J Power

As a purely generation company, J-Power’s s scope 1 and 2 emissions reduction targets cover the majority of its electricity generation emissions. The company aims to reduce its scope 1 and 2 emissions by 100% by 2050. It also aims to reduce company-wide scope 1 emissions by 40% by 2030 compared to 2019. J-Power should set intermediate targets at gaps of no more than five years to incentivise near-term actions towards its longer-term goals. It should also make clear what percentage of its targets it plans to achieve through offsets.

J Power’s emissions intensity decreased between 2017 and 2022 due to a slight increase in the share of its low-carbon energy generation sources. However, the company must accelerate its rate of emissions decrease by nearly five times to align with its 1.5°C pathway. J-Power is projected to exceed its total 1.5°C carbon budget for the period 2022-2037 due to a continued reliance on fossil fuels. In the financial year 2021/2022, the company spent 55% of its capital expenditure (CapEx) on implementing its transition plan and aims to spend 69% in 2030. However, this is still below the sectoral expectations of 95% of CapEx to be directed towards low-carbon technologies.

J-Power actively develops low-carbon solutions, including hydroelectric, wind, geothermal and solar power, and hydrogen derived from both fossil fuels and renewable energy. The company states that it can separate and capture carbon dioxide (CO2) generated during coal gasification using CCUS technology to produce carbon-free hydrogen. Therefore, it does not plan to demolish its coal-fired plants but upcycle them to enable the use of the new technology. However, studies show that hydrogen produced by coal gasification is much dirtier than hydrogen produced from renewables. The company should explore additional business models that will support decarbonisation.

J Power has a target to achieve net-zero scope 1 and 2 emissions by 2050. It also has a target to decrease company-wide scope 1 emissions by 40% by 2030 compared to 2019.

J-Power has established a transition plan called Blue Mission 2050. In the short-term, the company plans to expand renewable energy by prioritising investments and focusing on the development of domestic onshore wind power plants. It will also focus on developing small-scale hydroelectric power plants and on further using biomass and repurposing coal-fired power plants. These technological developments will be key to achieving the transition.

Present

In 2022, the company spent 55% of its CapEx on the transition plan and aims to spend 56% in 2025 and 69% in 2030. Despite a net-zero target for scope 1 and 2 emissions, J-Power opened a new joint venture coal plant in Indonesia, which began operations in 2022.

J Power’s emissions intensity decreased between 2017 and 2022. However, its rate of emissions reduction is not fast enough to align with its 1.5°C pathway. In 2022, 40% of the company’s energy generation was fuelled by coal.

J Power has not committed to phasing out fossil fuels. The company is relying on technological development to achieve its low-carbon transition. These technologies include coal gasification and CCUS. The company has allocated a research and development (R&D) budget, but it does not disclose its R&D share for low-carbon technologies. Currently, its power production relies heavily on fossil fuels, with coal powering 40% and gas powering 20% of the total energy production.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. No evidence was found of the company having a grievance mechanism available to workers and external stakeholders.

While the company commits to respecting the health and safety of its workers, no evidence was found that it expects the same commitment of its business relationships. Moreover, no evidence was found of the company having a time-bound target for paying all workers a living wage. There was also no evidence that the company discloses the proportion of its direct workforce covered by collective bargaining agreements or its required working hours. No evidence was found that the company commits to gender equality and women’s empowerment.

No company policies or commitments related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.