JERA GROUP CORPORATECOMMUNICATION BOOK 2020

From Japan to the worldJAPAN’S ENERGY FOR A NEW ERAJERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Value Creation

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Foundation for Value
Creation: ESG

Corporate Information

Ta k i n g E n e r g y i n t o a N e w E r a
MissionVisionTo provide cutting edge solutions
to the world’s energy issues

Global leader in LNG andrenewables, sparking the transition
to a clean energy economy

Through our global operations we bring the world’s leading energy solutions to

As we look toward 2025, the energy solutions we offer will focus mainly on

Japan, helping to solve the energy issues facing the country. We seek to establish

two businesses: the LNG value chain business and the large-scale renewable

new energy supply models for Japan while also offering energy supply models

energy business.

established in Japan to other countries that face similar energy issues, helping to

These businesses are complementary; renewable energy with variable powersolve the world’s energy issues.

generation output is complemented by flexible, clean LNG thermal power
generation. With demand expected to grow globally, particularly in Asia, we
aim to become a leader in these two businesses.

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JERA GROUPCORPORATE COMMUNICATION BOOK 2020

Contents

Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG

Corporate Information

2

1 Mission & Vision
2 Contents / Editorial Policy

Value Creation

3 JERA’s Origins

12 Value Creation Process

4 JERA’s Business Model
5 Message from the Chairman

13 JERA’s Priority Issues (Materialities)
15 Financial and Non-Financial Highlights

Foundation for
Value Creation

27 JERA’s ESG

41 Human Resources

28 Corporate Governance

42 Diversity & Inclusion

7 Message from the President
9 JERA Zero CO2 Emissions 2050:

SpecialFeaturethe challenge of achieving, by 2050, virtually zero CO2 emissions from JERA’s operationsin Japan and overseas.

30 Directors & Officers

43 Human Development

31 Compliance

44 Work Style Reform

33 Risk Management
35 Measures to Prevent the Spread

45 Safety and Healthof the Novel Coronavirus

10 JERA Zero CO2 Emissions 2050 Roadmap for its Business in Japan
11 Initiatives to Manufacture, Transport, and Institutionalize Green Fuels

S: Society

G: Governance

36 Digital Transformation (DX)
E: Environment

47 Coexisting with Local Communities
49 Stakeholder Engagement
50 Communication with Employees

37 Environmental Management
40 Environmental Data
Strategies

17 Business Environment Awarenessand Response
18 Business Strategies

19 Establishing a Robust Management

21 Business Development Department
23 Optimization Department

Corporate
Information

25 O&M Engineering Department

51 Thermal Power Stations in Japan
52 Overseas Business and LNG Supplying Countries
53 Company Organization / Corporate Outline
54 List of Group Companies

Base to Support Business Strategies

20 Aiming to Maximize Synergy ThroughConsolidation

Editorial
PolicyAbout This Report
The JERA Group completed the consolidation of its value chains in April 2019
after expanding the scope of consolidation four years after its establishment
in April 2015. We are taking this occasion to publish JERA Group Corporate
Communication Book 2020 as a tool for encouraging communication andintroducing our stakeholders to the JERA Group’s efforts to take energy into a
new era.
Our intent with this book was to create a single volume to present information
about the strategies, foundations (ESG), and other efforts to create and realize thevalue of the JERA Group.
We intend to continuously improve this report so that it may serve as a tool for
promoting communication with our stakeholders.
Note that this report was published after being checked by the Sustainability
Promotion Committee, which is under the direct control of the Board of Directors
and is chaired by the company president.

Scope of report/
statistics
Period covered by

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

the report

Fiscal 2019 (April 1, 2019-March 31, 2020)
The report includes some activities from directly after this period.

Publication date

March 2021 (Next publication scheduled for November 2021)

Guidelines forreference◦GRI Sustainability Reporting Standards 2016/2018◦Environmental Reporting Guidelines, 2018 Version by the Ministry of the Environment◦ISO 26000

General Affairs Group, Business Support & Solutions Department, JERA Co., Inc.
25F Nihonbashi Takashimaya Mitsui Building, 2-5-1 Nihonbashi, Chuo-ku,
department/contact
Tokyo, Japan 103-6125
information
Tel: 03-3272-4631 (Main)

Publishing

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Value Creation

Strategies

JERA’s Origins The Path to Business Consolidation
JERA was created by the consolidation of the fuel and thermal power departmentsof the Tokyo Electric Power Company and the Chubu Electric Power Company
with the concurrent aims of creating a global energy corporation capable ofcompeting in the global energy market, providing a stable supply of globallycompetitive energy, and creating corporate value.
JERA Co., Inc. was established on April 30, 2015 to form a comprehensive alliance between Tokyo Electric Power
Company (as it was known then) and Chubu Electric Power Co., Inc. for their entire supply chains from fuel upstream andprocurement business to power generation.
With the aim of becoming a Japan-based global energy company, JERA proceeded to consolidate businesses instages after its establishment, and with the April 1, 2019 consolidation of existing thermal power generation businesses
established a continuous value chain from fuel upstream and procurement business to power generation and electricity
and gas wholesaling, earning its status as an energy company with power generation capacity equivalent to half of Japan’s
thermal power generation output and a fuel transaction volume among the world’s highest.

Completed the consolidation of value chains in April 2019 after expanding the scope of consolidation four years after establishment in April 2015
April 2015
JERA established

October 2015

July 2016

June 2017

May 2018

April 2019

Fuel transportation andfuel trading businesses
consolidated

Fuel upstream andprocurement, overseas
power generation, andenergy infrastructurebusinesses consolidated

Joint-venture agreement
concluded to consolidate
existing thermal power
generation businesses

Absorption-type company
split agreement concluded
to consolidate existing
thermal power generation
businesses

Existing thermal power
generation businesses
consolidated

Foundation for Value
Creation: ESG

Corporate Information

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Corporate Information

JERA’s Business Model
Creating a global business entity and enhancing competitiveness with the aim ofachieving a balance between a stable, economical energy supply and improved
corporate value
We own businesses across the entire supply chains for fuel and thermal power, from fuel upstream business (gas field/
coal mine development) to fuel transportation and storage (fuel terminal operation) to power generation and wholesaling.
Thus, we will engage in borderless management of all businesses from fuel procurement to power generation andsales in three profit centers—business development, optimization, and O&M* engineering—to establish a system capableof pursuing expertise and excellence and maximizing synergy in each business.
*O&M: Operation and maintenanceO&M Engineering Department
Optimization
Department

Optimization ofenergy flow

Fuel upstream
development
Fuel procurement

Operation of power
generation-related assets

Optimizationand trading

Receiving andstorage terminals

Fuel transportation

Domestic andoverseas power
generation

Electricity andgas sales

Expansion of asset scale and domain
Business Development Department

Business Development Department

Optimization Department

O&M Engineering Department

Builds an optimal asset portfolio and aims
to increase profits by expanding the scaleand domain of the value chain throughthe development of new businesses andrestructuring of existing assets.

Aims to achieve economically optimal
operation by consolidating and controllingthe entire flow of energy—from fuelprocurement and transportation to power
generation and electricity and gas sales.

Safely, affordably, and flexibly controls
fuel receiving and storage terminals
and thermal power stations.

◦Domestic power generation◦Overseas power generation and value chain
business◦Renewable energy development business◦Fuel upstream, transportation, and long-term
LNG procurement businesses◦Short-term fuel procurement business◦Fuel trading business◦Electricity and gas sales business◦O&M engineering technology◦Rendering O&M engineering services to third
partiesJERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Message from the Chairman
A Global Company Aiming to Earn the Regard of the Global Energy Market
and Be Indispensable to the People of the WorldOur company was established in April 2015 with the aim of creating a globally competitive energy company inJapan based on a comprehensive alliance between Tokyo Electric Power Company and Chubu Electric Power
Company. Since then, we have consolidated businesses in stages, and completed the process in April 2019with the consolidation of existing thermal power generation businesses. At that point, we established a unified,continuous value chain from fuel upstream and procurement business to power generation and electricity andgas sales, earning our status as an energy company with power generation capacity equivalent to half of Japan’s
thermal power generation output and a fuel transaction volume among the world’s highest.
On the occasion of the complete consolidation, we set out a mission and vision to clarify the purpose of ourexistence in society.

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

VisionGlobal leader in LNG and renewables,
sparking the transition to a clean energy economy
Our mission and vision represent our social responsibility as an energy company tasked with supporting
industry and prosperous lifestyles, as well as our promise to grow continuously with society and our stakeholders.
With the completion of our consolidation of fuel and thermal businesses, fiscal 2019 marked our start in thetruest sense of the word.
However, this was only the first step on our bold and demanding journey—the real challenges lie ahead.
The world faces an enormous task in addressing climate change and other environmental issues, while also
contending with the need to provide all people access to reliable and affordable energy. To address this challenge,
we need to provide optimal solutions to energy issues.
We will pool our efforts as a company to resolve these issues to contribute to the development of a sustainable
society, and improve our corporate value in an effort to become a global company that is worthy of the regard of
the global energy market and indispensable to the people of the world.

ChairmanToshihiro SanoJERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Message from the Chairman

Strengthening Our Governance System and Organizational
Structure to Become a More Borderless Company
We believe continuously strengthening our governance system is crucial in our endeavor to growas a global company. Toward that end and with regard to our management system, since April
2019, we have invited people with abundant knowledge and experience from outside the company(including non-Japanese people) to serve as directors in an effort to ensure the diversity of our
Board of Directors. We have also made efforts to enhance deliberation of management issues by
the Board of Directors by hosting Directors’ Discussions, a new type of event for promoting fulland frank discussion between directors and the effective use of knowledge from outside directors.
For our organizational structure, we established a system with three business departments
to enable us to maximize the synergy of each department and respond appropriately to changes
in both the domestic and global environments, and reorganized the corporate departments that
underpin the business departments to enhance cross-organizational coordinating functions,
thereby forming a borderless organization uninhibited by preconceptions.
Some issues came to light as we did this work to continuously strengthen our governancesystem and organizational structure.
In an age of VUCA*, we believe we must extend our pursuit of diversity in order to expand ourcompany and further promote our transition to a global company. Accordingly, in October 2020,
we formulated a commitment for rigorously promoting diversity and inclusion. We will make efforts
to leverage the special qualities of each and every one of our human resources—the company’s
most valuable business resource—and help them grow individually. As a starting point, I am wellaware of the troubling reality that there are still too few women in decision-making roles, and intend
to promote active participation by women at all levels in an effort to become a global organization
where women can exhibit their skills and flourish more than ever before. Additionally, in pursuitof ensuring the diversity of our Board of Directors, I have created a matrix of the expertise, skills,
and other attributes of the directors, and am using it to investigate areas for reinforcement while
comparing it against the company’s medium-term and long-term strategies.
We intend to continue our efforts to improve and strengthen our corporate governance system
based on the Corporate Governance Guidelines we established in October 2019.
* VUCA: An abbreviation of four key words—volatility, uncertainty, complexity, and ambiguity

Aiming for True Fusion Toward Maximizing Synergy ThroughBusiness Consolidation
Our company inherited many assets and human resources from Tokyo Electric Power Company
and Chubu Electric Power Company. The major differentiator that gives us a strong competitive
position is the fact that we can create business value while exhibiting the independence of eachprocess in our continuous value chain. Unification—the removal of the barriers that divide us—iscritical to leveraging this business model and our valuable assets as well as maximizing synergy
through business consolidation.
We have smoothly and steadily consolidated places of business, rules, and more during ourconsolidation of various businesses since our establishment in 2015. However, we have not been
striving for unification in the truest sense of the word. The unification I wish to aim for is a fusionof our corporate culture, customs, and values—in other words, a true fusion of our employees’
awareness. It may not be easy to create a blend of the corporate cultures and values of two
companies that developed differently throughout their long histories. However, achieving a true
fusion is the only way to become the kind of global leader we want to become.
How do we achieve a true fusion of our employees’ awareness? We make decisions and takeaction based on the company’s mission and vision. We tend to use the technology and expertisedeveloped by each of the companies as our basis for making decisions and taking action. I do notintend to denounce that approach, because there is nothing wrong with such an approach afterdue consideration. However, it is not as simple as adding the best practices of each and dividing
by two. We are aiming to assume a substantial presence and create new value by succeeding in
the competitive global environment. To be among the best in the world, we must break free fromoutdated values and stereotypes, question our existing concepts of normal when appropriate, andcarefully consider optimal solutions. We will make efforts to ensure that this mindset takes holdand endures in our employees to achieve the true fusion I described earlier, and continue seeking
to maximize synergy through business consolidation.

Providing Optimal Solutions for the World’s Energy Issues
The energy business continues to undergo significant environmental changes as awareness ofenvironmental issues increases in Japan and throughout the world. For example, we are seeing aworldwide movement toward decarbonization. Amid thesecircumstances, in October 2020, we announced JERA
Zero Emissions 2050. Our goal to achieve zero actual CO2
emissions from our businesses inside and outside Japanby 2050 is totally consistent with our efforts to achieve our
mission and vision.
Although there are many hurdles to clear with existing
technology, we have a strong sense of duty and are well
prepared to come together as a company to achieve zero
emissions.
We intend to proactively contribute to the resolution of
the world’s energy issues and social issues as well as theachievement of sustainable development goals (SDGs) inways that only JERA can while maintaining Japan’s energy
supply under any and all circumstances. You can expect
JERA to continue to rise to the challenge.

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Message from the President
Spearheading the Realization of a Low-Carbon Society as a Global
Leader Laying the Foundation for the Future of Energy
Our formation of a continuous value chain from fuel upstream and procurement to power generationand electricity and gas wholesaling on the strength of our completed consolidation in April 2019 vastly
expanded our business scale and domains. Concurrently, we received a sobering reminder of the weightof our social responsibility due to the increased impact of our business activities on society and our
stakeholders.
I believe that our social responsibility is to resolutely confront the needs of individuals, society, andthe planet. In other words, I think we are responsible for responding to the demands and expectations of
our stakeholders—namely, our customers, business partners, local communities, and employees—whileworking together with them to pursue sustainability.
However, threats to sustainability are described in SDGs as well as other places. Specifically, climatechange is a priority issue against which we are expected to undertake concrete measures.
As Japan’s largest power company, we realize that we are in a position to proactively lead the way
toward achieving a low-carbon society. Accordingly, in October 2020, we formulated JERA Zero Emissions
2050 to clarify our long-term vision.

Three Approaches of JERA Zero CO2 Emissions 2050
1. Complementarity between Renewable Energy and Zero CO2 Emission Thermal Power Generation
2. Establishment of Roadmaps Suitable for Each Country and Region
3. Smart Transition
Our first initiative to show the way toward zero emissions was to develop a roadmap for Japan.
The roadmap sets out new environmental targets to achieve by 2030, including suspending anddecommissioning all inefficient coal-fired power stations (up to and including supercritical). We plan todevelop roadmaps suited to the circumstances in individual countries and regions to guide our efforts inthe future.
Realizing a low-carbon society is a challenge shared by all of humanity. As a global company committed
to resolving the world’s energy issues, we will spearhead the realization of a low-carbon society.

President

Satoshi Onoda

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Message from the President

Establishing an Unshakable Management Base to WithstandChanges in the Business Environment
In order to achieve our mission and vision, and in line with the business plan we formulated in
April 2019 to reflect changes in the domestic and international business environment and ourconsolidation of existing thermal power generation business, we are currently aiming to promote
the following six measures and achieve targets of consolidated net income of approximately 100
billion yen from fiscal 2019 to fiscal 2021 and at least 200 billion yen by fiscal 2025.*❶Strengthen domestic power source portfolio through replacement of existing power stations❷Gas-to-power business for integrated provision of LNG and power generation (LNG sales channel expansion)❸Securing flexible LNG supply sources❹Expansion of trading business scope and opportunities❺Introducing the JERA O&M Way to all JERA thermal power stations to achieve mobility and agility and improve operational efficiency❻Developing large-scale renewable energy (offshore wind power)

For domestic power generation business, we are aiming to expand profits by strengthening ourpower supply portfolio through replacements to boost efficiency, in addition to leveraging AI, IoT, andother digital technology to hone our O&M methods and continuing Kaizen (constant improvement) efforts.
For overseas and fuel businesses, we are expanding our domestic and international power
generation business to maintain and expand the scale of our fuel procurement, and striving to improve
profitability throughout the entire value chain by reinforcing our trading power and through upstream
business participation. For renewable energy, we will leverage the large-scale business development
capacity we have cultivated in existing business to promote development centered on offshore wind
power, and take steps to expand renewables as a main pillar of our future business portfolio.
Through the systematic implementation of these initiatives, we will accelerate the shift in ourbusiness portfolio—from the present 6:2:2 ratio of domestic power generation business to overseas
power generation business to fuel business, to a ratio of 4:3:3 by fiscal 2025—and establish an
unshakable management base to withstand changes in the business environment.
Although our targets were within sight in fiscal 2019—the first year of the plan—the novel
coronavirus pandemic and other developments caused electricity demand to decline, and we
missed our targets by the narrowest of margins. Nonetheless, we intend to seek maximizationof synergy through consolidation with greater intensity in an effort to achieve our business plan.
*Both figures exclude the impact of time lags in fuel costs and fuel cost adjustments

Sustaining a Stable Supply of Energy Under Any and All Circumstances
One of our key management issues is responding to the novel coronavirus pandemic that could
persist for some time to come. With nearly half of the thermal power stations in Japan, we
shoulder the important responsibility of continuously providing a stable supply of energy even as
the pandemic continues. Therefore, after fulfilling our priority to ensure the health and safety of

our employees, we are undertaking measures to prevent the onset and spread of infections thatare tailored to the status of the pandemic at each place of business and for each function, anddiverting our resources to operations that are truly necessary for sustaining our business. Outsideof Japan as well, we provided medical supplies for fighting the novel coronavirus in response to arequest from our partner company in Bangladesh, Summit Power International Limited. We intend
to continue fulfilling our responsibility as a company developing business throughout the world.

Working as One Team, JERA will Become Truly Indispensable to Society
As a global company, our responsibility is to contribute to communities all over the world throughour business.
Many of the world’s communities are still not electrified, and many countries and regions are inneed of power generation facilities.
I do not think it is enough to simply provide electricity to these countries and regions. The
process of making power generation facilities creates jobs and develops people through thetransfer of technology and expertise. Furthermore, these benefits are springboards of growth anddevelopment for industries, communities, and societies. Contributing to society in the truest senseis working together as One Team at JERA with a heartfelt desire for the continued prosperity andhappiness of these countries and regions and the people who live there. This is because accessto affordable and clean energy—one of the SDGs—leads to the achievement of other targets. As acompany responsible for the underlying infrastructure, we feel gratified and motivated by this fact;
our stakeholders’ happiness is the driving force—the energy—of our further growth.
I aim to create a corporate culture in which our employees—with their hopes and dreams
for the future—feel pride and appreciation for having worked at JERA so that we may become acompany that is truly indispensable to society.

Contributing to the Formation of a Sustainable Society Throughthe Achievement of Our Mission and Vision
We will humbly and openly internalize the demands and expectationsof society and our stakeholders, and contribute to the resolutionof social issues and achievement of SDGs. Specifically, we haveidentified priority issues for the company, which we refer to in thisreport as “materialities.” We intend to proactively implement thesepriority issues with the understanding and support of our stakeholders
in an effort to contribute to the formation of a sustainable society
through the achievement of our mission and vision.
We have created this report to introduce our sustainable initiatives
based on these beliefs to our stakeholders and start a dialogue that
results in improvements. In that spirit, we welcome your candid
thoughts and feelings.

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Special Feature

JERA Zero CO2 Emissions 2050: the challenge of achieving, by 2050, virtually zero CO emissions from JERA’s operations in Japan and overseas.
2

JERA Zero CO2 Emissions 2050
JERA’s mission is to provide cutting edge solutions to the world’s energy issues.
To contribute to the realization of a sustainable society, we will take on the challenge of achieving,by 2050, virtually zero CO2 emissions from JERA’s operations in Japan and overseas.*

Three Approaches of JERA Zero CO2 Emissions 2050

1
2
3

Complementarity between Renewable Energy and Zero CO2 Emission Thermal Power Generation
JERA will achieve Zero CO2 emissions through a combination of renewable energy and zero CO2emission thermal power generation. The adoption of renewable energy is supported by thermal
power generation capable of generating electricity regardless of natural conditions. JERA will
promote the adoption of greener fuels and pursue thermal power that does not emit CO2 during
power generation.

Establishment of Roadmaps Suitable for Each Country and Region
Zero CO2 emissions will be achieved by establishing roadmaps that show optimal solutions foreach country and region. Since the energy situation is different for each country and region-suchas the presence of regional transmission lines or pipelines and the types of renewable energy that
could be adopted-JERA will work with stakeholders on a country and regional basis to establish
roadmaps. We have developed a roadmap for our business in Japan and will extend this approachto other countries and regions.

Smart Transitions
Zero CO2 emissions will be achieved through a combination of technologies that are available
and reliable at the time adoption decisions are made, lowering technical risk and smoothing thetransition to a green society.

Senior Operating Officer’s Message

Leading the Decarbonization Effort in the Energy
Industry
As a global company committed to resolving the world’s energy issues, JERA
considers measures to counteract global warming to be the highest-priority
management issues.
Since determining environmental targets to coincide with our complete
consolidation in April 2019, we have made efforts to reduce CO2 emissions asJapan’s largest power generation utility; in October 2020, to further accelerate
our efforts to date and clarify our long-term vision for the company, we
published JERA Zero CO2 Emissions 2050.
JERA Zero CO2 Emissions 2050 challenges us to achieve effectively zeroCO2 emissions from our domestic and international businesses by 2050, andwe have adopted a three-pronged approach toward achieving this goal.
The first step is to develop “JERA Zero CO2 Emissions 2050: Roadmap forJapan” to illustrate the path toward zero emissions in domestic business, andwe have established “JERA Environmental Commitments 2030” to serve as
new environmental targets to achieve by 2030 toward that end.
Although there remain many issues to be resolved under current technology
in order to realize “JERA Zero CO2 Emissions 2050”, JERA will continue its
own active efforts to develop decarbonization technologies by leveraging thestrengths of—and our long-standing involvement in—the value chain from the
upstream sector of the fuel industry to power generation.
Realizing a low-carbon society is a challengeshared by all of humanity.
It is something we need to achieve for theearth, for society, and for each of us as individuals.
JERA intends to continue working together
with stakeholders and affiliated organizations andgroups to propose new ways to supply energy,
and to lead the effort toward decarbonization in
the energy industry.
Managing Executive Officer, Director
Chief Operating Officer, Corporate Strategy Department* JERA Zero Emissions 2050 is premised on the continual development of decarbonization technology, economic rationality, and consistency withgovernment policy. JERA is developing its own decarbonization technologies and taking the initiative to ensure economic rationality.

Hisahide Okuda

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Special Feature

JERA Zero CO2 Emissions 2050 Roadmap for its Business in Japan
By 2030

By 2040

Period of action toward achieving zero emissions
Shut down inefficient
coal power plants
Co-firing withammonia
Co-firing withhydrogen*Zero CO2 emissions thermal power generation

RenewableenergyAchieve a 20% reduction of carbon emission intensity from all thermal power
generation in Japan based on the Japanese government’s Long-Term Energy
Supply and Demand Outlook for fiscal 2030

Proving tests

Period of ambitiously striving to achieve zero emissions

20%

reduction of
CO 2 emission
intensity

By 2030

Shutdown all power plants

Finalize details in light of results ofdemonstration

Resolve technical issues (selection of hydrogen)

Demonstration

Select the technically and economically optimal hydrogen carrier fromamong ammonia, liquefied hydrogen, methylcyclohexane (MCH), etc.

Verify safe operations at actual
power stations

Achieve zero actual
CO 2 emissions fromour businesses

Shutdown all inefficient JERA coal power plants(supercritical or less)

Launch full-scale operation

Conduct proving tests at an actual coal power
plants (Proposed: Hekinan Thermal Power plants)

By 2050

Early 2030s

20% co-firing rate

Achieve a 20% ammonia co-firing
rate at all JERA coal power plants

Increase

the co-firing rate

2030s

Launch full-scale

Zero CO2
emissions2040s

Begin transition to use of 100% ammonia, without

mixing with other fuels, in thermal power generation
Shift to thermal power plants using 100% ammonia as fuel as
power stations are replaced

Increase

the co-firing rate

operation◦Promote development focused on offshore wind power◦Support introduction in the form of storage batteriesThis roadmap will be gradually developed in greater detail based on relevant conditions such as government policies. JERA will revise the roadmap when relevant conditions change significantly.
* The use of CO2 -free LNG is also being considered.

By 2050, CO2 emitted from power plants using
fossil fuels is offset using offset technology or by
CO2 -free LNG

JERA Environmental Target 2030 for its Business in JapanJERA is actively working to reduce CO2 emissions. In its domestic operations, JERA will achieve the following by FY2030:
Shut down all inefficient (supercritical or less) coal power plants 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 FY 2030 as set by the government.
* JERA Zero CO2 Emissions 2050 Roadmap for its Business in Japan and JERA Environmental Target 2030 are premised on the continual development of decarbonization technology, economic rationality, and consistency with government policy. JERA is continuing
to develop decarbonization technology, and is taking the initiative to ensure economic rationality.

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Special Feature

Initiatives to Manufacture, Transport, and Institutionalize Green Fuels
JERA is actively involved in business throughout the value chain from the upstream development, transportation, and storage of fuel to the generation and sale of electricity.
We intend to leverage these advantages to begin establishing entire supply chains for green fuel, and will consider expanding our business domains with our sights set on endeavors such as sellinggreen fuel not only for electricity but for other uses such as transportation.

■ Value Chains Owned by JERA
Fuel upstream development

Fuel transportation and storage

Fuel upstream development and fuel procurement

Fuel transportation

Power generation and sales

Fuel storage and gasification

Power generation

Electricity
sales

Renewable energy development■ Ammonia Supply Chain
CO2

Blue ammonia(derived from fossil fuels)

Expansion into other industries
Fuel cells
CCUS1/EOR 2
and forest planting

Expansion into other countries
Industrial furnaces

HydrogenNatural gas

Reforming

JERA

Ammonium synthesis

StorageMarinetransport

Unloading andstorage

Gasification orhydrogenation

Zero-emission thermal power

Ammonia
Renewable energy

Electrolysis

Ship fuelGreen ammonia(derived from renewable energy)1

CCUS: Carbon dioxide Capture, Utilization, and Storage

2

EOR: Enhanced Oil Recovery

Other power
producers

Automobile fuel

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VisionValue Creation Process
JERA will maximize the value we provide to society and our stakeholders throughbusiness activities based on our mission in an effort to improve our corporate
value and achieve our vision.
We will also ensure that our business strategies include priority issues that
account for changes in the business environment and the demands of society
and our stakeholders, thereby contributing to the achievement of SDGs.

Become a global leader in LNG andrenewable energy to lead the way to Global
leader in LNG and renewables, sparking thetransition to a clean energy economy

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

Achieve Vision

Changes in the businessenvironment

Strategies for JERA’s business activities (p. 21-26)◦Escalation of climate change

Enhance the LNG value chain

Provide value
Realization of low-carbon
society◦Increased demand for energy
in Asia

Development of
renewable energy◦Exit from coal/gas shift◦Innovations in renewableenergy◦Increased competition inelectricity and gas sales

Upstream development
Fuel procurement

Fuel transportation

Receiving andstorage terminals

Power generation◦Appearance of completely
new risks◦Expansion of digitalization◦Increase of power gridinstability (expansion ofrenewable energy)

JERA’s strengths
LNG transaction volume among the largest in the world/stable procurement capacity
Upstream investment projects:

513

LNG procurement from:countries 1

LNG fleet carriers:

20
6.65

LNG tank capacity in Japan:

LNG transaction volume (annual):Approximately

36

LNG receiving terminals in Japan:

11

2

million t 1

Power generation capacity/power generation output among the largest in Japan
Domestic
power
generation

million kL 2

Equivalent to approximately 30%
of LNG tank capacity in Japan◦Steps toward zero-emission
thermal power

Overseas
power
generation

Thermal power

Power generation capacity:

stations:

70

27

3

million kW 3

Fiscal 2019

Includes capacity under construction

2

Includes jointly operated terminals
4

Fiscal 2019 (Japan)

265billion kWh

4

In more thanPower generation capacity:

Renewables development capacity

Approximately

Approximately

million kW 3
(Development output)

million kW 3
(Included in the figure for power
generation capacity)

9.2

countries

Resolving social issues/contributing to the achievement of SDGs
Note: All figures as of October 31, 2020 unless noted below

Power generation output:

Among the largest in Japan

Projects:

30
10Approximately

JERA’s priority issues (p. 13-14)

3Electricity and gas
sales

Stable supply of energy

Optimization and trading◦Market creation, introductionof systems

1

12

Corporate Information

1.3

Reducing the burden on
the global environment
Development of local
communities/industries
Active involvement/
cultivation of diverse
human resources
Promotion of work stylereformJERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Corporate Information

JERA’s Priority Issues: Materialities Process of Identifying Materialities
With the adoption of sustainable development goals (SDGs) and the Paris Agreement in 2015, the global community has recognized an urgent need to work together to achieve sustainable societies.
In order to sustain growth while adapting flexibly to changes in the business environment amid the increasing uncertainty of the modern world, it is important to fully understand and manage the impactof the external environment on our company and the effects of our business activities on stakeholders and society. We have identified priority issues that we need to address – which we call “materialities”– in an effort to achieve the concurrent aims of resolving society’s issues and improving our corporate value over the medium and long term.

Process of Identifying Materialities
STEP

1

STEP

Identify issues

2

STEP

Assess the significance of the issues

3

STEP

4

Assess relevance

Identify materialities

Identify the effects of our business onsociety, and phenomena and social issues
that impact our creation of corporate value
over the medium and long term.

Assess the significance of the impacts of the 59
issues from Step 1 on stakeholders and societyon the one hand, and on the company on theother.

Determine the relevance of the first draft of the materiality matrix
from Step 2 in terms of company strategies and stakeholder
perspectives, and create the final draft of materialities.

Regarding the final draft of materialities from Step
3, obtain approval from the Sustainability Promotion
Committee (chaired by the company president).

We analyzed the external environment, ourbusiness strategies, and other factors to createa list of 59 issues relevant to our company.

Departments involved in the 59 issues from
Step 1 used a scatter plot with stakeholders andsociety on one axis and the company on the otherto assess the respective significance of eachissue (positive and negative impacts, etc.). They
used their assessment to create a first draft of amateriality matrix and select priority issues.

With regard to the first draft of the materiality matrix from Step 2,
involved departments revisit topics such as the company’s mission,
vision, and business strategies as well as stakeholder needs
and probability of issue occurrence, and exchange opinions withoutside consultants to incorporate the views of third parties into theinvestigation of relevance.

Regarding the final draft of materialities from Step 3, alongwith the materiality identification process, in accordancewith the company’s established approval process with acommittee of department heads and the Sustainability
Promotion Committee, identify priority issues to berecognized as materialities.

External environmentand social issues

Relevance to business

E
S
G

59 issues

Important points in the process of creating the final draftof materialities
High

Priority issues

Significance to JERAHigh

◦Conduct comparative verification of the materiality identification
results of benchmark companies and the key indicators of SASB
and ESG rating agencies in our sectors.
◦Exchange opinions with involved departments regarding thepresent state and management level of initiatives for eachissue as well as their coherence with business strategies, andrelevance in terms of significance (include the probability of risk
occurrence in considerations).
◦Exchange opinions with outside consultants regarding coherence
and relevance between issues.
◦Create a second draft of a materiality matrix that reflects this process.
◦Select the issues recognized as most important for taking action
from the second draft of the materiality matrix with sights set on
the need for policy formulation after priority issue identification,
setting up targets (including KPI), and monitoring methods, andcreate the final draft of materialities.

Significance to stakeholders◦Mission and vision◦Business strategies◦Policies

Significance to stakeholders
and society◦SSDGs◦ISO 26000◦GRI standards◦SASB◦ESG rating agencies◦Benchmark studies

A: Issuesrecognized as
mostimportant

B: Issues recognized
as important

C: Issues to be aware of

Significance to JERAJERA GROUPCORPORATE COMMUNICATION BOOK 2020

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14

JERA’s Materialities Relationship Between Materiality Identification Results and SDGs
We will make efforts to instill the identified materialities throughout our company, incorporate the materialities into our business strategies and formulate targets and KPI* for each issue, andalso to contribute to the achievement of SDGs through our initiatives.
Note that we use this book to report the results of our initiatives and issues therein.
* KPI: Key performance indicator

MissionVisionTo provide cutting edge solutions to
the world’s energy issues

Global leader in LNG andrenewables, sparking the transition
to a clean energy economy

Environment

Human Resources

Society◦Decarbonization/expansion of renewable energy◦Management of employee health and workplace safety and sanitation◦Energy supplied in pursuit of customer satisfaction◦Improved efficiency of thermal power generation◦Securing and developing global, strategic human resources◦Leveraging our technology to make contributions in various fields◦Compliance with environmental legislation◦Respect for diversity◦Securing and developing skilled workers◦Promotion of work-life balance◦Application of digital technology◦Communication with local communities◦Improvement of energy infrastructure in developing
countries

Human Rights◦Consideration of the human rights of local community members

Governance◦Enhancement of corporate governance◦Risk identification, management, andresponse◦Strengthening of earning power◦Stable supply of electricity◦Safety of facilities (process safety, disasterprevention and response measures)◦Response to large-scale disasters and pandemics◦Rigorous compliance◦Bilateral communication withstakeholders

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Corporate Information

Financial and Non-Financial Highlights
FY2019 Financial Outlook
Our financial position in fiscal 2019 was significantly different
from the previous fiscal year as a result of the consolidation ofexisting thermal power generation businesses on April 1, 2019.
We posted net sales of 3.28 trillion yen, a 499.2 billionyen increase from the previous period. Net income attributableto owners of the parent was 168.5 billion yen, a 145.9 billionyen increase from the previous period due to factors such as
time lags in fuel cost adjustments and extraordinary profits
associated with the selloff of overseas power generation
projects. If the amount resulting from time lags in fuel costadjustments are excluded, net income was approximately 90
billion yen, which is around the same level as the 100 billionyen income and expenditure level announced in April 2019.
From last year to this year, our total assets increased
2.7778 trillion yen to 4.0353 trillion yen, and our net assets
increased 988 billion yen to 1.6012 trillion yen; accordingly, ourequity to asset ratio is 38.2%.
Revenue from cash flows from operating activities was
551.6 billion yen, a 538.5 billion-yen increase from the previous
period due to factors such as increased revenue from domestic
thermal power and gas business. Expenditures from cash
flows from investing activities were 310.8 billion yen, a 177.7
billion-yen increase from the previous period due to factors
such as increased expenditures from our acquisition of fixed
assets.

Net sales (billion yen)

Ordinary Income/Net Income
Attributable to Owners of the Parent

Return on equity (ROE) (%)(billion yen)■Ordinary income■Net income attributable to owners of the parent

3,280.0

16.0

174.4 168.5

2,780.7
2,235.1

7.4
52.6

2017

2018

2019

(Fiscal year)
Existing thermal power generation
businesses consolidated

4.1
38.9

34.1

2017

22.5

2018

2019

(Fiscal year)
Existing thermal power generation
businesses consolidated

2017

2018

2019

(Fiscal year)
Existing thermal power generation
businesses consolidated

Total Assets/Net Assets (billion yen)/
Equity-to-Asset Ratio (%)

Interest-Bearing Liabilities (billion yen)/
Net Debt-to-Equity (D/E) Ratio

Cash Flows from Operating,
Investing, and Financing Activities(CF)/Free Cash Flow (billion yen)

■Total assets ■Net assets■Interest-bearing liabilities■Operating CF ■Investing CF ■Financing CF
Free cash flow

Equity-to-Asset Ratio

49.8
45.0

Net D/E ratio

551.6

0.68

4,035.3

1,505.9

38.2

240.8
169.8
–14.4

1,257.4
1,089.1
613.1
580.1
2017

2018

1,601.2
217.3
2019(Fiscal year)
Existing thermal power generation
businesses consolidated

2017

–0.24

–77.0
-133.0–91.5–119.9

357.8
0.05
2018

13.1

143.3

–310.82019(Fiscal year)
Existing thermal power generation
businesses consolidated

2017

2018

–452.02019(Fiscal year)
Existing thermal power
generation businesses consolidated

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

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16

Financial and Non-Financial Highlights
Senior Operating Officer’s Message

FY2019Domestic power generation output
by type of fuel (Unit: Billion kWh)FY2019 Act on the Rational Use of Energy
Thermal power generation efficiency
benchmark indices

Equity ownership in renewableenergy output (Unit: Million kW)

Petroleum1.3 (0.5%)

Coal

48.4

Total

(18%)

265.3

Index A

Approximately

1.002
Index Bbillion kWh

46.8

LNG

Standard to achieve:
At least

1.00

Approximately

1.1

2018

2019

0.9

Standard to achieve:%

At least

44.3

215.6

%
End of( fiscalyear )(81%)

Note: Total power generation output in Japan:
863.2 billion kWh

FY2019 CO2 emissions (Unit: Million t-CO )/CO2 emission intensity in Japan (kg-CO /kWh)22Overseas
power
generation

FY2019 Number of industrial accidents
Number of fatal industrial accidents

Upstream/fueltransportation

0.54 (0.3%)

22.1
(14%)

FY2019Number of outside directors

Total

161.65

Outside directors:

4

million t-CO 2

CO 2 emission
intensity of domestic
power generation

0.492

out of

10

Domestic
power
generation

139.01(86%)

kg-CO 2/kWh

Note: FY2018 total emission intensity of thermal
power generation in Japan: 0.569 kg-CO2/kWh

Two were employees ofshareholder companies before
they became directors, andtwo came from elsewhere

Aiming for Sustainable Improvement ofCorporate Value
The scale of JERA’s assets and profits increased substantiallycompared to the previous fiscal year thanks to the consolidationof existing thermal power generation utilities in April 2019. Fiscal
2019 is regarded as a healthy start to the post-consolidation
period on the strength of profits secured largely according to plan
as well as financial health ensured alongside steady investment in
future growth.
With developments such as the deregulation of electric power
and the transition away from carbon, the business environment ischanging with unprecedented speed. Amid these circumstances,
we are strengthening our renewable energy business and businessfoundation—not only for power generation utilities in Japan but alsoin North America, Asia, Europe, and elsewhere—and must maintaina robust financial base to support that undertaking. The Financeand Accounting Department intends to diversify the company’ssources of funding and seek the optimal capital structure withthe aim of strengthening our balance sheet management, andmaintaining and improving upon our corporate credit rating, which
is currently A, for many years to come. We are also developing andadvancing our financial and accounting systems and improving ourglobal systems for accounting and taxation in an effort to provide
support for management’s swift decision-making.
Furthermore, we will proactively work on ESG issues to satisfy
the expectations of our diverse range of stakeholders and aim forsustainable improvement of corporate value.

Industrial accidents:

7

Fatalities from industrial accidents :0Managing Executive Officer,
Director
Chief Operating Officer, Financeand Accounting Department

Kazuo Sakairi

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Corporate Information

Strategy

Business Environment Awareness and Response
Reorganizing Our Business Model to Respond Properly to Changes in the Domestic and Global Environments

We have organized into three profit centers—Business Development, Optimization, and O&M Engineering, which draw profits from returns on investments, market transactions, and O&M
engineering business, respectively—with the aim of expanding profits by turning changes into business opportunities by securing and strengthening excellent skills for responding to environmental
changes for each function.

Present

Changes in the business environment

Response to changes

Business Development function◦Increased demand for energy
in Asia◦Exit from coal/gas shift◦Innovations in energy technology

Expand value chain business in each country◦Increased competition inelectricity and gas sales◦Market creation, introduction of systems◦Appearance of completely new risks

Enhance thermal power generation and fuel utilization capacity◦Expansion of digitalization◦Increased grid instability(expansion of renewables)◦Steps toward zero-emission thermal power

Remote monitoring and predictive management

Worldwide power generation assets: 80 GW
Knowledge of LNG carriers and fuel upstream
business

Optimization function

A trader that is one of the world’s
largest fuel purchasers, and one ofJapan’s largest power producers

O&M Engineering function

Provider of O&M engineering servicesof 70 GW in Japan

Highly efficient gas thermal construction
Large-scale renewable energy development

Leverage global market trading
Find new customers

Improve agility in response to varianceInternalize decarbonization technology

Roles of each department

Skills to acquire

Construct new power stations, replace
existing power stations, and restructurewith the aim of achieving an optimal
asset portfolio and expanding profits.

◦Capacity to form and develop
new projects in each country(Example: Gas-to-power/renewables)◦Asset portfolio optimization

Optimize the entire value chain from fuelprocurement to power and gas sales
with the aim of expanding opportunities
for profit and maximizing spreads.

◦Market intelligence◦Risk control capacity

Implement flexible operations and reduce costs
in facility operation and maintenance with theaim of achieving high added value in O&M
engineering services and expanding profits.

◦Big data management◦Advanced user technology

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Photo by Ørsted

Business Strategies Execution of Six Measures to Achieve Our Mission and Vision
We are systematically executing six measures to achieve our mission and vision.
We will maintain and expand the scale of LNG procurement through streamlining and replacement in domestic power generation, and through expansion in overseas
power generation.
Additionally, we aim to connect the procurement scale to trading expansion and upstream business participation in an effort to improve the profitability of entire value chains.
We intend to grow renewable energy as a main pillar of our future business portfolio by using our large-scale business development capacity cultivated through existing
business to promote development in offshore wind power and other areas.
2025 Targets**Targets in the business plan published in April 2019

Optimization
Department

Resource and electricity
trading and market creation

O&M Engineering
Department

World-class agility andoperation efficiency

2

Gas-to-power (LNG commercial flow expansion)

Excellence of LNG value chainsand large-scale renewableenergy development

1

Strengthening of domestic power supply portfolio throughreplacements (LNG thermal power)

Business Development
Department

36Flexible supply
sources(LNG securement)

Large-scale
renewable energy(offshore wind power)

4

Expansion of trading business scope andopportunities

5

Introducing JERA O&M Way to
all JERA thermal power stations toachieve mobility and agility and improve
operational efficiency◦Develop domestic replacement: 7-9GW (5 to 7 sites)◦Win Gas to Power projects◦LNG carriers: Approximately 25◦Equity ownership in renewable energy output: 5 GW

◦LNG transaction volume: Approximately 35 million tons
◦Optimization through the effective use of LNG carriers◦Profits from trading◦Power station operation and maintenance: Equivalent to 80 GW worldwide◦20% reduction of O&M engineering expenditures(compared to pre-consolidation figures of TEPCO/Chubu Electric Power)◦50% reduction of periodic inspection duration
Organization and management that promotes achievement of One Global JERA

Consolidated
net income:200
billion yen

Financialstrength rating:A-gradeor higher

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Establishing a Robust Management Base to Support Business Strategies
Our systematic execution of the six measures to achieve our mission and vision depends on the underlying organizational structure that supports business strategies toward those ends.
We are aiming to increase the efficiency of our business overall and improve our corporate value on the strength of our Corporate Strategy, Finance and Accounting, and Business Support &Solutions Departments, which support the activities of our three profit centers in addition to underpinning centralized, optimal management of entire supply chains.

Business Development

Corporate Strategy (including ICT departments)
Strengthening of our managementbase through the companywide pursuitof optimized business resources andestablishment of organizational andgovernance systems

Strengthening of our management basethrough the establishment of organizationaland governance systems that contribute to
the planning of optimal business resource
allocation and swift, appropriate decisionmaking for realizing business strategies

Establishment of an ICT base, useof management data, and promotionof digital transformation to create
the strategic value available fromdigitalization

Optimization

Finance and Accounting
Provision of optimal finance andaccounting services and strengthening ofcorporate governance in terms of finances

Enhancement of management information
through scrupulous operation and control
of accountability and accounting systems
for each business department in order toprovide support for management’s swift
decision-making

Strengthening balance sheet
management through diversification of
the company’s sources of funding andseeking the optimal capital structure inorder to establish and maintain a robust
financial base

O&M Engineering

Business Support & Solutions
Establishment of a business foundationthat contributes to the demonstrationof advanced expertise and sounddevelopment

Acceleration of business development
through the provision of advanced
solutions throughout the company interms of personnel, general, and legal
affairs

Specifically, in terms of human resources,
establishment of environments conduciveto active participation by diverse humanresources regardless of nationality, gender, orother differences through initiatives for D&I*,
human development, and work style reform* D&I: Diversity and inclusion (accepting and making the best use of diverse human resources)

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

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20

Aiming to Maximize Synergy Through Integration
We will steadily execute the six measures in pursuit of maximizing synergy through consolidation, aiming for at least 200 billion yen by fiscal 2025.** Excluding the impact of time lag in the fuel cost adjustment system

Domestic power generation businessNew businesses/JERA’s existing businesses◦Streamlining through an O&M model that is competitive in
the global markets◦Streamlining through consolidated procurement ofmaterials and equipment◦Optimization of power source portfolio60 billion yen/year◦Electricity and gas market trading, third-party sales◦Global-level O&M engineering business◦Expansion of gas and LNG wholesaling◦Optimization through integrated management of the entire
value chain◦Apply global trading expertise to domestic thermal
generation businessr

60

billion yen/year100billion yen or more/year40billion yen/year

within 5 years of integration◦Growth into a global energy corporation◦Engage in fair competition including proactive
leveraging of the market◦Provide customers with a stable supply of globally competitive energy◦Improve the enterprise value of both the TEPCO and CEPCO groups

We are developing business with the goal of creating synergy
worth at least 100 billion yen per year within five years of theconsolidation in April 2019.
We have begun considerations for streamlining O&M
engineering as well as cost-cutting measures such as joint
procurement of equipment and materials, and project that wehave already achieved more than half the initially envisioned
cost reductions. We will continue to move ahead with efforts tounearth more ways to cut costs, and accelerate considerations
toward the earliest possible achievement of new profit
expansion measures for global-level O&M engineering andother businesses. We will leverage the effects of achieving
consolidation synergy to maximize our corporate value,
provide competitive electricity and gas to the market, amass
internal reserves, and reinvest.

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

Business Development
Department
We are one of the world’s largest power
producers—we have developed andnow own power generation assets ofapproximately 80 GW and 11 LNG receiving
terminals—as well as a company in the fuelbusiness, with long-term LNG procurementin 13 countries around the world, 20 LNG
carriers, and involvement in LNG production
projects in five different locations. We intend
to further advance the diverse development
capacity we have gained from these largescale businesses and continue moving ahead
with the development of integration projects
from fuel procurement to power generation(gas-to-power) and large-scale renewableenergy projects with the aim of expanding
business to meet the needs of various
countries and regions.

FY2019 vital statistics
Offshore wind power interests acquired:
Approx.

184,000

kW

Overseas thermal power station interests acquired:
Approx.

900,000

kW

Offshore wind power generation facilities completed:
Approx.

40,000kW

LNG projects launched:
Approx.

2.32

million tons/year

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Foundation for Value
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1.95

LNG charters concluded:

Our mission is to optimize the asset portfolios of existing and new business by providing energy solutions.
As a professional global asset management group that develops and deploys optimal assets centered on renewableenergy development and LNG value chain business from fuel upstream to power generation, we develop business thatmeets the needs of various countries.
Despite numerous issues including decarbonization and responding to increasing global energy demand, we intend
to contribute to the development of regional economic growth all over the world using solutions that leverage our value
chain centered on a combination of our flexible, clean LNG thermal power output and the variable output of renewableenergy it complements. Additionally, we aim to become a global leader sparking the transition to a clean energy economy
with our efforts toward the cutting-edge solutions of hydrogen and ammonia fuel.

Strengths◦One of the world’s largest LNG
transaction volumes◦Widespread value chain from fuelupstream to power generation◦Trustworthiness as the world’s chosen
partner for large-scale businessdevelopment

Opportunities◦Global transition to decarbonization◦Increased demand for energy in Asia
◦Expansion of renewable energy andgas-fired power◦Signs of new energy (hydrogen,ammonia, etc.) realization

Initiatives◦Expansion of integrated projects fromfuel procurement to power generation(gas-to-power)◦Replacement with the most efficient
power stations◦Proactive development of offshore wind
power and other renewables

Domestic Power Generation
Business

Overseas Power Generation
and Value Chain Business

Renewable Energy
Development BusinessIn an effort to both enhance ourdomestic competitiveness and reduce
environmental impact, we will replace
existing thermal power stations with themost efficient models while making use ofexisting infrastructure, and adopt cuttingedge exhaust gas treatment systems in
addition to considering the introductionof hydrogen and ammonia fuels, which
do not release CO2 during combustion.
We will also achieve a composition of
power sources consistent with energy
and environmental policies in an effort toachieve a balance between the stability
and sustainability of our energy supply.

Since participating in our first overseas
power generation project in the 1990s,
we have gained experience from many
more projects around the world which we
use to expand business.
We are aiming to expand
development based on strategies to meetthe needs of markets in North America,
Asia, and the Middle East.
We are also devoting energy in a
new domain—discovering gas-to-power
projects, a key to our future growth.

We view renewable energy as a corebusiness for our future, and intend to
expand by focusing on offshore wind
power generation, which leverages ourstrength of large-scale development.
Additionally, we are using storage
batteries—which are gaining traction
as a promising, innovation-driven power
generation option—in an effort to reducecarbon emissions and stabilize thesupply-demand balance.

GW

1

ship

21

A Group of Investment Professionals Aiming to Create an Optimal Asset Portfolio by Providing Energy Solutions

Environmental assessments for thermal
replacement in Japan completed:
Approx.

Corporate Information

Photo by Ørsted

Corporate Vice President, Director
Chief Operating Officer, Business
Development Department

Yukio Kani
Fuel Upstream and LongTerm LNG Procurement andTransportation BusinessWe are leveraging our annual LNG
transaction volume of approximately 36
million tons and participating in five LNG
upstream projects to realize the capacity
to respond to supply-demand variation
with diversified suppliers and priceindicators.
Additionally, our ownership of
upstream interests and fuel carriers
contributes to our highly consistent,
flexible, and competitive fuel supply.

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22

Providing Value
Stable Supply of Energy

Beginning LNG Production in Freeport (USA)The Freeport LNG Project in the US state of Texas is a project
to liquefy and export natural gas procured from the American
gas market. LNG production began in August 2019 during theprocess of commissioning the first production facilities. With
shipments to Japan beginning in December of that year, theproject to contribute to the diversification of suppliers andprice indicators was launched.
The project has enabled us to secure a new supply of
approximately 2.32 million tons of LNG per year. With norestrictions on destinations, the project is expected to further
improve our fuel trading business, thereby contributing to thediversification of suppliers and price indicators and stable LNG
procurement.

Freeport LNG Project liquefaction facilities
Photo by Freeport LNG Development

Development of Renewable Energy

Stable Supply of Energy and Reducing Environmental Impact

Participating in Offshore Wind Power
Generation Projects in Taiwan

Moving Ahead with Domestic Thermal Power
Station Replacement Plans

As part of our large-scale renewable energy business—afocus of our energy solutions—we are participating in the
Formosa 1 and 2 Offshore Wind Power Projects offshore of
the Taiwanese county of Miaoli.
Through our participation in these projects in Taiwan, which
are in different stages, we are applying our ample expertise inprojects inside and outside Japan. Additionally, with the aimof becoming a global leader in the renewable energy field, we
have joined the Ocean Renewable Energy Action Coalition
and World Forum Offshore Wind with the intent of sustainably
popularizing offshore wind power generation and increasing
our knowledge through proactive efforts on floating offshore
wind power and other new technologies, thereby contributing
to the further expansion of renewable energy and the resolutionof the many issues therein.

We are steadily moving ahead with plans to replace aging
thermal power generation facilities in Japan with top-of-theline, highly efficient facilities with the aim of contributing to
the realization of a stable energy supply and a low-carbon
society. Additionally, these thermal power generation facilities
can supplement the load variation of renewable energy andfunction as a bridge to the low-carbon society the world isaiming for.
A notable example is the Goi Thermal Power Station in
Chiba Prefecture. We aim to start construction in 2021 under aproject promoted by Goi United Generation—our joint venturewith ENEOS—and are moving ahead with preparations tooperate a top-of-the-line LNG thermal power station designed
to reduce environmental impact.

Formosa 1 Offshore Wind Power Generation ProjectImage of the Goi Thermal Power Station

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

Optimization
Department
JERA handles approximately 36 million
tons of LNG annually, among the largest
transaction volumes in the world, and has
10 years of experience in fuel trading. We
ensure comprehensive optimization of thehuge energy flow from fuel procurement
to transport, receiving, power generation,and sales while utilizing trading to achieve
the most cost-efficient, flexible operation.
In Japan, we sell electricity and gas
through long- and short-term over-thecounter trading and in trading markets.
We offer energy solutions that meet theneeds of customers and contribute to thedevelopment of the energy market.

FY2019 vital statistics
LNG transaction volume:
Approximately

36

million t

Electricity sales:

265.7

billion kWh

LNG procurement from:

13

countries

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Foundation for Value
Creation: ESG

Corporate Information

23

Pursuing Optimal Operation of Energy Value Chains
The Optimization Department, which is in charge of operating entire energy value chains, will combine individual
business segments and implement proper risk management in pursuit of optimal operations and to create newservices to provide solutions to our customers so that JERA’s supply of energy can continue to contribute to therealization of a sustainably growing society in which prosperous lifestyles are attainable.
Amid sweeping changes in the business environment, we will respond flexibly to variation in energy demand andmarkets and translate optimal operations and the optimized functionality of JERA Global Markets Pte. Ltd (“JERAGM”)
into contributions to the development of the global energy market and the establishment of sustainable societies.

Strengths◦A wealth of market intelligence,
mainly from JERAGM◦Expertise in dealings in the electricity
and gas markets◦Competitive, flexible procurement
portfolio◦Terminals and power stations
capable of flexible operations andreceiving

Opportunities◦Increase competitionin electricity and gas
sales◦Market creation,
introduction ofsystems◦Variation in resource
prices◦Variation in domestic
electricity demand

Initiatives◦Response to variation in demand through optimization of entire
value chains through optimized investment in thermal power
generation and fuel, optimized functionality of JERAGM, etc.
◦Risk control through optimal investment in our fuel portfolio
in response to market trends◦Pursuit of additional profits while limiting volume and risk
with respect to new electric power companies and electricity
markets◦Aiming for consistent profits through sales to retailers of theTokyo Electric Power Company and the Chubu Electric Power
Company

Managing Executive Officer, Chief
Operating Officer, Optimization
Department

Sunao Nakamura

Short-Term Fuel Procurement Business

Fuel Trading BusinessElectricity and Gas Sales BusinessWe are leveraging our world-class procurement scale
to establish a fuel portfolio with outstanding short-term
price competitiveness (within four years for LNG) and
responsiveness to the risks associated with volume andprice variation. We intend to contribute to the economical
supply of electricity and gas to Japan on the basis of ourcompetitive fuel procurement, and make efforts to expand
our fuel trading business on the strength of our acquired
flexibility.

In April 2019, we expanded the existing scope of our
optimization and trading from coal to include LNG. With
approximately 300 people mainly at JERAGM, which has
offices worldwide including in Singapore and London, weare contributing to the optimization of entire supply chainsthrough asset-backed trading that leverages our worldclass fuel procurement scale.

In addition to long-term, large-scale over-the-countertrading based on market prices and conditions, we will
also make use of short-term over-the-counter trading
and domestic electricity and gas markets to establish an
outstanding portfolio of electricity and gas sales. We willleverage our experience in the fuel trading business as wellas the electricity business in North America to contributeto the development of electricity and gas markets.

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Foundation for Value
Creation: ESG

Corporate Information

24

Providing Value
Securing Stable Sources of Energy

Establishing an Optimal LNG Procurement Portfolio
As we entered 2019, JERA reached new LNG
purchase and sale agreements with LNG Canada
and Mozambique LNG. These agreements will help
diversify our source countries and contribute toour stable, economical LNG procurement into the
future. At JERA, we intend to continue to establish
and optimally utilize a suitable LNG procurement
portfolio to enable us to respond flexibly to changes
in the business environment and seek to maximize
our corporate value.

Overview of Basic Agreement for Purchasing LNG
from LNG Canada

Overview of Basic Agreement for Purchasing LNG
from Mozambique LNG

Seller:

Diamond Gas International Pte. Ltd.

Seller:Mozambique LNG1 Company Pte. Ltd.

Buyer:JERA Co., Inc.

Buyer:JERA Co., Inc., CPC Corporation, Taiwan

Contract

17 years starting from the start ofterm:commercial production

Quantity:

1.6 million tons/year

Contract
term:

Quantity:

Terms ofdelivery:Approx. 15 years starting in FY2024
Up to 16 carriers per year (a maximumof approx. 1.2 million tons/year)
Delivered ex ship (DES)TOPICS Launching JERA Global Markets Toward LNG Portfolio Optimization
In April 2019, JERA and EDF Trading Limited
consolidated their spot and short-term LNG trades
and transport into JERA Trading Pte. Ltd. To
mark the consolidation, the company name waschanged to JERA Global Markets Pte. Ltd. before
beginning operations.
JERAGM strengths include offices in
Singapore, the UK, the Netherlands, the USA, andJapan, and a team of approximately 300 people
who collaborate closely with key people in JERA’s
Optimization Department. This joint venture adds
JERAGM’s spot and short-term LNG trades andmore to the existing coal trading business, making
JERA one of the world’s largest developers of
optimization business in the global markets for
LNG, coal, and chartering. Additionally, with
LNG terminals in Europe, access to pipeline gas
markets, and more, JERAGM contributes to theadvancement and streamlining of the entire LNG value chains of both JERA and EDF Trading.

LNG and Coal Trading Implementation System Since April 2019
UK OfficeTerms ofdelivery:

Delivered ex ship (DES)

33.33%EDF Trading

JERA

100%

JERA Trading
International

66.67%JERA Global Markets
Head Office in Singapore

Netherlands Office

Optimization of LNG andcoal purchase, sale,transport, etc.

USA Office
Japan Office

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

O&M Engineering
Department
JERA inherits a 70-year track record inproviding stable power in the Kanto andChubu areas. We have expertise in operationand maintenance (O&M) and engineering,as we currently own and operate
power stations with a total capacity of
approximately 80 million kW in and outside
Japan. Through efforts such as taking longterm responsibility of business—from power
station construction to maintenance andoperation—we always work to coexist withlocal communities.
We offer world-class O&M Engineering
services by combining the expertise gained
through business operations with theworld’s leading technologies to ensure safe,
competitive, flexibly adjustable operation of
power stations and receiving terminals forcustomers in and outside Japan.

FY 2019 vital statistics

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Value Creation

Strategies

Strengths◦Team of more than 3,000
skilled engineers◦Opportunities andexperience operating anabundant power supply
portfolio

Opportunities◦Electricity market competition◦Expansion of digitalization◦Expansion of renewable energy◦Steps toward zero-emission
thermal power◦World-class competitiveness in O&M◦Worldwide deployment of the JERA O&M Way◦Decarbonization initiatives (carbon-ammonia
co-firing, offshore wind power O&M)
◦Digital power plant (DPP) initiatives

Corporate Vice President
Chief Operating Officer, O&M
Engineering Department

Shunichiro Ide

Rendering O&M Engineering Services to Third Parties

Based on expertise gained operating power stations in and outside Japan, we
strengthen cost competitiveness by reducing the time required for periodic inspections
while still ensuring safe operation, and achieve flexible power station operation byincreasing the fuel types handled. We also introduce remote monitoring using digitaltechnologies, predictive management using big data, and new technologies such asbatteries to offer world-class O&M Engineering services (the “JERA O&M Way”)

We deploy the "JERA O&M Way" globally to meet the needs of customers in eachcountry. We also actively identify needs in various O&M Engineering services byutilizing expertise gained through thermal power generation.

Data Monitoring and Analyzing Center

Power generation capacity in Japan:
million kW

Initiatives

O&M Engineering

LNG receiving terminals in Japan:

70

25

Our O&M Engineering Department—a team more than 3,000 engineers strong—has continuously delivered electricity
through many years of power station and fuel terminal O&M, and will continue to coexist in local communities andsupport manufacturing and comfortable lifestyles in those communities.
We intend to leverage our experience of consistently providing a stable supply of electricity with the aim ofproviding world-class O&M services. Specifically, we will combine the fruits of our efforts toward continuous
improvement and technical capacity with digitalization to establish and refine the “JERA O&M Way”—which balances
cost competitiveness and market responsiveness—to provide an unprecedented, outstanding level of O&M services
compared to competitors inside and outside Japan.
With our focus set on being a group of professionals that challenge each other to reach higher heights, we aim
to become a world-class player in O&M.

27

(excluding jointly operated terminals)

Corporate Information

Promoting the JERA O&M Way with the aim of being a world-class player in O&M

Thermal power stations in Japan:

8Foundation for Value
Creation: ESG

Predictive management

Analyzing

Thermal efficiency management
Experts

Trigger

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Strategies

Foundation for Value
Creation: ESG

Corporate Information

26

Providing Value
To make the best possible use of JERA’s strengths of scale (diverse humanresources, facilities, data, etc.), we will further refine the pre-consolidation
capacities for Kaizen (constant improvement) and technology of TEPCO Fuel
& Power (“TEPCO FP”) and Chubu Electric Power Company, and combine
them with digitalization with the aim of enhancing our cost competitivenessand market responsiveness and achieving world-class O&M services.

Worldwide
Deployment of
the JERA O&M
Way

Strength
Amplification Factors

JERA’s Distinct Strengths

Toward Achieving
World-Class O&M Services

Strengths of Scale

Targets

Capacity for Kaizen

Human Resources
O&M Engineering Department:
Approx.

3,400 people

Technical capacity

20

27

TEPCO/Chubu Electric Power)

70 GW

Data
A wealth of operation data

Strengthening Cost
CompetitivenessO&M expenditures% reduction(compared to pre-consolidation figures ofFacilities
Thermal power stations in Japan:*Power generation capacity in Japan:*
Approx.

Reducing theTime Requiredfor Periodic
Inspections at
Thermal Power
Stations

Digitalization

Strengthening Market
ResponsivenessDuration of periodic inspections:

50% reduction* Includes capacity under construction

KaizenInitiatives

We implement Kaizen to reduce the time required for periodic inspections,revise and standardize work procedures, and more, in an effort to improve
productivity and strengthen our ability to negotiate prices for procurement.
Specifically, reducing the time required for periodic inspections
decreases the unit price of power generation (by improving the utilization
rate of outstanding facilities in terms of power generation costs), thereby
helping create opportunities for electricity and gas sales and fuel tradingin value chains.
Kaizen (work): Initiatives to reduce the time required for periodic inspections
Gain a fullunderstanding of
circumstances in termsof the Three Actuals:
the actual site, theactual goods, and theactual conditions

Kaizen to revise working methods
Kaizen to analyze work processes
Kaizen to scrutinize inspection agendas

Shorter
work schedules

PromotingExchange
Between Human
Resources to
Maximize
East-West Synergy

Laws and regulations require us to conduct periodic inspections at thermal
power stations.
Because we shut down power station operations to conduct theinspections, any reduction in the time required to do so has a positive impact
on our annual power generation output. JERA is working to reduce thetime required for periodic inspections at thermal power stations by revising
the working methods and analyzing the work processes therein as well as
scrutinizing inspection agendas.
Honing Our Kaizen Efforts
We achieved a roughly 75% (Shortening Work Processes)
reduction in the time normally(%)
Duration ofrequired for periodic inspections at 100
periodic inspections:
Approx.
the JERA Kawasaki Thermal Power75% reduction
Station, which has top-of-the-line(Compared to existing)
LNG thermal power generation
facilities (with total output of 3.42 GW)
50
along with the world’s highest levelof performance and environmental
technology. We intend to continuehoning our Kaizen efforts at all ourthermal power stations in an effort to0
Existing
FY2019Targetshorten work processes.
O&M Engineering Department personnel mostly come from TEPCO FP and
Chubu Electric Power Company in a 50:50 ratio. Important initiatives in PMI*
activities include switching managers between three power stations in eachof East and West Japan, which run at different frequencies, in an effort toswiftly realize synergy and further understanding of each other’s power
stations, and our promotion of exchange between power stations on bothsides of the divide through efforts such as hosting social gatherings for onsite
workers. Furthermore, the O&M Engineering Department regularly establishes
opportunities to hear the views of people on exchange from the other side, andalso establishes groups for eachtype of facility—coal, combined
cycle gas turbine, conventional,
terminal, fuel, etc.—to promote theexchange of information between
members of our stations on
both sides of the divide, thereby
promoting demonstrable synergy.
* PMI: Post-merger integration, the processof consolidation after M&A (merger andacquisition of companies)

Scene from an East-West Power Station Social Gathering(Kashima and Kawagoe Thermal Power Stations)

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Foundation for Value
Creation: ESG

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27

Foundation for Value Creation

JERA’s ESG
As a company developing business throughout the world, we seek
to advance ESG management throughout entire value chains basedon our belief in the importance of managing with a full and firm
understanding and control of the impact of our business activities onsociety and the environment as well as the effects of changes in thebusiness environment on our business, which is consistent with our
mission to provide cutting-edge solutions to the world’s energy issues.

JERA Businessand ESGManagement

Fuel upstream
development

Fueltransportation

Optimizationand trading

E
S

G
S

Domestic power
generation

Overseas power
generation◦Consideration for the environment and human rights of local communities◦Securing stable sources of energy by improving the diversity and flexibility of LNG sources◦Respecting human rights, ensuring safety, and establishing a sound working
environment for field workers in resource extraction◦Consideration for the environment during LNG transportation (reducing greenhousegas emissions, preventing air pollution, considering biodiversity)◦Safe navigation during LNG transportation◦Respecting human rights, ensuring safety, and establishing a sound working
environment for crewmembers on LNG carriers

In May 2019, we established the Sustainability Promotion Committee
to oversee sustainability across departments throughout the company.
The committee is under the direct control of the Board of Directors, andis chaired by the company president.
Under the Sustainability Promotion Committee, four subcommittees
that investigate issues and promote measures in four areas—theenvironment, society and human rights, governance, and public
relations and investor relations—in terms of ESG were established,
and all departments have been involved in making progress in theconsideration of matters relating to sustainability.
We intend to continue promoting sustainable activities unified withour business activities, promote initiatives aiming to develop businessand resolve social issues in addition to contributing to the achievementof SDGs.
Sustainability Management System Diagram

Board of Directors◦Ensuring safety during LNG receiving◦Enhancing safety measures at LNG storage terminals◦Respecting human rights, ensuring safety, and establishing a sound working
environment for workers at LNG storage terminals◦Reducing greenhouse gas emissions and waste associated with power generation◦Consideration for environments and human rights of local communities near power stations
E S◦Enhancing power station safety measures◦Respecting human rights, ensuring safety, and establishing a sound working
Senvironment for power station workers

Sustainability Promotion Committee
Chairman: President
Sustainability Promotion Committee Executive Office

E

Electricity
and gas sales
E Environmental aspects

S
S

Receivingand storage
terminals

JERA’s ESG initiatives in value chains

Fuelprocurement

E

Sustainability
Management
SystemS
S

Social aspects◦Providing a stable supply of energy◦Enhancing initiatives to improve customer satisfaction
G Governance aspects (understanding and control of value chain impact on environmental and social aspects)

Environmental
Subcommittee

Society and Human
Rights Subcommittee

Governance
Subcommittee

PR and IR
Subcommittee

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Strategies

Foundation for Value
Creation: ESG
G: Corporate Governance28

Corporate Information

Corporate
Governance

Basic Approach

The basic principle of our corporate governance is to ensure an
autonomous, independent corporate culture and a management
system capable of fair, swift decision-making by maintaining strong
and sound management/financial structures trusted by the global
energy market.
To achieve these principles, we established our own Corporate
Governance Guidelines, and intend to establish and enact a proper
corporate governance system as well as constantly work to improveand strengthen it.

In order to expand business throughout the world in a wide range of fields,
JERA has adopted an organizational structure that includes (i) a boardof directors (the “Board”), consisting of directors from JERA who arefamiliar with JERA’s business, and outside directors who have extensive
knowledge and experience (the “Outside Directors”, and together withthe directors from JERA, the “Directors”), that shall make material
business decisions and supervise business execution and (ii) corporate
auditors as independent officers (the “Corporate Auditors”) who shall be
responsible for auditing the execution of the Directors’ duties.
In addition, in order to separate the decision-making and supervisionof management from the execution of business and to effectuate
accurate and prompt decision-making and efficient business execution,
JERA has adopted an executive officer system where executive officers
are responsible for business execution based on the decisions made by
the Board.

Governance
SystemEstablishment of Corporate Governance Guidelines (October 2019)We established Corporate Governance Guidelines in October 2019 in light of our company’s expansion
and further progress into the process of becoming a global corporation as a result of our assumptionof existing thermal power generation business in Japan in April of that year.
The guidelines set out a basic approach and system for our corporate governance and serve as a

Corporate Governance Systemcode of conduct for our directors in pursuit of sustainable growth and improvement of corporate value.

Shareholders

WEB

JERA Corporate Governance Guidelines
https://www.jera.co.jp/english/corporate/corporate_governance/(as of October 31, 2020)

Shareholders meetings

Corporate Auditors Council

Corporate Strategy Department

Supervise

Board of Directors

Corporate auditors: 3

Corporate auditors:

3

Meetings of the Board of Directors:(Term of office: 4 years)(FY2019)

15

Supervise

10

Independent Auditor

Financial audits

Directors:(Term of office: 1 year)

Collaboration

Overview of Corporate GovernanceDirectors: 10

Directors’ Discussions
Nomination andCompensation
Committee

Finance and Accounting
Department
Business Support &Solutions Department
Business Development
Department

Executive System

Outside directors:

4

Outside corporate
auditors:

3

Director
attendance
rate:

97%

100％

Internal Audit Department

Organizational design:Company withcorporate auditors

Corporate
auditorattendancerate:

Optimization Department
Leadership Panel
Expert Committees(Investment Valuation Committee, etc.)

Chairman and President

O&M Engineering Department
East Japan Branch/West Japan Branch

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

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Foundation for Value
Creation: ESG
G: Corporate GovernanceCorporate Information

29

Corporate Governance
Roles,
Responsibilities,
and Diversityof the Board of
Directors

Support for
Directors

Based on applicable laws and regulations and our Articles ofIncorporation and internal rules, the Board of Directors determines
management objectives and business strategies, makes otherimportant decisions for managing the company, and supervises theexecution of duties.
Additionally, we believe that responding swiftly and appropriately tothe business environment and ensuring the objectivity and soundnessof our decisions toward that end are vital for expanding businessthroughout the world in a wide range of fields. Therefore, our efforts
to ensure diversity of knowledge, experience, and other factors among
the Board of Directors include hiring directors who neither work for thecompany nor are shareholders, in addition to executive directors who
work for the company and directors who were originally shareholders.

We have established a system that provides directors with the support
they need to properly perform the duties expected of them. Amongother things, the system provides each director with correct andcomplete information as well as opportunities to obtain knowledge andrecommendations about our company’s core businesses from outside
experts from around the world.
In fiscal 2019, we hosted discussions on topics such as capacity
markets, offshore wind power business, and LNG market trends withinternational experts in the fields of power generation and fuel. The
discussions gave us opportunities to hone our business strategies andlearn what we need to know to further develop our business domains
as a pioneering global company.
Additionally, we hosted Directors’ Discussions in an effort to promote
full and frank discussion between directors and the effective use ofknowledge from outside directors, and to ensure the effectiveness of
the Board’s discussions and supervision of the execution of duties.
The Directors’ Discussions provide each director with opportunities tofreely exchange opinions with the other directors on comprehensive
topics related to the company’s key management issues.
A wide range of topics were covered at Directors’ Discussions infiscal 2019, including environmental policy, human resources strategy,
and PMI initiatives.

Evaluation of
Effectiveness of
the Board

Leadership
Panel andExpertCommittees

Once each year, we evaluate each director and corporate auditor on
matters such as their contributions in Board meetings and operation
status to help continuously enhance and improve the Board’s
effectiveness. The Board of Directors analyzes and assesses theresults of these evaluations, considers and implements measures toaddress the issues identified, and constantly works to improve theBoard’s functionality and effectiveness.
In fiscal 2019, in light of our company’s expansion and further
development as a global company, we made efforts to enhance theBoard’s deliberations on management issues by inviting outside
directors (including non-Japanese people) with expertise and hosting
Directors’ Discussions to promote full and frank discussion between
directors and the effective use of knowledge from outside directors.
We also provided outside directors with opportunities to observe ourfacilities and places of business, and made other efforts to promote
their understanding of our company’s business.
In self-assessments of the effectiveness of Board meetings in fiscal
2019, the Board judged that the meetings were essentially effective, yetalso in need of further improvement toward enhancing deliberations.
Accordingly, in fiscal 2020, we are implementing efforts to further
enhance the Board’s deliberations. Efforts include revising materials forclarifying points of deliberation in the meetings, enhancing explanations
to outside directors prior to submitting proposals, and increasing thefrequency of Directors’ Discussions.

We have established a Leadership Panel comprising the company
chairman, president, vice president, and executive officers basedon policy set out by the Board of Directors. The panel provides
opportunities to deliberate, make decisions on, and receive key reports
about important management matters.
We have also established expert committees to assist the
Leadership Panel in each of the main fields under its control, and thecommittees offer recommendations from their perspectives as experts
to supplement the panel’s deliberations.
With the exception of limited areas for which there is no expert
committee coverage, the Leadership Panel incorporates the expert
committees’ recommendations into their deliberations and decisions
on all relevant matters to discuss and report to the Board of Directors.
Additionally, the panel reports the committees’ recommendations to
the Board along with the results of their deliberations.

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Foundation for Value
Creation: ESG
G: Directors & Officers

30

Corporate Information

Directors & Officers
1

Indicates an outside director as provided for in Article 2-15 of the Companies Act.

2

Indicates an outside auditor as provided for in Article 2-16 of the Companies Act.

Directors

April 1977:
April 2014:
April 2015:
April 2016:
June 2017:
April 2019:

ChairmanPresident

Corporate Vice President,
Director
Chief Operating Officer,
Business Development
Department

Toshihiro Sano

Satoshi Onoda

Yukio Kani

Joined Tokyo Electric Power Company
Executive Vice President and Director, Tokyo
Electric Power Company
Director (non-executive), JERA
Director, Tokyo Electric Power Company
Holdings; President, TEPCO Fuel & Power
Chairman, TEPCO Fuel & Power
Chairman, JERA

April 1980:
April 2018:

June 2018:
April 2019:

Joined Chubu Electric Power Company
Executive Vice President, Chubu ElectricPower Company; President, Power
Generation Company; Director (nonexecutive), JERA
Director, Executive Vice President, Chubu
Electric Power Company
President, JERA

April 1986:
April 2013:
April 2015:
April 2016:
July 2016:

April 2019:

Joined Tokyo Electric Power Company
Executive Officer, Tokyo Electric Power
Company
Managing Executive Officer, Tokyo Electric Power
Company; Vice President, TEPCO Fuel & PowerManaging Director, JERAManaging Director and Chief Operating
Officer, Corporate Strategy Department, JERA;
Director (non-executive), TEPCO Fuel & Power
Corporate Vice President, Director, and Chief
Operating Officer, Business Development
Department, JERA

April 1988:
July 2017:

April 2019:

April 2020:

Managing Executive
Officer, Director
Chief Operating Officer,
Corporate Strategy
Department

Managing Executive
Officer, Director
Chief Financial Officer,
Finance and Accounting
Department

Hisahide Okuda

Kazuo Sakairi

Joined Chubu Electric Power Company
General Manager, Strategies & Alliances
Office, Head of Corporate Planning &Strategy Division, Chubu Electric Power
Company
Managing Executive Officer, Chief Operating
Officer, Corporate Strategy Department,
JERAManaging Executive Officer, Director, Chief
Operating Officer, Corporate Strategy
Department, JERA

April 1987:
Joined Bank of Tokyo (currently MUFG Bank)
November 2002: M&A Team Head, Corporate Advisory
Department, Mitsubishi Securities (currently
Mitsubishi UFJ Securities)
June 2006:
Senior Director, GCA Corporation
January 2015:
Executive Officer, GCA Corporation
April 2019:
Managing Executive Officer, Director, Chief
Financial Officer, Finance and Accounting
Department, JERA

Director

Hendrik
Gordenker
January 1996:
March 2000:
February 2015:
May 2015:
April 2016:
April 2019:
April 2020:

Partner, Arent Fox LLP, Washington DC
Partner, White & Case LLP, Tokyo OfficeSenior Advisor, Tokyo Electric Power
Company
Senior Advisor and External Expert, JERA
Chairman, JERA
Director and Senior Corporate Vice
President, JERA
Director and Senior Advisor, JERA

Director1

Director1

Director1

Director1

David Crane

Mike Winkel

Akihisa Mizuno

Seiji Moriya

November 1984: White & Case LLP
June 1991:
Vice President, ABB Group Energy Ventures(Hong Kong)
June 1996:
Senior Vice President, Lehman Brothers
March 2000:
COO and CEO, International Power PLC
December 2003: CEO, NRG Energy, Inc.
December 2003: CEO, NRG Energy, Inc.
April 2016:
Senior Operating Executive, Pegasus Capital
Advisors
April 2020:
Director, JERA

October 1995:

August 2000:
April 2016:
January 2017:
January 2018:
April 2019:

Joined Westmecklenburgische
Energieversorgung AG
August 2000: Joined E.ON Energie AG as
Vice President
Joined E.ON Energie AG as Vice President
Senior Advisor, Boston Consulting Group(Madrid)
Expert Advisory Board Member, JERA
Senior Advisor and Investment Committee
Member, Dolma Group
Director, JERA

April 1978:
July 2005:
June 2009:
June 2010:
June 2015:
April 2019:
June 2020:

Joined Chubu Electric Power Company
Executive Officer, Chubu Electric Power
Company
Executive Vice President, Director, Chubu
Electric Power Company
President, Executive Officer, Chubu ElectricPower Company
Chairman, Chubu Electric Power Company
Director, JERA
Honorary Advisor, Chubu Electric Power
Company

April 1986:
Joined Tokyo Electric Power Company
April 2016:
Managing Director, TEPCO Fuel & Power
September 2018: Director, Executive Vice President, Chief
Financial Officer, and Assistant to the
President, Tokyo Electric Power Company
Holdings; President, TEPCO Fuel & Power
April 2019:
Director, JERA

Corporate Auditors
Appointment of Directors
Corporate Auditor2

Shigeyoshi
Araki
April 1985:
April 2018:

April 2019:

Joined Chubu Electric Power Company
Executive Officer, Chubu Electric Power
Company; General Manager, Thermal Power
Generation Business Department, Power
Generation Company
Corporate Auditor, JERA

April 1985:
June 2015:
June 2016:
April 2019:

Corporate Auditor2

Corporate Auditor2

Hideo Oishi

Minako Fujiie

Joined Japan Development BankManaging Executive Officer, Director,
Development Bank of Japan
Executive Director, Research Institute of Capital
Formation, Development Bank of Japan
Corporate Auditor, JERA

April 1988:
July 2016:
April 2019:

Joined Tokyo Electric Power Company
General Manager, Tsurumi Branch Office,
TEPCO Power Grid, Inc.
Corporate Auditor, JERA

Candidate Directors shall be decided by a resolution made by the Board after deliberationby the Nomination and Compensation Committee, taking into consideration personal
characteristics and core competencies appropriate for their role as Directors and thestructure of the Board to ensure diversity.
The Nomination and Compensation Committee comprises at least three directors,
including two outside directors who were shareholders before they became directors,
and exists to discuss matters involving personnel affairs and compensation of directors,
corporate auditors, and executive officers.

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Strategies

Foundation for Value
Creation: ESG
G: ComplianceCorporate Information

31

Compliance

Basic Approach

The JERA Group is conscious of its mission as a member of the
global business community, and gains and maintains the trust ofshareholders by ensuring compliance with the laws and regulations ofJapan and other countries, acting in good faith based on a heightened
sense of ethics befitting a global corporation, and otherwise acting inaccordance with the JERA Group Compliance Policy and the JERAGroup Compliance Code of Conduct.
WEB

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/

Compliance
Promotion
SystemVice President, Chief Operating Officers, and Heads of Branches of
JERA, and the Committee Chairman has the authority to nominate
outside attorneys and other outside experts as temporary committee
members as needed.
Additionally, the Compliance Committee discusses or reports
important matters—including compliance-related measures they
consider and evaluate, misconduct they investigate and review, andmeasures to correct and prevent the recurrence of the misconduct—tothe Board of Directors as necessary.

The JERA Group has installed a Compliance Committee to promotecompliance management and function as a body for reviewing anddetermining measures for ensuring that compliance is carried out andtakes hold within the Group. The Compliance Committee comprises
the Chairman, President (who serves as the Committee Chairman),

PromotingComplianceDiagram of the Compliance Promotion System

Board of Directors
Group companies

Discuss/report

The Compliance Committee reviews and determines measures forpromoting compliance for each fiscal year in an effort to ensure thatcompliance is carried out and takes hold within the JERA Group inaccordance with JERA Group Compliance Policy and the JERA Group
Compliance Code of Conduct, while considering factors such as theresult of questionnaire surveys administered to employees.
We intend to continue conducting compliance training andimplementing various measures to ensure that awareness ofcompliance takes hold in the Group, and that every effort is made toachieve compliance.

Primary Compliance Promotion Measures in FY2019

Compliance managers:

MeasureDescription

In principle, leaders oforganizations in charge of thecompanies’ compliance

Messages from management

Disseminating messages about compliance from management executives (April/October)

Creating collections of cases

Creating collections of cases, sharing them with internal sites, and using them as the basis for conducting
discussions in the workplace

Unit responsible forpromoting compliance:

Training

Inviting outside lecturers to conduct training for compliance managers

People nominated bycompliance managers

E-learning

Conducting e-learning sessions for 235 key people at foreign subsidiaries and 1,061 new appointees of businessdepartments dealing with foreign public officials to prevent bribery of foreign public officials (Percentage who
participated in sessions: 98.9%)

Questionnaires

Administering questionnaires about awareness of compliance (Response rate: 94.6%)

Establishing Group promotion
systems◦Assigning compliance managers and units responsible for promoting compliance in Group companies◦Administering questionnaires about compliance promotion systems to Group companies

Committee Chairman: JERA President Committee Vice Chairman: JERA Corporate Vice President
Observers: Corporate Auditors Executive Office: JERA Legal Group
Collaboration

Workplaces and places of business
Compliance managers:

Collaboration

Compliance Committee
JERA Chairman, President, Corporate Vice President, Chief Operating Officers, Heads of Branches

In principle, the primary divisions of departments and branch offices, and the leaders of front-line organizations

Unit responsible for promoting compliance:
People nominated by compliance managers

Responsibilities

Encouraging, leading, and setting good examples of compliant operation and management
Participating in and recommending compliance training
Implementing discussions in workplaces
Whistle-Blowing Desk
Taking proper action in response to noncompliance, etc.

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Value Creation

Strategies

Foundation for Value
Creation: ESG
G: ComplianceCorporate Information

32

Compliance
Corruption
Prevention

The JERA Group has established a code of conduct for preventing all
forms of corruption in accordance with JERA Group Compliance Policy
and the JERA Group Compliance Code of Conduct.
In February 2020, in response to the Kansai Electric Power
Company payoff scandal and in an effort to ensure fair, honest
relationships with suppliers, we established Internal Rules for Giving
and Receiving Money and Goods, which set out specific guidelines forgiving and receiving money and goods to and from clients.

Excerpt from the JERA Group Compliance Code of Conduct, on Preventing Corruption◦ We always maintain proper and healthy relationships with our business partners and do notprovide them with money, gifts, entertainment or any other economic benefits that exceed good
judgement.
◦ 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 political and governmental counterpartsof each country and region in compliance 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 agentsor 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.

Fair and
Equitable Tradewith Suppliers(CSR-Based Procurement)

Both domestically and abroad, we will go beyond merely complying withthe law, acting to ensure fairness and justice in the pursuit of our trading
and business activities. We uphold free trade and market competition andconduct fair business with suppliers in accordance with the Antimonopoly
Act and relevant domestic and international laws and regulations.
We have established a Procurement Policy, and make efforts toengage in CSR-based procurement activities in which we observe laws,
regulations, and corporate ethics and ensure safety in addition to assuring
quality and reducing procurement costs. In an effort to promote mutual
diligence, maintain close communication, and further establish trust-based
relationships with our suppliers, we hold briefings on our procurement
policy at which we listen to each other’s opinions and wishes.
WEB

Procurement Policy
https://www.jera.co.jp/english/corporate/procurement/

Whistleblowing
SystemThe JERA Group has established a Whistleblowing Desk for receiving
tips from inside and outside the company in an effort to prevent as wellas quickly discover and resolve compliance violations.
The desk can be reached via email 24 hours a day, and accepts
tips and reports of legal violations as well as all types of corruption(including bribes), violations of rules of employment and internal rules,
harassment and human rights violations, actions that damage theGroup’s reputation and social credibility, and more.
Reports can be given anonymously or not, and investigations will
be conducted in response to the wishes of informants. Every effort isexpended to maintain the confidentiality of the contents of reports andfindings of investigations, as well as to protect informants by prohibiting
disadvantageous treatment and retaliatory measures against them.
Additionally, when compliance violations are confirmed, various
corrective and recurrence prevention measures shall be taken.
In fiscal 2019, the desk received 12 tips and reports. To promote thecontinued use of the whistleblowing system, we will work to enhancetrust in it and periodically inform employees about it, and continue
efforts to prevent and quickly discover compliance violations.

TOPICS Self-Adaptation Declaration Registration in the Whistleblowing System*
On October 30, 2020, we became the first energy company to complete self-adaptation
declaration registration when our whistleblowing system was deemed to have fulfilled therequirements for certification set out by the Consumer Affairs Agency.
The requirements for certification mainly focused on whether we were rigorously
implementing measures to maintain confidentiality with regard to tips and to protect informants
and people who cooperate with investigations (prohibiting disadvantageous treatment, etc.),
and the agency determined that our whistleblowing system fulfilled the criteria.
* Self-Adaptation Declaration Registration System in the Whistleblowing System:
An official system launched in February 2019 by the Consumer Affairs Agency.
The system allows companies to register their whistleblowing systems by firstself-evaluating them based on criteria for certification set out by the Consumer
Affairs Agency, and then submitting applications and undergoing assessments by
a designated registration organization as to whether the systems fulfill the criteria.

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Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
G: Risk Management

Corporate Information

33

Risk Management

Basic Approach

RiskManagement
SystemThe JERA Group seeks to gain a proper understanding of and preventthe risks associated with our corporate activities in addition to working
to minimize loss when these risks occur. We view these efforts asunderpinning the improvement of our corporate value and fulfilling oursocial responsibility to our stakeholders, and thus continue to work
toward highly effective risk management.

The JERA Group has established a risk management system under
the overall responsibility of the company president. The system serves
to recognize and assess risks that could severely impact the Group’sbusiness and implement proper responses during normal times in an
attempt to minimize risks when they actually occur.

Risk Management System Diagram (as of October 31, 2020)

Board of Directors

Structure and Primary Roles of the Risk
Management Committee
Chairperson
President

President(General manager of risk management)

Risk Management Committee
Executive Office

Chairman, Chief Operating Officers, Global
CIDO,* Heads of the Planning Group andGeneral Affairs Group

Observers

Corporate auditors

Executive Office Corporate Strategy Department(Managers of risk management)

Places in charge of risk management(Departments)

Power stations
Construction sites
LNG centers* CIDO: Chief Information and Digital Officer

Primary roles

Group companies

Vice Chairperson
Chief Operating Officer, Corporate Strategy
Department

Members

Chief Operating Officers

Branch offices

HighlyEffective Risk
Management(i) Review and discuss risk management policy(ii) Review and discuss organizations andsystems for risk management(iii)Manage risks that could severely impact thebusiness of the JERA Group, and review anddiscuss measures for improvement as needed(iv) Exchange information about all mattersrelated to risk management(v) Review and discuss matters broughtfor discussion by the Risk Management
Executive Office(vi) Receive reports from places that handle crisis
management and response (executive offices
for crisis management, emergency operations
headquarters, etc.) and provide instructions
for additional response as needed

The JERA Group has established a highly effective risk management
system in order to fulfill the crucial social responsibility of providing astable supply of electric power. Specifically, the Group has establishedInternal Rules for Risk Management for risk management during normal
times, and Internal Rules for Crisis Management for responding tocrises and emergencies.
Each place of business is expected to manage the risks associatedwith its business activities as a part of its execution of duties; risks
that affect multiple locations are properly managed with cross-sectoral
responses. Additionally, managers of risk management report to the
Risk Management Committee whenever there are major changes tothe risks they are managing.
The Risk Management Committee chaired by the company
president seeks to prevent the occurrence of risks that could have asevere impact on the Group’s business. When such risks occur, theresponse is swift and appropriate in an effort to minimize the impact
on the Group’s business, and necessary reports are made to the Risk
Management Committee on a quarterly basis.
Additionally, the Risk Management Committee brings fordiscussion and reports the management status and response policy
for risks associated with the Group’s business activities to the Boardof Directors on a regular basis and as needed, and the directors gain afull understanding of each risk and exercise supervision to ensure thatthese risks are properly managed.

Risks of Major Businesses
Risks involving the external
environment❶Economic and meteorological conditions ❷Variation in fuel prices, etc. ❸Variation in interest rates❹Changes in the competitive environment ❺Strengthening of environmental regulations❻Exchange rate fluctuations

Risks involving business activities❶Power generation business ❷Fuel businesses ❸Natural disasters, unforeseen accidents, etc.

Other risks❶Compliance ❷Information management ❸Regulations and trends including ESG

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Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
G: Risk Management

Corporate Information

34

Risk Management
Countermeasures
for Major
Disasters
Earthquake Countermeasuresand Safety Measures for LNG
Receiving Terminals>>P45-46

Initiatives toaddress humanrights issues

JERA has established systems for swiftly initiating restoration workwhen disasters occur or are projected to occur, with specific actions
including immediately declaring a state of emergency and establishingheadquarters for disaster countermeasures at each place of business.
In light of the national and local governments’ revisions of damage
projections, disaster risk reduction measures, and the like with regard
to earthquakes striking directly under the capital region, Nankai Troughearthquakes, and other currently feared disasters, we are undertaking
necessary measures with our facilities and periodically conducting
drills to prepare for major disasters.
As harassment, undue discrimination, and other human rights issues
in supply chains throughout the world increase in severity alongside
the globalization of business, corporations must manage human rights
issues as priority risks.
In our JERA Group Compliance Policy, we pledge to be an
upstanding member of the global community by supporting theprotection of the human rights advocated in the Universal Declarationof Human Rights, and respecting the diverse cultures and customsof countries and regions around the world. Additionally, in our JERAGroup Compliance Code of Conduct, we pledge to respect humanrights in all aspects of business activities, and also not to discriminate
on the basis of race, skin color, gender, language, religion, political orother opinions, national or social origin, property, family origin or othersocial status, or for any other similar reason.
We intend to remain conscious of human rights in our businessactivities, specifically by formulating human rights policy, identifying
risks, and conducting impact assessments (due diligence) to improvethe effectiveness of our initiatives to address human rights issues.

TOPICS Human Rights Seminars
In January 2020, JERA invited Hideto Kawakita, a representative of the NPO International
Institute for Human, Organization and the Earth, to give a lecture on “the ideal state ofactive involvement of diverse human resources based on consideration for domestic andinternational human rights.” The lecture reaffirmed the importance of considering humanrights by acknowledging the cultural background, history, and other elements of each country
into which we expand our business, and inspired us to strive for lively workplaces in whichhuman rights are respected based on examples of initiatives by leading companies.

Enhancing
Information
Security
Measures

Information
Security
Education and
Inculcation

Responding toCyberattacks

The use and application of information technology is vital for fulfilling our
mission to help the people of the world achieve prosperous lifestyles
and invigorate industry and economy by providing a stable supplyof electricity and energy. Accordingly, we established an Information
Security Policy in an effort to appropriately protect information assets
and enhance the safety of our business dealings. The scope of theInformation Security Policy includes everyone involved in the company’s
operations and all things, environments, and other resources used
therein; the proper management and protection of relevant information
assets; and security measures for responding to cyberattacks andother threats.
It is worth noting that no major incidents involving information
security or the protection of personal information occurred in fiscal
2019.

We continuously educate all employees who work with information
assets, and expend every effort to observe laws, regulations, ourInformation Security Policy, and relevant regulations in an effort toimprove our technological level and awareness of information security.
Additionally, in an effort to instill awareness of information security andfacilitate swift responses to information security incidents, we give each
employee a “security card” containing rules to be observed.

As a company responsible for providing a stable supply of electricity,
we absolutely must establish a mechanism that enables us to respondswiftly and appropriately to the mounting threats posed by cyberattacks.
We also participate in the activities of the Japan Electricity
Information Sharing and Analysis Center (JE-ISAC)—an organization
through which electricity businesses share and analyze information
about cybersecurity—and gather information about cybersecurity
to inform our responses to increasingly advanced and sophisticatedcyberattacks.
In fiscal 2019, we conducted training on phishing for all employees
in an effort to reduce the risk of information leaks and virus infiltration
originating from such emails. The training proved to be effective inperiodically calling attention to the problem; thus, we intend to continue
calling attention to problems and conducting training on a regular basis.

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Value Creation

Strategies

Foundation for Value
Creation: ESG
G: Risk Management

Corporate Information

35

Measures to Prevent the Spread of the Novel Coronavirus
Basic
Approach

As a leading energy company that operates globally and owns roughly half the thermal power plants in Japan, JERA contributes to society by continuing to provide astable supply of energy during the COVID-19 pandemic.
Taking the safety and health of the people, our employees, and their families as our highest priority, our approach is grounded in thorough measures to prevent the
spread of infection in our workplaces, reduction or suspension of unnecessary or nonurgent operations as the situation develops, and concentration of resources on theoperations most important for the continuation of our business.

Action to Protect Safety and Health and Provide a Stable Supply of Energy
Measures to prevent infection and the spread of infection◦Restrict access to main control rooms◦Identify personnel capable of operating each power plant unit and secure
replacement personnel for shift duties◦Encourage shift employees to commute by private vehicles
Power stations◦Set aside space for meals and the like to protect night-shift employees◦Secure facilities and places where shift employees can spend the night◦Consider separation of office space as much as possible for day workers

Head Office/person belongs switches to telework◦Minimize the number of workers required for on-site work, switchingothers to telework◦Isolate the infected person’s office space and continue the work

◦If it becomes difficult to continue the work, the work is suspended ona plant-unit basis for, in principle, two weeks.

◦Close the infected person’s floor and switch to telework and a◦Transfer Executive Committee and other major meetings to the web

minimum of on-site work
◦If the head office or branch office building becomes unavailable,◦Prepare alternate workplaces in case of floor or building closure◦Share information about the impact on construction and delivery dates withbusiness partners◦Identify the status of global LNG/coal production plants and receiving terminals
globally, and monitor market trends
Procurement◦If a shift team member is infected, the team to which the infected◦Identify duties requiring on-site response and employees to perform them◦Recommend staggered work hours and telework

Branch Office Functions

Measures to maintain business continuity after the spread of infection◦Non-contact cargo handling has been prepared to avoid direct contact between
LNG carrier employees and receiving terminal employees when receiving LNG.

switch to a minimum of on-site work at an alternate workplace◦Consider postponement or cancellation of construction(Coordination with the relevant government agency is required forlegally mandated construction work.)◦Alternate procurement as conditions require◦Shift LNG receiving operations to non-contact cargo handling

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Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
G: Digital Transformation

36

Corporate Information

DigitalTransformation(DX)

Transformation
to a Data-Driven
Companye with
Suppliers

We have launched a Digital Transformation Project as a companywide
initiative to promote the development of a digitalization system that
includes the consolidation of well over 100 systems inherited fromTEPCO FP and the Chubu Electric Power Company.
We are rebuilding the already-introduced ERP* System andother components into something more coherent and consistentcompanywide in an effort to transform into a data-driven company thatmakes decisions swiftly and accurately on the basis of data.

Promoting
Digital Power
Stations* ERP: Enterprise resource planning, a system in which a company’s internal data is centrally
managed in an integrated database, enabling it to be used in corporate strategies

Complete CloudTransition
Initiative

We completed our migration of core systems to the cloud in May 2020
to enable JERA to respond swiftly and flexibly to sudden changes in thebusiness environment while ensuring requisite levels of security. This
was the first step for an energy company in need of system stability.
We intend to expand our use of the cloud and optimize our system
resources in an effort to reduce the impact on the global environment,
and to promote a digital transformation by combining the cutting-edge
technologies of AI and IoT with our cloud use.
Additionally, we have given laptops, smartphones, and otherdevices to our employees to create an OA environment—their ability towork from anywhere and without restrictions even during the pandemic
has contributed substantially to the realization of work style reform.

In an effort to expand our business throughout the world, we arepromoting a Digital Power Station Project with the aim of using digitaltechnology to reform operational duties.
We will combine the use of massive amounts of data through AI
with our capacities for Kaizen (constant improvement) and technology
to advance our power station operation and tremendously improve ourcompetitiveness and market responsiveness.
Our policy for the applications we develop is to extend them topower producers inside and outside Japan.

Operations

Performance management

Securing andDeveloping
Digital Human
Resources

Maintenance

Health, safety,
crisis management,
environmental conservation

We are promoting the diversification of our human resources byproactively promoting efforts to secure excellent human resources of
all nationalities and ages with advanced knowledge of ICT from outside
the company to reinforce and round out our staff; we currently haveapproximately 100 people with these skills from 10 different countries.
We are also making proactive efforts to develop human resources
with the aim of improving the IT literacy of all JERA employees.

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
E: Environmental Management37

Corporate Information

Environmental
Management

Basic Approach

Environmental
Management
SystemAs a leader in the thermal power generation business in Japan, we
respect energy and environmental policy represented by the Basic
Energy Plan, and proactively promote the development of renewableenergy.
Furthermore, as a global energy company, we fully recognize
the importance of global-scale environmental protection, strictly
observe the environmental laws, regulations, and ordinances of eachcountry and region, and make efforts to reduce CO2 emissions andother environmental burdens with the aim of realizing a sustainable
environment, society, and economy.

Material Balance (FY2019 )1

Fuel consumption for power
generation

Coal:
INPUT

Petroleum:
LNG :2

Biomass:

Our business—investing various resources to generate power—
contributes to society by providing the stable supply of electricity andgas that underpins industry and prosperous lifestyles. On the other
hand, our business activities generate CO2, waste, and other materials
that create environmental burdens.
We make many proactive efforts to minimize these materials aswell as resource consumption, including improving power generation
efficiency, reducing CO2 emissions, eliminating air pollutants, andrecycling waste. We intend to continue contributing to the establishmentof a sustainable society by moving ahead with the enhancement of
our environmental management, an effort led by the Environment
Subcommittee of the Sustainability Promotion Committee.

Fuel upstream
development
Fuelprocurement

14.83 million t
370,000 kL
31.21 million t

Total energy consumption

Industrial water
intake:18.12 million m3

Electric power consumption at
offices, etc.

Tap water intake:

870,000 m3

Groundwater usage:

20,000 m3

10.92 million kWh

390,000 t

Total:

19.01 million m3

Gas sales
Fueltransportation

Gas and LNG
sales volume:
3.06 million t

Fuel sales
and trading

Business
activities

Power
generation
Sending-end
power:
265.3 billion kWh

GHG emissions (CO 2 equivalent)

Environmental
Education andCommunication

Water usage55.25 million kL (crude oil equivalent)

We conduct training for all employees involved in environmental workat power stations to enable them to acquire the knowledge they need.
We are also proactively disclosing environmental data and the likein response to the recent increase in calls for the disclosure of nonfinancial information.

OUTPUT

Scope 1:124.61 million t-CO 2

Scope 2:5,000 t-CO 2

Scope 3:23.91 million t-CO 2

Total:

148.52 million t-CO 2

SOx emissions

7,500 tNOx emissions

21,100 t

1

Figures for JERA in Japan only (affiliates’ places of business excluded)2

Includes utility gas and LPG

Gross wastewater
volume

7.6 million m3
COD emissions

21 t

Disposal byreclamation

10,000 t

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Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
E: Environmental Management38

Corporate Information

Environmental Management
Reducing CO2
Emissions
JERA Zero CO 2
Emissions 2050>> P9-11

Highestin Japan

FY2019Total thermal power
generation efficiency(low heating value):

50.1

%

In October 2020, we unveiled JERA Zero CO2 Emissions 2050 as a
future-oriented initiative to reduce CO2 emissions.
We accept the challenge of this initiative: to achieve zero CO2emissions in all JERA businesses throughout the world by 2050 with theaim of contributing to the realization of a sustainable society in line with our
mission to provide cutting-edge solutions to the world’s energy issues.
We have already proactively promoted renewable energy businessthroughout the world and moved ahead with sustained initiatives
through our participation in relevant organizations. We have begun
considerations for offshore wind power development at the Port of Akita
and in Ishikari Bay to follow our participation in offshore wind power
projects in places like the UK and Taiwan. We are also developing solar
power generation in many Southeast Asia countries.
Additionally, in line with our pursuit of zero-emission thermal power,
we are working to further streamline LNG thermal power generation,
which generates relatively low CO2 emissions.
We intend to continue moving forward with various initiatives towardachieving JERA Zero CO2 Emissions 2050.

Preventing Air
Pollution

SOx and NOx Emissions Per Unit of Power Generation Output

At least

62

%

1.5

JERA is a member of World Forum Offshore Wind.*
June 2020 marked the beginning of activities of the Floating Offshore Wind Committee, a
newly launched subordinate organization of World Forum Offshore Wind.
As a member of WFO and FOWC, we will contribute to the growth of floating offshore wind
power generation by working in cooperation with other member companies and organizations
to promote initiatives related to advocacy and policymaking, cost reductions, the highest
health and safety standards, and engagement with stakeholders.

* World Forum Offshore Wind: An NPO established in Germany in 2018. The organization gathers and disseminates information
about offshore wind power generation and works to create understanding among key people in national governments with theaim of institutionalizing floating offshore wind power generation throughout the world. (Website: https://wfo-global.org/)

1.3

1.0
0.5
0.0

■NOx

2.1

2.0

The world’s most efficient combined
cycle power generation system
reduces fuel consumption and CO 2
emissions

TOPICS JERA Joins World Forum Offshore Wind

■SOx

(g/kWh)2.5

Nishi-Nagoya Thermal Power Station Group 7-1 and 7-2:
Highly Efficient Combined Cycle LNG Power Generation System
Design efficiency(low heating value):

The air pollutants discharged by our thermal power stations include
sulfur oxides (SOx), nitrogen oxides (NOx), and soot from boiler
exhaust and other sources. We are taking steps to reduce emissions
by working to improve incineration methods and installing exhaust gas
desulfurization and denitration systems, electric precipitators, and thelike, all in an effort to comply with exhaust standards set out in laws andregulations as well as local ordinances and environmental preservationagreements with local governments. In fiscal 2019, our SOx and NOx
emission intensities were 0.03 g/kWh and 0.08 g/kWh, respectively;
we have maintained substantially lower figures than leading countries
in Europe and the Americas.

1.0

0.8
0.5

0.4

USA
(2017)

Canada(2017)

0.7

0.2

0.2

UK
(2017)

France(2017)

0.5

0.4
0.1

Germany(2017)

Italy(2017)

0.2

0.3

Japan
(2017)

0.03 0.08
JERA(FY2019)

Source: Prepared based on the OECD Stat website (OECD) and World Energy Balances 2019 (IEA)

Water Quality
Conservation
Measures(Consideration for
Marine Environments)

We discharge wastewater from our thermal power stations properly,
monitoring it constantly using equipment such as continuous water
quality measurement systems and purifying it using wastewater
treatment systems so that it satisfies wastewater standards. We alsosufficiently consider the impact on surrounding marine environments;for example, to limit the warming of ocean water used in ourcondensers, we practice slow intake from deep ocean areas withlow water temperatures, and release water on the surface at reduced
release speeds.

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Value Creation

Strategies

Foundation for Value
Creation: ESG
E: Environmental Management

Corporate Information

39

Environmental Management
Effective Use of
Resources
Coal ash effective
utilization rate:

99.99%

Proper Storage
and Treatmentof PCB Waste

State of Waste
Treatment
Facility
MaintenanceControl ofChemicalSubstances

We recycle proactively in order to make effective use of limited
resources. One of our main waste materials is coal ash from the coal
we use at thermal power stations. We are promoting the effective useof coal ash as a raw material for cement and as a land development
material for its superb material characteristics such as fine particles,
light weight, and increased strength. Our effective utilization rate of coal
ash in fiscal 2019 was 99.99%.

Compliance withEnvironmental
Legislation
Considerationof Environments
Surrounding
Power Stations

PCB (polychlorobiphenyl) waste retained at thermal power stations,based on the related laws and regulations, is stored/managed
appropriately and progresses through planned processing. Notethat equipment using PCB as insulating oil (high-concentration PCB
equipment) is entrusted to JESCO (Japan Environmental Storage &Safety Corporation) for disposal.

The Waste Disposal and Public Cleansing Act requires companies
to publish information on the state of their waste treatment facility
maintenance.
In April 2019, JERA inherited licenses to install waste treatment
facilities from TEPCO Fuel & Power and the Chubu Electric Power
Company under the Waste Disposal and Public Cleansing Act, andwe publish information about the state of facility maintenance—past as
well as present—on our website.

Regarding chemical substances used at our thermal power stations, weobserve the PRTR Act (Act on Confirmation, etc. of Release Amountsof Specific Chemical Substances in the Environment and Promotion of
Improvements to the Management Thereof) and make efforts toward
strict control and reduction of emissions based on internal rules.

Primary Measures

We make efforts toward environmental conservation by conducting
business based on environmental laws and regulations as well as local
ordinances and agreements with local governments. In fiscal 2019, we
received no administrative penalties under this legislation.

In accordance with the Environmental Impact Assessment Act, we
conduct environmental impact assessments of the environments
surrounding power stations during installation, replacement, or otherwork on the stations as well as after operation starts, and explain the
results and engage in dialogue with members of local governments
and communities. We use the results of these environmental impact
assessments to consider the impact of our work on surrounding
environments, and make conservation efforts accordingly, including
measures against noise, vibrations, and industrial waste, and measures
to preserve scenery.

Measures

Description

Measures against noiseand vibrations

Our measures against noise and vibrations include choosing proper placement of buildings and equipment, adoption ofequipment for lowering noise/vibration, and installation of silencers/sound barriers.

Measures against
industrial waste

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

Measures for landscapepreservation

We make efforts to ensure that power stations blend in with local scenery, while considering costs.
See p. 47

TOPICS Preserving Biodiversity
The environmental impact assessment we conductedwhen replacing Units 1 and 2 at Yokosuka Thermal
Power Station confirmed that the area was home tofalcons, an endangered species in Japan.
In response, we undertook measures suchas using low-noise, low-vibration machinery to
avoid negatively impacting the falcons’ breeding
environment. We also installed nesting boxes on
the new stacks to create an environment in which
the falcons can build nests. In the future, we intend
to install green spaces with hunting grounds for thefalcons and take other steps to conserve their habitat.
A falcon observed on the power station property

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Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
E: Environmental Data

40

Corporate Information

Environmental
Data

Item1

Unit

FY20172

FY20182

FY2019Item1

Fuel consumption for power generation

Unit

FY20172

FY20182

Other indirect CO 2 emissions (Scope 3)

thousand t-CO2

26,60025,490FY201923,910Coal

million t

17.45

16.26

14.83

Purchased goods and services

thousand t-CO2

0.1

0.1

0.1

Petroleum

million kL

1.11

0.54

0.37

Capital goods

thousand t-CO2

650

580

770

LNG, LPG, utility gas

million t

34.14

33.10

31.21

Activities related to fuel and energy

thousand t-CO2

25,74024,70022,970

Biomass

thousand t

90

190

390

Fuel transportation and circulation in upstream departments

thousand t-CO2

—

—

—

Sending-end powerbillion kWh

292.2

283.4

265.3

Waste generated by businessthousand t-CO2

210

210

160

Gas sales volume

million t

2.66

2.66

3.06

Business travel

thousand t-CO2

0.6

0.6

0.6

Employee commuting

thousand t-CO2

1

1

1

Total energy consumption (crude oil equivalent)million kL

62.14

59.68

55.25

Lease assets of upstream departments

thousand t-CO2

—

—

—

%

49.3

49.7

50.1

Fuel transportation and circulation in downstream departments

thousand t-CO2

—

—

—

Processing of sold products

thousand t-CO2

—

—

—

Use of sold products

thousand t-CO2

—

—

—

Treatment after disposal of sold products

thousand t-CO2

—

—

—

Lease assets of downstream departments

thousand t-CO2

—

—

—
—

Total thermal power generation efficiency (low heating value)
Thermal Power Generation Efficiency Benchmark Index A—(Act on the Rational Use of Energy)
Thermal Power Generation Efficiency Benchmark Index B(Act on the Rational Use of Energy)
Electric power consumption at offices, etc.
Intensity of energy consumption at offices, etc.

0.986

0.994

1.002

%

45.9

46.3

46.8

million kWh

13.47

11.60

10.92

Franchise

thousand t-CO2

—

—

MJ/m²

30.04

25.87

16.86

Investment

thousand t-CO2

—

—

—

CO 2 emission intensity of power generation6

kg-CO 2 /kWh

0.480

0.476

0.469

Domestic/JERA Group: CO 2 emission intensity of power generation business 4,6

kg-CO 2 /kWh

0.497

0.493

0.492

Global/JERA Group: CO 2 emission intensity of power generation business 4,5,6

kg-CO 2 /kWh

0.503

0.499

0.496

Industrial water intake

million m³

19.68

19.08

18.12

Tap water intake

thousand m³

410

390

870

Groundwater usage

thousand m³

20

20

20

thousand t-CO2

140,410

134,980

124,610CO 2 emissions

thousand t-CO2

140,290

134,850

124,500

N 2 O (nitrous oxide) emissions

thousand t-CO2

120

120

110

SF 6 (sulfur hexafluoride) emissions3

thousand t-CO2

10

10

4

HFC (alternative CFC) emissions3

thousand t-CO2

0.6

0.3

0.6

Greenhouse gas (GHG) emissions associated with power generation
business (Scope 1)

Domestic/JERA GroupCO 2 emissions associated with power generation business (Scope 1) 4
Global/JERA GroupCO 2 emissions associated with power generation business (Scope 1) 4,5

thousand t-CO2

153,690

148,620

139,010thousand t-CO2

168,810

166,300

161,110CO 2 emissions associated with fuel upstream business (Scope 1) 4,5

thousand t-CO2

140

150

240

CO 2 emissions associated with fuel transportation business (Scope 1) 4,5

thousand t-CO2

190

200

300

thousand t-CO2

7

5

5

CO 2 emissions from power consumption in buildings associated withbusiness activities (Scope 2)
1

Figures for JERA in Japan only (affiliates’ places of business excluded) unless otherwise noted2

Figures for FY2017 and FY2018 (before the consolidation of existing thermal power businesses) calculated based on totals of all JERA facilities as of April 1, 20193

Calendar year totals

4

Joint venture figures calculated based on JERA’s share5

SF 6 (sulfur hexafluoride) capture rate (during inspections)

%

99.4

99.7

99.8

SF 6 (sulfur hexafluoride) capture ate (during removal)

%

99.0

100

100.0

SOx (sulfur oxide) emissions
SOx (sulfur oxide) emission intensity 6

thousand t

10.4

9.24

7.5

g/kWh

0.04

0.03

0.03

thousand t

23.9

23.2

21.1

NOx (nitrogen oxide) emission intensity 6

g/kWh

0.08

0.08

0.08

Gross wastewater volume

7.60

NOx (nitrogen oxide) emissions

million m3

7.93

7.00

COD (chemical oxygen demand) emissions

t

22

20

21

Industrial waste and byproducts generated

million t

2.20

2.39

1.99

Disposal by reclamation

thousand t

20

20

10

99.98

99.98

99.99

Coal ash effective utilization rate%

Number of severe leaks
PCB (polychlorinated biphenyl) content

—

0

0

0

—

833

111

16

kL

733

124

86

—

0

0

0

Number of transformers and capacitors disposed ofVolume of PCB-contaminated insulating oil treatedCases involving fines and sanctions for violations of environmental laws
and regulations

As a rule, totals for overseas businesses are based on local fiscal years and reporting standards

6

Figures based on sending-end power

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
S: Human Resources

Corporate Information

41

Human Resources

The Three
Pillars of Human
Resources

Creating Inclusive Organizations

Diversity &Inclusion (D&I)

Supporting
Autonomous Career
Development
Our efforts include creating
a career development
system that incorporates
the perspectives of D&I andrebuilding the mentor system.
We deploy a rotation system tohelp each and every employee
improve their skills towardachieving their career goals.

JERA’s Ideal
Employees

Human
Development

Work Style
ReformDiversity is the presence of various differencesin an organization, including gender, nationality,
ethnicity, experience, and expertise. Inclusion
enables these diverse people to contribute to theirorganizations and realize personal growth in fairand equitable environments of mutual respect inwhich they exhibit their strengths to the fullest.
We disseminate information, hold seminars, andengage in other efforts to further our employees’
understanding of D&I and form an inclusive
corporate culture.

Promoting Work Styles Tailored toDiverse Needs
We leverage flexible working arrangements(working from home, satellite offices) based on
perspectives of D&I and make other efforts topromote work styles tailored to employees’ needs
and the current era.

Aiming to Become a Group with Four Important Traits

Diversity

Excellence

Entrepreneurial Spirit

Fairness

Striving for organizational and personal growth
based on respect for differences in gender,
nationality, ethnicity, experience, expertise,and other areas, and regard for the formationof views regardless of rank or position

Seeking further expertiseand personal growththrough constant
incorporation of new skills
and knowledge avidly

Adeptly perceiving
changes, seeking
opportunities,
and continuously
innovating

Being accountable andtaking the initiativewith a heightened
sense of ethics andfairness in all matters

Senior Operating Officer’s Message

Becoming a Company that Enables Diverse People to Exhibit
Their Skills to the Fullest
Human resources are a vital source of the Group’s capacity for
growth.
We seek to enable each and every employee to refine their
sensibilities and skills and leverage their strengths based on thethree pillars of human resources: Diversity and Inclusion (D&I),
Human Development, and Work Style Reform.
For D&I, we are creating organizations that respect everyone’s
diversity and individuality to enable them to produce results infair, equitable environments. We are also establishing a distinctive
training system for cultivating our ideal employees and engaging
in human development tailored to the skills, capabilities, and rolesof all employees. Finally, we are promoting work style reform in aneffort to create a robust system that enables everyone to choose
their desired style of work and exhibit their skills to the fullest while
also improving productivity.
For the company to achieve sustainable growth, we must improve
our corporate value through the individual growth of our employees,
and achieve our mission and vision. We intend to continue proactively
moving forward with our system that enables employees to choose
their own career paths and work styles in addition to various
measures including hiringglobal human resources,andpromotingactiveparticipation by women andthe employment of people
with disabilities.
Managing Executive Officer
Chief Operating Officer, BusinessSupport & Solutions Department

Masahiro Takizawa

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Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
S: Diversity & Inclusion

42

Corporate Information

Diversity &Inclusion

Top Management’s Commitment

To achieve our vision for promoting diversity and inclusion, our D&I
Section, which was established in April 2020, is taking the lead inpromoting efforts such as proposing flexible work styles and providing
career development support that incorporates the perspectives of D&I
and holding workshops and seminars to inculcate D&I throughout thecompany. We will fully leverage our inherent diversity to create newvalue.

D&I Promotion

Together creating a company which contributes fully to the society through diversity as theenergy for change!
JERA’s Vision is to “Global leader in LNG and renewables, sparking the transition to a clean energy
economy”. This requires executing our Mission, which is “to provide cutting edge solutions to the world’s

Main D&I Promotion Measuresenergy issues”. These are exciting and revolutionary objectives. To achieve them JERA must keep

Measureevolving its entrepreneurial culture, embrace all talent and welcome new ideas and innovative thinking.

Formulating a D&I vision

JERA will prioritize diversity and inclusiveness to drive forward. JERA seeks “Inclusion” byinvolving and empowering all members, recognizing their inherent dignity and worth, sustaining a
sense of belonging and respecting every person’s talents, beliefs, background and lifestyle, basedon its “Diversity” that encompasses the full range of human differences, including race, ethnicity,

Hosting D&I seminars
Employee attitude surveys
Information dissemination

Description
Hosting participatory events for all employees to work together to create our company’s D&I vision
Hosting seminars about unconscious bias for management personnel as part of our activities to inculcate D&I
throughout the company
Conducting attitude surveys to increase awareness and promote internalization of D&I, and to gain more allies of D&I
initiatives
Disseminating information about JERA’s D&I initiatives through the National Diversity Network of universities andresearch institutes

gender, gender identity, sexual orientation, age, social class, physical ability or attributes, religious
or ethical values, national origin or political beliefs. JERA will create a work environment in which

Men:

3,956

every individual can fully contribute to the organization while maximizing their personal potential andprofessional growth through diversity and inclusion.

Our vision is summarized into two core beliefs below:◦The company must do everything possible to help all employees to feel happy, motivated and

Women:

Number of
employees:

4,260

Men:

304

Percentage of women:

7.1

802

Women:

25

Number ofPercentage of women:
management personnel:

827

3.0

fulfilled at JERA, to the benefit of themselves, their partners, families, and communities.
◦Our Vision & Mission can only be achieved by happy, motivated and fulfilled employees.
Specifically, we are working to achieve the following four aims:
1. Prioritize professional development and career opportunities for current and future employees.
2. Use our employees’ skills to tear down barriers to building a next generation energy business.
3. Develop new sustainable global energy solutions for future generations.

TOPICS Joining EMPOWER to Promote More Active Participation by Women
In November 2020, JERA joined EMPOWER*, a private-sector alliance for the empowerment
and progression of women’s economic representation.
We intend to further promote active participation by women through such efforts as
sharing information with fellow members of EMPOWER and participating in working groups.

4. Be recognized for our achievements by external stakeholders, locally and globally.
* EMPOWER: A global alliance of private companies launched on the basis of the leaders’ declaration at the G20 Osaka Summit

We will build a happy, motivated and fulfilling company capable of delivering exciting new solutions
to the world in which we live.

in June 2019. The aim of the alliance is to increase women’s participation at corporate levels where decisions are made.
(Gender Quality Bureau Cabinet Office website: http://www.gender.go.jp/international/int_kaigi/int_g20/empower.html)

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
S: Human Development

43

Corporate Information

Human
Development(Formulated in March 2020)

Human Development Policy
JERA considers each and every employee to be an important asset, and will engage in humandevelopment in accordance with the following approach.

We are establishing a distinctive human development system thatprovides strategic support for employee growth through autonomous
career development, professional development, and more based on
the Human Development Policy we formulated in March 2020.
To establish supportive environments conducive to employee selfrealization, we are creating a career development system that enables
employees to build their own careers, developing a training system thatprovides multifaceted support for improving skills to build those careers(see the chart below), and establishing a diverse system that enables
each and every employee to grow as professionals.
We intend to continue being proactive in efforts such as improving
systems and providing opportunities for each and every JERA
employee to exhibit their skills to the fullest in pursuit of corporate andindividual growth.

Human
Development
Plan

Objectives of Human Development❶ Employees continuously pursue personal growth and live energetic, century-long lives❷ Through employee growth, improve JERA’s corporate value and achieve our mission and vision
Basic Approach■ JERA respects diversity and develops professionals in all areas of expertise◦Helping JERA employees improve their skills and develop a mindset for sustained success and dominance inside

Training System
Training/Systems Tailored to Individual Skills and Capabilities

and outside Japan as well as contributing to social progressSpecialty/Skill■ JERA develops employees who meet the challenge of staying ahead of the changing times

Corporate◦Developing people who adeptly innovate during unpredictable times

Business
Development

Optimizationand technology particular
to each business department1

Intermediate

HiringHiring excellent
employees

Development
Professional
development basedon business needs

Development-oriented
rotation of assignments
Autonomous careerdevelopment

Evaluation

Foundation (system, etc.)

Benefits

Advancement
Employees leverage
their skills to moveto the next step

BeginneBasic training for
improving businessskills2

Young, new employees

implement activities associated with each process.

Intermediate
training for
improving businessskills2

training3

Training for young
employees
Training for new employees

1 Plans call for discussions of specific details and levels based on the needs of each business department
2 Communication, Intercultural Understanding, Basic Financial Statements, Presentations, Diversity, Problem Solving Skills, etc.
3 Training for newly appointed management personnel, assistant managers, etc.

Training for mid-level/experienced employees

O&M

Position-based

Mid-level employees

Improvement of skills

Management

Maximizing the Value of Human Resources: We will establish a foundation for human resources management andAdvanced training
for improving
business skills2

Advanced
Skill level

We proactively support the growth of all JERA Group employees, including those at overseas sites

Training
Long-term onsite training, training abroad, etc.

◦Deploying a rotation and helping employees improve their skills toward achieving their career goals

Level-Based

Objective

Language training (including TOEIC testing)

O&M
expert■ JERA respects employees’ career plans and provides maximum support for their realization

General Training/Systems by
O&M

Kaizen (constant improvement, correspondence courses, e-learning, etc.

◦Helping employees make bold attempts to achieve further growth and find places to exhibit their skills

Role-Based Training

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
S: Work Style Reform

Corporate Information

44

Work Style Reform

Basic Approach

PromotingWork-Life
Balance

We are promoting work style reform adapted to changes in society
to create workplaces that enable people to work with vigor on a daily
basis, so that all JERA employees can maintain a balance between workand life. We are working to establish a full array of support systems thatenable people to work in styles adapted to the pace of business, andcontinue working with a sense of security as they respond to various life
events, while also improving productivity.

In February 2020, we enacted a full-scale, restriction-free telecommuting
system to enable workers to enjoy flexible work styles as a part of theirwork-life balance.
We are also establishing a parenting support system thatencourages men as well as women to participate in childcare, andmaking other efforts toward work styles that enable our diverse humanresources to flourish.
We intend to continue diversifying work styles while incorporating
the views of our employees.

Systems for Achieving Work-Life Balance
SystemTelecommuting System

Parenting Support

Description and Results◦Trials began in February 2019, and full-scale operation was launched in February 2020
(working from home and satellite offices)◦Employees are free to telecommute on days of their choice for any reason(up to twice per week or eight times per month)◦Introduced for all employees as a system for helping employees involved in childcare achieve balance between workand family◦A male employee used childcare leave in September 2019

Uniform Quitting Timeat Headquarters◦An initiative to reduce overtime working hours◦Applied on the second Friday of each month

Reducing
Overtime Workand Promoting
the Use of Paid
Leave

We are striving to rigorously and appropriately manage working hours
by introducing attendance management systems and developing
measures for overtime work. Specific efforts in which we work withworkplaces to reduce overtime hours include regularly reporting
overtime work statistics to management, requiring explicit priorinstruction for working outside business hours as well as explicit priorinstruction from department heads for working late-night hours, andestablishing no overtime day on the second Friday of every month.
We are also promoting the systematic use of annual paid leave tocomply with the amended Labor Standards Act, which went into effectin April 2019; specifically, we are recommending that employees takearound one vacation day every two months, and combine vacation
days with summer leave and other holidays.

TOPICS Seminar for Considering New Work Styles Amid a New Normal
In an effort to prevent the spread of the novel coronavirus by limiting employee commutes, wehave abolished the maximum number of telecommuting days available to employees until the
pandemic is under control.
To encourage effective communication between employees and productive teammanagement amid the new normal—circumstances that require us to break from our routines,
such as when the national government declares a state of emergency—we invited lecturers
to speak at a July 2020 seminar for management personnel and higher-ranking employees
entitled “Considering New Work Styles Amid a New Normal.”
Afterward, many participants expressed their opinion that the seminar was quite effective,
saying that it helped them understand how work is done via telecommuting, taught themlessons about team management, and inspired them to consider work styles for the future.
We intend to capitalize on our experiences under the last state of emergency to continue
searching for new work styles amid the new normal so that we can adapt to changes insociety.

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
S: Safety and Health45

Corporate Information

Safety and Health

Basic Approach

Safe, Consistent
Operations

Disaster Prevention
Measures

As an entity responsible for a significant portion of the stable supply ofvital energy to the people of Japan, JERA is maintaining systems forpreventing impediments and other problems with facilities at thermal
power stations and fuel terminals in Japan in order to maximize theirinherent capacity. We are also implementing health control based on
our understanding that protecting the health of our employees andothers is the crucial basis of our continued existence.
We expend every effort to achieve safe, consistent operations at ourthermal power stations by monitoring their operation status from main
control rooms 24 hours a day. We conduct daily inspection patrols
in an effort to swiftly discover problems, rigorously inspecting theappearance of our facilities and checking each piece of equipment
to ensure that we catch even the slightest changes in temperature,vibrations, abnormal noises, and other problems.
We also conduct legally mandated periodic inspections set out inthe Electricity Business Act, periodic voluntary inspections developed
in-house, and other periodic inspections appropriately so that ourfacilities operate safely. Note that we have systems in place for thesoonest possible restoration of operations together with affiliates when
any problems are discovered in operation.
In thermal power stations many dangerous substances are handled,
and they are appropriately managed according to laws such as the Fire
Service Act, the Act on the Prevention of Disasters in Petroleum Industrial
Complexes and Other Petroleum Facilities, and the High Pressure Gas
Safety Act, with the safety of the region as the highest priority .
In particular, for thermal power stations located in special disasterprevention areas such as petrochemical complexes, JERA is taking thefollowing measures depending on the station’s scale.

◦Establishment of management systems through the appointment of a disaster prevention manager and a deputy disaster prevention
manager and the creation of disaster prevention regulations◦Installation of disaster prevention equipment and materials, such as chemical fire trucks, oil recovery and oil fence vessels by the Self-Defense Disaster
Prevention Organization and the Joint Disaster Prevention Organization, and deployment of disaster prevention staff necessary for this purpose◦Establishment of reporting systems and other systems for disaster prevention◦Establishment of emergency disaster systems that can respond flexibly in the event of a disaster

Seismic
Countermeasures

When we construct new thermal power stations, we implement
earthquake-proof designs based on the Building Standards Act, theFire Service Act, and other relevant legislation as well as Rules of Quality
Assurance for Safety of Nuclear Power Plants (JEAC) for thermal power
stations, and confirm seismic performance through periodic facility
inspections after construction. We also implement individual measures
as needed in light of facility damage incurred in past earthquakes.
Additionally, for earthquakes announced by public organizations
like the Central Disaster Prevention Council, aseismic evaluation forimportant facilities for each power plant is performed and measures
such as aseismic reinforcement are implemented to avoid long-term
stoppage due to collapse and earthquake damage. In addition, whenearthquake predictions are newly received, we will examine the validity ofthe existing seismic countermeasures and consider necessary changes.

Examples of Individual Measures Reflecting Facility Damage Incurred in Past Earthquakes◦Building reinforcement (main turbine building and main
administrative building) based on old aseismic design
standards◦Measures against sloshing*1 of fuel tanks (reinforcing
floating roof function -> forming double-deck)
Measures against foundational differential settlement fortransformers, fire extinguishing pipes, etc.

Floating roof (single-deck)

Floating roof (double-deck)*1 The fuel oil in the tank fluctuated due to the relatively long period ofvibration from the outside caused by the earthquake. This oscillation may break the float roof of the fuel tank or cause the fuel oil to overflow from the tank.

Main Facilities with Aseismic Reinforcement◦Stacks◦HRSG (Heat Recovery Steam Generator)
Support Structure◦LNG Carburetor Structure and LNG Pipe
Bridge◦Switchyard*2 buildings*2 Opening/closing of electric circuit paths by aswitchgear such as a circuit breaker installed ina power station

Aseismic reinforcement forchimney at Anegasaki Thermal
Power Station

Futtsu Thermal Power
Station

Aseismic
reinforcement for
HRSG

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Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Creation: ESG
S: Safety and Health46

Corporate Information

Safety and Health
Safety Measure
for LNG
Terminals

At our LNG terminals, in preparation for the unlikely event of an LNG
leakage, safety measures are being implemented based on the following
3 concepts: (1) leakage prevention, (2) early detection of leakage, and(3) preventing leakage from spreading. We also make considerations
for the handling of fire, for example adopting explosion-proof structures
for the electric articles around LNG facilities and restricting the use offlames in established control zones (including special control zones).
We have been operating safely for over 40 years since theintroduction of LNG. We strive to further strengthen our safety measuresand take all possible measures in our operation.

Health Control
SystemHealth Control System Chart
General managers ofsafety and health

Main Safety Measures

Direction

MeasureBased on our understanding that protecting the health of our employees
is the crucial basis of our continued existence, Safety and HealthCommittees installed at each place of business review measures toensure employee health, and supervising divisions and health andhygiene staff members take the lead in implementing various initiatives
to maintain and promote employee health based on the results ofthe committees’ reviews. We assign industrial physicians and publichealth nurses to our health care offices to maintain health systems thatprovide individualized care and follow-up to our employees.
Direction
Reporting, coordination

Supervising divisions

Direction,
recommendation

Safety and Health Committees

Course of Action

Health managers
Leakage Prevention

Active adoption of materials resistant to cryogenic temperatures, and welded structures

Early Detection of
Leakage

Installation of gas detectors, low temperature detectors, on-site monitoring cameras, and constantly monitoring informationfrom these devices in the central control room

Prevent leaks fromspreadingInstallation of barriers around ground tanks, vaporization control facilities (Hi-Ex Facilities), and leakage gas diffusion facilities(water curtains), etc.

Important Safety and
Health Data
FY2019Industrial
accidents:

7

Number of
fatalities fromindustrial
accidents:0

We own many thermal power generation facilities and fuel facilities,
and thus continuously implement efforts to foster widespread safety
awareness to ensure the safety of our employees as well as theemployees of affiliates and contractors who work at the facilities.
Our thermal power generation facilities and fuel facilities containmany pieces of machinery and equipment, and the potential danger of
each must be understood and safety measures must be taken in daily
patrols, facility maintenance, and other work around them.
We conduct danger exposure training to enhance employees’
sensitivity to the potential danger of each piece of machinery andequipment, and to enable them to practice protecting themselves.
Specifically, we expose trainees to dangerous situations createdby simulators in an effort to teach them how to avoid causing suchsituations.
We also work together with affiliates and contractors to deploy
safety activities such as sharing information about safety on properties
and conducting patrols and study sessions to ensure safe working
environments.

Instruction,
coordination

Guidance, recommendation, advisory
Circulation of meeting minutes

Safety and health promoters
Instruction,
development

Reporting, coordination

Workplace managers
Instruction

Fostering Safety
Awareness

Instruction, development

Initiatives to
Maintain andPromote Health

Measures for
Mental Health

Health care offices

Outside medical facilities(primary care physicians)

Medical examinations, etc.
Disease control Safety and health education Other

Employees

Receiving examinations

We have established and are making systematic efforts on focusedactions to take at each place of business based on policies and plans
for safety and health activities. Specifically, we are intensifying measures
to prevent health problems caused by overwork through efforts suchas warning departments that record too many overtime hours, andsending specific individuals to consultations with industrial physicians.
Additionally, health and hygiene staff members meet with andprovide rigorous health guidance to people in whom regular medical
examinations have detected anomalies, and we focus on measures
to prevent lifestyle-related diseases and other illnesses through such
efforts as disseminating information to foster health awareness among
employees during National Worker Health Week.
Our measures for mental health include providing mental healtheducation to general workers to enable them to prevent mental
health issues (provide self-care), and conducting stress checks for all
employees. We also educate management personnel for the purposeof early detection and early treatment (what is known as “line care” forsubordinate employees).
Note that the results of stress checks are compiled, analyzed, andused to improve working environments.

JERA GROUPCORPORATE COMMUNICATION BOOK 2020

Contents / Editorial Policy

Value Creation

Strategies

Foundation for Value
Corporate Information
Creation: ESG
S: Coexisting with Local Communities

47

Coexistingwith Local
Communities
Basic Approach

Communication
with Local
Communities
JERA’s Denryoku
Kan (Museums of
Electricity)◦Kawagoe Denryoku
Kan Tera46(Kawagoe Thermal
Power Station in the
town of Kawagoe,
Mie Prefecture)◦Hekinan TanTopia(Hekinan Thermal
Power Station in thecity of Hekinan, Aichi
Prefecture)◦Chita Denryoku Kan(Chita museum ofElectricity in thecity of Chita, Aichi
Prefecture)

We proactively engage in dialogue with local communities and establish
strong, trust-based relationships in an effort to continuously develop
alongside each other. We intend to contribute to the development ofsociety as a whole through social contribution activities tailored to local
communities and business activities that respect the nature, history,
culture, and customs of each and every country and region in which
we conduct business.

We intend to create opportunities for various communication at points
nationwide in order to develop alongside local communities while
responding to their views and expectations.

Environmental
Conservationand Scenery
Preservation
Measures at
Thermal Power
Stations

The thermal power stations we own throughout Japan implement
measures to preserve scenery in consideration of the impact ofoperations on the surrounding environment. We have implemented
landscape simulations for the chimneys and the main building andselected the shape, color, etc.
We are also actively involved in staying green and are striving topreserve the environment by planting trees at power station sites, etc.,
to harmonize with nature.
Our Yokohama Thermal Power Station won the Chairperson’sAward of the Japan Greenery Research and Development Center at
the FY2019 National Awards for Factory Greening.

Contributing to Local Communities Through Denryoku Kan
The three Denryoku Kan (museums of electricity) operated by JERA are
attached to thermal power stations we own; through them, we provide
tours of the power stations to schools, local community groups, andcompanies throughout the year, interact with local communities, andpromote understanding of our business activities.
The Denryoku Kan convey the importance of electricity, power
generation, and energy, disseminate information about our initiatives
to protect the environment, and host mental training, educational, andinteraction events for the young minds of the future to provide them with
fun opportunities to think about energy, recycling, and the environment.

Yokohama Thermal Power Station

Cleanup and Environmental Beautification Activities
JERA’s thermal power stations and other places of business work
together with affiliates and local governments to proactively participate
in cleanup and environmental beautification activities in the surrounding
communities.

Kawasaki Thermal Power Station

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Strategies

Foundation for Value
Corporate Information
Creation: ESG
S: Coexisting with Local Communities

48

Coexisting with Local Communities
Overseas/
Affiliate
Initiatives andContributions to
SDGs

We invested in TeaM Energy Corporation, an affiliate in the Philippines(JERA and Marubeni each have a 50% stake).
For many years, TeaM has implemented CSR activities throughthe nonprofit entity TeaM Energy Foundation Inc. (TEFI). TeaM hasdeveloped various initiatives to contribute to the resolution of social
issues in the Philippines, namely to resolve the problems of poverty
and protect the environment, but also including support for education,
medicine, and drug eradication.
As in other years, TeaM’s activities in FY2019 were focused infour areas: electrifying unelectrified communities and homes, theenvironment, education, and social contributions. TeaM will continue
to make proactive efforts to contribute to the achievement of SDGs.
A TEFI activity in the Philippines

Contribution Area

Description of Main Efforts

Electrifying unelectrified
communities and homes

TeaM participates in the Philippine government’s project to electrify unelectrified communities (aiming for 100%household electrification by 2022) and provides support for electrification in the form of solar panels and storage
batteries for villages that are distant from the power grid and households that are unelectrified for economic
reasons. TeaM also provides support for introducing agricultural and food processing machinery powered byelectricity obtained from solar power generation, education and funds to start businesses in local communities,
and other support for the continuous development of these communities keyed by electrification.

Environment

Education

Social Contributions

TeaM collaborates with many stakeholders to implement environmental protection activities with the aim ofpreserving biodiversity. Activities include constructing a visitor’s center in a nature preserve (a joint project with
the Philippine Department of Environment and Natural Resources), cooperating with surveys on numbers of wild
birds, providing support for environmental education and protection events at elementary schools adjacent topower stations, and measures to prevent forest fires in forest communities.

Led by members of TeaM Energy, who volunteered to repair school facilities (a total of 184 participants repainted
chairs, desks, and walls at three schools), TeaM provides various support for education, including donatingteaching supplies and providing support for adding classrooms to schools and for students who have difficultyattending school for economic reasons.

TeaM’s activities include providing supplies to areas afflicted by typhoons, earthquakes, and other disasters,
disaster volunteer activities by the members of TeaM Energy, and supporting the supply of medicines and drug
eradication in communities near power stations. In fiscal 2020, TeaM provided personal protective equipment,
antibody test kits, and other medical supplies to communities near power stations as support for novel coronavirus
measures.

Providing medical supplies in Bangladesh

TOPICS Providing Medical Supplies in Bangladesh
We contributed to sustainable economic development in Bangladesh by developing new gasfired power generation business and investing in Summit Power International Limited (“Summit
Power”), the country’s largest independent power producer (IPP).
Like other countries, Bangladesh experienced a shortage of medical supplies due tothe spread of the novel coronavirus throughout the world. In response, we began providing
medical supplies free of charge in July 2020. To date we have provided two ambulances,
three artificial respirators, and personal protective gear including protective suits and masks.
We engaged in these efforts in response to a request from Summit Power to provide support
for novel coronavirus countermeasures in Bangladesh. We sourced the medical supplies fromcompanies that endorse our efforts. We intend to continue contributing to the development of
the global community through social contribution activities rooted in the countries and regions
where we conduct business.

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Strategies

Foundation for Value
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S: Stakeholder Engagement

49

Corporate Information

Stakeholder
Engagement

Basic Approach

Main Stakeholders

We conduct business activities amid our involvement with our stakeholders, which include customers, business partners, local communities, shareholders, investors, andothers. We fully understand the social responsibility we are expected to fulfill as a corporation as well as the demands and expectations of our stakeholders, and strive for active
communication to respond to these obligations in good faith.
We intend to continue improving our business activities and services through lively, two-way communication with our stakeholders. Furthermore, our efforts to disclose
both financial and non-financial information in a timely, appropriate manner will lead to proper assessments and valuation by our stakeholders in addition to helping us achievesustainable growth and maximize our corporate value.
Demands and Expectations

Initiatives

Results◦Stable supply of electricity◦Energy supplied in pursuit of customer satisfaction◦Decarbonization/expansion of renewable energy◦Promotion of ESG initiatives

We provide a stable supply of energy to customers throughout the world using value chains fromfuel procurement to power generation and electricity and gas sales based on our mission to provide
cutting-edge solutions to the world’s energy issues.
We also establish strong, trust-based relationships by continuing to respond to customer
expectations on a foundation of ESG-conscious business management.

◦Management activities◦WebsiteBusiness
partners◦Fair and equitable trade◦Intensification of collaboration

We promote CSR-conscious procurement activities in an effort to fulfill our social responsibilities
and engage in fair and equitable trade with our suppliers.
We also promote mutual diligence and maintain close communication with our suppliers toward
our mutual development.

◦Procurement policy briefings◦Collaboration with other companies indomestic and global businesses◦Joining organizations such as World Forum
Offshore Wind

Local
communities◦Environmentally conscious business management◦Consideration of the human rights of local community
members◦Contribution to local economies◦Job creation and skill development in the areas in which
we do businessWe proactively engage in dialogue with people in local communities where our power stations arelocated and establish strong, trust-based relationships in an effort to continuously develop alongsideeach other.
We also intend to contribute to the development of society through social contribution activities
tailored to local communities and business activities that respect the nature, history, culture, andcustoms of each and every country and region in which we conduct business.

◦Power station tours◦Participation in local community events◦Provision of medical supplies outside Japan

Shareholders andinvestors◦Improvement of corporate value◦Strengthening of earning power

We fully disclose information and engage in dialogue with our shareholders and investors in an effort
to further understanding, and improve our corporate value to respond to their expectations.

◦Shareholders meetings◦IR briefings

Employees◦Securing and developing global, strategic humanresources◦Management of employee health and workplace safety
and sanitation◦Respect for diversity◦Promotion of work-life balance◦Elimination of discrimination and harassment◦Improvement of reporting system effectivenessWe seek to ensure the health and safety of our employees and create comfortable, positive working
environments on a foundation of respect for human rights. Additionally, to enable our diverse humanresources to exhibit their skills to the fullest, we intend to maintain our system that enables them tochoose their own career paths and work styles in addition to proactively moving forward with various
measures including hiring global human resources, and promoting active participation by womenand the employment of people with disabilities.

◦Creation of inclusive organizations◦Support for autonomous career development◦Promotion of work styles tailored to diverse
needs◦Lunch meetings between the company
president and young/mid-level employees◦Employee satisfaction surveys

Customers

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Strategies

Foundation for Value
Creation: ESG
S: Communication with Employees

Corporate Information

50

Communication with Employees

Basic Approach

Lunch Meetings
Between the
Company
President andYoung/Mid-Level
Employees
FY2019 Results
Lunch Meetings
HostedParticipants

33

198(19 management
personnel, 179
general workers)

One Coin Café

As a company that came into being from the merging of two electric
power companies with different corporate cultures, our most importanttask is to come together as one team and blend together in the truest
sense of the phrase so that we can maximize the synergy of ourconsolidation and achieve growth. We are planning and developing
various programs for internal exchange in a continuous effort to further
our blending and consolidation.
We began hosting regular lunch meetings between President Onoda
and young and mid-level employees in June 2019. Providing theseopportunities for direct dialogue with the company president helps
increase employees’ motivation to do their jobs, inculcate understandingof company policy and measures, and promote exchange between
fellow members of the company. Additionally, these meetings are good
opportunities for the president to hear about employees’ dreams,
fears, complaints, and other thoughts about JERA firsthand; themeetings have been meaningful for both the president and members of
the company. (Due to the pandemic, the meetings have not been held
since March 2020.)

Participants

11

1,750

Employee
Satisfaction
Surveys

Post Anything stations are set up to enable employees to freely andanonymously share anything—from questions and concerns tosuggestions for improvement, fears and worries, and good news. The
posts are reported to management, and are provided to the entire
company as feedback alongside action proposals from supervising
divisions. We have received many posts to date, and they have resulted
in answers to problems as well as improvements to everyday work.
We conducted an employee satisfaction survey in August 2019 to gain
a qualitative understanding of our employees’ opinions and motivation
for their work and other information about their circumstances.
We used the survey to confirm employee satisfaction in individual
categories such as “Work and Assessments,” “Working Conditions andEnvironment,” and “Loyalty to the Company.” We intend to consider
courses of action for improving on the issues brought into sharp relief
by the survey, and to use the issues as fundamental data for formulatingcompany policy and management strategies in an effort to create more
appealing workplaces.
Note that we intend to conduct employee satisfaction surveys ona regular basis (approximately once per year) and use the results toimprove our corporate value.

Other Measures to Invigorate Communication

We regularly host an event entitled “One Coin Café” in our offices toinvigorate communication and increase contacts between employees.
The appetizing aroma of coffee attracts many employees to thesedine-in areas, and the unstructured conversations that occur during
these gatherings open avenues to ideas and innovation. (Due to thepandemic, the events have not been held since March 2020.)

FY2019 Results
One Coin Café
Events Hosted

Post Anything

At 15:00, President Onoda appears wearing anapron, ready to serve coffee and snacks, and offer
congratulations for hard work to the employees whogather.

MeasureDescription

Company newsletter

In May 2020, we published a company newsletter entitled “Things to Know About JERA.” The newsletter highlighted thepeople and appeals of individual workplaces in an effort to improve employee motivation and help them design their career
paths.

Website for
employee-initiatedcommunication

We operate a website on which employees share information with each other. The website includes an “Everyone’s aReporter!” page for introducing events at headquarters, branch offices, and power stations in real time, a “Workplace
Watch” page on which young employees at headquarters introduce their workplaces, and more.

President’s blog

A blog regularly updated by President Onoda.

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Corporate Information

Corporate Information

Thermal Power Stations in Japan(as of October 31, 2020)❶

List of Thermal Power Stations1 (Total output and fuel type listed for each thermal power station)■◆ LNG ◆ Coal ◆ Heavy oil ◆ Crude oil ◆ LPG ◆ Utility gas ■ LNG terminal2 ■ Coal terminal❶ Joetsu

2.38 GW ◆ Yokohama❷ Hirono

4.4 GW ◆◆◆ Higashi-Ohgishima❸ Hitachinaka

2 GW ◆

Hitachinaka Kyodo❹ (Hitachinaka Generation)

0.65 GW ◆(Scheduled to start operation in fiscal 2020)❺ Kashima

5.66 GW ◆◆◆❻ Chiba

4.38 GW ◆❽ Anegasaki❾

Anegasaki (JERA Power Anegasaki)(Scheduled to start operation in fiscal 2023)

3.6 GW ◆◆1.941 GW ◆2 GW ◆

 Kawasaki

3.42 GW ◆ Oi

1.05 GW ◆ Shinagawa

1.14 GW ◆ Atsumi

1.4 GW ◆◆ Hekinan

4.1 GW ◆❼ Goi (Goi United Generation) Replacement is being planned

3.541 GW ◆◆◆Taketoyo <JERA Power Taketoyo>(Scheduled to start operation in fiscal 2021)

1.07 GW ◆ Chita

3.966 GW ◆

 Chita Daini

1.708 GW ◆

 Shin-Nagoya

3.058 GW ◆

 Sodegaura

3.6 GW ◆ Nishi-Nagoya

2.376 GW ◆

 Futtsu

5.16 GW ◆ Kawagoe

4.802 GW ◆

 Yokkaichi

0.585 GW ◆Yokosuka (JERA Power Yokosuka)(Scheduled to start operation in fiscal 2023)

 Minami-Yokohama

1.3 GW ◆1.15 GW ◆

1

2

■
■■
■

■■
■■

⓴
❷

⓳

■

Sea of Japan

Names of power stations. Names of installers (SPCs) listed
in parentheses.
Includes jointly operated terminals in the Chita and
Yokkaichi areas.

❸❹❺

Pacific Ocean

⓲
⓱

❻
❼

⓰

■⓯

⓮
■⓭

⓬
Kawagoe Thermal Power Station❿■⓫

East China Sea

Futtsu Thermal Power Station■❽❾

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Strategies

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Corporate Information

Overseas Businessand LNG Supplying
Countries(■ in gray)

Thermal power
generation business

Renewable energy
business

Renewable energy
business

Optimization
business

Netherlands
Rietlanden Coal Terminal

USA

UK
Gunfleet Sands Offshore Wind IPP

Tenaska Gas Thermal IPP

Zenobe Battery Storage

Carroll County Gas Thermal IPP

JERA Global Markets(Optimization and Trading)

Japan

Qatar
Ras Laffan B Gas Thermal IWPP
Ras Laffan C Gas Thermal IWPP

Cricket Valley Gas Thermal IPP
Linden Gas Thermal IPP

TaiwanCompass Gas Thermal IPP

Chang Bin/Fong Der/Star Buck Gas Thermal IPP

Freeport LNG

Formosa 1 Offshore Wind IPP

JERA Global Markets(Optimization and Trading)Formosa 2 Offshore Wind IPP

Mesaieed Gas Thermal IPP

Philippines

Umm Al Houl Gas Thermal IWPP

MexicoTeaM Energy IPP

UAEValladolid Gas Thermal IPP

Umm Al Nar Gas Thermal IWPP

Indonesia

Oman

Falcon Gas Thermal IPP

Paiton Coal Thermal IPP

Australia

Sur Gas Thermal IPP

Cirebon Coal Thermal IPP

Darwin LNG

India

Gorgan LNG

ReNew Power Wind and Solar Power

Wheatstone LNG
Ichthys LNG

Bangladesh

Vietnam

Summit Power IPP

Phu My Gas Thermal IPP

ThailandSingapore

EGCO IPP

Ratchaburi Gas Thermal IPP

Cogeneration Project in Industrial AreasWind Power IPP

Solar Power IPP

AT Biopower Rice Husk Biomass Thermal IPP

JERA Global Markets(Optimization and Trading)(as of October 31, 2020)
IPP: Independent power producer
IWPP: Independent water and power producer
SPP: Small power producer* Includes reloading (FY 2019)

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Company Organization

Strategies

Foundation for Value
Creation: ESG

Corporate Information

53

Corporate Outline(As of November 1, 2020)

Corporate Auditor

Auditor’s Section

Corporate
Name

Internal Audit Group[Headquarters]
Nihonbashi Takashimaya Mitsui Building 25th Floor 2-5-1 Nihonbashi,
Chuo-ku, Tokyo
103-6125
TEL: 03-3272-4631 (Switchboard)
FAX: 03-3272-4635

Corporate Strategy Department

Chairman/President◦Planning Group◦Enterprise Value Creation Group

Strategy Section◦Information and Communication◦Global Human Resources◦Information Security Section◦ICT Strategy Group◦Research Group◦Digital Transformation Section

Technology Management Group

Finance and Accounting Department◦Accounting Group◦Finance Group◦Structured Finance Group◦Business Development Section

Location

Business support and Solution Department◦Diversity & Inclusion Section◦Labor Affairs and Human Resources Group◦Global Human
Resources Group◦General Affairs Group◦Legal Group◦Overseas Power and Energy
Infrastructure Development Group◦Renewable Energy Development◦Upstream Resources
Business Group◦LNG Transaction GroupGroup

Optimization Department◦Optimization Strategy Group◦Energy Solution Sales Group 1◦Energy Solution Sales Group 2◦Short-term Optimization Group◦Coal, Oil & Biomass Fuel Group◦Fuel Operation Management Group◦Power Operation Management Group◦LNG Portfolio Strategy Section◦LNG Contract Management Group 1◦LNG Contract Management Group 2

Establishment
Date

April 30, 2015

CapitalJPY 5 billion yen

Shareholding
Ratio

TEPCO Fuel & Power, Inc. 50%
Chubu Electric Power Co., Inc. 50%

Business
Details◦Thermal Power Generation Business◦Renewable Energy Business◦Gas & LNG Business◦Engineering & Consulting related to the above businesses, etc.

Number of
Employees

4,260 Employees (As of March 31 2020)

O&M Engineering Department◦O&M Engineering Strategy Group◦Digital Power Plant Promotion Section◦O&M Engineering Group◦O&M Engineering Sales Group◦Purchasing Group

East Japan BranchWest Japan Branch[East Japan Branch]
Hibiya Kokusai Building 9th Floor, 2-2-3 Uchisaiwai-cho, Chiyoda-ku,
Tokyo
100-0011
TEL: 03-3272-4631
FAX: 03-6363-5781[West Japan Branch]
JP TOWER NAGOYA 18th Floor, 1-1-1 Meieki, Nakamura-ku,
Nagoya-shi, Aichi
450-6318
TEL: 052-740-6842
FAX: 052-740-6841

Business Development Department◦Business Development Strategy Group◦Business Management Group◦Domestic Business Management Group◦Domestic Business Development GroupJERA Co., Inc.

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Corporate Information

List of Group Companies
As of October 31, 2020

Main Domestic Related Companies

Main Overseas Subsidiaries

Name◦Hitachinaka Generation Co., Inc.

Business Description
Operation and maintenance of thermal power stations, and electricity
sales

Name

Location◦JERA Power International B.V.

Netherlands

Business Description
Investing, financing, securities, etc. for overseas
power generation business, etc.

◦LNG Marine Transport Co., Ltd.

Marine transport of liquefied natural gas, and other agency business◦JERA Australia Pty Ltd

Australia

Investing in Australian fuel upstream business◦JERA Power YOKOSUKA LLC

Power generation at thermal power stations, and associated business◦JERA Global Markets Pte. Ltd.

Singapore

Fuel trading business, and associated business◦JERA Power ANEGASAKI, LLC

Power generation at thermal power stations, and associated business◦Tokyo Timor Sea Resources Pty Ltd

Australia◦JERA Asia Pte. Ltd.

Singapore◦JERA Power (Thailand) Co., Ltd

Thailand◦Chita LNG Co., Ltd.
◦Goi United Generation LLC

Receiving, storage, and gasification of liquefied natural gas, anddelivery-related operations

for thermal power generation, disaster prevention and response forpower stations, etc.

◦JERA Power TAKETOYO LLC◦Soma Kyodo Power Company, Ltd.
◦KASIMA KYODO ELECTRIC POWER Co., Ltd.
◦Kimitsu Cooperative Thermal Power Company, Inc.
◦Joban Joint Power Co., Ltd.

Development of electricity-related and gas-related
projects in Asia
generation

operation/maintenanceandengineering services in Thailand (investing in the
aforementioned businesses)

Petroleum product sales, operation and management of fuel facilities◦Fuel TEPCO, Ltd.

business

PowerPower generation and electricity supply at thermal power stations, andassociated business

Bayu-Undan/Darwin LNG and gas field development

Managing Power and Fuel related business in the◦JERA Americas Inc.

USA

Americas (investing, financing, securities, etc. forpower generation business in the USA, etc.)

Power generation at thermal power stations, and associated business
Operation and maintenance of thermal power stations, and electricity
sales
Operation and maintenance of thermal power stations, and electricity
sales
Operation and maintenance of thermal power stations, and electricity
sales
Operation and maintenance of thermal power stations, and electricity
sales◦JERA Freeport Holdings Inc.

USA

Investing, financing, securities, etc. for the Freeport
Gas Liquefaction Project in the USA

Are there any limits to energy?
When you see players compete, boundless strength to do yourvery best wells up within you.
At JERA, we feel the same way—we are Japan’s largest power company,
and we are expanding the range of our activities throughout the world.
We are confident that there are no limits to our efforts to use energy technology
to set the world on the path toward a better future.
In the same way that a baseball game can turn on a single pitch, we intend
to make waves in the world with our technical capacity and ideas.
Taking energy into a new era.
Promoting culture and sports through baseball.

JERA is devoting its energy to cheering
for the Central League.

JERA Co., Inc.
Nihonbashi Takashimaya Mitsui Building 25th Floor
2-5-1 Nihonbashi, Chuo-ku, Tokyo 103-6125
TEL: 03-3272-4631 FAX：03-3272-4635
www.jera.co.jp

We identify with the business objective of Nippon Pro Baseball—promoting baseball to contribute to the development ofsports, thereby contributing to prosperity in Japan and international goodwill—and are a special sponsor of the Central
League, which continues its steadfast journey of developing baseball.