Chapter 4 Sustainability
Voice
first challenge toward addressing
Special Feature Japan'ssociety and the future stated in our goals!

Sustainable Charter Flight

Introduction

Realizing a continuous transformation of our flights
together with our customers

The JAL Group aims to create social and economic value by building relationships and connections
through air transportation that goes beyond business realms. This is to realize "an society and future
where many people and goods freely move around" as set forth in our goals.
The JAL 2030 Sustainable Charter Flight (hereinafter the “Flight”), which operated in November 2022,
symbolizes this concept
Working with various stakeholders, we took a challenge to operate a flight that leads
to a sustainable future.

The JAL Group Value Creation Story

Preparations for this Flight were carried out under theslogan "Together with our Customers."
Our customers kindly cooperated with carbon
offsetting to achieve Net Zero CO2 Emissions.
To further reduce CO2 emissions, our customers also
made efforts to reduce baggage weight, get to the
OGAWA Noriko,boarding gates early for on-time departures, pre-cancel
Vice President ofinflight meals in advance, make reservations for inflight
ESG Promotion
sales in advance, and we offered digitalized inflightmagazines. In order to recycle the paper cups used for inflight drinks, we asked
customers to cooperate in waste segregation. We also reduced the volume ofplastics by changing the lid of the paper cups from plastic to paper.
With the understanding and cooperation of our customers, this Flight was
successful. This will not be a one-off effort but will be expanded to international
flights and those operated by the Group airlines.
By taking advantage of the awareness and discoveries gained through theimplementation of this Flight, we will realize sustainable flights for 2030 and work
together with the JAL Group to promote initiatives to create connections throughair transportation.

■ Efforts to Provide Transport and Connections to Solve Social Issues
Offer more choices(By various means)
Remove constraints(By everyone)

Bring Together Initiatives Related to Sustainability
While transportation is convenient, the environmental impact of flight

Improving
accessibility
p.50

Promotion of DEI
p.69

Regional
Revitalization
p.63

of resources, promotion of diversity equity and inclusion (DEI), improving

tumblers made from Okinawa sugarcane pomace distributed as giveaways.

In terms of regional revitalization, we offered tours that allow visitors toaccessibility, and regional revitalization.

Drinks were served in recyclable paper cups using paper lids, focused on theexperience the charms of Okinawa while taking the environment into

Practicing the Five Pillars for Future Flights

operations has become a major issue.

Effective Use of
Limited Resourcesp.101

texture and durability. The cups and lids were collected after use.

consideration.

We served hamburgers made with soybean meat patty, which has a low

In addition to preparing hotels with sustainable amenities made from recycled

The Airbus A350-900, a state-of-the-art fuel-efficient aircraft was used for thisenvironmental impact, as well as other menus that took water consumption

plastic and Okinawa sugarcane pomace, a portion of the tour fee was

Flight.

and health into consideration.

donated to preserve the natural environment in Okinawa.

In addition to transportation, we also aim to create social and economic value

Approximately 40 percent of the fuel used was sustainable aviation fuel (SAF),

Many of employees played active roles in this Flight.

As the slogan of this Flight was A Sustainable Future Together, a future Net

by facilitating the flow of people, business, and goods, which are relationships

which reduces CO2 emissions by nearly 80 percent compared to conventional

Half of the cabin attendants were men, and employees with hearing

Zero CO2 Emissions flight was realized not only by the JAL Group but also by

and connections, through initiatives to offer more choices, remove constraints,

jet fuel.

impairments also served as cabin support staff and presented the outline ofco-creating with our customers, business partners, and local communities.

and create goals by collaborating across business realms.

We achieved Net Zero CO2 emission by devising operational improvements

inflight talk session with sign language.

The JAL Group will further accelerate our efforts to make all flights sustainable

This Flight, operated between Tokyo (Haneda) and Okinawa (Naha) insuch as efficient engine operations, and our customer’s cooperation in JAL

Cabin attendants with in-house accessibility certifications and airport staff

in order to realize “an society and future where people and goods freely movearound".

carbon offset, which compensated the CO2 emissions during the flight.

with Care- Fitter certifications serviced on the day, which promotes DEI andWith Net Zero CO2 Emissions at the top of our list, navigators such as

Regarding inflight services and giveaways, we made effective use ofaccessibility.

Professor Kanie Norichika of Keio University Graduate School, a leading

resources.

researcher of SDGs, participated in this event, focusing on the effective use

Upcycled items such as baggage tags made from used JAL seat covers, andSustainability

The JAL Group has declared Net Zero CO2 Emissions by 2050 to realize asustainable air transportation business.

November 2022, is an action that symbolizes our concept in realizing our goals.

Growth Strategy

Create purpose(Many times)

Net Zero CO2Emissionsp.90

Realizing Japan's First Net Zero CO2 Emissions Flight
One way from Haneda to Naha

Efforts to reduce CO 2

Estimated CO2 emissions

81

Conventional aircraft

Estimated CO2
emission:

100％

JAL REPORT 2023

Fuel-efficient
aircraft

Fuel-efficient
aircraft
Airbus A350

Estimated CO2
Emissions:
Approx

85％

SAF

＋

Flights＋

Net Zero CO2 Emissions:

85％

0％

JAL Carbon
Offset:With the cooperation of all customers in JAL Carbon Offset, thisFlight was able to compensate for CO2 emissions by donating to
CO2 absorption projects.

Top: Hamburgers with soybean meat patty
served as an inflight meal
Top right: A souvenir baggage tag made fromused JAL seat covers and leftover Kariyushi fabricinvented by JAL’s engineers.
Bottom right: Cups and lids made from paper that
acquired international certification in consideration
with forest resources

In order to take advantage of thediverse abilities of our employeeswith various origins, two of our
JAL SUNLIGHT’s employees withdisabilities served as cabin support
staff on this Flight.

Data Section

15％

The use of Airbus A350 resulted
in a reduction of approximately 15
percent from conventional aircraft.
Net Zero CO 2 Emissions wereachieved with the use of SAF and
JAL Carbon Offset.

For more information about JAL2030 Sustainable Charter Flight, please visit our website.
WEB

https://www.jal.com/en/sustainability/sustainableflight221118/

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Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Environment

Respect for Human Rights-Enhance corporate value by increasing social and economic value through the promotion of ESG strategies
We will promote our ESG strategies while always being aware of how the JAL Group should be from social
perspectives and how we can leverage our capital and strengths to influence the environment and society.
We will accelerate a JAL-like sustainability by determining our social role in order to realize a future in which
everyone can feel fulfilled and hopeful.

AOKI Noriyuki, Chair of Sustainability Promotion Committee(1) Overall Sustainability

Introduction

Sustainability Initiatives

Governance

The JAL Group Value Creation Story

The Sustainability Promotion Committee, chaired by the Senior Vice President of theBoard of Directors
General Affairs Division, is held on a monthly basis to review the progress of initiatives
and discuss them among the relevant officers.
President
The Sustainability Promotion Council, established in 2021 with the President as Chair
and attended by all Executive Officers, conducts management reviews and promotes
Sustainability Promotion Council
Chair: President,
ESG management under the following topics.
Participants: All Executive Officer(held once a quarter)● Determine important issues and annual targets for sustainability initiatives, andmonitor and evaluate the progress
Sustainability Promotion Committee Chair: Senior Vice President ofGeneral Affairs Division,● Determine risks and opportunities for climate change(held once a month)
Participants: relevant officers● Monitor and evaluate Environmental Management System (EMS)● Monitor and evaluate human rights due diligence
Sustainability Promotion Vice President Committee Participants: relevant vice presidents(held once a month)
The Sustainability Promotion Council reports and discusses the agenda of themeeting with the Board of Directors. They will consult the important matters related
Sustainability Staff Committee
Participants: Persons in
to ESG promotion with the Board of Directors in order to enhance corporate value.
charge of relevant departments(held once a week)
In FY2022, TCFD, the results and reviews of DJSI, the ESG evaluation outline,
materiality reorganization, initiatives based on external environmental changes andsocial requirements, additional and revised targets, among others, were discussed and reported to the Board of Directors twice in total. Based on
the discussions in the Sustainability Promotion Council, ESG and GX strategies were separately discussed at the Board of Directors twice in theprocess of formulating the Medium-Term Management Plan Rolling Plan.

Strategies
Growth Strategy

Based on the value creation story, the ESG strategy is positioned as the topmost strategy in the Medium-Term Management Plan Rolling Plan 2023.
It promotes company-wide initiatives.
Please see pp.49-50 for more information on ESG strategy, pp.67-74 for the human resources strategy, and pp.75-76 for the GX strategy.
* This chapter mainly refers to TCFD, information based on the recommendations of the TNFD, effective use of limited resources (reduction of single-use plastics and food waste),and efforts to respect human rights based on human rights due diligence.

The eight reorganized materiality issues are as follows. Please see pp.11-12 for details on materiality.

Key Sustainability Promotion Committee Members
From left in the back row, OMORI Yasushi, Senior Vice President of Mileage and Lifestyle Business, SAEDA Naohito, Senior Vice President of Human Resources,
ABE Eri, Deputy Senior Vice President of Sales and Marketing, NAKAGAWA Yukio, Senior Vice President of Procurement, From left in the front row, TOTTORI
Mitsuko, Senior Vice President of Customer Experience Brand Communication, AOKI Noriyuki, Chair of Sustainability Promotion Committee and Senior Vice
President of General Affairs, SAITO Yuji, Senior Vice President of Corporate Planning Chief Financial Officer.

▶Review of FY2022

Initially when the Medium-term Management Plan was announced,
the JAL Group focused on its own intentions and reasoning

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JAL REPORT 2023

Regional Revitalization
Creating mobility andconnections throughbusiness activities

Promoting economic growth and international mutual understanding through tourism
Bringing prosperity and vitality to the community

Fulfilled Hearts

Enhancing happiness and cultivate an enriched life through free movement and connection of goods and people

Resilience through Diversity

Building a diverse society in which people, cultures, values, and modes of behaviors are respected and new values are created

Safe and Secure Society

Creating, developing, and protecting a safe infrastructure of the skies

Aviation Infrastructure

Passing on the basis of sustainable air transport to the future

GX strategy

Precious Earth

Preserving and restoring the global environment, which serves as a source of people, sales and distribution channels, and to pass it on to the next generation

Human resources strategy

Human Capital

Enhancing capacity for value creation and productivity of all JAL Group employees

Foundation forvalue creation

Governance (Corporate Governance/JAL Group Code of Conduct)

Risk Management
The JAL Group defines risk as an event or action that interferes with the achievement of the mission, objectives, and goals of anindividual or an organization. Risk surveys and assessments are performed every six months.
The Sustainability Promotion Council deliberates risk management policies and necessary solutions for overall sustainability

Data Section▶Considering the Impact on the Environment and Society

Tourism Nation

Sustainability

ESG is now mainstream across the globe and it is changing rapidly
with the demands of non-financial disclosure and the evolving of
the regulations such as the CORSIA baseline.
In the Medium-Term Management Plan Rolling Plan 2022, the JAL
Group defined its ESG strategy, its long-term business strategy, tosolve social issues and facilitate the flow of people, business, andgoods, and has focused on transforming its business objectives.
While drawing our future image, we are steadily promoting our
initiatives after reviewing our main sustainability initiatives andperformance indicators to promote business activities based on
ESG strategies in business areas other than air transportation.
The JAL Group has disclosed information in line with our initiatives
which lead to the selection and assessment as a constituent of the
ESG evaluation.
In addition, the JAL 2030 Sustainable Charter Flight was a symbolic
initiative and a good opportunity for our employees to experiencesustainable flights as well as for our customers to see, learn, andexperience sustainability.

regarding its ESG strategy. However, gradually the JAL Groupchanged its perspectives to on how the Group should be from asocial outlook and what kind of impact we should exert on to theenvironment and society by leveraging our capital and strengths.
We recognize that business and ESG should not be differentiated.
As ESG is no longer exclusive, we are more aware of the impactthat our business activities have on the environment and society.
Thus we must change in order to continue to be the JAL Group
that our shareholders call for.
The Rolling Plan 2023 positioned the ESG strategy as the topmost
strategy to realize value creation and growth.
Based on the premise of reducing environmental impact, we aim
to resolve social issues such as the decline of community life
and the diminishing sense of well-being through the power of airtransportation and societal connection, which are being reviewed
with the COVID-19 pandemic.
Going forward, we will hone in on JAL's unique efforts to collaborate
across business realms. We hope to make strides toward initiatives
with a sense of purpose that create both social and economic value
through our business activities.
In order to realize an exciting society and future in which people andgoods can freely move around, our employees will work together
while considering the impact on the environment and society.

■Eight Key Materiality Issues Addressed by the JAL Group

governance, including the environment. The details are reported to the Board of Directors.

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Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Environment

Respect for Human Rights

While covering the 17 SDGs, the JAL Group simultaneously organizes the ESG perspectives and the degree of impact through businesses andthe importance for management is discussed at the Board of Directors. In FY2019, the JAL Group established four priority areas, namely theenvironment, people, local communities, and governance. 22 issues were addressed in each area and medium-term targets were set for each of thefour areas and 22 issues. ESG management was promoted to achieve the SDGs.
In FY2021, the four preeminent initiatives (reducing CO2 emissions, reducing single-use plastics, improving the ratio of female managers, and regional
revitalization) were set as management targets (Sustainability). In FY2022, new indicators were added and disclosed along with past performances inorder to promote our management strategy based on our ESG strategy in business areas other than air transport.
On the other hand, as the previous 22 issues in the 4 areas were mainly based on the FSC business, the link to social and economic values were notclear. In FY2023 they were revised into the eight materiality issues.

Regional Revitalization

Fulfilled Hearts

Action Items

Safe and Secure Society

Our company website provides information on key initiatives and achievements up to FY2022 that were included in last year's consolidated report.
WEB

https://www.jal.com/en/sustainability/initiatives_sdgs/

Aviation Infrasructure

Performance Indicators

FY2019 Results

FY2020 Results

FY2021 Results

FY2022 Results

Increase ratio (Passengers)ー-74.2% v.s.FY2019 *Excluding LCC-59% v.s. FY2019 *Excluding LCC-15% v.s. FY2019

Increase ratio (Cargo)ー-30 v.s. FY2019-34% v.s. FY2019-17% v.s. FY2019

Maintenance and development of regional route
networks including outlying island routes

Number of domestic entry points (including code share)

62 points

61 points

61 points

64 points

More than 65 points

Expansion of services provided through increased
contract orders

Number of passenger and cargo flights regarding
ground handling for foreign carriers

87,000 flights

9,000 flights

17,000 flights

29,000 flights

128,000 flights

Promoting the use of domestic flights to in-bound tourists

Number of users

701,240 people

49,188 people

121,844 people

582,180 people

1,505,000 people

Drone logistics and commercialization of eVTOL Air Taxi

Commercialization

ー

ー

ー

ー

FY2023:Commercialization of drone delivery
FY2025:eVTOL commercialization

Promoting air travel to customers who find it difficult
to travel

Ratio of such passengers onboard

0.36%

0.29% (0.8 times v.s. FY2019)

0.64% (1.8 times v.s. FY2019)

0.71% (1.9 times v.s. FY2019)

2.5 times v.s. FY2019 results

Number of wooden wheelchairs which go through metal detectors

478 units

478 units

478 units

508 units

580 units

Enhancing pharmaceutical transportation

Transport weight

610 tons

721 tons +18% v.s. FY2019

1,172 tons +92% v.s. FY2019

1,363 tons +123% v.s. FY2019+50% v.s. FY2019

Promoting Workstyle Research with Outside Stakeholders

Number of member organizations of study groups

ー

ー

ー

52 organizations

200 organizations

Promoting JAL Wellness & Travel

Number of municipal partnerships

ー

ー

ー

4 cases

10 casesStrengthening planning and sales of recycled products
in cooperation with companies outside the JAL Group

Number of affiliated companies

ー

ー

ー

ー

15 companies

Promoting Dokokani Mile

Cumulative number of users

ー

ー

ー

540,000 people

810,000 people

Creating flow of people through the development ofsubscription -type travel programs

Number of users

ー

ー

ー

ー

250% of FY2022

Scope 1 [Aviation] Emissions

9.09 million tons

4.39 million tons

6.19 million tons

8.19 million tons

Less than 9.09 million tons

CO2 emissions per paid ton kilometer (RTK)

1.0648 kg-CO2/ton kilometers1.3763 kg-CO2/ton kilometers1.2751 kg-CO2/ton kilometers

1.0829 kg-CO2/ton kilometers0.8187 kg-CO2/ton kilometers

Scope 2 [Ground facilities] Emissions

57,000 tons

51,000 tons

53,000 tons

56,000 tons

54,000 tons

Percentage of fuel-efficient aircraft

82%

84%

85%

86%

86%

0.004％

1% of all loaded fuel

Increase in domestic passengers and cargo traffic

FY2025 Targets+10% v.s. FY2019

Management targets

Growth Strategy

Creating Relationships
and Connections ThroughMobility

Resilience through Diversity

Key initiatives based on the 8 materiality issues include actions to create mobility and connections through business activities from the perspectivesof increasing options, eliminating constraints, and creating objectives. Global environmental conservation initiatives such as the GX strategy topass on the precious Earth to the next generation, human capital management aimed at by the human resources strategy, and governance as thefoundation for value creation. Metrics and targets are set as follows. It is also possible to set quantitative numerical targets, and we have set items topromote with intention.
Among the disclosed items up to FY2022, prioritized items focused on tracking data trends are reflected in the ESG data.

The JAL Group Value Creation Story

Tourism Nation

Introduction(2) Key Initiatives (Metrics and Targets)

Precious Earth85

JAL REPORT 2023

Ratio of SAF to total fuelLoaded in all five A350
delivery flights

Domestically produced SAF loaded on
domestic scheduled flights

・Loaded on four A350 delivery flights
・Loaded simultaneously on two types ofdomestically produced SAF for domesticscheduled flights

Reduction through JAL Green Operations promotion(CO2 reduction through operational ingenuity)

157,000 tons (1.7% of emissions)

82,000 tons (1.8% of emissions)

142,000 tons (2.3% of emissions)

195,000 tons (2.4% of emissions)

Reduction equivalent to 2.5% of CO2
emissions from aircraft

Number of JAL Carbon Offset website visitors

ーー

Tracked from FY2021

13,122 people (1.5 times v.s. FY2021)

30,000 people (3.4 times v.s. FY2021)

Number of Carbon Offset users

ーーTracked from FY2022

385 people

2,000 people (5.2 times v.s. FY2022)

Reduction ratio of new petroleum-derived singleuse plastic items in in-house standard products
used inflight and in lounges

2.5%

10.4%

25%

45%

100%

Management targets

Use of environmentally friendly materials insingle-use plastics used in airports and cargotransportation*Starting from FY2020

87.6%

90%

91%

100%

Management targets

Reduction of inflight meal waste

Yield improvement

ー

ー

ー

ー

Less than 4.5%

Paper reduction

Electronic AWB (Air Waybill)

ー

ー

25％

62.5％

Finalized JAL flight e-AWB

Reducing total amount of CO2 emissions

Reduction of plastic

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JAL REPORT 2023

Data Section

Effective Use of Limited
Resources

Sustainability

Addressing Climate ChangeManagement targets

86Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Environment

Respect for Human Rights

Introduction

Precious Earth
Performance indicators

FY2019 Results

FY2020 Results

FY2021 Results

FY2022 Results

FY2025 Targets

Precaution of Environmental Pollution

Industrial waste reduction

Final disposal ratio

0.3%

0.6%

0.3%

0.6％

Keep below 1%

Noise Reduction

Low-noise aircraft operations

ICAO Chapter 14 standard compliant aircraft ratio

45％

40％

41％

42％

46％

Conserving and expanding tourism resources[Okinawa] Proliferating and regenerating sexually reproducing corals

ー

ー

ー

ー

1,000 clusters by 2026

Tourism Nation

Utilization of certified commercial materials

Ratio of paper items with international certification inconsideration with forest resources

15.9%

66.5%

66.5%

87.8%

100%

Regional Revitalization

Preventing illegal wildlife trade

Number of illegal wildlife transports

0

0

0

0

0

Consideration biodiversity in foodstuffs and commodity
products

Number of violations of in-house guidelines for
ESG risks in foodstuffs and products

ー

ー

ー

0

0

Reducing ecosystem impact around the airport[Tokyo] Number of incidents of inappropriate managementof water containing hazardous substances

ー

ー

ー

ー

0

Forming dynamic human resources portfolios

Manpower allocation to growing business areasーー+2,000 people+2,200 people+3,500 people v.s. FY2019

Ratio of women in management

18.4%

19.5%

21.9%

22.8%

30%

Employment ratio for persons with disabilities*1

2.62%

2.67%

2.64%

2.75％

3.2%

Percentage of men taking childcare leave

81.8%

106.3%

99.3%

87.2％

100％

Internal relocation through open recruitment

ー

ー

ー

30 people/year

100 people/year

Training cost per person¥449,480/person¥109,321/person¥84,469/person¥138,651/person¥338,000/person

Percentage of highly engaged employees

54.4%

54.4% (no survey)

51.7%

51.7% (no survey)

64.4%

Sales per capita

ー

ー

-50%

-2%

+15% v.s. FY2019

1,862 hours/person

1,878 hours/person

1,890 hours/person

1,884 hours/person

1,850 hours/person

Biodiversity Conservation

The JAL Group Value Creation Story

Action Items

Human Capital

Human Resources Portfolios
DEI

Promoting divers human resources*2*3

Careers/Reskilling

Providing opportunities for growth and learning

Total work hours*2

Improving labor productivity

79.0%

71.5%

74.5%

81.0%

100%

9.5 hours/person

8.0 hours/person

9.9 hours/person

10.5 hours/person

4 hours/person (linked to 1,850 hours of total
annual labor)

Employee consultation ratio

100％

100％

100％

100%

Maintaining 100%

*5

Family consultation ratio

37.5%

36.0%

40.7%

Disclosed during FY2023

75％

*2

36.7％

43.4％

64.6%

65.5%

70％

Uterine cancer screening

30.7%

38.6%

58.4％

60.5%

60%

Conducting human rights due diligence

Implementation ratio of human rights due diligence

ー

ー

ー

100％

100％

Respect for Human Rights

Respect for human rights of suppliers

Completion of human rights investigations of new key suppliers

ー

ー

ー

ー

100％

Resilience through Diversity

Respect for human rights of customers

Attendance ratio of education related to respectfor human rights

ー

ー

ー

81.9％

100％

Respect for human rights of employees

Ratio of employees who work long hours

ー

ー

ー

1.98％

0％

Strengthening the dissemination of information on
corporate website sustainability pages

Number of views

765,912786,229

893,469

840,170

1 million or more

Strengthening the dissemination of information toindividual shareholders and investors

Number of registered individual shareholders on
the email newsletter listーー

1,805 people

7,464 people

15,000 people

Preventing information leakage

Number of incidents

0

2*4

0

2

0

Number of Incidents to Prevent Corruption and Bribery

Number of incidents

0

0

0

0

0

Engagement

Improving the ratio of health check-up

Ratio of mammography*2

Disclosure and Dialogue
Promoting Fair Business
Activities

Confirmation ratio of integrity of critical suppliers

18%

37%

62%

81％

100%

Supply Chain Management

Number of aviation security audits of all caterer
factories and machine supply depots

2

2

2

2

2

Enhancement of BCM

Improving the effectiveness of BCP

Number of BCP-based exercises

1

1

4

4

2

Data Section

Promoting Responsible
Procurement Activities

Sustainability

Percentage of usage of annual paid leave

Average number of hours of overtime and holiday
work per month*2*2Growth Strategy

Increasing engagement

Management targets*1 Total value of Japan Airlines Co., Ltd. and JAL Sunlight Co., Ltd., a subsidiary that hires people with disabilities*2 Japan Airlines Co., Ltd. only
*3 Calculated based on the number of people in childcare leave applicants before FY2021*4 Number of information leakage incidents reported to authorities*5 Until FY2020, the data was compiled for family members aged 35 and over. From FY2021, the data is compiled for family members aged 40 and over.

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88

Chapter 4 Sustainability

Special Feature
Addressing Climate Change

Sustainability Initiatives
Biodiversity Conservation

Precaution of Environmental Pollution

Environment
Envionment

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature

Addressing Climate Change

Particularly relevant areas

Passengers

Cargo and Mail

Introduction

Environment

Basic Concept
Basic Concept (JAL Group Code of Conduct)

Challenges to be solved

Passing on the precious Earth to thenext generation (global environment)▶ pp.90-98

JAL Group Code of Conduct "Commitment to Society"

Biodiversity Conservation

WEB

Precaution of Environmental Pollution

WEB

Noise Reduction

WEB

Effective Use of Limited ResourcesWEB▶ pp.99-101▶ pp.101▶ pp.101* Net Zero Emissions: To balance actual carbon emissions from business activities and carbon reductions through initiatives (including the use of emissions trading and Carbon dioxide
Capture and Storage [CCS], the technology for capturing CO2 for long-term storage).

For more information on the JAL Group Environmental Policy, please visit the JAL website.

▶ pp.101-102

WEB

https://www.jal.com/en/sustainability/environment-management/policy/

Growth Strategy

WEB

WEB

The JAL Group Value Creation Story

We maintain an awareness that air transport is
responsible for a number of negative effects on theenvironment. To fulfill our responsibility of passing
on the precious Earth to the next generation, weraise awareness of every employee and protect theenvironment in every aspect.
(1) Global environmental preservation initiatives
The JAL Group complies with laws and regulations andstrives to address climate change, use limited resources
effectively, prevent environmental pollution, reduce noise,and conserve biodiversity to reduce impacts on theenvironment. Furthermore, we pursue the developmentof environmentally-friendly technologies to solve
environmental issues, in coordination with stakeholders.
(2) Disclosure of environmental information andstakeholder dialogue
The JAL Group actively discloses environmental
information, maintains dialogue with stakeholders andexpands environmental preservation initiatives acrosssociety.

Addressing Climate Change

The JAL Group recognizes that an action to climate change is a particularly
important issue for the sustainability of the society. In June 2020, we announced
our commitment to achieve Net Zero CO2 Emissions by 2050 in order tosteadily promote various initiatives including CO2 emissions reduction as an airtransport operator’s responsibility. Also, we announced our support for the recommendations from the Task Force on
Climate-related Financial Disclosures (TCFD) in February 2021, and for the Science Based Target (SBT) initiative inMarch 2022.
In accordance with the Medium-Term Management Plan Rolling Plan announced in May 2023, the JAL Groupwill work to achieve JAL Vision 2030 and sustainably improve corporate value by positioning ESG strategy as the
topmost strategy in order to realize value creation and growth and by achieving medium to long-term growth throughthe management of risks and opportunities.
The JAL Group has established the JAL Group Environmental Policy based on this concept and a promotion system
under this policy. As a corporate citizen, we are working to preserve the environment and remove impediments to ourprogress.

https://www.jal.com/en/sustainability/codeofconduct/

Progress towards achieving FY2025 target

Environmental Management

Topic

FY2025 management target

FY2022 Result

Reduction of CO2 emissions

Total CO2 emissions below 9.09 million tons

8.19 million tons

Governance
The JAL Group's Board of Directors demonstrates a strong supervisory function through the periodic

Governance System

reporting (four times in FY2022) on the execution of initiatives concerning climate change and biodiversity.

Board of Directors

In the execution, the Sustainability Promotion Council, chaired by the President, formulates basic policies,
sets important targets, and manages progress, and deliberates and decides on policies to deal with issues.

President

Sustainability

Based on the JAL Group Environmental Policy,
Members: President, all officers
Sustainability Promotion Council
including EMS Director
President(EMS cases discussed at least biannually) Agenda: Approval of medium- andthe Environmental Management System (EMS)
long-term environment targets,Management
reviewis being constructed to accurately promote
Reportdeliberation on EMS operational status, etc.
Decision-making, appointment
environmental conservation activities while
Relevant officers, EMS Director
Sustainability Promotion Committee Members:
EMS
Director
Agenda: EMS progress management,Internal Audit Team(EMS cases discussed at least biannually)(General Manager, General Affairs Division)
making continuous improvements.
problem sharing, etc.
ReportInstruction
Targets and action plans are set for each
Secretariat(ESG Promotion Department)
Members: Divisional EMS Managers,
company and division based on management
ReportChief of Secretariat
EMS Manager Meeting
Divisional EMS Managers
Group companies
targets, such as reducing CO2 emissions andAgenda: Establishing and reviewing(meets biannually)(Vice Presidents of Administration)
EMS
divisional annual targets etc.
single-use plastics emissions. Quarterly reviews
supportAppointment/Instruction
ReportMembers: Divisional EMS staff,
and annual internal audits are also conducted
EMS Staff Meeting
Secretariat
Divisional EMS Staff in charge
to confirm compliance, system conformity, and(meets biannually)
Agenda: Concrete initiatives, progress(appointed in each division)and problem sharing, etc.
achievement of targets.
If a nonconformity is detected, corrective action, cause analysis, and an effectiveness review of the action are performed.
In addition, urgent matters are dealt with within the framework of risk management programs.
In 2021, JAL Royal Catering Co., Ltd., which provides in-flight meals, acquired ISO14001:2015, an international standard
that specifies the requirements for an effective environmental management system.

Important issue

The Sustainability Promotion Committee, chaired by the Senior Vice President of the General Affairs
Division, deliberates on individual issues identified through the environmental management system (EMS)

Sustainability Promotion Council

and reports to the Sustainability Promotion Council.
The Medium-Term Management Plan incorporates responses to climate change into its management

Sustainability Promotion Committee

strategy and defines the eight materiality issues for sustainability in general to address social issues throughbusiness. With a strong commitment to achieve sustainable business operations and corporate value

EMS Internal Audit Functions

In accordance with ISO14001, EMS internal audits confirm the status of the organization, target management, environmental laws andregulations, education and training, communication, document information, and preparedness and response to environmental emergencies.
The contents of these audits are reported to the President at the management review.
It also functions as a mutual communication between the environmental division, which serves as an internal auditor, and the division to beaudited, leading to continuous improvement.

improvement through steady efforts to address these issues, we reflect external ESG ratings and CO2
reduction targets in executive remuneration as indicators.

■ Issues Presented and Reported at the Board of Directors and the Sustainability Promotion Council
in FY2022
Data Section

・Progress in efforts to address climate change (Formulation of targets and annual results)
・Information disclosure in line with TCFD recommendations
・GX Strategy to achieve Net Zero CO2 Emissions by 2050
For more information about officer remuneration, please refer to p.36.

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90

Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Addressing Climate Change

Biodiversity Conservation

Environment
Envionment

Precaution of Environmental Pollution

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature■ Conditions for Creating Scenarios to Achieve Net Zero CO Emissions by the JAL Group

Strategy■ Scenario Analysis
The international community is rapidly moving toward a 1.5℃ scenario as the benchmark for climate change action, with tighter
environmental laws and regulations in Europe, the return of the United States to the Paris Agreement, Japan's Carbon Neutral
Declaration and major reviews of Nationally Determined Contributions (NDC), and the de facto 1.5℃ target agreement at COP26.
In 2018, the JAL Group participated in the Project to Support Analysis of Scenarios of Climate Risks and Opportunities in line with
TCFD Recommendations organized by the Ministry of the Environment of Japan and predicted the society in 2030 based on two
scenarios (RCP8.5*1, RCP2.6*2) of the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC),
that is, keeping global warming to below 4℃ and below 2℃ by the end of the century.

*3 IEA SDS Scenario: Sustainable Development Scenario, a pathway to full achievement of the Sustainable Development Goals by the International Energy Agency (IEA)*4 Air Transport Action Group (ATAG) - Global Alliance to Promote Sustainability in the Aviation Industry*5 — See: Waypoint 2050
https://aviationbenefits.org/environmental-efficiency/climate-action/waypoint-2050/

The JAL Group Value Creation Story*1 RCP8.5 Scenario: High-level reference scenario in the IPCC Fifth Report (equivalent to the maximum greenhouse gas emissions in 2100)*2 R CP2.6 Scenario: Low-Level Stabilization Scenario in the IPCC Fifth Report (Lowest emissions scenario developed with the goal of keeping future temperature increases
below 2℃)

Introduction

2。
Based on the 1.5 C scenario, the JAL Group announced that a target was set for Net Zero CO2 Emissions by 2050 at its shareholders' meeting in
June 2020. The below roadmap has been created considering risks and opportunities based on scenarios such as the IEA SDS*3 scenario.
With regard to the reduction of CO2 emitted by JAL Group aircraft, we are studying CO2 emissions reduction scenarios targeting 2050 and。
discussing future issues and measures to be taken with reference to the latest study materials of ICAO and IATA based on the 1.5 C pathway and*4*5
ATAG’s WAYPOINT 2050 .
In preparing scenarios, we set the growth of Revenue Ton-Kilometers (RTK) based on total international and domestic passenger demandrespectively, calculated the total volume of CO2 emissions up to 2050, and reflected the impact in each initiative.

■ JAL Group's Road Map Towards Net Zero CO Emissions
2・ The 4℃ scenario is an extension of the status quo (The structure of the aviation industry remains largely unchanged.)

4℃ scenario*The assumption that the CORSIA scheme will progress under the current plan

CO2Emissions(10k tons)

CO2 Reduction

1,200

Development of policy toward low carbon transition
・Introduction of carbon tax in some countries/regions
・Limited support for development and diffusion ofGovernment ・Stricter fuel-efficiency regulations
next-generation aircraft and sustainable aviation fuel (SAF)
・Slowdown in low carbon/decarbonization trend(Strengthen and maintain relations with the government)

Upgrades tofuel-efficient
aircraft：50％

1,000
800

Continuing increase in LCC entrants
・Entry of LCCs, targeting price-sensitive customers, at a similar
New market entrants pace

Continuous improvement in fuel efficiency
・Improved fuel-efficiency of aircraft

Suppliers
・Progress with supersonic aircraft development(Aircraft manufacturers) (Investments in next-generation aircraft development at

Airline industry/
Company

Cost increase
・Heightened regulations and higher carbon prices (small impact)・Fuel-efficiency improves but next-generation aircraft
development and SAF diffusion slows down, no large change
in business landscape・High dependence on conventional jet fuel and rising fuel costs
due to soaring crude oil prices

Action

Review routes based on fuel-efficiency,
strengthen BCP, intensifying climate change(Invest in SAF to a certain extent)

the same pace)

Growing demand for international flights
・Demand growth especially in developing countries
Customers ・Growing logistic demand due to population increaseand economic revitalization (cargo)
・Limited interest in decarbonization, no shift torailway, etc.
・More flight cancellations and delays as extreme
weather conditions intensify(Create business plans in anticipation of demand
growth, develop routes to meet demand, expand
codeshare, strengthen weather information
gathering and analysis)

Alternatives

Continue efforts to improve fuel-efficiency, implement measures against rising fuel costs, consider measures to prepare for physical risks

・In the 2℃ scenario, review of supply chains and business models
may be necessary due to diffusion of SAF and modal shift

Suppliers(Feedstocks)

ActionFeedstock cost fluctuations
・Difference in cost between regions where SAF is
widespread and fuel costs fall and regions
where supplies do not keep up and prices do
not fall

Actively invest in SAF development
Secure SAF, strengthen relationships with suppliers(Promote open innovation)

Alternatives

200

ActionStrengthen relations with the government(lobby SAF diffusion)(Consider developing SAF made from feedstocks other than agricultural products)

Growing demand for international flights
Shift to a low carbon society intensifies
・Growing demand especially in developing countries
・Growing air travel demand due to economic development inCustomers ・Growing environmental concerns, shift todeveloping countries
environmental-friendly mobility/transportation
・Slowdown in growth due to shift to environmentally-friendly
modes, such as rail and shiptransportation such as rail and ship
(Reduce transport costs by improving fuel-efficiency
・Stricter regulations, rising carbon prices
and reducing costs)
・Adoption of SAF progresses
Action
Review aircraft investment plan,
secure SAF and build supply chains,review routes taking into account refueling

Net Zero CO2Emission。
1.5 C scenario →0

FY20192025

Target of CO₂ reduction (net)
CO2 emissions with no efforts (BAU)

2030

2035

2040

Upgrades to fuel- efficient aircraft
Reduction in daily operations

2045

2050

Use of SAF

Reduction indaily operations

Utilizing the latest fuel-efficient today and aiming to introduce aircraft using new technologies in the near future,such as hydrogen and electric powered aircraftIn addition to “JAL Green Operations” to reduce CO₂ emission in daily operations, Promoting collaboration across theentire industry, including air traffic control agency, airlines, and airport operations

Use of SAF

Collaboration with stakeholders to aim for decarbonized to secure SAF supply and reduce costs

Toward achieving our Net Zero CO2 Emissions by 2050, a new department dedicated to GX strategy was established in April 2023. JAL will continue
to promote GX strategy through a wide variety of methods, including the use of internal carbon pricing (ICP) and negative emission technologies, inorder to promote investment toward decarbonization, and the continuation of active efforts to use SAF*6, which is recognized as a particular focus.
In March 2022, we issued the world's first transition bond in the aviation industry to steadily upgrade our fleet to the most advanced equipmentwith high fuel efficiency (such as the A350 and 787), and it was selected as the first model example in Japan’s Aviation Industry for 2021 Climate
Transition Finance Model Projects by Ministry of Economy, Trade and Industry of Japan.
In March 2023, JAL became Japan's first airline to issue Transition-Linked Loans with specific use of proceeds, and the loan was selected as atarget of the Ministry of Economy, Trade and Industry's FY2022 Global Warming Countermeasures Promotion Program Subsidy. In addition, JALissued its second transition bond in June 2023, and is actively and continuously utilizing ESG finance. We are engaging in dialogue with investors togain an understanding of our company's initiatives.
In October 2022, the International Civil Aviation Organization (ICAO) reviewed its long-term CO2 reduction targets for 2050, and the CORSIA*7
baseline was revised. In line with this, it is expected that CO2 emission reductions by airlines will be promoted, and countries will strengthen CO2emission regulations and be active in CO2 emission trading. JAL recognizes that it is necessary to accelerate its response to climate change.
*6 S ustainable Aviation Fuel (SAF): CO2 emissions can be reduced by an average of 80 percent compared to conventional jet fuel in the life cycle from production andprocurement of feedstock to manufacturing, transportation and combustion.
*7 C
 ORSIA: Carbon Offsetting and Reduction Scheme for International Aviation: A system that requires international flights to purchase emission credits for exceeding the 2019
CO2 emission standards (baseline)

Data Section

Fuel-efficiency improvement continues
・Progress with development of next-generation aircraft
・Increased
needs for fuel-efficient next-generation
Suppliers(Aircraft manufacturer) aircraft(Strengthen relations with aircraft manufacturers
and increase investments in next-generation
aircraft development)

Airline industry/
Company

Use of SAF：45％

Sustainability

Development of policy toward low carbon transition
・Introduce carbon tax for decarbonization/low carbon society
・Restrictions on departures/arrivals of aircraft loaded with old jet engines with
Government ・Stricter fuel-efficiency regulations
high greenhouse gas (GHG) emissions in some countries/regions (pay fines)
・Support SAF development and diffusion toward decarbonization
・Tighter restrictions on land use in some countries/regions as part of climate
action, affecting feedstocks (crops) required for SAF production

New entrants Entrants using electric-powered aircraft
・Emergence of new carriers, primarily those using
New entrant
electric-powered aircraft for transport

400

Upgrades to fuelefficient aircraft

No change

2℃ scenario

2.0 。
C scenario →Reduction in daily
operations：5％

Growth Strategy

Suppliers(feedstocks)

Rising feedstock costs
・Reduction in costs to change to SAF due to slow
diffusion of SAF
・Rising crude oil-derived conventional fuel prices(invest in SAF development)

600

・Modal shift to rail and ship (coordinate with railways, etc.)

Engagement with suppliers, industry associations and governments is essential to ensure SAF stability

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Chapter 4 Sustainability

Special Feature
Addressing Climate Change

Sustainability Initiatives
Biodiversity Conservation

Environment
Envionment

Precaution of Environmental Pollution

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature■Risks and Opportunities
Classification

Time of Impact

Short-term

FY2023 to FY2025 (the period covered by the current mediumterm management plan)

Medium-term

FY2026 to FY2030 (the period up to JAL Vision 2030)

Long-term

FY2031 to FY2050 (the period to achieve Net Zero CO2 Emissions)Classification

Revenue or Cost Impact at the Time of Event (Annual)

The JAL Group defines risk as any event or action that may impede the achievement of theorganization's mission, objectives, or goals, and conducts semiannual risk surveys and assessments.
Those assessed as of particular importance are positioned as priority risks, and the status of risk
management is reviewed at the Group Risk Management Council chaired by the President, wherecountermeasures are discussed and decided.
With regards to environmental issues such as climate change and biodiversity, which are priority issues
in our management strategy, we implement risk management through the PDCA cycle based on theEnvironmental Management System (EMS), while considering relevant laws, regulations, and policy
trends in the international community.

■Risk Management System

3 billion yen to less than 30 billion yen

Risks related to climate change, both transition risks and physical risks, are managed in the risk management system of the entire JAL Group.

Large

30 billion yen or more

For a risk management structure chart, please visit the JAL website.

Short to Long

Small toMedium・Procuring credits meeting CORSIA eligibility criteria at a stable and reasonable price・<Oberseas> Participation in rulemaking (ICAO, IATA)・<Japan> Public-Private Partnership for Rulemaking through the Scheduled Airlines Associationof JapanMediumMedium

Impact of high SAF and hydrogen fuel prices on
earnings

Medium to Long

Medium to
Large

Aircraft

Delay in the development of aircraft using newtechnologies such as hydrogen and electric power
and in the development of airport infrastructure1

Long

Medium・Cooperation with aircraft and engine manufacturers
・Participated in the "Public and Private Sector Consultation on New Technologies for
Decarbonization of Aircraft" with the government and other relevant parties to formulate the"New Technology Roadmap for Decarbonization of Aircraft (draft)"

DemandDeclining in customer preference due to delayed
response to climate change and slowdown indomestic demand for air transport due to a modal
shift

Medium to Long

Small toMedium・Advocationg the Value of Aircraft Mobility after Thorough Efforts to Reduce CO2・Building momentum by disseminating the progress of sustainable flights and SAF procurement
in a planned manner, participating in symposiums, and strengthening the dissemination ofenvironment-friendly measures

For more information on Performance and Targets for Reducing CO2 Emissions, please visit the JAL website.

Operation

Impacts of the decrease in the number of passengers
and the increase in flight cancellations caused byclimate disasters due to the intensification of extreme
weather events and changes in precipitation andclimate patterns

Short to Long・Strenghen crisis management capabilities and enhance BCP in response to disasters■Targets and Initiatives for CO Reduction by 2030

Impact of the outbreak of a pandemic of infectious
diseases caused by ecosystem changes due to theincrease in average temperature on air transport

Short to Long

Large

Period ofOpportunities

Impact ofOpportunities

Actions to Expand the Opportunities

Medium・CO2 reduction of operational ingenuity and aircraft modification.
・Steady renewal of fuel-efficient equipment (Implementation of various types of financing, such as
the implementation of specific use of funds transition-link loans, selection of new small aircraft,
and acceleration of the introduction of fuel-efficient equipment)
・Cooperation with manufacturers, countries, and related organizations to improve air traffic
control and introduce aircraft using new technology
・Request for support based on GX transition bonds

SAF✓Acute✓Chronic
DemandMedium・Long-term, price-advantaged SAF procurement from manufactures in individual companies oralliances
・Active involvement in domestic SAF production and expansion fo SAF procurement sites
・Request for support related to the supply and manufacture of SAF to the government and energy
industries (At the Public-Private Councils for the promotion of SAF deployment, JAL participatedin discussions on stable production and sharing of SAF, as well as on making it less expensive,
and a "draft regulatory and support package" was presented.)

・Providing a Safe and Secure Air Transport Environment through Infectious Disease Control
・Development of flight plans based on passenger demand

Opportunities
Opportunities

AircraftOperated

Opportunities

GroundVehicleStable supply of aircraft fuel and reduction of costthrough diversification of fuel supply sources

CO2 reduction through the use of special airport
vehicles combining various power sources, and laborsaving airport operations through the use of newtechnologies such as autonomous driving

Short to Long

Medium to Long

Short toMediumEnhancing preferences and expanding aviation
demand through appropriate responses to diversifying
customer needs

Short to Long

Creation of new businesses based on the premise of
low carbon Securing new revenue sources through(Nest Generation Air Mobility, Freighter Business with
Ymato HD, LCC Business)

Short to Long

Medium to
Large

Small

・Procurement of biodiesel fuel and use of special electric vehicles
・Promoting airport decarbonization through public-private partnerships

Medium・Providing low-carbon, environmentally-friendly products and services
・Expansion of information disclosure on measures to address climate change, including reductionof CO2 emissions
・Building momentum by disseminating the progress of sustainable flights and SAF procurement
in a planned manner, participating in symposiums, and strengthening the dissemination ofenvironment-friendly measures

Demand93

JAL REPORT 2023

・Procurement of SAF consisting of multiple manufacturing methods
・All Japan SAF dissemination activities such as ACT FOR SKY
・Cooperation among the public and private sectors, including public and private sector councils
for the promotion of SAF deployment, to resolve technical and economic issues in domestic SAF
manufacturing, and supply side through GX transition bonds, support for business operation
costs including SAF feedstock procurement, and incentive support

Large

・Creating new businesses utilizing JAL Group assets
・Promotion of investment that contributes to reduction of CO2 using internal carbon pricing (ICP)WEB

https://www.jal.com/en/sustainability/esg/pdf/esg.pdf

Due to the nature of the air transport business, direct emissions from aircraft account for about 99 percent of CO2 emissions. Based on this fact,
we will first address the reduction of CO2 emissions from aircraft as our top priority, but we are also earnestly working to reduce CO2 emissions fromindirect emissions from ground facilities with similarly high targets.
Achieving our goals is by no means easy, but we will continue to lead the industry in cutting-edge initiatives in line with the Japanese government's
Clean Energy Strategy, while strengthening cooperation and collaboration with various stakeholders in Japan and abroad, in line with the internationalframework for reducing CO2 emissions.

WEB

https://www.jal.com/en/sustainability/initiatives/

2

The JAL Group has set specific targets for 2030 (a 10 percent reduction in total emissions from 2019 levels) in May 2021 as the first Japanese
airline and has taken the lead in promoting decarbonization of the global aviation industry through joint procurement of SAF in alliances and the useof ESG finance when renewing aircraft. Going forward, JAL will continue to accelerate our existing initiatives, such as the steady renewal of fuelefficient aircraft based on a stable financial base, steady implementation of JAL Green Operations, and strategic procurement based on specific SAF
loading targets, and by implementing the utilization of emissions trading and consideration of the use of negative emission technologies as additional
responses to the revised CORSIA baseline. We will boldly take on the challenge of achieving our targets.
Regarding SAF, while overseas manufacturing and supply chain construction activities are accelerating, it was clearly stated that SAF manufacturing
and distribution will be promoted in Japan in the Basic Policy for Economic and Fiscal Management and Reform 2023, Grand Design and the
Implementation Plan for New Capitalism, Clean Energy Strategy, and Basic Policy for Realizing GX. In order to realize its ambitious goal of replacing
10 percent of all installed fuel with SAF by 2030, the JAL Group will actively work toward commercializing SAF through public-private partnerships
and cooperation with domestic and international stakeholders.

■CO Reduction Targets and Achievements
2

Direction
emission（Scope1）

Indirect
emission（Scope2）

Base year

2022

FY19 Results

FY22 Results

9.09
million

8.19
million

FY13 Results

FY22 Results

80,00056,000

tons

tons

tons

tons

2025

2030

FY2025 CO2 reduction target

FY2030 CO2 reduction target

Total emissions: less than

Total emissions: less than

(Approx. 500,000 tons reduction)(Approx. 2 million tons reduction)

FY2025 CO2 reduction target

FY2030 CO2 reduction target

Total emissions: less than

Total emissions: less than

*67% Less than FY 2013*50% compared to FY 20139.09 million tons
*Less than FY 201954,000 tons

8.18 million tons

2050

Net Zero*90% compared to FY 201940,000 tons

Data Section✓Resource
efficiency✓Energysource✓Resilience✓Market
✓Products
and services

SAF

Improvements in flight operations, technicalimprovements in equipment.
Reduction of fuel consumption by improving fuelefficiency and CO2 Reduction through improvementof infrastructure, including upgrading of air traffic
control. (Reduction of Credit Purchase Costs)

For more information on Metrics and Targets, please visit ESG Data Book.

Sustainability

Types ofOpportunity

In order to pass on our precious Earth to the next generation, the JAL Group sets targets for environmental data such as CO2 emissions, waste andwater consumption, and discloses the results.

Growth Strategy

Physical Risks

Metrics and Targets

Rsik Mitigation Actions

Transition Risks✓Policies
andregulations✓Technology✓Market✓Evaluation

https://www.jal.com/en/sustainability/governance/riskmanagement/#risk

Impact of
Risk

Shortages in supply due to delays in the development,
manufacture and dissemination of SAF and bias insupply areas

Group Risk
Management Council

MediumPeriod of Event

Emissions Increase in credit cost by stronger national CO2
Trading emission regulations

PresidentLess than 3 billion yen

WEB

Risks

Board of Directors

Small

Risk
Types of Risk

Risk Management System

The JAL Group Value Creation Story

Climate change will have a negative impact on the air transportbusiness, which is based on the premise of operating in a "safe andsecure society," and as a result, it may pose an enormous risk tobusiness continuity.
In addition, the response to climate change, including the reduction of
CO2 emissions by airlines, may have various financial impacts, such as
upgrading to fuel-efficient aircraft and responding to carbon pricing.
The JAL Group organizes and examines these factors that affectits business in accordance with the TCFD classification of risks andopportunities related to climate change and lists them in the tablebelow. The categories of "timing" and "impact at the time of event" areas specified right.
The following was reviewed at the Board of Directors meeting on
August 1st., 2023.

Introduction

Risk Management

Net Zero*Voluntarily digging deeper, taking into account the Paris Agreement, etc.

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Chapter 4 Sustainability

Special Feature
Addressing Climate Change

Sustainability Initiatives
Biodiversity Conservation

Environment
Envionment

Precaution of Environmental Pollution

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature■Actions to be Taken by FY2030 Responding to Changes in the Business Environment

SAF Initiatives at JAL

the long-term goals for decarbonization in the international aviation sector and adopted to achieve Net Zero CO2 Emissions by 2050, as well as a

FY2018Overseas SAF
Procurement

framework (the calculation standards for reductions to be imposed on each airline) for reducing CO2 emissions.

CORSIA baseline review by utilizing emissions trading and other measures.

2

1

FY2019 Levels

Upgradesto Fuelefficient
aircraft
Reduction
in dailyoperations

900

Use of
SAF

CO2
reductions

Actual emissions

800

Amount required CORSIA offsets to be allocated from FY2024
FY2022

FY2025(actual)Less than
FY201910％less

compared to FY2019

tons

50,000Set flight schedules
100,000 aimed at reducing
tons
CO2 emissions

80,000

Expand Procurement fromoverseas and expand
700,000 coordination aimed at
tons
production and stablesupply of Japan-made SAF

tons

tons

Approx.

500,000

tons

Utilization ofcarbon-offset
programPriority and Strategic Measures

The JAL Group has set a goal of "Replacing 1 percent of all fuel on board (FOB) with SAF in FY2025 and 10 percent in FY2030." In order to achieve
our goals, we are promoting the procurement of SAF in Japan and overseas as well as working with stakeholders across industries in Japan toproduce and commercialize domestic SAF. We are also promoting the spread and expansion of SAF through participation in the development of"future generation SAF" such as synthetic fuels.

Public-Private Council• SAF loaded on Sustainable
Charter Flights

FY2030 Target
Replace 10% of
Jet Fuel to SAF(Approximately
400,000 KL)

2 Aemetis, Inc., California
Feedstock: Tallow
To be loaded in FY2024

5 Raven SR Inc.(California)

Raw materials: municipal solid waste
Scheduled to be installed in FY2024

3 Gevo Inc., Minnesota

Feedstock: Non edible corn
To be loaded from FY2026▶Procurement of SAF Overseas
In FY2021, we signed a joint agreement with oneworld alliance member airlines to purchase SAF from the United States, where SAF is alreadyproduced. SAF will be purchased from Aemetis Inc., which produces SAF from tallow, and Gevo Inc., which produces SAF from non edible corn.
This is the first initiative of the alliance, and by showing the need for SAF by multiple airlines, we will contribute to the diffusion and market expansionof SAF and promote carbon neutrality in the airline industry.
In FY2022, we worked with SAF producers and suppliers to establish a system to supply SAF in Singapore, Los Angeles, and Chubu Centrair
International Airport.
We also signed a memorandum of understanding to procure SAF from Raven SR in the United States, which uses municipal solid waste as
feedstock.

SAF

The term "sustainable aviation fuel" refers to aviationfuel that uses feedstocks that are not derived from
Non-petroleum derived
feedstock

Curb new CO₂ emissions

Jet fuel

forest residues. By utilizing the feedstock, new CO2
emissions can be reduced.
CO₂ absorption

CO2 emissions① Collaboration in the aviation industry
To achieve carbon neutrality in 2050, the development and diffusion of SAF is essential. In October
2021, JAL and All Nippon Airways Co., Ltd. (ANA) published a joint report "Toward Virtually Zero
CO2 Emissions from Air Transport in 2050" to build a stable supply system for SAF.
The report aims to raise awareness and promote understanding of SAF in Japan and provides
a wide range of information on mass production and utilization including estimates of SAF
requirements in Japan. To pass on air transportation to the next generation as an important social
infrastructure that connects Japan with the world, JAL and ANA will continue to work together topromote SAF diffusion and other environmental measures, in collaboration with the government andrelated parties.

Sustainability▶What is Sustainable Aviation Fuel (SAF)?

that have absorbed CO2, such as used cooking oil and• Participated in SAF▶Accelerating Efforts to Produce and Stably Secure SAF in Japan■Use of SAF

petroleum. These products are made from feedstock

For Domestic SAF
Production TBD

2,000,000

Offset requirements are calculated and allocated basedon industry-wide emissions

Feedstock: Municipal solid waste
To be loaded from the latter half ofthe 2020s

feedstocks: Tallow and waste cooking oil
To be loaded from FY2022

tons

Push forward with securing credits that
conform to CORSIA certifications

1 Fulcrum BioEnergy, Nevada

4 Neste/ITOCHU Corporation

2 Approx.

Measures to comply with revised CORSIA baselines

FY2030for expanding awareness andpromoting of SAF• Established ACT FOR SKY,a voluntary organization

domestic
SAF flight madefrom clothes

Growth Strategy

CO2 emissions

370,000

1• Published joint report with ANA• First-ever2030

Accelerate and expand
introduction of
1,200,000 state-of-the-art aircraft
tons
A350 787 737MAX/
ATR:Approx.70 aircraftwith Raven SR and ITOCHU Corporation

The JAL Group Value Creation Story

2025

Expected emissions if no measures are taken

1,000

Marubeni and ENEOS

Internal emissions reduction

CORSIA will be addressed separately, with no change in JAL's reduction targets

ITOCHU Corporation• 5 Memorandum of Understanding signed

3 Gevo Inc.

Activities for Domestic
SAF Production

FY2022• Signed joint purchase agreements • Fulcrum begins production
with oneworld alliance members • 4 Signed contracts with Neste and2 Aemetis, Inc.

from clothes

2(10,000 tons)

1• Began producing domestic SAF • Launched feasibility study with

■Roadmap for Reducing CO Emissions up till FY2030

FY2021

FY2020• Investment to Fulcrum BioEnergy • SAF loaded on flights from San Francisco• Began loading SAF on A350 aircraft delivery flights

This is a major change in the framework, which revises the baseline for calculating the excess CO2 emissions of the international aviation sector to
85 percent of the 2019 level for the period 2024 to 2035. The JAL Group will respond to the changes in the business environment surrounding the

FY2019Introduction

At the 41st ICAO General Assembly held at ICAO Headquarters (Montreal, Canada) from September 27 to October 7, 2022, the ICAO announced

Joint report was published with ANA② Cross-industry collaboration
In March 2022, JAL, together with JGC HOLDINGS CORPORATION, ANA and REVO International Inc.,
launched ACT FOR SKY, a voluntary organization with the aim of promoting SAF, carbon neutrality, andthe importance of resource recycling, while changing the attitudes of citizens and companies, which
will hopefully lead to behavioral changes.
We started with 16 companies, and as of April 2023, we have expanded to 27 companies.
ACT FOR SKY promotes and expands domestic SAF through information exchange and discussion
among its members, as well as activities to raise awareness of society by disseminating informationand holding events aimed at realizing a decarbonized and recycling-based society.
JAL, as one of the managing companies, will continue to carry out concrete initiatives aimed at thedevelopment of aviation and the entire industry in Japan and the realization of a sustainable society.

Data Section

ACT FOR SKY logo and 27 participatingcompanies③ Collaboration with the government
At the FY2021 Study Group on CO2 Reduction 5.6 in the Aviation Sector, the target of replacing 10 percent of the fuel consumed by Japanese airlines
with SAF was set up as a common target of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and Japanese airlines. To introduce
SAF, it was recommended that the development and production of internationally competitive domestic 40,000 SAF should be promoted and thatcoordination among wholesalers on the supply side and airlines on the user side should be strengthened in order to build future supply chains.
For this reason, in FY2022, the Public-Private Council for the Promotion of SAF, co-sponsored by MLIT and the Ministry of Economy, Trade andIndustry, was established as a forum for public-private discussions and joint initiatives on technical and economic issues and solutions. JAL is actively
participating in this forum.
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Chapter 4 Sustainability

Special Feature
Addressing Climate Change

Sustainability Initiatives
Biodiversity Conservation

Environment
Envionment

Precaution of Environmental Pollution

Noise Reduction

Respect for Human Rights
Effective Use of Limited Resources

Special Feature■Upgrading to Fuel-Effocient Aircraft■Measures to Reduce CO Emissions from Ground Equipment

In September 2019, we began introducing Airbus A350-900 on domestic
routes and currently we have 16 aircraft.
From 2023, we will begin to introduce Airbus A350-1000 on internationalroutes, and we will introduce the new Boeing 737-8 in 2026 as areplacement for the currently operating Boeing 737-800.
These aircraft are fuel efficient, have low noise, and can reduce CO2
emissions by 15 percent to 25 percent compared to previous models.
The newly introduced aircraft will use funds raised through a public offering
in FY2020. It will also be funded by the SDGs Bonds, the world's firsttransition bond issued by the airline industry in March 2022, and will beutilized to steadily upgrade to fuel-efficient aircraft.
As the development of next-generation aircraft equipped with newtechnologies powered by electricity and hydrogen increases, we will
cooperate with aircraft and engine manufacturers topromote technological reforms.
Since the development of infrastructure, including
airports, is also essential for the next generationof aircraft, we will work with stakeholders such as
the national government and airport companies toimprove the environment.

With regard to ground equipments, initiatives to reduce unit energy
consumption by one percent or more on average are in progress.
Under the “operator classification evaluation system” of the Act on
the Rational Use of Energy (Energy Conservation Act) implemented
by the Ministry of Economy, Trade and Industry, the JAL Group has
been certified as “S Class,” an excellent business operator, for eight
consecutive years since 2015.
To reduce CO2 emissions from airport vehicles, Tokyo International
Airport (Haneda) is introducing electric-powered vehicles.
At Narita International Airport, used cooking oil, in the Dining Port
Goryo Kaku restaurant operated by the JAL Group, was collected
and processed into biodiesel fuel. This fuel, a local production andconsumption project, is then used in ground support equipments at
Narita International Airport.

100％

15％

14％

14％

14％

14％

85％

86％

86％

86％

86％

80％
60％
40％
20％
0％

FY2021

FY2022

FY2023

FY2024FY2025

JAL
Green
Operations
▶
JAL
Green
Operations
CO2 Reduced in FY2022

At Takeoff

86,500 tons

10,700 tons

22,500 tons

5.
Ascent with
Early
Acceleration

6.
Adjusting
Flight Speed

3.
Reduce APU
Usage

2.
Reduction of
Onboarded
Weight4.
Closing
Window
ShadesIn Flight

DuringDescent

At Landing

Total

9,300 tons

28,700 tons

14,100 tons

194,700 tons

10.
Idle Reverse
11.
Single-EngineTaxi-in

63,000households*
CO2 emissions
from electricity
use in onemonth(*equival ent to
Saitama City)

7.
Continuous
Descent
Operations
8.
ReducedFlaps
9.
DelayedFlap & Gear

22,900 tons

14.Engine Upgrades and Replacement

Voice

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JAL REPORT 2023

Image when using a smartphone

JAL Carbon Offset (for Individual Customers)
https://www.jal.com/en/sustainability/environment/
climate-action/emission_trading/#carbon

Topic
CONTRAIL Project
Other measures and data
related to "improvements in daily
operations" are also posted on
our company website.
WEBhttps://www.jal.com/en/
sustainability/environment/
climate-action/co2-emissions/

A Fuel Efficiency Flight Test was Conducted for the First Time in the World by Applying Riblets on Sircraft Coating Surfaces.
In FY2022, JALEC applied a shark skin inspired riblet surface with a groove depth of only 50 microns (about the thickness of a humanhair) to the aircraft coating surface to reduce friction.
By applying this riblet over the aircraft coating surface , it can reduce the skin friction. It is expected to improve fuel efficiency by up to
2 percent.
During the preparations, it was difficult to find the optimal method such as paint, additives, coating thickness and drying time because
the riblet coating of the paint is very sensitive.
Through trial and error, by utilizing the extensive knowledge and experience of our painting technology experts, we were able tosuccessfully execute this technology for the first time in the world.
In the future, we plan to expand the riblet areas on the aircraft coating surface to establish more optimal methods to further reducing
CO2 emissions. By improving fuel efficiency we plan to gradually expand the aircraft with riblet coating to international flights, where
the reduction of fuel consumption is more effective.

In order to accurately predict climate change, it isessential to observe the CO2 concentration andunderstand its circulation at multiple locations,
including the sky.
The JAL Group has been using aircraft to conduct
atmospheric observations since 1993, and in
2005, a public-private CONTRAIL project was
launched by five organizations (National Institute ofEnvironmental Studies, Meteorological ResearchInstitute, Jamco Corporation, JAL Foundation,
Japan Airlines) to expand the observations.
This project, the first of its kind in the world tocontinue global observations of greenhousegases (such as CO2) in scheduled flight, involves
the installation of an observation equipment on acommercial aircraft to conduct frequent, long-term
observations in the sky. The data is being used byresearchers around the world.

Data Section

ISHIBE Satoshi
System Engineering Group, Aircraft MaintenanceCenter, OsakaIn cooperation with CHOOOSE, a Norwegian company, we offer JAL
Carbon Offset. This program for individual and corporation customers
enables to offset the CO2 emissions from their flights.
At the Sustainable Charter Flight held in November 2022, we worked
to achieve Net Zero CO2 Emissions using the individual program bysupporting projects that absorb CO2.
In addition, the corporate program allows companies to provide
reports on CO2 emissions visualization, select credit programs,
implement carbon offsets, and issue certificates.
We will continue to work with our customers to reduce CO2 emissions.

In FY2022, the reduction
result was 2.4% comparedto the FY2025 target of
2.5 % of total emissions.

JAL Green Operations

Efforts Outside 12.Engine Washingof Operations 13.Improvement of Wing Tips and Fuselage, as well as Riblets▶JAL Carbon Offset

Sustainability

1.
Optimized
Flight Plans

Providing Carbon Offset Programs
In addition to responding to ICAO CORSIA which is an international

Growth Strategy

In order to reduce CO2 emissions, various efforts are taken in our daily operations, such as eco-friendly flights by arranging the timing of operations
and steering, reducing the weight of the aircraft and shortening the flight route. These efforts are collectively called “JAL Green Operations”.
We monitor the actual flight routes on a daily basis, and even at the flight planning stage, we create a flight route plan that matches the actual
situation, and so on, in order to optimize the loaded fuel on board (FOB).
In addition, the implementation rate of the early acceleration ascent method, which has been actively promoted for some time, has increased
significantly because the speed limit stipulated in the Civil Aviation Act was changed after discussions with the Civil Aviation Bureau, making it easier
to implement.

While Parkedin Spot

Electric-powered towing tractors

emissions reduction and offset scheme, we offer "JAL Carbon Offset"
to our customers.

■Reducing CO2 Emissions in Daily Operations

Preparing for
Departure

The JAL Group Value Creation Story

省燃費機材割合の推移
Percentage of fuel-efficient aircraft

Introduction

2

CO2 concentration stations in 2021
https://cger.nies.go.jp/contrail/cme/fstatis_2021.html

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Chapter 4 Sustainability

Special Feature
Addressing Climate Change

Sustainability Initiatives
Biodiversity Conservation

Precaution of Environmental Pollution

Noise Reduction

Particularly relevant areas:

Respect for Human Rights
Effective Use of Limited Resources

Passengers

Special Feature

Mileage, Lifestyle and Infrastructure

Basic Concept*See "TNFD Beta Framework (v0.4)"

The JAL Group follows the LEAP approach proposed by the TNFD, identifying natural dependencies and impacts as well as priority areas, tosystematically assess nature-related risks and opportunities on a scientific basis.
*LEAP approach: "LEAP" is an acronym for the four phases of Locate, Evaluate, Assess, and Prepare. It is an information disclosure guidance that consists of "Locate,"
which identifies the nature interface throughout the supply chain and identifies priority locations; "Evaluate," which diagnoses the dependencies and impacts between
the business activities and nature; "Assess," which evaluates the key risks and opportunities based on the results of the diagnosis; and "Prepare," which prepares a
response to nature-related risks and opportunities and reports back to investors.

Nature, consisting of freshwater, ocean, land and atmosphere, provides various benefits (ecosystemservices) to the JAL Group's business. For example, a stable climate maintains a suitable operating
environment for aircraft (regulating services) and provides places and opportunities for tourism (cultural
services), leading to the creation of human flows. In addition, blessings such as food (supply services)
lead to the creation of commercial and logistics flows.
In March 2023, the JAL Group held an internal workshop to explore contacts with nature, inviting a
lecturer from the World Wide Fund for Nature Japan (WWF Japan) to identify the dependencies andimpacts of the JAL Group's air transportation business on nature. The dependence was identified as"flights to natural heritage sites, beach resorts, and other nature-rich tourist destinations" and "salesof local food products," while the impact was identified as "possible environmental pollution aroundairports" and "concerns about the impact on the ecosystem during the production of SAF".

Land

Ocean

Ecosystems such as
tropical rainforests,
biological resourcesof cultivated land,Land, etc.

Ecosystems such as
oceans, aquaculture
resources, etc.

SocietyFreshwater

Ecosystems such as
rivers, water resources,
aquaculture resources,etc.

Atmosphere・Comliance with internal guidelines with reference to the IUCN Red List, etc.
・Use of food and merchandise produced with sustainability taken into account.

Over tourism in nature-rich tourism destinations.
Complicity in illegal wildlife trafficking.
Environmental contamination to the surroundings of the airport (e.g., if improper water treatment occurs).

Realization of tourism based on sufficient management of human flows.
Educate employees and collaborate with airport authorities to prevent illegal wildlife trafficking.
Thorough prevention procedures and post occurrence response procedures.

Outline of Opportunities

Actions to Expand the Opportunities

Creating demand for nature tourism.

Balancing tourism and nature conservation by encouraging appropriate tourism through the training of tourism
guides, etc.

Creation of commercial distribution and logistics through the transportation of foods
and merchandise that are products of a rich ecosystem.

Contribution to regional economic revitalization through high-speed fresh transportation of foods andmerchandise.

Securing tourism resources through protection, restoration, and rehabilitation of
ecosystem.

Implementation of measures such as the coral sexual reproduction project.

Securing a stable supply of commercial materials.

Use of sustainable commercial products (e.g. certified commercial products) in collaboration with suppliers.

Risk and Impact Management

Metrics and Targets

The JAL Group defines risks as any event or action that may
impede the achievement of the organization's mission, objectives,or goals, and conducts semiannual risk surveys and assessments.
Those assessed as of particular importance are positioned aspriority risks, and the status of risk management is reviewed at theGroup Risk Management Council chaired by the President, wherecountermeasures are discussed and decided.
With regards to environmental issues such as climate change andbiodiversity, which are priority issues in our management strategy, we
implement risk management through the PDCA cycle based on the
EMS, while considering relevant laws, regulations, and policy trends inthe international community.

The JAL Group recognizes that biodiversity is affected by various
environmental issues, including climate change, resources, andenvironmental pollution, and commits to comprehensive solutions. In
addition to targets related to biodiversity conservation, we disclose
environmental data such as CO2 emissions, waste and water
consumption.
For targets and KPIs, visit our company Web site.
WEB

ESG DATA https://www.jal.com/en/sustainability/esg/pdf/esg.pdf

Main topics

Risk Management SystemWEB https://www.jal.com/en/sustainability/governance/riskmanagement/#risk

Biodiversity
Conservation

Subtopic

Metrics

FY25 Targets

Collaboration with external
stakeholders to help expand Preservation and[Okinawa] Number of
1,000 seedlings by
the area of protected areas expansion of tourism sexually reproduced corals
2026
such as national parks and resources
grown
OECMs by 2030
Percentage of in-flight items
Use of certified commercial products
100%
using certified paper
Number of illegal wildlife
Prevention of illegal wildlife trade0transports
Number of violations ofConsideration for biodiversity in the foods andinternal guidelines for ESG
0merchandise we handle
risk food ingredients andcommercial products[Tokyo] Number of incidents
Reducing the impact on the ecosystemsof improper management of0
surrounding the airport
water containing hazardous
substancesWEB

Conservation of water resources https://www.jal.com/en/sustainability/environment/limited-resources/#anc08■Sexual Reproduction and Coral Regeneration Project

Data Section

Our efforts and data on water resources issues are also posted on our company website.

JAL REPORT 2023

Use of SAFs (such as ICAO CORSIA-eligible fuels) that take into account raw materials, land use and ecosystemconservation in the production areas, etc.

Restrictions on foods and merchandise used due to more strict regulations on theuse of wildlife to protect rare species.

Focused and Strategic Measures

The JAL Group recognizes water as an important resource that affects climate change and biodiversity and commits to its sustainable use.
The JAL Group's water intake areas are mainly in Japan, where water stress levels are considered low (analysed using Aqueduct*), and we recognizethat its risks are low. We will continue our efforts to conserve water resources such as the recycling of water for washing aircraft parts, to name a*Aqueduct: Water risk analysis tool provided by the World Resources Institutefew. Additionally, the analysis will be reviewed annually.

99

Sustainability Performance
Opportunities✓Protection, restoration and rehabilitationof ecosystems✓Sustainable use of natural resources

Ecological impacts in securing raw materials and manufacturing processes
associated with the use of SAF.

Reference: TNFD

Water Related Risks

ESG DATA https://www.jal.com/en/sustainability/esg/pdf/esg.pdf

Classification
Opportunities based on businessperformance✓Products and services✓Market✓Reputation

Risk Mitigation Actions
・Provide a "safe and secure" air transportation environment through measures to prevent infectious diseases.
・Develop flight plans based on passenger demand.
Promote efforts to restore natural tourism resources in cooperation with local communities.

CO2,
air-quality,
etc.

■Priority Location Identification

WEB

Transition Risks✓Policy and Law✓Market✓Reputation

Outline of Risks
Impact on air transportation operations by pandemic outbreaks of infectious
diseases caused by the change of ecosystems.
Loss of natural tourism resources and reduced passenger volume due to changes in the ecosystem.

Sustainability■Nature-related Dependencies & Impacts

Classification
Physical Risks✓Acute risk
✓Chronic risk

Growth Strategy

The JAL Group's Board of Directors demonstrates a strong supervisory function through the periodic reporting (four times in FY2022) on theexecution of initiatives concerning climate change and biodiversity.
In the execution, the Sustainability Promotion Council, chaired by the President, formulates basic policies, sets important targets, manages progress,and deliberates and decides on policies to deal with issues.
The Sustainability Promotion Committee, chaired by the Senior Vice President of the General Affairs Division, deliberates on individual issues
identified through the environmental management system (EMS) and reports to the Sustainability Promotion Council.
The content of this disclosure based on TNFD's recommendations was reported to and approved by the Board of Directors in August 2023.

The loss of biodiversity can be a significant risk to the continuance of our air transportation business, and managing it can also lead to opportunities.
The workshop also assessed nature-related risks and opportunities based on the identified dependencies and impacts, which are summarized in thetable below. In the future, we will deepen the assessment of risks and opportunities by analyzing financial impacts as well.

The JAL Group Value Creation Story

Governance■Risks and  Opportunities on the Organization's Businesses

Opportunities

Based on the Task Force on Nature-related Financial Disclosures (TNFD) information disclosure framework, the following discloses information fromthe four perspectives recommended by the TNFD: governance, strategy, risk and impact management, and Metrics and Targets.

The JAL Group identified priority areas by focusing not only on water, but also on biodiversity itself, including
ecosystems such as forests and oceans, and the various species that inhabit them.
JAL Group's destinations were matched with areas of significant biodiversity in WWF's Biodiversity Risk Filter, andit was found that many areas in Japan are at high biodiversity risk. Hokkaido, Kagoshima (Amami), and Okinawa,
which have high demand for nature tourism, were identified as areas where our businesses are dependent on
nature. Also, Tokyo was identified as an area with high priority for biodiversity conservation, where operations havean impact on nature because it is a major airport.

Risks

The JAL Group recognizes that the preservation and restoration of nature is a particularly
important issue for a sustainable society, as it strengthens the social infrastructure, andcommits to comprehensive solutions to biodiversity and climate change.
To date, the JAL Group has actively promoted the conservation of biodiversity, including
the conservation of species through the prevention of illegal wildlife trade, the preservation of ecosystems throughplant quarantine, and the conservation of natural resources at World Natural Heritage sites. In addition, to address
climate change, we have been working on upgrading to fuel-efficient aircraft, implementing JAL Green Operations
regularly, and utilizing SAF in order to achieve Net Zero CO2 Emissions by 2050, while taking into consideration theimpact of CO2 reduction efforts on the ecosystem. (Disclosure of information on climate change based on the TCFD)
The JAL Group aims to build a society in which nature and people coexist in harmony through its business activities.
Based on the premise of reducing our impact on nature, we will create the flow of people through the preservationand experience of nature, and the flow of goods and logistics through foods and merchandise that are productsof rich ecosystems. In this way, we will create relationships and connections through mobility, and through therealization of "Nature Positive," and will create a future in which everyone can feel affluence and hopeful, thereby
enhancing our corporate value. To realize these goals, we will work under our "Commitment to Nature"

Strategy

Biodiversity Risks

Cargo and Mail

Introduction

Biodiversity Conservation

Environment
Envionment

One of the attractions of Okinawa are coral reefs. Coral reefs are not only beautiful but also have many roles,
such as being a place where living organisms coexist and live. However, in recent years, the number ofcoral reefs has been decreasing due to the rising sea temperatures and the occurrence of large numbers ofhazardous crown-of-thorns starfish. Japan Transocean Air (JTA) has formed a council with local companies
that support its efforts to regenerate coral reefs in Ishigaki and Kume Islands using a new method called the
Sexual Reproduction Method.

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特に関係する領域

Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Addressing Climate Change

Biodiversity Conservation

Environment
Envionment

Precaution of Environmental Pollution

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature■Prevention of Illegal Wildlife Trade

Progress towards achieving FY2025 targets■Considering Biodiversity in Foodstuffs and Commercial Products

In July 2022, the JAL Group established in-house guidelines for foodstuffs and commercial materials to be handled toconsider biodiversity from the viewpoint of protecting endangered animals.
We are promoting the guidelines within the company to properly understand the importance of biodiversity conservationand to recognize the relationship between foodstuffs and commercial products.

On November 28, 2022, JALJKT marked Indonesia's tree planting day by planting mangroves in the PIK Mangroves
Ecotourism Area as part of their SDGs initiative. The purpose of planting mangroves is to restore and maintain thequality, functions, and benefits of the mangrove forests. This initiative is a concrete action taken by JAL to conserve
local environmental biodiversity. In total, 250 mangroves were planted. Preparation for the activity included items
such as plastic gloves, rubber boots, hats, and personal hygiene tools. The event was attended by almost all staff
in the branch as well as the Asia and Oceania region. The founder of mangrove Jakarta, Mr. Paundra Hanoetama,
expressed gratitude for Japan Airlines' concern for the environment and hopes that this initiative can be continued inother places. The participants enjoyed this activity and it became a memorable moment for them.
Rudy Tirtonadi Banuarli, General Affairs Section, Jakarta Branch, Senior Vice President Office, Asia & Oceania

Particularly relevant areas:

Passengers

Cargo and Mail

Passengers

Reduction of plastic waste

In May 2021, the JAL Group formulated a target for FY2025 tosolve the problem of reducing single-use plastics, a contributing
factor to global warming and ocean pollution.
Through the promotion of 3R (Reduce/Reuse/Recycle) + 1R
(Redesign) and with the cooperation of our customers, we areattempting to eliminate all new petroleum-based products inall single-use plastic products provided to our customers at
cabins and lounges, and to replace the items thoroughly toenvironmentally friendly materials in airports and cargo.

Cargo and Mail

Effective Use of Limited Resources

responsible for a number of negative effects on
the environment and aims to live in harmony withresidents around the airport.
■ To reduce noise, we are upgrading our fleet tothe latest low-noise aircraft that comply withnoise standards. We are also actively introducing
noise abatement operational procedures.

Passengers

Cargo and Mail

FY20250blend of environmentally friendly
materials

Others (cargo, airports)

Cabins and Lounges

Reducereduce food waste and eliminate petroleum-derived single-use plastics products in all aspects of our business,
which will contribute to reducing greenhouse gas emissions.
■ To this end, we will work with our customers to reduce food waste and the use of plastic products at every
touchpoint, including our cabins. In addition, we will work with our suppliers to promote initiatives such as supply
chain reduction.
For more on "Reducing Food Waste," see "Sustainability of Restaurants in the Sky" on pp.103-104.

Redesign

100% recycled plastic bottles

Redesign

Redesign

Recycle50% biomass of plastic bags forbaggage covers for delivery service

Plastic sheets for packing cargo madefrom recycled materials, recycledfrom 40 years ago

RecyclePlastic

Paper

Redesign

・Replaced the lids of paper cups with paper productsthat have acquired international certification
・Recycling of paper cups started on some domestic flights

Redesign
Containers and tray mats that haveacquired international certification

Recycling of Inflight Paper Cups

The JAL Group has been recycling paper cups (lids, cups, muddlers) on some domestic routes since
December 2022 in cooperation with Nippon Paper Industries Co., Ltd.
In the past, used beverage paper products were incinerated as general waste from a technical andsanitary standpoint. However, the JAL Group has made it possible to recycle used paper cups bycreating a unique recycle chain whereby paper cups used for inflight services are properly sorted andcollected by the JAL Group, and then transported, accumulated, baled, and recycled by the Nippon
Paper Group using advanced technology.
Customer cooperation is essential for sorting the items. We will continue to work with stakeholders toaccelerate the promotion of resource recycling.

Video of paper cup
recycling
Sorted collection of paper cups

Recycling of Domestic Boeing 777 Aircraft Achieved a Recycling Rate of 96 Percent
We have been selling Boeing 777 aircraft, which operated domestic flights until the end of FY2021, to overseas markets. We have also taken
the first initiatives in Japan to recycle some of the materials used in the aircraft.
In addition to recycling metals such as aluminum and iron, we also recycled plastics and carbon fiber composite materials (CFRP) as materials
resulting in a 96 percent recycling rate.
We are also working on manufacturing and selling upcycled products to familiarize air travel by utilizing
discarded parts.
We will continue to take on new initiatives to realize a more sustainable society.

Data Section

recycling-based society that uses limited resources effectively.

■ To promote the effective use of limited resources, we will practice the 4Rs (Refuse, Reduce, Reuse, Recycle) to

Cargo, airports
Change 100% to environmentally-friendly materials FY22 result : 91%

Containers made from recycledplastic bottles

Voice■ To fulfill our responsibility to pass on the precious Earth to the next generation, the JAL Group aims to become a

JAL REPORT 2023

ReduceTopic

Basic Concept

101

Recycle・Wash and use repeatedly
・Lid made from 100% recycled plastic■ The JAL Group is aware that air transport isParticularly relevant areas:

No new petroleum-made items

FY2025

Sustainability

pollution to fulfill its responsibility to pass on the
precious Earth to the next generation.
■ We will strive to reduce carbon emissions fromaircraft and factories, which cause environmental
pollution.
■ To achieve this, we will reduce emissions of
nitrogen oxides (NOx), carbon monoxide (CO)and hydrocarbons (HC) by using aircraft enginesthat comply with appropriate standards. We
will also manage and reduce the release ofhazardous chemical substances in accordancewith the regulations.
  Aligned with Concerning Reporting, etc. of
Releases to the Environment of Specific Chemical
Substances and Promoting Improvements in Their
Management (PRTR Law), we will maintain a final
disposal rate for industrial waste of 1 percent or
lower.

Petroleum-derived plastics only

FY2019FY2019Growth Strategy

Basic Concept■ The JAL Group will strive to prevent environmental

Image of Reduction of Single-use Plastics Consumption Toward FY2025 Targets*Subject: Japan Airlines

Passenger cabins and lounges
Elimination of petroleum-derived plastics FY22 result : 45%
Reuse

Basic Concept

Discarded 45%
Replaced 91%▶Examples of Single-use Plastics Reduction

Noise Reduction
Particularly relevant areas:

FY2025 management targets

Cabins and Lounges: Elimination of all new petroleum-based plastics
Cargo and Airports: 100% switch to environmentally friendly materials

Focused and Strategic Measures

Mangrove Planting Activities

Precaution of Environmental Pollution

FY2022 Results

Important issue

The JAL Group Value Creation Story

Voice

Introduction

Single-use Plastics Reduction

In June 2018, the JAL Group signed the Buckingham Palace Declaration, promoted by the International Air Transport
Association (IATA), to promote the prevention of illegal wildlife trade.
In the Amami-Okinawa region, where many rare wildlife live, we are working with the Ministry of the Environment andlocal governments to participate in training sessions to prevent poaching and smuggling, to test the use of applications
to identify rare wildlife, and to establish a cooperative system in cases where it is difficult to identify species.

KAMEDA Hirofumi, Head of New Business Development Team, Japan Airlines Co., Ltd.
Engineering and Maintenance Division Business Promotion DivisionTOP

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Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Addressing Climate Change

Biodiversity Conservation

Precaution of Environmental Pollution

Environment
Envionment

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature

2

Approach

Providing "Safe," "Secure," and "Sustainable" and Tasty Food
Introduction● Procurement of certified ingredients

We use foodstuffs that have obtained global third-party certifications that takes into consideration food safety, environmental impact,biodiversity, workerʼs rights, and local communities.

Special Feature

Sustainability of Restaurants in the Sky
The JAL Group Value Creation Story

Uses MSC certified ingredients

We must keep our focus on the various
challenges of food that support life.
Greenhouse gas emission accompanied
by food is 21 percent to 37 percent of
all emissions, but one third of the foodis discarded.
There are a variety of issues surrounding
food, including overfishing and theimpact of pesticides on biodiversity,
worker’s rights, and nutritional bias.
Our efforts will continue to provide
customers with safe, sustainable, anddelicious meals that are friendly toecosystems and labor, and to recycle
them into resources without waste.

Uses ASIAGAP and
ASC certified ingredients● Continuous use of foodstuffs● Pursuit of food safety

We offer meals based on the "The Future 50 Foods" advocatedby Unilever & UK-WWF, which is characterized by high nutritional
value, low susceptibility to global warming, and soil recovery.

The hygiene auditors of JAL are well versed in FSSC22000,
an international standard for food safety, and conduct annual inhouse and lounge hygiene audits of inflight meals, in accordancewith the internal regulations for food safety.

PRIMARY LOGO

Implement a Food Waste Reduction Program that Includes the Supply Chain

・ Composting all food loss including
supply chain
・ Recycling-oriented vegetable

Purchasing/Storage Loss
・ Reservation analysis
・ Stock/buying control

SINGLE COLOUR LOGO

How hygiene auditing is done.
JAL auditors check for food safety
quality

Cooking Loss

Food Waste

・ Composting all food loss
・ Prevention of excessive removalof edible parts and reuse of edge
materials
・ Loss analysis by category

・ Campaigns to prevent leftover food・ JAL Meal Skip Option
・ Donations to welfare councils

Voice
Sustainability

・ Utilization of disposable crops
・ Reuse of non-standard crops

Processing LossSINGLE COLOUR LOGO

Supervised by KONO Fumiko"A dish from the list of “The Future
50 Foods"

Initiatives

Post-Harvest Loss

Rainforest Alliance
Certified Coffee

Growth Strategy

1

The JAL Group has acquired
MSC/ASC distribution cer tification, ASIAGAP certification,and ISO14001 certification.

KONO Fumiko
Cooking Producer, On-the-go Chef,
Supervisor of JAL inflight meals

The soup which we made only withthe stem of the broccoli discarded
at a stage of the production. We areplanning our next soup that utilizes thepeel of onion.

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JAL REPORT 2023

A plate from the "The Future 50
Foods" list

JAL Royal Catering inflight mealcatering facility

The spinach which grew with compost
which are composted by Residues of
the JAL inflight meal processing process.

Factories that have acquired environmental certification (ISO14001) and
set an environmental goal of reducing
food Loss.

Compost device for cooking loss
JAL Royal Catering makes compost
daily from its cooking residues andrecycles unused food materials.

JAL Meal Skip Option Service
This service is designed to meet theneeds of customers who wish to rest in
the cabin without inflight meal.

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Data Section

Lounge ”Farmerʼs soup”

Delicious and Sustainable Meals
When planning tasty and sustainableinflight meals, our first consideration is
the needs of our customers.
While we value communication with ourcooks, including exchanging opinionswith our crew, we aim to prepare inflightmeals that customers would want to talkabout.

104

Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Environment

Framework for respecting human rights

Respect for Human Rights
Special Feature

For more information on the JAL Group Human Rights Policy, please visit the JAL website
https://www.jal.com/en/sustainability/codeofconduct/pdf/human-rights_en1908.pdf

Framework for Respecting Human Rights
The JAL Group promotes efforts to respect human rights based on its human rights policy and internal rules governing the mechanism and operationof human rights due diligence (hereinafter “Human Rights DD”).
Aiming to respect the human rights of all stakeholders, including suppliers, customers, and employees, we set ten priority issues in FY2022 from thefollowing three perspectives: supply chain management, provision of products and services, and improvement of the internal environment.

Grievancemechanism

Risk
reportingSpecific details of each step are as follows:

Through its business activities, the JAL Group aims to realize a society in which all human rights are respected, and people can play an activerole with peace of mind. To this end, we strive to respect the human rights of all stakeholders, including suppliers, customers, and employees, inaccordance with the JAL Group Human Rights Policy. Our basic approach to each stakeholder is as follows.

■Suppliers
We will work together with our business partners to build a sustainable supply chain that includes respect for human rights and appropriate labor
practices. We also conduct risk assessments and monitoring to confirm the soundness of our supply chain. In addition, we will continue to procure
products and meals that take human rights into consideration, such as service supplies and meals provided on flights and in lounges.

■Customers
We will work to make all customers feel comfortable and secure.
We will focus on three areas: improving accessibility, which aims at stress-free travel and provides a variety of travel options; the prevention of humantrafficking, which aims to prevent complicity in human trafficking through air transportation; and the prevention of human rights violations throughexternal communications so as not to cause unintentional human rights violations through external dissemination.

■Employees
In addition to improving the working environment by preventing harassment, reducing long working hours, and preventing personal information
leakage, we will promote initiatives to respect diversity by promoting DEI, such as women's advancement in the workplace and supporting the active
participation of people with disabilities.

1. We annually confirm that there are no issues with the policy contents. After confirming the contents, there were no changes to the policy in
FY2023.

2. Human rights risks assessment

2. We conduct human rights risk surveys for all divisions within the JAL Group and all Group companies. We conducted a similar human rights
risk survey in FY2023.

Stakeholders

3. Human rights risks
evaluation/extraction of issues

3. Among the risks that have emerged from the human rights risk survey, we have identified human rights issues that need to be addressedwith particular emphasis. In FY2023, we identified "prevention of human rights violations by external communications" as a new issue,
which was one of the most common risks.

Suppliers

4. Review on the implementation status of
the previous year's improvement plan

4. At the management level, we conduct a review of the previous year's activities. In FY2023, in light of the gradual transition of society to thepost-COVID-19 era, we shifted our focus from issues related to preventing the spread of infectious disease.

7. Reflect on the previous year's review inthe current year's improvement plan

7. Based on the results of the management review, improvements are reflected in the improvement plan for the current fiscal year as necessary.
In FY2023, we also reflected the suggestions made at the management review.

8. Confirmation of important issues andimprovement plan for the current fiscal year

8. Based on the above points two to seven, we have established priority issues and improvement plans for the current fiscal year.

9. Implement important issues andimprovement plan for the current fiscal year

9. In accordance with the established priority issues and improvement plans, we will proceed with initiatives in this fiscal year (details on thenext page).

10. Report internally and externally

10. We report the results of our efforts in the previous fiscal year, priority issues for the current fiscal year, and improvement plans internallyand externally through integrated reports and websites.

Challenges

Scheduled to be implemented in FY2023

Confirmation of respect for human rights in the supply chain

Continued

Procurement of products with consideration for human rights

Continued

Improvement of accessibility

Continued

Initiatives towards safety and comfort (Prevent the spread of infectious diseases)

Repositioning

Prevention of human trafficking

Continued

Prevention of human rights violations by external dissemination

New implementation

Prevention of harassment

Continued

Prevention of long working hours

Continued

Fair and impartial hiring and promotion

Continued

Prevention of discrimination against race and culture

Continued

Prevention of personal information leakage

Continued

Customers

Employees

Please refer to the special issue "Eleven priority issues, indicators and targets related to respect for human rights" on pp.107-108 for specific initiatives.

Data Section

6. Management review

6. We report the contents of the previous year's review, the priority issues proposed for the current year, and the improvement plan to the
President. In FY2023, we reported that we will reposition issues related to the prevention of the spread of infectious disease from priority
issues, and that we will add new measures to prevent human rights violations caused by external dissemination.

List of Initiatives to Respect Human Rights

Sustainability

5. We hold dialogues with outside experts and formulate proposals for priority issues and improvement plans for the current fiscal year basedon the contents of the "3. Human rights risk evaluation/extraction of issues" and "4. Review of the implementation status of the previous
year’s improvement plan".
In FY2023, we invited SHIMOTAYA Takeshi of The Global Alliance for Sustainable Supply Chain, a general incorporated association, tohold dialogues with our officers in our Sustainability Promotion Committee. Although our priority issues were not renewed, we received
valuable advice in affirming respect for human rights in our supply chain, and we have reflected this in our concrete efforts.

3. Co-create enjoyment and delight through travel withcustomers and society.

JAL Group's Efforts to Respect Human Rights

1. Confirmation of Human Rights policy

5. Dialogue with experts/
Establishment of important issues
and improvement plan for thecurrent fiscal year

2. Offer a variety of travel options to all ourcustomers; andGrowth Strategy

HRDD

Based on the JAL Philosophy, which defines the basic attitude of employees, we will:

The JAL Group Value Creation Story■ All officers and employees of the JAL Group fulfill their responsibility to respect the human rights of all people.
■ In accordance with the JAL Group Human Rights Policy, we respect all stakeholders including our customers andevery employee of the JAL Group. We strictly prohibit discrimination on the basis of gender, age, nationality, race,
ethnicity, religion, social status, disability, sexual and gender identity. We strive to prevent physical and emotional
stress to our customers when providing goods and services, prevent human trafficking by air transportation andprevent human rights violations in our supply chains.
■ To achieve this, we have included human rights due diligence in our business processes, and address issues,
disclose information and continuously improve our operations. In addition, JAL Group employees are educatedon gender equality, LGBTQ issues and the prevention of human trafficking. We also take steps with regard to our
supply chains (refer to Responsible Procurement).

WEB

JAL Group Accessibility Service Policy

1. Provide stress-free travel for all
customers:

Basic Concept

Introduction

Respect for Human Rights

Flow for Human Rights DD initiatives (Promote efforts to respect human rights in line with this flow every fiscal year)

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Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Environment

Respect for Human Rights

Framework for respecting human rights

Special Feature1

Confirmation of Respect for Human Rights in the Supply Chain

Introduction

Special Feature Eleven Priority Issues, Indicators and Targets
Related to Respect for Human Rights

7

Confirmation rate of primary supplier soundness

Relevant indicators 100 percent, Completion of human rights
investigations of new key suppliers 100 percent

2

Procurement of Products with
Consideration for Human Rights

Relevant indicators

Percentage of inflight items using international
certified paper that takes forest resources
into consideration 100 percent

As for the service supplies and meals provided to our customers at the cabin and lounge, we adopt
certified products that take into consideration the worker’s rights involved in forestry, agriculture, andfishing. We strive not to be complicit in human rights violations such as poor working conditions, childlabor, and land rights violations of indigenous peoples. In FY2022, 87.8 percent of paper products were
replaced with certified products, and ten kinds of certified fishery and agricultural products were used.
In FY2023, we aim to increase the usage rate of certified paper products to 95 percent.
Inflight meals using ingredients certified by ASC and
GAP (For details, see the special issue "Sustainabilityof Restaurants in the Sky" on pp.103-104.)3

Improving Accessibility

Percentage of customers who find it difficult

Relevant indicators to travel compared to FY2019 results 2.5
times

4

Prevention of Infectious End
Disease Expansion

Relevant indicators

Bottom three answers to questions
that is concerned about DVS infectious
disease measures

Relevant indicators

Prevention of Human Rights Violations
by External Dissemination

Relevant indicators

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JAL REPORT 2023

*Indicators for evaluation of LGBTQ+ and other sexual minority initiatives by companies and organizations

10

Prevention of Discrimination
Against Race and Culture

11

Attendance rate of education related torespect for human rights 100 percent

Amid the increasing complexity of the environment surrounding the JAL Group, we will establish a checking system to ensure that there are no humanrights violations committed unintentionally through external dissemination. This issue was newly added in FY2023. In FY2023, we will strengthen the
checking system so that the main department can make effective confirmations. To raise awareness among employees, we will also incorporate thiscontent into training programs related to the respect for human rights and work to prevent violations of human rights caused by external dissemination.

Percentage of men taking childcare leave 100 percent

The JAL Group strives to be a company where everyone can play an active role regardless of gender,
age, nationality, race, ethnicity, religion, social status, disability status, sexual orientation, gender identity,
or company of origin. In FY2022, for the seventh consecutive year, the company was awarded thehighest "Gold" award in the "PRIDE Index*" developed by the voluntary organization "work with Pride".
In addition, employees with disabilities attended an autonomous career development training, an internalintern system. To further encourage the success of diverse human resources, we took advantage ofwork with Pride "Pride Indicator 2022"
diverse perspectives to operate booths at LGBTQ-related events (local pride events) held across Japan.
To promote the understanding of disabilities, we collaborated with other companies in the planning and management of events. In FY2023, we will
promote the expansion of opportunities for people with disabilities to play an active role and to achieve the target number of employment for people
with disabilities set forth in the JAL Group Medium Term Management Plan Rolling Plan 2023.

Exchange of views on human trafficking with airport
companies

NEW

Proportion of women in management 30 percent

rate for persons with disabilities 3.2
Relevant indicators Employment
percent

Relevant indicators

Number of facilities developedin consideration of DEI

Information security education materials for all
employees

Prevention of Personal
Information Leakage

Internal events to promote understandingof unconscious bias

Relevant indicators

Number of incidents 0 cases

The JAL Group provides information security education and targeted email attack training
for all employees to raise their awareness of information security. In FY2022, we continued
similar efforts to raise employees' awareness of information security. We also strengthened
information security through stocktaking of unnecessary IDs and other measures to prevent
personal information leakage by customers and employees. In FY2023, we will continue toraise employees' awareness of information security and prevent personal information leakage ofcustomers and employees.

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Data Section

6

Fair and Impartial Hiring andPromotion

Workcation promotion activities with outside
parties

As the number of foreign employees has increased in the global environment, we are working to develop
human resources that can respect diverse cultures and create new values. In FY2022, we conducteda survey to group companies that employ a large number of non-Japanese employees dialogues with
employees who work abroad, to identify human rights issues arising from the increase in the number of
non-Japanese employees. Based on what we have identified, we will work to make further improvements.
In FY2023, we will establish rules to support non-Japanese employees, which is expected to increasein the future, and will endeavor to prevent cases of human rights violations. We will also conduct internal
events to promote understanding of unconscious bias and work to prevent discrimination.

Attendance rate of education related torespect for human rights 100 percent

The JAL Group regards unintentional complicity in human trafficking by air transport as aparticularly important human rights issue. In FY2022, continuing from the previous year, allemployees were provided with education on the respect for human rights, including informationon the prevention of human trafficking. In addition, as part of our efforts with external
stakeholders, we invited officers from the National Police Agency to tell us about the current
situation in human trafficking in Japan. We held panel discussions with staff from airports andcabins in the company. In FY2023, we will continue to educate all employees on the preventionof human trafficking, expand the scope of our external stakeholders, and take on prevention
measures.

Average number of hours per month for overtime and holiday work
４ hours/person (Linked to 1,850 hours of total working hours)

With the aim of curbing overtime and holiday work, we are developing a system to support flexible
workstyles, such as a system to change working hours, a superflex system, and a system that allows
employees to take paid leaves on an hourly basis. In addition, we are making efforts to create anenvironment in which employees can easily take time off, including workcation that allows employees
to work remotely during vacation periods, and bleisures that allows employees to take time off duringbusiness trips. In FY2022, we conducted a seminar on working hours management for managers
and reviewed internal rules for telework. We promoted a hybrid work system that combines officeattendance and telework, enabling employees to choose where to work while being conscious ofproductivity and communication. In FY2023, we will continue to hold seminars on working hour
management for managers. We will also reduce the number of working hours by improving theefficiency of our business processes and changing our decision-making processes.

Sustainability

Touchless computers at the airport

Prevention of Human
Trafficking

Total working hours 1,850 hours/person
Ratio of employees who work long hours 0 percent

Relevant indicators Annual paid leave usage ratio 100 percent

9

Special Assistance Counter

We are working to ensure that all customers can enjoy a safe and secure air travel. In FY2022, we
promoted initiatives based on three pillars (improve hygiene and cleanliness, use digital technology
to make touchless automatic and self-service, and support travel), including employee education on
hygiene and infectious disease and the implementation of "hospitality service utilizing facial recognition
trial" at Amami Airport. We will continue to provide airport and inflight services that allow customers totravel with a peace of mind. In the light of the gradual shift to the post-coronavirus era, we will change
the position of these issues from priority issues in FY2023.

58

Prevention of Long
Working Hours

We have established the Regulations on the Prevention of Harassment in the Workplace, explaining
in detail the various definitions of harassment, the prohibition and clearly stating that violations will be
subject to disciplinary action. In addition to the Harassment Consultation Service, we have establisheda 24-hour compliance consultation service (Group Hotline) and a sexual harassment consultation
service dedicated to cabin attendants. In FY2022, in addition to employee education, we also provided
training on the emotional care of employees for managers, who have been subjected to customer
harassment. In FY2023, we will conduct additional compliance education for all JAL Group employees
and conduct workplace visits to ensure compliance. We will also deepen our efforts against customer
harassment.

Growth Strategy

In accordance with the JAL Group Accessibility Service Policy, we are working to create fun andentertaining travel by providing stress-free travel options to all customers. We promoted initiatives
based on four pillars (employee education, environmental improvement, information dissemination,
and accessible tourism), including training and lectures to enhance empathy through interaction withpara-athletes, pre-flight workshop to relieve various concerns about flying, and tours for customers
with developmental disabilities. In FY2023, we will continue to strive to improve accessibility based on
the four pillars.

Training for managers, including harassment
prevention

Number of violations of theCode of Conduct 0 cases

Relevant indicators

The JAL Group Value Creation Story

We strive to establish a sustainable supply chain that includes respect for human rights, compliance with laws and regulations, global environmental
protection, and proper labor practices. In FY2022, we distributed and collected self-assessment questionnaires to all 461 main suppliers, to identify
risks, explain the results to suppliers who were able to identify risks, requested corrective measures, and completed soundness checks. We have also
started the operation of a hotline for domestic and overseas suppliers. In FY2023, based on the advice we received in dialogue with experts, we will
identify suppliers that are closely tied to our company and highly important from an ESG perspective, and will conduct on-site audits.

Prevention of Harassment

108Chapter 4 Sustainability

Efforts by Corporate Citizenship Activities
As a good corporate citizen, the JAL Group aims to build better relationships with its stakeholders
and contribute to the development of society. As part of our corporate citizenship activities, wewill use our know-how as an airline company to create opportunities to think about the future of
the environment and society, foster the next generation, support culture and sports, and work withvarious stakeholders. We support volunteer activities by our employees.

1

Topic

JAL SORAIKU®

®

JAL SORAIKU aims to provide students with the opportunity tothink about their future and the future of the global environmentby exploring the wonders of the sky and the joy of flying. We haveheld online classes, SORA-ECO Classes, origami plane classes,
and virtual JAL Factory tours as activities that can be done during
COVID-19. In addition, we have also resumed face-to-faceactivities. We encourage people to think about the future throughonline programs and face-to-face interactions.

2

Education Content Delivery

We offer JAL STEAM SCHOOL, a class in which pilots explain theworld of aircraft and aviation from the perspectives of STEAM*1. In
addition, JAL STEAM SCHOOL Portable, an interactive programthat summarizes the contents of the class in an easy-to-understandmanner, is exhibited in science museums and other venues throughout
Japan to provide opportunities for more people to develop their creative
thinking skills. Furthermore, in collaboration with DOCOMO gacco, we
introduced "People who Work in Airline Industry"*2 presented by JAL
Group employees in gacco®, a video learning service.

Major External Evaluations (2022 to 2023)
Major ratings and awards are also posted on the JAL website.
WEB

https://www.jal.com/en/outline/awards.html

WEB

https://press.jal.co.jp/en/awards/

Comprehensive evaluation of service
quality, safety well-being initiatives, andsustainability initiatives

The JAL Group Value Creation Story

Topic

Introduction

Build better relationships with stakeholders

Evaluation of airport and in-flight products
and services

SKYTRAX「World Airline Star
Rating」
From 2018

APEX「WORLD CLASS」
First Japanese airline

SKYTRAX「World's Best Economy Class」(Third time)
SKYTRAX「Best Economy Class Airline Seat」
Six consecutive terms (seventh)

Evaluation of sustainability

Growth Strategy

An online class on the job ofcabin attendants

Number of JAL SORAIKU® participants (past 4 years)
Fiscal Year

FY2019FY2020

FY2021

FY2022

Number ofpeople191,840

20,43550,14752,586Topic

3Culture and Sports Support

Elementary school
students experiencing
Wheelchair Basketball(Credit: the Nippon
Foundation Para
Suppor t s Suppor tCenter)Results (last three years)
FY2020

FY2021

FY2022

Participating school

129 schools

277 schools

797 schools

Number of people(12,559)(23,960)(73,246)

Topic

4

Ensuring Air Transport andSupporting Affected Areas

In response to the earthquake off the coast of Fukushima Prefecturein March 2022, from the day after the earthquake, we increased
scheduled flights to and from the Tohoku region, assigned larger
aircraft and operated extra flights (March to April: 672 flights) tomaintain and secure air transportation for people in the Tohoku
region. In addition, we conducted the following activities to provide
assistance for natural disasters that occurred in Japan andoverseas.

FY2022 Support Results
Employee donations (to UNICEF)
Earthquakes in Turkey and Syria
399,894 yen

JAL Charity miles
2,875,500 yen

Employee fundraising
Torrential rains in August 2022 in Japan305,622 yen

JAL Charity miles
1,736,000 yen

Evaluation of workstyle innovation

The Ministry of Internal Affairs andCommunications' 100 Best Telework Pioneers

Evaluation of DX initiatives

Evaluation of health and productivity management

Selected by METI and the Tokyo Stock
Exchange as health and productivity
management for the fifth time in two
consecutive years

Evaluation of disclosure

Twenty-four JAL Group companies were certified
as "Certified Health & Productivity Management
Outstanding Organizations Recognition Program"by METI and the Japan Health Council

Evaluation of Wellness Promotion

For information on Charity Miles, visit the JAL website.
WEB

https://www.jal.co.jp/jp/en/jalmile/use/charity/*1 A universal teaching method that combines the comprehensive study of science,technology, engineering, art, and mathematics. It is an educational philosophy that
adds creativity education to science and mathematics education, aimed at cross-disciplinary learning to create a cycle of learning (seeking) and making (creating).
*2 Already closed.
*3 Hands-on para-sports classes for elementary, junior high and high schools hosted by the Nippon Foundation Para Sports Support Center*4 Education and training programs conducted by para-athlete instructors are not limited to students but also targeted towards corporations, local governments, and all
generations throughout Japan.

JAL REPORT 2023

JobRainbow「D&I Award 2022」
Best Rating "Best Workplace"work with Pride "Pride Indicator 2022"
Top "Gold" for seven consecutive years since 2016

Japan Securities Analysts
Association "Award for
Excellence in Corporate
Disclosure"No. 1 in transportation for the
fourth time in five years

Selected as an Environmental
Sustainable Company at the 4th
ESG Finance Awards Japan

Data Section

Fiscal Year

Evaluation of DEI initiatives

Experiencing JAL STEAM SCHOOL Portable

Sustainability

In support of a D&I society that recognizes individual differences
and promotes active participation, we have expanded our supportand sponsorship from the “the School of Challenge for Tomorrow”
program*3 to encompass all five programs under "the School of
Challenge for Tomorrow" initiative*4 and are working to further
promote a barrier-free mindset through parasports so that everyone
can feel the importance of challenging themselves to something new.

109

Climate Change "A-"
Assessment

Dow Jones Sustainability Asia Pacific Index
Selected for the first time

Accreditation of Sports Ale Company Bronze by theSports Agency for the sixth year, and the second
accreditation of Sports Ale Company 2023 Bronze
for two consecutive years.

*Our company's inclusion in the MSCI Index and use of the MSCI logo, trademark, service mark or index name is not intended to sponsor, promote or promote ourcompany by MSCI or its affiliates. MSCI's services and data are the exclusive property of MSCI, and the names and logos of MSCI and the MSCI Index are trademarks
or service marks of MSCI or its affiliates.

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