Information Disclosure Initiatives Based on the Recommendations of the TCFD and TNFD
As part of the information disclosure initiatives related to climate change, in 2020, JR East began qualitative evaluation and disclosure of the financial impact of future climate change on its Transportation business. We have now expanded the scope of analysis to include the Lifestyle Solutions business. As part of our information disclosure initiatives on nature-related issues, the Shinanogawa Power Plant has been selected in FY2025.3 as a priority area based on the TNFD recommendations. For the first time, we disclosed information on its dependence on natural capital, as well as its impacts, risks, and opportunities. A detailed risk analysis was conducted, and metrics and targets were established to mitigate these risks.
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| Evaluation Item | Climate-related Disclosure Based on TCFD Recommendations | Nature-related Disclosure Based on TNFD Recommendations |
|---|---|---|
| Governance | The Sustainability Strategy Committee, chaired by the president and CEO, oversees and makes decisions regarding the establishment and progress of targets for climate change and nature-based issues and the management of risks and opportunities. The committee includes the Company’s vice presidents and executive directors as well as full-time Audit and Supervisory Committee members, outside directors also attend its meetings, and the committee meets about twice a year. (Promotion Structure ▶ )Based on the JR East Group Human Rights Policy, we monitor the status of engagement activities with stakeholders who are affected by our business activities. |
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| Strategy | Under the JR East Group Management Vision “To the Next Stage” 2034, we aim to achieve a sustainable and prosperous global environment. To achieve this, for each business, we identify and assess the key risks and opportunities that climate change poses to our business activities and verify the appropriateness of our business strategies. |
As a Group with multiple businesses and locations, we select high-priority businesses and regions, and then analyze and evaluate nature-related issues in accordance with the LEAP approach.*1 In addition, we analyze the resilience of organizational strategies to nature-related risks and opportunities using scenarios proposed by the TNFD. |
| Risk management | Each department takes specific measures to avoid or reduce identified risks influenced by climate change. With regard to climate change mitigation, at least once every six months we compile data on energy consumption, CO2 emissions, and chlorofluorocarbon (CFC) leakage for each business. We also identify, specify, and assess risks based on revisions to laws and regulations and other important changes in the external environment. With regard to adaptation to climate change, we are promoting efforts to reduce physical risks in the main business due to acute and chronic weather-related disasters. Within regard to nature-related risks, we identify aspects that have an impact on nature and ecosystems and take specific measures to mitigate them. Through LEAP approach-based analysis and assessment, we clarify the priorities of nature-related risks and opportunities and implement measures to mitigate climate change, as well as conduct resource recycling, chemical substance management, and environmental conservation along railway lines. |
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| Metrics and targets | With regard to climate change, we have set Zero Carbon Challenge 2050 as a goal for the entire Group, aiming to reduce CO2 emissions by 50% by FY2031.3 (compared to FY2014.3) and to achieve net zero CO2 emissions in FY2051.3. In addition to regularly monitoring progress towards these targets, we are promoting Groupwide initiatives toward the realization of a decarbonized society. (Scope of our targets and progress toward achieving them ▶ ) With regard to nature-related risks, we set targets on the amount of waste generated and the number of trees planted. In addition, we are promoting LEAP approach-based analysis and have set new metrics and targets (see below) for nature positivity |
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- *1A process proposed by the TNFD for systematically assessing nature-related risks and opportunities (LEAP: Locate, Evaluate, Assess, Prepare).
TCFD*2 Recommendation-Based Information Disclosure
There are two kinds of risk and opportunity associated with climate change. One is physical–for example, the intensification of weather-related disasters caused by global warming. The other is a transition in the social environment–for example, the strengthening of regulations and technological progress aimed at mitigating climate change. We have identified the main climate change risks and opportunities for our core business, and are conducting scenario analysis regarding risks and opportunities recognized as material.
- *2Task Force Climate-Related Financial Disclosures is an international framework that promotes corporate disclosure of climate-related risks and opportunities. The purpose is to disclose the impacts of climate change on a company’s finances and help make investment decisions. Please refer to JR East’s Initiatives in Response to the TCFD Recommendations, available with the following QR code, for details of the JR East Group’s information disclosure based on the TCFD recommendations and past implementation:
Identification of Risks and Opportunities
Main risks and opportunities of Real Estate & Hotels (business operation of real estate, hotels, and shopping centers) (excerpt)
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| Factors | Business Impact | Financial Impact | Timing of Manifestation | |
|---|---|---|---|---|
| Transition Risks | Tightening of greenhouse gas emission regulations, such as carbon pricing |
Increased costs in response to operational emissions |
Large |
Medium term |
Introduction of Zero Energy Building (ZEB) and energy efficiency regulations |
Increased construction and renovation costs due to introduction and tightening of regulations on ZEB compliance and energy efficiency |
Medium |
Short to medium term |
|
Spread of environmentally friendly real estate |
Increased procurement costs due to higher purchase prices of real estate with high environmental performance |
Large |
Short to medium term |
|
| Physical Risks | Increased and more severe weather disasters such as wind and flood damage |
Increased renovation costs accompanying facility damage and decreased sales due to business suspension |
Medium |
Short term |
Increased average temperatures |
Increased costs of summer air conditioning at facilities |
Medium |
Short term |
|
| Opportunities | Improved energy efficiency |
Reduced operating costs due to improved energy efficiency of existing facilities, relocation to more efficient buildings, and rebuilding of existing facilities |
Large |
Medium term |
Advances in renewable energy and energy-saving technology |
Reduced implementation and operating costs due to innovation in renewable energy and energy-saving technology |
Large |
Medium term |
|
Increase in number of environmentally conscious tenant companies |
Increased rental income from real estate with high environmental performance, environmental certification, and for which environmental value has been purchased |
Medium |
Medium term |
|
The definitions of financial impact and timing of manifestation are as follows.
| Financial Impact*3 | Revenue Small: Less than ¥1.0 billion; Medium: ¥1.0 billion to ¥10.0 billion; High: More than ¥10.0
billion |
|---|---|
| Timing of Manifestation | Short term: Less than 5 years; Medium term: More than 5 years but less than 10 years; Long term: More than 10 years |
- *3Financial impacts are calculated by assessing transition risks and opportunities with an outlook to around 2030, and physical risks with an outlook to around 2050.
Scenario Analysis
As we transition to a decarbonized society, energy-saving regulations for buildings will tighten and the number of environmentally conscious tenant companies will increase. As a result, demand for
real estate with high environmental performance (green buildings) will increase. If we are unable to respond to these social demands, we may face financial impacts such as increased operating costs
and reduced rental income.
This analysis estimates the financial impact of the spread of green buildings and the introduction of regulations based on two scenarios, in terms of construction and renovation costs, energy costs,
and rental income.
Subjects of Analysis and Assessment Timing
The main facilities of the real estate, hotel, and shopping center business operations are properties operated by JR East Building Co., Ltd. and others, NIPPON HOTEL Co., Ltd. and others, and atré Co., Ltd., LUMINE Co., Ltd., and others, respectively. The assessment timing is 2030.
Scenarios Analyzed and Their Worldviews
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| Initiatives to Introduce Green Buildings, etc. | Worldview of Scenario | External Scenario Used |
||
|---|---|---|---|---|
| Implemented | Not Implemented | |||
| 1.5℃ scenario |
Scenario 1 |
Scenario 2 |
Scenario achieving net-zero emissions by 2050, with the global temperature rise limited to approximately 1.5°C by 2100. Environmental regulations and customer demand will drive energy-efficient building renovations, construction of high-environmental-performance buildings, and acquisition of green building and environmental certifications. |
International Energy Agency (IEA) Net Zero Scenario (NZE) |
Scenario Analysis Results
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| Financial Impact of Climate Change in 2030 (Billions of Yen) | ||
|---|---|---|
| Scenario 1 1.5°C Scenario (Initiatives Implemented) | Scenario 2 1.5°C Scenario (Initiatives Not Implemented) | |
| Increase in renovation and construction costs | △30.6 |
△7.7 |
| Reduction in energy costs | 19.8 |
3.7 |
| Increase in rental income | 182.5 |
△165.7 |
The calculations show that implementing environmental measures under the 1.5°C scenario would increase costs for renovating existing properties and constructing green buildings; however, the benefits are expected to far outweigh the additional costs due to cost savings from improved energy efficiency and increased rental income from environmentally conscious customers. On the other hand, under the same scenario, if environmental measures are not implemented, renovation and construction costs may be reduced; however, the benefits of lower energy costs will be limited, and rental income will decline significantly due to the inability to meet customer demand.
Information Disclosure Based on the Recommendations of the TNFD*4
We began analysis of nature-related issues based on the LEAP approach, selecting the Shinanogawa Power Plant as a priority location for further detailed study, and have been carrying out analysis on this location.
- *4The Taskforce on Nature-related Financial Disclosures is an international framework to help companies disclose risks and opportunities related to natural capital, such as biodiversity, land, and water. The purpose is to enable companies to understand their relationship, including dependencies and impacts, with natural capital and to financially assess and disclose nature-related risks and opportunities. For details on the initiatives up to the assessment of nature-related risks and opportunities due to dependence and impacts in the information disclosure process based on the recommendations of the TNFD, please scan the QR code.
Prepare: Setting Strategies and Targets
Based on the nature-related risks and opportunities of the Shinanogawa Power Plant identified through past initiatives, we referred to existing measures, financial impacts, and nature-related scenarios proposed by the TNFD and established two scenarios, one in which transition risks become prominent and another in which physical risks become pronounced. We then organized the impacts on our business.
Overview of Set Scenarios
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| Society in Which Transition Risks Are Prominent | Society in Which Physical Risks Are Pronounced | |
|---|---|---|
| Social landscape | Strengthened nature-related policies and regulations, advances in nature-related technologies, and growing social pressure for nature conservation activities affect people’s lives and corporate activities; however, degradation of ecosystem services, such as resource supply, climate regulation, and disaster mitigation, is kept within certain levels. |
Inconsistent nature-related policies and regulations, delays in development of nature-related technologies, and social indifference to nature conservation activities lead to significant degradation of ecosystem services, such as resource supply, climate regulation, and disaster mitigation, affecting people’s lives and corporate activities. |
The key risks and opportunities in a society in which transition risks are prominent are shown in the table below. In this society, while tightening of related laws and regulations, declining trust from stakeholders, and growing demands will have an impact on business, some business opportunities are expected to become more important.
Key Risks and Opportunities in a Society in Which Transition Risks Are Prominent
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| Points of Contact with Nature | Risks | Opportunities | Existing Initiatives | |
|---|---|---|---|---|
| Drivers of Impacts | Water use |
Tightening of regulations related to the impact of water use on ecosystems |
－ |
Participation in conferences with national and local governments and experts on improving aquatic environments, as well as various academic conferences |
| Ecosystem Services | Maintaining habitats and growth environments |
Declining trust from stakeholders due to deterioration of habitats |
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Setting Metrics and Targets
| Metrics | Goals |
|---|---|
Continue to conduct environmental surveys of the midstream Shinano River |
Once or more per year |
Continue to hold review committees to provide opportunities for dialogue with stakeholders, including local governments and experts |
Once or more per year |
Based on the results of the LEAP approach-based assessment and scenario analysis, the Group considers the risk of degradation of habitats and growth environments, leading to concerns over ecosystem conservation and a decline in stakeholder trust to be particularly significant. To reduce this risk, we have set management metrics to continue to conduct environmental surveys of the midstream Shinano River and to continue to hold review committees to provide opportunities for dialogue with stakeholders, including local governments and experts.
Specific Initiatives for the Shinanogawa Power Plant Related to Metrics and Targets
Initiatives to conserve the river environment
The JR East Group is carrying out maintenance of the fish ladder installed beside the Miyanaka Intake Dam so as not to impede the upstream migration of fish that live in the Shinano River, and we are also conducting research and monitoring to further improve the fish ladder. Every spring, we release salmon fry into the Shinano River together with the local fishing association and elementary school students. In addition, we conduct surveys of the water temperature from upstream of the dam to downstream of the power plant, fish capture surveys, identification of fish species using environmental DNA, and surveys of salmon migration status. We believe that such initiatives not only mitigate the impact and risk on the ecosystem, but also represent a win-win situation for both nature and business, and we will continue our efforts going forward.
Dialogue with local communities
For many years, the JR East Group has been observing and evaluating the impact of water withdrawal on the river basin and
publishing the results of its observations. We also participate in conferences such as the Shinano River Midstream Water
Environment Improvement Review Council, and continue to engage in dialogue with the local community about the harmony
between our business activities and the natural environment of the midstream Shinano River.
secretariat, as a platform to study the river environment of the midstream Shinano River basin and biodiversity conservation
together with local residents, fishing associations, and experts on fish, river environments, and ecology. The second
committee meeting was held in June 2025, during which time we received feedback from all concerned parties on our past
initiatives related to the river environment, the study report on the discharge method from Miyanaka Intake Dam taking into
consideration the river environment, and biodiversity conservation at the Shinanogawa Power Plant, including fish habitats
and upstream and downstream migration.
The Group will continue to assess nature-related risks and opportunities based on TNFD recommendations as well as manage
its metrics and targets, and will continue to promote activities to harmonize its power generation business with nature in the
midstream Shinano River basin. In cooperation with stakeholders such as local communities and river managers, the entire
Group will work toward becoming nature positive