Central Japan Railway

Central Japan Railway works with vehicle manufacturers to develop low-carbon vehicles. However, it does not monitor the emissions impact of its suppliers or subcontractors. The company would benefit from collecting emissions data that could be used to set criteria for manufacturing selection. The company requests that suppliers abide by Green Procurement Guidelines that include reduction of energy use and the development of energy-saving technologies, which focus on the materials used. The company could go further by requiring vehicle manufacturers to set science-based emissions reduction targets.

Central Japan Railway has completed scenario analysis against 2°C and 4°C scenarios. Quantitative results of these scenarios were published, detailing adaptation costs. To inform the company on how to transition to a low-carbon economy, the results should provide more recommendations on mitigation efforts. The scenario analysis would improve if it was assessed against a 1.5°C scenario. The company has board-level oversight of climate strategy, but no expertise was identified on the board. The company does not offer its board of directors significant monetary incentives for efforts to mitigate climate change.

Central Japan Railway does not disclose its total research and development (R&D) investment costs for 2020 but it invested USD 123 million in developing energy-conserving rolling stock and development related to environment preservation along the railway line. However, it is unclear what proportion of this is related to the developing energy-conserving rolling stock. It has invested in the N700S rolling stock which is 28% more efficient than the Series 300 that is currently in operation. The company invests in new technologies but there is no evidence of a digitalisation strategy to reduce GHG emissions. To aid the transition to a low-carbon economy, the company could introduce GHG emissions reduction goals into the digitalisation strategy.

Central Japan Railway has set a net-zero target by 2050. By 2030, the company aims to reduce emissions by 46% compared to 2014.

The company plans to reduce emissions by adopting new technologies to lower energy use in rolling stock and facilities. It will consider the use of renewables when available but has not established a plan for increasing the use in its operation.

Central Japan Railway spent USD 123 million on low-carbon vehicles and energies. The Shinkansen line which is predominately electric makes up for about 85% of the company’s activity. The company collaborates with vehicle manufacturers to improve the energy efficiency of rolling stock.

Central Japan Railway scope 1 emissions intensity decreased by 2% per year on average between 2016 and 2021. The company remained within its carbon budget between 2015 and 2020.

Central Japan Railway’s targets suggest it is now committed to the low-carbon transition. However, how the company plans to integrate climate mitigation into the business is not clear as its focus is primarily on adaption.

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

While no public commitment by the company was found stating its intention to create and support access to green and decent jobs, the company does disclose the measures it takes to ensure that recruitment embeds equality of opportunity for women and vulnerable groups. In particular, it sets hiring targets for women and discloses the rate by which it employs people with disabilities. However, no evidence was found of the company committing to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it offers on the job training, and practical training programmes. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

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.

No policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies by which the company can ensure respect for basic human rights in its operations and supply chain. The company does offer a human rights grievance mechanism for its workers, but it is not clearly available to external stakeholders and individuals.

The company commits to workplace gender equality and women’s empowerment, and it discloses some information on workforce diversity fundamentals. However, the company can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.

No policies or commitments of the company 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.