Addressing Climate Change

The JAL Group has established the JAL Group Environmental Policy and is promoting various initiatives in order to fulfill our responsibility to pass on the precious earth to the next generation.

While various environmental issues are currently emerging on the earth, the JAL Group recognizes that addressing climate change is a particularly important issue for the sustainability of society. As part of its responsibility as an air transport operator, at the shareholders' meeting in June 2020, the commitment to achieve Net Zero CO₂ Emissions by 2050 was declared, to steadily promote various initiatives including the reduction of CO₂ emissions. In February 2021, we endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and we will continue to regularly disclose information in TCFD and its successors, the ISSB^*1 standard and the SSBJ^*2 standard. In addition, we will continue to closely monitor developments in the SBT^*3 initiative and work toward achieving the SBT initiative's goal of Net Zero CO₂ emissions by 2050. At present, our disclosures do not comply with all provisions of the SSBJ standard. 

At present, our disclosures do not comply with all provisions of the SSBJ standards

In the JAL Group Management Vision 2035, announced in March 2026, we have addressed social issues, including the global environment, and defined the future society we envision as one characterized by the 'Social and Personal Well-being and environmental and social sustainability. In addressing climate change, in order to achieve medium- to long-term growth through reducing risks and seizing opportunities, and to enhance sustainable corporate value, we will not only make sincere efforts to reduce CO₂ in our daily business activities, but will also work together with our stakeholders to promote technological innovations to improve fuel efficiency and we are also actively working to promote the development of production of Sustainable Aviation Fuel (SAF) and other products through collaboration with stakeholders. We also promote decarbonization outside the value chain through the carbon credits and new technologies for removal of CO₂.

The JAL Group's Board of Directors exercises a strong oversight function through regular reports (two times in FY2025) on the Group's enforcement initiatives related to climate change and biodiversity.

The Board of Directors also exercises a strong management oversight function with a high degree of transparency through the selection^*2 of candidates for the Board of Directors, the appointment of Executive Officers, the determination of remuneration^*3, and other important decisions. The Sustainability Promotion Council, chaired by the President, formulates basic policies, sets and manages the progress of key targets, and deliberates and decides on policies to address issues. The Sustainability Promotion Committee, chaired by Executive Officer in charge of Sustainability Promotion Department, deliberates on issues identified through the Environmental Management System (EMS) and issues confirmed through GX-Related Officers Committee^*1 (held 9 times in FY2025), and reports the results to the Sustainability Promotion Committee.

In addition, JAL Group Management Vision 2035 includes addressing climate change in its management strategy and defines 7 key sustainability issues (materiality) to solve social issues through our business. Based on our strong will to achieve sustainable business operations and increase corporate value through steady efforts to address these issues, we reflect external ESG assessments and CO₂ emission reduction targets as indicators in officer remuneration.

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 examined society in 2030 based on two scenarios with a global average temperature rise of "4°C" and “2°C" by the end of the century. Taking the opportunity of the formulation of the JAL Group Management Vision 2035 in March 2026, we examined society in 2040 based on two scenarios (SSP5-8.5^*6, SSP1-1.^*7) of the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) with a global average temperature rise of "below 4°C" and "below 1.5°C" by the end of the century. 

Based on the 1.5°C scenario, the JAL Group set a target of Net Zero CO₂ emissions in 2050 at the shareholders’s meeting in June 2020. Subsequently, a specific roadmap was created in consideration of risks and opportunities based on the IEA SDS^*8 scenario and other factors, which was reflected in the "JAL Group Medium Term Management Plan 2021-2025" in 2021 and thereafter as appropriate. This roadmap outlines a strategy to achieve Net Zero emissions by offsetting the approximately 10% of residual emissions that will remain in 2050—even after maximizing reductions through the introduction of fuel-efficient aircraft, operational improvements, and SAF—by utilizing new technologies for removal of CO₂.

With regard to the reduction of CO₂ emitted by JAL Group's aircraft, we are studying scenarios for CO₂ reduction by 2050, referring to the latest study materials at ICAO, IATA and the latest scenarios such as "WAYPOINT 2050"^*9 of ATAG^*10, and discussing future issues and measures to take. In preparing the scenarios, we calculated the total CO₂ emissions by 2050 by setting the growth of RTK (Revenue Ton Kilometer) based on total demand for both international and domestic flights, and reflected the effects of each initiative.

Climate change will have a negative impact on the air transport business, which is based on the premise of operating in a "safe and secure society," and as a result, it may pose an enormous risk to the business continuity.
Especially in recent years, there have been many examples of physical risks manifested by climate change.
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 affect its business in accordance with the TCFD classification of risks and opportunities related to climate change and lists them in the table below. The classifications of "timing" and "impact of occurrence" are as specified below.
The following was reviewed at the Board of Directors meeting on August 3rd, 2026.

The JAL Group defines risk 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 particularly important are positioned as priority risks, and the Group Risk Management Council, chaired by the President, confirms the status of risk management and deliberates and decides on countermeasures.
With regard to environmental issues such as climate change and biodiversity, which are priority issues in our management strategy, we are implementing risk management through the PDCA cycle based on the Environmental Management System (EMS), while taking into account relevant laws, regulations, and policy trends in the international community.
Risks related to climate change, both transition risks and physical risks, are managed in the risk management system of the entire JAL Group.

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

In May 2021, the JAL Group became the first Japanese airline to set a specific target for FY2030 (10% reduction in total emissions compared to FY2019) as a milestone toward achieving Net Zero CO₂ emissions by 2050. In addition, we have worked toward the management goal of keeping net CO₂ emissions from aircraft below the FY2019 level (9.21 million tons) by FY2025. We have achieved this FY2025 target through the introduction of fuel-efficient aircraft, operational improvements, and the utilization of SAF and carbon credits. At the same time, we also achieved our target of replacing 1% of total fuel uplift (approximately 40,000 kiloliters) with SAF in FY2025.

To achieve our FY2030 management goal of a 10% reduction compared to FY2019 (8.28 million tons), the JAL Group has newly set a target of reducing 5% of CO₂ emissions from fuel combustion in FY2030 through SAF. We will also continue to work toward our existing target of replacing 10% of total fuel with SAF. While making maximum efforts to reduce CO₂ emissions within the value chain through initiatives such as updating to fuel-efficient aircraft, operational improvements, and the use of SAF, we will also continue to work on reducing CO₂ emissions outside the value chain, such as through CORSIA-eligible credits.

In addition, we have set targets for indirect emissions for FY2025 and FY2030, and we are steadily making reductions. We achieved our FY2025 target of less than 54,000 tons. We will continue to take on the challenge of achieving our FY2030 targets for both direct emissions other than from aircraft and indirect emissions. Regarding other indirect emissions (Scope 3), since they are smaller than direct emissions from aircraft and more than half are derived from aviation fuel, we are prioritizing the reduction of direct emissions from aircraft.

The JAL Group aims to reduce energy consumption through various initiatives aimed at reducing energy related CO₂ emissions from aviation.

In January 2024, the Airbus A350-1000 entered into service on international routes. On international routes, JAL will introduce an additional 20 Airbus A350-900 aircraft, currently serving as the backbone of its domestic routes, and an additional 10 Boeing 787-9 aircraft, starting in 2028. On domestic routes, JAL will introduce 21 Boeing 737-8 aircraft starting from 2026 to replace its current Boeing 737-800 fleet, and 11 Airbus A321neo aircraft starting from 2028 to replace its current the Boeing 767 fleet. These aircraft are fuel-efficient and produce less noise, and can reduce the amount of CO₂ emissions by 15% to 25% compared with conventional aircraft.
The JAL Group will work to reduce CO₂ emissions by steadily continuing to upgrade to fuel-efficient aircraft, utilizing funds raised in public equity offering in 2020 and ESG financing from March 2022 onward.

Based on the fundamental premise of aviation safety's adherence to the principles, a variety of measures to reduce CO₂ emissions are devised, including eco-flight initiatives by devising the timing and choice of handling during flight operations, reducing weight of aircraft, and improving fuel efficiency through regular engine internal cleaning.
In addition, by promoting JAL Green Operations, a cross-organizational activity, which monitor the status of each initiative and share the progress within the company, thereby promoting the PDCA cycle to reduce CO₂ emissions.

The JAL Group has set a goal of replacing 1% of fuel on board loads with SAF by FY2025 and 10% or more by FY2030. Aiming to be a leading airline in the use of SAF, the Group is working on a variety of projects, including investment to SAF manufacturer use of SAF produced in Japan for the first time in scheduled flights, and collaboration with partner companies to build supply chains for Japan domestic SAF.

In addition to responding to the ICAO CORSIA, the Group also offers JAL Carbon Offset, in cooperation with CHOOOSE AS, as a unique initiative that allows passengers to offset their own CO₂ emissions on their flights.

Disclosure regarding Climate Change of the JAL Group was selected as a good disclosure example in the TCFD Annual Report (see p. 49)