Information disclosure based on the TCFD recommendations
In recent years, global warming has changed the natural environment and society's awareness of it
has rapidly changed. As a result, in the environment surrounding our life, there are many challenges
that must be overcome for the establishment of a sustainable society．
Amid these global changes, we at the NIKKON Holdings Group have continued to proactively
address environmental problems and various other social issues through logistics services, under ourBasic Philosophy of leading the way in creating joy, value, and an environment that can be shared,
aiming to build a sustainable society together with all of our stakeholders. Moving forward, we will
ensure appropriate climate-related information disclosure based on the TCFD Recommendations.

■ Governance
The Group prioritizes the creation of a sustainable society. It has established a governance system todeal with global environmental issues caused by climate change and many other social issues. The
governance is supervised by the Board of Directors.
【Initiatives related to climate change】
To develop an institutional capacity to deal with issues, the Group has built a system under which thedirectors directly supervise environmental, social and governance (ESG) practices, formulate
policies promptly and give instructions. Under the system, the Group promotes effective activities.
The Group also cooperates with a wide range of stakeholders and works to actively disclose
information and enhance transparency.
【System enabling Board of Directors supervision】
The Company has established a Sustainability Committee chaired by an outside director as anadvisory body to the Board of Directors. The Sustainability Committee regularly reports onsustainability matters, including climate change issues. Important issues are discussed from multiple
perspectives at committee meetings with directors present. Following instructions from the Board ofDirectors, the Sustainability Committee formulates policies promptly and works to enhance longterm corporate value.
The ESG Promotion Office, which is responsible for the implementation of specific actions,cooperates with departments of the Company and Group companies to draw up Group-widestrategies related to ESG, examine and develop sustainability strategies, including measures tomitigate climate change, and recommend these strategies to the Sustainability Committee. The officealso sets themes and important issues to be dealt with through corporate activities and takes concrete
steps to address climate change issues and human rights issues and make improvements.

【Diagram of the sustainability framework】

■ Strategies
We identify climate change risks and opportunities and consider measures to reduce risk andincrease opportunities.
Category
Transition
risks

Physical risks

Opportunities

TypeGovernment
policy, laws
andregulations
Technology

Expected risks
andopportunities
Emissioncontrol
Delays intechnology

MarketChanges incustomer needs

Reputation

Impact onfunding andshare price

Acute

Occurrence of anatural disaster

Chronic

Temperature rise

Resource
efficiency
improvement

Improvement oftransportation
efficiency andreduction of
CO2 emissions
Servicedevelopment

Products andservices

Impact on business
Increased costs resulting from theintroduction of environmentallyfriendly vehicles and the risk ofpenalties
Delays in the introduction of lowcarbon vehicles due to delays inautomakers' development of large
low-carbon trucks
Decrease in market share attributed
to delays in measures to reduce
CO2 emissions
Difficulty in procuring funds fromfinancial institutions and a declineof the share price due to the loss ofinvestors resulting from theevaluation that our initiatives toreduce CO2 emissions areinsufficient
Suspension of logistics services
due to road damage, the floodingof warehouses and other damage
caused by natural disasters
Deterioration of the work
environment due to a rise inaverage temperature
Reduced energy cost, etc.

New business opportunities createdby developing transportation
services with lower CO2 emissions

Main response
measures

Receiving fair
pricesCollecting
information about
automakers'
development progress
Formulating andpromoting a mediumto long-term carbon
reduction plan
Improving
information
disclosure

Driving BCP basedon hazard maps, etc.
Improving work
environment
Promoting trunk
transport using 21mdouble articulated
trucksPromoting the modal
shift, joint delivery
and the proposal oftransportation jigs

■ Risk management
We have established a Sustainability Committee to addresses future climate change risks. Thus, wehave established a framework in which important issues are submitted or reported to the Board ofDirectors and all group companies implement measures after being informed of their content
following the approval of the Board of Directors．

【Process of identifying and evaluating climate-related risks】
The Sustainability Committee orders the ESG Promotion Office, which is responsible for theimplementation of specific actions, to identify and evaluate climate-related risks and opportunities
and receives reports from it. The ESG Promotion Office identifies and evaluates climate-related risks
and opportunities by listing social issues through discussions with the ESG Working Group, whose
formation includes the eight core companies, clarifying their relevance to the Nikkon Holding
Group's business activities and the expectations of our stakeholders and prioritizing them. Thesetasks are implemented leveraging advice from experts from related financial institutions, etc.
【Process of managing climate-related risks】
The ESG Promotion Office is in charge of drawing up group-wide strategies related to ESG,
including climate change risks. It implements the Group's initiatives for addressing climate-relatedrisks and reports the status of the initiatives to the Sustainability Committee.
The Sustainability Committee meets every quarter, in principle, and whenever necessary, and theyreport and make proposals to the Board of Directors and also provide guidance to each division.
■ Metrics and targets
The Group has set greenhouse gas (Scope 1, Scope 2) emissions reduction targets to contribute toachieving carbon neutrality. To achieve the targets, the Group will reduce energy consumption andalso take other steps, including introducing green energy.
【CO2 emissions (scope 1 and 2)】

CO2 (Same below)
emissions reduction targets
CO2 emissions (t)2023/32026/6

FY2030FY2050—

▲ 3％

▲ 30％

▲ 100％

160,000

155,200

112,0000