JAL Group's Approach to Sustainability

With accelerating globalization and an unprecedented increase in interest in ESG/SDGs, the world is now entering an era of change in which economic activities themselves are influenced by the external environment. The JAL Group has been working to solve social issues and achieve the SDGs through its business activities, and in the Rolling Plan 2022, a revision of the Medium-Term Management Plan, we have positioned ESG strategies as our medium- to long-term growth strategy. Going forward, we will make major changes to our product services and business model from an ESG perspective.
The JAL Group's ESG strategy is to "solve social issues and create sustainable human, commercial, and logistics flows. We will leverage our strengths as an airline company to create demand on a sustainable basis, with our raison d'être to realize a heartwarming society and future in which many people and various goods can move freely.
To achieve this, we will focus on three key objectives: to protect the global environment and thoroughly pursue safety and security, to sustainably fulfill our mission as a social infrastructure, and to deliver affluent lives and lifestyles to everyone.

The JAL Group has identified 22 issues in 4 areas as important issues to be addressed through its business activities.

[Process of identifying important issues]
In the past, JAL Group’s Basic CSR Policy has promoted initiatives based on its three Materiality themes of "Co-exist with the Earth", "Contribute to Communities", and "Nurturing Future Generation." With the aim to contribute to the 17 goals/169 targets of the SDGs in each business area, all divisions have sorted current measures and created new plans. Approximately 420 initiatives submitted by JAL divisions were divided into categories based on discussions and recommendations of the Board of Directors, taking into account of the degree of impact from business activities and their importance to management. The four key areas of action were established, that is, the Environment, People, Regions and Governance, and 22 issues were identified in each area. Based on the opinions of outside experts, division has set medium- to long-term targets and content to be addressed in each of the 4 areas/22 issues, which are then incorporated into the measures of each division.

In light of the environmental change due to COVID-19 and the business environment surrounding JAL, we set the ESG strategies at the core of our management strategy in the Medium Term Management Plan Rolling Plan 2022.

Trends in the macro environment

Changes in the business environment

With the launch of JAL Group Medium-Term Management Plan 2021-2025, we identified priority issues among the 22 issues in 4 areas.

Based on various standards and industry targets such as the industry standard published by Sustainability Accounting Standards Board, trends in the international community and expectations of our stakeholders, we have decided the degree of impact through our business activities and the importance to management, 9 priority issues among the 4 areas/22 issues were selected. (Figure 1)

(Figure 1) Identification of priority issues

With this identification, KPIs for each of the 9 issues were set as priority issues during the Medium-Term Management Plan period and management targets for FY2025, after close discussions among management, taking into consideration the opinions of outside experts. (Figure 2)

(Figure 2) Key ESG Issues and KPIs

Among these, 4 priority social issues to focus on in our business are designated as management targets in JAL Group Medium-Term Management Plan 2021-2025. (Figure 3)
The reasons for selecting the most important issues are described in "Rationale of Identification for Materiality" below.

(Figure 3) Management Targets under Medium-term Management Plan

*1 Risks and opportunities related to climate change