Approach to Sustainability
The JAL Group faces a changing landscape where social challenges, such as weakened interpersonal relationships and lack of mutual understanding in addition to environmental issues and population of decline.
To realize a joyful connections between people that transcend regions, countries and generations spread throughout society, the JAL Group work on creating social value as the core of our business and the driving force behind growth.
Identification of New Materiality
The JAL Group defines materiality as “events (risks and opportunities) that have the potential to significantly impact corporate value in light of social issues and represent key issues that should be addressed to achieve sustainable enhancement of corporate value.” In identifying materiality, we begin with a comprehensive understanding of social issues, analyze risks and opportunities from the perspective of double materiality,* incorporate the opinions and expectations of external stakeholders, and obtain approval from the Board of Directors. In fiscal 2025, in conjunction with the formulation of the JAL Group Management Vision 2035, we revised the eight material issues established in 2023 into seven new material issues. Going forward, we will continue to promote understanding of materiality throughout the Group while reviewing the materiality itself on an annual basis.
- Double materiality is a concept that encompasses both financial materiality the significance of changes in the global environment and society from the perspective of their impact on a company’s financial performance and impact materiality the significance of a company’s activities from the perspective of their impact on the global environment and society.
Process of Identifying Materiality
The events (risks and opportunities) identified through the materiality identification process are mapped according to the positive and negative impacts of each issue caused by the JAL Group on the horizontal axis and the significance and level of stakeholder interest in each issue from the perspective of society and stakeholders on the vertical axis. Those falling within the upper-right quadrant are identified as materiality. The positive and negative economic impacts of each issue on the JAL Group will be further assessed from the perspectives of likelihood and magnitude of impact.
Material Issues Addressed by the JAL Group
Risks
Opportunities
Environmental and social impacts on our business and the impact of our business on the environment and society.
*Although international and domestic airlines account for about 2-3% of global CO2 emissions and emit large amounts of CO2 on their daily flights, the JAL Group contributes to advancing climate change transformation by actively promoting public-private partnerships in the production of SAFs (Sustainable Aviation Fuels) and other activities. Our external environmental impact is calculated to be equivalent to our FY25 direct aircraft CO2 emissions of 9.13 million tons x $190(*1) per ton based on the U.S. Environmental Protection Agency (EPA) estimate, which equals $1,735 million. We aim to reduce this environmental impact to net zero by 2050.
(*1: According to the U.S. Environmental Protection Agency's calculation, the social cost of carbon emissions is $190/ton-CO2. Source: https://www.epa.gov/system/files/documents/2023-12/epa_scghg_2023_report_final.pdf)
*While taking into consideration not to cause overtourism due to a rapid increase in the number of travelers, the JAL Group will revitalize the regions where it interacts with through “relationships and societal connections” created by transporting people and goods, thereby contributing to the revitalization of the local economy and society. Our external social impact is calculated to be JPY 494.9 billion, equivalent to our total amount of relationships and social connections of 10.22 million person-trips (*3) x JPY 48,424 (*2) of per capita travel expenditure of Japanese domestic travelers. To enhance customer well-being through the creation of relationships and connections through mobility, we plan to increase the total amount of relationships and social connections to 1.3 times the FY2025 level (FY2030 target).
(*2: According to the report of the Japan Tourism Agency, the per capita travel expenditure per trip of Japanese domestic travelers is JPY 48,424. Source: https://www.mlit.go.jp/kankocho/content/001998342.pdf)
(*3: Total amount of relationships and social connections =: Number of JAL Group passengers who traveled to the same location twice or more in a year × level of community involvement (Average number of trips to the same location))