisory Board member.

System to Prevent Harassment
We are fully aware that noncompliance, including harassment, canshake the foundation of management, and have established compliance rules. A "Compliance Committee" has been established to prevent
compliance violations and to respond to violations.
To create an environment where harassment does not occur, we
conduct harassment training and make every eﬀort to prevent harassment.

Internal
Reporting
Window
Divisions ・ Subsidiaries

Initiatives by Compliance Committee○Formulate and revise compliance rules and regulations○Implement harassment training

Respect for Human Rights in Overseas Operations
We are developing our overseas business with a focus on ASEAN. As
stipulated in our Code of Conduct, we ensure a healthy work environment based on respect for human rights. Women, children, the elderly,
indigenous peoples, immigrants, ethnic or racial minorities, and othervulnerable individuals and groups in society are given special attention
and conﬁrmation because they are more likely to be aﬀected by humanrights violations.

Japan Elevator Service Sustainability Report 2022
023

Human Resources and Training
Basic Concept
The JES Group believes that the recruitment and development of
human resources with diverse values and abilities is extremely important for sustainable growth and development, and will place particularemphasis on the following initiatives.

Recruitment
In order to achieve sustainable growth and realize our mid-term
management plan, we hire a large number of employees, both new
graduates and mid-career workers, regardless of their experience inthe elevator business. With the increase in the number of contracts,
our main focus is on technical personnel who perform elevator maintenance, but we are also hiring sales and administrative personnel.

Human Resource Development
Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment

Our competitive advantage lies in our ability to provide advanced
support for multiple elevator manufacturer models, and we recognizethat human resource development is a top priority to ensure elevator
safety. To this end, we are implementing the following concepts andhuman resource development initiatives.

We train multi-specialists who can handle
all types of models from major manufacturers

4.Social

5.Governance

Increased career paths, improvement of technical skills throughan in-house qualiﬁcation system

G1

DeeperskillsTechnical
Championship
Evaluate daily training throughskillscompetition,raiseawareness of the group's
goals, and to provide the best
technical services to users

Meister System
Swift development of
next-generation
managers for quality
control

G2
G3

Qualiﬁed

G4
G5

Start

Train engineers to be trusted as human beings,
not only in technical skills but also in business manners

Provide training by job level(training and education for employees in Japan)

6.GRI Standards Table

Sustainability Report

STEP24(In-house Qualiﬁcation System)

We invite outside lecturers to provide education and training incommon sense, manners, and behavior as a member of society, inorder to learn essential business manners as a member of society
before becoming an engineer. We train service experts who are notashamed to go anywhere and who can be trusted as human beings byacquiring common sense in speech and behavior and then acquiring
specialized know-how.

Human Resources and Training

Japan Elevator Service

which must be cleared before a person can take charge of a site alone
or provide emergency response during nights and holidays. This
ensures that the properties under our clients' care are managed byengineers who have the knowledge and skills to guarantee safety.
Furthermore, we have established the G1 and G2 qualiﬁcations, which
visualize the knowledge and skills accumulated by our engineers as
points, and the Meister System, which trains specialists to deal withserious failures, in an eﬀort to develop engineers with advanced technical skills and safety awareness.

Elevator and escalator maintenance requires specialized knowledge
and skills. The JES Group's training program is designed to develop
multi-specialists who can handle a wide range of models, and is basedon the know-how of skilled engineers who are familiar with the modelsof each of the major manufacturers and their many years of experience.
We have also introduced our own evaluation qualiﬁcation system forengineers. The basic qualiﬁcations are divided into three levels: G5(Elevator Safety Work Qualiﬁcation), G4 (Elevator Semi-Maintenance
Qualiﬁcation), and G3 (Elevator Maintenance Qualiﬁcation), all of

We conduct training for newly appointed managers and position-speciﬁc training targeting a deﬁned position hierarchy in order to achieve
further organizational strength by strengthening middle management,
to curb retirement by improving management skills and communication with subordinates, and to quickly develop candidates for future
management of operating companies. Starting with business etiquette,
we customize a wide variety of items from year to year, including leadership, coaching feedback, use of the PDCA cycle, logical thinking,evaluator training, business writing, and more. In the ﬁscal year ended
March 31, 2022, a total of 319 employees participated in the training
program, bringing the total number of participants to 1,138 since theprogram began.

Japan Elevator Service Sustainability Report 2022
024

Diversity & Inclusion
Basic Concept

Employee Diversity

In order for the JES Group to continue its sustainable growth in anever more rapidly changing social environment, it is crucial to secure
human resources with a variety of values suited to the business, and it
is extremely important that employees, regardless of gender, age, etc.,
are able to maximize their abilities and play an active role in the company. In addition, with Japan's declining birthrate and aging population, it is more essential than ever to utilize a diverse workforce.

Number of JES Group Employees

1,618＊JESHD and consolidated subsidiaries＊As of March 31, 2022

Promotion of female activities

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
Diversity & Inclusion

5.Governance
6.GRI Standards TableIn the spirit of the Equal Employment Opportunity Law and thegender equality of the SDGs, the number of women employed has
increased since its listing on the TSE, creating gender equal opportunities.
Since we are in the elevator maintenance business, we have a highpercentage of technical personnel, most of whom are male.
However, the number of female employees in sales and administrative positions is also increasing, and we are striving to provide work
opportunities and a work environment in which employees can play anactive role regardless of gender.
In addition, we have a personnel system that supports childbirth andchildcare, and after returning to work, we oﬀer ﬂexible work styles andenvironments.

Sustainability Report

Foreigners 8

Person with 25
Disabilities

Working with the elderly

In light of the arrival of an aging population, securing a workforce has
become a challenge. Employees who wish to continue working after
the retirement age of 60 are rehired as contract employees thereafter.
Since the eﬀects of age vary greatly from person to person, we arepromoting the creation of a comfortable workplace with employment
forms and job descriptions suited to diverse personalities and abilities
so that employees who have reached retirement age can continue towork while maintaining their motivation and health.

Number and Percentage of Female Employees
400

Employment of people with disabilities
Our goal is to build a society in which each individual, regardless of
disability, can play an active role in accordance with his or her own
desires and skills. We promote the employment of people with disabilities with the aim of creating a work environment in which all employees help each other.

250

In Japan, the number of young workers is decreasing due to thefalling birthrate and aging population. Hiring foreign workers is expected to solve the problem of worker shortages that companies face.
Although no issues of worker shortages have arisen at this time as aresult of recruitment and human resource development to date, we willconsider hiring foreign nationals in light of social conditions and otherfactors.

20.0%
18.0%

350
300

Employment of Foreigners
Japan Elevator Service

Female 267

16.0%
14.0%
12.0%

200

10.0%
8.0%

150

6.0%

100

4.0%

50
0

2.0%

March 2018

March 2019

March 2020

Number of female employees

March 2021

March 2022

0.0%

Percentage of total

Japan Elevator Service Sustainability Report 2022
025

Creating a Good Work Environment

Support system for childcare, nursing care

Work Environment

Pregnancy

With reference to the "Comfortable Workplace Guidelines" of the
Ministry of Health, Labor and Welfare, we are improving the workplaceenvironment by enhancing facilities for managing the work environment and recovering from fatigue. We form a comfortable work environment where employees are less likely to feel tired and stressed
about the workplace where they spend most of their time.
In June 2022, we completed construction of company housing in
Wako, Saitama Prefecture, where JIC/JIL is located. In addition toemployee beneﬁts, we are improving our services in the event of adisaster by improving access to our control center.

Maternity leave(6 weeks)

DeliveryChildcare

Maternal health care period

1 yr old 2 yrs old 3 yrs old

Nursing care
Elementary
18 yrs old
schoolMaternity leave
Childcare leave(8 weeks)

Nursing care leave

Exemption from overtime work

Exemption from overtime work

Short working hours for childcare (6 hours/day)*note 1

Short working hours for nursing care(6 hours/day)

Limited overtime work

Limited overtime work

Restrictions on late-night work

Restrictions on late-night work

Child nursing care leave (5 or 10 days/year)

Nursing care leave (5 or 10 days/year)

Childcare allowance (5,000 yen/month/person)
Child allowance (12,000 yen/month/person)(Note 1) In addition, two incremental requests for childcare time of 30 minutes each may be made.

Fair Evaluation and Beneﬁts
Basic Concept

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
Creating a Good Work Environment
Fair Evaluation and Beneﬁts

5.Governance
6.GRI Standards Table

Japan Elevator Service
Sustainability ReportCompany housing (completed in 2022)

The JES Group clearly deﬁnes its goals and the mission of the organization, and the actions taken to achieve them are also subject toevaluation. By linking the personnel evaluation system with organizational goals, employees themselves can work with a sense of purpose,
which also contributes to improved business performance.
In addition, feedback of personnel evaluation results leads toincreased motivation and voluntary skill improvement, contributing to
the revitalization of the entire organization.

Support for Flexible Work Styles
The spread of coronavirus infection was the catalyst for a change inthe way we work. Technical personnel are encouraged to go directly
home and back to the site depending on the region, and the introduction of telework has enabled employees, mainly in administrative
positions, to work from home, supporting ﬂexible work styles.

Establishment of systems for childcare, nursing care
To enable employees to balance work and childcare/nursing care withpeace of mind, we are working to improve the workplace environmentby enhancing our support system for balancing work and childcare.
In addition, employees with children receive childcare allowance(5,000 yen/month/person) until the ﬁrst March 31 after the childreaches 3 years of age, and child allowance (12,000 yen/month/person) until the ﬁrst March 31 after the child reaches 18 years of age.
(12,000 yen/person/month) until the ﬁrst March 31 after the childreaches 18 years of age, and other support is provided in accordancewith the stage of life.
With regard to nursing care, the Company provides support to enable
employees to continue working by oﬀering nursing care leave, shorter
working hours for nursing care, and a nursing care leave system.

Grades

Personnel
System
Evaluation

BeneﬁtJapan Elevator Service Sustainability Report 2022026

Occupational Safety and HealthGroup Health and Safety Management
The JES Group Safety and Health Committee has been established,
and representatives from each operating company gather once amonth to fully investigate and deliberate on measures that should
serve as the basis for preventing possible hazards and health problems
for workers (causes of industrial accidents and measures to prevent
recurrence, etc.).
By sharing information from each operating company, we strive tonormalize safety awareness and unify safety throughout the Group.

Main management
methods

Safety Licensing
SystemforTechnical Engineers

Health and safety management for operating company
Table of Contents
1.JES ProﬁleEach operating company has its own Health and Safety Committee,
which appoints a health manager, a safety manager, a safe driving
manager, and a ﬁre prevention manager, and conducts thoroughinvestigations and deliberations once a month on basic measures toprevent possible hazards and health problems for workers.

2.Sustainability Management
3.Environment

LegendGroup
Op. Cos

4.Social

Chief Safety and
Health ManagementOﬃcer (Chairperson)

Deputy-chairman

Occupational safety and health

6.GRI Standards Table

Healthsupervisor

SafetySafe driving Fire prevention
supervisor supervisor supervisor

Operating companies
Japan Elevator Service

A safety licensing system is in place to ensure that on-site
technical engineers acquire knowledge and skills. JES technicalengineers are not allowed to work without a safety license. The
prescribed points are issued for violations of safety obligations,work-related accidents, and traﬃc accidents in the past three
years. Points are also issued for violations of the duty of care forsafety during regular in-house safety patrols and on-site inspections by the Safety Promotion Division. If the total number ofpoints reaches a certain standard, the safety license is suspended, and the punishment is not lifted until the safety training
course is taken and safe work is conﬁrmed through on-sitepractice for a designated period of time.
This safety licensing system is designed to improve the safety
awareness of our technical engineers.

Risk assessment

Through risk prediction activities and toolbox meetings, weestimate risks on a daily basis and strive to take risk reduction
measures in daily operations (inspections, inspections, construction work, breakdown response, etc.). The Health and Safety
Committee has established a system to prevent occupational
accidents throughout the Group by compiling and sharing information on high-risk operations from each operating company.

VR equipment
to simulate
occupational
accidents

We have introduced a VR-based training curriculum for on-siteengineers. The purpose of this program is to raise safety awareness by making participants feel as if they were in a disasterthemselves, which they would not normally be able to experience.

On-sitesafety work
conﬁrmation

Field engineers are in charge of the ﬁeld after going through
STEP24 training, obtaining various in-house certiﬁcations, andnecessary special safety training.
Our dedicated Safety Promotion Section staﬀ conducts
unannounced daily on-site and workplace inspections to ensurethat work is being performed in accordance with safety regulations, and to conﬁrm that on-site engineers are performing safe
work.

Regularhygienetraining

The Health and Safety Committee assesses the health anddisaster prevention plan, and ensures that all Group employees
are thoroughly educated to raise awareness of health and safety
in the workplace environment by disseminating the plan within
the committee, posting topics on the company website, lecturesby industrial physicians, and site and workplace inspections by
the Health and Safety Committee members.

Mental health care

We aim to create a workplace environment in which each andevery Group employee is physically and mentally sound and canwork with a sense of fulﬁllment. We understand that mental
health, in particular, is one of the most important issues forcompanies, and as part of this eﬀort, we provide self-carethrough e-learning, conduct stress checks, and provide all
employees with stress-related materials. We also provide training
for managers by industrial physicians, and focus on care throughthe line, such as early detection of ailing employees.

Secretariat

5.Governance

D esc r i pt i o n

Industrial
physicianSustainability ReportJapan Elevator Service Sustainability Report 2022027

Social and Community Activities

The JES Group aims to coexist with local communities by conducting social
contribution activities through its business.
JIC/JIL, located in Wako, Saitama Prefecture, is an innovation center with ahigh-rise elevator test tower, but also contributes to society through thefollowing initiatives
1. Based on the Regional Future Investment Promotion Act, Saitama

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
Social and Community Activities

5.Governance
6.GRI Standards Table

Japan Elevator Service
Sustainability Report

Prefecture's "Regional Economic Traction Business Plan" was formulated
and approved in August 2019. The objectives of the "Regional Economic
Traction Project Plan" are: (i) to strategically develop an environment inwhich companies in the prefecture with superior technological capabilities can advance into growth areas and make further progress; (ii) tofurther promote the location of advanced and next-generation industries
with large economic impact, and food manufacturing and distribution
processing industries with large employment impact.

2.

The city of Wako, where the facility is located, certiﬁed us as a Wako
City Corporate Citizen in May 2018. We mainly practice the following civic
activities:"Environmental protection" :North sidewalk planting"Community Development and Local Community": Establishment of "Baby Stations""Social Welfare": Commissioning of some plant management to people with disabilities
through the Wako City Council of Social Welfare

3. In cooperation with the local ﬁre department, we open our test tower

for rescue drills and training by the neighboring ﬁre department andconduct evacuation drills under the guidance of the Wako City Fire
Department.

4. Bus service is provided jointly with neighboring facilities.
5. Vending machines for disaster vendors have been installed to provide

free drinking water in the event of a disaster.

In addition, we plan to establish an innovation center (tentative name:Kansai JIC) in the Kansai region to support business expansion in the westernJapan area.
Plans include opening the parking lot as a temporary evacuation site so that
local residents can be assisted in the event of a disaster, installing electricaloutlets that can be used from outside the building to charge cell phones,
making Wi-Fi available free of charge, and installing a well on the premises toprovide water in the event of a disaster.

Japan Elevator Service Sustainability Report 2022028

Social Data

Employee Data

March 2018

March 2019

March 2020

March 2021

March 2022

Employees by

Male

876

955

1,053

GenderFemale

122

138

181

216

267

12.2%

12.6%

14.7%

15.5%

16.5%

998

1,093

1,234

1,398

1,618

(persons)(female participation)

Total

1,182

1,351

[Scope] Japan Elevator Service Holdings Co., Ltd. and consolidated subsidiaries

Diversity

March 2018

1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
Social Data

5.GovernanceRatio of female managers

March 2020

March 2021

March 2022

13

11

15

15

23

7.3%

5.9%

7.4%

6.7%

8.7%

15

14

17

23

25

5

6

8

Female managers (persons)

Table of Contents

March 2019

Persons with disabilities (persons)Foreign employees (persons)

45[Scope] Japan Elevator Service Holdings Co., Ltd. and its consolidated subsidiaries in Japan (excluding companies made subsidiaries through M&A)

Employment Data

March 2018

March 2019

March 2020

March 2021

March 2022

New graduate recruitment

33

32

52

64

71

Mid-career recruitment

104

137

168

168

214

Total

137

169

220

232

285

[Scope] Japan Elevator Service Holdings Co., Ltd. and its consolidated subsidiaries in Japan (excluding companies made subsidiaries through M&A)

6.GRI Standards Table
Occupational safety and health

March 2018

March 2019

March 2020

March 2021

March 2022

Percentage of employees taking paid leave

51.7%

56.6%

46.8%

47.7%

60.3%

Number of work-related accidents

13

15

11

23

16

[Scope] Japan Elevator Service Holdings Co., Ltd. and its consolidated subsidiaries in Japan (excluding companies made subsidiaries through M&A)

Japan Elevator Service
Sustainability ReportJapan Elevator Service Sustainability Report 2022029

5

Governance
ガバナンスCorporate Governance
Basic Concept

Basic Policy

The JES Group recognizes that strengthening corporate governance is
one of the most important management issues in order to continuously
increase corporate value and achieve management stability.
We will place particular emphasis on strengthening oversight of management, ensuring compliance, and prompt, accurate, and fair disclosure of information to all stakeholders, and will further enhance theseeﬀorts.

1.

Ensure that the rights of shareholders and the equality of shareholders are substantially secured,
2. Strive for appropriate collaboration wiith various stakeholders,
including employees, customers, suppliers, creditors, and local
communities,
3. Disclose corporate information in an appropriate manner and strive
to provide information that is highly useful,
4. The Board of Directors shall endeavor to properly fulﬁll its roles andresponsibilities in light of its ﬁduciary responsibility and accountability to shareholders, and
5. Engage in constructive dialogue with shareholders in order tocontribute to the sustainable growth of the company and theenhancement of its corporate value over the medium to long term.

Corporate Governance Structure
Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
5.GovernanceCorporate Governance

6.GRI Standards Table

Board of Directors

The Board of Directors, consisting of nine
directors (including three outside directors),
meets once a month in principle for the
purpose of making decisions on importantmatters related to the company's business
operations, matters required by law, and otherimportant management matters.

General Meeting of Shareholders

Audit & Supervisory Board

The Audit & Supervisory Board is composedof one full-time Audit & Supervisory Board
member and two part-time Audit & Supervisory Board members (including two outside
Audit & Supervisory Board members). In
principle, the Audit & Supervisory Board meetsonce a month, and when necessary, the Audit& Supervisory Board members hold discussions to exchange opinions. The Company
strives to ensure that directors' compliancewith laws, regulations, the Articles of Incorporation, and rules, as well as operational andaccounting audits, are conducted eﬀectively.

Board of Directors

Audit &
Supervisory
Board
Accounting
auditor

Representative director
Internal
Audit
Oﬃce

Japan Elevator Service
Sustainability ReportCompliance
Committee

Sustainability
Committee

Group Management
Meeting

Divisions - Subsidiaries

Internal Audit Oﬃce

In accordance with the annual internal audit
plan, all divisions and subsidiaries are audited
for rationality, eﬃciency, appropriateness, andappropriateness of business execution. Audit
results are reported to the Representative
Director, who instructs the person in charge ofthe audited department to make improvements, and monitors the status of improvements through follow-up audits and othermeans.

Nominating andCompensation
Committee

Internal
ReportingOﬃcers and employees

Japan Elevator Service Sustainability Report 2022
030

Policy on Directors' Remuneration
Matters Concerning the Amount and the Method for
Calculating Directorsʼ Remuneration
Remuneration for directors (excluding outside directors) consists of"base remuneration" and "non-monetary remuneration, etc.," which isintended to provide incentives to continuously improve the Company's
corporate value and to promote further value sharing with shareholders. JES Group's ﬁxed remuneration for directors is calculated within
the limits of the remuneration for directors approved by the General
Meeting of Shareholders, and is determined by the Representative
Director with the discretion of the Board of Directors, based on factors
such as the (i) duties for which they are responsible, (ii) responsibilitiesand (iii) performance, and in consultation with the Nomination andCompensation Committee.
The remuneration of Audit & Supervisory Board members is determined by consultation with the Audit & Supervisory Board within thelimits of the remuneration of Audit & Supervisory Board members
approved by the above-mentioned shareholders' meeting.

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
5.Governance

Remuneration, Compliance etc,

6.GRI Standards Table

Japan Elevator Service
Sustainability ReportCompliance
Basic Approach to Compliance Risk

The Compliance Committee has been established as a body foraddressing compliance eﬀorts. The Committee is composed of thedirector in charge, the general manager, the general manager of theInternal Audit Department, full-time Audit & Supervisory Board members, and representative directors of subsidiaries, and meets whenevernecessary. This committee reports and discusses the status of internalreporting and compliance activities.

System of Compliance
Each operating company has designated a compliance manager. The
head oﬃce of the committee conducts a hearing once a month with theperson in charge of compliance, and conducts periodic checks, including reminders to ensure that no action has been omitted. In addition,
when a compliance-related problem arises, the company is required toreport it to the Compliance Committee of the Holdings on the sameday, without waiting for periodic conﬁrmation, thereby establishing asystem that allows the Holdings and operating companies to work
together to quickly resolve the problem.
In addition, as an initiative at the holding company, regular meetings
are held once a week to share information on compliance issues. The
Compliance Committee also meets four times a year, bringing together
managers from Holdings and all operating companies to provide aforum for the exchange of information on compliance matters.

Anti-Corruption
Basic Concept
JES Group and its oﬃcers and employees are committed to conducting business activities in an ethical manner. We will not tolerate bribery
or corruption in any form and will comply with applicable laws prohibiting bribery and corruption ("anti-corruption laws").
Violations of anti-corruption laws can have serious consequences,including large ﬁnes, imprisonment or jail time, loss of public trust, andbusiness losses.
We will require third parties who work for us, such as agents, consultants, advisors, sales representatives, suppliers, and contractors, toact in compliance with anti-corruption laws at all times.

Tax Policy
The JES Group sets a tax policy. The tax redistribution function is an
essential part of society in all countries and regions, and tax reportingand payment in accordance with each country's tax system are regarded as important issues to be considered. We not only understand andcomply with international frameworks such as the OECD Transfer
Pricing Guidelines and the BEPS Action Plan, as well as all applicable
tax laws and regulations in each country and region, and ﬁle tax
returns and pay taxes appropriately, but also ensure that our employees are fully aware of these laws and regulations to prevent any violations from occurring. At the same time, we are building a risk management system by identifying and appropriately handling tax risks.

Supplier Management
The JES Group aims to contribute to sustainable development and theresolution of environmental and social issues. In conducting businessactivities in various areas, including the supply chain, it is essential not
only to comply with laws and regulations but also to act in accordancewith high ethical standards. We are committed to building sustainable
relationships with our business partners, vendors, suppliers, consultants
and contractors for mutual development by actively working to correct
trade and business practices that hinder such development.

Japan Elevator Service Sustainability Report 2022
031

Basic Policy on Information Security
The JES Group is continuously working to strengthen its information
management and operational structure and other systems to prevent
information leaks and security incidents.
In addition to countermeasures against external attacks (cyberattacks, malware, ransom attacks, etc.), we also take measures
regarding information leaks from within to ensure continuous operation.
In order to implement the above initiatives, we have established andare operating an Information Security Policy.

Privacy Policy

Table of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
5.Governance
Infomation Security, Privacy, IP

We have established rules for the protection of personal informationand speciﬁed personal information to appropriately protect personal
information, personal numbers, and other speciﬁed personal information handled by the company in the course of conducting its business,prevent leaks, and appropriately use such information.
When the management of personal information, etc., is entrusted toa third party, we require that the third party to which we entrust the
management of personal information, etc., also comply.

R&D and Intellectual Property
Basic Concept

The JES Group recognizes the importance of intellectual property
rights and strives to comply with related laws and regulations, respects
the intellectual property of others, and ensures that its own intellectual
property is repaired and properly managed.
We also aim to create products that are ﬂexible and oﬀer appropriate
proposals to the common sense of the elevator industry. We areconducting research and development to oﬀer our customers multiple
options, including price and duration.
We do this as part of our business growth, mainly in research anddevelopment, so that intellectual property can be protected and usedeﬀectively.
A management department has been established in the Development
Division to compile information on R&D, related products, and relatedcompanies, and to obtain intellectual property rights.
Through further investment in intellectual property and intangible
assets, we will accelerate our technological innovation and enhance
our corporate value over the medium to long term.

Major Intellectual Property

Dialogue with Shareholders
In order to gain the understanding and trust of our shareholders andinvestors, we promote proactive investor relations activities and strive
to disclose information on management policies, strategies, andbusiness performance in a timely and appropriate manner. We also
strive to reﬂect the opinions and results of dialogue with our shareholders and investors in our management.

6.GRI Standards Table

Japan Elevator Service
Sustainability ReportJapan Elevator Service Sustainability Report 2022
032

6

GRI Standards Comparison Table
GRIス タ ン ダ ード 対照表

GRI Standards Table

General Disclosures
Reference

GRI102:General Disclosures
1.Organization proﬁleTable of Contents
1.JES Proﬁle2.Sustainability Management
3.Environment
4.Social
5.Governance

6.GRI Standards Table

Reference

GRI102: General Disclosures
4.Governance102-1 Name of organization
102-2 Activities, brands, products and services
102-3 Location of headquarters
102-4 Location of operations
102-5 Ownership and legal form
102-6 Markets served
102-7 Scale of the organization
102-8 Information on employees and other workers
102-9 Supply chain
102-10 Signiﬁcant changes to the organization and its supply chain
102-11 Precautionary principle or approach102-12 External initiatives

1.JES ProﬁleProﬁle/Philosophy/VISION

102-29 Identifying and managing economic,

2.Sustainability Management Materiality

1.JES ProﬁleBusiness Domains of JES
Proﬁle/Philosophy/VISION

102-30 Eﬀectiveness of risk management proesses

2.Sustainability Management Materiality

1.JES Proﬁle
1.JES Proﬁle
1.JES ProﬁleProﬁle/Philosophy/VISION
Proﬁle/Philosophy/VISION
Financial Highlights

1.JES ProﬁleProﬁle/Philosophy/VISION

1.JES Proﬁle4.Social
5.GovernanceDiversity & Inclusion-

Supplier Management---

3.Environment

Participation in Initiatives
Disclosure based on TCFD

102-13 Membership of associations--

102-14 Statement from senior decision-maker2.Sustainability Management Message from CEO

2.Strategy

102-15 Key impacts, risks, and opportunities
3.Ethics and integrity

Message from CFO

2.Sustainability Management Materiality

3.Environment

Disclosure based on TCFD

1.JES Proﬁle102-16 Values, principles, standards, and norms of behavior
102-17 Mechanism for advice and concerns about ethics 5.GovernanceCorporate Philosophy

102-18 Governance structure102-19 Delegating authority
102-20 Executive level responsibility for economic, environmental, and social topics 102-21 Consulting stakeholders on economic, environmental, and social topics 102-22 Composition of the highest governance body and its committees
102-23 Chair of the highest governance body102-24 Nominating and selecting th highest governance body102-25 Conﬂict of interest
102-26 Role of highest governance body in setting purpose, values, and strategy 102-27 Collective knowledge of highest governance body 102-28 Evaluating the highest governance bodyʼs performance -Corporate Governance Report

4.GovernanceComplianceCorporate Governance Report
Corporate Governance Report
Corporate Governance Report
Corporate Governance Report
Corporate Governance Report
Corporate Governance Report
Corporate Governance Report
Corporate Governance Report
Corporate Governance Report
Corporate Governance Reportenvironmental, and social impacts

3.Environment

Disclosure based on TCFD
Disclosure based on TCFD

102-31 Review of economic, environmental, and social issues
102-32 Highest governance bodyʼs role in sustainability reporting
102-33 Communicating critical concerns
102-34 Nature and total number of critical concerns
102-35 Remuneration policies
102-36 Process for determining remuneration
102-37 Stakeholdersʼ involvement n remuneration
102-38 Annual total compensation ratio
102-39 Percentage increase in annual total compensation ratio

2.Sustainability Management Sustainability Management Structure102-41
102-42102-43102-44-

5.Stakeholder engagement102-40 List of stakeholder groups

Collective bargaining agreements
Identifying and selecting stakeholders
Approach to stakeholder engagement
Key topics and concerns raised

6.Reporting practice

2.Sustainability Management Sustainability Management Structure

5.Governance
5.GovernanceCorporate GovernanceCorporate Governance-

Annual Securities Report-

Annual Securities Report-

Annual Securities Report---

2.Sustainability Management Communication with Stakeholders-

2.Sustainability Management Communication with Stakeholders
2.Sustainability Management Communication with Stakeholders
2.Sustainability Management Materiality

Scope of This Report102-45 Entities included in the consolidated ﬁnancial statements Editorial Policy
Editorial Policy
102-46 Deﬁning report content and topic Boundaries Editorial Policy
2.Sustainability Management Materiality
102-47 List of material topics
102-48 Restatements of information
102-49 Changes in reporting
PeriodEditorial Policy
102-50 Reporting period
102-51 Date of most recent report
Schedule
Editorial Policy
102-52 Reporting cycle
Contact
102-53 Contact point for questions regarding the report Editorial Policy
GRI Comparison Table
6.GRI Standards Table
102-54 Claims of reporting in accordance with the GRI standards
GRI Comparison Table
6.GRI Standards Table
102-55 GRI content index
102-56 External assurance

GRI103: Management Approach
103-1
103-2
103-3

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コーポレート・ガバナンス報告書
Reference

Explanation of the material topic and its Boundary 2.Sustainability Management Materiality
The management approach and its components 2.Sustainability Management Sustainability Management Structure
Evaluation of the management approach

2.Sustainability Management Sustainability Management Structure

Japan Elevator Service
Sustainability ReportJapan Elevator Service Sustainability Report 2022033