JR East Group CSR Report 2016 Aiming for a Sustainable Society JR EAST GROUP CSR REPORT 2016 CONTENTS Society Group Philosophy/Basic Principles/ Ⅱ-2 Relationship with Society …………………………66 Corporate Profile/Editorial Policy …………………………… 3 Ⅱ-2-1 Life-style Business of JR East ………………………66 Top Message …………………………………………………… 4 Ⅱ-2-2 Strengthening Collaboration JR East Group Management Vision V with Communities and Local Revitalization …… 66 ― Ever Onward ― …………………………………………… 6 Ⅱ-2-3 Rediscover the Region Project ……………………68 GRI Content Index (General Standard Disclosures) …10 Special For Regional Revitalization Topic Ⅲ Materiality (material aspects) and 〜"Oyatsu TIMES"〜 …………………………………70 Key CSR Activities of the JR East Group …………………12 Ⅱ-2-4 Childcare Support Services HAPPY CHILD PROJECT …72 GRI Content Index (Specific Standard Disclosures) …… 14 Ⅱ-2-5 Development of COTONIOR ………………………73 JR East Stakeholders …………………………………………15 Ⅱ-2-6 Cultural Activities ……………………………………73 Safety Ⅱ-2-7 Developing Our Business around the World …74 Ⅰ-1 Our fundamental concept of safety ………………17 Ⅰ-1-1 General principles of Safety ………………………17 Ⅱ-3 Relationship with Employees ……………………80 Ⅰ-1-2 Group Safety Plan 2018 ……………………………18 Ⅱ-3-1 Demonstrating the power of human resources ……80 Ⅰ-1-3 Group Safety Plan 2018 4pillars Ⅱ-3-2 Promotion of Diversity Management ……………81 ① Ingraining the cultures of safety ……………19 Ⅱ-3-3 To Improve Working Environment ……………………85 Ⅰ-1-4 Group Safety Plan 2018 4pillars Special Employee Development Initiatives ………………86 Topic Ⅳ ② Improving safety management ……………20 Environment Ⅰ-1-5 Group Safety Plan 2018 4pillars Ⅲ-1 Basic Concept for Ecology ③ Steadily reducing risk …………………………22 Promotional Activities ………………………………89 Ⅰ-1-6 Group Safety Plan 2018 4pillars ④ Priority improvement plan for safety equipment …23 Ⅲ-2 Environmental goal management and progress to date ………………………………90 Ⅰ-2 JR East's safety management organization ……24 Ⅲ-2-1 JR East Group's environmental impact …………90 Ⅰ-2-1 Safety management regulations …………………24 Ⅲ-2-2 Environmental goal …………………………………91 Ⅰ-2-2 Railway Safety Promotion Committee …………24 Ⅲ-2-3 Environmental accounting Ⅰ-2-3 Safety Planning Department at Head Office and management indicators ………………………93 and Safety Planning Office at branch offices, etc. … 25 Ⅲ-2-4 Measures to Prevent Global Warming …………94 Ⅰ-2-4 Rules for reporting accidents and incidents …………25 Special Opening Up a New Era through Topic Ⅴ Technological Innovation ……………………… 102 Ⅰ-3 Current safety record of JR East …………………26 Ⅲ-2-5 Measures to create a sound material cycle …… 104 Ⅰ-3-1 Railway accidents ……………………………………26 Ⅰ-3-2 Incidents ………………………………………………27 Ⅲ-3 Other activities related to the environment …108 Ⅰ-3-3 Transport disorders …………………………………28 Ⅲ-3-1 Biodiversity ………………………………………… 108 Ⅰ-3-4 Current state of employee accidents ……………29 Ⅲ-3-2 Basic thoughts on noise reduction …………… 110 Ⅲ-3-3 Improvement of the Environment along Railway Lines … 111 Ⅰ-4 Efforts to further improve safety levels …………30 Ⅲ-3-4 Chemical substance management …………… 112 Ⅰ-4-1 Investment in safety equipment …………………30 Ⅲ-3-5 Environmental Communication ……………… 113 Ⅰ-4-2 Measures to prevent train collisions ……………31 Ⅲ-3-6 Environmental Management Structure ……… 115 Ⅰ-4-3 Preparedness against natural disaster …………35 CSR Ⅰ-4-4 Safety measures for customers on Ⅳ Others ……………………………………………… 117 platforms and measures to prevent accidents Ⅳ-1 CSR Management ………………………………… 117 at level crossings in collaboration Ⅳ-2 Compliance ………………………………………… 119 with local communities ……………………………43 Ⅳ-3 Independent Assurance Report (website version) …… 122 Ⅰ-4-5 Fostering safety-oriented personnel ……………47 Ⅳ-4 Summary from General Manager Special Aiming to "Raise Safe and Topic Ⅰ of the Management Planning Department … 123 Reliable Transport to the Next Level" …………52 Society History of JR East Group's environmental and social activities …124 Ⅱ-1 Relationship with Customers ……………………54 Service Area ………………………………………………… 125 Ⅱ-1-1 Our fundamental concept of service quality …54 Businesses Outline of the JR East Group …………… 126 Ⅱ-1-2 Medium-term Vision for Service Quality Reforms 2017 …54 Management Information ………………………………… 128 Ⅱ-1-3 Increase mutual communication Consolidated Financial Statements for Fiscal 2016 …… 129 with customer feedback as the starting point …54 Organization ………………………………………………… 130 Ⅱ-1-4 Develop personnel and organizations that proactively Personnel-related data …………………………………… 131 think and act from the customer's perspective ………56 Ⅱ-1-5 Provide reliable transportation services ………56 Note: External Assurance on environmental performance and Ⅱ-1-6 Enhance information provision environmental accounting data during transportation service disruptions ………57 KPMG AZSA Sustainability Co., Ltd. has been engaged to Ⅱ-1-7 Railway services customers can use confidently … 58 provide external assurance on a set of selected environmental Ⅱ-1-8 Realize railway services customers can use comfortably … 60 performance and environmental accounting indicators so that the Ⅱ-1-9 Provide impressive customer service ……………61 reliability of the data is ensured. The particular indicators that are Ⅱ-1-10 Suica Business …………………………………………61 assured are marked with a ☆ for clarity. Ⅱ-1-11 Efforts on Services for Overseas Visitors ………64 The JR East Group conducts business pursuant to standards Special Promoting Strategy and rules such as ISO26000 and the Charter of Corporate Topic Ⅱ to Attract Foreign Visitors …………………………65 Behavior established by Keidanren (Japan Business Federation). 2 JR EAST GROUP CSR REPORT 2016 Group Philosophy The JR East Group aims to contribute to the growth and prosperity of the East Japan area by providing quality leading-edge services, with train station and railway businesses at its core, to customers and communities. We will continue to embrace the challenge of pursuing "extreme safety levels" and service quality reforms. Through technological innovation and globalization, we will strive to attain goals such as nurturing personnel with an expansive perspective, spurring the advancement of railways, and making line-side areas more attractive and convenient. To this end, JR East will continue to rigorously pursue its unlimited potential. We aim to grow continuously while meeting our social responsibilities as a Trusted Life-Style Service Creating Group. Basic Principles 1. Together with customers and communities We will put our hearts into providing good service and living up to customers' and communities' expectations. 2. Enhancing safety and quality We will aim to enhance safe and reliable transportation services and service quality. 3. Pursuing unlimited potential With an expansive perspective and based on our calling, we will pursue the JR East Group's unlimited potential. Corporate Profile Reference G4 Sustainability Reporting Guidelines Corporate name East Japan Railway Company guidelines [Global Reporting Initiative] Address 2-2, Yoyogi 2-chome, Shibuya-ku, Tokyo, Japan Established April 1, 1987 Environmental Reporting Guidelines 2012 Capital 200 billion yen [Japan Ministry of the Environment] Number of employees 57,576 (as of April 1, 2016) References Environmental Accounting Guidelines 2005 [Japan Ministry of the Environment] Editorial Policy This report basically covers our activities from April 1, 2015 to March 31, 2016, although some events The CSR Report 2016 sets forth various initiatives being taken in the Reporting presented here happened earlier or in the period JR East Japan Group. It is published for the purpose of providing period between the end of March 2016 and the publication of an accurate and simple description of these initiatives as well as this report in October 2016. promoting communication with our diverse stakeholders. This report presents activities and progress in line with the JR East Group Management Vision V- Ever Onward. While our desire remains to offer as much information as possible East Japan Railway Company related to the safety, society, and environment, the report itself JR East Group (consolidated subsidiaries (67companies)) focuses in particular on areas where there have been notable Economic report: JR East, consolidated subsidiaries, changes. Boundary of equity method affiliates (5 companies) For more information on the overall activities of the JR East Group, reporting please go to our website. Environment report: JR East, consolidated subsidiaries Social report: JR East, consolidated subsidiaries Subsidiaries are listed on p.127. This report has been written in accordance with the Core option of GRI's G4 Sustainability Reporting Guidelines. Furthermore, this report serves as a safety report required to be Figures in Totals may not match the sum of individual figures due publicly announced by the Railway Business Act. this report to rounding. 3 Top Message JR EAST GROUP CSR REPORT 2016 Thriving with Communities, Growing Globally In October 2012, we formulated our medium-term management plan called the "JR East Group Management Vision V−Ever Onward." Within this vision, we outlined our fundamental aspiration of "Thriving with Communities, Growing Globally." We will continue our endeavors to fulfill our Eternal Mission, as defined by the expectations of customers and indeed local communities. At the same time, we will remain steadfast in our daily mission to realize the "Unlimited potential" of our railways. Eternal Mission Our Eternal Mission is very straightforward. It involves contributing to the development of communities through the provision of