JERA GROUP CORPORATECOMMUNICATION BOOK 2022
(Integrated Report)

From Japan to the worldJAPAN’S ENERGY FOR A NEW ERA

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MissionTo provide cutting-edge solutions to the world’s
energy issues
Through our global operations we bring the world’s leading energy

Value Creation
Infrastructure

Financial andCorporate Information

VisionTo scale up its clean energy platform of renewables
and low greenhouse gas thermal power, sparking
sustainable development in Asia and around the world

solutions to Japan, helping to solve the energy issues facing the

To achieve decarbonization over the middle and long term while securing

country. We seek to establish new energy supply models for Japana stable electricity supply, JERA will, in addition to strengthening

while also offering energy supply models established in Japan to otheroperations of the thermal power generation business it has cultivatedcountries that face similar energy issues, helping to solve the world’s

over the years, establish a clean energy supply platform that utilizes

energy issues.

digital technology to combine renewable energy and low greenhouse gas
thermal power. By providing Asia and the world with a platform that
achieves both supply stability and decarbonization, JERA aims tocontribute to the sound growth and development of the world andmaximize its corporate value.

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Table of Contents / 01 Mission and Vision
Editorial Policy
02 Table of Contents / Editorial Policy

About this Report

Value Creation

03 JERA and the World
04 JERA and Japan
05 Financial and Non-Financial Highlights
07 Message from the Chair
11 Message from the President
15 The World Around JERA: The Impact of Global Trends on JERA—Challenges and Opportunities
17 Value Creation Process
19 JERA Zero CO2 Emissions 2050: Committed to Achieving Zero CO2 Emissions acrossDomestic and Overseas Operations
JERA Zero CO2 Emissions 2050 Roadmap for Its Business in Japan

20
21 Zero-Emissions Thermal Power
25 Material Issues
27 Information Technology (IT) / Digital Transformation (DX)
Strategies

Value Creation
Infrastructure

30 The Management Capital Behind Our Value Chain and Growth
31 Business Strategies
31 Business Development
33 Optimization
35 O&M Engineering
37 Initiatives at Thermal Power Plants in Japan
39 Message from the CFO on Financial Strategy
45 Response to TCFD Recommendations
51 ESG Management
53 Environment
56 Talent Development
57 Diversity & Inclusion
58 Talent Development: “DEI” is the Source of Solutions and Innovations
59 Diversity & Inclusion: Creating an Organization that Honors Individual Strengths
61 Communication with Employees
62 JERA Work Design
63 Human Rights
64 Coexisting with Local Communities
66 Safety and Health
68 Stakeholder Engagement
69 Corporate Governance
71 Corporate Governance: The Strong Board of Directors Behind JERA’s Autonomous

communication with stakeholders. In FY2021, this integrated report comprised financial andnon-financial information, including our specific initiatives toward achieving JERA Zero CO2 Emissions
2050. Now, in FY2022, we are expanding on the non-financial information, including our zero-emission
thermal power and domestic thermal power plant initiatives, messages from outside directors, and areview of JERA’s material issues. We have tried to convey how departments and employees at JERA
collaborate and work together to solve social issues and enhance corporate value, touching on bothfinancial and non-financial perspectives in a way that is easy to understand. This report has been
confirmed by our Sustainability Promotion Committee, which is chaired by the president and reports
directly to the Board of Directors. It is meant to spark dialogue with our stakeholders, and yourfeedback is greatly appreciated.
Notes on Predictions
This report includes statements regarding the JERA Group’s plans, strategies, and performance
forecasts that are based on currently available information and subject to risks, uncertainties, andother factors beyond our control. Please note that actual future business performance, the businessenvironment, and more may differ from the content in this report.

Scope of this Report

JERA Co., Inc., and JERA Group Companies (All mentions of “the company,” “we,”and “our” in this report refer to JERA Co., Inc. unless otherwise noted.)

Reporting Period

FY2021 (April 1, 2021–March 31, 2022)
Some sections may include activities after FY2021.

Date of Publication

December 2022 (FY2023 report scheduled for November 2023)

Reference Guidelines• International Integrated Reporting Framework, International Integrated Reporting
Council• Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue forCollaborative Value Creation, Ministry of Economy, Trade and Industry (METI)• Sustainability Reporting Standards 2016/2018, Global Reporting Initiative• Environmental Reporting Guidelines 2018, Ministry of the Environment• ISO 26000• Recommendations of the Task Force on Climate-related Financial Disclosures (Final
Report), Task Force on Climate-related Financial Disclosures (TCFD)

For Questions About
This Report

Finance Group, JERA Co., Inc.
Nihonbashi Takashimaya Mitsui Building 25th Floor
2-5-1 Nihonbashi, Chuo-ku, Tokyo 103-6125, Japan
TEL: +81-3-3272-4631 (Main)

Management System

79 Financial Data
81 Non-Financial Data
83 Thermal Power Plants in Japan / Overseas Businesses & LNG Suppliers
84 List of Group Companies
85 Organizational Chart / Corporate Overview

Financial andCorporate Information

The JERA Group Corporate Communication Book was first published in FY2020 to promote

72 Risk Management
75 Information Security
76 Compliance
78 Directors & Officers
Financial andCorporate
Information

Value Creation
Infrastructure

Cover image of the Ichthys LNG Project kindly provided by INPEX Corporation

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JERA and the WorldJERA was founded on April 30, 2015, as a joint venture and comprehensive alliance between what was then known as the Tokyo Electric Power Company, Inc., and Chubu Electric Power
Co., Inc., bringing together the entire supply chain from fuel upstream operations and procurement to power generation and sales. We consolidated all of our existing thermal power
generation enterprises in April 2019, becoming an energy company that leads Japan in power generation capacity and ranks among the highest in the world in fuel transaction volume.
As a global company capable of solving the world’s energy problems, JERA is committed to leading the way in creating a zero-carbon society.

n Major Global Engagements n LNG Suppliers n Major Global Subsidiaries n Major FY2021 Projects and Future Key Engagements
Hydrogenious LOHC Technologies(hydrogen solutions)
JERA Power International B.V.

UK
Germany
RussiaNetherlands

JERA Americas Inc.
JERA Energy America LLC

US

El Sauz Wind Power Project

Freeport LNG Project

Qatar
UAE
Oman

LNG Transaction Volume(annual)*1

Bangladesh
TaiwanIndia

Thailand

Vietnam≈37

Mexico30

Aboitiz Power(power generation)

Overseas businesslocations

Malaysia
Singapore

JERA Asia Pte. Ltd.
JERA Global Markets Pte. Ltd.

≈

MTPA

Philippines

JERA Power(Thailand) Co., Ltd.

Number of overseas
projects

10+Countries

Overseas power
generation capacity(output share)*2

≈

10.6

GW

Renewable energy
output share

≈

1.7

GW

Indonesia
Papua New Guinea

Barossa/Caldita(gas field development)

Overseas Power Generation Business Portfolio*1
Australia
JERA Australia Pty. Ltd.

Other
1%
North andCentral America

29%
Asia
56%
14%

Middle East

As of March 31, 2022
*1. FY2021*2. Includes in-progress construction

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JERA and Japan● Thermal Power Plants■ LNG Terminals

Thermal power
plants■ Coal Bases

26

Net sales*1

4.4

trillion yen

8.7

Power generation
capacity*2≈
Western Japanpower grid
60 Hz

66

Number of employees(consolidated)

Total assets*1

5,062

trillion yen

Power generation
output*1,*2

247.3

GW

LNG storage tankcapacity*3

6.65

TWh

million kL

Eastern Japanpower grid
50 Hz≈30% of country total#1 in Japan≈30% of country total

Sea of Japan

Japan’s Largest Power-Generating Companies by Domestic Share*1

Pacific Ocean

JERA

28.6%

Company A

East China Sea

10.9%

Company B

7.2%

Company C

7.0%

Company D

6.6%

As of March 31, 2022
*1. FY2021*2. Includes in-progress construction. Domestic
figures exclude joint thermal power holdings.
*3. Includes joint projects with other companies in
Chita and Yokkaichi

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Financial and Non-Financial Highlights
As announced in April 2019, JERA is targeting a consolidated net income of 200 billion yen by FY2025. We are pursuing a number of initiatives toward this goal, and in May of this year, thecompany formulated and announced its financial strategy and operation targets. We aim to achieve controlled growth and maximize corporate value by achieving medium- to long-term
decarbonization while ensuring a stable supply, thanks to active participation from a diverse and inclusive workforce and pertinent corporate governance, among other measures.

Financial Information
Net sales

Period profit attributable to shareholders (including/excluding time lag*)■ Profit attributable to shareholders(Billion Yen)
5,000
4,000

3,280.0

3,000■ Profit excluding time lag(Billion Yen)
300

4,435.2

2,000

168.5

157.8

359.3

200

2019

2020

2021

(FY)

0

2019

2020

(FY)

2021

Although large net losses were incurred in FY2021 with the impact of soaring fuelprices and costs carried over due to the depreciation of the Japanese yen, net
profit (excluding time lag) increased significantly due to trends such as increased
profits in the trading business that seized on resource price fluctuation andrecovery from the impact of COVID-19 on the previous fiscal year.
*Profits or losses attributable to delays between fuel price fluctuations and when they
are eventually reflected in sales prices

Cash flows from operating, investing, and financing activities(CF)/free cash flow

ROIC■ OCF ■ CFI ■CFF

Free cash flow

7.3

8

500

6

0

3.2

3.7

–500

2

–310.8–452.0

340.8

2020

2021

(FY)

Although ROIC improved in FY2021 due to a significant increase in profits in the
trading business as a result of soaring and fluctuating resource prices, we willcontinue our efforts to improve capital efficiency to reach our target of ≈ 4.5%
by FY2025.
ROIC = {Net profit*1 + Interest expense × (1 − Effective tax rate*2)} ÷ (Interest-bearing
liabilities + Net worth*3)*4*1. Excluding time lag*2. Using the company’s effective tax rate (figures listed in the Financial Statement)*3. Total net assets − Non-controlling interests*4. Average at the beginning and end of the period–1,50068.7 89.5–272.0EBITDA = Earnings before interest and taxes* + Depreciation and amortization +Interest expenses*Excluding time lag

Interest-bearing liabilities / Net debt-to-equity ratio

2,000–661.0

2020

2021

(FY)

2021

EBITDA also increased in FY2021 due to the stable earnings from our thermal
power and gas business in Japan and a significant increase in earnings from thetrading business due to the surge in resource prices.

3,000–340.4

Net debt-to-equity ratio (horizontal axis)(Ratio)
1.5

1.2
0.7
1,505.91.2
0.9

2,646.5

0.6

0.6

1,613.2

1,000–1,001.4

2019

2020

4,000

–1,0002019

2019(Billion Yen)
5,000

871.7
551.6
240.8

0

■ Interest-bearing liabilities (vertical axis)(Billion Yen)
1,000

(%)
10

0

292.8

24.6

Net sales had been hovering ≈ 3 trillion yen, but in FY2021, sales reached 4.4
trillion yen due to increases in the trading business and the volume of electricity
sold. By segment, domestic thermal power and gas businesses account for the
majority, followed by the fuel and overseas power generation businesses.

4

610.8

400

111.6

90.0

100

1,000
0

(Billion Yen)
800

277.0

600

200

2,730.1

EBITDA(FY)In FY2021, in addition to negative operating cash flow due to factors such as
time lag and margin reserve increases at trading subsidiaries, there wasnegative free cash flow of ≈ 1 trillion yen due to an increase in cash flow frominvesting activities (CFI) stemming from the overlap of large-scale investments.

0

0.3
2019

2020

2021

(FY)

0

Although interest-bearing liabilities increased significantly in FY2021 due toshort- and long-term fund procurement to deal with time lag and large overseas
investment projects, we are managing our balance sheet to achieve a net
debt-to-equity ratio of 1.0 or less by FY2025.
Net debt-to-equity ratio = (Interest-bearing liabilities − Cash and deposits) ÷ Net worth**Total net assets − Non-controlling interests

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Financial and Non-Financial Highlights

Non-Financial
FY2021 domestic power generation output(by fuel type)Coal

55.0 (22%)
Japan-wide
power
generation
outputFY2021 Scope 1 CO2 emissions / CO2
emission intensity (Japan)

Renewable energy output share

Overseas power
generation

(GW)
2.0

23.60 (15.1%)

Total

TWh

million t-CO2

30

LNG

192.3 (78%)

Domestic power
generation

131.76 (84.5%)

Note: The FY2020 total
emission intensity from thermal
power generation in Japan was
0.565 kg-CO2/kWh.

CO2 emission
intensity: 0.505
kg-CO2/kWh

Employees(consolidated)

1.0

5,062

≈1.7

1.5

155.89TWh

Approx.
% ofJapan’s total power
generation output

0.53 (0.3%)
Total

247.3

863.6

Fuel upstream andtransportation

Employee figures (consolidated for FY2021)

≈1.1

329

≈1.2
Employees(JERA only)

Employees(JERA only)

0.5
0

Women

2019

2020

3,910

Men

3,581

2021 (End of FY)

We are responsible for approximately 30% of the power
generated by domestic electric utilities. A large portion ofthis comes from LNG, which has low CO2 emissions.

As part of JERA Environmental Target 2035, we aim to
reduce domestic CO2 emissions relative to FY2013 by
60% by FY2035.

We will expand our wind and solar power generation
business in Japan and overseas by promoting large-scale
renewable energy development that leverages ourstrengths.

We respect each employee’s diversity and individuality
and work to foster an open and fair corporate culture anda work environment where everyone feels comfortable.

Number of mid-career hires (by gender)

Number of women in management /Percentage of managerial positions held by
women

Number of outside directors in FY2021

FY2021 Board of Directors

As of March 31, 2022

As of March 31, 2022

■ Men

■ Number of women in management (vertical axis)
Percentage of management positions held by women(horizontal axis)(%)(People)■ Women(People)

150

60

131

40

72
12

50

21
0

16
2019

5

6

4.2

33

100

5.0
3.5

32

36

4

25
98

2

20

60
2020

2021

(FY)

We are actively hiring people with diverse backgrounds
and advanced expertise not yet represented at JERA sothat we can enter new business arenas in the future.

0

2019

2020

2021 (End of FY)

Outsidedirectors

3 of these directors comefrom outside of JERA andits shareholders

Diversity on the
Board of Directors

5

1 2

10

10

woman,

foreignnationals

0

Based on the principle of taking full advantage of diverse
values and ensuring fairness, we believe in actively
providing opportunities for female employees and work todemonstrate their abilities.

In addition to JERA-employed executive directors anddirectors who have come from our shareholders, wehire outside directors in order to ensure a diversity ofknowledge, experience, and other qualities among theBoard of Directors.

We believe that a diverse Board of Directors leads tobetter business decision-making and have made efforts toappoint women and foreign nationals to the board.

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Message from the Chair
We are committed to sustainable development around theworld by ensuring a stable power supply and promoting
decarbonization amid a challenging business environment.
JERA’s Origin Story
JERA was established in 2015 to function as a comprehensive alliance throughout the supply
chains of the Tokyo Electric Power Company (TEPCO) and the Chubu Electric Power Company(Chubu), from fuel upstream and procurement to power generation. Since then, we haveintegrated our businesses in stages, culminating in the 2019 integration of our existing thermal
power generation business to complete our full value chain. The story behind our establishment
begins with the Great East Japan Earthquake of 2011, a disaster that marked a significant shift inJapan’s energy policy. The increasing role of thermal power generation in ensuring a stable power
supply has forced the country to rely more and more on other countries to compensate for its lackof resources. The most pressing issue was finding ways to deliver a stable power supply to Japan,
even as competition for resources intensified around the world. At the time, the executives of
TEPCO and Chubu were convinced that like-minded companies were better off working together
to resolve the issue, and their determination fueled discussions about forming an alliance. The
result was “Japan’s Energy for a New Era,” or JERA, as we’re commonly known. Our company
was established with relentless drive and resolution to provide Japan with a stable energy supply
by becoming a major global player in the highly competitive worldwide energy market.
We fully recognize the gravity of the current business environment. Economic sanctions
following Russia’s invasion of Ukraine have caused energy resource prices to surge, and demandfor electricity in Japan is threatening to outstrip supply. In response, we have spared no effort toensure a stable electricity supply throughout the country by gradually restarting power plants after
long-term planned shutdowns, replacing obsolete plants, and securing fuel as needed from ouraffiliated energy trading partners.
It is precisely in times like these that we must return to our founding principles. My leadershipas chair is based on JERA’s guiding philosophy of providing Japan with a stable power supply amid
fierce competition around the globe. As I tackle a host of management issues, I continue toToshihiro Sano

consider where we come from to know where we need to go.

Chair, Representative Director

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Message from the Chair

A New Vision to Adapt to the Rapidly Changing Business Environment
In May 2022, we established a new vision for the year 2035 that clarifies our new long-term goals,
factoring in the steady progress we made in our first three years of full-scale operations, as well
as global decarbonization efforts and sweeping changes in energy security. The new vision setsout specific initiatives for achieving decarbonization over the longer term while continuously
ensuring a stable energy supply. Furthermore, it encapsulates our intent to contribute tosustainable development by providing a clean energy platform in Asia and other parts of the world
to pursue decarbonization and enjoy a stable supply of energy to fuel their growth.

MissionTo provide cutting-edge solutions to the world’s energy issues

VisionTo scale up our clean energy platform of renewables and low greenhouse gas
thermal power, sparking sustainable development in Asia and around the world

Japan presents a clear path forward. It guides our current initiatives and has increased thepotential for collaboration and cooperation with a broader range of stakeholders.

A Highly Effective, World-Class Approach to Corporate Governance
We have always claimed to be a company that competes on the world stage. Consequently, we

A Roadmap Proving JERA’s Ability to Lead the Way to Decarbonization

aim to meet international standards of corporate governance, the foundation of any global player.

Just two years after unveiling JERA Zero CO2 Emissions 2050, we have already begun specific

Our Board of Directors, Leadership Panel, and auditors continually push each other to perform, butefforts to achieve net zero CO2 emissions from our operations in Japan and abroad by 2050. As a

I believe we are only halfway there. We must aim for a more robust system of governance bycompany with global operations centered on thermal power generation, it was a huge decision forseparating management and executive functions. One way to do this, for example, is to increase

us to steer toward decarbonization. Discussions by the Board of Directors lasted the better part of

the number of outside directors on the Board of Directors.

a year. Some were reluctant to design, let alone announce, such a detailed roadmap with so many

When directors from different backgrounds serve on the board, discussions become more

technical and economic issues to overcome. However, after a lengthy debate, the whole board

varied and more effective. We are working to further improve the board’s effectiveness byrealized the need to show the world our proactive commitment to zero emissions and reached aproactively providing information on matters including domestic media coverage and trends in theunanimous decision to publish the roadmap. Our aim to usher in a new era of energy makes us

global LNG market to spark discussions around the situation in Russia and Ukraine, supply

uniquely capable of such bold decisions. That said, we cannot achieve this challenging and lofty

shortages in Japan, and other events and changes in the business environment that impact ourgoal alone. To achieve zero CO2 emissions, we must work with many different stakeholders toenterprise. We also supplement the functions of the board through Directors’ Discussions on

introduce innovative technologies and establish supply chains. Our roadmap for our business inimportant topics as well as through conversations by committees that include outside experts on

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Message from the Chairenvironmental, social, and corporate governance (ESG), digital transformation (DX), trading,operations in an effort to ensure sustainability. Looking ahead, we intend to probe deeper into

technological strategies, and other areas.

training the next generation of management, assisting employees in their career paths, and more.

Diversity in the Workforce

where their work falls under JERA’s mission and vision. Toward that end, we intend to boost our

Since my appointment as chair, I have maintained that ensuring diversity is vitally important.

employees’ sense of satisfaction with their work by developing clearer job descriptions for all andHaving a diverse workforce is essential for making sure the right people are where we need themdemonstrating how the actions of departments and JERA Group members interrelate.

Further, to channel the strengths of our diverse talent, everyone must develop an awareness of

to be given the global spread of our operations, which includes everything from upstream fueldevelopment and procurement to transport and power generation. In these circumstances, ourCompanies Exist to Contribute to Society

need for more opportunities for women compared to other global companies is a major

I believe that companies exist to contribute to society, but right now, people are asking what thatshortcoming. In response, we are creating more opportunities for women to become engaged

really means. These contributions are not made in an attempt to seek external validation. I ask

and supporting programs for talent development. In April 2022, we appointed our first female

how we can contribute to Japan as well as to other countries and regions around the world. In my

executive officer to manage our promotion of diversity and inclusion. As we accelerate this trend,view, the ideal contributions to society are the answers companies and business leaders find

we will continue to promote women to department heads and other managerial positions towhen they grapple with this question in earnest. Our origin and mission are perfectly aligned withcreate an environment where women can thrive.

this approach.

In addition to diversity in leadership, we have codified our succession plan and launched

The energy landscape has changed dramatically in the recent past, making it more difficult thanever to provide Japan with a stable supply of affordable energy. As such, we are committed tocontributing to society by providing a consistent supply of energy. That, I believe, is our role as acompany serious about resolving societal issues. We will also extend our contributions beyond
Japan into Asia and the rest of the world. I am convinced that continuing such efforts is one way
we can earn the respect of society and enhance our corporate value.
We ask for the continued support of all our stakeholders as we move forward with steadydetermination and accountability in this challenging business environment.

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LNG facility at Futtsu Thermal Power Station (award-winning photo in power plant’s contest)
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Message from the President
We are trailblazing a path to decarbonization and ensuring astable energy supply amid trying times.
Background of Our New Vision and JERA Environmental Target 2035
Since establishing the JERA mission and vision in 2019, we have promoted a number of initiatives
both domestically and internationally with the medium-term goal of becoming a global leader inlarge-scale renewable energy and LNG value chain businesses by 2025. Meanwhile, the energy
business faces major changes, including stricter regulations on fossil fuels around the world as
the world grapples with climate change.
Against this backdrop, JERA — Japan’s largest power generation company— has announced
JERA Zero CO2 Emissions 2050, a commitment to achieve net zero CO2 emissions by 2050
through zero-emission thermal power generation using renewable energy and fuels that do notemit CO2. This long-term endeavor to realize our mission and vision doubles as an affirmation ofaction that informs the world of our intent to become a global leader.
In May 2022, we established a new vision based on our steady progress on our ammonia
co-firing plan and other initiatives to achieve zero CO2 emissions. This vision also considers thevolatile energy situation attributable to developments such as the Russia-Ukraine conflict. The new
vision has three components: stable supply, decarbonization, and growth. We generate roughly
30% of Japan’s electricity and thus have a responsibility to provide a stable supply. At the sametime, we aim to leverage digital technology and optimization and combine renewables with low
greenhouse gas thermal power to build a clean energy platform that provides a stable, affordable
energy supply that is not reliant on natural conditions. Additionally, we plan to expand these
initiatives overseas to contribute to sustainable growth and development in Asia and other parts of
the world. While demand for electricity is expected to continue to grow alongside national
economies in Southeast Asia and the rest of the continent, the international community is rapidly
moving toward decarbonization. Ideally, our clean energy platform will ensure a stable power
supply—the foundation of economic growth — while pursuing decarbonization over the longer
term. We believe this platform will allow us to meet the needs of Southeast Asian countries
seeking to expand their economies and reduce CO2 emissions.

Satoshi Onoda
President

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Message from the President

To realize our new vision, we have added depth to our existing environmental targets for2030 in addition to creating JERA Environmental Target 2035, a new goal to reduce CO2
emissions from operations in Japan by at least 60% from FY2013 levels by FY2035. We set thistotal CO2 emission reduction target to demonstrate JERA’s commitment to leading the way to a
low-carbon society.

Ammonia Co-Firing: Updates on Testing and Foreseeable Challenges
From October 2021 to July 2022, we conducted tests of low-volume ammonia co-firing at Hekinan
Thermal Power Station Unit 5. We burned ammonia in an active power plant to study its effects onburner materials and gain other insights. We plan to increase the volume of ammonia and conduct
demonstration tests at Hekinan Thermal Power Station Unit 4 starting in FY2023 to study the
combustion conditions in the boilers and the impact of the ammonium combustion on all power
generation facilities. We have also begun developing a burner capable of handling a mix of fuels
comprising at least 50% ammonia.
One of the challenges in introducing ammonia is to establish a supply chain for stableprocurement. To use a mix of 20% ammonia at a 1GW coal-fired power plant, for example, would
require roughly 0.5 million tons of ammonia per year — half the amount currently consumed inJapan. As we aim to launch full-scale operations at a co-firing rate of 20% by the late 2020s and at

supply chain on such a large scale, we will need to form alliances that stretch beyond the energy

least 50% by the 2030s, we will need an unprecedented amount of ammonia. To build a new

industry. We recognize the need to swiftly establish a next-level supply chain for fuel ammonia
rather than attempting to adapt the existing means of distributing ammonia for industrial use andfertilizers. Accordingly, we are already looking into collaborating with ammonia manufacturers andother companies in Japan and abroad to secure a reliable supply.

Impact of the Russia-Ukraine Conflict and Power Shortages
The situation surrounding energy has become increasingly complex in the past several years. In
Europe, conditions were relatively favorable for making renewable energy stable and affordable,
exemplified by the westerly winds that blew year-round and a robust international power grid.
Fittingly, renewables accounted for a sizable percentage of the electricity mix. However, in thesummer of 2021, wind speeds were unusually low, hobbling offshore wind power generation andforcing providers to turn to thermal power generation to compensate. This increased demand fornatural gas and triggered a persistent rise in gas prices. Russia’s February 2022 invasion of
Ukraine made matters worse, driving national governments to reduce their reliance on Russian
Co-firing tests with a fuel mix containing 20% ammonia are scheduled to begin in FY2023 at Hekinan
Thermal Power Station, Japan’s largest coal-fired plant, located in the city of Hekinan in Aichi Prefectureenergy and further exacerbating an already fiercely competitive energy market. A global energy

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Message from the President

shortage and sharp rise in resource prices ensued. The situation surrounding procurement

power plants totaling 6,660 MW between FY2022 and FY2024 with the aim of maintaining

remains unpredictable, and we will continue to monitor trends closely.

long-term supply capacity and conserving the environment.

Additionally, with electricity deregulation ramping up competition and a substantial supply of
renewables coming online, power companies throughout Japan are progressively shutting down

New Ways of Working for Employees and Their Families

uncompetitive, obsolete resources because they are increasingly difficult to maintain.

In 2019, the vast majority of our employees were seconded from TEPCO and Chubu; by 2021,

Furthermore, uncertainty in fuel procurement and other developments have prompted concern

roughly 90% of them had decided to transfer to JERA. We have introduced a unique humanover a nationwide power supply crunch in the winter of 2022. We will do everything in our power

resources system while recruiting new graduates and mid-career professionals for a wealth ofto help improve the balance between supply and demand. Specifically, we will make every

talent from diverse backgrounds, mainly experts from the business and corporate sectors. Our HR

possible effort to respond to tenders for additional supply capacity by general electricity

and recruitment system is job-based, with straightforward job descriptions to secure diverse

transmission and distribution utilities. We will also launch a series of state-of-the-art thermal

talent and improve retention rates, even in an increasingly fluid labor market.

Further Initiatives to Provide a Stable Power Supply

plants to gain experience, create opportunities for engineers to interact with each other, and take

We also assign some employees involved in power generation operations to other power

Restarting idle
thermal power
plantsReplacingthermal power
plants• Ended long-term planned shutdown of Sodegaura Thermal Power Station Unit 1 andcompleted preparations for operation on April 17• Contributed to a stable power supply by restarting Anegasaki Thermal Power Station
Unit 5 and Chita Thermal Power Station Unit 5, consistent with supply-demand balancing
measures for the peak summer period announced in June 2022
• Selected as the winner of a tender for additional capacity by transmission system
operators (excluding Hokkaido and Okinawa) as a balancing measure for the winter of
FY2022, and began preparing to restart units experiencing long-term planned shutdowns(Anegasaki Unit 5, Chita Unit 5, Chita Daini Unit 1, Yokkaichi Group 4 Units 4 & 5)
• Contributed to a stable power
supply through the steady
replacement of thermal power
generation facilities totaling
roughly 6,660 MW

additional steps to stimulate exchange across disciplines, departments, and companies. Although
we initially feared this initiative would cause friction when different corporate cultures clashed,
everyone was ready to improve their technical skills through friendly competition, generatingsynergy in the form of mutual respect for each other’s cultures and proactive incorporation of thebest of both worlds.
The company must be an appealing workplace for employees as well as their families. The
quest to create workplaces where employees can work in ways that bring happiness tothemselves and their families is the essence of our vision to design new ways of working.

Power plant
Anegasaki

Goi

Yokosuka
Taketoyo

Unit

OutputStart of operation

1 (new)

650 MW

February 2023

2 (new)

650 MW

April 2023

anywhere. This should make it easier for employees to balance work with parenting, home care,

3 (new)

650 MW

August 2023

and other responsibilities. We intend to continue improving these working environments to relieve

1

780 MW

August 2024

2

780 MW

November 2024

3

780 MW

March 2025

1

650 MW

June 2023

2

650 MW

February 2024

5

1,070 MW

August 5, 2022

Therefore, we have created an environment where most work can be done in the cloud from

employee stress as they fulfill their role as parents or caregivers.

Our Vision for Digital Transformation
Our digital strategy is to become a data-driven company that captures relevant real-time data,
which we use to make and act on swift management decisions. We have already succeeded in

Securing fuel fora stable power
supply• Contributed to stable power supply by procuring a record 4.5 million tons of additional
LNG in FY2021 to counter fluctuation during peak periods• Scheduled to continue cooperating with stakeholders in FY2022 to help secure a stablesupply of fuel to meet domestic demand for electricity

becoming the first Japanese energy company to move the entirety of its core systems to thecloud. This digital transformation (DX) is spearheaded by Senior Managing Executive Officer SamiJERA GROUP CORPORATE COMMUNICATION BOOK 202213

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Message from the President

Ben Jamaa, who draws upon a wealth of experience with IT transformations in global companies

Additionally, in July 2022, we launched JERA Digital Academy (JEDI), a DX humanand under whose guidance our ICT departments have become reform-minded organizations

resources development program for all group company employees, and are expanding thecomprising people from both the TEPCO and Chubu groups as well as mid-career professionals

program to include sites overseas. Digital technology is an essential tool for energy companies

from Japan and around a dozen other countries.

to achieve decarbonization, and we will lay the groundwork for all employees to use it for their

Beyond DX, we have a concept known as the Digital Power Plant Project, in which we seek toown purposes.

transform power plant operations with digital technology. We aim to improve our power
generation facilities’ competitiveness and market responsiveness by packaging power plant

Closing Words for Stakeholders

facilities and operations — combining the latest digital technology with our unique homegrown

Contributing to society is in the DNA of our company, which generates power to support thecapacity for continuous improvement and technology — and establishing advanced data- anddevelopment of local communities. To us, nothing is more important than providing a safe,

AI-based power plant operations. These efforts will also allow us to replace and digitize theaffordable, stable power supply to underpin industry and daily life. We have also crafted a vision topractical expertise of our seasoned professionals, which we expect will facilitate our propagationbuild a clean energy platform to combat climate change and expand our business into Southeast

and reproduction of technology as we expand outside Japan.

Asia and other parts of the world. However, we also recognize the need to contribute to thesustainable development of Southeast Asia, not by simply generating profits but by creating
industries, providing job opportunities, and taking other steps to enrich the lives of the people
who live there. When conveying these ideas to JERA employees, I often refer to the story ofJapanese engineer Yoichi Hatta. He contributed so much to the development of Taiwan underJapanese rule through the construction of the Wushantou Dam that a bronze statue was erectedin honor of him. Still today, he remains one of the most revered Japanese people in Taiwan. I hopethat our employees— especially the younger ones — will aim to contribute to society through theirwork and earn respect wherever we operate, much as Hatta did.
We will continue to expend every effort to create working environments where employees candevote themselves to their work with peace of mind and contribute more to our stakeholders thanever before. We ask that you continue to support us in our endeavors.

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The World Around JERAThe Impact of Global Trends on JERA—Challenges and Opportunities
Global Trends: Ever-Changing Supply and Demand in the Electricity Market
Over the next few decades, world-wide total primary energy demand is expected to increase as
the global population approaches 10 billion people. Much of this population growth is in developing
areas of the world where people aspire to improve their lifestyle through the acquisition of energy
consuming devices like cook stoves, air conditioners, motor scooters and automobiles. The
demand for electricity is forecast to increase in all sectors (e.g. residential, commercial, industrial,
and transportation) and to outpace population growth.
While fossil fuels are expected to continue to supply the largest share of total primary energy,
renewables are forecast to grow at a faster annual rate than all other sources of energy to thepoint where their share of the energy mix nearly matches that of fossil fuels in 30 years time. The
growth of renewables has historically been driven by government policies but it is increasingly
being driven by economics as the costs of wind and solar power generation in particular continue
to decline.
The demand and supply of energy, and electricity in particular, will also be impacted bytechnological advances. While demand is primarily driven by population growth and lifestylechoices, newer forms of energy consumption could impact the pace of this growth (e.g. fasterelectrification of the transport and space-heating sectors). Technological advancements inlarge-scale, low-cost energy storage could enable intermittent renewables to be less dependent
upon more conventional forms of energy such as thermal power generation, creating theopportunity for renewables to play an even larger role in the overall energy mix. The digitization of
the grid and power generation facilities could enable more efficient use of power generation andJoseph M. Naylor
Outside Director, JERA Co., Inc.
He previously served as Corporate Vice President of Chevron, covering
Policy, Government and Public Affairs. He joined JERA in April 2021 asa member of the Board of Directors.

transmission resources.

The Challenge of Balancing Decarbonization and Stable Supply
While Facing an Uncertain Future
One of the largest trends that will impact the energy business is the push to decarbonize all
aspects of society to address the concerns of climate change. This is expected to be enacted

Resolute in Our Mission of Providing a Stable Energy Supply andLeading in the Energy Transition

primarily through direct and indirect government policies (e.g., carbon prices, emission caps,

JERA is facing a number of longer-term and nearer-term global trends that could impact its

clear, the pace at which various jurisdictions enact the necessary policies is quite difficult tobusiness. While it is impossible to predict exactly how these trends will play out, JERA is well

predict. During this time, there could be tension between the push to decarbonize and the needpositioned to fulfill its role of providing cleaner, affordable, and reliable energy for today while

to ensure a stable supply of energy (as witnessed recently during the Russian/Ukraine crisis).

investing in the energy of the future.

building standards, etc.). While the overall direction towards a less-carbon intensive society is

In addition to the longer-term trends outlined above, there are nearer-term trends that are also

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The Impact of Global Trends on JERA

impacting the energy sector. The Russian/Ukraine crisis has disrupted the traditional energy flows,

continuing to refine its own operations including digitizing many of its facilities. This will become

increased commodity prices, and caused governments to rethink their dependence on certain

another offering of energy management solutions provided to customers of the future. JERA willsources of non-domestic energy. While some of these effects – such as the commodity pricealso continue to share its expertise with host governments of the countries in which it operates tospikes – may be transitory others may have a longer lasting impact. Also, after over a decade ofhelp them as they develop policies that facilitate their own energy transition.

strong economic growth, many developed countries around the world are seeing significantly

Finally, all these future uncertainties also have the potential to create volatility in the energy

higher levels of inflation, higher interest rates, and a greater likelihood of entering into an

market. JERA has a strong and growing global trading organization that is able to ensure a secure

economic recession.

supply of energy to customers while generating value and mitigating risks.

Finally, a nearer-term trend with both short- and long-term implications is the growing
customers, employees, and civil society have growing expectations of a company’s role in society.

JERA Plays a Vital Role in Helping Japan Write a Realistic Roadmap
to Decarbonization

This includes not only specific actions companies should take on issues such as: climate change;

Despite being one of the world’s largest energy consumers, Japan is not blessed with domestic

water usage; diversity, equity, and inclusion; human rights; and corporate governance; but also

resources and is dependent on imports from overseas for almost all of its energy needs.

importance of Environmental, Social, and Governance (ESG) matters for companies. Investors,

how much they should publicly disclose about these actions.

The geography of Japan also makes it more difficult than in other countries to develop
renewable energy sources such as solar and wind on a large scale. Also, unlike the European

JERA’s Contribution to Decarbonization: An Unparalleled Position with
Unrivaled Strengths
The global trends and uncertainties create opportunities for companies that have robust andUnion, for example, Japan and its neighboring countries cannot share an energy distribution
network on the scale they could if sharing a landmass.
In this context, JERA must accomplish incremental and mid- and long-term decarbonization ofdiverse portfolios, a strong balance sheet, and the ability to invest in a variety of options for theits Japanese assets while providing a stable energy supply to realize the government’s goal for

future; JERA is such a company.

Japan to reach carbon neutrality by 2050.

JERA recognizes that it has a critical role in society to continue to provide cleaner, affordable,

As Japan’s largest power generation company, JERA can leverage strategies to achieve zeroand reliable energy to its customers. It does this through its enviable portfolio of assets in Japan

CO2 emissions by 2050 and lead the way to a low-carbon society. These strategies include

and overseas, including power generation facilities, upstream and midstream assets, and ancomplementing “zero-emission thermal power” with the introduction of renewable energy andorganization with a long legacy of operation and optimization experience.

green fuels, as well as adopting measures at the decision stage that combine the most innovative

The existing portfolio provides the funds and expertise to make additional investments forand reliable technologies available (i.e., “smart transition”).

the future. JERA will continue to invest wisely in current facilities to maintain their safe andreliable operation. In addition, there are many new and attractive opportunities in the energy

Conclusion: The Energy Transition Creates Opportunities for JERAtransition that JERA is evaluating and in which it is investing. These include onshore andWhile there are always a number of uncertainties about the future that companies face, theoffshore wind facilities, ammonia and hydrogen value chain assets, and upstream anduncertainties that are forecast presently – particularly those associated with decarbonization andmidstream natural gas assets.

the energy transition – are more numerous and potentially more impactful than normal. These

JERA also has opportunities to use and monetize the operating know-how it has developed

uncertainties also create opportunities for companies that are well-positioned. JERA plans to playover the past many years while developing new processes to operate even better. It can provide

its role in the energy transition, making investments in the energy of the future while meeting theenergy management solutions to customers to help them operate and maintain their power

needs of customers today.

generation facilities more efficiently and assist with their own decarbonization plans. JERA is

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Value Creation Process

Contributing to Sustainable Corporate Value Growth and a Sustainable Society

The World Around JERA• Rapid changes in power
supply and demand• Increased future uncertainty
Leading to difficulties inproviding a stable power
supply and promoting
decarbonization

Business Capital
Supporting JERA’s
Growth (Input)

MissionTo provide cutting-edge solutions
to the world’s energy issues

Fuel Upstream
Development

Present

Coal
LNG

Vision for 2035

Ammonia
HydrogenIntellectual Capital
Investment in professional
development (including
digital and administrative
initiatives)

Clean Energy Supply Infrastructure

Manufacturing Capital
26 power plants in Japan≈ 30 overseas projects inmore than 10 countries
Social/Relational Capital
World leader in LNG tradevolumeDominant presence indomestic power
generation

Economic Value(FY2025)
Global Fuel Markets

Creation of Fuel Procurement Portfolio

Transportation/Receiving/Storage

Financial Capital
Shareholders’ equity
1,688.1 billion yen

Value Created by JERA
(Output)

FutureHuman Capital
Number of employees(consolidated) 5,062

Natural Capital
Total energy consumption
50.80 million kl (crude oil
equivalent)

To scale up our clean energy platform of renewables andlow greenhouse gas thermal power, sparking sustainable
development in Asia and around the world

Low Greenhouse
Gas Thermal
Power*(Low greenhouse gas thermal
power / renewable energies andcombined technologies)

Social andEnvironmental Value

Customers
Power Markets

Demand ResponseTechnological Development

Growth Potential
CFI: 1,400 billion yen(650 billion yen related todecarbonization)

Value Provided

Environmental

Renewable
EnergyCapital Efficiency
ROIC: ≈4.5% (ROE: ≈9%)

Trade-Driven Flexibility andValue Maximization

EnergyEnergy Security

Digitalization andData Utilization

Profitability
Consolidated net profit:
200 billion yen (60% fromoverseas)
EBITDA: 500 billion yen

From Japan to Asiaand the world

JERA’s Infrastructure for Value Creation
Governance (outside and non-Japanese directors) Diverse Talent (women, highly specialized personnel, non-Japanese employees) Safety (Safety Philosophy)

Stable Energy Supply
Infrastructure Development• Growth in LNG transaction
volume• Replacement of domestic
thermal plants• Stable fuel procurement
Adoption and Expansion of
Renewable Energies• Renewable energy
development target: 5 GW
Decarbonization of Thermal
Power and Fuel Supply
Chain• Ammonia co-firingdemonstration tests• International competitive
bidding for fuel ammonia* Thermal power generation facilities designed for co-firing with zero-emission fuels such as hydrogen and ammonia

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Value Creation Process

Our value creation process aims to build a business model that provides a clean energy supply infrastructure combining
low greenhouse gas thermal power and renewable energy sources. This model will allow us to achieve sustained

JERA’s Goals(Outcome)

corporate value growth and contribute to a sustainable society with zero emissions by 2050. Furthermore, by expanding
this business model to Asia and the world, we will participate in healthy growth and development on a global scale.
Specifically, we will support the introduction of renewable energy via thermal power solutions able to generate powerin any environment, along with zero-emission thermal power green options that use ammonia and hydrogen. This

Sustainable
Corporate Value
Growth• A business portfolio thatenables a stable andsustainable energy supply• Maximizing the value
proposition of energy

marriage of renewable energy and zero-emission thermal power will enable us to achieve decarbonization and secure astable power supply.
We must pursue the best solutions in order to attain a carbon-free future. The types ofenergy and power grid options available vary by country and region, so it is necessary to
formulate roadmaps suited to each situation. We already have initiatives underway overseas,
including research and support toward developing a decarbonization roadmap for Indonesia’s
power sector (FY2021) and collaboration with Summit Power International on developing adecarbonization roadmap for Bangladesh (FY2022).
We will drive the adoption and expansion of green fuel by building a value chain in theContributing to a
Sustainable Society• Forming viable decarbonization processes• Solutions for energy
challenges facing Japanand the world

same way we have for LNG, from fuel upstream operations and procurement to transportation, receiving, storage, power generation, and sales. Power generation efforts, forexample, include ammonia commercialization demonstration tests at Hekinan Thermal Power
Station and projects exploring co-firing rates of more than 50%.
In offshore wind power, we are acquiring know-how through participation in several
overseas projects and establishing a base of operations in Akita Prefecture to prepare fordeveloping the business in Japan. In addition, we are developing solar power solutions inJapan as we progressively accelerate our renewable energy initiatives.
We will also use the trading market to maximize the value we generate through various
power sources, namely our energy and environmental value.
Through these efforts, we continue to define the optimal business model for our entire
value chain and business portfolio, one that is responsive to both time and place. The many

Hisahide Okuda
Corporate Vice President, Managing Executive Officer,
Director, Corporate Strategy

kinds of capital that comprise the JERA Group are what underpin the realization of our
mission and vision.

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JERA Zero CO2 Emissions 2050: Committed to Achieving Zero CO2 Emissions acrossDomestic and Overseas Operations> JERA’s mission is to provide cutting-edge solutions to the world’s energy issues.
> JERA is rising to the challenge of achieving net-zero CO2 emissions from its domestic and overseas
operations in hopes of creating a more sustainable society for us all.

JERA Zero
CO2 Emissions

2050* JERA Zero CO2 Emissions 2050 is premised on steady advances in decarbonization technology, economic viability, and consistency with government policy. JERA is developing its own decarbonization technologies and taking theinitiative to ensure economic viability.

The Three Approaches of JERA Zero CO2 Emissions 2050

1

2

3

Combining Complementary Renewable
Energy with Zero-Emission Thermal Power

Establishing Country andRegion-Specific Roadmaps

Ensuring a Smart Transition
JERA will achieve zero CO2 emissions through our “smart

JERA will achieve net-zero emissions by adopting an approach

JERA will achieve zero CO2 emissions by establishing roadmaps

transition” strategy, which combines innovative and viable

that supplements renewable energy with zero-emissionthat chart optimal solutions for each country and region. Sincetechnologies available when adoption decisions are made. This

thermal power generation, which is capable of generating

the energy situation varies by country and region, with different

approach will lower technical risk and facilitate a transition to aelectricity regardless of natural conditions. JERA will promotesolutions available based on the feasibility of renewable energy

green society.

the adoption of greener fuels and pursue thermal power that

options and the presence of pipelines and transmission lines,

does not emit CO2 during power generation.

JERA will work with stakeholders to establish country andregion-specific roadmaps. We have already developed aroadmap for our business in Japan, which we will extend toother countries and regions.

TV/Web Ad: “Changing the Way We Think About Energy”

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JERA Zero CO2 Emissions 2050 Roadmap for its Business in Japan
By 2040

By 2030

Immediate Action
Shut Down
Inefficient Coal
Power Plants
Co-Firing withAmmonia
Co-Firing with
Hydrogen*Zero CO2 Emissions Thermal Power Generation

Renewable
EnergyBy 2050

Ambitious Agenda

Reduce carbon emission intensity of thermal power plants
by 20% based on the long-term energy supply-demand
outlook for FY2030 as set by the government

Reduce CO2
emission
intensity by

By 2030

By 2035

Total Shutdown
of Inefficient Coal

20% Decommission all of JERA’s inefficient

Zero CO2
Emissions

Reduce CO2
emissionsby at least

Achieve virtually zeroCO2 emissions fromJERA operations

60%

coal power plants (supercritical or less)

Demonstration Tests

Conduct demonstration tests at an
active coal power plants(Hekinan Thermal Power Station)

Demonstration Tests
Verify stable operation of actual
power plants

Begin full-scale operation
at a co-firing rate of 20%
Finalize details based ofdemonstration results

Resolve Technical Issues via Selection of
Hydrogen Carriers
Select the most technically and economicallysuitable hydrogen carriers for ammonia, liquefiedhydrogen, methylcyclohexane (MCH), etc.

2030s

Begin full-scale operation
at a co-firing rate of 50%

2030s
Begin full-scale

operation

By 2050

Increase

Co-Firing Rate

2040s
Initiate Transition to Single-

Fuel Combustion

Shift to single-fuel ammonia
combustion to replace coal at power plants

Increase

Co-Firing Rate

• Promote development centered on offshore wind power projects• Support battery storage solutions

Reference
Medium- andLong-Term
Environmental
Targets

By 2050, CO2 emissions from power plants stillusing fossil fuels will be offset using technologies
like CO2-free LNG

JERA Environmental Target 2030
JERA Environmental Target 2035

This roadmap will evolve incrementally, adapt to changes in government policy and other relevant conditions, and be revised as needed.
* We are also considering the use of CO2-free LNG.

JERA Environmental Target 2030
JERA is actively working to reduce CO2 emissions. For domestic operations, we will achieve the following by FY2030:• Decommission all inefficient coal power plants (supercritical or less) and conduct demonstration tests of mixed
combustion with ammonia at high-efficiency (ultra-supercritical) coal power plants• Promote the development of renewable energy centered on offshore wind power projects and work to further
improve the efficiency of LNG thermal power generation• Reduce carbon emission intensity of thermal power plants by 20% based on the long-term energy
supply-demand outlook for FY2030 as set by the government

JERA Environmental Target 2035
JERA aims to reduce CO2 emissions from domestic operations relative to FY2013 by at least 60% by FY2035
through the following initiatives:• Strive to develop and adopt renewable energy in Japan given expanded adoption under the national
government’s 2050 carbon neutral policy• Commit to reducing carbon emission intensity from thermal power generation by promoting hydrogen andammonia co-firing“JERA Zero CO2 Emissions 2050 for Its Business in Japan” and the JERA Environmental Targets are premised on steady advances in decarbonization technology, economic rationality, policy consistency, and the business climate under which these goals will be realized.

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Zero-Emissions Thermal PowerAs stated in JERA Zero CO2 Emissions 2050, we will rise to the challenge of achieving decarbonization by combining renewables with zero-emissions thermal power.

Ammonia, a hydrogen-based form of energy, is an energy carrier that efficiently transports andstores hydrogen energy. Ammonia is an apt fuel for clean thermal power generation because it
emits no CO2 when combusted, meaning we can use it in its normal state. Accordingly, it should

Generating power with solar, wind, and other renewables involves no greenhouse gas
emissions, and the energy sources are available in perpetuity. Thus, they should be adopted

become commercially viable as a fuel for thermal power generation in short order.

whenever and wherever possible to prevent global warming and use energy most effectively.
However, output from these natural energy sources fluctuates widely due to season, weather, andUsing Existing Facilities to Reduce Costs and Expedite Installation

other natural factors, making it difficult to ensure a stable power supply when and where it is

We believe that gradually replacing the fuels used in thermal power generation facilities withneeded. To mitigate this problem, we leverage one of the defining characteristics of thermalammonia and hydrogen is an effective option for reducing costs and deploying zero-emissions

power generation: adjustable output.

thermal power rapidly while maintaining a stable power supply.

Toward that end, we will introduce zero-emissions thermal power by replacing conventional

Thanks to their compatibility in terms of combustion speed and quantity of heat, we plan tofuels like coal and LNG with ammonia and hydrogen, which emit no CO2 when combusted. Our

use both ammonia and hydrogen in our power generation. Ammonia is compatible with theaims with this shift are to complement renewables with thermal power and vice versa and to

boiler-type systems used in coal-fired thermal power, while hydrogen is compatible with the gas

achieve carbon neutrality by 2050.

turbine-type systems used in LNG-fired thermal power.
Notably, the Japanese government’s Sixth Strategic Energy Plan also calls for the promotion of

Utilizing Ammonia and Hydrogenco-firing with non-carbon fuels and other thermal power generation efforts by 2030 while ensuring

Hydrogen is often called the ultimate clean energy, garnering attention worldwide for its complete

facility capacity is sufficient for a stable supply. And for the first time, the plan includes hydrogenlack of carbon emissions.

and ammonia in its composition of power sources.
Ammonia Co-Firing in Boiler-Type Thermal Power (Coal-Fired) Generation

O

H

O

Oxygen (O2)
H

H

O
H

Hydrogen (H2)O

Oxygen (O2)N
H

Water (H2O)

H

O

N

N

O

H
H

Ammonia (NH3)

BoilerNitrogen (N2)

Existing facilities arecapable of thenecessary denitration
Exhaust gas
denitrationequipment

Install ammonia combustion burners

HElectrical dust
collector

Steam turbine

Water (H2O)

H
H
LNG

Compatible withthermal power
generation

Hydrogen (H2)

Coal

Compatible withthermal power
generation

H

Exhaust gas
desulfurizationequipment

Install berths, tanks, and other facilities

N

H

Scope ofmodifications

Tank

H

Ammonia tanker

Regasifiers

Ash handlingsystemCoal carrier

Ammonia (NH3)
Ash unloading/transport equipment

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Zero-Emissions Thermal Power

Ammonia and Hydrogen Introduction Plan

The process of producing ammonia and hydrogen will be one of the keys to unlocking a

In FY2023, we plan to start demonstration tests in which we replace 20% of the existing fuel mix

decarbonized society. We are exploring a wide range of possibilities, including green ammonia andwith ammonia at Hekinan Thermal Power Station Unit 4. We will increase the ammonia

hydrogen produced via electrolysis of water with electricity derived from renewables, as well ascomponent to at least 50% by FY2028 and conduct more demonstration tests with the aim ofblue ammonia and hydrogen, which store CO2 separated and captured in fossil fuel-powered

making high-ammonia mixes (50%+) commercially viable in the early 2030s.

manufacturing processes.

We also plan to conduct demonstration tests with a co-firing rate (by volume) of 30% hydrogenat our gas turbine-type LNG-fired thermal power plants by FY2025 to make hydrogen mixes

Ammonia Supply Chain

commercially viable in the mid-2030s.
by 2030

by 2035

FY2023Late 2020s

Natural gas

Ammonia

Highammonia
mix of50%+

Burner development /Demo prep

Demo
tests

Ammoniasynthesis

Early 2030s

Full-scalerollout prep

Launch ofcommercial
operation

RenewableenergyDevelopment of single-fuel boilers /gas turbines

by FY2025
HydrogenCo-firing /single-fuelfiring

Demo
prep

Demo
tests

StorageTransition to
single-fuel firing

Marinetransport
Ammonia

Electrolysis

Unloading /Storage

Regasification orhydrogenation

Fuel cells
Industrial
furnaces
Zeroemissions
thermalpower
Shipping
fuel
Automotive
fuelGreen ammonia(renewable energy-derived)

Co-firing rate of 50%+
Single-fuelfiringOther
power
producers

Reforming

Co-firing rate of 20%

by FY2028

Expansion toother industries

Expansion toother countries
CCUS*1 / EOR*2 /Afforestation

Launch ofcommercial
operation

Demo Full-scale
tests rollout
prep

Demo
Co-firingrate of 20% prepby 2050

CO2Blue ammonia(fossil fuel-derived)*1 CCUS: Carbon dioxide capture, utilization, and storage*2 EOR: Enhanced oil recovery

Mid-2030s
Tech development to expand co-firing rates /scale up ops

Launch ofcommercial
operation

Co-firing rate of 30%*

Expansion into Asia
*By volume

We believe that zero-emission thermal power with ammonia and hydrogen is a realistic approachto achieving both a stable power supply and decarbonization. By offering this approach as one of
our solutions to people in burgeoning economies in Asia and the rest of the world, we hope to

Building a Supply Chain

contribute to the power supply and pursuit of decarbonization that underpins economic growth in

If we replace 20% of the fuel at a 1 GW thermal power plant with ammonia, we would needthose countries and regions.

roughly 0.5 million tons of ammonia each year, equivalent to half the current annual consumption
in Japan, which is mainly for industrial use and fertilizers.
Therefore, it is essential to establish a new supply chain for fuel ammonia to ensure a reliablesupply for thermal power generation. We will also consider expanding our business domainbeyond power generation to include the development of clean fuels for other industries.

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Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Zero-Emissions Thermal Power

Promoting and Expanding Green Fuels by Leveraging the Strengths of the
Entire Value Chain

SPOTLIGHT

Together with many partners, JERA has established a full value chain—from power generation to

Investment in Hydrogenious

gas field development, liquefaction, and fuel transport and storage—to realize stable andIn September 2021, JERA entered into an investment agreement and a shareholders’ agreement

economical procurement of LNG. We will apply this concept of full value chain utilization towith Hydrogenious LOHC Technologies GmbH, a developer of hydrogen storage and transporthydrogen and ammonia to drive the promotion and expansion of green fuels.

technology headquartered in Erlangen, Germany. Hydrogenious has proprietary technology for
liquid organic hydrogen carriers (LOHC), a type of hydrogen carrier.

Initiatives to Achieve a Full Value Chain
Worldwide (excluding Japan)

Hydrogen is widely considered to be a next-generation replacement for fossil fuels at thermaln Ammonia n Hydrogen

power plants because it emits no CO2 when it is combusted. However, large-scale marine

n CCS and others

transport of hydrogen involves challenges, and technological development for hydrogen carriers is

01

ongoing. JERA intends to assist in resolving technical issues and select cost-competitive carriers.

02
07
06

The company’s LOHCs stand apart because their carrier medium choice of benzyltoluene—
to which hydrogen is added through a chemical reaction—results in a liquid that can betransported and stored at ambient temperature and pressure and is easy to handle because it is03

flame resistant and non-explosive. Hydrogenious is constructing the world’s largest LOHC plant in04

Dormagen, Germany, and plans to bring the facility online in 2023.
By investing in Hydrogenious, JERA intends to acquire insight into LOHC technology—05

a potential game-changer for hydrogen energy carriers—and assist in the development of LOHC
01
02
03
04

Japan

Collaboration with Yara International
Investment in Hydrogenious
Collaboration with Petronas
Bayu-Undan Gas Field CCS

n Ammonia

03
02

05 Pilbara ammonia production plant
06 Methanation feasibility study in the USA
07 Hydrogen utilization at Linden Thermal Power Station

plants in Europe, North America, and Asia to help establish a global hydrogen supply chain.

n Ammonia + Hydrogen

01

04

01 Ammonia co-firing demonstration test at Hekinan Thermal Power
StationInternational competitive bidding to procure fuel ammonia for Hekinan
Thermal Power Station Unit 4
02 Collaboration with Yara International and Idemitsu Kosan
03 Collaboration with Kyushu Electric Power and Chugoku Electric Power
04 Collaboration with ENEOS and JFE Holdings

JERA ZERO CO2 Emissions 2050 Website
https://www.jera.co.jp/english/corporate/zeroemission/

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Strategies

Value Creation
Infrastructure

Financial andCorporate Information

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Infrastructure

Financial andCorporate Information

Material Issues
JERA identified and published our material issues starting in 2020 based on the goals set forth in our April 2019 business plan. We review our material issues every year in response tochanges in the internal and external environment, and this year we pinpointed nine issues guided by the new corporate vision and JERA Environmental Target 2035, which were bothannounced in May 2022. In addition, we map out the issues, follow the Plan-Do-Check-Act (PDCA) cycle toward realizing our mission and vision, and implement materiality-conscious
management processes.

How We Identify Material Issues

Mission(p.1)

Vision(p.1)

Major Initiatives

Material Issues(p.26)New Material Issues

Establish a stableenergy supply

Create customer value
through cutting-edge
solutions

Coexist and thrivealongside local
communities in Japanand abroad

Adopt and expand
renewable energies

Realize new, zero-carbon
energy models throughdigital transformation

Decarbonize thermal
power and fuel supply
chainsEstablish global
corporate governance

Create a safe andcomfortable work
environment

Empower diverse talent

How We Set Our Material Issues
We address material issues accordingly as they evolve by reassessing the issues and adjusting KPIs, among other efforts.
STEP

1

Identify Issues
We composed a list of 59 issues pertinent toour company following an analysis of theindustry environment, our businessstrategies, and other factors.

STEP

2

Assess Importance and Relevance
We evaluate each of the 59 issues identified in
Step 1 in terms of their importance to thecompany, stakeholders, and society, as well as
their relevance to factors like company strategy
and stakeholder opinion.

STEP

3

Identify Material Issues
Taking into account Step 2 assessments, theSustainability Promotion Committee (chairedby the company president) designatesmaterial issues.

STEP

4

Revise Material Issues
Guided by the new corporate vision and JERA Environmental Target
2035 announced in May 2022, we abstracted and reorganized thematerial issues first formulated in 2020 into nine issues, which wereconsidered and approved by The Sustainability Promotion Committee.

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Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Material Issues● Initiatives

Material Issues

Major Initiatives

Related Pages

1

Establish a stableenergy supply● Stabilize supply and demand management◎ Replace domestic facilities representing 7–9 GW of energy (at 5–7 sites)● Optimize security measures and monitoring systems in line with global standards● Enhance JERA’s business continuity plan (BCP) and business continuity management (BCM)● Improve disaster preparedness through systematic education and training● Build a disaster prevention infrastructure by maintaining reserves

Business Development (p.31)
Optimization (p.33)
O&M Engineering (p.35)
Initiatives at Thermal Power Plants in Japan (p.37)
Response to TCFD Recommendations (p.45)
Risk Management (p.72)
Information Security (p.75)

2Create customer value
through cutting-edge
solutions● Develop new technologies that can spearhead a sustainable society● Further innovate by combining new technologies with power generation technology● Strategically acquire intellectual property in Japan and abroad and apply it to new business● Develop and deliver solution selling that ties in with company business

JERA Zero CO2 Emissions 2050 (p.19)
Zero CO2 Emissions Thermal Power (p.21)
Business Development (p.31)

3Adopt and expand
renewable energies◎ Target renewable energy development representing 5 GW of energy by 2025●A
 cquire essential know-how about offshore wind power

JERA Zero CO2 Emissions 2050 (p.19)
Zero CO2 Emissions Thermal Power (p.21)
Business Development (p.31)
O&M Engineering (p.35)
Response to TCFD Recommendations (p.45)
Environment (p.53)

4Decarbonize thermal
power and fuel supply
chains5

Establish global
corporate governance●E stablish hydrogen and ammonia supply chains◎U tilize ammonia effectively, with demonstration tests of co-firing rates of 20% at Hekinan Thermal Power Station Unit 4 planned for FY2023,

commercial operation of co-firing rates of 20% targeted for the late 2020s, and commercial operation of co-firing rates of 50% intended to begin
in the early 2030s◎U tilize hydrogen effectively, with commercial operation planned for the 2030s●P ursue carbon capture and storage (CCS) know-how and project opportunities● I mprove board effectiveness● I nstill and put into practice a compliance culture and strengthen the JERA Group compliance system●M ake improvements to reporting of financial and non-financial information● I nitiate phased and joint decarbonization efforts with regional business partners, especially in Asia, that emphasize our power plant O&M andengineering technologies●T ake action to coexist with the environment, educate the next generation, and resolve issues in local communities based on our Social

6

Coexist and thrivealongside local
communities in Japanand abroad
Realize new, zerocarbon energy models
through digitaltransformation●A cquire cutting-edge IT technologies through upgrading the R&D environment and building relationships with leading technology companies,

7

Contribution Activity Policy●B uild good relationships with stakeholders through cooperative efforts with the community●S trengthen systems for the prompt and proper reaction in response to domestic and international crises●P ractice global corporate social responsibility (CSR) founded on the needs of overseas sites

among other efforts●S et up data infrastructure and promote data governance● I ntroduce apps featuring data protection and privacy (DPP)●O
 ffer digital education to all employees◎ KPIsRelated SDGs

JERA Zero CO2 Emissions 2050 (p.19)
Zero CO2 Emissions Thermal Power (p.21)
Business Development (p.31)
O&M Engineering (p.35)
Response to TCFD Recommendations (p.45)
Environment (p.53)
O&M Engineering (p.35)
ESG Management (p.51)
Stakeholder Engagement (p.68)
Corporate Governance (p.69)
The Strong Board of Directors Behind JERA’s
Autonomous Management System (p.71)
Compliance (p.76)
Environment (p.53)
Coexisting with Local Communities (p.64)
Safety and Health (p.66)
Stakeholder Engagement (p.68)
Risk Management (p.72)
Information Technology (IT) / Digital Transformation(DX) (p.27)
O&M Engineering (p.35)●D evelop and implement human resource strategies linked to business strategies and goals●E volve and expand mechanisms to attract diverse talent (e.g., broaden the pool of new graduate and mid-career candidates and strengthen

partnerships with educational institutions)●E stablish systems that promote self-driven career development (e.g., create structures for skill advancement and career paths, provide

consultation services, and expand internal promotion efforts)

8

Empower diverse
talent●B uild an attractive workplace (e.g., better define employee jobs and expectations, introduce new remote work options)●R ealize borderless human resources (e.g., unify policies across all JERA Group companies and increase global mobility irrespective of hiring location)●E mphasize diversity and inclusion (e.g., foster activities that empower women, employ persons with disabilities, and promote LGBTQ+

understanding)Talent Development (p.56)
Diversity and Inclusion (p.57)
JERA Work Design (p.62)
Human Rights (p.63)◎ I ncrease the percentage of women in leadership positions, targeting 15% in officer positions and manager representation equivalent to the overall

employee gender ratio● I mprove global engagement across group companies, establishing and spreading an employee value proposition (EVP) that resonates within andbeyond the company● I mprove safety levels and work toward zero accidents●B oost safety awareness among all employees●B uild a robust safety infrastructure that promotes safety at JERA Group companies in Japan and abroad and reinforces collaboration with

9

Create a safe andcomfortable work
environment

stakeholders● I mplement the measures needed for a safe workspace (e.g., augment safety information available online, construct a database of safety incidents,

and design effective procedures targeting a zero-accident environment)●E stablish contingency plans for overseas operations●F ormulate safety management system standards for normal operations●P romote work-life balance◎M aintain stress check levels for employees in Japan below the 100-point national average●S trive to reduce the number of abnormal test results during periodic employee health checkups

Communication with Employees (p.61)
JERA Work Design (p.62)
Safety and Health (p.66)
Stakeholder Engagement (p.68)
Risk Management (p.72)

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Financial andCorporate Information

Information Technology (IT) / Digital Transformation (DX)
Accelerating JERA Group’s DX to Achieve a
Zero-Carbon Society

Key Initiatives and Topics

JERA aims to become a Japan-based global energy company

Digital Transformation (DX)

Digital Integration (DI)through the promotion of operational efficiency, work

Initiatives that contribute to the creation of new business value

Initiatives that contribute to the advancement of existing
businesses

sophistication, and creation of new business value by utilizing
cutting-edge technologies and data in order to realize acarbon-free society.
Over the past several years, we have focused on developing

Establish service infrastructure for developing
renewable energy (PV, offshore wind, battery
storage, etc.)

Consolidate and modernize legacy systems
inherited from shareholder companies

Invest in cutting-edge technology companies

Visualize the entire value chain for supply-demand
optimization and energy stability

common global infrastructure, including the first attempt at fullcloud migration in Japan’s energy sector, consolidating legacy
systems inherited from shareholder companies, developing
systems needed to respond to key business issues, andimproving operational efficiency.
Going forward, we will continue to drive digital transformation
within the JERA Group by building platforms capable oflaunching new business models conducive to realizing a carbonfree society and acquiring cutting-edge technologies throughObtain DX certificate authorized by the Ministry of
Economy, Trade and Industry (METI) of Japan* DX certification verifies that the company is ready to transform its
business digitally (DX Ready)Promote digital power plant project to advance
power plant operations

partnerships and investments.
Digital talent is essential to realize these goals. We will work

Visualize entire investment-related businessportfolio

as “One Team” to strengthen the recruitment and development
of digital talent not only for ICT division but for the entire group.

IT System Infrastructure
Initiatives that contribute to the operational efficiency and work style reforms across the entire group
Full cloud computing(cloud-first)
Strengthen cybersecurity

Sami Ben Jamaa
Senior Managing Executive Officer
Global CIDO (Chief Information and Digital Officer)
ICT

Build corporate management
infrastructure
Redesign payroll system
Introduce electronic contract

Build data platforms andsystem-to-system data
linkage

Talent Development
Establish DX talent education program targeting all employees of more than 5,000
employees including JERA Group company employees

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Waste heat recovery boiler facility at Futtsu Thermal Power Station(award-winning photo in power plant’s contest)
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Strategies
30

The Management Capital Behind Our
Value Chain and Growth31

Business Strategies

31 Business Development
33 Optimization
35 O&M Engineering
37

Initiatives at Thermal Power Plants in
Japan

37 Kawasaki Thermal Power Station
38 Taketoyo Thermal Power Station
39

Message from the CFO on Financial
Strategy

45

Response to TCFD Recommendations

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Financial andCorporate Information

The Management Capital Behind Our Value Chain and Growth
There are three areas of the company that manage JERA’s value chain framework: Business Development, which devises and operates several projects on a global scale; Optimization,
which is responsible for establishing the best possible energy operations throughout the value chain; and the pairing of O&M (operation and maintenance) and Engineering (development
and construction), which is located in Japan’s Kanto and Chubu regions to provide a stable power supply to the country.
The relationships between these three business areas and our three business segments—fuel, overseas power generation, and domestic thermal power and gas—are as follows:
Overseas Power
Generation Business
Fuel Business

Overseas
power
generation

Trading
Upstreamdevelopment
Transportation

Receivingand storage

Domestic
power
generation

Procurement

Thermal Power and Gas
Business in Japan

Fuel Business

The Management Capital Behind Growth
Human CapitalIntellectual
CapitalNatural Capital

LNG transaction volume*1≈37MTPACountries
involved in LNG
procurement*1,*2

16

Financial
CapitalManufacturing
CapitalElectricity
and gas sales

Social Capital

Number of
employees*5390

LNG Cargo Fleet

19 carriers
Net sales*6

2,995.5billion yen

Business
Development (p.31)

We are building an optimal asset portfolio andincreasing earnings by expanding the scale and scopeof the value chain through new businessdevelopment and restructuring existing assets.

Fuel upstream / LNG procurement /transportation

Optimization (p.33)

We aim to achieve efficient, optimal operation byconsolidating and controlling the entire energy value
chain, from fuel procurement and transportation to
power generation and electricity and gas sales.

Short-term fuel procurement / trading

O&M Engineering(p.35)

We ensure the safe, affordable, and flexible operationof our fuel-receiving and storage terminals andthermal power plants.

Overseas Power Generation Business

Thermal Power and Gas Business in Japan

Overseas power
generation capacity*4

Overseas businesslocations

Number of LNG
terminals*3

Number of overseas
projects

Renewable energy
output share

Thermal power plants*4≈1.7 GW

26

LNG storage tank capacity*3

Number of
employees*5

Net sales*6

Number of employees*5

Net sales*6≈10.6 GW
≈30287

10+ Countries

4.1 billion yen

Power generation
capacity*4≈66 GW

11

3,969

Development of overseas power generation,
value chains, and renewable energy

Power generation
output*1,*4

247.3 TWh6.65 million kl

3,119.4 billion yen

Domestic power generation

Electricity and gas sales

O&M Engineering
Technical and third-party sales

As of March 31, 2022
*1. As of FY 2021 *2. Represents the number of countries that exported LNG to our terminals *3. Includes joint projects with other companies in Chita and Yokkaichi *4. Includes in-progress construction. Domestic figures exclude joint thermal power holdings.
*5. Does not include corporate employees *6. Total net sales when reconciled: −1,683.8 billion yen

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Infrastructure

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Financial andCorporate Information

Business Strategies

Business Development
Our Business Mission
We are a group of project development and asset management
professionals who are globally expanding our renewable energy
business, as well as our LNG value chain business, from fuelupstream operations to power generation. We are also up andrunning with initiatives in the hydrogen and ammonia businessfocused on achieving a decarbonized society. We are alreadyworking on various projects in Japan, Asia, North America,

Risks

Strengths• Increased uncertainty in global energy
policies and supply-demand structures• Increased geopolitical risk
• Delays in establishing an environment forrealizing zero-emission thermal power• One of the world’s largest LNG transaction
volumes• Extensive value chain, from fuel upstream
activities to power generation and sales• Credibility from having been selected bypartners from around the world seeking acompany engaged in large-scale businessdevelopment

Opportunities• Global trend toward decarbonization• Growing energy demand, especially in Asia
• Expansion of development opportunities forrenewable energy and low/carbon-freethermal power• Technological advances toward
zero-emission thermal power

Australia, Europe, and the Middle East. The businessenvironment surrounding energy is rapidly changing in terms ofpolicies, supply and demand structures, and business models ineach region, and there have also been remarkable advances indecarbonization-related technologies. In this businessenvironment, it is important to have a customer-driven
perspective that captures the circumstances and needs in eachcountry, as well as to find solutions and areas for improvementby having diverse talent from around the world bring their ideas
and know-how to the table to engage in frank discussions.
Going forward, we will provide cutting-edge solutions inJapan and other countries by leveraging cross-regional
collaboration and the knowledge and expertise we have gained

Measures Related to Our Business Strategy
Building a decarbonized fuel supply chain
We are engaged in collaborative work to build and expand supply
chains for hydrogen and ammonia, which are decarbonized fuels.
We are also engaged in international bidding to procure ammonia
and carbon capture and storage (CCS) efforts.
Developing renewable energy
We are promoting large-scale renewable energy by setting thegoal to develop 5 GW of capacity by FY2025 and participating in
offshore wind and solar power generation in Japan and abroad.

from our projects. At the same time, we will work with

Establishing roadmaps for decarbonization in Asia
We are conducting research, providing support, and collaboratingwith partners to establish decarbonization roadmaps tailored to thedifferent environments in each country.
Providing a stable supply of electric power in JapanWe are contributing to a stable power supply by replacing older
thermal power plants with high-efficiency ones and restarting idle
thermal power plants when the supply-demand balance is tight.
We are also developing our fuel upstream business andconcluding long-term contracts to ensure a stable LNG supply.

like-minded partners in Asia, where growth is particularly rapid,
to contribute to the stable supply and decarbonization of energy.

FY2021 Milestones

Yukio Kani

Corporate Vice President and Managing
Executive Officer, Director
Business Development• Collaboration and investment to build and expand our hydrogenand ammonia supply chain (Japan, Australia, the US, and othercountries)•E nvironmental impact assessment procedures for offshore wind
power in Japan (Akita and Yamagata prefectures)• Basic agreement on business alliance with West Holdings
Corporation for domestic solar energy development• Research and support toward developing a decarbonization
roadmap for Indonesia’s power sector•R estarting idle thermal power plants to ensure supply capacity(Anegasaki Thermal Power Station Unit 5 and Sodegaura Thermal
Power Station Unit 1)• Development of fuel upstream business (acquisition of a stakein Australia’s Barossa gas field and investment in Freeport LNG
in the US)

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Domestic Power Generation

Overseas Power Generation and Gas-to-Power

Main Business Indicators

In an effort to both enhance our domestic competitiveness and reduce
environmental impact, we are taking initiatives that include taking theinfrastructure of our existing thermal power generation facilities and rebuilding
maximum-efficiency models, adopting cutting-edge exhaust gas treatment
equipment, and spearheading the introduction of carbon-zero hydrogen andammonia fuels. We arealso working to deliver a
portfolio of power solutions
consistent with energy andenvironmental policies andachieve a balance between
the stability andsustainability of our energy
supply.

We have approximately 30 projects in more than 10 countries around the world,
and we are utilizing the experience we have gained from each of them toengage in business development. Our aim is to expand development throughstrategies tailored to the needs of each market in North America, Asia, and the
Middle East. In addition, we believe the key to our future growth will be seeking
out gas-to-power projects,
which integrate everythingfrom fuel procurement topower generation.

Domestic replacement anddevelopment
Steady progress toward
development ofRenewable Energy

LNG and Next-Generation Fuel Value Chain

We aim to become the number one company in Asia for offshore wind power,
which is expected to grow significantly in the future. Currently, we have several
projects at different stages in Taiwan, and in the future, we will strengthen ourefforts to win contracts for projects in Japan, expand our business to othercountries, and work on the new technology of floating offshore wind. In
addition to offshore wind power, we will actively pursue our solar power
generation business in Japan and expand our solar and onshore wind power
generation businesses inNorth America, India, andother countries. At thesame time, we will also
work on battery storage
solutions in each country,
which will contribute tostabilizing the
supply-demand balance.

The LNG business has a transaction volume of ≈ 37 million tons per year.
We participate in the entire value chain from upstream development totransportation, trading, and power generation, and we strive to secure a stable
and competitive LNG supply. By leveraging our expertise in LNG and the world’s
largest off-take capacity, we aim to build a supply chain for hydrogen andammonia to achieve zero-emission thermal power generation, supply it to otherindustries, and expand our business globally.

≈ 7 GW of capacity at 5 sites
Renewable energy output share

1.7GW

LNG procured by upstream
business

12 MTPA

FeaturedStrengthening Our Offshore
Wind Power Generation
Business
We are investing in overseas
projects in various stages ofoperation, construction, anddevelopment to simultaneously
acquire the know-how
necessary for the developmentof our offshore wind powerbusiness. We are also hiring
professional talent that includes
managers of offshore wind
power development companies
from Europe, a leading market
for such projects.

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Infrastructure

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Business Strategies

Optimization
Our Business Mission
In order for us to properly conduct our business and continue
to meet the expectations of our stakeholders, it is essentialthat we engage in smooth value chain management from fuelprocurement to transportation, receiving, power generation,and sales. We will enhance our execution capabilities in eachof the business areas that make up the value chain while, atthe same time, creating new services and providing solutions

Opportunities

Risks

Strengths• Expansion of competition inelectricity and gas sales• Market creation and new system
introductions• Fluctuations in resource prices• Fluctuations in domestic electricity
demand• Lack of coordination with the expansionof renewable energy• Negative impact of geopolitical risks onfuel procurement• Tight domestic electricity supply anddemand• Competitive and flexible procurement portfolio• Extensive market intelligence centered on
JERAGM• Expertise in electricity and gas market transactions• Flexibility in LNG terminal and power plant
operations and fuel receiving• One of the world’s largest LNG transaction volumes

to our customers, and we will take a bird’s eye view of theentire value chain to manage risk appropriately within theever-changing business environment.
Backed by one of the largest fuel transaction volumes inJapan, we have built a strong and extensive network in the
global market. The business environment is undergoingsignificant changes, including fuel market volatility resulting
from shifting international conditions and increasingly complex
power operations due to the introduction of diverse powersources. However, we will help realize a society that can growsustainably by solving challenges and continuing to provide astable energy supply through flexible responses throughout
the value chain.

Measures Related to Our Business Strategy
Taking action to ensure stable supply
We are working to optimize the entire value chain in order tominimize the impact of growing power demand fluctuations
caused by recent uncertainties. Our efforts include maximizing
thermal power generation and fuel operations and utilizing trading
networks by means of JERAGM. In preparation for times of peak
power demand, we will continue to strengthen our response
systems and participate in national efforts to prevent supply
issues. Our efforts include coordinated capacity adjustments,
participation in public auctions to secure extra power capacity,
cooperation in national fuel monitoring plans to better verify therisk of power shortage, new entry into adjustment markets, andbetter utilization of the existing power market.

Strengthening supply stability and securing profitability
through fuel trading
We are enhancing our optimization through JERAGM. By
engaging in trade that connects the Pacific and Atlantic markets,
we are able to flexibly address Japan’s massive and fluctuating
demand for LNG and coal while also efficiently seizing
profit-earning opportunities in the market by leveraging ourcommercial flow. In this way, we are able to achieve bothenhanced fuel supply stability and profitability.

FY2021 Milestones

Sunao Nakamura

Senior Managing Executive Officer
Optimization

Optimal power generation and fuel operations• Actual fuel transaction volume in FY2021: 37 million tons of LNG
and 43 million tons of coal
• In FY2021, we procured a record-high additional 4.5 million tonsof LNG through JERAGM and took various measures, including
securing and maintaining a large LNG inventory.
• During times of peak demand in Japan, we operated multiple
power plants at increased output in accordance with instructions
from power transmission and distribution companies.

Entry into new markets•W e placed bids in new adjustment markets and offered power
through the markets.
•W e used the futures market as a risk-hedging instrument andexecuted futures contracts.

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Strategies

JERAGM’s Role in Fuel Trading

Value Creation
Infrastructure

Financial andCorporate Information

Main Business Indicators

We pursue arbitrage profit by leveraging contract flexibility and market intelligence while meeting our volume fluctuation needs.
Procurement contracts

Sales contracts

JERA portfolio

JERA power plants

Delivered ex-ship (DES)LNG

Flexible destination contracts
LNG suppliers and traders

Coal

JERA
GM

Domestic and international
LNG traders and users

Financial transaction markets

LNG

59%

FY2021
Volume of LNG
receivednationwide
in Japan

JERA

41%

European LNG terminals
JERA power plants(including those of affiliatedcompanies)

Coal suppliers and traders

Other

Coal

Domestic and international
coal traders and users

Short-Term Fuel Procurement

Fuel Trading

Electricity and Gas Sales

We have built a fuel portfolio with excellent short-term pricecompetitiveness that also responds well to volume and pricefluctuation risks by leveraging our world-class procurement
capabilities. (“Short-term” in terms of LNG means four years or
fewer.) Competitive fuel procurement allows us to contribute to
the supply of inexpensive electricity and gas in Japan, and weare working on expanding our fuel trading business based on theflexibility we have gained.

JERAGM is headquartered in Singapore and has locations in
London, Amsterdam, Tokyo, and Baltimore. Via this joint venture
and its ≈ 300-strong team, we engage in trading operations in the
LNG, coal, and freight markets. We also look to optimize theentire value chain through asset-backed trading supported by thebreadth of world-class fuel procurement covered by JERA and
our French colleagues at EDF.

We are able to meet the diverse needs of our customers andprovide a stable supply of electricity and gas by manifesting
supply capabilities backed by our track record and experience inlarge-scale fuel contracts and operations. We also contribute to astable domestic power market by supplying as much electricity
as possible to the wholesale market. Furthermore, we play a rolein the future of the domestic power market through participationin new markets, such as the capacity and adjustment markets.

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Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Business Strategies

O&M Engineering
Our Business Mission
O&M Engineering is a unit of ≈ 3,000 engineers who have beendelivering electric power for years through power plant and fuelterminal operation and maintenance (O&M). We coexist withlocal communities and will continue to support manufacturing
and provide a comfortable way of life in our communities.

We have developed the “JERA O&M Way,” which achieves
both cost competitiveness and market responsiveness by

Business Strategy Assumptions
Opportunities

Risks

Strengths• Electric power market competition• Expansion of digitization• Expansion of renewable energy• Support for zero-emission thermal power• Risk of natural disasters such as major
earthquakes• Disruption of operations caused byequipment problems or accidents• A group of engineers with the experience andexpertise to meet complex challenges• Opportunities and experience operating anabundant power supply portfolio

combining our digital strengths with the kaizen andtechnological strengths we have cultivated through ourexperience providing a stable power supply. By continuing torefine this approach, we aim to achieve plant O&M services
that are overwhelmingly superior to our competitors in Japanand overseas. Furthermore, we work to transform ouroperations through digital power plants and to achievezero-emission thermal power toward a decarbonized society,and we pursue these initiatives and others with safety always
as our highest priority.
By deploying these efforts as part of the JERA O&M Way,
we aim to become a world-class O&M player able to offer ourcustomers enhanced value.

Tetsuya Watabe

Senior Managing Executive Officer
O&M Engineering

Measures Related to Our Business Strategy
Safety Initiatives
As the world’s first company to take on the challenge of fuelammonia, we will leverage our experience with Japan’s largest
existing thermal power operations to establish world-class safety
practices and provide an infrastructure for supplying clean energy
to Asia and the world.
Zero-Emission Thermal Power Initiatives
We will accelerate our efforts to launch fuel ammonia tests at
Hekinan Thermal Power Station Unit 4 at a co-firing rate of 20%
during FY2023. This will be a world first for a large commercial
unit and help progress toward a decarbonized society bydemonstrating our technical capabilities throughout thezero-carbon fuel value chain.

Digital Power Plant Promotion
We will promote the implementation of digital power plants,
which provide higher lifecycle value by using the power of thecloud to gather information on the plants and their employees,
analyze real-time dataon variables likefacilities status andmarket trends, anddeliver quick and agile
operational responses
based on AI forecasts.
Supply Security Initiatives
In our position as Japan’s largest power producer, we look toensure a stable power supply through measures that include
steady operation of our active power plants, restarting idle thermal
power plants during peak demand, and adaptive responses toregular inspections.
We will also contribute to maintaining the stability of thepower system by operating an optimal portfolio to cope with
supply-demand fluctuations associated with the expansion ofrenewable energy sources.

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Value Creation
Infrastructure

FY2021 Milestones

Financial andCorporate Information

Our Facilities in Japan

Safety Initiatives
Based on our safety strategies for going global, we promoted zero-accident
principles, assigned dedicated safety personnel to all construction sites andpower plants, utilized digital tools to communicate, and began publishing thefrequency of accidents to visualize the level of safety.

Digital Power Plant Promotion
To make our digital power plants a reality, we developed apps in-house, fromverification and validation to the collection of big data. We applied AI-based
boiler operations optimization recommendations to actual power plant
equipment to reduce fuel consumption and CO2 emissions.

Zero-Emission Thermal Power Initiatives
We launched small-scale fuel ammonia tests at Hekinan Thermal Power Station
Unit 5 in preparation for the planning and design of large-scale co-firingdemonstration tests at Hekinan Thermal Power Station Unit 4.

Supply Security Initiatives
In addition to conducting priority inspections
before times of peak demand, we resumed
operation of Anegasaki Thermal Power Station Unit
5, which had been under a long-term planned
shutdown, and adjusted regular inspections toensure additional winter supply capacity ahead of
the tightening supply-demand situation.

Number of power plants

26

Number of LNG terminals

8 (excluding jointly operated
terminals)

Power generation capacity

66 GW

Experience and Talent Are the Keys to JERA’s BusinessEngineering
Through the expertise gained from designing a wide
variety of large-scale power plants, we seek to optimize
our plant design in line with JERA best practices andachieve enduring facility reliability and reduced
construction costs.

Procurement
We are working to reduce costs in all manner of equipment
and material procurement through several efforts, including
the pursuit of global best practices via market research andcost analysis, innovation in ordering methods, new supplieroutreach, and the utilization of third-party products andservices. We are also promoting responsible procurementthat is ESG-conscious.

Operations
We feature flexible and agile operation at our power plants,
LNG terminals, and other facilities thanks to ourexperience providing a stable power supply. For instance,
we have improved equipment reliability by reducing andpreventing equipment failure and expanding our fuelofferings. In addition, we are exploring the use of theInternet of Things (IoT) for remote supervision andpredictive management possibilities.

Maintenance
We are able to both reduce costs and maintain facility
reliability even beyond their design life by applying O&M
Engineering capabilities cultivated through many years ofexperience maintaining power plants and LNG terminals.
We will also improve market responsiveness and reduce
operating costs by shortening the time needed for regularinspections through on-site kaizen.

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Initiatives at Thermal Power Plants in Japan
Kawasaki Thermal Power Station
Contributing to Stable Supply
Combined cycle power generation fueled by LNG is highly
adaptive to load changes in electricity demand compared toother forms of thermal power generation. This means that output
can be adjusted significantly in a short period of time; forexample, output can be raised from 50% to full capacity in as
little as 10 minutes.
Currently, Kawasaki Thermal Power Station also plays a role inadjusting output according to fluctuations in power generationfrom renewable energy sources, which are affected by weather
and other factors, thereby contributing to a stable supply ofelectricity on a daily basis.

Kawasaki Thermal Power Station is a state-of-the-art power
plant that uses environmentally friendly liquefied natural gas(LNG) and achieves the highest standards of performancedue to its combined cycle power generation system with gas
and steam turbines. Group 2 Units 2-2 and 2-3 (MACC II)
achieved a combustion gas temperature of 1,600°C andfurther improved performance, reducing both fuelconsumption and CO2 emissions by around 30%.

Power generationequipment

Output(MW)

Unit 1-1
Group 1 Unit 1-2
Unit 1-3
Unit 2-1
Group 2 Unit 2-2
Unit 2-3

500
500
500
500
710
710

Fuel

Start ofoperation

Type of power
generated

LNG

February 2009
June 2008
June 2007
February 2013
January 2016
June 2016

Combined
cycle

Equipment inspection

Coexisting with Local Communities
Supplying Heat to Neighboring Factories
A portion of the steam used to generate power is supplied toneighboring companies through pipes laid in the area. The effective
use of this steam helps save energy and reduce CO2 emissions
throughout the entire region when compared to each company
producing steam independently.

Solar

Power
outputControl

Additional
fuel burnt

Thermal power generation

Additional
fuel burnt
Control

Control of thermal
power generation

Wind and biomass power generation
Base load power sources (nuclear, hydro, geothermal)
Morning

Noon

Night

Source: “10 questions for understanding the current energy
situation in FY 2021 version,” available on the
Agency for Natural Resources and Energy website

Kawasaki Thermal Power Station was the first power plant ineastern Japan to implement the Toyota-style kaizen system forinspection and maintenance operations to improve power
generation facility performance. The plant has achieved asignificant reduction in maintenance time through three basic
pillars for optimizing regular inspections: (1) off-line setup, (2)simultaneous operation, and (3) refinement.
This system enables us to promote the operating rate of thehighly efficient Kawasaki Thermal Power Station and reduce
operations at inefficient thermal power plants, thereby achieving
overall optimization of operations at our thermal power generation
facilities and contributing to the reduction of fuel costs and CO2
emissions. JERA was the first power generation company toadopt this kaizen approach internally, and now, after further study,
we have developed our own “JERA-style kaizen” to further
improve on this approach.

On-Site Impressions

Steam supply pipe

Power Plant Tours
In addition to in-person tours, Kawasaki Thermal Power Station hasoffered online tours since 2020 as a measure to prevent the spread of
COVID-19. The online tours have allowed people to participate
remotely from their homes and have been well-received. In FY2021,
382 people joined the in-person tours, and 1,213 people participated in
online tours.

Control of solar surplus powerPowerdemandHiroki Takeuchi
O&M Meter Unit
Kawasaki Thermal
Power Station

My primary responsibilities include maintenance of instrumentation controls
systems, which is essential for the safe operation of Kawasaki Thermal Power
Station, a leading digital power plant (DPP) running on thermal power. I also
handle the disconnection and reconnection of equipment required for performing
maintenance. I play a key role in exploring ways to work with and integrate
digital technology within the power plant. I find it very exciting and rewarding towork together with other key players from different departments on
unprecedented tasks, such as improving inspection apps and establishing
operational workflows.
I am very proud to work as part of “Team Kawasaki” at
Kawasaki Thermal Power Station. We really come together
as a team when problems arise and put every effort into
resolving them quickly. I’ll continue to bring a sense ofendeavor and a commitment to stable power supply to mywork every day.

Power plant tour

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Initiatives at Thermal Power Plants in Japan
Taketoyo Thermal Power Station
Introduction of Woody Biomass Facilities: Achieving Both a Stable Supply andReduced Environmental Impact
Taketoyo Thermal Power Station uses highly efficient ultrasupercritical (USC) pressure power generation equipment, thebest technology available for coal-fired power generation, andhas a capacity of 1,070 MW, one of the largest single-unit
outputs in Japan.
We are also working to improve environmental performanceby co-firing woody biomass fuel. From the mill pulverizing thefuel into fine powder to the burner serving as combustion
equipment, the facilities exclusively use woody biomass,
ensuring a high co-combustion ratio (co-firing rate of 17%) andfurther reducing CO2 emissions (≈ 0.9 million tons per year).

Steam turbine and generator

The Taketoyo Thermal Power Station is located in a
Type ofPower generation Output
Start ofFuel
power
temperate natural environment at the center of the Chita
equipment(MW)
operation
generated
Peninsula in Aichi Prefecture, at the mouth of Kinuura Bay,
Coal
AugustSteamnorthwest of Mikawa Bay.
Unit 5
1,070
Woody biomass
2022
power
Unit 1 started commercial operation in 1966, with Units
2 through 4 following in 1972, and they each played a major role in providing a stable supply of electric power to the Chubu
region. The plant has since been converted into a high-efficiency coal-fired power plant. Beginning in August 2022, it
incorporated co-firing of woody biomass fuel to offer a stable long-term supply of electric power, reduce the cost of power
generation, and improve environmental performance with the introduction of state-of-the-art equipment.

Wood pellet mill

Wood pellet burner

What is woody biomass?
Woody biomass is an environmentally friendly, carbonneutral fuel made from pellets of waste wood generated
during sawmilling (wood that cannot be used forconstruction, furniture, or other such applications). The
indoor coal storage area can hold ≈ 0.07 million tons ofwoody biomass fuel.
Wood pellets

Indoor coal storage area

Environmental Initiatives
Measures for Dust Control
We are striving to control dust through measures such as
adopting an indoor coal storage area designed with the smallest
possible openings and using an enclosed structure for ourdischarge conveyors and fuel-receiving operations.

Message from the Plant Manager

Measures for Noise Control
Above: Enclosed conveyor belt
Top right: Indoor coal storage area

We have implemented measures for noise control to protect thesurrounding area, including installing noise barriers aroundboilers, employing low-noise equipment, and installing sounddeadening devices.

Reuse of Coal Ash and Gypsum
We effectively use the coal ash (cinders and particulate matter)
generated from burning coal and the gypsum produced byexhaust gas desulfurization equipment as fuel for cement
production, material to make building boards, soil improvement
additives, and more.
Noise barrier

Masato Ishimura
General Manager, Headof Taketoyo Thermal
Power Station** as of March 31, 2022

For more than half a century since Unit 1 started operation in 1966, our plant has
fulfilled its role of contributing to society through stable, inexpensive power
supply while maintaining safety as our top priority. To continue to fulfill that rolein the long term, the plant underwent renovations to adopt state-of-the-art
technology in August 2022.
Given the plant’s location next to a residential area, various environmentallyfriendly measures were taken to prioritize the safety of local residents andensure that replacement work could continue with their understanding. Despite
major delays in equipment and material delivery and restrictions on the entry of
instructors from abroad due to the COVID-19 pandemic, we applied our kaizen
approach to complete the project successfully with our construction affiliates inthe spirit of “One Team JERA.”
Going forward, we are dedicated to maintaining safety in the operation ofthermal power generation equipment while maintaining high efficiency and low
environmental impact through woody biomass co-firing. In doing so, we hope
to contribute to a stable power supply and cherish the goodwill shown by the
local community.
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Message from the CFO on Financial Strategy
Consolidated net profit

Synergies■ Projected■ Increase the cost competitiveness ofthermal power in Japan■ Create new sources of revenue(Billion yen)

■ Actual(Billion yen)

280

105

85

100 90100 110

45

110
25

Kazuo Sakairi
Corporate Vice President, Managing
Executive Officer, Director,
Chief Financial Officer (CFO),
Finance and Accounting

2019

2020

2021 (FY)

2019

2020

2023 (FY)2021* Excluding time lag after fuel cost adjustments

Balance Sheet
Total assets increased substantially in FY2021 (compared to the previous two fiscal years) due tohigher resource prices in the market value of outstanding fuel and financial transactions, which are

Review of Our Business Plans Announced in April 2019

recorded by JERAGM as “derivative receivables and payables” in accordance with Singapore

Consolidated net income

accounting standards. Continued monitoring is warranted because subsequent changes in

In JERA’s business plan unveiled in April 2019, we set a target of 200 billion yen in consolidated

resource prices may cause the amount to fluctuate widely.

net profit by FY2025 (excluding time lag*). Although we booked losses attributable to temporary

Interest-bearing liabilities also increased compared to the business plan because we secured

factors such as selling excess LNG and the impacts of the pandemic during the three-year period

financing in FY2021 for: (1) short-term working capital in response to increasing losses attributablethrough FY2021, consolidated net profit for the period was essentially at the level set out in theto the lag after recent hikes in resource prices; (2) procuring additional fuel at spot prices tobusiness plan. The figure for FY2021 was 277 billion yen, well above our target of 110 billion yen.

stabilize our supply; and (3) investing in growth in North America and Asia.

This was due to the ability of JERA Global Markets (JERAGM), a subsidiary in Singapore engaged

On the whole, our total net assets align with the original plans.

in trading, to increase profits by capturing the volatility of resource prices while enhancing
supply stability.

Total assets

Total net assets

Interest-bearing liabilities*Profits or losses attributable to delays between fuel price fluctuations and when they are eventually reflected in sales prices■ Projected ■ Actual(Billion yen)

■ Projected ■ Actual(Billion yen)

■ Projected ■ Actual(Billion yen)

8,700

Synergies
In our previous business plan, we set out the goal to create synergies worth of at least 100 billion
yen per year within five years of integrating our existing thermal power generation and other

1,800

4,000
3,800

1,600
1,500
1,400

4,100
4,000

2,600

2,000
1,600

4,300

2,200
1,700
1,500

1,900
1,600

2019

2020

businesses; in FY2021, we created synergies worth of 85 billion yen.
We will continue to pursue this goal by proactively increasing the cost competitiveness ofthermal power in Japan and creating new sources of revenue.

2019

2020

2021 (FY)

2019

2020

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Message from the CFO on Financial Strategy

Cash Flow
Through FY2020, we were cash flow positive—operating cash flow exceeded our projections
while cash flow from investing trailed behind. However, in FY2021, our free cash flow was≈ –1,000 billion yen, mainly because operating cash flow was ≈ –340 billion yen due to temporary
factors such as losses attributable to lags and JERAGM increasing their reserve for deposits.
Additionally, cash flow from investing increased to ≈ 660 billion yen due to major investments
occurring during the period, namely in Freeport LNG (US) and Aboitiz Power (Philippines).
In response, we are striving to stabilize our finances by securing financing through various
means. We have borrowed from financial institutions and issued commercial paper (CP) in addition
to issuing straight bonds totaling 150 billion yen on six occasions through FY2021.
We are also seeking to further diversify our sources of funding to ensure consistent capital

CFO Sakairi in discussion with members of the Financial Strategy and Planning Groupfor expenditures that help us stabilize our supply of electricity, invest in growth, anddecarbonize. Specifically, we have increased our allotment for CP, concluded foreign currency

Formulating New Management Targets and Financial Strategy for FY2025

loans, and issued corporate bonds and transition bonds in US dollars since the fiscal year began.

This past May, we formulated and announced new management targets for FY2025 with the aim

We are also securing transition-linked financing and taking other steps to secure consistent,of growing sustainably and enhancing our corporate value by (1) promoting JERA Zero CO2

fit-for-purpose funding.

Emissions 2050 and (2) expanding global business while contributing to the consistent supply ofelectricity, even amid substantial changes to the circumstances surrounding the energy industry

Operating cash flow
■ Projected(Billion yen)

Cash flow from investing activities■ Projected(Billion yen)

■ Actual■ Actual

550
300

660
250

340

550

300
450
310

0

2020

2021 (FY)2019

toward that end. Accordingly, we expounded the discipline we seek in the new managementtargets, which we announced as the financial strategy to lead us to FY2025.

70
0

We believe these management targets and financial strategy will serve as key indicators for
–200

–250

demonstrating our vision to our stakeholders.

270

–340
2019

Corporate value must be enhanced sustainably, and we view disciplined growth as essential■ Projected ■ Actual(Billion yen)
240

–150

450

of late.

Free cash flow

2020

2021 (FY)

2019

2020

New Management Targets

Consolidated net profit–1,000

Profit and Expenditures(Billion yen)2021 (FY)

The target remains the same as the original business200

plan: 200 billion yen by FY2025.
However, we now present profit targets for eachfiscal year through FY2025, something we had notindicated previously. Notably, we have yet to set exact
targets for FY2022 because the situation in Russia /Ukraine and other developments have cast uncertainty

140

120*

160

TBD

2019–2021 2022
average

2023

2024

2025 (FY)* Excluding time lag after fuel cost adjustments

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Message from the CFO on Financial Strategy

on the future of resource prices and electricity sales, making it impossible to properly calculate

structure of our business changes. We believe it is necessary to improve our earning capacity to

our results at this time.

enhance our corporate value even as we project a higher WACC.

Profit and Expenditures by Segment

Consolidated net profit by segment

achievable target of 1,400 billion yen, the total capital expenditure planned from FY2022 to FY2025.

To better visualize how consolidated net profit will

■ Domestic Thermal and Gas ■ Fuel
■ Overseas Power Generation■ Decarbonization(Billion yen)
200
160
140

For the growth potential indicator, we have set out what we consider to be an eminently

increase, we also present our projections of profit
and expenditures by segment. In addition toincreasing revenues from each segment, we strive

We set this target to maintain our focus on achieving sustained growth and to avoid falling intoa temporary state of balanced contraction, a disadvantage of using ROIC wherein investments inlonger-term growth are withheld in anticipation of short-term gains.
For the financial health indicator, we set targets for net debt-to-equity and net debt-to-EBITDA

to maximize synergies between segments byratios to demonstrate our intent to operate under financial discipline. We will explain this point

managing our asset portfolio, optimizing our value

further in the “Financial Strategy” section below.

chain, and improving our trading performance.
Notably, we expect ≈ 80% of the FY2025 net
profit target of 200 billion yen to come from projects

Achieving these well-balanced financial indicators—and ensuring that they stay well-balanced—

0

will allow us to enhance our corporate values sustainably.
2023

2024

2025

(FY)

in which we have already invested. Therefore, we

New Management Targets

believe we have already reached a level at which thetarget is attainable.
Indicators for Profitability, Capital Efficiency, Growth Potential, and Financial Health
We formulated the new management targets for FY2025 in terms of profitability, capitalefficiency, growth potential, and financial health.
For the profitability indicator, we added a target EBITDA of 500 billion yen to the consolidated

For the capital efficiency indicator, we set targets for ROIC, which shows the earning capacityof our asset businesses, and WACC, which represents our cost of capital. The following are two

FY2019–FY2021 average

FY2025 target

Net profit*
EBITDA*ROIC*
WACC

Investments indecarbonization

120 billion yen
350 billion yen≈ 3.5%≈ 3.0%FY2019–FY2021 total≈ 1,200 billion yen≈ 1.0x≈ 4.0 years
FY2019–FY2021 total≈ 80 billion yen

Co-firing with ammonia—

Co-firing with hydrogen

—

ROE*

≈ 7.0%

200 billion yen
500 billion yen≈ 4.5%≈ 3.5%FY2022–FY2025 total≈ 1,400 billion yen
1.0x or lower
4.5 years or less
FY2022–FY2025 total≈ 650 billion yen
20% of demonstration tests
completed
30% of demonstration tests
completed≈ 9.0%

Profitability
Capital efficiency
Growth potential

CFI

Financial healthNet debt-to-equity ratio
Net debt-to-EBITDA ratio*

net profit target of 200 billion yen. We set this target to assess and manage the cash creation
capacity of cash flow businesses, namely JERAGM’s capacity for fuel volume adjustment.

Performance indicators

Information forreferencepoints we want all stakeholders to understand about capital efficiency.
The first is that we intend to expand the spread between our ROIC and WACC. Specifically, we* Excluding time lag after fuel cost adjustments. Excluding a one-time gain of ≈ 120 billion yen from trading

aim to increase the spread to 1% by FY2025, double the average spread of ≈ 0.5% from FY2019
to FY2021. We hope to achieve this to increase our EVA and enhance our corporate value.
The second point is that we are aware that expansion in our business domains and geographic
areas will increase the cost of capital (WACC) that underpins our enterprise.
We expect our fuel and overseas power generation businesses to comprise a greater
proportion of our income from now through FY2025, and thus anticipate a higher WACC as the

Financial Strategy
Our financial strategy comprises balance sheet management and capital allocation. To stabilize our
supply of electricity in Japan, decarbonize, and achieve global growth centered on Asia, we must
expand our renewable energy and domestic power generation businesses (including zero CO2emissions thermal power generation) in addition to scaling up our business in Asia. We must also

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Message from the CFO on Financial Strategy

become involved in fuel upstream and transport business across a broader area, including North
America, Australia, and the Middle East.

Capital Allocation
We expect to create an operating cash flow of 1,580 billion yen over the four-year period fromAccordingly, we require strict financial discipline to properly manage our long, cross-bordervalue chain, our trading business that fully leverages the optionality of our value chain, and assets
in excess of 10,000 billion yen that underpin our trading business.

FY2022 to FY2025 and will direct it toward proper balance sheet management without relying
excessively on debt.
Next, let me explain our allocation of funds, which indicates the course toward the sustainable

To practice financial discipline on this level, we use balance sheet management to maintain andmanage our financial health.

growth we seek. We plan to make an aggressive allocation to capital expenditures(CAPEX)—1,400 billion yen of our expected cash flow of 1,600 billion yen, mainly from operating

Additionally, we turn to capital allocation to indicate our growth-oriented cash flow discipline aswell as the distribution of funds and course toward the sustainable growth we seek.

cash flow. By allocating the majority of our cash flow to CAPEX, we aim to promote growth andenhance our corporate value, thereby benefiting our stakeholders.
The section on “Capital investment” below provides a breakdown of CAPEX.
First, we plan to allocate 1,200 billion yen to growth sectors through FY2025. We will allocate

Financial Strategy

Now

Safety—Optimal capital
structure

Debt servicing
capacity—

Balance sheet
management

Credit ratings

A rating

Risk capital—

Distribution of funds—

FY2025Net debt-to-equity ratio
1.0x or lower
Net debt-to-EBITDA ratio
4.5 years or lessdecarbonization-related fields to drive efforts toward carbon neutrality while pursuing growth.

A rating

us to maintain our momentum in fulfilling our responsibilities as the largest power generation

Amount in excess of total risk
exposure
Promoting investments forsustainable growth

Capital allocation
Discipline

just over half this amount—650 billion yen—to renewable energy, hydrogen, ammonia, and other

Ensuring sufficient operating cash flow

We also intend to allocate 600 billion yen to areas that help us stabilize our supply of electricity
in Japan. Although some of these areas overlap with growth sectors, these allocations will allow
company in Japan.

Financial Strategy: Capital Allocation
Capital allocation
Cash inflow

Balance Sheet Management
We will implement balance sheet managementwith the goal of maintaining our current financial

Financial Strategy: Balance SheetManagement
FY2025 (projected)
EBITDA

strength rating of A through FY2025.
Our specific targets are 1.0x or lower for net
debt-to-equity ratio, a measure of safety, and 4.5
years or less for net debt-to-EBITDA ratio, anindicator of debt servicing capacity.

AssetsTotal assets:≈ 7,000 billion
yen*

These targets allow us to maximize financial
leverage without compromising our focus on theInterest-bearing
liabilities≈ 2,500 billion
yen

Liabilities
Total net
assets ≈ 2,300
billion yen

Procurement–
repayment(Net procurement)≈ 20 billion yen

Cash outflow
Shareholder return≈ 200 billion yen

Decarbonization≈ 650 billion yen

Net debt-to-EBITDA
ratio: 4.5 years or less

Net debt-to-equity
ratio: 1.0x or lower

OCF≈ 1,580 billion yen

Capital investment

CAPEX≈ 1,400 billion yen

Growth investments≈ 1,200 billion yen
Overseas power generation and fuel≈ 250 billion yen

Risk buffer
Total risk
exposure* Including cash and cash equivalents of 300 billion yen

Domestic thermal≈ 500 billion yen

Replacement≈ 350 billion yen

Stabilizing supply≈ 600 billion yen

Functional maintenance≈ 150 billion yen

discipline to maintain our A rating. We also drew
upon our optimal capital structure to calculate these targets.

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Message from the CFO on Financial Strategy

undertake subsequent actions, namely management resource allocation and portfolio management.

Mechanisms for Ensuring the Effectiveness of Corporate Value Creation
Mechanisms are required to ensure the effectiveness of efforts to enhance our corporate value
while striving to achieve our new management targets and financial strategy. We employ three

Initiatives for Enhancing Our Corporate Value

methods—business management, an investment evaluation process, and integrated risk

In light of the worldwide push toward decarbonization and other aspects of the global situation,

management—to solidify our efforts to enhance our corporate value.

the business environment continues to change with unprecedented speed. The future remains(For more information about the investment evaluation process and integrated risk management, see the subsection titled “Highly
Effective Risk Management” in the Risk Management section of the report on p.73.)

difficult to predict amid the recent surge in resource prices and burgeoning geopolitical risks. Our
Finance and Accounting Department, which I oversee as CFO, formulates and announces ourfinancial strategy and management targets for sustaining our creation of corporate value while• Business Management

adapting to these changes. We are proceeding with targeted initiatives to ensure the

To ensure the effectiveness of corporate value creation, we created a KPI tree for each

effectiveness of our efforts to enhance our corporate value, namely advancing our business

management target to guide our business management. Each tree features KPIs for the entire

management and financial and accounting systems, which will become a reliable compass forcompany as well as the relevant business departments, segments, and regions.

management to plot their course swiftly and in an agile manner.

Before the start of each fiscal year, we set targets and formulate action plans for achieving
them for the entire company and across each department, segment, and region.

Consistent with our belief in the importance of close coordination between our locations insideand outside Japan, the department also holds regular meetings for the CFOs of our overseas

Then, each quarter, we check the KPIs to see how management is progressing toward achieving
the targets and elicit specific points for improvement for the immediate future, which we use to

locations as well as global meetings for finance and accounting departments with the aim ofmaintaining close connections and open information sharing.
Additionally, the Finance and Accounting Department forms various teams that function
organically. For example, we have a team that manages and studies tax risks, ensuring the rigor of

Example KPI Tree
Companywide

Department

Corporate
value

Department 1
Net profit

EVA®

ROIC

Net profit

Profitability, capitalefficiency

Department 2
Net profit

Segment

our tax compliance and the appropriateness of our tax payments. Our global finance teamSegment 1
Net profit

positions us to respond to a sudden demand for funds, and our global IR team exists to

Segment 2
Net profit
Segment 3
Net profit

for our investments as well as M&As.
Furthermore, we are trying to acquire a diverse range of talent who can thrive in the current

Segment 4
Net profit

business environment. Toward that end, we are accepting transfers from the TEPCO and Chubu

Department 3
Net profit

Segment 5
Net profit

groups in addition to empowering women and hiring experts and professionals. As a result of our

EBITDA

Department 1
EBITDA

Segment 1
EBITDA

Invested capital(same as above)

Department 2
EBITDA

Segment 2
EBITDA

FinancialhealthDepartment 3
EBITDA
WACC

strengthen our engagement with investors. Our internal financial advisory team provides support

Net debt-to-equity
ratio

efforts, the Finance and Accounting Department is leading the way in our diversity and inclusion
initiatives, with more than half of our 135 members already highly skilled at the time of employment.
At the Finance and Accounting Department, we aim to implement measures like these insupport of JERA’s efforts to enhance its corporate value and, in doing so, become a team ofprofessionals that is highly valued by internal and external stakeholders alike.

Department 1
Net debt-to-equity ratio

Growthpotential

Net debt-to-EBITDA
ratio
Invested capital

CFI

Department
CFI

Segment 1
CFI* This tree is provided as an example of how we set and track KPIs tailored to the characteristics of each department and segment.

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Formosa 1 Offshore Wind Power IPP Project in Taiwan
Since 2020, JERA has been a member of the Ocean Renewable Energy Action Coalition (OREAC) and is engaging governments and industries to consider the sustainable expansion of offshore wind by
2050. JERA seeks to become a global leader in renewable energy, and we are committed to supporting large-scale offshore wind power projects in Japan and overseas and participating in industry-wide
efforts toward popularizing these sustainable projects.

© Formosa I Wind Power Co., Ltd. All rights reserved.

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Response to TCFD Recommendations
Fundamental Approach
As a global enterprise committed to solving energy problems in Japan and around the world, weGovernance and Risk Management

consider measures to combat climate change to be a priority issue and have identified theGovernancerelevant material issues.

Decisions about important policies, new and updated targets, and other matters pertaining to

In September 2021, we endorsed the TCFD*1 recommendations and joined the TCFD

measures to combat climate change are made by the Board of Directors or the Leadership Panel

Consortium.* To properly evaluate climate change-related risks and opportunities and sustainably

based on our corporate governance system. We have also established a Sustainability Promotion

enhance our corporate value, we have identified four elements—governance, risk management,

Committee for the purpose of enhancing environmental, social, and corporate governance (ESG)

strategy, and metrics and targets — in line with the TCFD Recommendations that summarize ourmanagement. This cross-divisional committee is chaired by the president and reports directly to

climate change-related systems, our business in general, and the initiatives typified by the Three

the Board of Directors. Its Environmental Subcommittee reports on the plans and results ofApproaches of JERA Zero CO2 Emissions 2050.

measures to combat climate change and other environment-related initiatives for each fiscal year.

2

We will continue to disclose information in line with the TCFD recommendations and further
enhance communication with investors and other stakeholders.

Directors hold active discussions with outside experts and specialist organizations to keep pacewith the latest information and findings, which they share with the Leadership Panel and otherinternal groups. We also host ESG seminars for our employees in addition to providing opportunities
for them to have discussions with the directors. We are proactively working to further improve our*1 The Task Force on Climate-related Financial Disclosures (TCFD) is the task force established by the
Financial Stability Board (FSB) at the request of the finance ministers and central bank governors of
G20 countries to stabilize the financial system in the face of factors attributable to climate change.
The task force has published a framework and recommendations to guide companies’ disclosurespertaining to the risks and opportunities posed by climate change.
*2 The TCFD Consortium is a forum established for companies and financial institutions that endorse
the TCFD Recommendations to hold discussions and work together to ensure effective disclosuresby companies and facilitate sound investment decisions by the financial institutions to whom thedisclosures are made. To further enhance disclosures in line with the TCFD Recommendations andpromote constructive dialogue between investors and companies, the consortium actively publishes
guidance on various matters and also hosts TCFD Summits to give companies and financial
institutions from around the world opportunities to gather in one place.

ESG activities by continuing to expand our directors’ and employees’ understanding of informationand trends in climate change and other aspects of ESG management.
Corporate Governance: p.69
Sustainability Management Structure: p.52

Risk Management
We have established a risk management system headed by the president to understand andmitigate risks associated with corporate activities. The system conducts integrated risk
management, categorized into operational, market, and credit risks. We identify climatechange-related risks in recognition of their potential to impact the different types of risk. Risks to
be managed by directors are identified as “significant risks to be managed by management.” The
Risk Management Committee (chaired by the president) monitors and reviews the management
status and plans for responding to these risks and then reports them to the Board of Directors atscheduled intervals or as needed.
Risk Management: p.72

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Response to TCFD Recommendations

Strategy
Defining the Scope of Analysis

Scenario Configuration

We conduct scenario analysis to identify and analyze risks and opportunities throughout our

The following two scenarios have been established with reference to the information published bybusiness value chain. Our analysis covers not only the short term (through 2025), but also thethe International Energy Agency and the Intergovernmental Panel on Climate Change.

medium term (through 2030) and long term (through 2050).

Under 2°C scenario
Bold policies and technological innovations are implemented to achieve sustainable
development, and they successfully limit the increase in average global temperatureby the end of this century to 1.5°C–2.0°C from pre-industrial levels.
Reference scenario

Over 4°C scenario
Although intended nationally determined contributions under the Paris Agreement
and other new national policies are implemented, the average global temperatureby the end of this century is at least 4°C higher than pre-industrial levels.

IEA: Sustainable Development Scenario (SDS)
IPCC Sixth Assessment Report, Working Group 1: SSP 1-1.9, SSP 1-2.6

Reference scenario

IEA: Stated Policies Scenario (STEPS)
IPCC Sixth Assessment Report, Working Group 1: SSP 3-7.0, SSP 5-8.5

Changes in the global energy supply*1
2050

Now

2050

Power generation output

57,950 TWh (including 48,436 TWh of renewable energy)

26,762 TWh (including 7,593 TWh of renewable energy)

46,703 TWh (including 27,883 TWh of renewable energy)

Electrification rate

40%

20%

26%

Demand for hydrogenand ammonia

21 EJ

0 EJ

2 EJ

Demand for natural gas

2,029 bcm (including 880 bcm in Asia)

3,401 bcm (including 839 bcm in Asia)

4,362 bcm (including 1,442 bcm in Asia)

Changes in global climate and sea level*2
2100

Now

2100

Increase in averagetemperature+1.5°C–2.0°C+1.1°CAt least +4°C

Extreme heat events*3

Frequency: 4.1x Temperature increase: +1.9°C

Frequency: 2.8x Temperature increase: +1.2°C

Frequency: 9.4x Temperature increase: +5.1°C

Extreme precipitation
events*3
Sea level rise

Frequency: 1.5x

Rainfall increase: +10.5%+0.4–0.7 m

Frequency: 1.3x

Rainfall increase: +6.7%+0.2 mFrequency: 2.7x

Rainfall increase: +30.2%+0.8–1.2 m*1 Prepared based on SDS and STEPS from IEA World Energy Outlook 2021
*2 Prepared based on IPCC Sixth Assessment Report, Working Group 1. All figures compared to presumed pre-industrial levels*3 “Extreme” refers to weather events with a probability of occurring once in 10 years.

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Assessment of Impact on our BusinessWe listed and analyzed climate change-related risks and opportunities for our business based on the scenarios on the previous page.
We will work to reduce the risks and seize the opportunities through JERA Zero CO2 Emissions 2050 as well as other efforts and measures.

Category

Projected Changes in Business Circumstances

Impact on JERA

• Increased operating costs due to carbon pricing

Policy and legal

Stricter regulation of fossil fuel use• Introduction of carbon pricing• Stricter energy conservation regulations• Greater need for better energy transport and consumption efficiency

Technology
Under 2°C
scenario

Market and services

Market and services /Reputation

Changes in energy supply structure through the development andintroduction of non-fossil energy technologies• Development and cost reduction of green fuel technology• Reduced cost of renewable energy and battery storage technology• Grid diversification

Electricity market expansion, diversification of the value of electricity• Increased demand for electricity driven by economic growth and electrification• Increased consumer need for green products and services

Growing global awareness of climate change• Divestment and engagement by investors•E fforts to combat global warming accelerated and more directly connected tothe public’s impressions of companies• Reduced utilization rate of JERA power sources• Expanded opportunities to develop and introduce hydrogen and ammonia fuels• Expanded business opportunities provided by renewable energy and battery storage• Expanded opportunities to supply power• Increased need for natural gas as a bridge fuel• Expanded business opportunities provided by green electricity and fuels• Financial constraints rooted in limited investment in / divestment from the fossil
fuel business• Reputations compromised due to slow or delayed efforts to combat global warming• Expansion of opportunities to leverage transition / green financing• Reputations boosted by setting and achieving ambitious goals to combat global
warming

Increased acute risk•M ore frequent/severe natural disasters

Over 4°C
scenario

Acute/Chronic

Increased chronic risk•S ea level rise, increased tsunami height•C hanges in climate patterns (e.g., sustained high temperatures)•C hanges in drought risk

• Increased cost of disaster response• Increased operating costs associated with facility shutdowns and output constraints

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Risk level
Billion yen/TWh

10

5

0

5

10

Financial Impact Sensitivity*
Method of Assessment

Impacted Financial Factors

Sensitivity to increases in the cost of coalfor thermal power generation, assuming theprice of CO2 in the reference scenario

Costs

Sensitivity to decreases in operating costs
for each point of improvement of thermal
power generation efficiency

Costs

Sensitivity to decreases in sales due toreduced volume of electricity sold

Sales

Sensitivity to the avoided cost of coal forthermal power generation, assuming theprice of CO2 in the reference scenario

Costs

Sensitivity to increases in sales due toreduced volume of electricity sold

Sales

Sensitivity to increases in operating costs
for each point of increase in capital costs

Costs

Sensitivity to decreases in operating costs
for each point of decrease in capital costs

Costs

Sensitivity to increases in operating costs
from switching power sources due to facility
shutdowns and output constraints

Costs

Through 2025

Through 2030

Through 2050

Opportunity level
Billion yen/TWh*	Each risk and opportunity factor is shown here with the method of assessment, the financial
factors it impacts, and the financial impact per unit of power generated over the short term
(through 2025), medium term (through 2030), and long term (through 2050) expressed as
financial impact sensitivity.
Financial impact sensitivity for each risk and opportunity is color-coded in three levels (0–5billion yen/TWh, 5–10 billion yen/TWh, and over 10 billion yen/TWh) as shown in the legend.
(1 TWh = 109 kWh)

JERA’s Response to Changes

Actively investing in growth sectors, namely decarbonization businessAs shown on p.42, in the four-year period from FY2022 to FY2025, we allocated a total of 1,200
billion yen—including 650 billion yen for decarbonization—to investments in growth sectors.
Steadily promoting JERA Zero CO2 Emissions 2050
We will continue to promote the following measures based on the vision included on pages 1
and 17 to achieve our new vision for 2035 and net zero CO2 emissions from all JERA
businesses (Japan and worldwide) by 2050 (p.20).
•C easing/discontinuing coal thermal power generation, streamlining LNG thermal
power generation•P romoting hydrogen-ammonia co-firing, expanding co-firing rates/transitioning tosingle-fuel firing•E xpanding renewable energy, using battery storage to support the adoption ofrenewable energy

Actively disseminating information to stakeholders
We will disseminate information about our efforts to achieve zero emissions to electricity users,
investors, and other stakeholders in an effort to expand green electricity and diversify oursources of funding.

Improving disaster resilience
Our efforts to prepare for both acute and chronic natural disaster risks include developing rules
and manuals for responding to emergencies and disasters, conducting disaster drills on aregular basis, and upgrading the JERA version of the business continuity plan (BCP) andbusiness continuity management (BCM).
We will also diversify our suppliers and methods of sourcing power and fuel to enhance ourdisaster resilience.

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Response to TCFD Recommendations

Assessment of Impact on Our Business: A Deep Dive into theunder 2°C Scenario
In light of the steady progress we have made in our business toward achieving JERA Zero CO2Emissions 2050 since announcing it in October 2020, and due to changes in business

Assessment of Cost Advantages of Introducing Ammonia*≈ 250 billion
yen/yearcircumstances, we formulated a new long-term vision for 2035 and unveiled JERA Environmental
Commitment 2035, a set of new environmental targets for achieving the new vision. We updated
the JERA Zero CO2 Emissions 2050 Roadmap for JERA Business in Japan based on the newtargets, and our updated plan for introducing hydrogen and ammonia co-firing in Japan is asshown on p.22.

Advancement of decarbonization technologies andpolicies
Expansion of ammonia
introduction≈ 50 billion
yen/yearOn this deep dive into scenario analysis in line with the TCFD Recommendations, we analyzed
the financial impact on JERA of introducing ammonia to our power generation business, which isdriven by technological development, assuming the under 2°C scenario and the aforementioned

2030

plan for introducing ammonia in Japan.
Our analysis revealed potential cost advantages on the order of 50 billion yen per year by 2040
and 250 billion yen per year by 2050 compared to the scenario in which we continue using coal.

Ammonia

co-firingrate of 20%
Start ofcommercial
operation

HydrogenDevelopment of technology
for expanding co-firing rates /facility size

We will continue to proactively develop large-scale fuel ammonia co-firing technology and otherdecarbonization technologies in addition to devoting energy to ensuring the economic viability ofthe technologies so that they can help the world move away from carbon as a source of energy.

2040
co-firingrate of 50%+
Start ofcommercial
operation

Development of
single-fuel boilers/gas turbines

2050
Transition to
single-fuelfiringHydrogenco-firing
Start ofcommercial
operation* All figures calculated based on assumed parameters (e.g., reference scenario). Actual cost effectiveness may differ as businesscircumstances change. The sizes of the circles on the graph illustrate ammonia amounts.
Hydrogen is not included in the scope of this impact assessment. The plan for introducing hydrogen is provided here for reference.

Metrics and Targets
We view JERA Zero CO2 Emissions 2050 as a long-term goal and have developed a roadmap for

Targets: JERA Zero CO2 Emissions 2050 Roadmap for its Business in Japan (p.20)

achieving it as well as interim targets for CO2 emissions in 2030 and 2035. Additionally, we

Actual results: Non-Financial Data Environmental Data (p.81)

continue to calculate and assess actual results each year to manage our progress.

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Value Creation
Infrastructure
51
53
56
57
58

ESG Management

59

Diversity & Inclusion: Creating an
Organization that Honors Individual
Strengths

61
62
63
64
66
68
69
71

Communication with Employees

72
75
76
78

Risk Management

Environment
Talent Development
Diversity & Inclusion
Talent Development: “DEI” is the
Source of Solutions and Innovations

JERA Work Design
Human Rights
Coexisting with Local Communities
Safety and Health
Stakeholder Engagement
Corporate GovernanceCorporate Goverance: The Strong
Board of Directors Behind JERA’s
Autonomous Management System
Information Security
ComplianceDirectors & Officers

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ESG Management
Our Vision for ESG Management at JERA
Our vision for environmental, social, and corporate
governance (ESG) and its management is clear andunique. At JERA, we believe that everything we dorelates back to ESG. Specifically, we have a unique
responsibility as one of the world’s largest power
producers to pursue decarbonization in the energy value
chain through new technologies and ideas (E and S); we
provide the stable supply of energy that underpins social
life (S); and we aim to break the mold of the Japanese
power industry to achieve true global business expansion(S and G).
Unlike Europe and the United States, Japan is a
mountainous country surrounded by deep sea, which
limits the penetration of renewable energy. It is alsocharacterized by high precipitation and frequent typhoons,Tatsuya Tsunoda
Managing Executive Officer(ESG)

which can cause significant fluctuations in renewableenergy output. To ensure the stable delivery of electricity to customers, we must supplement this
output with thermal power generation, which we can operate flexibly. JERA’s ESG approach is
unique in that to solve environmental issues, we not only focus on the development of renewableenergy but were also among the first to take the bold step of shifting to low greenhouse gas
thermal power generation and using hydrogen and ammonia as fuels for thermal power
generation, which is one of our strengths. Our vision for ESG is to apply our expertise andtechnologies to the diverse characteristics of each region where we do business, adapting andgrowing together with regions overseas, especially in Asia, where economic growth is strong,in order to build a sustainable energy supply system for the next generation.
The driving force behind ESG management at JERA is two-fold, combining our workforce’s
various personalities, abilities, and expertise with an autonomous global management structure
comprised of management and energy professionals. And we must refine these forces to further
enhance ESG management. In particular, to further develop our unique organizational culture, one of
JERA’s strengths, we will continue to create pleasant workplaces that foster respect, inspiration, andsupport among our diverse talent, which spans gender, nationality, and background.
JERA will utilize the opinions of outside stakeholders in the advancement of ESG
management, and at the same time, we hope to increase engagement through extensive
communication of our commitment and efforts to contribute to sustainable social development.

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Sustainability Promotion Initiatives

Directors on incorporating an ESG perspective into business plans and disclosing non-financial

Sustainability at JERA is headed by the Sustainability Promotion Committee, which reports

information regarding JERA’s medium- to long-term strategy and CO2 emissions targets.

directly to the Board of Directors and is chaired by the president. The committee discusses

The group will continue to share with management information on ESG trends, issue awarenessinternal and external issues related to the SDGs and company-wide promotion of sustainability.

and perspectives among capital market participants, and other matters, incorporate these into

In FY2022, the committee has engaged in many discussions, especially on materiality and thegovernance, and strive to enhance JERA’s corporate value through improved information disclosure.

value-creation process.
In addition, four executive subcommittees (Environment Subcommittee, Society and Human

Main Issues

Rights Subcommittee, Governance Subcommittee, and PR and IR Subcommittee) are working• ESG strategies that contribute to the improvement of corporate value

across divisions on sustainable business activities from an ESG perspective and are looking into

• Strategies for effective disclosure of information to stakeholders

ways of enhancing communication with stakeholders, particularly the Integrated Report, and to• Provision of information and recommendations related to global ESG trends and developments

promote internal awareness.

*1. Global Advisory Expert: An advisor invited to the group as an outside expert with deep knowledge of global management.
*2. Paul Hanrahan (former CEO of AES), Nobuo Tanaka (former Director General of IEA), Hendrik Gordenker (former JERA Chair)

Sustainability Management Structure(as of August 31, 2022)

United in Our Commitment to ESG
We actively promote discussion among employees to engage our employees on ESG-related

Board of Directors

themes.
Sustainability Promotion Committee

We are experimenting with bringing employees together online from various locations and age

Chair: Presidentgroups in employee-led small-group sessions to share information on ESG-related initiatives andraise awareness of the issues that each workplace faces. We hope this will lead to the creation of

Sustainability Promotion Committee Executive OfficeEnvironmental
Subcommittee

Society and Human
Rights Subcommittee

Governance
Subcommittee

new ideas from the bottom up. These small groups also serve as forums for sharing and
PR and IR
Subcommittee

discussing the ESG strategies that JERA is pursuing as a corporate group.
In FY2022, we will also conduct in-person meetings, using the company-wide theme of ESG as
an opportunity to deepen interactions among employees and achieve common objectives.

Recommendations for the Board of Directors
The ESG Advisory Group was established in September 2021 as a voluntary panel to provide
advice and recommendations to the Board of Directors and, as necessary, to executives from thestandpoint of ESG. Members include Director and Executive Vice President Kazuo Sakairi ascoordinator, Director Joseph Naylor, GAE Paul Hanrahan*1, GAE Nobuo Tanaka, and Senior Advisor
Hendrik Gordenker.
This group is composed mainly of outside experts*2 familiar with the energy industry andcorporate management and addresses ESG-related issues. Over more than ten meetings, the group
has had animated discussions on trends in the ESG field that impact JERA, the views of capital
market participants on ESG, and how business plans and disclosures should be made from an ESG
perspective. As a result, the group has provided advice and recommendations to the Board of

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Environment
Fundamental Approach

Committee for the purpose of enhancing ESG management.

As a leader in the domestic thermal power generation industry,

This cross-divisional committee is chaired by the President and

JERA respects energy and environmental policies such as thereports directly to the Board of Directors. Meanwhile, theBasic Energy Plan and actively promotes the development ofEnvironmental Subcommittee reports on the plans and results

renewable energy.

of environment-related initiatives for each fiscal year. The

Furthermore, we seek to become a global energy company

Environmental Subcommittee will continue to play a central

and are fully aware of the need to protect the environment on arole in better environmental management and contributing to

global scale. We strictly observe the environmental laws andthe development of a sustainable society. (Diagram ofordinances of each country and territory and work to reduce ourSustainability Management Structure: p.52)

environmental footprint, which includes reducing CO2 emissions

Environmental Education

to realize a sustainable environment, society, and economy.

We provide training for employees involved in environmental

Environmental Management System

operations at our power plants and other facilities so that they

To minimize resource consumption and the generation of

can acquire the necessary knowledge and skills concerning

environmentally hazardous substances, we are actively

the environment. Training levels correspond to job class andIssue Awarenessworking to improve power generation efficiency, reduce our

proficiency, and we are working to develop environmental

As the world’s population grows and the global economy

CO2 emissions, remove air pollutants, and recycle waste. In

education programs for employees.

develops, we see increasingly severe environmental issues on aaddition, we have established a Sustainability Promotion

global scale, including overuse of resources, waste andpollution, and loss of biodiversity. Global warming, in particular,
is progressing due to increased greenhouse gas emissions fromhuman activities, and disasters caused by extreme weather
events are becoming more frequent and intense worldwide,
threatening people’s livelihoods and economic activities.
Amid this situation and in response to the agreements by
the international community on SDGs and the Paris

Material Balance (FY2021*1)
Input

Fuel consumption
Coal

20.04 million t

Petroleum

0.04 million kl

LNG*2

27.43 million t

Biomass

0.38 million t

and the creation of a recycling-oriented society is accelerating.

Total energy
consumption
50.80 million kl(crude oil
equivalent)

As such, there are increasing demands and expectations for

Water usage

Agreement, the development of targets and frameworks forclimate change countermeasures, conservation of biodiversity,

governments and corporations to take action.
JERA is committed to taking the initiative in working tosolve environmental issues while coordinating with our
stakeholders by utilizing our technologies and know-how torealize a sustainable society conducive to both environmental
conservation and economic growth.

Business Activities

Fuel
Fuel sales
transportation and trading

Purchased
electricity
84.75 million kWh

GHG emissions (CO2 equivalent)
Gas sales

Gas sales
volume3.82
million tPower
Sending-end
generation
power

Industrial water
intake18,165 thousand m3

Tap water intake

864 thousand m

Groundwater
usage

118 thousand m3

Total

Upstreamdevelopment
Fuelprocurement

Output121,098 thousand t-CO2

Scope 237 thousand t-CO2

Scope 332,508 thousand t-CO2

Total

153,643 thousand t-CO2

SOx emissions

Gross wastewater
volume6.32 thousand t

7,188 thousand m3

NOx emissions

COD emissions

17.68 thousand t

20 t

Disposal byreclamation

3

19,147 thousand m3

Scope 1

247.3 billion
kWh

19 thousand t*1. Figures for JERA in Japan and joint ventures with Hitachinaka Generation Co., Inc. and JERA Power TAKETOYO LLC only *2. Includes natural gas and LPG

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Environment

Reducing CO2 Emissions

JERA will promote the adoption of greener fuels and pursue

effluent standards of laws and ordinances, as well as

In October 2020, we announced JERA Zero CO2 Emissions 2050

zero-emission thermal power during power generation. We aim

environmental conservation agreements we have withas our commitment to curbing CO2 emissions for the future.

to achieve zero emissions by supplementing the introduction ofmunicipalities. We discharge this wastewater appropriately

With a mission of providing cutting-edge solutions to therenewable energy, which is susceptible to natural conditions,while monitoring it using continuous water quality

world’s energy problems, we will take on the challenge ofwith zero-emission thermal power, which can generatemeasurement equipment. In addition, to keep the temperatureachieving net zero CO2 emissions from our operations in Japan andelectricity in a stable manner without CO2 emissions.

of the seawater used in the condenser from rising, we take it inslowly from the deeper layers where the temperature is lower.

abroad by the year 2050 in order to realize a sustainable society.

Preventing Air Pollution

When discharging it, we do so slowly to the surface by reducing

initiatives, which include promoting our business both in Japan

Air pollutants emitted from our thermal power plants include

the discharge velocity, giving full consideration to theand overseas and participating in related organizations. Withsulfur oxides (SOx), nitrogen oxides (NOx), soot, and dust,

environmental impact on the surrounding sea.

offshore wind power, we have participated in projects in the

primarily from boiler exhaust. In order to comply with emission

U.K. and Taiwan and are now considering development

standards set by laws and ordinances as well as environmental

projects in Hokkaido and the Tohoku region. In our solar power

conservation agreements with municipalities, we are improving

generation operations, in addition to participating in projects

combustion methods and working to reduce emissions bythroughout Asia, we have signed a business allianceinstalling exhaust gas desulfurization equipment, exhaust gas

agreement with West Holdings Corporation in Japan and plan

denitration equipment, electrostatic precipitators, and otherto develop facilities with a total capacity of more than 1 GW byequipment. In FY2021, our SOx and NOx emissions per unit of

the end of FY2025.

production were 0.03 g/kWh and 0.07 g/kWh, respectively,

We also continue to work on ongoing renewable energy

Our efforts to reduce CO2 emissions from thermal power

which are extremely low compared to major Western countries.

generation include the implementation of large-scale woody
biomass co-firing (co-firing rate of 17%) at Taketoyo Thermal
Power Station Unit 5, which started commercial operation in
August 2022, and work on a proof-of-concept for hydrogen andammonia co-firing.

SOx and NOx Emissions Per Unit of Power Generation Output in
Major Countries (2019) (Thermal power plants)(g/kWh)2.0

FY2021

Total thermal
power generation
efficiency(low heating value)

48.2

%

■ NOx

1.5
1.07

1.0

Highestperformancein Japan

■ SOx

1.71

[Taketoyo Thermal Power Station Unit 5] Highly
efficient coal-fired power generation using an
ultra-supercritical (USC) power generation system
Percentage ofwoody biomass
co-firing

17%

0.5
0

0.54

0.33 0.31
US

0.08
Canada

UK

0.75
0.47

0.36

0.08
France0.04
Germany

0.15 0.16 0.24

Italy

Japan

Source: Based on OECD Stat Extracts (for emissions)and IEA World Energy Balances 2021 (for power generation output)
画像アタリ

Reduce CO2 emissions using woody biomass
fuel co-firing

Water Quality Conservation Measures(Consideration for Marine Environments)
Wastewater generated by our thermal power plants is purified
by wastewater treatment facilities in order to comply with the

FeaturedEndorsement of the GX League Basic Concept
Green transformation (GX) refers to thetransformation of the entire economic andsocial system to achieve emission
reductions and increase industrial
competitiveness by viewing initiatives toachieve greenhouse gas emission reduction targets as anopportunity for economic growth.
On February 1, 2022, the Ministry of Economy, Trade andIndustry of Japan (METI) announced the establishment of the
GX League as a forum for corporate groups actively engaged in
GX, together with government, academia, and financial
institutions, to discuss the transformation of the entire
economic and social system and work on the creation of newmarkets, as well as the GX League Basic Concept, which
describes the world view and initiatives it will pursue.
Based on our mission to provide cutting-edge solutions to
the world’s energy issues, we have announced the JERA Zero
CO2 Emissions 2050 initiative and are pursuing net zero CO2emissions from our operations both in Japan and abroad by
2050. We have endorsed the GX League Basic Concept as we
believe its intent is consistent with this initiative.
JERA will continue to take the lead in the decarbonization of
the energy industry by proactively developing decarbonization
technologies and by working with related institutions,organizations, and stakeholders to resolve various issues.

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Strategies

Value Creation
Infrastructure

Financial andCorporate Information

Environment

Initiatives Related to Resource Recycling

Control of Chemical Substances

We are actively engaged in recycling to makeWe observe the requirements of the Pollutant Release andassessments, we strive to conserve the surrounding

Transfer Register Act (PRTR) for chemical substances used atenvironment by implementing appropriate noise and vibration

thermal power plants and are working on strict control andcontrol measures, industrial waste control measures, andreduction of emissions based on internal rules.

landscape preservation measures, taking into consideration

effective use of limited resources. The main
waste we generate is coal ash from ourcoal-fired thermal power stations. We arepromoting the effective use of coal ash as a

Coal asheffective
utilization rate

99.99%

Based on the results of these environmental impact

the impact on the surrounding environment.

raw material for cement and land

Compliance with Environmental Legislation

development because of its excellent properties, which

We make efforts toward environmental conservation byPreserving Biodiversity

include fine grain, light weight, and increased strength. Our

conducting business based on environmental laws andWhen endangered plants and animals are identified in theeffective utilization rate of coal ash in FY2021 was 99.99%.

regulations as well as local ordinances and environmental

environmental impact assessment, we take steps to preserve

conservation agreements with municipalities. In FY2021, there

biodiversity, including efforts to maintain and restore habitats

April 2022. We are also actively promoting the reduction andwere no cases involving fines or sanctions for violations ofand ecosystems.

recycling of industrial waste associated with products that use

environmental laws and regulations.

The Plastic Resource Circulation Act went into effect in

The environmental impact assessment conducted whenreplacing the Yokosuka Thermal Power Plant (Units 1 and 2)

plastic generated by our business activities. The amount ofEnvironmental Impact Assessments andConsideration of Environments Surrounding
Power Plants

showed that the area was inhabited by falcons, which are

FY2021 were 362 tons and 98.56%, respectively.

State of Waste Treatment Facility Maintenance

When constructing or replacing power plants, we conduct

habitat, which included using low-noise, low-vibration

The Waste Management and Public Cleansing Act requires

assessments of the environmental impact on the surrounding

machinery during construction. We also installed nestingthat information on the status of the maintenance andenvironment both during construction and after the plant isboxes for falcons in the new stack to create an environment

management of waste treatment facilities be made public. We

operational in accordance with the Environmental Impact

conducive to nesting. We will continue our efforts toproperly maintain and manage the appropriate waste

Assessment Act. We then explain the results to the municipality

preserve the habitat by maintaining green areas intreatment facilities and provide online reports regarding facility

and community members and engage in dialogue with them.

consideration of the falcons’ hunting environment.

waste plastic discharged and the effective utilization rate indesignated as a rare endangered species in Japan.
Accordingly, we took measures to avoid affecting theirmaintenance (type and amount of waste disposed of, resultsof water quality measurements performed on discharged
water, facility inspection results, etc.). In FY2021, we began
reporting the status of Kinuura Landfill No. 1.

Primary Measures
MeasureDescription
Our noise and vibration control measures include

State of Waste Treatment Facility Maintenance (Japanese)
https://www.jera.co.jp/business/thermal-power/environment/waste/maintenance

Measures forchoosing the proper placement of buildings andNoise andequipment, adopting equipment for reducing noise andVibration Control vibration, and installing silencers and sound barriers.
Measures for
Industrial Waste
Control

We take steps to properly treat waste by creating
manuals tailored to the operations of individual thermal
power plants.

Measures forLandscapePreservation

We make efforts to ensure that power plants blend inwith local scenery while considering costs.
See also: “Coexisting with Local Communities” on p.65

Green space development at the Yokosuka Thermal Power Station

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Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Talent Development
Assembling the Ideal JERA Team

Talent Development Policy

Four Defining Characteristics

The JERA Group considers every employee an essential asset and conducts
talent development as described below.

Diversity

Excellence

Entrepreneurialism

Fairness

Employees strive for personal andorganizational growth by respecting diversity
at all levels of the organization, regardless ofdifferences in gender, nationality, ethnicity,
experience, or expertise.

Employees aim for personal
growth and seek to become
experts who consistently andenthusiastically incorporate
new skills and know-how.

Employees are keen torecognize change,
pursue new opportunities,
and innovate.

Employees hold themselves
accountable and engage inall initiatives from a positionof high ethical standards
and fairness.

Talent Development Objectives❶ To allow employees to grow and live their lives to the fullest❷ To enhance the JERA Group’s corporate value and to help us achieve our mission and vision
through employee growth

Fundamental Approach

Priority Initiatives for Our Team■ The JERA Group respects the diversity of its workforce and supports employees in all areas

Corporate Culture• Management training• Raising awareness• Diversity and inclusionof the organization to realize their professional aims.
• Helping employees improve their skills and develop a mindset for sustained success anddominance inside and outside Japan as well as contributing to social progress

Human Resources
Employees& Families• Infrastructure built to attract internal andexternal talent• Merit-based approach to remuneration/
evaluation/promotion

Career Development• Launch of independent career development
initiatives• Clear career paths and consultation opportunities• Enhanced elective, position-based, and selective
training• Introduction of internal recruitment system■ The JERA Group provides opportunities to take on challenges that help the company stayahead of the times.
• Helping employees learn how to adapt quickly in times of uncertainty• Striving to provide a work environment that allows employees to grow further and demonstrate
their abilities

Working styles/benefits• Remote work expansion• Satellite offices (Yokohama, Nagoya)• Full benefits, including vacation andallowances

Talent Development Plan

■ The JERA Group honors employees’ career goals and provides maximum support to help

them achieve them.
• Providing skills training and job rotation opportunities so employees can achieve their career goals
We actively support the growth of all JERA Group employees, including those working overseas.

Independent Career Development Overview

Training System

Based on the Talent Development Policy formulated in March 2020,

CareerCorporate Knowledge

Learning Culture

Respective Roles

Corporate Ethics

Ownership

Influence

Resourcefulness

Management Know-How

Fairness

Corporate Philosophy

Leadership

Imagination

their abilities fully and grow together with the company.

Career consultations

Creationprovide opportunities that allow all our employees to demonstrate

Career development
counselingConsideration

We are committed to continually evolving these structures toProfessional
Training

Beginnerdiversify their work.

Analysis

recruitment system that offers new challenges for those looking to

Crafting a careerdevelopment planthat helps align skills
with goals

Intermediate

Regular on-the-job
training and off-the-job
follow-up

Optimization

support for career-focused skill enhancement, and an open

InnovativenessO&M Engineering

their own career paths, training programs that provide multifaceted

Personal
development
through classes,
certification, etc.

Level

career development system that encourages employees to build

Internal
recruitment for
new job
opportunities

Corporate

employees to reach self-fulfillment and facilitates initiatives like a

Business Development

Upwardspirals

The JERA work environment is a supportive one that enables

Expertise

Regularreflection andconsultations

Advanced

professionalism training.

Re-evaluating
career goals
and plansManagement
SkillsOrganization and Human Leadership

growth, including independent career development andBusiness/System
Comprehension

Five Pillars of Growth

we have established a framework to strategically support employee

General Training

Professional training provides the necessary skills to succeed across all areas of the company,
along with cutting-edge solutions and sophisticated, specialized knowledge and skills.
General training offers a number of development opportunities, including position-based andelective training programs planned by the Human Resources Development General
Management Department.

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Infrastructure

Strategies

Financial andCorporate Information

Diversity & Inclusion
Overview of D&I Promotion Strategies

Major Commitments
Diversity and inclusion (D&I) is a central strategy in achieving our mission. JERA aims to be anorganization rich in diversity across gender, nationality, ethnicity, ability and disability, sexual
orientation and identity, experience, expertise, and beyond. We will achieve a fair and justworkplace where inclusion is realized by empowering diverse talent to share mutual respect,reach their full potential, contribute to the organization, and achieve personal growth.

At JERA, all employees share a path toward new value creation through respect for diversity andopen dialogue. We are developing various measures to foster an inclusive and just organizational
culture in which everyone receives opportunities and anticipates ways in which they can grow andcontribute to the company.
MeasuresOur vision for diversity and inclusion is summarized in these two core beliefs:• JERA must make every effort to help all employees and associates feel happy andmotivated to the benefit of themselves, their partners, families, and communities.
• Our vision and mission can only be achieved if our employees and associates are happy
and motivated.

Inclusive
Organization
Building

We are united in creating a new JERA capable of delivering unique solutions to the world inwhich we live.
Toshihiro Sano, Chair
Satoshi Onoda, President
In January 2022, officers in charge of each division disseminated the “D&I Declaration of
Conduct” to all employees in an effort to emphasize accountability, one of many D&I initiatives
we are working on toward realizing the above commitments.

D&I Promotion Strategies
Increasing the Proportion of Women in Leadership Positions
We are focusing on gender diversity as a significant opportunity to make an impact, given its
inherent potential to offer new viewpoints and ensure an equal approach to ideas. We intend toincrease the proportion of women in leadership positions by setting quotas and proactively

FemaleEmpowerment
Initiatives

D&I Month• Held companywide workshops and events in November 2021
• Offered four workshops on the themes of what D&I means for JERA, the balance between
career and childcare, and paternity leave, with a total of ≈ 950 people in attendance

D&I Award• Called on each organization to submit examples of D&I initiatives, after which employees
voted to select a grand prize winner

Men’s Leadership
D&I Acceleration
Program• Conducted a program encouraging men to drive change under the themes of equity andinclusive leadership. The program was conducted three times for ≈ 80 department heads andpower plant managers.

Career Development • Assigned mentors to help support women in management positions through efforts in areas
such as career development awareness, network-building, and opportunity recognition
Support to Increase• Offered career development training, including leadership training, exercises in work-life
the Proportion ofbalance for mothers, inter-industry exchange, and training to foster career development
Women in
Leadership Positions awareness
External
Network-Building &Collaboration• Participated in G20 EMPOWER (a private sector alliance that strives to increase the numberof women who play a vital role in corporate decision-making) and was featured in the Best
Practices Playbook 2021 and 2022, its compilation of best practices and policies from aroundthe world• Endorsed the Japan Business Federation’s Challenge to 30% in 2030
• President participated in the Male Leaders Coalition for Empowerment of Women

Promotion of Employment
Opportunities for Persons with
Disabilities• Expanded operations of special subsidiary JERA Miraiful and employment opportunities forpeople with disabilities• Reopened the newly renovated Yokohama Strawberry Park

Promotion of
LGBTQ+
understanding• Designated June 2022 as Pride Month and offered all employees an e-learning program todeepen their understanding of LGBTQ+ issues. ≈ 3,800 employees took part in the program.
• Sponsored Tokyo Rainbow Pride 2022 and supported employee participation in the event

JERA Pride Month• Supported employee resource groups (ERGs) to improve issues related to D&I
Employee
Employee Resource• Celebrated two new groups beginning activities in FY2022, one focusing on work-life balance
Resource Groups Groups
for parents and one serving as an LGBTQ+ ally

providing opportunities for female employees.
Diversity & Inclusion

Featurehttps://www.jera.co.jp/english/corporate/diversity/

JERA Miraiful Begins Operations

FY2025 Female Employee Ratio(FY2021 Female Employee Ratio: 8.4%)

15%

15%

Percentageof womenoccupyingleadership positions
More than

30%

5.0%
Managers Officers

Managers Officers

2021

2025

Medium tolong term

JERA Miraiful is a wholly-owned subsidiary established in April 2021 to create employment opportunities
that promote independence and social
participation among people with disabilities.
We began full-fledged operations alongside
new graduate hires in April 2022. We now
have 12 staff members with disabilities
working alongside other staff as one team
East Japan Center (Yokohama): East Japan Center (Nagoya):where they recognize each other’s individuality
Strawberry cultivation, custodial Flower cultivation, garden carework, and more at Yokohama
at power plants, and more
and value compassion.
Strawberry Park

*Officers defined by the Japan Companies Act

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Talent Development“DEI” is the Source of Solutions and Innovations
through policies and heightened attention to the task, we can never reap the rich rewards that

Miyuki Suzuki

thinking outside the box can bring.

Outside Director of JERA Co., Inc.
Raised in Australia, the UK, andItaly, she experienced cultural
diversity living and working in eight
countries across Europe, the Middle
East, North America, and theAsia-Pacific region. She is anentrepreneur with experience insales, marketing, and generalmanagement roles in the IT andaviation industries.

To nurture productive DEI, the company must provide a transparent, collaborative culture where
people feel safe to express their opinions and make suggestions, regardless of rank or hierarchy,
are treated with respect and are given the information and support they need to succeed. Equity
means fairness, offering employees equal access to programs, promotions, and opportunities sothey can develop their full potential. Diversity and its benefits cannot be reaped without inclusion,
which means people feel they can contribute meaningfully as part of a team with shared values
and goals.
Of course, reward and recognition are important. Individuals need to feel that their

The war for talent is becoming increasingly fierce, and having good people is the key to achieving

contributions are appreciated, that exceptional work will be appraised appropriately, and thatsuccess and differentiation. Attracting, growing, and retaining these people is one of the mostpromotions are based on merit, not tenure or seniority. Management should deploy aimportant roles of any company’s leadership, and creating a framework for doing so requires

transparent framework for job grading, structure, and remuneration, which can be compatible inalignment with the company’s strategic goals. JERA’s stated long-term mission is to provide

Japan and globally to encourage job rotations so that people have the chance to not only

innovative energy solutions to drive decarbonization and sustainable development in Asia and the

expand their skills, experience, and horizons but also gain access to work opportunities outside

world. That is the “why” of JERA’s existence, and so we first need to amplify this message to all

their home countries.

potential and existing staff to create a sense of an overarching purpose with which people canidentify. People increasingly seek more than just financial rewards from their workplace; they

There is also a great deal of focus today on ESG and SDGs. This means that a company that isneed to feel that they are contributing to a worthwhile cause that makes a positive difference tofulfilling its societal and moral obligations, whether in championing human rights or working to

the world around them while enriching their own career experience.

protect the environment, will naturally be more attractive to potential employees as well as
desirable investors, partners, and customers. We must do everything in our power to make sure

We live in times of global uncertainty and breathtaking change, all of which require a breakthroughwe are leaving a healthy, safe, and just world for future generations.

approach to business rather than one of “business as usual.” JERA faces numerous challenges
and problems, so it is imperative for our people collectively to be open-minded, embody andAs I said earlier, we live in unpredictable times. But by the same token, it is a time when change isembrace diversity, and have a global outlook. We often hear about the importance of DEI –characterized by multiple discontinuities—things being done in ways that would have been

Diversity, Equity, and Inclusion – which is particularly relevant right now. Countless studies have

deemed unthinkable a short while ago. Discontinuity calls for us to reimagine what is possible;

proven that the most creative solutions to problems and breakthrough innovation originate from

it is a powerful catalyst for innovation and generates new opportunities. By building an

diverse people working together, harnessing the power of their varied backgrounds, experiences,organization with people who can recognize and embrace discontinuities, JERA is committed toand viewpoints. Managing a diverse organization is never easy; hiring and working with people inconstructing a work environment for people to move forward and creating bold, breakthroughyour own image is so much easier. But without making the effort to build a diverse organization

solutions that can change the world.

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Infrastructure

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Diversity & Inclusion

Creating an Organization that Honors Individual Strengths
Fujiie Most employees at JERA have transferred fromJERA has a unique corporate culture comprising a mix of mid-career transfers fromshareholders and new graduate hires from various backgrounds. Here, Minako
Fujiie, Managing Executive Officer of Diversity & Inclusion, sits down with two
young employees to explore how JERA can become a better, stronger company.

shareholders, where the majority of employees are
Japanese men. As a result, non-Japanese and female
employees are in the minority. I would like to explore
what we need to do to ensure that all employees feel
respected and empowered, regardless of their majority or
minority status.

JERA Today: Internal and External
Perspectives
Fujiie Boldmaa, why did you first become interested inworking at JERA?
Boldmaa I was attracted by the scale of the business,but more than that, I was drawn to how JERA employees
strive to make a positive change in the company andsociety through energy. I chose to come to JERA because
I felt that it provided an environment where I could use myskills and experience to contribute to the company andgrow as a person.
Fujiie Has JERA met your expectations?
Boldmaa For the most part, it’s just as I imagined. But I

would say that some aspects of the organization do not

Minako Fujiie
Managing Executive Officer(Diversity and Inclusion)
Minako began her career at TEPCO in April
1988 and served as an auditor at JERA
until March 2022.

maximize each employee’s full potential. Perhaps
employees are still a bit reserved because of just how
diverse JERA has become in such a short time since its inception. Many people here havebackgrounds and expertise that JERA should be proud of, and I hope the culture can shift to one
where people feel free to express their opinions, regardless of age or position.
Fujiie Nakamura, what did you expect when transferring to JERA from a shareholder company?
Nakamura: Currently raising a
newborn baby

Fujiie: Mother of two (now adult)
childrenBoldmaa: C urrently raising a
5-year-old

Did you have any concerns?
Nakamura Well, JERA is a meritocracy, and I was a little worried about whether my skills would

measure up. But at the same time, I was also excited about the opportunity to take on a new job
in a company with such a fair and challenging outlook.
It’s been one year since I changed jobs here, and every day I am reminded of how the company

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Diversity & Inclusion

respects our individual opinions and encourages us to challenge ourselves. I’m still early in my career,
but I’m often able to bring my own opinions to my work, which has helped me build confidence.

Keishi Nakamura

Boldmaa
Jargalsaikhan

Fujiie You’re right. If we can foster a culture that respects individuality and encourages

employees to see challenges as opportunities, we can help each other continue to develop ourOverseas Offshore Wind
Power Business Group
Overseas Offshore Wind
Power Business Unit
Assistant Manager

skills. If we respect and leverage our diversity—in other words, when we promote inclusion—
each of us will grow, and organizational creativity will increase, leading to higher corporate value.

Diverse Talent, Diverse Work Styles

Boldmaa joined JERA in June2019 as she was busy raising a
2-year-old.

Fujiie JERA has introduced a new system that allows for more flexible ways of working, and weare focused on fostering a culture that recognizes diverse work styles. I want to ask what it’s likeO&M Engineering Division
Operation GroupOperation Management Unit
Keishi started his career at
TEPCO in April 2010 before
transferring to JERA in April 2021.
In 2021, he took one month ofpaternity leave to look after his
newborn baby and is currently
balancing work with childcare.

to work while raising children. Have you taken childcare leave? And what kind of support have you
received from those around you?

like family, hobbies, and study to feel refreshed when you come back to work. I believe that each

Boldmaa With my team, we each have our own strengths and are relatively independent, so I

individual should be able to demonstrate their individuality and personality out in the world and inrarely feel stressed. We also make sure to communicate and work closely with our supervisors

the office. I think JERA will grow naturally as the company embraces a more open and fair workand collaborators in case of sudden absences so that a project doesn’t get delayed. When we lookenvironment. I hope management feels the same way, and I look forward to seeing that kind ofout for each other, the entire team feels more productive.

atmosphere grow throughout the company.

Nakamura In our generation, both spouses tend to work and share household responsibilities. I

Nakamura I agree with Boldmaa. Having taken paternity leave myself, I’m now having people

personally took paternity leave when my first child was born. Even though paternity leave isn’t asfrom other parts of the company reach out to me for the first time to ask for help with thecommon in Japan, I wasn’t particularly worried because of the positive messaging we hear fromprocess. This kind of positive communication has increased, which has led to an acceptance ofthe president and the encouragement I received from my supervisors and colleagues. Working

paternity leave and new ways of working. If employees can learn from each other, inspire eachremotely now allows me and my wife to split the responsibilities of childcare.

other, and create new and diverse experiences both within the company and at home, I think

Fujiie Our corporate culture needs to recognize and foster diverse work styles. And when we

JERA will become a better, stronger organization.

combine that with robust systems and allow individuals like yourselves to figure out what works

Fujiiebest for them, we believe that everyone wins. And as more fathers take paternity leave, thewhy it is important to share how we want to live and listen to each individual voice in order toassumption that childcare and housework are a woman’s job will be replaced by an awarenessmake those changes happen. It energizes the entire organization when we leverage our diversethat both parents are responsible for childcare and housework. That shift will also promote female

perspectives, experiences, and abilities and allows each individual to feel the ways they can makeempowerment, an important initiative here at JERA.

a difference within the organization. JERA’s vision for promoting diversity and inclusion is

The COVID-19 pandemic has certainly made communication more difficult, but that issummarized into two core beliefs. First is the belief that the company must make every effort toTo Become a Stronger Company

help all employees and associates feel happy and motivated at JERA, to the benefit of

Fujiie Finally, I’d like to hear what you think JERA needs to do to become a better, stronger

themselves, their partners, families, and communities. And second is the belief that our vision andcompany.

mission can only be achieved by happy, motivated employees and associates. Today, you’ve

Boldmaa I feel like so many people at JERA have unique strengths and interesting personalities.

reminded me of the importance of promoting diversity and inclusion throughout the organization

In my department, we share daily goings-on as an icebreaker at the start of meetings. If theto realize our vision and guide JERA to become a better, stronger company. We will continue

whole company shared that open atmosphere, it would help us better understand each other andworking to establish a joyful, fulfilling environment for all employees. Thank you both for sharing

further promote diversity and inclusion. It is also important to have enough private time for things

your inspirational experiences.

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Communication with Employees
Fundamental Approach and Issue AwarenessMeasures

JERA was formed by two electric power companies withdifferent corporate cultures. To maximize the synergy of thismerger and achieve growth, it is of utmost importance for us

Coffee Breakwith the President

Description
This initiative helps flatten the organization and provides
an opportunity for open dialogue between the president
and employees.

to unite and integrate as “One Team,” and we are developing

The JERA overall employee satisfaction rate was 69%, 11
points higher than the average among companies surveyed by
the commissioned research firm and affirming a positive
position for the year. Issues highlighted by the survey are usedby top management to examine improvement measures andPost Anything: Management-Employee
Communicationas core data for formulating future company policies andinterchange and continue to work toward creating a moreinterdisciplinary and integrated organization.

We have set up an internal message board where employees

and enhanced corporate value.

various opportunities for intra-company dialogue andLack of internal communication is an important issue thatcan “Post Anything,” freely and anonymously voicing theircompanies must work to resolve, as it can lead to decreased

questions and concerns, suggestions for improvement,

employee motivation, increased stress, and lower productivity.

anxieties and worries, and positive feedback. The feedback is

The pandemic has meant that much of our work has moved

delivered to management and then shared with the entire

online. To stay connected with our employees, JERA has

company, including proposed responses to any concerns fromintroduced a new hybrid system that combines office andthe departments in charge. In FY2021, we received 75

remote work. As the ways we work continue to evolve, theysubmissions that resulted not just in responses but also

help inform a new work environment where employees will

tangible improvements to the way we do business.

feel motivated to do their best as “One Team.”
To that end, we have made internal communication a toppriority, and we plan to develop an array of internal exchange
programs as part of our commitment to becoming a moreinterdisciplinary and integrated organization.

Online Cafemanagement strategies toward more attractive workplaces

Featured
One JERA Party 2021: Connecting 337 Employees
from Around the Country
At the end of FY2021, we launched One JERA Party 2021, an
online get-together held on three separate occasions in February
2022. Employees from our headquarters, branch offices, andpower plants in Chubu, Kanto, and Tohoku participated remotelyfrom their computers. President Onoda gave a toast to kick off
the events, which were held to foster the sense of unity
threatened by the COVID pandemic. One JERA Party 2021
included activities that all employees could enjoy, including
guessing games and the chance to move around the virtual
space and get to know each other. A total of 337 employees
took advantage of this opportunity to develop stronger
connections with their colleagues.

With the shift to remote work, we now hold online events toinitiate employee communication, including coffee breaks with
President Onoda and our One JERA Party company-wide

This open office design encourages communication between management
and employeessocial mixers.
These opportunities have proven invaluable for discourse on

Employee Satisfaction Survey

diverse subjects, including communication problems andWe conduct an annual employee satisfaction survey to gain asolutions. They have also become a catalyst from which ideas

quantitative understanding of employee opinions about theirand innovations emerge.

work and job fulfillment.
The survey touches on three categories: work and its value,
working conditions and environment, and company loyalty. In
FY2021, the survey had a response rate of 94.4%.
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Value Creation
Infrastructure

Strategies

Financial andCorporate Information

JERA Work Design
Promoting JERA Work Design
We are designing new ways of working in pursuit ofof our employees and their families and promote growth that

Pursuing the Happiness of Employees andTheir Families

productivity and efficiency, meeting employee expectations,enhances JERA’s corporate value, all while fulfilling our

Because JERA has many offices in Japan and abroad, manyand securing excellent human resources. We aim to put

essential social duties as a utility provider.

employees are on assignment away from their families. For

Through these initiatives, we aim to ensure the happinessthat reason, starting in December 2021, we made full remote

together a plan for reform in both tangible and intangible ways.

Promoting Work-Life Balance

work available to employees who do not wish to work away

full potential, we will design different ways to work, balancing

As part of our efforts to promote work-life balance, wefrom their families. In addition, employees previously had toface-to-face and remote work in a hybrid manner. We call this

implemented a teleworking system in February 2020 to enabletake a leave of absence when accompanying their spouses on“JERA Work Design,” and it entails the following:

In order to allow our diverse team of talent to reach theirI

more flexible ways of working. Employees can choose to workoverseas assignments, but it is now possible to continue

System: Designing mechanisms to enable our diverse talent

remotely for any number of reasons. We have also establishedworking via full remote work if approved.*

to work flexibly

systems to support child-rearing, including “life support leave,”

II Workplace: Designing workplaces that support diverse ways

of working and help generate innovation
III Culture: Designing an open and transparent company

We pursue the happiness of our employees and their

which encourages men as well as women to participate infamilies by taking into consideration individual circumstances

raising children. We are initiating reforms so that all of ourand allowing employees to choose the style of work that best

diverse talent can play an active role.

suits them.

culture that recognizes diverse ways of working* Certain conditions must be met for approval.

Featured

Measures to Achieve the Three Themes of JERA Work Design

Promoting Paternity Leave

1

2

3

Designing mechanisms to enable ourdiverse talent to work flexibly

Designing workplaces that support
diverse ways of working and help
generate innovation

Designing an open corporate
culture that allows for diverse ways
of working

Establishment of satellite offices• Reduce the burden of long-distancecommuting and temporary assignments awayfrom family through use of satellite offices(currently in place in Nagoya and Yokohama)D&I advocacy• Plan and implement online events in which
employees can easily participate• Foster an inclusive and open corporate culture
through group work and the exchange of
opinions

Versatile hybrid work options• Ease the requirements for remote work torealize more flexible ways of working
Remote work process standardization• Realize efficient business operations andappropriate labor management through means
such as standardizing business processes,
promoting visualization, and creating online
meeting guidelines
Skill improvement system for employees
through remote capabilities• Improve the online training system to support
employees’ independent career development

Creation of workplaces premised on remotework• Promote the use of unassigned desks inoffices and other efficient office space
utilization• Facilitate interaction and create innovation
through layout changes and other efforts

Management support for the promotion ofdiverse ways of working• Provide manager training on remote workbusiness management• Utilize digital communication tools

We have fostered a culture that recognizes diverse ways ofworking, and an increasing number of male employees are
utilizing the childcare leave system.
• We shared a handbook on how to be a family-friendly bosswith all employees, which includes a message from the
President, details on the paternity leave system, and specificexamples of supervisor actions.
• We use the company newsletter to publish interviews with
employees who have taken
childcare leave and theirsupervisors.
Paternity Leave Utilization

FY2021
12 men took an average of 5months leave
FY2022 (as of August)
22 men took an average of 1 month
leave

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Strategies

Value Creation
Infrastructure

Financial andCorporate Information

Human Rights
Fundamental Approach and Issue Awarenessand shared with JERA Group companies. We will continue

The JERA Group bears an important responsibility of highsharing information on human rights activities in regular liaison

public interest in supporting society and the economy—

meetings with our group companies.

providing a stable supply of energy. As a company with a
global value chain spanning upstream development to

Human Rights Education and Training

transportation, storage, power generation, and sales, we strive

In August 2022, JERA conducted its first internal human rights

to maintain and expand a stable supply chain at a time whentraining for all employees on topics including business andhuman rights issues such as harassment, discrimination, andhuman rights risks, as well as harassment prevention. The

poor working conditions become increasingly urgent. We

training used case studies to introduce human rights issues that

Grievance
Mechanism

ReliefMeasures

Grievance
Mechanism

Communication

Commitment
to HumanRightsBusinessand Human
RightsFramework

Monitoring

Commitment to
Human Rights

Reflection on
Organizational
Processes
Human Rights
ImpactAssessment

ImpactPrevention
andReduction

recognize the importance of promoting human rights efforts

could impact corporate activities, key points to preventing

for us to meet our responsibilities of stable maintenance andharassment, and considerations for the LGBTQ+ community.

expansion of a value chain that supports Japan’s energy andFollowing the training, participants were also tested on theirhelps solve the world’s energy issues. We also believe thatcomprehension to raise and reinforce human rights awareness.

employees can only reach their full potential in a comfortable

In addition to this human rights training, we will conduct

work environment free from discrimination and harassment.

regular education and awareness activities, such as seminars

Relief Mechanisms for Human Rights andOther Issues

The JERA Group is committed to acting with integrity andthat align with Japan’s Human Rights Week.

In FY2021, JERA established its Internal Rules for Harassment

Human Rights
Due Diligence

Prevention to maintain a healthy work environment for its

respect for human rights based on the highest ethical

Promotion of Human Rights Due Diligence andthe Establishment and Operation of a Human
Rights System

employees. Our employment regulations prohibit any

As we expand our business globally, we aim to establish a

disciplinary measures that include dismissal. The Internal Rules

JERA Group Human Rights Policy and System

human rights due diligence (DD) mechanism that respects thefor Harassment Prevention are designed to delineate specific

In April 2022, we established the “JERA Group Human Rights

rights of our supply chain and beyond. This mechanism is based

examples of inappropriate behavior and clearly stipulate the

Policy” to serve as the cornerstone for achieving our philosophy.

on the UN Guiding Principles on Business and Human Rights,

responses and other actions available in these cases.

This policy was founded in accordance with international

the OECD Due Diligence Guidance for Responsible BusinessIn accordance with these internal rules, consultation

standards and social codes regarding human rights, such as the

Conduct, and Japan’s National Action Plan on Business andservices have been established internally at our Labor Affairs

Universal Declaration of Human Rights and Guiding Principles

Human Rights. In FY2021, through the advice and cooperationand Human Resources Group and externally at partner legal

on Business and Human Rights, and applies to all directors andof outside experts, we identified and segmented those issues

offices to address harassment and other inappropriate

employees of the JERA Group. We make continuous efforts so

considered to have a significant negative impact according tobehavior infringing on human rights. The Labor Affairs andas not to be complicit in any human rights violations bypast human rights incidents and reports issued by government

Human Resources Group responds accordingly in cooperationconsidering the potential impacts that our activities may have on

agencies and human rights NGOs. We looked at efforts

with the relevant workplace parties and, if necessary, consults

stakeholders, including our customers and communities.

implemented to address these issues, measured our progresswith outside legal counsel.

Accordingly, we are in the process of building an internal systemand planned our direction based on the results of these efforts,

standards to fulfill our mission as a global company.
JERA Group Human Rights Policy
https://www.jera.co.jp/english/corporate/compliance/human-rights-policy

to identify, prevent, mitigate, monitor, and correct any mattersand kept management informed via our internal Risk

regarding human rights that require special attention. This policy

Management Committee and the Board of Directors.

inappropriate behavior that infringes on human rights, such as
sexual harassment and power abuse, and provide for

From FY2022, our consultation desks will expand and beopen to JERA Group companies and business partners.

has been made public on our website, disseminated internally,
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Infrastructure

Strategies

Financial andCorporate Information

Coexisting with Local Communities
In addition to global issues such as climate change,(Established July 2021)

countries and regions face increasingly severe endemic

Social Contribution Activity Policy

problems such as poverty, inequality, limited resources,and demographic changes. Our operations have a broadinternational reach, and we recognize the importance ofleading the way to find solutions to these issues incooperation with each region and community.
As a company focused on working responsibly with local
communities, we formulated a Social Contribution Activity[Basic Policy]
The JERA Group aims to engage proactively in social contribution activities, build strong relationships of trust with regional
communities and other stakeholders, and achieve sustainable development with local communities as it conducts business globally.
Our social contribution activities respect the cultures, customs, nature, history, and other characteristics of individual countries andregions. At the same time, we will contribute to society and community development through activities that leverage the strengthsof the entire JERA Group.

Policy last year to contribute to realizing a sustainable society.
Speciﬁcally, we have positioned “coexisting with theenvironment,” “educating the next generation,” and “resolving
community issues” as our areas of focus within social
contribution and are committed to ensuring accountability bycommunicating and working closely with local communities.
As we move forward, we will continue leveraging ourstrengths to address and resolve the problems faced bypeople in every region. We will also strengthen our
relationships with stakeholders and strive to create a virtuous
cycle that builds social trust and enhances our corporate value.

Purpose of Activities
The purpose of our social contribution is the creation of a continuous virtuous cycle in which trust between JERA and our stakeholders
contributes to the realization of a sustainable society, which in turn enhances corporate value.

Areas of Focus
Aiming to realize a sustainable society, we will engage in activities prioritizing the following three areas: “coexisting with theenvironment,” “educating the next generation,” and “resolving community issues.”
1

Coexisting with the Environment

We will contribute to better conservation of the global environment by working to reduce the environmental burden of our businessactivities together with measures such as promoting greening and environmental protection.
2

Educating the Next Generation

We will pass on the skills and expertise gained through business operations to the next generation and contribute to the education ofindividuals who can lead the future of energy globally.
3

Resolving Community Issues

We will help resolve the many issues facing countries and regions where we do business, including increasing disaster preparedness,creating jobs, and reducing the number of communities without electricity.

Support for Employee Social Contribution
We will provide our employees with opportunities for social participation and support employees’ voluntary social contribution activities.

Collaboration with Stakeholders
We will communicate with stakeholders as we work to address various social issues.

Information Disclosure

Hiroshi Oyabu

We will proactively disseminate information about our Social Contribution Activity Policy and associated efforts via our website and reports.

Senior Managing Executive Officer
Business Support & Solutions and Secretariat

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Value Creation
Infrastructure

Financial andCorporate Information

Coexisting with Local Communities

Coexisting with the Environment

Support for SAKURA Tempesta, a Robotics Team for JuniorResolving Community Issues

Environmental Conservation and Landscape Preservation

High and High School Students

Assistance to Prevent the Spread of COVID-19

Measures at Thermal Power Plants

SAKURA Tempesta is one of the most notable robotics teams

In response to the global COVID-19 pandemic, we have

The thermal power plants we own throughout Japanin Japan. In the 2018 FIRST Robotics Competition—the world’s

supported measures to prevent the infection and spread of

implement measures to preserve the landscape inmost prominent international robotics competition—SAKURA

the virus in Asia. In FY2020, we provided free medical

consideration of the impact of operations on the surrounding

Tempesta received the Rookie Inspiration Award, given to a

supplies to Bangladesh, including emergency vehicles,

environment. Landscape simulations help us select the shapes

rookie team with outstanding success in advancing respect

respirators, and personal protective equipment such as

and colors for our plants’ chimneys. In addition, to achieve

and appreciation for engineering and engineers.

protective clothing and masks.

balance with nature, we also proactively plant trees at power

As a sponsor of SAKURA Tempesta, JERA is working withplant sites, many of which have become forests home to many

the team on community contribution activities and workshops

Hai Phong City, Vietnam, in response to a rapid increase inrare insects and other species.

to promote STEAM* education for young people.

new cases there.

* STEAM fields: Science, technology, engineering, art and architecture, and mathematics

Note: In August 2020, JERA and ExxonMobil concluded a Memorandum ofUnderstanding for the development of an integrated LNG-to-power project in Hai
Phong City, and in October 2020, ExxonMobil and Hai Phong City concluded aMemorandum of Understanding concerning the development of the project in the city.

Cleanup and Environmental Beautification Activities
JERA’s thermal power plants and other places of business

In FY2021, we donated to the COVID-19 prevention fund inwork with affiliates and local governments to conduct cleanup
and environmental beautification activities in the surrounding

Overseas/Affiliate Initiatives and Contributions to SDGs

communities. Despite restrictions during the COVID-19

We invested in TeaM Energy Corporation, an affiliate in the

pandemic, 757 employees participated in environmental

Philippines, which is working to solve social issues in thatbeautification activities in FY2021.

country (JERA and Marubeni each have a 50% stake).

In addition, just as the year prior, we conducted beachSpecifically, through TeaM Energy Foundation, Inc., a non-profit

cleanup activities in Akita Prefecture in cooperation with local

corporation, we have sought to alleviate poverty, protect theresidents and the players and staff of the Aranmare women’senvironment, and provide support for education and medicalbasketball team—in which JERA holds an equity stake.

care by providing electricity to areas and homes previously
without power as part of various multi-year initiatives.

Educating the Next Generation

Continuing Our Scholarship Program

Power Plant Tours

In December 2020, JERA established the JERA Asia

Even amid the COVID-19 pandemic, we made sure that

Scholarship program for international students from Asian

Public Relations and JERA’s Denryoku-Kan (Museum ofElectricity) (Japanese)

visitors were still able to tour our plants online. A total of 1,486

countries to study at Japanese universities and graduate

https://www.jera.co.jp/corporate/pr

attended online tours of the Hirono Thermal Power Station andschools to contribute to the education of the next generation

Power Plant Tour Information (Japanese)

Kawasaki Thermal Power Station. Designed to make learning

who will lead economic growth in Asia.

enjoyable for both parents and children, these virtual tours

https://www.jera.co.jp/node/17

In FY2020 and continuing in FY2021, we provided

cover a range of content, from lessons on electricity used inscholarships to students from various Asian countries studying

daily life to experiments and quizzes. The virtual tours were aat the International University of Japan, which has engaged in

hit with parents and children alike.

the education of global talent for many years.
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Value Creation
Infrastructure

Financial andCorporate Information

Safety and Health
Safety: The Highest Priority in Everything We Do

business activities based on the premise of “Safety First” in

Our mission is to provide cutting-edge solutions to the world’s

the entirety of our supply chains, from upstream fuelenergy issues. As power generation and fuel facilities operate

procurement to electricity sales. We are also committed tounder high-pressure conditions using complex machinery, it ispursuing further safety measures to ensure peace of mind foressential to eliminate life-threatening risks, ensure the safety

everyone in society.

of all involved personnel, and provide stable energy during
operation and maintenance periods.
To this end, at the close of FY2020, we formulated a safetyphilosophy and safety policies to ensure that we pursue

Target number ofoccupational fatalities:

0

cases

Our officers and employees are working together to build aculture of safety. We are developing various measures toachieve our goal of zero accidents so that all those involved inour businesses can return home healthy and injury free.

[Safety Philosophy][Safety Policies]

Safety is the foundation of our business and thesource of our corporate value. We give the highest
priority to safety in all our business activities.

1. Create a safe and comfortable work environment
2. Observe safe and appropriate operating procedures
and rules
3. Design, operate, and maintain facilities with safetyin mind

Fostering a Culture of Safety

New Initiatives for Achieving Zero Accidents

Major Safety Initiatives in FY2022

To ensure that safety is the top priority in our business

Guided by our annual safety plans, JERA is expanding

Priority Action Items

activities, we aim to realize a work culture in which all

workplace-wide safety activities to achieve our target of zero

personnel at our job sites share our safety philosophy and call

accidents. Power generation and fuel facilities contain manyon one another to work together toward creating safe

pieces of machinery and equipment. It is critical to understandworkplaces.

the potential dangers of each and take appropriate safety

To foster such a culture of safety, we are expanding
activities in which officers visit power plants, construction

measures during patrols, facility maintenance, and otheron-site work.

sites, and other workplaces to directly explain our approach to

In recent years, we have seen more and more partner

safety. We have also established a safety enhancement period

company employees with little experience working at our job

when we conduct various safety awareness initiatives andsites. We have been conducting risk simulation training

hold commendation ceremonies for the safety efforts

utilizing VR technology for these employees to increase theirundertaken by employees and subcontractors working at oursensitivity to danger while promptly sharing safety information

job sites.

to prevent the repeated occurrence of similar incidents.

Major Initiatives

Leadership:
Clarification of our safety
activity strategies andfacilitation of safety
awareness among all
employees• Developed safety activity strategies aimed atcreating a culture of safety based on mutualawareness building• Formed safety committees and held workshops tofoster safety awareness• Facilitated safety awareness among all employees
through safety-related events

Organizational Structure:
Establishment of a robust
system for safety activities• Constructed a structure for promoting safety
activities involving overseas group companies• Strengthened cooperation with stakeholders

Business Operations:
Implementation of policies
for the creation of safe
workplaces• Enhanced and utilized information regarding safety• Carried out effective safety activities for accidentfree, safe workplaces

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Value Creation
Infrastructure

Financial andCorporate Information

Safety and Health

Promoting Health Management

the Act on the Prevention of Disaster in Petroleum Industrial

Health and Safety Management Structure

Complexes and Other Petroleum Facilities, and the High

Based on the recognition that health and safety are thefoundation of our business operations, we have established ahealth and safety management system supervised by thepresident to promote health and safety as one of our mostAppointment

Appointment

health of employees.

substantial efforts to prevent the spread of COVID-19. Going

Reporting,coordination

Safety Managers

Appointment

Safety and HealthCommittee

WorkplaceManagers

Medical examinations,health and safety education

Circulation of
Guidance,
meeting
recommendations,
minutes
adviceInstruction,
development
HealthManagement Office(Occupational
Physicians)
Diseasemanagement, otheractivities

forward, we will continue to promote work-life balance andInstruction

establish various measures for the prevention, early detection,and early treatment of diseases to create an environment inwhich employees can take on challenges in good health andwith a sense of security.
Main Achievements of Health and Safety Activities in FY2021

Earthquake Countermeasures

Reporting,coordination

Health and Safety
Promoters

promote initiatives aimed at maintaining and improving themental health problems and lifestyle diseases, we madeas petrochemical complexes, JERA is taking measuresappropriate to the size of the plant.

Health Managers

safety are established at each business site and led by the

In FY2021, in addition to measures aimed at curtailingpower plants located in special disaster prevention zones such

Chief Executive Officer
of Health and Safety
Supervision

important management issues. Action plans for health andresponsible department at each site as part of our efforts to

Pressure Gas Safety Act of Japan. In particular, for thermal

Company

Reporting,coordination

Employees*S ome workplaces with under 50 employees do not have a Safety and Health Committee.

When constructing thermal power plants, we design them tobe earthquake resistant in accordance with the BuildingStandards Act of Japan, the Fire Service Act of Japan, andother relevant regulations, as well as with the Rules of Quality
Assurance for the Safety of Thermal Power Plants (Japan
Electric Association Code, JEAC). We confirm seismic
resistance through periodic facility inspections after
construction. We also implement individual measures in lightof facility damage caused by past earthquakes.

Safe and Stable Operations

Additionally, we evaluate the seismic resistance of essential

We expend every effort to ensure the safe and stablefacilities at each power plant and implement measures such as

operations of our thermal power plants by monitoring them 24

seismic reinforcement to avoid long-term shutdowns due tohours a day from a central control room. We perform dailycollapse or earthquake damage and stay abreast of the latest

inspections to swiftly discover any abnormalities, conducting

developments in safety.

Compliance withlaws and regulations
on health and safety• Implemented a variety of medical examinations• Conducted stress checks (Achieved below the national
average for overall health risk)

Mental healthmeasures• Implemented mental health care training for managers andconducted occupational health interviews with physicians
and clinical psychologists• Implemented workplace improvement activities based on
the results of stress checks

piece of equipment to ensure that we catch even the slightest

Safety Measures for LNG Receiving Terminals

variations in temperature, vibrations, abnormal noises, etc.

At our LNG receiving terminals, in preparation for the unlikely

We also conduct regular inspections, including operator

event of an LNG leakage, we implement safety measures based• Strengthened recommendations for reexamination ofindividuals determined to require treatment or moredetailed examinations in their health checks

inspections as required by the Electricity Business Act of Japanon the following three concepts: (1) leakage prevention, (2) early

and our own routine inspections, to ensure that our facilities

leakage detection, and (3) prevention of leakage expansion. We

operate safely. Together with our affiliates, we have systems inalso make considerations for the handling of fire. For example,

place to ensure the quickest possible restoration of operations

we adopted explosion-proof structures for electrical equipmentin the unlikely event that a problem occurs during operation.

surrounding LNG facilities and restricted the use of products

Lifestyle disease
prevention
measures
Measures to prevent
health problems
caused by overwork• Implemented interviews with occupational physicians forindividuals working long hours

Measures to preventthe spread of
COVID-19• Conducted workplace vaccinations• Introduced antigen testing kits

Increased the rate ofhealth checkups forstaff stationed
overseas• Established a work environment that enables staff
stationed overseas to receive medical examinations evenwhen COVID-19 pandemic-related movement restrictions
are in place, such as border entry and exit restrictions

rigorous visual inspections of our facilities and checking eachthat may cause fire by designating control zones.

Safety Measures for Equipment

We have a proven track record of safety over more than 50

Our thermal power plants handle many dangerous substances,

years since the introduction of LNG and are committed towhich we handle appropriately in accordance with relevant

making every effort to keep enhancing our safety measureslaws and regulations, such as the Fire Service Act of Japan,

and ensure safe operations.
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Strategies

Financial andCorporate Information

Stakeholder Engagement
Main
Stakeholders

Demands & Expectations

Initiatives• Stable energy supply•C ustomer experience satisfaction•D ecarbonization and renewableenergy adoption and expansion•P romotion of ESG initiatives

We deliver a stable energy supply to customers worldwide bybuilding infrastructure undeterred by geopolitical factors andclimate changes that can upset the supply-demand balance,
leveraging cutting-edge value chain solutions spanning fuelprocurement, power generation, and electric and gas sales. Ourservices promote a transition to a decarbonized energy model
based on ESG-conscious business operations in order to meetcustomer expectations and earn their trust.

• Improved sales
performance•E nhanced website• Environmentally and socially
responsible procurement andoutsourcing•F air and equitable trade tronger collaboration•S

We promote environmentally and socially responsible
procurement and partnership practices, which help us fulfill our
corporate social responsibility and engage in fair, equitable tradewith suppliers.
Mutual understanding and close communication are thecornerstones of growth and development with our suppliers
and partners.

•C ontract compliancereview•P rocurement policy
briefings•D omestic and international
business collaborations• Environmentally responsible
business operations•R espect for human rights in local
communities•L ocal economic contribution•L ocal job creation and skills
development

We build strong bonds of trust through active dialogue with local
stakeholders to achieve sustainable development alongsidecommunities in Japan and abroad, including those that host ourpower plants.
We are committed to the development of society through social
contributions tailored to local communities and businessactivities that respect the nature, history, culture, and customs ofeach country and region in which we conduct business.

 articipation in local•P
community events•S cholarship programs andpower plant tours• Assistance to prevent the
spread of COVID-19• Enhanced corporate value•E nhanced earning power

We are further augmenting company reporting and seek toexpand and deepen understanding through dialogue with capital
market participants, including shareholders, institutional investors,
rating agencies, securities firms, and ESG evaluation providers,to match expectations through enhanced corporate value.

•S hareholders meetings• IR briefings•O ne-on-One and group IR
meetings• Issuing of reports• Recruitment and training of astrategic global workforce ofprofessionals•W orkplace and employee healthand safety•E mpowerment of diverse talent•P romotion of work-life balance•E limination of discrimination andharassment•M ore effective reporting systems

Human rights are at the heart of our efforts. We ensure thehealth and safety of our employees and create a safe andcomfortable working environment.
We continue to maximize opportunities for our diverse talent tochoose career paths and work styles that allow them to reach
their full potential while actively promoting measures to hire a
global and career-focused workforce that empowers women,
individuals with disabilities, and beyond.

• Inclusive corporate culture• Independent careerdevelopment support•P romotion of work styles
that meet ever-changing
needs•O nline recruitment via our
website•E mployee satisfaction
surveyCustomers

Business
Partners

Fundamental Approach

Local
Communities

At JERA, we are committed to proactive communication with
our stakeholders, who include customers, business partners,
local communities, shareholders, and investors, among others.
This allows us to better understand their needs andOutcomes

expectations to fulfill our corporate social responsibility and toact in good faith on their behalf.
Healthy two-way communication with our stakeholders will

Shareholders& Investors

continue to inform and improve our operations and services
going forward. Furthermore, our efforts to disclose bothfinancial and non-financial information in a timely, appropriatemanner lead to proper assessment by our stakeholders in
addition to helping us achieve sustainable growth andmaximize our corporate value.

Employees

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Corporate GovernanceFundamental Approach

Corporate Governance Structure

Our fundamental corporate governance philosophy is to maintain a strong and soundShareholders

General Meeting of Shareholders

management and financial structure trusted by the international energy market while ensuring anautonomous and independent corporate culture and a management system that allows us to

Statutory Auditor Panelmake fair and prompt decisions.

Corporate auditors: 3
Coordinate

working to strengthen and enhance it.

Accounting Auditor

Board of Directors
Directors: 10

Financial
Audit
Supervise

Directors’ Discussion
Nomination andCompensation
Committee

term, a company must implement corporate governance so as to support accurate decisionmaking by management. The environment surrounding our company is changing rapidly amid theInternal Audit
Department

To achieve sustainable corporate growth and improve corporate value over the medium to long

Business Management Division
Domestic Business Management &Development Division
Renewable Energy & Overseas
Power Development Division
Resource Procurement & Investment
Division
Optimization Division

Executive System

Issue Awareness

Planning Division
Human Resources Division

Audit
ReportToward this end, we established our Corporate Governance Guidelines in October 2019 forbuilding and implementing an appropriate corporate governance system and are continuously(As of July 1, 2022)

Energy Solutions Division

Leadership Panel

Chair and President

LNG Contract Management Division
O&M Engineering Division
East Japan BranchExpert Committees(e.g., Investment Valuation Committee)

West Japan Branchemergence of global trends toward energy security and decarbonization. As this happens, we are
expected to work on various governance issues with a sense of urgency through such means as

Governance Systemfacilitating a better functioning Board of Directors, empowering diverse talent, and enhancing

In order to expand business throughout the world in a wide range of fields, the Board of Directors—

initiatives to address issues related to sustainability.

consisting of directors from JERA who are intimately familiar with our business and outside

We will strive to continuously enhance governance to earn the trust of our shareholders,

directors who have extensive knowledge and experience—make material business decisions andinvestors, and other stakeholders.

supervise the execution of business operations. Further, JERA has corporate auditors as
independent officers who are responsible for auditing the execution of the Directors’ duties.

Corporate Governance Guidelines
https://www.jera.co.jp/english/corporate/corporate_governance/

In addition, JERA has adopted a system in which executive officers are responsible for* These guidelines set out a basic approach and system for our corporate governance and serve as a code of conduct for our officers inpursuit of sustainable growth and enhancement of corporate value.

business execution based on the decisions made by the board. This separates the decision-

Overview of Corporate Governancedecision-making and efficient business execution.

Organizational design: Company with corporate auditors

10 Corporate auditors: 3

Directors:(As of August 31, 2022)

Outsidedirectors:

5

Term of office: 1 year

(As of August 31, 2022)

Outsidecorporate
auditors:

3

Term of office: 4 years

Board of Directors meetings:(FY2021)

26

Statutory Auditor
Panel meetings:(FY2021)

Attendance

Attendance

AttendanceDirectors:

Corporate
auditors:

Corporate
auditors:

97%

99%

100%

20

making and supervision of management from business execution and produces accurate, prompt

Roles, Responsibilities, and Diversity of the Board of Directors
The Board of Directors makes decisions on management targets, business strategies, and otherimportant management matters based on applicable laws and regulations, our Articles ofIncorporation, and our internal rules. It also supervises the execution of business operations.
In addition, we believe that in order to expand our business throughout the world in a wide
range of fields, we will have to respond quickly and appropriately to the business environment andensure the objectivity and soundness of our decisions. As such, in addition to directors who work
for JERA or started as shareholders, we hire directors who are neither to ensure diversity ofknowledge, experience, and other attributes among the board.
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Value Creation

Strategies

Value Creation
Infrastructure

Financial andCorporate Information

Corporate GovernanceSupport for Directors

ongoing COVID-19 pandemic, our assessment is that further enhancement is necessary.

We have established a system that provides directors with the support they need to perform the

Future issues

duties expected of them. Among other benefits, the system provides each director withIn FY2022, we will enhance discussions at meetings of the Board of Directors by sharing ancomprehensive, accurate information, as well as opportunities to learn more about our company’s

overview of deliberations at the Leadership Panel. At the same time, we will work to improve thecore businesses from outside experts around the world.

effectiveness of the Board of Directors by resuming in-person meetings and carrying out power

In FY2021, outside experts were consulted on ESG, DX, trading, technical strategy, and otherplant tours and other such efforts while taking precautions against COVID-19.

areas requiring a high level of expertise to obtain advice based on their knowledge and experience.
This, along with other efforts, brought progressiveness and depth to discussions of the Board of

Leadership Panel and Expert Committees

Directors and provided us with knowledge that will contribute to further business development.

JERA has established a Leadership Panel that consists of the chair, the president, and officers inFurthermore, we covered a wide range of topics during several discussions of key
management issues such as decarbonization strategies, global human resource strategies,
financial strategies, and regional strategies on our journey to establish a new vision andenvironmental targets in FY2021.

charge as a forum for deliberating on and deciding important management matters and receiving
necessary reports based on the policies set by the Board of Directors.
Moreover, expert committees have been established as subsidiary bodies to the Leadership
Panel—in principle, one for each major field under its purview—to provide advice to the
Leadership Panel from an expert perspective and support its deliberations. In principle, all matters

Evaluating Board Effectivenessto be proposed and reported to the Board of Directors are discussed and decided by the

In order to tie our efforts into continuous improvement of the effectiveness of the Board of

Leadership Panel based on advice from the relevant expert committees. The results of

Directors, we conduct an annual survey among all directors and corporate auditors, asking themdeliberations by the Leadership Panel are reported to the Board of Directors, along with advice

to consider the state of deliberations and operations of the Board of Directors. The Board offrom the expert committees.

Directors analyzes and evaluates the results of these surveys, considers and implements
measures to address the issues identified, and constantly strives to improve the effective

Strengthening of JERA Group Governancefunctioning of the Board of Directors.

JERA provides appropriate support to group companies so that they can autonomously develop
and operate systems suitable to their business. Specifically, we strive to ensure that group

Improving Board of Directors’ operations

companies can make efficient decisions and execute their duties swiftly and appropriately by

In FY2021, we reviewed the standards for proposals and reporting at the Board of Directors andclarifying responsibilities and authority within our Affiliate Management Regulations and other

implemented measures that included coming up with a new structure for the materials (i.e.,internal rules. In accordance with the Affiliate Management Regulations, JERA has established acreating guidelines) from a strategic perspective. At the same time, we discussed and reviewed

system for prior consultation and reporting from group companies on important mattersregular reports on major changes in the business environment and how they impacted

concerning the execution of duties.

management and our ability to respond more effectively.

In FY2021, in order to establish a more advanced internal control system for the entire group,

Enhancing opportunities for outside directors to learn about operations

we worked to support the development of a system of rules and regulations for group companies

We provide explanations of the agenda for board meetings in advance and share information on

and strengthen the group company management system.

institutional and market trends and news reports related to the energy industry so that outside

In FY2022, we are continuing to strengthen group governance by checking the status of those

directors can actively participate in discussions and enhance deliberations.

operations and other such efforts. We also carry out regular education and training for newly

Self-assessment

appointed officers and candidates, including those of group companies, to deepen their

Although we saw some positive results in the enhancement of strategic discussions, support forunderstanding of our vision for governance and the roles and responsibilities expected of directors

advance briefings and other information delivery, and the management of meetings amid theand corporate auditors.

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Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Corporate Governance

The Strong Board of Directors Behind JERA’s Autonomous Management System
acumen and the financial scale needed to find the best energy solutions to the economic,

David Crane

environmental and geopolitical challenges we face in these volatile times.

Outside Director, JERA Co., Inc.
He began his career as an attorney atWhite & Case law firm and has
managed several energy companies.
He joined JERA as a member of theBoard of Directors in April 2020.
In August 2022, he was nominatedby the President of the United States
as Under Secretary for Infrastructure,
U.S. Department of Energy.

Lively Discussions at the “Directors’ Discussions”
The JERA Board works hard to do its part. We meet frequently, in formal session, to perform thenormal oversight and administrative roles associated with good corporate governance. Since theenergy industry is a very capital intensive industry, we are regularly called upon to review andconsider for approval proposals put forth by JERA management with respect to the raising anddeployment of capital. These investment decisions often relate to new energy projects or potential
acquisitions of strategic businesses as the Company moves aggressively to diversify itself
geographically and expand its technological experience and know how. But we also make time,
on a regular basis, for “Directors’ Discussions,” during which we have longer, more informal

Both Shareholder Companies Respect JERA's Autonomous Management

discussions about the long term strategic issues and opportunities facing JERA. It is during these

JERA is a privately owned joint venture owned in equal parts by TEPCO Fuel & Power., Inc. andsessions where, I feel, we have had a more lasting impact on the direction of the Company,

Chubu Electric Power Co., Inc. The two partners could elect to run JERA directly, without any

whether it was the decision in 2020 to become one of the first Japanese energy companies tooutside influence whatsoever. However, they chose to arrange for JERA to be governed by amake a long term net zero CO2 commitment or whether it has been our input into shaping theBoard of Directors, constituted of international and Japanese members each of whom has

Asian and North American regional strategies so that they fit seamlessly into JERA’s approach to

decades of experience and expertise in the energy field.

the fast evolving Japanese energy market.

This willingness to submit itself voluntarily to a Board made up of an appropriate mix of highly
engaged inside and independent directors makes JERA quite special from a corporate governance

The Best is Yet to Comeperspective.

I have been involved with JERA, in one capacity or another, almost since its inception and it has

JERA is an important company – an impactful company – not just in Japan but internationally. It

been extraordinarily rewarding to me personally to have been a witness to what JERA already has

is certainly the largest LNG and power generation company in Japan and one of the largest, if notaccomplished. In a very short period, JERA has established its internal culture and found its

the largest, in the world. And energy is a business where being large scale matters, particularly

identity as a truly 21st century enlightened energy company, separate and distinct from its two

now as the world population approaches 8 billion people and we, collectively, have to find a way toillustrious shareholders. I had been excited to continue on the JERA journey as an independent

give those 8 billion people the opportunity to live a modern lifestyle powered by electricity which

director because I am convinced that, for JERA, the best is yet to come. However, I have been

is not only safe, affordable and reliable but also zero carbon.

called upon by my own Government, to join the US Department of Energy to work on bringing

That is why I was honored to join the JERA Board of Directors: the Company’s vision andnew technologies and 21st century clean energy infrastructure to fruition. So I leave the JERA

mission and core values closely matched my own. JERA’s executive team is deeply committed to

Board with a heavy heart but with an innate sense of optimism that JERA is well on the path

the proposition that JERA will be a global leader in the fight to decarbonize the electricity businessto ultimate success and, not only JERA customers, but the global community at large, willat scale. Moreover, JERA has the technical expertise, the operational capability, the commercial

benefit from JERA’s success.
* This contribution is as of August 2022. Mr. David Crane retired as a director of JERA as of September 5, 2022.

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Value Creation

Strategies

Value Creation
Infrastructure

Financial andCorporate Information

Risk Management
Fundamental Approach and Issue Awareness
JERA continues to work toward highly effective risk

appropriately to minimize the impact on our business.
In addition, the Financial Strategy and Planning Group,

division), and the General Affairs Group (crisis response
division), among others. In particular, we strive to prevent risks

management as we seek to gain a proper understanding of

which serves as the risk management division at JERA, isfrom materializing by reporting on our policies and specificand prevent the risks associated with our corporate activities

organizationally and structurally independent from eachmeasures for dealing with risks that could significantly impact

and want to minimize loss should these risks materialize. We

department that conducts business, contributing to healthy

our business. In the unlikely event that a risk materializes, theview these efforts as underpinning the enhancement of ourtension within the system.

necessary reports on the response of the emergency task
force are provided quarterly.

corporate value and the fulfillment of our social responsibility
to our stakeholders.

Reporting to the Risk Management Committee, theDiscussions at the Risk Management Committee are

Leadership Panel, and the Board of Directors

reported to the Leadership Panel and the Board of Directors

corporate activities include operational accidents, damage to

The Risk Management Committee, chaired by the president,

each time, reflecting the opinions of executive officers,

facilities due to natural disasters, shutdowns or construction

meets quarterly and is attended by several parties to ensure

directors, and outside directors.

delays, and threats such as cyber-attacks and malware on

appropriate monitoring of risks (see Risk Management

power plant control and other systems.

Structure below). These include the officer in charge of eachthe company’s risk management system and methods upondivision, corporate auditors, the Internal Audit Group, theappointment, and their opinions are incorporated throughFinancial Strategy and Planning Group (risk management

exchanges of views and other means.

Potential risks that could have a significant impact on our

In addition, with the advent of the global economy and theshift toward borderless economic activity, we must respondIn addition, all outside directors receive an explanation of

appropriately to increasingly diverse and complex risks
today, including global risks such as inequality, poverty, andpolitical instability.

Risk Management Structure(As of July 31, 2022)

The JERA Group is committed to the continued enhancement of our risk management to fulfill our social responsibility
as an energy company that supports social infrastructure.

Risk Management System
Risk Management System
We have established a highly effective risk management
system headed by the company president to ensure that wecan provide a stable supply of energy in addition to other

Board of Directors

the event of a crisis, an emergency task force headed by thecompany president is deployed to respond quickly and❶ Operational Accidents

Leadership Panel

Committee Chair: President
Vice-Chair: Chief Financial Officer and Chief Officer of Business Support & Solutions
Committee Members: Company Chair, Division Officers, Executive Officers, Head of
the Planning Group, Executive Officer, Head of the General
Affairs Group, and Executive Officer, Head of the Financial
Strategy and Planning Group
Observers: Corporate Auditors, Executive Officer, Head of the Internal Audit Group
Advisors: Presidents of important subsidiaries and outside experts

Executive Office (Financial
Strategy and Planning Group)
Each division manager, group manager, and office manager

Risk Management Committee
Deliberation and affirmation of management
status and response policies for “significant
risks subject to review by senior management”

Branch offices

Groupcompanies

Amendments / Geopolitics❺ Management Strategy❻ Labor Affairs / Human
Resources❼ Input / Output❽ Product / Energy Prices

Selection of Significant Risks
Selection, affirmation, and evaluation of“significant risks subject to review by senior
management”

Risk Identification–Evaluation
Power plants /construction sites
LNG centers❸ Regulations / Legal❹ External Stakeholders

Responsible unit of risk management (each division, group, and office)the operations. When the risk affects multiple divisions, wemanage it appropriately in a cross-organizational manner. In

Board of Directors❷ Financial

Risk Management Committee

In non-emergency situations, our fundamental approach tothem within the execution of duties by the unit responsible forMain Risk Categories

President (Head of Risk Management)

important social responsibilities.
risks associated with our business activities is to manage

Risk Assessment Flowchart

Divisions, groups, and offices create risk
scenarios that the Risk Management
Committee Executive Office reorganizes tocreate a risk map❾ Natural Disasters /Investment Management❿ Riots / Crime⓫ Cybersecurity⓬ Legal Affairs / Ethics⓭ Environment / Climate
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Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Risk Management

Highly Effective Risk Management

Among operational risks, risks that have a high impact on

Evaluation of Individual Investments

Our approach to risk management is based on combining themanagement activities and a high frequency of occurrence are

After confirming the consistency of individual investment

functions of integrated risk management, evaluation ofidentified as significant risks subject to review by seniorevaluations with our field-specific investment strategies, ourfinancial soundness, and evaluation of individual investments.

management.

Investment Valuation Committee, which includes members

Integrated Risk Management

and the Board of Directors meet quarterly to discuss theinstitutions and other organizations, conducts reviews by

We quantify our total risk exposure based on market risk andamount of integrated risk as well as policies and specificwhich we verify the long-term investment potential.

credit risk.

measures to address these significant risks subject to review

The Risk Management Committee, the Leadership Panel,

The difference between total risk exposure and risk capitalcriteria.

certain level by considering operational risk as an uncertainty

Risk Heat Map

whose probability of occurrence is incalculable.

High

ImpactRisks whose
statistical probabilityof occurrence canbe calculated

Our risk-return analysis utilizes more than 200 guideline
rates calculated for each strategic target country and business.
Significant risks
subject to review by
senior management

Our Approach to Integrated Risk Management

Operationalrisk

Market risk
Total risk
exposure
Credit risk

Investment Valuation Process

Review according to risk
response measures andchange in impact onmanagement activities

Risk
bufferRisk
capital(equity)

In addition, we properly evaluate and manage risks byengaging in regular monitoring and establishing withdrawal

by senior management in particular.

is calculated as a risk buffer. This risk buffer is maintained at a

Uncertainties
whose probability ofoccurrence cannot
be calculatedwith experience in investment screening at financial

Low
Low

Investment Valuation Committee
Initialreview
Leadership Panel

Risks other than significant risks subject
to review by senior management
Likelihood

High

Evaluation of Financial Soundness

Investment Valuation Committee
Secondreview
Leadership Panel

Review items• Consistency with strategy• Management resource
constraints• Risk-return analysis• Negotiation policy

Review items• Risk-return analysis• Company-wide financial
impactIn our evaluation of financial soundness, we use the rating
methodologies of rating agencies to evaluate the long-term
outlook for financial rating levels in the business planning

Operational risk is managed using a risk map with impact

workflow and implement balance sheet management toon management activities on the vertical axis and frequency ofmaintain a financial rating of A through FY2025. (Please referoccurrence on the horizontal axis. For each managed risk, weto the “Financial Strategy” section on p.41 in the “Message

take measures such as retention, mitigation, and transference

from the CFO on Financial Strategy.”)in cooperation with each department and the Financial

Board of Directors

Execution of investment

Monitoring (quarterly)

Strategy and Planning Group, depending on the type andcharacteristics of the risk.

Keep

Sell

Main items monitored• Rate of return and cash flow
Withdrawal• Risk parameters
criteria

Withdraw

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Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Risk Management

Countermeasures for Large-Scale Disasters
We own around half of the thermal power plants in Japan.
Based on the Basic Act on Disaster Management, we have put
together and published our Operational Disaster Risk Reduction
Plan, Operational Plan for the Protection of Citizens, andOperational Plan for COVID-19 and Other Pandemic
Countermeasures. We also have emergency and disaster

maintain a stable power supply while protecting against

Basic Policy for JERA’s BCP and BCM• In the event of any disaster or risk event, we will place the highest
priority on the safety and security of people and ensure public
safety in compliance with laws and regulations.
• In order to fulfill our responsibility as an energy provider supporting
the social infrastructure in Japan, we will contribute to society andlocal communities by quickly restoring and continuing our corebusiness of supplying them with electricity and gas.

response rules and manuals in place to enable prompt decisionmaking and a swift response in the event of an emergency.
Recently, there has been concern regarding natural

JERA’s BCP and BCM Cycle
Policyestablishment

disasters such as earthquakes occurring directly beneath theTokyo metropolitan area or off the Nankai Trough and an
eruption of Mt. Fuji, which has prompted revisions by thenational and local governments to damage estimates anddisaster risk reduction measures. In light of these revisions,
we are undertaking the necessary measures, such as
earthquake-proofing our facilities in addition to periodicallyRepeats
annually

Revision andimprovement

Analysis andreview
NormalPreemptive
measures for training
and education

BCM

Review of business
continuity strategy
and measuresconducting drills to simulate large-scale disasters.
JERA-BCP drills include alternative strategy drills
envisioning transportation disruptions and communication

Emergency

infection. (Many power plant employees and other staff who
needed to be on-site to perform their duties are not included inthis figure.)FeaturedAchieving Food Security for Business Continuity
Food security is vital for business continuity and those who havedifficulty returning home after a large-scale disaster. We have
prepared emergency rations, and we have various offerings thatcater to the needs of our global workforce. Our JERA One-Day
Disaster Food Kits include halal and allergy-friendly options thatcater to the diverse needs of our employees.
These kits were developed with the aim of ensuring efficientmanagement and distribution, compact yet full of sustenance foran entire day. Ultimately, we plan to coordinate withmunicipalities and food banks to ensure they are used effectively.
We plan to make these kits available to local communities
and employees by spring 2023.

Planning

BCM

outages, such as drills for information sharing between both of
our shareholders and we are constantly making efforts toimprove our disaster risk reduction capabilities.

everyday management activities.
Based on these rules, we have established the BCM
Subcommittee, which reports to the Risk Management

Enhancement of JERA’s BCP and BCM

Committee regarding the establishment and review of the

As described above, JERA has a response system in place for

Business Continuity Plan (BCP) and regularly checks progress

the event of a major disaster. In light of the expansion of ouron disaster drills and advance measures.

business domains after integrating our thermal powerbusiness in 2019 and other changes in the business

COVID-19 Response

environment, we are taking various steps to further improve

Considering the global nature of our business activities, JERA

business continuity.

has always provided employees with laptop computers andIn the event of a large-scale disaster, we must ensure thatsmartphones, and we have built IT infrastructure that enables

the JERA Group’s important business operations are notour employees to stay connected no matter where they are ininterrupted or, if interrupted, that they are restored in thethe world. Accordingly, we were able to offer remote work as

shortest possible time. And so, we have established Business

the COVID-19 situation developed. As many as 90% of ourContinuity Management (BCM) Rules to strengthen our

employees were working remotely, yet we were able to
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Table of Contents /Editorial Policy

Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Information Security
Fundamental Approach

Management Committee, which serves as the overall risk

Our approach to information security aims to enrich the lives ofmanagement system.

people around the world and improve industrial and economic

Moreover, we have established security management

vitality through the supply of internationally competitive

functions and a security incident response team (SIRT) toelectric power and energy. The use of information technology

assist the CISO and management in overseeing cross-organi-is indispensable for achieving this, and we have establishedzational security measures and incident response.

the JERA Group Information Security Basic Policy to protect
our information assets and enhance the safety of transactions

Enhancing Information Security Measures

as we implement information security measures.

The Basic Policy on Information Security covers all personnel
engaged in JERA business activities and all physical,

Cybersecurity Management System

environmental, and other resources used in our operations.

To promote cybersecurity, we have established a system for

Based on this policy, we are responsible for the proper

managing cybersecurity risks under the responsibility ofhandling and protection of related information assets and aresenior management. We have also established a Security

working to strengthen our security measures to respond to

Subcommittee under the responsibility of the Chiefcyberattacks and other threats.

Information Security Officer (CISO) to promote

We continuously educate all employees who handle

cybersecurity at all times while coordinating with the Risk

information assets to raise their awareness of information
security and improve their skill level. Our aim is to ensure

Cybersecurity Management Structure (as of July1, 2022)

Headquarters

Frequency: Once a year
Method: EmailWe have put together a roadmap for future security
measures, including a plan to establish a global security
infrastructure to improve information security across the entire
JERA Group.
At JERA, we have enhanced the security of servers
accessible to the public and implemented measures to preventand related rules and regulations.

and analyze malicious attacks by hackers and others outside
the company.

Moreover, we conduct ongoing training related to targeted

Enhancement of Information Security
Measures for Domestic and Overseas Group
Companies

email attacks for all employees and offer e-learning and otherWe also follow the Cybersecurity Management Guidelines

Security
Governance
Systemprograms to reduce the risk of information leaks and computer

established by the Ministry of Economy, Trade and Industry to

Security
Management
Systemviruses arising from such attacks. There continued to be noreview and implement security measures for the JERA Group.

serious incidents related to information security or the

We also provide the same security education to domestic andprotection of personal information in FY2021.

overseas group companies at least once a year.

security and to ensure a swift response in the event of an
information security incident.

CISO
Security
Subcommittee
Chief Security
Officer
Branch Offices
Manager ofSecurity
Management(Headquarters)

Targeted Email Attack Training
Scope: 4,066 participants (including directors,
employees, and temporary staff)

outlines compliance matters to raise awareness of information

Risk Management
Committee

JERA-SIRT

Security Education
Scope: 3,738 participants (including directors,
employees, and temporary staff)
Frequency: Once a year
Method: e-learning program

thorough compliance with laws and regulations, this policy,
In addition, all employees are given a “security card” that

Board of Directors

Education & Training on Information Security (FY2021)

Security
Manager ofSecurity
Management(Branch Offices)

Information security education and training against targetedemail attacks provided in FY2021 is as follows:

Furthermore, we conduct annual security risk assessments
at each group company. We then evaluate and analyze theresults, which inform improvement requests made to enhance
the security of each of these companies.
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Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

ComplianceFundamental Approach and Issue Awarenessas well as any specific investigations, corrective actions, and

JERA is committed to earning and maintaining the trust of our

preventative measures, are submitted to the Board of

stakeholders by operating in accordance with the high ethicalDirectors for discussion or reporting as necessary.

“JERA Group Compliance Code of Conduct.”
In FY2021, we strengthened our efforts to promotecompliance by focusing on better information delivery,

standards expected of a global corporation. Under our JERA

The Legal Group, which serves as the committee’s

including sharing messages from management, as well asGroup Compliance Policy and Compliance Code of Conduct,

secretariat, works closely with compliance managers andenhanced training programs and the establishment of a

we will hold up our mission to provide cutting-edge solutions

program officers at each workplace, office, and group company

group-wide compliance program framework.

to the world’s energy issues and ensure compliance withto promote compliance among staff, management, anddomestic and foreign laws and regulations.

everyone in between.

FY2021 Primary Compliance Initiatives
Initiative

As a part of the global energy value chain, we are expectedto act with integrity and in a manner that aligns with domestic

Compliance Program Structure 

and international laws and regulations, demonstrating a

Board of Directors

heightened sense of ethics suitable to a worldwide
corporation. Particularly in recent years, environmental andhuman rights issues in the supply chain are now being
addressed in the context of compliance alongside issues in(As of August 31, 2022)

Proposals / Reporting

Workplaces / Offices

continue to act in a manner befitting their responsibilities, evenCompliance Managers: In principle, headquarters and branch office

JERA Group Compliance Policy
https://www.jera.co.jp/english/corporate/compliance/ethicspolicy

JERA Group Compliance Code of Conduct
https://www.jera.co.jp/english/corporate/compliance/codeofconduct

management and frontline leaders

Compliance Program Officers: Individuals nominated by• Leading and setting an example for compliant business operations• Staying up to date with the latest compliance developments andproviding recommendations • Encouraging dialogue in the workplace• Responding appropriately to incidents • And moreGroup Companies

Whistleblower
HotlineCompliance Managers:
In principle, the lead compliance officers at each company

Compliance Program Framework
We have established the Compliance Committee, chaired by•C ompliance Training: “Compliance in an Era of Change”(March)• Antitrust Law Training: “Unfair Trade Restrictions” (January)• Training on Internal Rules: “Anti-Bribery Regulations” (June)

Building the
JERA Group
Framework•R eview of the group’s compliance organization structure inconsideration of the management structures at affiliatedcompanies (year-round)•G roup compliance meetings, both domestic and overseas(August, February) reation and testing of compliance website for domestic•Csubsidiaries (from September)Group Policy
Development•F ormulation and publishing of the JERA Group Policy
against Anti-Social Forces, JERA Group Human Rights
Policy, and JERA Group Tax Policy (March)

compliance managers

Responsibilities•C ompliance updates (monthly)• Awareness campaigns surrounding regulations on bribery
and corruption (October, December)•S potlight on the Whistleblower Hotline (October – March)• Training for officers dispatched to new subsidiaries (July)and training for mid-career hires (July, March)

Collaborationcommitment to compliance. Our officers and employees will

industry changes.

Training[Chair] President [Vice Chair] Vice President [Observers] Auditors[Secretariat] Legal Groupbribery and competition law. Our group is united in its

amid intense scrutiny of energy issues worldwide and drastic

Information
DeliveryCompliance Committee
Chair, President, Vice Presidents, Chief Officers,
Branch Leaders, External Members

Results

Messages from • U pdates from the Compliance Committee Chair and Vice
Management
Chair (delivered in April, October, and January)

Collaboration

Compliance Program Officers•C ompliance awareness survey conducted in December incooperation with an external organization (95.8% response
rate with 3,903 of 4,076 potential participants responding)
Questionnaires•8 2.2% of participants responded that they “fully
understand” the content of the Compliance Policy andCompliance Code of Conduct

Individuals nominated by compliance managers

Corruption Prevention

the president, to promote compliance as the organization
responsible for reviewing and deciding on various compliance-

Compliance Training

We have established standards of conduct to prevent

related measures.

The Compliance Committee deliberates and decides on

corruption in the JERA Group Compliance Policy and JERA

compliance-related measures for each fiscal year, taking into

Group Compliance Code of Conduct.

The committee comprises the chair, president, vicepresidents, chief officers, branch leaders, labor union represen-consideration the results of employee questionnaires andIn addition, to meet the objectives of the Compliance Policy

tatives, and ad-hoc committee members, including outsideother factors, in order to implement a course of action in

and Code of Conduct, we have established “Anti-Bribery

experts. Compliance measures considered by the committee,

accordance with the “JERA Group Compliance Policy” and theRegulations” and “Anti-Corruption Regulations.” These policies

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Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Complianceestablish approval procedures for entertainment, gifts, andIn May 2022, we announced our “Declaration of

donations to domestic and foreign public officials or agents ofPartnership Building,” in which we express our commitment tothose officials, delineate prohibited activities, and describe

promote collaboration and coexistence with business partners

reporting procedures for the exchange of money or goods withand value-creating businesses.

business partners. Further, JERA raises awareness of theseWe have established a “Procurement Policy” alongside ourand other work-related issues.
In FY2021, the whistleblower hotline received 17 cases,
while the harassment consultation hotline had 12.
In response to the enactment of the amended Whistleblower
Protection Act (June 2022), JERA is strengthening its response

policies through an e-learning system, the Legal Groupacquisition activities. We are committed to responsible

system at its whistleblower and harassment consultation

monitors and supervises related processes and operations,procurement in consideration of corporate social responsibility

hotlines, as well as designating and providing training andand the Compliance Committee receives reports on these and(CSR) and environmental, social, and corporate governanceeducation for a whistleblower response team.

other efforts.

(ESG), including quality assurance, procurement cost

Selections from the JERA Compliance Code of Conduct
notes on gifts, donations, and entertainment:• We always maintain proper and healthy relationships with ourbusiness partners and do not provide them with money, gifts,
entertainment, or any other economic benefits that exceed good
judgment.
• In our procurement activities, we provide open, fair, and equal
participation opportunities in both domestic and overseas markets
and select suppliers through rational and transparent procedures.
• We establish and maintain fair and open relations with the politicaland governmental counterparts of each country and region incompliance with domestic and international laws and regulations
and internal rules.
• We do not entertain, provide gifts, or provide any other economic
benefits to public officials or anyone in an equivalent position,
domestic or foreign.
• We do not make such payments if we are aware that a portion of
the payments made to agents or consultants, or any such parties,
is being or is suspected of being diverted for the purpose ofengaging in improper activities with public officials or persons in an
equivalent position.

To encourage the use of this whistleblower system, JERA

reduction, compliance with laws, regulations, and corporate

guarantees compliance with the Whistleblower Protection Act.

ethics, safety assurance, and business continuity planning

JERA continues to share information about the whistleblower(BCP). In addition, we hold briefing sessions about oursystem regularly and seeks to build trust through efforts suchprocurement policies with suppliers to ensure mutualas assessment of intention, protecting confidentiality, andunderstanding and close communication. In listening to theprohibiting discriminatory treatment or retaliation against

opinions and requests of our suppliers, we strive to build evenwhistleblowers.

stronger relationships.
Procurement Policy
https://www.jera.co.jp/english/corporate/procurement/

Declaration of Partnership Building
https://www.jera.co.jp/english/corporate/compliance/partner

Whistleblower System and Harassment
Consultation Hotline
To prevent compliance violations and quickly detect andUsers

Consultation Hotlines

JERA

Whistleblower and Harassment Hotlines• Employees• Temporary staff, etc.

• (Internal) Compliance Committee Secretariat,
Labor Affairs and Human Resources Group• (External) Law Offices

JERA Group
Companies• Employees• Temporary staff, etc.

JERA Group Consultation Hotlines* Some group companies do not have one yet.

resolve any violations that do arise, we have establishedinternal and external whistleblower hotlines for reporting on

Tax Complianceissues within the company. The hotline is available 24 hours a

In February 2022, JERA established and announced to the

day for individuals to make anonymous or named reports via

public JERA Group Tax Policy, which outlines the company’s

Fair and Just Trade with Suppliers(CSR- and ESG-Based Responsible Procurement)

email or post. The scope of consultation and reporting services

fundamental position and aims to strengthen tax governanceoffered range from bribery and corruption to harassment,with management involvement.

We conduct our transactions and business activities inhuman rights violations, and acts that infringe on the

In order to fulfill our ethical tax obligations and social

compliance with laws and regulations as well as with the

reputation or social credibility of the group, as well as

responsibilities, we are committed to further reducing tax risk

principles of fairness and impartiality, both in Japan andviolations of laws, employment regulations, and internal

by strengthening our tax governance.

overseas. We uphold free trade and market competition andcompany rules.

conduct fair business in accordance with the Antimonopoly Act

In July 2021, JERA established a new harassment

and relevant domestic and international laws and regulations.

consultation service to ask for advice or report harassment

JERA Group Tax Policy
https://www.jera.co.jp/english/corporate/compliance/taxpolicy

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Value Creation

Directors & Officers

Apr.  1977
June 2014
Apr.  2015
Apr.  2016
June 2017
Apr.  2019

Reappointed

Reappointed
Corporate Vice President,
Managing Executive Officer,
Director, Business
Development

Chair

President

Toshihiro Sano

Satoshi Onoda

Board Meetings Attended:

Board Meetings Attended:

26/26 (100%)

26/26 (100%)

Joined Tokyo Electric Power Co., Inc.
Director, Vice President, Tokyo ElectricPower Co., Inc.
Director (non-executive) , JERA
Director, TEPCO Holdings, Inc.; President,
TEPCO Fuel & Power, Inc.
Chair, TEPCO Fuel & Power, Inc.
Chair, JERA

Apr.  1980
Apr.  2018
June 2018
Apr.  2019

Apr.  1986
Apr.  2013
Apr.  2015
Apr.  2016
July  2016
Apr.  2019

Apr.  2022
Reappointed

Reappointed

Kazuo Sakairi

Board Meetings Attended:

Board Meetings Attended:

26/26 (100%)

Joined Tokyo Electric Power Co., Inc.
Apr.  1988
Executive Officer, TEPCO
July  2017Managing Executive Officer, TEPCO; Vice
President, TEPCO Fuel & Power, Inc.
Apr.  2019
Managing Director, JERAManaging Director and Chief Strategy Officer,
Apr.  2020
JERA, Director (non-executive), TEPCO Fuel &Power, Inc.
Apr.  2021
Corporate Vice President, Director, COO,
Business Development Department, JERA
Corporate Vice President, Director, Chief
Apr. 2022
Operating Officer, Business Development
Department, JERA
Corporate Vice President, Managing Executive
Officer, Director, Business Development at JERA

OutsideReappointed
Corporate Vice President,
Managing Executive Officer,
Director, CFO, Finance andAccounting

Hisahide Okuda

Board Meetings Attended:

26/26 (100%)

Joined Chubu Electric Power Co., Inc.
Executive Vice President, Chubu ElectricPower Co., Inc.; President, Power Generation
Company; Director (non-executive), JERA
Director, Executive Vice President, Chubu
Electric Power Co., Inc.
President, JERA

OutsideReappointed
Corporate Vice President,
Managing Executive Officer,
Director, Corporate Strategy

Yukio Kani

Apr.  2020

Reappointed

Financial andCorporate Information*1. Indicates an outside director as defined in Article 2-15 of the Companies Act*2. Indicates an outside auditor as defined in Article 2-16 of the Companies Act*3. David Crane resigned from JERA’s Board of Directors on September 5, 2022.

Directors
Reappointed

Value Creation
Infrastructure

Strategies

25/26 (96.2%)

Joined Chubu Electric Power Co., Inc.
General Manager, Strategies & Alliances
Office, Head of Corporate Planning &Strategy Division, Chubu
Managing Executive Officer, COO, Corporate
Strategy Department, JERAManaging Executive Officer, Director, COO,
Corporate Strategy Department, JERA
Corporate Vice President, Managing
Executive Officer, Director, COO, Corporate
Strategy Department, JERA
Corporate Vice President, Managing
Executive Officer, Director, Corporate
Strategy, JERA

OutsideReappointed

Apr.  1987
Jan. 1995
Nov. 2002
June 2006
Jan.  2015
Apr.  2019
Apr. 2022

OutsideJoined Bank of Tokyo (now MUFG Bank, Ltd.)
Vice President, Bank of Tokyo Trust Company(New York)
M&A Team Head, Corporate Advisory
Department, Mitsubishi Securities (nowMitsubishi UFJ Morgan Stanley Securities)
Senior Director, GCA Corporation (now
Houlihan Lokey, Inc.)
Executive Officer, Managing Director, Headof Asia Region at GCA Corporation
Managing Executive Officer, Director,
CFO, JERA
Corporate Vice President, Managing
Executive Officer, Director, CFO, Finance andAccounting, JERA
Reappointed

OutsideDirector*1

Joseph M.
NaylorDirector*1

Director*1

Director*1

David Crane

Miyuki Suzuki

Satoru Katsuno

Seiji Moriya

Board Meetings Attended:

Board Meetings Attended:

Board Meetings Attended:

Board Meetings Attended:

Board Meetings Attended:

25/26 (96.2%)

25/26 (96.2%)

Director*1,3

26/26 (100%)

23/26 (88.5%)
Nov. 1984
June 1991
June 1996
Mar. 2000
Dec. 2003
Apr.  2016
Apr.  2020
Sept. 2020
Jan. 2021
Oct. 2021
Oct. 2021
Dec. 2021

White & Case LLP
Vice President, ABB Group Energy Ventures(Hong Kong)
Senior Vice President, Lehman Brothers
CEO and COO, International Power PLC
CEO, NRG Energy, Inc.
Senior Operating Executive, Pegasus Capital
Advisors
Director (non-executive), JERA
CEO, Climate Real Impact Solutions
Director (non-executive), Saudi Electricity
Company
Director (non-executive), Tata SteelDirector (non-executive), Source Global
Director (non-executive), Heliogen Inc.

Sept. 1982
July 2006
Mar. 2009
Aug. 2013
Apr.  2016
Apr.  2021

Joined Chevron (California)
CEO/COO, Sasol Chevron (UK)
General Manager – Business Development,
Projects at Chevron (California)
Corporate Vice President – Strategic
Planning, Chevron (California)
Corporate Vice President – Policy,
Government and Public Affairs, Chevron(California)
Director (non-executive), JERA

Mar. 2002
June 2004
Jan. 2007
Dec. 2 011
May 2015
Jan.  2018
Sep. 2019
Apr. 2021
July  2021
Aug. 2022

Executive Vice President and Head, Consumer
Business, Japan Telecom Co. Ltd.
CEO Asia Pacific, Lexis Nexis
President and CEO, KVH Co. Ltd.
CEO and Representative Director, Jetstar
Japan KK
President and General Manager, Cisco Systems
Japan
President, Asia-Pacific, Japan and China, Cisco
Systems (Singapore)Director (non-executive) , MetLife Japan KK
Ltd. (current)
Director (non-executive), JERA
Director (non-executive), Western Digital
Corporation (current)
Director (non-executive), Twilio Inc. (current)

Apr.  1977
June 2013
June 2015
Apr.  2020
Apr.  2021

Joined Chubu Electric Power Co., Inc.
Director, Executive Vice President, General
Manager of Corporate Planning & Strategy
Division, Chubu
President and Director, Chubu
Chair of the Board of Directors, Chubu(current)
Director (non-executive) , JERA

23/26 (88.5%)
Apr.  1986
Apr.  2016
Sept. 2018
Apr.  2019
Apr. 2022

Joined Tokyo Electric Power Co., Inc.
Managing Director, TEPCO Fuel & Power, Inc.
Executive Vice President, CFO and Assistantto the President, TEPCO Holdings, Inc.;
President at TEPCO Fuel & Power, Inc.
Director (non-executive), JERA
Executive Vice President, Chief Risk Officer(CRO), and Assistant to the President,
TEPCO Holdings, Inc. (current)

Auditors
Reappointed

Apr.  1985
Apr.  2018

Apr.  2019

OutsideReappointed

OutsideNew Appointment

OutsideAuditor*2

Auditor*2

Auditor*2

Shigeyoshi Araki

Hideo Oishi

Michitaka Kondo

Board Meetings Attended:

Board Meetings Attended:

Board Meetings Attended:

26/26 (100%)

25/26 (96.2%)—

Auditor Panel Meetings
Attended:

Auditor Panel Meetings
Attended:

Joined Chubu Electric
20/20 (100%)
Power Co., Inc.
Executive Officer, Chubu
General Manager, Thermal
Power Generation Business
Department, Power
Generation Company
Corporate Auditor, JERA

Apr.  1985

June 2015
June 2016
Apr.  2019

Joined the Japan
20/20 (100%)Development Bank
(now the Development
Bank of Japan Inc.)
Member of the Board of Directors
and Managing Executive Officer,
the Development Bank of Japan Inc.
Executive Director, ResearchInstitute of Capital Formation at
Development Bank of Japan Inc.
Corporate Auditor, JERA

Apr.  1985
Oct. 2020
Apr.  2022

Joined Tokyo ElectricPower Co., Inc.
Audit Special Officer
TEPCOHoldings, Inc.
Corporate Auditor, JERA

Auditor Panel Meetings
Attended:—Appointment of Directors
Candidates for the Board of Directors are determined by the
resolution of the board after consultation at the Nomination andCompensation Committee, taking into consideration each person’squalities and abilities necessary to serve as a JERA director in
addition to the diversity and composition of the board. The
Nomination and Compensation Committee comprises three or more
directors, including two outside directors from JERA’s shareholder
companies. The Committee forms to discuss compensation andother personnel affairs relating to directors, corporate auditors, andexecutive officers.

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Table of Contents /Editorial Policy

Value Creation

Strategies

Value Creation
Infrastructure

Financial andCorporate Information

Financial Data
Unit: Millions of yen

Profit and Loss Statement (P&L) Information(P&L by segment)

Fuel business
Overseas power generation business
Thermal power and gas business in Japan
Adjusted

Net sales (operating revenue)

167,008

249,438

132,992

174,429

244,194

95,370

Profit before income taxes

195,386

227,818

96,334

Profit attributable to owners of parent

168,543

157,852

24,625Net sales

864,708

1,076,200

2,995,533

Segment profit (loss)

25,09448,014

161,337

Net sales

2,180

2,663

4,132

Segment profit (loss)

36,126(7,661)(19,301)
3,119,438

2,926,760

2,391,044

Segment profit (loss)

Net sales

135,814

152,858(113,891)

Net sales(513,647)(739,762)(1,683,829)

Segment profit (loss)(28,492)(35,358)(3,518)Depreciation and amortization

197,940

187,737

153,619

Increase in property, plant and equipment, and intangible assets

244,541

225,997

336,981

1,433

1,142

1,079

177

132

106

1,255

1,009

973

Total assets

4,035,324

4,090,880

8,722,197

Total net assets

1,601,267

1,762,120

1,974,370

Net worth

1,540,522

1,686,194

1,809,691

Interest-bearing liabilities

1,505,957

1,613,291

2,646,549

Other

Key Financial Indicators

Other

FY2021

4,435,275

Operating profit

Thermal power and gas business in Japan

Cash Flow Information

FY20202,730,146

Ordinary profit

Research and development costs

Balance Sheet Information

FY20193,280,002

Net cash provided by (used in) operating activities

551,670

340,825(340,433)

Net cash used in investing activities(310,863)(272,092)(661,033)

Net cash provided by financing activities(452,054)

89,542871,775

Free cash flow

240,807

68,733(1,001,466)

Cash and cash equivalents at the end of the year

402,431561,685

461,456

Net profit*1

90,082

111,629

277,032

EBITDA*2

292,812359,305

610,848

Return on invested capital (ROIC) (%)*3

3.2

3.7

7.3

Return on equity (ROE) (%)*4

8.5

6.9

15.8

Net debt-to-equity ratio*5

0.7

0.6

1.2

Net debt-to-EBITDA ratio*6

3.6

2.8

3.5

Synergy effects (billions of yen)
Credit ratings

25.0
S&P A–, R&I A+, JCR AA–

45.0
S&P A–, R&I A+, JCR AA–

85.0
S&P A–, R&I A+, JCR AA–

Notes:(1). Excluding time lag (2). EBITDA = Earnings before interest and taxes* + Depreciation and amortization + Interest expenses *Excluding time lag(3). ROIC = {Net profit*1 + Interest expense × (1 − Effective tax rate*2)} ÷ (Interest-bearing liabilities + Net worth*3)*4 *1. Excluding time lag *2. Using the company’s effective tax rate (figures listed in the Financial Statement) *3. Total net assets − Non-controlling interests*4. Average at the beginning and end of the period (4). ROE = Net profit*1 ÷ Net worth*2 *1. Excluding time lag *2. Average at the beginning and end of the period(5). Net debt-to-equity ratio = (Interest-bearing liabilities − Cash and deposits) ÷ Net worth* *Total net assets − Non-controlling interests (6). Net Debt / EBITDA = (Interest-bearing liabilities − Cash and deposits) ÷ EBITDA* *Excluding time lag

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Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Financial Data

Breakdown of Major Corporate Bonds
FY2019FY2020

FY2021

Bonds payable
Total outstanding amount(millions of yen)—

40,000150,000

Description

None

Unsecured bonds – 1st(with inter-bond pari passu
clause)Unsecured bonds – 2nd(with inter-bond pari passu
clause)Unsecured bonds – 3rd(with inter-bond pari passu
clause)Unsecured bonds – 4th(with inter-bond pari passu
clause)Unsecured bonds – 5th(with inter-bond pari passu
clause)Unsecured bonds – 6th(with inter-bond pari passu
clause)

Type

None

Domestic straight bonds(unsecured)

Domestic straight bonds(unsecured)

Domestic straight bonds(unsecured)

Domestic straight bonds(unsecured)

Domestic straight bonds(unsecured)

Domestic straight bonds(unsecured)

Date of issue

None

October 22, 2020

October 22, 2020

November 26, 2021

November 26, 2021

January 19, 2022

January 19, 2022

Issue amount (millions of yen)None

20,00020,00040,00030,00030,00010,000Time to maturity

None

5 years

10 years

5 years

10 years

3 years

19 yearsInterest rate (%)

None

0.190

0.390

0.150

0.350

0.050

0.670

Power Sold / Power Generated
FY2019FY2020

FY2021

265.7

246.6

255.5

LNG

215.6

201.5

192.3

Coal

48.4

43.2

55.0

Fuel oil / Crude oil

1.3

0

0

265.3

244.6

247.3

Power sold (billion kWh)Power generated (billion kWh)

Total

Major Facility Plans (Thermal Power)
Company

As of March 31, 2022
Segment

Location

Output (MW)Start of construction

Start of operation

JERA Power TAKETOYO LLC

Thermal power and gas business in Japan

Taketoyo Unit 5

1,070

April 2018

August 2022

JERA Power ANEGASAKI LLC

Thermal power and gas business in Japan

Anegasaki New Units 1, 2, 3

646.9 × 3

February 2020

February / April / August 2023

JERA Power YOKOSUKA LLC

Thermal power and gas business in Japan

Yokosuka Units 1, 2

650 × 2

August 2019

June 2023, February 2024

Goi United Generation LLC

Thermal power and gas business in JapanGoi Units 1, 2, 3

780 × 3

April 2021

August / November 2024, March 2025

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Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Non-Financial Data
Environmental Data
Item*1

Fuel consumption
Coal*2Petroleum*2
LNG, LPG, natural gas*2
Biomass
Sending-end powerGas sales volume
Total energy consumption (crude oil equivalent)
Total thermal power generation efficiency(low heating value)
Thermal Power Generation Efficiency Benchmark A(Energy Conservation Act)*3
Thermal Power Generation Efficiency Benchmark B(Energy Conservation Act)*3
Purchased electricity*2
Industrial water intake
Tap water intake
Groundwater usage
Greenhouse gas (GHG) emissions associated withpower generation business (Scope 1)CO2 emissions
CH4 (methane) emissions
N2O (nitrous oxide) emissions
SF6 (sulfur hexafluoride) emissions*4
HFC (CFC alternative) emissions*4[Domestic / JERA Group] CO2 emissions associatedwith power generation business (Scope 1)*5
[Global / JERA Group] CO2 emissions associatedwith power generation business (Scope 1)*5,*6
CO2 emissions associated with fuel upstream
business (Scope 1)*5,*6
CO2 emissions associated with fuel transportation
business (Scope 1)*5,*6
CO2 emissions associated with purchased
electricity consumption (Scope 2)*2
Other indirect CO2 emissions (Scope 3)
Purchased goods and services
Capital goods
Fuel- and energy-related activities*2
Upstream transportation and distribution*2
Waste generated in operations
Business travel
Employee commuting
Upstream leased assets
Downstream transportation and distribution
Processing of sold products
Use of sold products*2
End-of-life treatment of sold products
Downstream leased assets
Franchises
Investments

Unitmillion t
million kl
million t
million t
billion kWhmillion t
million kl

FY2019

17.13
0.34
30.93
0.39
265.3
3.06
55.25

FY2020

15.77
0.05
28.86
0.39
244.6
3.12
50.70

FY2021

20.04
0.04
27.43
0.38
247.3
3.82
50.80

%

50.1

49.7

48.2

—

1.002

1.000

1.003

%

46.8

46.8

46.7

million kWh
thousand m3
thousand m3
thousand m3

174.6818,116868
22161.74
17,712
809
176

84.75
18,165864
118

thousand t-CO2

124,629

114,952

121,098

thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2

124,501
14
109
4
0.6

114,833
11
101
6
0.4

120,948
11
119
19
0.3

thousand t-CO2

139,007

127,436

131,756

thousand t-CO2

161,111

147,915

155,358

thousand t-CO2

235

348

245

thousand t-CO2

297

327

283

thousand t-CO2

79

77

37

thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2

31,9930.07
768
22,777
25
165
1
1
—
—
—
8,255
—
—
—
—

30,4130.04
708
21,083
21
171
1
1
—
—
—
8,428
—
—
—
—

32,5080.01
902
21,034
28
219
1
2
—
—
—
10,323————

Item*1CO2 emissions intensity of power generation*7[Domestic / JERA Group] CO2 emissions intensityof power generation business*5,*7[Global / JERA Group] CO2 emissions intensity of
power generation business*5,*6,*7
SF6 (sulfur hexafluoride) recovery rate (at time ofinspection)
SF6 (sulfur hexafluoride) capture rate (at time ofdisposal)SOx (sulfur oxides) emissions
SOx (sulfur oxides) emissions intensity*7
NOx (nitrogen oxides) emissions
NOx (nitrogen oxides) emission intensity*7
Gross wastewater volume
COD (chemical oxygen demand) emissions
Industrial wastes and byproducts
Disposal by reclamation
Coal ash utilization rate
Severe leaks
PCB (polychlorinated biphenyl) transformers andcapacitors disposed of
PCB-contaminated insulating oil treatedFines or sanctions for violations of environmental
laws and regulations

Unit

FY2019FY2020

FY2021kg-CO2/kWh

0.469

0.469

0.489

kg-CO2/kWh

0.492

0.491

0.505

kg-CO2/kWh

0.496

0.493

0.512

%

99.8

99.9

99.5

%

100.0

99.4

99.0

thousand t
g/kWhthousand t
g/kWhthousand m3t
thousand t
thousand t
%
cases

7.50
0.03
21.13
0.08
7,604
21
1,991
12
99.99
0

5.09
0.02
17.83
0.07
7,506
20
2,045
13
99.99
0

6.32
0.03
17.68
0.07
7,188
20
2,715
19
99.99
0

units

16

57

78

kl

86

510

25

cases

0

0

0

*1. Figures for JERA in Japan and joint ventures with Hitachinaka Generation Co., Inc., and JERA Power TAKETOYO LLC only
(unless otherwise noted)*2. Figures for FY2020 and previous years have been revised following a review of definitions and calculation methods*3. Figures for JERA operations in Japan*4. Calendar year totals*5. Joint venture figures calculated based on JERA equity stake*6. Totals for overseas businesses are generally aggregated based on local fiscal years and reporting standards*7. Figures based on sending-end powerSocial Data
Item

Unit

FY2019FY2020

FY2021

Employees (JERA Group)

People

4,797

4,907

5,062

Employees (JERA only)*1
Total
Men
Women

PeoplePeoplePeople

3,726
3,452
274

3,847
3,557
290

3,910
3,581
329

Average age (JERA only)
Total
Men
Women

Years old
Years old
Years old

44.3
44.5
41.8

44.7
44.8
42.2

44.6
44.9
41.6

Managers (JERA only)
Total
Men
Women

PeoplePeoplePeople

722
697
25

756
724
32

716
680
36

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Value Creation

Strategies

Value Creation
Infrastructure

Financial andCorporate Information

Non-Financial Data

Item

Unit

New graduate hires (JERA only)*2
Total
Men
Women

PeoplePeoplePeopleFY20195043
7FY202051
43
8

FY202179
68
11

Mid-career hires (JERA only)
Total
Men
Women

PeoplePeoplePeople

21
16
5

72
60
12

131
98
33

Turnover rate (JERA only)*3
Total
Men
Women

%
%
%

—
—
—

—
—
—

2.8
2.9
1.9

Employees using childcare leave (JERA only)
Total
Men
Women

PeoplePeoplePeople

5
0
5

10
0
10

20
10
10

%
%
%

100
—
100

100
—
100

100
100
100

Gender wage gap (the ratio between men and womenwhere a gap exists)*5

%

—

—

—

Employee engagement*6

%

68.1

68.6

68.8

Labor union membership rate

%

100

100

100

Average annual training hours per employee*

Hours

—

—

32.4

Contribution amounts

Millionsof yen4780

38Return-to-work rate after childcare leave (JERA only)*4
Total
Men
Women

7

*1. Excluding employees on loan from JERA to other companies and including employees on loan to JERA from other companies*2. Figures from FY2021 and earlier represent the number of employees initially assigned to JERA from TEPCO and Chubu. (Newgraduate hiring began in FY2022.)*3. Figures include individuals who have an employment relationship with JERA, including employees on loan.
*4. Percentage of employees who returned to work during the fiscal year among all scheduled to return*5. In April 2021, JERA introduced its own compensation system in which there is no wage gap between men and women employees
who share the same attributes (age, position, rank, etc.).
*6. An average of 58.8% among all businesses subject to a third-party survey*7. In FY2021, JERA established its own training system that includes off-the-job group training as well as on-the-job technical training
at power plants, e-learning, etc.

Governance Data
Item (Method of Calculation)

Unit

FY2019FY2020

FY2021

Customer privacy complaints, etc.
Compliance violations
Reports via the harassment consultation hotline
Reports via the whistleblower hotline*1
Data leaks

cases
cases
cases
cases
cases

0
0
—
12
0

0
0
—
12
0

0
0
12
17
0

Item (Method of Calculation)

Unit

Composition of the Board of Directors
Number of directors
PeopleNumber of outside directors
People Ratio of outside directors (number of outside directors%
÷ number of directors)
Number of female directors
People Ratio of female directors (number of female directors ÷%number of directors) Number of executive officers (excluding those who are
Peoplealso directors)
PeopleNumber of female executive officers Ratio of female executive officers (number of female%
executive officers ÷ number of executive officers)
Average age of directors
Years old
Director age
Years old
Age of youngest director
Years old
Age of eldest director
Years old
Term of office for directors
Years
Term of office for executive officers
Years
Number of board meetings
Meetings
Attendance ratio of meetings ([number of board
meetings attended by directors × number of directors] ÷%[number of board meetings held × number of directors])
Attendance ratio of outside directors ([number of board
meetings attended by outside directors × number of%outside directors] ÷ [number of board meetings held ×
number of outside directors])
Director compensation
Directors paid
PeopleMillions
Total amount of compensationof yenCorporate auditors
PeopleOutside corporate auditors
PeopleRatio of outside corporate auditors (number of outside%
corporate auditors ÷ number of corporate auditors)
Number of statutory auditor panel meetings
Meetings
Statutory auditor panel meeting attendance rate ([numberof meetings attended by auditors × number of auditors]%÷ [number of meetings held × number of auditors])
Board of Directors meeting attendance rate by corporate
auditors ([number of meetings attended by auditors ×%
number of auditors] ÷ [number of board meetings held ×
number of auditors])
Nomination and Compensation Committee members
PeopleOutside directors
PeopleRatio of outside directors%
Committee meetings
Meetings
Committee meeting attendance rate%
PeopleSustainability Promotion Committee members*2
Committee meetings
Meetings

FY2019FY2020

FY2021

10
4

10
5

10
5

40

50

50

0

0

1

0

0

10

11

12

10

0

0

0

0

0

60.4
No age limit
49
69
1
1
15

60.1
No age limit
50
68
1
1
23

0
61.3
No age limit
57
69
1
1
26

97.3

99.1

96.5

93.3

99.1

93.8

8

8

8

334

278

312

3
3

3
3

3
3

100

100

100

20

17

20

100

100

100

100

100

98.7

5
2
40
6
100
10
1

5
2
40
7
100
10
2

4
2
50
9
100
10
2

*1. Two FY2021 cases overlapped between the whistleblower and harassment consultation hotlines and are included in current figures.
*2. Member count includes officers.

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Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Thermal Power Plants in Japan

Overseas Businesses & LNG Suppliers

List of Thermal Power Plants*¹ (total output and fuel type listed for eachstation)Overseas Businessesu LNG u Coaln Thermal power generation n Renewable energy n Fuel upstream n Optimization(As of March 31, 2022)

u Heavy oilu Crude oil u Natural gas

Joetsu2.38GW / u

Hirono4.4GW / u u u

Hitachinaka

2GW / uHitachinaka Joint Thermal Power Station (Hitachinaka
Generation Co., Inc.)

0.65GW / u

Kashima

5.66GW / u u uChiba

4.38GW / u

Goi (Goi United Generation LLC)

2.34GW / u*Scheduled to begin operation in FY2024

Anegasaki

1.2GW / uAnegasaki (JERA Power Anegasaki)*Scheduled to begin operation in FY2023

1.941GW / u

Sodegaura

3.6GW / uFuttsu5.16GW / u

Yokosuka (JERA Power Yokosuka)

1.3GW / u*Scheduled to begin operation in FY2023

Minami-Yokohama

1.15GW / u

Yokohama

3.016GW / u

Higashi-Ohgishima

2GW / uKawasaki

3.42GW / u

Shinagawa

1.14GW / u

Atsumi

1.4GW / u uHekinan

4.1GW / uTaketoyo (JERA Power Taketoyo)*

1.07GW / u

Chita

1.708GW / u

Chita Daini

1.708GW / u

Shin-Nagoya

3.058GW / u

Nishi-Nagoya

2.376GW / u

Kawagoe4.802GW / u

Yokkaichi

0.585GW / u

2*1. Power plant name followed by name of operating company in parentheses.
*2. Began operation in August 2022

(As of March 31, 2022)

Netherlands• Rietlanden Coal TerminalnUK• Gunfleet Sands Offshore Wind IPP Project• Zenobe Battery Storage• JERA Global Markets

n
n
n

Qatar
• Ras Laffan B Gas Thermal IWPP Project• Ras Laffan C Gas Thermal IWPP Project• Mesaieed Gas Thermal IPP Project• Umm Al Houl Gas Thermal IWPP Project

n
n
n
n

UAE
• Umm Al Nar Gas Thermal IWPP Projectn

Oman• Sur Gas Thermal IPP ProjectIndia• ReNew Power Wind and Solar Power IPP Project

Philippines• TeaM Energy IPP Project• Aboitiz Power IPP Projectnn nIndonesia•C irebon Coal Thermal IPP Project

n

US
•P
 hu My Gas Thermal IPP Project• Carroll County Gas Thermal IPP Project• Cricket Valley Gas Thermal IPP Project• Linden Gas Thermal IPP Project• Compass Gas Thermal IPP Project• El Sauz Wind Power Project• Freeport LNG Project• JERA Global Markets

n
n
n
n
n
n
n
n

n

Vietnam•P hu My Gas Thermal IPP ProjectnnBangladesh• Summit Power IPP Project• Meghnaghat Gas Thermal IPP Project

Singapore• J ERA Global Marketsnnn

Thailand• EGCO IPP Project• Solar Power IPP Project• Ratchaburi Gas Thermal IPP Project• Wind Power IPP Project• AT Biopower Rice Husk Biomass Thermal IPP Project

n n
n
n
n
n

Australia*•D arwin LNG Project• Gorgon LNG Project• Wheatstone LNG Project• Ichthys LNG Project

n
n
n
n

Mexico•V alladolid Gas Thermal IPP Project• Falcon Gas Thermal IPP ProjectnnTaiwan• Chang Bin / Fong Der / Star Buck Gas Thermal IPP
Project• Formosa 1 Offshore Wind Power IPP Project• Formosa 2 Offshore Wind Power IPP Projectnnn

IPP: Independent Power Producer
IWPP: Independent Water and Power Producer
SPP: Small Power Producer* Joined Barossa Gas Project April 2022

Major LNG Suppliers• US• Australia• Indonesia•M alaysia•P apua New Guinea• Qatar• UAE•R
 ussia• Brunei

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Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

List of Group Companies
Consolidated Subsidiaries (As of March 31, 2022)
Name

Location

Amsterdam,
JERA Power International B.V.*
Netherlands

Equity Method Affiliates
Main Business Activities

Name

Location

Main Business Activities

Investment and financing, securities, etc., foroverseas power generation projects

Soma Kyodo Power Company, Ltd.

Soma City,
Fukushima

Thermal power plant operations andmaintenance, electric power sales

Joban Joint Power Co., Ltd.

Chiyoda City,Tokyo

Thermal power plant operations andmaintenance, electric power sales

Aboitiz Power Corporation

Manila,Philippines

Power generation and distribution, retailelectric power sales in the Philippines

Kashima Kyodo Thermal ElectricPower Co., Inc.

Kashima City,
Ibaraki

Thermal power plant operations andmaintenance, electric power sales

Kimitsu Cooperative Thermal Power
Company, Inc

Kimitsu City,
Chiba

Thermal power plant operations andmaintenance, electric power sales

TeaM Energy Corporation

Manila,Philippines

Power generation in the Philippines

Freeport LNG Development, L.P.

Delaware, USA

LNG facilities operations and maintenance,development in the Americas

JERA Asia Pte. Ltd.

Singapore

Development of electricity- and gas-related
projects in Asia

JERA Australia Pty. Ltd.*

Perth, Australia

Fuel business management in Australia

JERA Global Markets Pte. Ltd.* Singapore

Fuel trading and related activities

Tokyo Timor Sea Resources Pty.
Perth, Australia
Ltd*

Investment in gas field development projects in
the Joint Petroleum Development Area
between Australia and Timor-Leste

Hitachinaka Generation Co.,Inc.*

Tokai-mura, Naka-gun,
Thermal power generation and related activities
IbarakiLNG Marine Transport Co., Ltd.

Chiyoda City, Tokyo

Liquefied natural gas marine transport andrelated agency activities

JERA Global Insurance Inc.

Hawaii, USA

Insurance

JERA Power YOKOSUKA LLC

Yokosuka City,
Kanagawa

Thermal power generation and related activities

JERA Power ANEGASAKI LLC

Ichihara City, Chiba

Thermal power generation and related activities

Chita LNG Co., Ltd.

Chita City, Aichi

Services related to the receiving, storage,
regasification, and delivery of liquefied naturalgas

Goi United Generation LLC

Ichihara City, Chiba

Thermal power generation and related activities

JERA Power (Thailand) Co.,Ltd.

Bangkok, Thailand

Power plant operation and engineering services
and financing for these services in Thailand

Nexeraise Co., Ltd.

Koto City, Tokyo

Petroleum product sales, operation andmanagement of thermal power facilities, power
plant disaster prevention and response
operations, etc.

JERA Power TAKETOYO LLC

Taketoyo-cho,
Chita-gun, Aichi

Thermal power generation and related activities

JERA Americas Inc.

Delaware, USA

Management of power generation andactivities, including investing, financing,securities, etc., in the Americas

JERA Americas Holdings Inc.

Delaware, USA

Management of power generation and fuelactivities in the Americas

34 other companies

63 other companies
The five companies marked with an asterisk (*) fall under the category of specified subsidiaries.
Note that of the “63 other companies” not listed above, the following qualify as specified subsidiaries: JERA Trading International Pte.
Ltd., JERA Ichthys Pty. Ltd, JERA Gorgon Pty. Ltd., Tokyo Electric Power Company International B.V., JERA Power Management Asia
B.V., Reliance Bangladesh LNG & Power Ltd., Chubu Electric Power Integra Pty. Ltd., JERA Darwin Investment Pty. Ltd., JERA Darwin
LNG Pty. Ltd., Cygnus LNG Shipping Limited, JERA Storage Investment B.V., Pacific LNG Shipping Limited, Pacific Eurus Shipping
Limited, Tokyo Timor Sea Resources Inc., JERA Global Markets Netherlands B.V., JERA Global Markets North America, LLC, JERA
Global Markets UK Ltd.

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Organizational Chart

Value Creation

Value Creation
Infrastructure

Strategies

Financial andCorporate Information

Corporate Overview(As of July 1, 2022)

Auditor

Auditor’s Section

PresidentInternal Audit Group

Corporate
Name

Planning Division

LNG Contract Management Division

Planning Group
Research GroupLNG Contract Management Group 1
LNG Contract Management Group 2Technology Strategy GroupEnterprise Value Creation Group
Information and Communication
Technology Strategy Group
Information and Communication Technology
Management Group
Financial Strategy and Planning GroupAccounting Group
Finance Group
Structured Finance Group
Human Resources Division
Labor Affairs and Human Resources Group
Global Human Resources Group[Headquarters]
Nihonbashi Takashimaya Mitsui Building 25th Floor, 2-5-1 Nihonbashi, Chuo-ku, Tokyo
103-6125, Japan
TEL: +81-3-3272-4631 (Main) FAX: +81-3-3272-4635

O&M Engineering Division
O&M Engineering Strategy Group
Digital Power Plant Promotion GroupOperation GroupEngineering Group
Domestic Engineering Service Group
Purchasing GroupPower Plants & LNG Centers

JERA Co., Inc.

Locations

Solution Service Group[East Japan Branch]
Hibiya Kokusai Building 9th Floor, 2-2-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo
100-0011, Japan
TEL: +81-3-3272-4631 FAX: +81-3-6363-5781

East Japan Branch[West Japan Branch]
JP TOWER NAGOYA 18th Floor, 1-1-1 Meieki, Nakamura-ku, Nagoya-shi, Aichi
450-6318, Japan
TEL: +81-52-740-6842 FAX: +81-52-740-6841

West Japan Branch

General Affairs Group
Secretariat
Legal Group
Business Management Division
Business Development Strategy Group
Business Management GroupPower Plant Regional Affairs Group
Domestic Business Management &Development Division
Domestic Business Management Group
Domestic Business Development Group
Renewable Energy & Overseas Power
Development Division
Overseas Power & Energy Infrastructure
Business Group
Overseas Offshore Wind Power Business Group
Domestic Offshore Wind Power Business Group
Renewable Energy Business GroupResource Procurement & Investment Division

Incorporated

April 30, 2015

Capital​100 billion yen

Shareholding
Ratio​TEPCO Fuel & Power, Inc.: 50%
Chubu Electric Power Co., Inc.: 50%

Descriptionof Business• Thermal power generation• Renewable energy• Gas and LNG• Engineering, consulting, and other activities related to the above businesses

Number of
Employees

5,062 (As of March 31, 2022)

Fuel Resources Procurement Group
Value Chain Business Group
Optimization Division
Optimization Strategy Group
Short-Term Optimization Group
Coal, Oil & Biomass Fuel Group
Fuel Operation Management GroupPower Operation Management Group
Energy Solutions Division
Energy Solutions GroupJERA GROUP CORPORATE COMMUNICATION BOOK 2022

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Value Creation
Infrastructure

Strategies

Shinagawa Thermal Power Station

Financial andCorporate Information

Taiwan: Formosa Offshore Wind Power IPP Project© Formosa I Wind Power Co., Ltd. All rights reserved.

Joetsu Thermal Power Station

Kawagoe Thermal Power Station

Australia: Wheatstone LNG Project

US: Cricket Valley Gas Thermal IPP Projectprovided by Chevron Australia

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The future belongs to the challengers, the ones who dare to
dream in the face of adversity.
Athletes challenge the limits of possibility andinspire us to do the same.
At JERA, we dare to dream.
As Japan’s largest power company, we are committed to having
a global impact across a range of businesses.
We believe in meeting the challenge of net-zero carbon head on.
“JERA Zero CO2 Emissions 2050”
is our game plan for a brighter future.
One run can change the course of the game.
And JERA is stepping up to the plate with the scale, skills, ideas,
and innovations needed to hit the ball out of the park.
Energy and baseball. Together, we can drive sports and culture
forward into a new era.

JERA is a proud partner of the Central League.

JERA Co., Inc.

Nihonbashi Takashimaya Mitsui Building 25th Floor
2-5-1 Nihonbashi, Chuo-ku, Tokyo 103-6125, Japan
TEL: +81-3-3272-4631 FAX: +81-3-3272-4635
www.jera.co.jp

We identify with Nippon Professional Baseball’s mission to promote sports in Japan through baseball and thereby
contribute to domestic welfare and international goodwill.