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.
In the Medium Term Management Plan-Rolling Plan 2023 announced in May 2023, JAL aims to realize JAL Vision 2030 and has positioned ESG strategy as the topmost strategy to realize value creation and growth. 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.

*1 ISSB (International Sustainability Standards Board)
An organization and initiative established to ensure the disclosure of corporate ESG (Environmental, Social, and Governance) information, not limited to climate change, under uniform international standards.
*2 SSBJ (Sustainability Standards Board of Japan)
An organization and standards established to incorporate ISSB standards and create Japan's own standards.
*3 SBT (Science Based Target)
A Greenhouse gas emission reduction targets set 5 to 15 years, consistent with the levels required by the Paris Agreement (which aims to limit global temperature increase to well below 2°C above pre-industrial levels and 1.5°C below pre-industrial levels)set by companies.

The JAL Group's Board of Directors exercises a strong oversight function through regular reports (three times in FY2024) 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^*4 of candidates for the Board of Directors, the appointment of Executive Officers, the determination of remuneration^*5, 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 ESG Promotion Department, deliberates on issues identified through the Environmental Management System (EMS) and issues confirmed through GX-Related Officers Committee (held seven times in FY2024), and reports the results to the Sustainability Promotion Committee.
In addition, the Medium Term Management Plan includes addressing climate change in its management strategy and defines eight 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.

*GX Related Officers Committee FY2024 members: General Affairs Division, Corporate Planning Division, Procurement Division, Route Business Division, Solution Sales Division, Cargo and Mail Division, Business Administration Division (secretariat) ESG Promotion Department

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 predicted the society in 2030 based on two scenarios (RCP8.5^*6, RCP2.6^*7) of the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC), that is, keeping global warming to below 4℃ and below 2℃ by the end of the century.

*6 RCP8.5 scenario: High level reference scenario in the IPCC Fifth Assessment Report (scenario corresponding to the maximum greenhouse gas emissions in 2100)
*7 RCP2.6 scenario: Low stabilization scenario in the IPCC Fifth Assessment Report (lowest emissions scenario developed with the goal of limiting future temperature increase to below 2°C)

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 updated in 2025.
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.

*8 IEA SDS Scenario: Sustainable Development Scenario, a roadmap to fully achieve the Sustainable Development Goals set by the IEA (International Energy Agency).
*9 Reference:Waypoint 2050Open link in a new window
*10 ATAG (Air Transport Action Group): A global coalition that promotes sustainability in the airline industry.

In order to strengthen the promotion system to achieve Net Zero CO₂ emissions, GX-Related Officers Committee was established under the Sustainability Promotion Committee to strengthen the promotion system for achieving Net Zero CO₂ emissions. Some agenda items are brought up to the Board of Directors for decision on GX(Green Transformation) related measures.
In particular, we recognize that we should focus on the use of the SAF*11. We have established a dedicated domestic SAF promotion task force within the Procurement Division. The task force will be actively involved in the production of domestic SAF and will accelerate efforts to promote the use of SAF.

The Green Transformation strategy is being promoted through a variety of methods, including the use of internal carbon pricing to encourage continued investment in decarbonization.

*11 SAF (Sustainable Aviation Fuel) : It is said to reduce CO₂ emissions by an average of 80% compared to conventional jet fuel throughout its life cycle, from production and procurement of feedstocks to manufacturing, transportation, and combustion.

In order to achieve a stable supply of domestic SAF, we are promoting initiatives to contribute to the procurement of used cooking oil and wood-derived based bioethanol, which are feedstocks for SAF. In June 2023, we launched "Let's Fly with Used Cooking Oil" project to collect household used cooking oil at retail stores and municipal facilities across Japan,with collection activities taking place at 64 locations nationwide (as of May 2025). In March 2025, we also participated in the "MORISORA Project," an initiative aimed at producing bioethanol derived from domestic wood that can be used for SAF. We will continue our efforts to realize a decarbonized society, regional revitalization, and a sustainable future through resource recycling.

In April 2024, we launched the "JAL Corporate SAF Program“, a new initiative to provide certificates of the environmental value of CO₂ reductions created through the use of SAF to corporate customers who fly with the JAL Group, and in FY2024, 10 companies participate to this program. Through this program, we will work with customers to promote and expand SAF and decarbonize supply chains.

In March 2024, we invested in Captura Corporation (U.S.), with Direct Ocean Capture technology, one of the new removal technologies. In August 2024, we invested in Heirloom Carbon Technologies, Inc., (U.S.) with Direct Air Capture technology, to diverse future decarbonization methods. We will continue to strengthen our partnerships with two companies.

In April 2023, in order to accelerate its decarbonization efforts, the JAL Group incorporated Internal Carbon Pricing (ICP) as a shadow price into our investment decision criteria. Our ICP covers Scope1 and 2, and we have set a base of JPY15,000 per ton of CO₂ emissions to promote decarbonization measures. (3 cases in FY2024)

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 July 30, 2025.

*12 CORSIA: Carbon Offsetting and Reduction Scheme for International Aviation

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.

Due to the nature of the air transportation business, direct emissions from aircraft account for about 99 percent of CO₂ emissions. Based on this fact, we are addressing the reduction of CO₂ emissions from aircraft as a top priority issue. In addition, we have set high targets for the reduction of CO₂ emissions from non-aircraft sources, such as ground facilities and ground vehicles, which account for about 1 percent of total emissions, and are working across the organization to achieve these targets. In order to overcome various challenges related to technological innovation and market formation, we will lead the industry with cutting-edge initiatives while strengthening cooperation and collaboration with various stakeholders in Japan and overseas, in line with the international framework for CO₂ reduction and consistent with the "Clean Energy Strategy" of the Japanese government.

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. To date,we have taken the lead in promoting the decarbonization of the global airline industry through such initiatives as the joint procurement of SAF in alliances and the use of ESG finance for aircraft renewals. Going forward, we will continue to accelerate our existing initiatives, including the steady renewal of fuel-efficient aircraft, reducing CO₂ Emissions in Daily Operations (JAL Green Operations), and the strategic procurement of SAF with specific targets set,using carbon credit, and new Technologies for Removal of CO₂.
In Japan, the government's "Basic Policy on Economic and Fiscal Management and Reform 2024," "Grand Design and Action Plan for a New Form of Capitalism", "Clean Energy Strategy" and "Strategic Plan for Transitioning to a Decarbonized Growth-Oriented Economic Structure” will promote the production and distribution of SAF. In order to realize the ambitious goal of replacing more than 10% of all onboard fuel with SAF by FY2030, the JAL Group will actively work to promote the commercialization of SAF through public-private partnerships and collaboration with domestic and international stakeholders. We will actively work to promote the commercialization of SAF through public-private partnerships and collaboration with domestic and international stakeholders.
We have also set targets for indirect emissions, which we have steadily reduced, and now, by setting targets for direct emissions on the ground (vehicles and ground facilities), we have set an emissions target for FY2030 for non-aircraft emissions of 35% below the FY2019 level. This will further accelerate our efforts to reduce non-aircraft CO₂ emissions.

*13 Including FY2019 CO₂ emissions of Spring Japan Co.,Ltd which became a consolidated subsidiary in 2021.

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.

• Upgrading to Fuel-efficient Aircraft
• ESG Finance

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.

The aviation industry has been working to reduce CO₂ emissions from the perspective of reducing fuel consumption. The quality of the fuel used must be changed in order to reduce it further in the future. From this perspective, SAF is being developed and put into practical use in many countries around the world, mainly in Europe and the United States, and it is expected that SAF will be widely used after 2030. In this context, the JAL Group, with the aim of becoming the leading airline in the use of SAF, has set a goal of replacing 10% of fuel on board by 2030. In cooperation with public and private sectors, we will work with stakeholders in Japan and overseas to promote SAF's commercialization.

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)

Furthermore, in the TCFD Consortium's "Guidance on Climate-related Financial Disclosures 3.0 (TCFD Guidance 3.0)" case examples, our disclosure was introduced as a good example, covering past emissions, targets and measures, enabling understanding the positioning of emissions reduction in the face of increasing demand, and setting an interim target for 2030 in conjunction with 2050 target. (page 30)

The JAL Group aims to reduce energy consumption through various initiatives aimed at reducing energy related CO₂ emissions from sources other than aviation.
In the ground facilities field, initiatives with the goal of reducing unit energy consumption by 1% or more on average have been promoted. Under the "operator classification evaluation system" of Act on the Rational Use of Energy (Energy Conservation Act) implemented by Ministry of Economy, Trade and Industry, the Group has been certified by S Class good business operator classification for 10 consecutive years since 2015.
In order to achieve its indirect CO₂ emission reduction target for FY2030 (50% reduction compared to FY2013), the JAL Group is promoting initiatives such as the use of LED lighting in its facilities, the introduction of air conditioning control systems, and the purchase of non-fossil certificates (the dedicated area for “JAL factory tour ~SKY MUSEUM~" is operated with net zero emissions).
In the ground vehicles field, the JAL Group is actively working to reduce CO₂ emissions from vehicles at airports, including the electric vehicles and the introduction of biodiesel fuel.
In addition to reducing CO₂ emissions in aviation and non-aeronautical activities, the JAL Group is working to reduce the volume of CO₂ emissions in the entire supply chain, including the volume of leftovers in inflight meals and lounges and food waste during cooking, as well as the volume of foodstuffs produced. We are also working to address to climate change in a variety of ways, including by cooperating with "the CONTRAIL Project", an atmospheric observation project.

• Reduction of Plastic Usage
• Reducing Food Loss & Waste
• Initiatives at Ground Facilities
• Initiatives at Ground Vehicles