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Address to Climate Change

At the general assembly of the International Civil Aviation Organization (ICAO) convened in 2010, two aspirational global CO2 reduction goals were agreed on for the international aviation sector: Improvement of fuel efficiency by 2% annually, and carbon neutral growth for international flights from 2020 onwards. Additionally, at the general assembly convened in 2016, the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which mandate airlines operating international flights to purchase CO2 emission credits for any excess CO2 emissions in 2019, from 2021 onwards, was adopted.
JAL Group has established a new long-term goal of “Zero CO2 Emissions” in June 2020, aiming to achieve net zero CO2 emissions by 2050. We will take steps to reduce CO2 emissions based on four pillars; “Promotion of development and utilization of Sustainable Aviation Fuel”, “Upgrade to fuel-efficient aircraft”, “Reduce CO2 Emissions in Daily Operations”, and “Dealing with Emissions Trading”. We have also established an management system to control CO2 emissions.

*The definition of the base year for CORSIA scheme has been revised in 2020, from "Excess from average CO2 emissions of 2019 and 2020 " to "Excess from average CO2 emission of 2019"

Basic Concept

Supervision and Management

The JAL Group is aware that the risks and opportunities relating to climate change are an important management challenge.The Group Management Council, with the President as chair and all officers as members, is the forum at which we supervise and manage those risks and opportunities. At this forum we work to minimize climate change risks based on the global laws and regulations and political trends relating to climate change, and also examine projects that make the most of the business opportunities. Furthermore, the Sustainability Promotion Committee, which promotes efforts to achieve the Sustainable Development Goals (SDGs), was formed below this Group Management Council, with the officers in charge of playing a central role in driving our climate change response.

Governance, strategy, risk management, indices and goals

The JAL Group, as an emitter of large amounts of CO2 in its daily flight operations, is aware of the significant financial impact that climate change will have on business due to restrictions on CO2 emissions as well as increases in the price of fuel-efficient aircraft, changes in crude oil and Sustainable Aviation Fuel (SAF) prices, and changes in the percentages of each type of fuel used, among others. With the trend to decarbonize based on the Paris Agreement and Intergovernmental Panel on Climate Change (IPCC) reports, the financial impact that climate change related risks and opportunities have on business, shown on the table below, is expected to keep increasing. We are responding by exploring ways to deal with the conceivable changes in advance and begin the necessary preparations, and we will then widely provide disclosure.

Short-term Target and Medium-Long-Term Target

Short-term Target and Medium- to Long-Term Target

The short-term target has been set as, "by fiscal 2020, reduce the amount of CO2 emitted per revenue ton kilometer by JAL Group aircraft by 23% compared to the fiscal 2005 level." To achieve this short-term target, we have steadily implemented measures by upgrading to fuel efficient aircraft such as the Airbus A350 and the Boeing 787, and reducing fuel consumption in daily flight operations. As a result, CO2 emissions in fiscal 2018 were 1.6% lower than the previous year, and we have achieved 19.4% of cumulative total reduction since fiscal 2005. Due to a major fall in demand with the spread of COVID-19, which occurred in the fourth quarter, total emissions in fiscal 2019 were 240,000 tons lower than the previous year. However, the amount of CO2 emitted per revenue ton kilometer increased by 2.4%. As a result, the cumulative reduction was only 17.0%.

Medium- to Long-Term Target

The medium- to long-term target is to achieve growth without increasing CO2 emissions beyond 2020. We will achieve this target by upgrading to fuel-efficient aircraft and reducing fuel consumption in daily operations, supporting the development and use of SAF in accordance with the CORSIA scheme, and engaging in emissions trading. In addition, we are striving to reduce total CO2 emissions through our long-term goal of Zero CO2 Emissions, aiming to achieve net zero CO2 emissions by 2050.

Initiatives for CO2 Reduction

The JAL Group is working on various initiatives in order to reduce effects on the environment. Please see links below for details.

Aviation

Ground facilities

Others

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