Contribution to solving environmental issues

JFE Shoji Corporation aims to realize "sustainable living and society.
We are promoting a variety of environmental initiatives through our business.

Offshore wind power generation
by business efforts to promote renewable energy

In Japan, the Seventh Energy Plan, approved by the Cabinet in 2025, calls for a 73% reduction in greenhouse gas emissions by 2040, a 40-50% reduction in the ratio of renewable energy in the power supply, and a 40-50% reduction in the ratio of greenhouse gas emissions in the power supply, in order to achieve carbon neutrality by 2050. The ratio of renewable energy in Japan's power supply mix is expected to be 40-50%, and the ratio of wind power generation is expected to be 4-8%, compared to 1.1% in FY2023. Offshore wind power generationIn the case of the United States, the target is to have 10 GW of projects in place by 2030, and 30-45 GW by 2040, and projects are being formed. Efforts are also underway for the mass introduction of internationally competitive technologies, such as the selection of the floating Offshore wind power generationdemonstration project by the GI Fund. JFE Shoji CorporationIn Taiwan, where the Offshore wind power generationindustry is leading the way, MHI is collaborating with a local company that manufactures foundation equipment for wind turbines, and is building a track record in the supply chain for steel products for foundation equipment. In the future, we intend to contribute to the realization of carbon neutrality in the Offshore wind power generationindustry in Japan by building a supply chain that contributes to domestic production and the local economy, and responding to customer demand.

Biomass Fuel Reduction of CO₂ emissions by supplying

We import palm kernel shell (PKS) from Malaysia and Indonesia and wood pellets from Southeast Asian countries and supply them as fuel to biomass power plants in Japan. By utilizing them as fuel, we are both reducing waste and making effective use of resources. These efforts also contribute to the realization of a circular economy.
In addition, these Biomass Fuelare positioned as carbon neutral fuels because they absorb CO₂ during the growing process, which is offset by the CO₂ emitted during combustion. Furthermore, the trees and crops used as raw materials are reforested and re-cultivated after harvesting, thereby promoting a sustainable supply chain.
JFE Shoji CorporationIn order to support fuel conversion from coal-fired power generation, MCC is also involved in the development and supply of alternative Biomass Fueland aims to be a company that reduces environmental impact and promotes energy conversion through the recycling of waste as a resource.
Carbon Neutral Structure
PKS
Wood pellets

Efficient supply and consumption of electricity through
initiatives in the supply network

In addressing climate change issues, including the reduction of CO₂ emissions, the key point is how to efficiently use the generated electricity without loss.
Of the electricity consumed, motors used in various places such as power plants, factories, and homes account for 40-50% worldwide and about 60% in Japan, which is a large portion of total electricity consumption. It is said that a 1% improvement in motor efficiency in Japan would be equivalent to the energy savings of one large 500 MW-class power plant. Electric vehicles (EVs), of course, are said to have as many as 50 to 100 motors per car, and by making these on-board motors smaller, more efficient, and lighter, it is expected that energy-saving effects such as improved fuel efficiency can be expected. In addition, energy loss in delivering generated electricity to factories and homes cannot be ignored. Therefore, increasing the efficiency and lowering the loss of transformers, which are indispensable for power transmission and distribution, are also important efforts to reduce power consumption and CO₂ emissions.
In addition to the stable supply of high-quality electromagnetic steel sheets, which are indispensable for higher efficiency and lower loss of motors and transformers, we have established a value chain that includes the necessary processing. We contribute to the preservation of the global environment by responding to our customers' needs in detail under a supply network that matches the global expansion of motor and transformer manufacturers.

Strengthening the supply chain
of high tensile strength steel sheet (high tensile strength) that contributes to automotive weight reduction

With the goal of becoming carbon neutral by 2050, automobile manufacturers are working to reduce CO₂ emissions. For internal combustion engine vehicles such as gasoline-powered cars, reducing the weight of the car body improves fuel efficiency and reduces CO₂ emissions. In addition, for electric vehicles (EV), weight reduction of the car body is essential to extend the cruising range.
High-tensile steel, which the JFE Group develops and sells as steel material for automobiles, can maintain and improve the strength of the car body even when the plate thickness is made thin. As a core trading company of the JFE Group, we are a key member of the JFE Group.
As a core trading company of the JFE Group, we have synchronized our strategy with that of JFE Steel and are focusing on strengthening the supply chain for high-tensile steel materials.

Contributing to a recycling-oriented society by promoting the use of scrap

In recent years, Metal Recyclinghas been attracting more attention because CO₂ emissions can be reduced not only by the electric furnace method, which emits one-fourth as much CO₂ as the blast furnace method, but also by increasing the amount of CO₂ used in the blast furnace method. The JFE Group is taking advantage of the global increase in scrap generation as an opportunity to promote the Group's electric furnace steel production and to capture business opportunities by utilizing its engineering technologies to implement state-of-the-art energy-saving electric furnace facilities in an integrated manner. JFE Group is also taking advantage of business opportunities by leveraging its engineering technologies to implement state-of-the-art energy-saving electric furnace facilities. Furthermore, the Group is also developing scrap utilization technologies in the blast furnace process to expand the use of scrap in the steel industry as a whole.
In expanding the use of scrap, JFE Shoji Corporationhandles Metal Recyclingand aluminum scrap as a recycling business, contributing to the expansion of a recycling-oriented society by promoting the use of scrap. In particular, Metal Recyclingexports to Asian countries and conducts foreign transactions in addition to domestic transactions, and contributes to the expansion and efficiency of logistics by realizing timely shipments of small lots through its container loading system.

Environmental Management Activities

JFE Shoji Corporation is routinely promoting activities such as reduction of electricity consumption in offices,
paper reduction, and Toru waste sorting and management as part of its energy reduction efforts.

ISO 14001 Certification Registration

In 2000, Tokyo, Nagoya, and Osaka obtained ISO 14001 certification. Since then, all domestic branches and sales offices, as well as 24 domestic group companies, including 10 manufacturing-related companies, have acquired certification, and JFE Shoji Corporationwe continue to operate an environmental management system that integrates the entire group. Overseas, 12 Group manufacturing companies have obtained ISO 14001 certification.

Environmental Education

JFE Shoji Corporation As part of the Group's environmental education, ISO 14001 activities include general environmental education for all employees and training for internal environmental auditors, both of which are held once a year. Toru also implements measures to raise awareness of environment-related laws by ensuring that all Group companies are aware of legal compliance through the use of a checklist for compliance with environment-related laws and by disseminating information on revisions to laws.

Environmental Risk Management

As part of our efforts to identify and reduce environmental risks, we conduct annual self-checks using an environment-related law compliance checklist to confirm items that must be observed. Group companies that have acquired ISO 14001 certification conduct internal environmental audits once a year, and those that have not yet acquired ISO 14001 certification conduct environmental audits once every three years to check the status of legal compliance at their workplaces.

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