Environmental initiatives of

the JR East Group

March 6, 2024

East Japan Railway Company

Executive Officer

Department Director of Corporate Planning Department,

Corporate Strategies Headquarters

Takashi Takaoka

Environment viewed

in the JR East Group Medium-term Management Plan/Management Vision

1987

2018

2027

JR East Group Management Vision "Move Up" 2027

Great East Japan

JNR privatization reforms

Earthquake

[ESG Management]

"First starting point"

Preventing global warming and diversifying energy sources

"Second starting point"

Realizing a

Reduce energy consumption and CO2 emissions

"decarbonized

Net zero CO2 emissions in fiscal 2051

society"

JR East Group Management Vision V

[Pursuit of infinite possibilities]

Fiscal 2013 -

Built energy/environmental strategies (energy creation, energy conservation, smart grid)

JR East 2020 Vision

[Seven gear changes]

Fiscal 2009 -

Addressed global environmental issues proactively and over the long term

New Frontier 2008

[Important management issues]

Fiscal 2006 -

Fulfilled our corporate social responsibilities and put even more effort into legal compliance and protection of the global environment

New Frontier 21

[Group Vision]

Fiscal 2002 -

Harmony with society and

coexistence with the environment

FUTURE21

Actively developed technological innovations

Fiscal 1991 -

such as improving energy efficiency

[ESG Management viewed in "Move Up" 2027]

2

Main initiatives of "Move Up" 2027 (ESG management practice)

Realizing sustainable

growth

of JR East Group

nvironment

Social

E

・Service quality reform

・ Prevention of global warming

・ Diversification of energy

・Responding to social issues

・Supporting cultural activities

Governance

Diverse

customers

・ Ultimate safety levels

・ Risk management

・ Compliance

Regional

JR East

Shareholders

society

Group

and investors

3

JR East Group's sustainability strategies

Sustainability strategies

  • The JR East Group's businesses fulfill a wide range of important functions in the daily lives of customers and are indispensable to local communities and society.
  • While ensuring appropriate profits, we will practice ESG management that implements necessary measures from a medium- to long-term perspective, and work to solve social issues through our businesses.

Materiality (important issues)

Providing Society with

Safe, Reliable

Infrastructure

Providing Society with

Innovative

Technologies and

Services

Creating a Vibrant

Society

Increasing the

Engagement of All

Group Employees

Enriching the Global

Environment

Improving Confidence

in Management

Specific initiatives

(2) Circular Economy

(3) Nature Positive

(1) Carbon Neutrality

- Promoting 3R (Reduce, Reuse,

- Hometown Forest Planting

- Zero Carbon Challenge 2050

Recycle) initiatives

program

- Utilization of diverse energy

- Recycling waste generated at

- Effort to protect ocean diversity

stations and on trains

- Preservation of the Shinano

River ecosystem

4

JR East Group's sustainability strategies

Direction of specific initiatives

(1) Carbon Neutrality

  • Formulated long-term environmental goals "Zero Carbon Challenge 2050" and declared our goal to achieve Groupwide "net zero" CO2 emissions by fiscal 2051
    => Announced our commitment to acquire SBT certification with the aim of setting science-basedtargets => Upgraded the renewable energy plan to acquire SBT certification
    => While focusing on building new renewable energy power plants in our Group, we also procured renewable energy from other companies.
  • Challenges in visualizing CO2 emissions (e.g. carbon footprint (*))

=> Preparing to disclose CO2 emissions by Shinkansen section based on energy usage

*Carbon footprint: The value displayed on the product or service or the mechanism that involves GHG emissions from the entire

life cycle of a product or service, from raw material procurement to disposal and recycling, converted into CO2 emissions

(2) Circular Economy

  • Scheduled to make capital investment in waste plastic recycling business, including renovation of JR East Tokyo Resource Recycling Center
  • Aim to circulate resources within the JR East Group by collaborating with group companies to further collect, recycle, and use waste such as waste plastics and food waste within the Group

(3) Nature Positive

  • Continue efforts such as the Hometown Forest Planting program to regenerate forests, the construction of fishways at the Shinanogawa Power Station, and the release of salmon fry in downstream areas.
  • Identify and exert necessary efforts toward Nature Positive by announcing our support for the

recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) and promoting

analysis/disclosure of nature-related risks/opportunities aligned with the recommendations

5

Management commitment regarding sustainability strategies

Promotion structure

Sustainability Strategy Committee

Aiming to realize a sustainable society, we will establish and promote the

Group's basic policies and other measures to solve social issues such as global

environmental problems.

Reports

Supervision and

decision-making

Secretariat

Coordination of each working group and consideration of overall policy development

Reports to Sustainability Strategy Committee and coordinates promotion of measures

Sustainability Strategy

Committee

Implementation overview

Attendees

・President

・Vice presidents

・Executive directors ・Outside directors

・Directors who are also full-time Audit and Supervisory Committee members

and others

Cooperation

Zero Carbon Working Group

Considers energy conservation measures,

introduction of renewable energy, etc.

Coordinate

Hydrogen Working Group

Considers utilization of hydrogen

Number of meetings held

Twice a year

*Starting in 2020 and holding up to the 8th Committee Meeting

6

Participation in initiatives, etc.

Basic policies

  • We actively participate in domestic and international initiatives and support the statements related to the environment, and work together with other companies to facilitate climate change countermeasures and realize a sustainable society.

Initiatives and statements that we participate in and support

SDGs

CDP

TCFD

GX League

SBT

WWF Japan

Excerpt from the front page of Kotsu Shimbun,

August 24, 2023

7

Participation in initiatives, etc. (TCFD recommendation-related initiatives)

  • We announced our support for TCFD in 2020, and started disclosing the financial impact of climate change from August 2020.
  • The financial impact for Arakawa River flooding during climate change, which was disclosed in fiscal years 2023 and 2024, is shown below.
    • Map showing Arakawa River flooding (upstream) area superimposed on our lines

As global warming

progresses...

  • In case of 2℃ rise
    • Increase of 33.8 billion yen
  • In case of 4℃ rise
    • Increase of 34.4 billion yen

8

Participation in initiatives, etc. (efforts to acquire SBT certification)

  • In August 2023, we submitted a commitment letter to the SBT secretariat with the aim of becoming the first domestic railway company to acquire SBT certification.

What are Science-Based Targets (SBTs)?

  • A joint initiative by CDP, WWF, World Resources Institute (WRI), and the United Nations Global Compact.
  • Recommends companies to set a vision and goals for reducing greenhouse gas emissionsbased on a long-termperspective and the Paris Agreement.
  • The number of SBT certified companies; approximately 380 in Japan, approximately 2,400 in the world (As of March 2023)
  • Emission reduction targets must be set within two yearsafter submitting a commitment letter.

Overview of SBT certification standards and comparison with Zero Carbon Challenge 2050

Item

SBT

Zero Carbon Challenge 2050

Domestic consolidated subsidiaries and

Target scope

Entire company including overseas consolidated

JR East only

subsidiaries

*To be considered in the future whether

to include overseas

(1) Base year

(1) Set after 2015

(1) Fiscal 2014

(2) Target year

(2) Within 5 to 10 years from the time of application

(2) Fiscal 2031/2051

Reduction scope

Scopes 1 + 2 + 3 + FLAG emissions

Scopes 1 + 2

=> Possible to reduce only within the

=>Reductions are required including suppliers

Group

(1) Scopes 1, 2: 4.2% + α reduction every year *1

(1) 50% reduction by fiscal 2031

Reduction target

(2) Net zero by fiscal 2051

(2) Scope 3: 2.5% + α reduction every year *2

=>There are no rules regarding reduction

=>A certain reduction is required every year.

in the process.

Reduction method

Restrictions such as unavailability of forest-derived

No restrictions

credits

GHG targeted for

Greenhouse gases such as CO2, methane, and

CO2

reduction

fluorocarbons

*1: Reduction necessary to keep temperature rise to 1.5℃

*2: Reduction necessary to keep temperature rise below 2℃

Reduction rate varies depending on the base year

[Scopes 1/2/3 overview diagram]

UpstreamDownstream

Company

Fuel combustion

Use of electricity

*Quoted from the Ministry of the Environment website

Areas not calculated by JR East Group (inside the red frame)

[Scope 1]

Direct greenhouse gas emissions by the reporting company itself (e.g. fuel combustion)

[Scope 2]

Indirect emissions from the use of electricity, heat, or steam supplied by others

[Scope 3]

Indirect emissions other than Scopes 1 and 2

Not calculated

emissions

(Emissions of other companies related to

business activities)

9

Participation in initiatives, etc. (TNFD recommendation-related initiatives)

About TNFD

  • TNFD (Task Force on Nature-Related Financial Disclosures) has developed risk management and disclosure framework and disclosed final recommendations in September 2023.
  • LEAP is an approach for analyzing natural capital-related risks and opportunities, which is recommended to be executed prior to disclosing TNFD.
  • First, targets are clarified by scoping the assessment and then assessed according to the LEAP approach.

Scoping

Set the scope of the

What are the organisation's activities where there are likely to be

material nature-related dependencies, impacts, risks and

assessment

opportunities?

Locate

Locate the interface with

Which of our bases have interface with nature and should be

nature

particularly assessed for their dependencies and impacts on nature?

Evaluate

Evaluate dependencies

What are our dependencies and impacts on nature and what is the

and impacts

scale of such dependencies and impacts?

Assess

Assess key risks and

What are the risks and opportunities for our organization and what is

opportunities

the scale of such risks and opportunities?

Prepare

Prepare to respond and

What goals and indicators will we set? What and how will we

report

disclose?

Based on the above approach, we have selected our Group's "target businesses" and "priority regions" and are currently considering supports/disclosures.

10

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EJRC - East Japan Railway Company published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 03:18:05 UTC.