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Key Initiatives and issues to work on towards Sustainability (Metrics and Targets)

While covering the 17 SDGs, the JAL Group simultaneously organizes the ESG perspectives and the degree of impact through businesses and the importance for management is discussed at the Board of Directors. In FY2019, the JAL Group established four priority areas, namely the environment, people, local communities, and governance. 22 issues were addressed in each area and medium-term targets were set for each of the four areas and 22 issues. ESG management was promoted to achieve the SDGs. In FY2021, the four preeminent initiatives (reducing CO2 emissions, reducing single-use plastics, improving the ratio of female managers, and regional revitalization) were set as management targets (Sustainability). In FY2022, new indicators were added and disclosed along with past performances in order to promote our management strategy based on our ESG strategy in business areas other than air transport.
On the other hand, as the previous 22 issues in the 4 areas were mainly based on the FSC business, the link to social and economic values were not clear. In FY2023 they were revised into the eight materiality issues.

Eight Key Materiality Issues Addressed by the JAL Group Creating mobility and connections through business activities (Tourism Nation,Regional Revitalization,Fulfilled Hearts,Resilience through Diversity,Safe and Secure Society,Aviation Infrastructure) GX strategy (Precious Earth) Human resources strategy (Human Capital) Foundation for value creation (Governance)

Key initiatives based on the 8 materiality issues include actions to create mobility and connections through business activities from the perspectives of increasing options, eliminating constraints, and creating objectives. Global environmental conservation initiatives such as the GX strategy to pass on the precious Earth to the next generation, human capital management aimed at by the human resources strategy, and governance as the foundation for value creation. Metrics and targets are set as follows. It is also possible to set quantitative numerical targets, and we have set items to promote with intention.

Creating Relationships and Connections Through Mobility

Tourism Nation, Regional Revitalization, Fulfilled Hearts, Resilience through Diversity, Safe and Secure Society, Aviation Infrastructure

Increase in domestic passengers and cargo traffic

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Increase ratio (Passengers) -74.2% v.s.FY2019 *Excluding LCC -59% v.s. FY2019 *Excluding LCC -15% v.s. FY2019 +10% v.s. FY2019
Management targets
Increase ratio (Cargo) -30 v.s. FY2019 -34% v.s. FY2019 -17% v.s. FY2019 +10% v.s. FY2019
Management targets
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Maintenance and development of regional route networks including outlying island routes

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of domestic entry points (including code share) 62 points 61 points 61 points 64 points More than 65 points
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Expansion of services provided through increased contract orders

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of passenger and cargo flights regarding ground handling for foreign carriers 87,000 flights 9,000 flights 17,000 flights 29,000 flights 128,000 flights
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Promoting the use of domestic flights to in-bound tourists

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of users 701,240 people 49,188 people 121,844 people 582,180 people 1,505,000 people
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Drone logistics and commercialization of eVTOL Air Taxi

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Commercialization FY2023:Commercialization of drone delivery
FY2025:eVTOL commercialization
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Promoting air travel to customers who find it difficult to travel

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Ratio of such passengers onboard 0.36% 0.29% (0.8 times v.s. FY2019) 0.64% (1.8 times v.s. FY2019) 0.71% (1.9 times v.s. FY2019) 2.5 times v.s. FY2019 results
Number of wooden wheelchairs which go through metal detectors 478 units 478 units 478 units 508 units 580 units
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Enhancing pharmaceutical transportation

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Transport weight 610 tons 721 tons +18% v.s. FY2019 1,172 tons +92% v.s. FY2019 1,363 tons +123% v.s. FY2019 +50% v.s. FY2019
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Promoting Workstyle Research with Outside Stakeholders

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of member organizations of study groups 52 organizations 200 organizations
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Promoting JAL Wellness & Travel

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of municipal partnerships 4 cases 10 cases
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Strengthening planning and sales of recycled products in cooperation with companies outside the JAL Group

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of affiliated companies 15 companies
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Promoting Dokokani Mile

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Cumulative number of users 540,000 people 810,000 people
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Creating flow of people through the development of subscription -type travel programs

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of users 250% of FY2022
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Precious Earth

Reducing total amount of CO2 emissions

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Scope 1 [Aviation] Emissions 9.09 million tons 4.39 million tons 6.19 million tons 8.19 million tons Less than 9.09 million tons
Management targets
CO2 emissions per paid ton kilometer (RTK) 1.0648 kg-CO2/ton kilometers 1.3763 kg-CO2/ton kilometers 1.2751 kg-CO2/ton kilometers 1.0829 kg-CO2/ton kilometers 0.8187 kg-CO2/ton kilometers
Scope 2 [Ground facilities] Emissions 57,000 tons 51,000 tons 53,000 tons 56,000 tons 54,000 tons
Percentage of fuel-efficient aircraft 82% 84% 85% 86% 86%
Ratio of SAF to total fuel Loaded in all five A350
delivery flights
Domestically produced SAF loaded on domestic scheduled flights ・Loaded on four A350 delivery flights
・Loaded simultaneously on two types of domestically produced SAF for domestic scheduled flights
0.004% 1% of all loaded fuel
Reduction through JAL Green Operations promotion (CO2 reduction through operational ingenuity) 157,000 tons (1.7% of emissions) 82,000 tons (1.8% of emissions) 142,000 tons (2.3% of emissions) 195,000 tons (2.4% of emissions) Reduction equivalent to 2.5% of CO2 emissions from aircraft
Number of JAL Carbon Offset website visitors Tracked from FY2021 13,122 people (1.5 times v.s. FY2021) 30,000 people (3.4 times v.s. FY2021)
Number of Carbon Offset users Tracked from FY2022 385 people 2,000 people (5.2 times v.s. FY2022)
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Reduction of plastic

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Reduction ratio of new petroleum-derived singleuse plastic items in in-house standard products used inflight and in lounges 2.5% 10.4% 25% 45% 100%
Management targets
Use of environmentally friendly materials in single-use plastics used in airports and cargo transportation *Starting from FY2020 87.6% 90% 91% 100%
Management targets
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Reduction of inflight meal waste

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Yield improvement Less than 4.5%
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Paper reduction

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Electronic AWB (Air Waybill) 25% 62.5% Finalized JAL flight e-AWB
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Industrial waste reduction

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Final disposal ratio 0.3% 0.6% 0.3% 0.6% Keep below 1%
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Low-noise aircraft operations

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
ICAO Chapter 14 standard compliant aircraft ratio 45% 40% 41% 42% 46%
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Conserving and expanding tourism resources

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
[Okinawa] Proliferating and regenerating sexually reproducing corals 600 clusters 1,000 clusters 1,700 clusters 1,000 clusters by 2026
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Utilization of certified commercial materials

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Ratio of paper items with international certification in consideration with forest resources 15.9% 66.5% 66.5% 87.8% 100%
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Preventing illegal wildlife trade

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of illegal wildlife transports 0 0 0 0 0
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Consideration biodiversity in foodstuffs and commodity products

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of violations of in-house guidelines for ESG risks in foodstuffs and products 0 0
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Reducing ecosystem impact around the airport

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
[Tokyo] Number of incidents of inappropriate management of water containing hazardous substances 0
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Human Resources Portfolios

Forming dynamic human resources portfolios

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Manpower allocation to growing business areas +2,000 people +2,200 people +3,500 people v.s. FY2019
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DEI

Promoting diverse human resources

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Ratio of women in management 18.4% 19.5% 21.9% 22.8% 30%
Management targets
Employment ratio for persons with disabilities*1 2.62% 2.67% 2.64% 2.75% 3.2%
Percentage of men taking childcare leave*2*3 81.8% 106.3% 99.3% 87.2% 100%
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Careers/Reskilling

Providing opportunities for growth and learning

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Internal relocation through open recruitment 30 people/year 100 people/year
Training cost per person ¥449,480/person ¥109,321/person ¥84,469/person ¥138,651/person ¥338,000/person
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Engagement

Increasing engagement

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Percentage of highly engaged employees 54.4% 54.4% (no survey) 51.7% 51.7% (no survey) 64.4%
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Improving labor productivity

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Sales per capita -50% -2% +15% v.s. FY2019
Total work hours*2 1,862 hours/person 1,878 hours/person 1,890 hours/person 1,884 hours/person 1,850 hours/person
Percentage of usage of annual paid leave*2 79.0% 71.5% 74.5% 81.0% 100%
Average number of hours of overtime and holiday work per month*2 9.5 hours/person 8.0 hours/person 9.9 hours/person 10.5 hours/person 4 hours/person (linked to 1,850 hours of total annual labor)
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Improving the ratio of health check-up

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Employee consultation ratio 100% 100% 100% 100% Maintaining 100%
Family consultation ratio*5 37.5% 36.0% 40.7% 47.1% 75%
Ratio of mammography*2 36.7% 43.4% 64.6% 65.5% 70%
Uterine cancer screening*2 30.7% 38.6% 58.4% 60.5% 60%
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Conducting human rights due diligence

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Implementation ratio of human rights due diligence 100% 100%
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Respect for human rights of stakeholders

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Completion of human rights investigations of new key suppliers 100%
Attendance ratio of education related to respect for human rights 81.9% 100%
Ratio of employees who work long hours 1.98% 0%
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Disclosure and Dialogue

Strengthening the dissemination of information on corporate website sustainability pages

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of views 765,912 786,229 893,469 840,170 1 million or more
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Strengthening the dissemination of information to individual shareholders and investors

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of registered individual shareholders on the email newsletter list 1,805 people 7,464 people 15,000 people
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Preventing information leakage

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of incidents 0 2*4 0 2 0
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Number of Incidents to Prevent Corruption and Bribery

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of incidents 0 0 0 0 0
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Supply Chain Management

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Confirmation ratio of integrity of critical suppliers 18% 37% 62% 81% 100%
Number of aviation security audits of all caterer factories and machine supply depots 2 2 2 2 2
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Enhancement of BCM

Improving the effectiveness of BCP

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Performance indicators Results of FY19 Results of FY20 Results of FY21 Results of FY22 Target for FY25
Number of BCP-based exercises 1 1 4 4 2
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*1 Total value of Japan Airlines Co., Ltd. and JAL Sunlight Co., Ltd., a subsidiary that hires people with disabilities

*2 Japan Airlines Co., Ltd. only

*3 Calculated based on the number of people in childcare leave applicants before FY2021

*4 Number of information leakage incidents reported to authorities

*5 Until FY2020, the data was compiled for family members aged 35 and over. From FY2021, the data is compiled for family members aged 40 and over.

Please see below for key actions until fiscal 2022.

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