JAL Group's 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 transcened 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.

The movement of people and goods creates societal connections and this leads to enhance well-being and regional revitalizations, thereby addressing diverse social issues and creating social value.
Guided by our value creation story—"creating social and economic value and enhancing corporate value by fostering relationships and connections through air transportation"—the JAL Group strives to evolve to create relationships and connections beyond our commitment to providing safety and peace of mind for the future skies.

In order to build relationships and connections, the goal is to increase the “total amount of relationships and connections” by 1.3 times vs fiscal year 2025 by fiscal year 2030 by improving the “number of people involved” and the “level of involvement with the community”. Specifically, the goal is to increase the number of people by expanding accessible tours and tourism that allow everyone to move freely, and to increase the level of involvement by creating a system to create communities and places where people belong, thereby creating social value such as regional revitalization by increasing relationships and connections and expanding human and commercial flows as well as economic value towards enhancement of the JAL Group's corporate value.

Starting from a comprehensive understanding of social issues, the JAL Group analyzes risks and opportunities from a sustainability perspective, and continuously revises its materiality based on opinions and expectations of external stakeholders.

We consider our material issues as an opportunity not only to mitigate risks in our corporate and operational activities, but also to accelerate our sustainable growth.
In 2019, the JAL Group defined four areas and 22 issues to be addressed throughout its business. We review our material issues annually, and in 2023, we reviewed them and defined eight new material issues based on changes in the internal and external environment.
The eight material issues are based on the concept of double materiality advocated by international guidelines. We consider not only the impact of society and the environment on our company, but also the impact of our corporate and business activities to the society and the environment.
The new eight material issues were reviewed and signed off at the Board of Directors' meeting on August 1st 2023.

Based on various domestic and international standards, including the Sustainability Accounting Standards Board (SASB) industry-specific accounting standards, industry targets, trends in the international community, and expectations from stakeholders, we identified material issues by determining the degree of impact (risks and opportunities) of our business on society, the degree of impact on our own company, its importance to management, and its importance to external stakeholders. In addition, we discuss our materiality among the management based on the opinions of related ministries and agencies, academics and experts, NGOs, and other outside experts.
Our initiatives and KPIs, which address the JAL Group’s materiality, are integral to reaching the management goals outlined in the JAL Group Vision 2035. (Figure 1)

(Figure 1) Rationale of identification of material issues

* 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 and other activities. Our external environmental impact is calculated to be equivalent to our total CO₂ emissions of 9.09 million tons x $51(*1) of carbon, which equals to $463.59 million. We aim to reduce this impact to net zero by 2050.
(*1: According to the U.S. government's calculation, the social cost of carbon emissions is $51/ton-CO₂. Source: https://www.nature.com/articles/s41586-022-05224-9)
* 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. The JAL Group will contribute to the revitalization of local economies and societies through the “relationships and societal connections” created by transporting people and goods. Our external social impact is calculated to be equivalent to our total amount of relationships and connections of 4.4 million x JPY 43,995(*2) of per capita consumption of Japanese domestic travelers, which equals to $2200.00 million. We aim to increase this impact to 1.5 times vs 2023 by fiscal 2030.
(*2: According to the report of Japan Tourism Agency, the per capita consumption of Japanese domestic travelers is JPY43,995- Source: https://www.mlit.go.jp/kankocho/content/001724778.pdf)