Business Strategy

Highlight 2

the TCFD Recommendations
With global environmental conservation as a key management theme, we have been constantly enhancing
the environmental superiority of railways, which are more energy efficient and have less environmental impact
than other modes of transportation, by proactively adopting energy-saving rolling stock and equipment.
Additionally, we strive to further reduce CO2 emissions to achieve carbon neutrality in 2050. On the basis of
the Japanese government's 2050 carbon-neutrality policy, JR Central and the JR Central Group aim to achieve
net zero CO2 emissions in 2050 as well as reduce CO2 emissions in FY2030 by 46% from FY2013 levels.
In addition, we endorsed the TCFD recommendations in May 2021 and are proceeding with the analysis ofclimate change-related risks and opportunities. We will continue to further deepen the risk analysis to support
stable business operations over the long term, while contributing to the realization of a sustainable society.
* TCFD stands for Task Force on Climate-related Financial Disclosures, established by the Financial Stability Board (FSB) in order to consider issues concerning climate-related disclosures, etc. Its final
report establishes the recommendation that companies, etc. understand and disclose information about the risks and opportunities that climate change presents to their business.

1. Gove r n an c e
At JR Central, the Corporate Planning Division and the General Technology
Division, which oversee the management and the technology sectors,
respectively, play a central role in formulating and promoting environmental
measures. The President and Representative Director and related directors

reflect the results of the study on climate change in management, and oversee
the efforts to address climate-related issues. In addition, important matters are
discussed and reported at the Board of Directors meetings, etc.

2 S tr ate gie s
The main climate change-related risks and opportunities that we recognize are as follows:
Risk nameRisk materialization
period･Increased costs from the introduction of carbon pricing (decarbonization tax, etc.)

Medium term

Transition･Increased costs to respond to stricter regulations on CO2 and other emissions
risks･Increased costs to procure energy and materials[Direct emissions] ○ Hybrid powered rolling stock
Fuel:
0.07 million tons ○ Development of hydrogen-powered rolling(approx. 5%)
stock (fuel cell trains or hydrogen engine trains)

Medium term
Medium term

･Increased damage to railway facilities from more frequent wind and flood damage

Short term

･Increased suspension of service from more frequent wind and flood
Physical damage (decreased transportation revenue)
risks･Adverse impact on material procurement, etc. due to supply chain disruption

Short term

･Decreased revenue due to customers refraining from traveling under extreme weather conditions

Long term･Customers who value environmental superiority shiftingfrom other modes of transportation to railLong termLong term

JR Central s
CO₂ emissions:1.25 million tons
(FY2022)○ Research on battery and fuel cell railcars○ Biofuel tests[Indirect emissions]○ Energy saving
Electricity purchase:
1.18 million tons ○ Renewable energy utilization(approx. 95%)

* Definition of risk materialization period: About one year for short term, through 2030 for medium term, and through around 2050 for long term

(1) Transition risks

As we are aware of the risk of increasing costs for regulatory responses andCO2 emissions due to the introduction of carbon pricing, among other factors,
we recognize the importance of measures to reduce CO2 emissions.
Of the 1.25 million tons of CO2 currently emitted by JR Central (FY2022),
approximately 95% is indirectly emitted through our use of electricity, while theremaining 5% is directly emitted through our use of fuels, etc.
To address the 5% direct emissions from the use of fuels, we introduced theSeries HC85 with reduced environmental impact as well as promote tests on
biofuels. We will also begin simulated driving tests combining vehicle driving
test equipment and hydrogen supply facilities to develop hydrogen-powered
vehicles. Research and development will be continued for battery railcars. To
address the indirect emissions from the use of electricity, which account for

the remaining 95% of the total, we will make further energy-saving efforts, suchas introducing additional energy-efficient rolling stock including the N700S and
Series 315, and replacing frequency converters for the Tokaido Shinkansen one
by one with types with lower power loss, in addition to other decarbonization
efforts that are consistent with the decarbonization trend across the entire
power generation sector in Japan. We have also achieve substantially zero CO2emissions by using, since July 2022, a FIT non-fossil fuel certificate equivalent
to the electrical energy used for the train operations of the Taketoyo Lineto enable the trains on the line to run substantially 100% on electric power
derived from renewable energy. We are also implementing other measures topromote the use of renewable energy, including solar power generation on
Shinkansen banking, which is currently under preparation.
* Refer to pages 65-66 for information on specific measures.

(2) Physical risks

In the railway business, the largest climate change-related physical risk arises
from wind and flood damage. For this reason, we have taken various measuresin the past and strive to manage such risks more effectively going forward by
analyzing the impact of climate change using the framework of the TCFD.
As part of this effort, we have conducted a quantitative risk analysis(3) Opportunitiesof potential damage to Tokaido Shinkansen equipment as a result of theincreasingly frequent occurrence of river floods, and the analysis results weredisclosed on our website in April 2022. In addition, we have recently completed
the analysis of revenue decreases of the Tokaido Shinkansen due to suspensionof service. (Refer to“Analysis of Financial Impact”for specific disclosure content.)

We see the recent rise in environmental awareness toward decarbonization
as an opportunity to further promote the use of train services, a means oftransportation that possess high environmental superiority.

JR Central intends not only to increase transportation revenues, but also tocontribute to the preservation of the global environment by securing safe andstable transportation and improving transportation services.

Of these risks and opportunities, we expect the impact of wind and flood
damage to be most significant for the railway business. Therefore, we haveanalyzed the financial impact on the Tokaido Shinkansen, JR Central’s mainmanagement resource, as follows:- An a l y s i s o f f i n a nci a l i mpa ct (ri sk of da ma ge t o facilitie s) Since its founding, JR Central has actively worked to strengthen its facilities
against all natural disasters, whether they arise from climate change or not,23

Generating "Economic Value"

Corporate Data

Creating "Social Value"

Targets toward carbon neutrality andaddressing the TCFD Recommendations

Targets toward carbon neutrality and addressing

Opportunities

Highlight 2

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

based on the recognition that the starting point and the biggest mission ofrailway business is securing safe and reliable transportation.

* Refer to pages 35-42 for information on specific measures.

On the other hand, according to various studies on climatechange, the frequency of floods is forecasted to increase also in
the areas in which JR Central operates as average temperature
continues to rise. In this case, there is a risk of increase in damage
to facilities that support train operations.
Based on this understanding, we have analyzed the risk of damage to facilitiesof the Tokaido Shinkansen, which accounts for the largest portion of ourtransportation revenues, by using hazard maps for design scale rainfall publishedby the national and local governments※1 and found that some of the facilities
would suffer damage.
Based on this scenario, we have analyzed the potential financial impact byconsidering the risk of increase in the probability of occurrence of river flooding
due to climate change. The result of the analysis indicates that there would be anincrease of approximately 10 to 20 million yen under the RCP 2.6※2(2℃) scenario
and an increase of approximately 20 to 30 million yen under the RCP 8.5 (4℃)
scenario in financial impact (damage to facilities) for the single year of 2050.
On a cumulative basis through 2050, a financial impact of approximately 220
to 270 million yen and approximately 340 to 490 million yen is expected under
the RCP 2.6 (2℃) scenario and the RCP 8.5 (4℃) scenario, respectively.
For the Tokaido Shinkansen, we are implementing measures to ensure that our
train operations will not be significantly affected by flooding caused by a design
scale rainfall, including relocating, elevating, and/or installing anti-flooding doors
at main facilities by May 2024. The analysis above has taken into account thesemeasures. Although there is a possibility that some of the facilities will suffer
flooding damage, train operations are not expected to be significantly affected.
Therefore, we expect no significant financial loss from decreases in transportation※3
revenues.

Increase in financial impact (100 million yen)

Scenario

2050 (single year)

Cumulative through 2050

RCP2.6（2℃）

0.1～0.2

2.2～2.7

RCP8.5（4℃）

0.2～0.3

3.4～4.9(million yen)

Increase in financial impact of river flooding (cumulative)

500
RCP2.6400

RCP8.5

300
200
100
0

2020

2025

2030

2035

2040

2045

2050 (Year)※1 Design scale rainfall is a rainfall whose probability of occurrence is once in several decades
to 200 years.
※2 RCP stands for Representative Concentration Pathways and RCP scenarios are scenarios on
representative concentration pathways published in the fifth assessment report of the IPCC.
※3 Refer to“Flooding countermeasures”on page 39 for details.

- A nal y s i s o f fi nanci al i m p act (r i s k o f r evenue d ecr eas es d ue t o s us p ens i o n o f s er vi ce) For the Tokaido Shinkansen, we have installed rain gauges at 59 locations
along railway lines and elsewhere. When rainfall reaches a certain threshold,train operations are adjusted as appropriate, such as running slowly orsuspending service, in order to ensure safety. We have worked to ensure safety
at higher levels by, for example, introducing operation adjustment rules based
the soil rainfall index, an excellent indicator of the danger of landslide disaster,in 2022. We are also implementing measures to ensure that train operations
will not be significantly affected by rainfall, including the implementation of theabovementioned flooding countermeasures for the Tokaido Shinkansen.
On the other hand, the occurrence frequency of heavy rain may increasein the future due to average temperature rises caused by climate change. In
this case, the Tokaido Shinkansen may be subject to increasing probabilities
of suspension of service and train delays. In the case of suspension of service,
the revenue therefrom would be lost. In the case of train delays for two hours
or more past the scheduled arrival time, the limited express fare would berefunded. As such, if rainfall that affects Shinkansen operations increases, ourrevenues are expected to decrease.
In view of these circumstances, we have calculated the potential financial
impact by applying rainfall occurrence frequency forecast scenarios under climatechange to the amount of decreases in revenues due to suspension of service
and train delays caused by heavy rain, which has been obtained from the train
operation data up to the time of analysis. The result of the analysis indicates that
there would be a financial impact of approximately 60 to 80 million yen under the
RCP 2.6* (2℃) scenario and a financial impact of approximately 120 to 160 million
yen under the RCP 8.5 (4℃) scenario for the single year of 2050.
On a cumulative basis through 2050, a financial impact of approximately 1,070
to 1,320 million yen and approximately 1,660 to 2,340 million yen is expectedunder the RCP 2.6 (2℃) scenario and the RCP 8.5 (4℃) scenario, respectively.
This impact amount, even as measured by the maximum cumulative amount

Increase in financial impact (100 million yen)

Scenario

2050 (single year)

Cumulative through 2050

RCP2.6（2℃）

0.6～0.8

10.7～13.2

RCP8.5（4℃）

1.2～1.6

16.6～23.4(million yen)

Increase in financial impact of heavy rain (cumulative)

2,500
RCP2.62,000

RCP8.5

1,500
1,000
500
0

2020

2025

2030

2035

2040

2045

2050 (Year)of 2,340 million yen under the RCP 8.5 (4℃) scenario, would be equivalent
to only 0.3% or less of our Shinkansen transportation revenues for the latest
fiscal year that ended March 31, 2023. As the Tokaido Shinkansen accounts forapproximately 90% of JR Central’s transportation revenues, the financial impactof the scenarios analyzed above, if it should materialize, would be insignificant
compared to the Company’s overall transportation revenues.
* This analysis did not consider the impact of typhoons.

3 . Risk management

4. Goals and indicators

At JR Central, the Corporate Planning Division and the General Technology
Division assess and analyze the impact of climate change risks and opportunities
on its business in close cooperation with related departments, and formulate
and promote countermeasures.
As part of measures to reduce physical risks, we are working on theconstruction of the Chuo Shinkansen that utilizes the Superconducting Maglev
System as a fundamental measure to prepare for large-scale disasters, inaddition to the measures that we have been taking since our establishment tostrengthen our facilities to cope with natural disasters in general, not just thosecaused by climate change.
We will continue to deepen our risk analysis on climate change to ensure thelong-term and stable operation of the railway business and also to contribute to
the realization of a sustainable society.

On the basis of the Japanese
government's 2050 carbon- neutrality
policy, JR Central and the JR Central
Group aim to achieve net zero CO2emissions in 2050 as well as reduce
CO 2 emissions in FY2030 by 46%
from FY2013 levels. With these
efforts, we will further elevate theenvironmental superiority of railways
and contribute to the realization of asustainable society.

(thousand t) The JR Central Group s CO₂ emissions

1,800

1,705

1,600

Scope1

1,400
1,200
1,000
800
600

Scope2

1,394
vs FY2013
-46%

1,569
1,279

400
200
0

Net

zero
137 1152013 2022 2030 2050 (FY)CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

24

Business Strategy

Highlight 3～Human resource development, creation of a rewarding workplace, and health and productivity management～
JR Central views its employees as its greatest management resource. Our management philosophy of "contributing to
the development of Japan's main transportation artery and social infrastructure" can be realized at higher levels whenthe management philosophy and action guidelines are embodied in the work of each employee and then put together as
teamwork for thorough implementation. Based on this understanding, the Company strives to improve engagement* andmaximize its corporate value by actively promoting human resource development and the creation of a rewarding workplace.
It is also important for us to maintain and promote the health of employees in order to make these corporate activities
sustainable. The Company is actively promoting initiatives to enhance health and productivity management by establishing a"Health Promotion Policy" and an organization to support it, which is headed by the officer in charge of personnel affairs.
* Meaning the state in which an employee is proud of being a member of the Company and is happy to work for it.

Human capital management

Human resource development

Creation of a rewarding workplace"Basic policy"

Active use of diverse human resources

OJTGroup training

New ideas and technologies

Promotion of women's empowerment
Support for maintaining balance
between childcare/ nursing care and work

Selfdevelopment

Employment of persons with disabilities

Develop diverse individuals

Career development support

Overseas study and research dispatch
Application-based training
Internal application-based assignment
ICT education
Development of business experts

Interview by the Personnel Department

Goal management interview

Ability to work safely
Ability to provide better service
Ability to work eﬃciently

Promotion of dialogue in the workplace"Skills improvement and the creation of a lively workplace" "One STEP" activities
Health and productivity management
Mental healthcare/Workplace vitality improvement projects"Regularly and quantitatively monitoring engagement"Engagement survey

Engagement

Realize our management philosophy at a higher level

Reinforcement and accumulation of human capital

Sense Technicalof unity capability

In order to improve engagement, the Company conducts an annual engagement survey of all employees (excluding
those on leave) so that the status of engagement can be monitored regularly and quantitatively. Continuous
improvement measures are taken to address the problems identified in each survey, leading to a virtuous cycle ofsustained employee engagement, enhanced organizational performance, and boosted productivity.

1. Human Resource Development
General principles
The railway business can function as a safe and sound system as a whole
only when each employee is strongly committed to fulfilling his or her role
and works diligently on a daily basis with a high technical capability andaccurate knowledge, while various technical skills are highly integrated
through the coordination of various departments.
For this reason, JR Central has adopted“discipline,”“technical capability,”
and“sense of unity”as its three general principles for human resource
development, which are particularly relevant to railway operation, andis working on human resource development based on these principles
in order to continue to fulfill its social mission stably and sufficiently overthe long term. More specifically, the basic education and training system
mainly involves on-the-job training (OJT), in which employees learn theknowledge and skills required for work through daily operations in each

25

Generating "Economic Value"

Creating "Social Value"

Corporate Data

Initiatives for Human Resources to
Support JR Central's Sustainable Growth

Initiatives for Human Resources to Support JR Central's Sustainable Growth

Discipline

Highlight 3

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

workplace. They also acquire additional knowledge and skills through grouptraining, which is held in the General Education Center, etc., and various selfdevelopment opportunities, such as internal and external training programs,
etc., that help employees acquire knowledge and skills on their own.
It is also necessary, particularly in administrative departments, to help
diverse employees fully demonstrate their ability and to create new value by
responding to various changes in both the internal and external environment
with new perspectives and flexible ideas.
Based on the premise of long-term employment, both in the railway
operation and in the administrative departments, in order to enable
employees to attain the necessary abilities and demonstrate theircapabilities with enthusiasm, we are working to systematically develop
human resources with a broad perspective on personnel management.

Development of "leaders in railway business" who support the foundation of the Company's businessAs many railway operation skills can be developed only throughexperience, human resources cannot be developed in a short period oftime. Therefore, JR Central strives to offer ongoing employee educationthat is attentive to details through the combination of on-the-job training(OJT), group training, and self-development.

(1) On-the-job training (OJT)
We offer various types of on-the-job training (OJT) including, forexample, an "N-OJT" program for employees of younger generations toattain specialized knowledge and technical skills. Under this program,
employees skilled in practice take a fine-tuned approach in developing

younger employees by using a list that indicates the requirements
needed to be regarded as qualified in the workplace and a record ofeach individual's development plan, details of guidance, and results of theguidance.

(2) Group training
We put effort into offering various training programs, including job-specifictraining for leaders in railway business who will support the foundationof the Company's business, selective training programs to develop corepersonnel in the workplace, and stratified training sessions for employeesin specific positions. Job-specific training is conducted to improve theknowledge and technical capability of employees by providing them withpractical training that is suitable for their job functions and required skill
levels. At the General Education Center, we have put in place life-size railcar
simulators and test lines with equipment that is equivalent to that of reallines, as well as actively implement initiatives to deepen professional skills
and techniques, such as utilizing training materials with VR technology andstereoscopic projection systems. In FY2022, group training at the General
Education Center was used by a total of about 10,300 employees forapproximately 77,800 person-days, with 31.1 hours of training per employee
annually. For employees in managerial positions, we provide training on
methods to maximize the performance of the workplace and teams bybringing out the strengths and abilities of each staff member. For mid-level

employees, we also provide those in professional positions, for example,
with selective training programs, such as leadership training and forerunnertraining, to develop future leaders. For new employees, we provide new
employee training that runs for about two months after they enter theCompany. We recognize this training as an "important opportunity for new
employees to shift theirawareness from beinga student to being a
JR Central employee"
and implement acurriculum that
instills the disciplineand norms requiredof employees of
JR Central and theawareness that safety
General Education Centeris the top priority.

(3) Self-development
With regard to promoting self-development, we are also enhancing
various support systems and actively supporting the development of theskills of motivated employees. JR Central offers internal training programs(about 30 courses) to help employees systematically acquire specialized
knowledge and skills that are necessary in their daily work, and about
5,000 employees use this program every year. We also offer a license
incentive program that provides employees who obtain any of about 200

types of licenses designated as useful in work with an award equivalent
to the course fee and an external distance learning incentive program thatprovides employees who have completed an external distance learning
course, including e-learning, with an award equivalent to 50% of thecourse fee. In FY2022, a total of about 4,100 people were eligible andsupported at a cost of approximately 29 million yen.

Initiatives to find and develop diverse individuals
In order to continue to realize our management philosophy of"contributing to the development of Japan's main transportation artery andsocial infrastructure" at a higher level into the future, we need to reinforce
both the quality and quantity of our diverse human resources in order to

respond appropriately to changes in the business environment. JR Central
is developing human resources with a wide variety of knowledge andexperience as our management capital by providing motivated employeeswith opportunities to gain knowledge and experience.

(1) Development of global human resources
With the economic and social environment surrounding companies
becoming increasingly globalized and complicated, we have establishedan Overseas Study Program that is fully funded by the Company, withthe aim of fostering human resources who can take charge of its future
management and play a role on a global stage. So far, 138 employees
have studied abroad at various universities, including Harvard University.
Massachusetts Institute of Technology, and the University of Chicago, tolearn a broad array of knowledge and build a human network.
We have also established an Overseas Research Dispatch Program

to send employees to overseas companies and other organizations to
conduct research on advanced technologies, etc., and to utilize the resultsof the research in our business operations upon their return. So far, 77
employees have been dispatched.
These programs are application-based. We strategically develop
human resources who will contribute to the promotion of our businessand organizational change in the future by accepting applications frommotivated employees of a wide-range of job types.

(2) Career development through application-based training and programs
JR Central is working to enhance application-based training andprograms to help diverse human resources gain knowledge andexperience in accordance with their motivation, aiming to raise employee
engagement and further diversify our human resource portfolio. Employees
who are expected to play an active role as a senior management memberin the future are provided with education opportunities, including careerdevelopment training to teach them the necessary skills for leading
their workplace as a core employee, and opportunities to broaden theirperspectives and external human networks, such as participation in crossindustry events and seminars for women and dispatching employees toexternal programs for working professionals.
In addition, we have introduced an internal application-based careerdevelopment program in 2022 for the purpose of identifying motivatedand able employees and promoting them to the right positions and,taking this opportunity, stimulating the motivation for self-development
and the taking onof challenges of
employees.
We also permit
double employment(side job) depending
on its impact onwork and the typeof work at the other
employer.
Career development training
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

26

Highlight 3

Business Strategy

Generating "Economic Value"

Corporate Data

Creating "Social Value"

Initiatives for Human Resources to
Support JR Central's Sustainable Growth(3) Development of ICT human resources
We understand that developing human resources who can actively
use new technologies such as ICT and fostering an internal culture
to maximize the effective use of these technologies in business
operations, are urgently required for us to create new services out of
new ideas and promote the reform of business operations. JR Central
is strengthening the development of human resources who can create
new value using ICT by providing education to teach practical skills,
such as data analysis and system development. In addition, we are
implementing a curriculum that examines ICT technology trends and its
potential for use at JR Central through stratified training sessions, etc.,
as well as education to raise the ICT literacy of all employees, startingin FY2023, in an effort to foster an internal culture of ICT use.

We also put
considerable effort
into the use of ICT as
an educational tool.
For example, we arepromoting the useof web conferencing
tools and a learning
management system(LMS) to enable ondemand viewing of
lectures.

Non-consolidated number of employees
and percentage of female employees(Number of persons)

20,00018,14818,282

18,499（％）

18,72313.0

18,727

12.5

12.4

11.8
5,000

11.4
0

Group training that uses VR technology

11.2

2018

2019

sharpening their expertise, such as new business development, we are developing
experts by identifying employees with high aptitude and assigning them mainly topositions in the Business Promotion Division and group companies.

11.5

11.5

2020

2021

2022

(FY)

Number of days of annual paid leave taken
Percentage of annual paid leave taken

20

93.3

85

87.6

86.5

（％）

95.2

100
90

16

80

14

70

12

60

8

2. Creation of a Rewarding Workplace
to be able to demonstrate his or her ability to the fullest. We strive
to maximize organizational performance by creating a workplace thatis rewarding to each employee and thereby extracting the maximum
output from each individual.

Women's Empowerment Project
Company. Female employees are active in many fields, including as
Department General Managers and Section Managers.
In addition to our past efforts to enhance various programs to help
realize diverse and flexible work styles, we have formulated an action
plan based on Act on the Promotion of Female Participation and Career
Advancement in the Workplace, which took effect in April 2021, under
the leadership of the Women's Empowerment
Project launched in July 2020, which is under
the direct control of the General Manger of the
Personnel Department, in order to become acompany in which all employees, regardlessof gender, can balance work and childcare
and fully demonstrate their ability in rewarding
work more than ever.
Under the action plan, we have set numericaltargets, such as increasing the percentage of
Eruboshi certification
female hired as new graduate entrants to 25% based on the Act on theor more and increasing the number of female
Promotion of Female
managers by a factor of 1.5 or more (compared Participation and Career
to the end of FY2020), and we are promoting
Advancement in thecompany-wide efforts to achieve these targets
Workplace (2022)
by March 31, 2026, when the plan period ends.

16.9

16.7

18

6

30

4

20

2

10

0

0

2018

2019

2020

2021

● Strengthen public relations for recruitment so that women
Target:Raise the hiring rate of women in the recruitment of
can envision themselves working at a railway company.
new graduates to at least 25%.
● Strengthen the hiring of women in all job types.

managerial posts.

Target:Assign 1.5 times more women to managerial posts* (vs end of FY2020).

● Foster professional mindset among female leaders and support networking

Target:Assign 1.5 times more women to Assistant Manager andSupervisor levels or higher (vs end of FY2020).

● Hold seminars with successful women as lecturers in order to introduce role models.

* Sum of Line Managers and employees in positions higher than Manager (excluding Officers)

outside the Company by sending them on external training courses.

● Provide training for women aimed at fostering a professional mindset.

Target:Foster a workplace culture that empowers women ● Provide training for managers, etc.
We will foster a workplace
to demonstrate their capabilities.
culture and enhance
4 programs to facilitate
Target:Enhance programs that support employees balancing work and childcare. ● Enhance work arrangements, etc.
women to demonstrate
their capabilities.
Target:Raise the percentage of annual paid leave taken to at least 80%. ● Encourage employees to take annual paid leave.
We will encourage men's
5participation in childcare.

Target:Raise the percentage of male employees taking childcare
leave or leave aimed at childcare to at least 30%.

● Strengthen the dissemination of information to male employees

on childcare-related programs.

▶ Plan of action for general employers https://company.jr-central.co.jp/others/action_plan/

27

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

1.5

40

1

20

0.5

2018

2019

2020

2021

2022 (FY)

0

（％）

30

26.6

25

15.1
670

15.6
767

17.2

20.9

763

716

20
17.5
15

543

119

142

159

190

197

2018

2019

2020

2021

2022

10
5
(FY)

0

* Percentage of mid-career hires: 1.3% (FY2020), 2.2% (FY2021), and 5.3% (FY2022)

Percentage of childcare leave, etc. taken (female)
Percentage of childcare leave, etc. taken (male)

120

100

100

100

101

108
82

80

63

60

38

40
20
0

2022 (FY)

14

2018

21

2019

2020

2021

2022 (FY)* Calculated including both childcare leave and leave aimed at childcare* Calculated according to the revised Child Care and Family Care Leave Law(enforced in April 2023), starting in FY2021.

Initiatives for supporting childcare, etc.
PregnancyChildbirth

Initiatives beyond those called for by law, or voluntary initiatives

1 year old

2 years old

3 years old

Flexible operation of opening and closing times

Enrollment
in elementary
schoolEnd of May in End of September End of March End of March
1st gradein 3rd gradein 6th gradein 1st gradein elementary in elementary n elementary in elementary
schoolschoolschoolschoolCheck-up leave (unpaid)
Maternity leave (unpaid)
Accumulated leave (paid)Childbirth leave (paid)* Entitled when the leave falls under check-up leave or maternity leave, when an employee intends to be present at a childbirth,and for childcare by an employee with a child under one year old

Working restrictions on pregnant womenChildbirth leave (unpaid)Childcare leave at the time of childbirth (unpaid)Childcare leave, etc.

Childcare leave (elementary school)

Childcare leave (paid)Childcare leave (elementary school)
Reduction of scheduled working hours (childcare shorter hours leave) (unpaid)・Reduction of standard working hours under flexible work arrangements
Nursing leave (unpaid)
Exemption from overtime work
Restriction on late-night work
Restrictions on overtime work
Late-night work relaxation system
Shorter day work (shorter day leave) (unpaid)

association

We will increase the

60

1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0

Child rearing leave (unpaid)● Increase workplaces to which women are assigned in
We will increase workplaces toTarget:Increase workplaces to which women are assigned.
which women are assigned, andview of the provision of facilities for women.
2 increase places where employees● Increases places where employees with restriction on working
with restrictions in working styles Target:Increase places where employees with restriction
on working styles can play an active role.
styles due to childcare, etc. can play an active role.
can play an active role.

3 number of women in

2.5

Number of females hired
Number of males hired
Percentage of female hired(Number of persons)Support system for maintaining balance between childcare, nursing care, and work

Wage Welfare

We will increase the hiring
rate of women.

3

2

100

* Calculated excluding non-statutory annual paid leave, based on the Act on the Promotionof Female Participation and Career Advancement in the Workplace, starting in FY2022.

Positive action plan for promoting women's empowerment
1

122

3.5

136

130

Percentage of childcare
leave, etc. taken

40

17.7

117

4

Number of employees hired by genderand percentage of female hired

（％）

50

16.5

107

3.6

3.4

*Including section chiefs of non-field operations, assistant chiefs of field operations, andchief nurses (includes employees on leave, but excludes employees on secondment).

Number of days and percentage ofannual paid leave taken
18

3.0

3.3

（%）

3.8

80

0

11.0

10

We are vigorously promoting women's empowerment as part of theinitiative to create a workplace that is rewarding and helps employees
fully demonstrate their ability. In accordance with the provisions of the
Act on Securing, Etc. of Equal Opportunity and Treatment between
Men and Women in Employment (Equal Employment Opportunity
Act) and other relevant laws, we handle personnel matters, including
recruitment and assignments, without distinction between men andwomen. Currently, female employees are engaged in a wide range of
duties, including administrative work, station front desk work, serving
as conductors and drivers of Shinkansen and conventional lines, andhospital nursing work. Due to the characteristics of the work involved,
the railway business requires so-called late-night work (work between
10 p.m. and 5 a.m.). However, the Labor Standards Act at the time of
the Company's establishment prohibited late-night work by womenin principle, except for some limited job types. Due to this situation,
the ratio of female employees as of the end of FY1996 was only 1.3%.
Subsequently, in response to the revision of the Labor Standards Act in
1997, we have actively employed female employees. As of the end of
FY2022, the number of female employees was 2,325 (approximately
12.4% of all employees), reflecting a significant increase. A female
employee was appointed as a Corporate Officer in 2021 and anotherfemale was appointed as a Director in 2022 for the first time in the

120

12.0

(Number of days)

JR Central, as a company that provides highly public and open
services, has a mission to continue to provide services to please
diverse customers. In order to continue to satisfy diverse customer
needs, each of our employees who has a diverse background needs

160

100

10,000

Number of female managers● Percentage of female managers(Number of persons)140

15,000(4) Development of business experts
JR Central has a job rotation program to systematically develop humanresources on the premise of long-term employment. On the other hand, in the
job areas in which employees are expected to produce high-quality output by

Number of female managers andpercentage of female managers

Total number of employees (non-consolidated)
Percentage of female employeesChild dependency allowance (up to 22 years old)
Provision of at least 30% of the year-end
bonus even during childcare leave

The Company bears the social insurance premium deducted fromthe year-end bonus in line with the period of childbirth/childcare leave

Home help usage subsidy: Up to 5,000 yen/day (up to 20 days per year) (no age limit)
Childcare support subsidy: Up to 4,000 yen/day (up to 60 days per year)
Preschool center usage subsidy: 5,000 yen/month

In order for all employees, regardless of gender, to balance work andchildcare/nursing care, and be motivated to work with enthusiasm in active roles
over many years, we have continued to make further efforts to enhance various
programs, and many are at a level that exceeds the level required by law.
For example, at JR Central, employees are entitled to longer maternity,childcare, and nursing care leave than the statutory periods. We are currently
taking specific measures* to maintain and increase the percentage of employees
who take childcare leave by setting targets." In FY2022, the percentage of
employees who took childcare leave was 108% for female employees and 82%
for male employees.
We use flexible work arrangements, including flex time for office workers
and certain field office employees and reduced work days, which allows field
office employees who provide care to a child in the sixth grade of elementary
school or younger to take multiple unpaid leave days each month, all with aneye to helping employees achieve a good balance between work and childcare.
We also have a wide range of employee benefits, such as mediating the use ofcompany-led childcare centers and offering childcare support subsidies whenemployees use babysitters, etc., which are used by many employees.
In addition to these programs, we have a system designed to rehire former
employees who resigned for childcare or nursing care reasons or due to othersimilar circumstances, as long as a certain set of conditions is met. We also
have a system that allows an employee whose work location is limited to betransferred, upon request, to an area outside the current
area of work. These measures are all part of our efforts tocreate a better work environment where employees canreach their full potential at different life stages.
※Under the Plan of Action for General Employers (from April 2023) based on
the Act on Advancement of Measures to Support Raising Next-Generation
Children, all employees, both male and female, are expected to take childcare
leave or leave aimed at childcare 100% of the time during the period whensuch leave is available. JR Central has been certified four times by the Ministerof Health, Labour and Welfare as a child-care supportive institution ("Kurumin"certification), meeting certain requirements set forth in the Act on Advancementof Measures to Support Raising Next-Generation Children.

"Kurumin"certification

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

28

Highlight 3

Business Strategy

management. JR Central's shares are purchased with contributions from
employees and incentive payments from the Company.

Employment of persons with disabilities
JR Central is actively promoting the employment of persons withdisabilities from the perspective of utilizing diverse human resources andfulfilling its corporate social responsibility. We place the right people in theright positions in a wide range of departments, including the administrativeand operational departments, while giving consideration to the degree ofindividual disability and other factors.
In October 2006, the Company established a special subsidiary, JR
Tokai Well Co., Ltd., based on the Act on Employment Promotion etc. of
Persons with Disabilities. This special subsidiary mainly engages in printing
and envelope-sealing operations for the JR Central Group. More recently,
in October 2021, the company began offering massage services as part ofits initiative to provide benefits and health management to employees, andin January 2023, it expanded its operations by bolstering its structure andoffering expanded hours of operation and appointment slots.
As a result of these efforts, the employment rate of persons with disabilities asof June 1, 2023, was 2.70%, which is higher than the statutory employment rate.
In accordance with the revised Act on Employment Promotion, etc.
of Persons with Disabilities, we will adhere to our non-discrimination
policy in recruitment and hiring as well as continuing to improve thework environment in an appropriate manner, while taking into accountrestrictions due to disabilities so that individuals with disabilities can makethe most of their skills even after they are hired.

Initiatives to support career development
At JR Central, based on the belief that active communication in theworkplace leads to improved productivity, interviews are held every six
months where employees are given feedback from their managers and theworkplace targets are shared. While maintaining the principle of employee

development through job rotation, we conduct a survey every year on
desired jobs and career paths of individual employees to support theircareer development. The personnel department also holds interviews with
employees.

"One STEP" activities to improve employee skills and create a lively workplace
We promote "One STEP" activities in which multiple employees work
together as a team to discuss various issues in the workplace with a senseof ownership, and then resolve or improve the issues through their own
creativity and originality. The name of this program "One STEP* reflects theidea that "one step made together by ten persons is better than ten steps

made by just one person." By implementing activities on a wide rangeof themes, such as service improvement, safety enhancement, and cost
reduction, we aim to improve the skills of employees, create a rewarding
and lively workplace, boost the power of the workplace, and develop theCompany.

3. Health and Productivity Management
Purposes and organization"Health Promotion Policy"～For Working in a Lively and Continuous Way～
1 The Company shall establish frameworks for employees to work in a lively way.

medical institute (Nagoya Central Hospital), and the Occupational Health
Department (Health Care Center).

Purposes (Targets and actions)Management Philosophy "Contribute to the developmentof Japan's main transportation artery and social infrastructure"
Management target thatshould be achieved by healthand productivity management

29

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

In addition to stress checks for all employees (with more check items
than those required by law), we carry out stress checks with our own
additional indicators for employees who have newly joined the Company,
have moved to another department, or have been promoted. Furthermore,annual meetings are held for health promotion staff to share health issues
faced by our employees and our promotion measures.

We are taking various voluntary and continuous measures both formental health and against lifestyle diseases, based on employees' healthstatus and work environments, with assistance from internal medical
professionals, with the safety and health organization at each workplaceplaying a central role. In doing so, we are effectively utilizing the group
analysis results of health checks and stress checks.

Smoking cessation support

Habituation of exercise support

We provide support including having internal medical professionals
give health lectures, offering in-person instruction during health checks orworkplace inspections, accepting telephone and e-mail consultations, andconsolidating smoking rooms. We are also encouraging staff to utilize the
Smoking Cessation Support Program offered by JR-KENPO.

We hold the following events to improve awareness of health promotion
and support the habituation of exercise.

Expected effectSpecific actions

Decrease in employees with working restrictions,on leave, or resigning

Unit
Average age

2019

2020

2021

2022

37.6

37.4

37.1

36.9

36.9

All

36.9

36.5

36.3

36.4

Male

17.7

36.7

Age

Female

Year

41.1%

Smoking Reduce the number of smokers by 25% from therate
FY2018 level(FY2018: 25.8%⇒ Target: 19.3%)

21.1%

31.7
17.4

9.7

16.8

31.8
17

10.1

10.2

16.5

16.3

32.1
16.8

16.7

10.4

10.6

16

16.0

34

36

35

33

31

Union membership rate
(percentage of all employees covered by collective bargaining agreements)

％

-

-

94.6

94.7

94.7

Employment rate of persons with disabilities

％

2.26

2.51

2.75

2.74

2.68

1.1

1.1

0.9

1.1

1.6

1.4

1.4

1.2

1.4

1.9

Male
Turnover rate

Female

％

All

3.4

3.6

3.5

R2

R3

R4

100％

100％

100％

60.0%

61.8%

61.9％

52.3％

53.2%

53.1％

Percentage of employees receiving the check

100％

100％

100％

Comprehensive health risk (national average: 100)

86

87

86

Male

71.2％

75.7％

74.6％

Female

68.8％

75.2％

69.9％

Employees subject to specific healthguidance * Among those aged 40 or older
Employees participating in specific healthguidance * Participation rate of the first
support program

22.4%

20.2％

20.3％

83.1％

80.3％

80.3％

45.1%

40.5％

40.1％

0.5%

0.6%

0.6％

67.8%

72.0%

77.5%

Employees maintaining normal weight* Aged 40 or older

Percentage of employees with any problem observed

Employees at high risk
Percentage of those receiving detailed(continuing to receive
examination
treatment)
Absenteeism* Method: Percentage of employees on leave due to accident or
sickness* Number: All employees* Response rate: 100%
Participation rate in "Minna de Arukatsu" * A walking event
hosted by JR- KENPO
Employee health literacy

3.7

Results

Item

Employees at high risk
(continuing to receive
health guidance)

3.5

(FY)

32.3

Hours

Percentage receiving
physical examinations

Exercise
Increase the percentage of employees who walk an
average of 8,000 steps or more per day to 50% or more
habit

31.2

Average number of training hours per year

Health management over
Daily health management
the medium to long term
[Conducting regular health checkups][Setting numerical health targets][Workplace support[Implementing
by occupational physicians, etc.]
health promotion measures]

Current level (FY2022)

Outstanding Organizations for our various initiatives
focusing on health and productivity management.
We will continue to make efforts to promote themaintenance and enhancement of physical andmental health of all of our employees so that they can
exercise their abilities to the fullest.

2018

FemaleAverage years of service

Stress check

Targets (until FY2023)

For the walking event held by the JR Group Health Insurance Association, weare making company-wide efforts by establishing an original incentive system.

Personnel-related data

Encourage employees to change their behavior
and prevent them from getting sickand mental illness, and set numerical targets to be achieved by FY2023
to encourage employees to change their behavior.

● Walking event "Minna de Arukatsu"

Selected as "White 500" under the 2023 Certified Health & Productivity Management Outstanding Organizations
The Ministry of Economy, Trade and Industry (METI) awards
corporations, including large corporations and small and medium-sizedenterprises, that practice particularly excellent health and productivity
management, based on their efforts to address local health issues and thehealth promotion initiatives promoted by Nippon Kenko Kaigi. Selected as"White 500" under the 2023 Certified Health & Productivity Management

Employees are able to exercise their full potential

Numerical targets
With the aim of reducing the number of employees who are unable
to exercise their full potential due to health reasons, we are working
to improve health-related indicators that are considered to have a highcorrelation with physical and mental illness based on the findings ofoccupational physicians. This is based on the concept of preventing
disease by taking action at the stage before people are exposed tohealth risks, rather than providing support after they become or are likely
to become at high risk of illness.
We focus on exercise habits and smoking rate among health-related
indicators that are considered to have a high correlation with physicalWorkplace vitality improvement projects

Percentage of employees receiving regular health checkups

3 We verify the effects of those efforts and further promote health based

The organization is headed by the officer in charge of personnel
affairs, health and productivity management is being enhanced throughcooperation among the Personnel Department, the Company-managed

Understanding the health status and sharing health issues and enhancement measures

All

2 Employees should promote their own health. The Company shall support this.

on objective data that help us understand the status of workplaces andemployees.

MeasuresMale

We are actively enhancing health and productivity management in order to maintain and promote the health of our employees, which is the foundationfor our continuing to fulfill our social mission.

In order to achieve our mission to "Contribute to the development ofJapan's main transportation artery and social infrastructure" shown in ourmanagement philosophy, it is essential that each and every employee
demonstrate his/her full potential. In order to maintain and promote
employee mental and physical health as its basis, we established the Health
Promotion Policy as our overall policy for health promotion measures in
April 2018 for the Company to actively support the maintenance andpromotion of employees' health.

Corporate Data

Creating "Social Value"

Initiatives for Human Resources to
Support JR Central's Sustainable Growth

JR Central Employee Stock Ownership Program
We have established the JR Central Employee Stock Ownership
Program for all employees in principle, with the aim of helping employees
accumulate assets and enhancing their sense of participation in

Generating "Economic Value"・Mental health seminar (offered in various training programs, etc.)
・Lectures on health by occupational physicians or public health nurses (held at workplaces)
・Appointing staff in charge of health promotion at each workplace and holding training sessions for them

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

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