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Implementing New Frontier 21 We aim to be a trustworthy lifestyle-enhancement services group Offering new travel styles, Hiking from stations Forestation P. 3 9 P.39 Using renewable energy sources Station Renaissance program P.7, P.31 PP.13-14 Deploying intermodal transportation Safety measures to reduce CO2 emissions P.11, PP.43-44 PP.9-10, PP.29-30 Providing barrier-free access Introducing energy-efficient railcars PP.13-14, P.46 PP.5-6, PP.27-28 Using IT to provide information Developing the NE Train, hybrid railcars, etc. P.12 P.32 Offering childcare at stations Promoting IC card (Suica) use P. 4 0 P.12 , P.33 Promoting recycling Strengthening relationships with local communities P. 8, PP.33-35 PP.13-14, PP.40-42 TOPIC CONTENTS Expanding "green purchasing" policies We aim to be a trustworthy lifestyle-enhancement services group p.1 P. 3 5 Our main duty is to provide railway services through sustainable manner p.3 What is environmentally friendly transportation? p.5 Improving customer service Where does the electricity for our trains come from? p.7 PP.12-14, PP.45-46 What happens to used train tickets and other refuse? p.8 Motivating staff at the workplace What is an environmentally friendly transportation combination? p.9 PP.47-48 How is customer safety ensured? p.11 What are new convenient customer services? p.12 Building a user-friendly railway What is a pleasant, user-friendly station? p.13 Raising shareholder value PP.11-14, PP.43-46 Further information p.15 PP.49-50 1 2 JR EAST GROUP JR EAST GROUP Our main duty is to provide railway services through sustainable manner The aim of the railway business is to enrich test stage, is powered by a generator driven by its the lives of people throughout the country diesel engine, and the surplus electricity is available to charge an onboard battery. The NE engine consumes Nonaka: When you took over as president of the 20% less fuel than conventional train engines. company, you must have had several areas you wanted Some people think addressing environmental issues to focus on. What responsibility does the railway doesn’t pay, but I believe developing more energy- business have in terms of serving society as a whole? efficient technology will enhance our technological Otsuka: The purpose of railway business is to enrich capability. The process of developing environmentally the lives of people throughout the country. Our friendly technologies prompts our engineers to business principle is to provide customers with a high internalize "green values." Such a mindset provides confidence from the general public will survive. Since Providing railway service is not just laying tracks and level of satisfaction. In other words, our primary goal increased job satisfaction, which further motivates sound management practices are essential to building stringing electric wires to run trains. It is a very is building relationships with them in their work. We must public trust, we have conducted a detailed review of complicated system. Operations, maintenance, individual customers throughout the proactively respond to our operation and are implementing the appropriate communications, marketing, and customer service country, and meeting their various environmental issues, as this will changes especially when the business goes well. must be simultaneously coordinated into a seamless needs. Two years ago, we greatly expand our potential. Companies also need autonomy and independence. whole. The Shinkansen (Bullet Train) is a good established an Internet-based We are determined to create a Yukichi Fukuzawa, a noted Japanese pundit, states example of the system being used to realize safe high- customer feedback system. railway company with highly "There will be no independence of a country without speed transportation. In accord with the long held Although we have received some motivated employees who provide each individual’s independence," in his book Gakumon Japanese standard of perfect punctuality and zero strongly-worded suggestions for the top-quality service our no Susume (Learned Advice). I think this applies to all delays, the system operates successfully because improvement, we do not see such customers deserve and demand. Japanese companies today. Without a sense of every staff member in each division executes his or criticism as an attack, but as an The more people ride trains, the independence, employees are too reliant on each other her duties flawlessly. That is why there are so few indication of where we can improve. more we benefit from the to provide sound management. Likewise, if each railway accidents in Japan. In this way, I believe the We consider the Internet-based environmentally friendly corporation depends on the nation, the nation itself Japanese railway system leads the world. customer feedback system to be part characteristics of train transport — may be ruined. We aim to continue our efforts to gain MrMr.. Mutsutake OtsukaOtsuka,, of our marketing program. Since our PrPresident,esident, eventually leading to the the respect from all our stakeholders while maintaining Accomplishing our responsibilities East Japan Railway Company customers are essential partners in minimization of environmental autonomy and independence. for the children of the future our business, their immediate and honest response impact by society as a whole. To achieve this goal, we encourages us a lot. will pursue our mission to provide safe, punctual Disseminating Japan-style railway Nonaka: Finally, how do you hope to affect society transportation and deliver convenient, comfortable systems to other countries over the next 20 to 30 years to leave a legacy for Proactively responding to services that meet a variety of customer needs. I today's children — the torchbearers of the next environmental issues leads to believe such efforts increase the desirability of our Nonaka: What are generation? potential corporate growth railway. some of your goals Otsuka: First of all, I would like to bequeath a beautiful for the near future? natural environment. I also want to develop a society Nonaka: The people of the 21st Century value socially Developing and maintaining trust Otsuka: I would like in which those children can be properly educated and responsible corporate behavior. How do you address relationships with our stakeholders to disseminate Japan- pursue their dreams. JR East Group is actively this movement? style railway systems involved in our Children's Railway Association. We Otsuka: Although adverse effect of railways to the Nonaka: You have an enormous number of in other countries. provide opportunities for elementary school children environment is less than that of automobiles or stakeholders — including customers and shareholders. Although the sunset and other young people to visit railroad facilities or aircrafts, we still consume a huge amount of energy, What are your thoughts on the company's relationship theory had been participate in clean-up activities at stations. We want causing environmental impact. Therefore, we have to them? widely held in Europe, children to understand that freedom is always initiated a range of conservation measures including Otsuka: New Frontier 21, JR East Group's medium- modern technology is accompanied by responsibility, and such programs reduction of CO2 emissions and other waste, term business plan, specifies our lines of action in making safe, high- teach them the social awareness needed to become improving recycling rates, noise reduction, and areas such as customer satisfaction, responsible speed rail transport contributing members of society. We must also set a forestation. We have also set numerical goals to corporate citizenship, employee job satisfaction, and Ms. TTomoyoomoyo NonakaNonaka,, possible, and good example for young people by behaving as JourJournalistnalist measure our progress. For example, we aim to reduce shareholder expectations. All of these are important to therefore, I believe socially responsible corporate citizens ourselves. CO2 emissions linked to global warming, to 80% of us since they directly affect the relationships with our that train transport will regain prominence in the 21st 1990 levels by FY 2005. stakeholders. Century. Environmental concerns triggered the Nonaka: We look forward to seeing the future results Our newly developed NE (New Energy) hybrid train Many companies have impaired public confidence resurgence of rail transport in Europe. We believe rail of your efforts and those of JR East Group toward reduces environmental load. This railcar, still in the since the 1990’s. Only firms that earn the trust and transport will expand in Asia as well. realizing a sustainable society. 3 4 JR EAST GROUP JR EAST GROUP Energy-efficient railcars ■Introduction of Energy-efficient railcars account for 68% of our fleet energy-efficient railcars Conventional railcars JR East continues to introduce energy-efficient railcars such as the E231 and E205. The number of energy-efficient railcars is steadily increasing, '05 Target value : 80％ reaching 68% by the end of FY 2002. p.28 68％ What is environmentally friendly transportation? '02 8,348 3,926 63％ Life cycle of rolling stock '01 7,842 4,527 59％ The reduction of energy consumption in operation '00 7,222 5,059 has a significant effect on environmental 54％ conservation, but we need to extend this effort to Trains emit the lowest level of CO2 ■CO2 emission levels by transportation type '99 6,663 5,563 every stage — from development and designing to 51％ Railway transportation is quite energy efficient. manufacturing and refuse disposal. Taking '98 6,242 5,952 When we compare fuel and energy consumed to JR East 14 advantage of our business resources at each stage, CO2 emissions emitted, we see trains generate JR East continues to work toward increased energy- 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 approximately one-tenth of that of automobiles (see Railways 17 efficiency, reuse, and recycling throughout the entire （Unit : railcars） graph at right).

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