Sustainability Report20 2 3Message from management .......... 1
Charter of Corporate Behavior ...... 2
Our basic perspective on
sustainability ...................................... 4
Environment ....................................... 6
Society ................................................. 13
Gover nance ....................................... 28
Materiality items (priorities) ............ 35
Certifications ...................................... 37

Message from management

Realizing our corporate philosophy and fulfilling
our mission to move closer toward a sustainable society
In 2017, we marked the 150th anniversary of our founding inever-changing business environment, we will take on

1867, the same year in which the Port of Kobe opened. At

challenges one step ahead of today’s needs while striving tothat time, when few ports in Japan were open to the outsideenhance our corporate value and the stability of ourworld, we got our start as a cargo handling organization

management, with the ultimate goal of helping to build an

exclusively serving the agency that supervised export/importaffluent society. We believe our efforts to implement thiscargo—in short, the agency performing the equivalent ofphilosophy will in itself promote the sustainability of both our

today’s customs operations. Today, we’ve grown into an

Company and society. In putting this philosophy into practice,integrated logistics firm that handles operations ranging from

it is vital that we fulfill our responsibilities to diverse

warehouse storage to land transport, heavy cargo transport,

stakeholders and earn their understanding and cooperation.

and container terminal operations. We’re active in major ports

Kamigumi will maintain its course moving forward while

across Japan as the nation’s leading harbor transport firm.

stressing the fundamentals: providing rewarding work in which

Japan is an island nation surrounded by water in every

our employees can demonstrate their individual abilities in

direction. Naturally enough, sea transport plays a key role insafety and with peace of mind; delivering services that satisfy

Japan’s international trade, accounting for 99.7% of the

our customers; building relations of trust with our businessnation’s export/import cargo. As a company involved

partners; maintaining timely and appropriate disclosure andin a sector of such highly public nature, we seek to maintainstable dividends to shareholders; fulfilling our duties tothe important social infrastructure of harbor transport. The

regulators; building strong ties to local communities; andstability and progress of our business activities contribute tominimizing our environmental impact.

the stability and progress of Japan’s logistics infrastructure.

Yoshihiro Fukai

Our Corporate Philosophy states: By keeping up with

President & Representative Director

the times and carefully responding to the demands of an1Charter of Corporate Behavior
Principle 1.
Enhancing Customers Satisfaction

Principle 4.
Creating an Open and Active Corporate Culture

We will gain customers satisfaction, reliance and also topromote social contribution by offering quality of distribution
services based on experience and know-how accumulated
since our establishment.

We respect human rights and will not commit or permit
discrimination in and outside the company: on the grounds ofgender, creed, physical conditions and social status. We will
also strive to create a positive work environment where
employees can feel comfortable and find fulfillment.

Guidelines
Guidelines• As a professional of total logistics partner, We will provide tocustomers diversifying needs with our original services, andwith professional spirit.

• Create a work environment where diverse employees candemonstrate their abilities to the fullest.
• Improve the occupational health and safety system toeradicate industrial accidents.
• Respect the personality of employees and support theircareer and skills development.
• Recognizing that the existence of a company is supported
by its employees, respect individual employees as fellow
members working together, without discriminating on the
grounds of gender, age, position, birth origin, and otherfactors.

Principle 2.
Fair and Transparent Business Practices
In our business, we will engage in fair, transparent and freecompetition and proper business transactions.

Guidelines• We do not engage in collusive relationships with antisocial
forces or with any particular organizations.
• Conduct fair business activities in compliance with allapplicable laws and regulations.
• Conduct fair transactions, abiding by all applicable laws andregulations including the Antimonopoly Act and the Act
against Delay in Payment of Subcontract Proceeds.
• Do not engage in collusive bidding.
• Properly manage confidential information of the Group as
well as customer information acquired through businessactivities.
• Conduct transactions with clients on an equal footing,based on the contract agreed upon.

Principle 5.
Promotion of Environmental Management
Recognizing that addressing environmental problems isessential to corporate existence and activities, we will not only
observe environmental laws, regulations and standards in all
aspects of our business activities, but also actively andvoluntarily engage in activities to protect the environment.

Guidelines• Set environmental targets for the Group and implement
group-wide initiatives to reduce the environmental impact ofour business activities, and continuously improve
environmental management through periodical reviews of
the Group’s environmental performance.
• Promote effective use of limited resources by atively
engaging in energy-saving, resource-saving, recycling,reuse, and waste reduction activities.
• Offer environmentally sound distribution services, as a highly
professional total distribution service provider.
• Strive to reduce, as much as possible, the environmental
impacts of the use of automobiles and business activities
including the operation of warehouses and terminals.
• Increase employee knowledge and awareness ofenvironmental conservation through environmental
education and publicity activities.

Principle 3.
Communication Activities
We will actively communicate with our stakeholders anddisclose information timely and in appropriate way.

Guidelines• Promote communication with stakeholders through generalshareholders’ meetings, and public relations and investor
relations activities.
• Achieve highly transparent management through timely andaccurate information disclosure.
• Fulfill accountability to stakeholders by providing adequate
information to make them understand about corporate
activities.

2

Principle 6.
Contribution to the Local Community• Encourage employees working in overseas locations not
only to learn local languages, but also to deepen theirunderstanding of local culture and customs.

We will actively engage in social contribution activities tocoexist harmoniously with the local communities, as a well
corporate citizen.

Principle 9.
Implementation of the Spirit of the Charter

Guidelines

Top management of the Kamigumi Group companies must
recognizes that it is their roles to take the lead in ensuring that
all affiliated companies and business partners are fully awareof and understand this Charter. Furthermore, top management
should always try to keep abreast of the opinions of thoseboth inside and outside the corporation and establish aneffective system throughout the corporation to ensure
thorough implementation of the Charter.

• As a community-based company, actively participate incommunity events and activities to contribute to the local
community.
• Respect the culture and norms of the community in which
we operate and conduct business activities that willcontribute to the development of the community, taking into
consideration its specific circumstances.

Guidelines

Principle 7.
Response to Antisocial Forces• Top management should display leadership to the fullest
possible extent, clearly lay out the management philosophy
and codes of conduct, and ensure thorough implementationof the philosophy and codes within the Group.
• From the point of risk management, top management must
set up internal systems to prevent an emergency situationfrom occurring and to respond effectively in the event of an
emergency situation, and review and modify these systems
as appropriate.

We shall resolutely confront antisocial forces and organizations
that threaten the order and security of civil society.

Guidelines• Ensure the three principles on antisocial forces (not to fear,
not to give money, and not to use) are fully understood andimplemented throughout the Group.
• Establish an internal system to systematically deal with
antisocial forces.

Principle 10.
Responsibility of Top Management

Principle 8.
Cooperation with International Society

In the case that the Charter is violated, top management of
the Group companies should demonstrate, both internally andexternally, their determination to resolve the problem, identify
the cause and take measures to prevent the recurrence ofsimilar violations in the future. At the same time, top management
should promptly make full public disclosure, explain fully what has
occurred, and, upon clarifying the relevant authority andresponsibility, impose strict disciplinary action against those
held responsible, including top management itself.

In international business activities, we not only comply withinternational rules and the laws and regulations of thecountries and regions where we operate, but also conductbusiness respecting local culture and customs, so as tostrengthen cooperation and build mutual trust with theinternational community.

Guidelines

Guidelines• When an emergency arises, promptly conduct aninvestigation under the leadership of top management,
identify the facts and causes, and implement appropriate
policies and measures as a responsible corporation to deal
with the situation.
• Top management should give the public as promptly as
possible an explanation of the facts, the policies adopted toaddress the matter, and the measures needed taken toprevent a recurrence.

• Promote international business activities, by fully
understanding and complying with the international rules aswell as the laws and regulations of the countries and regions
where our business operations are based.
• Check overseas business sites through internal audit by ourinternal audit team to determine whether their management
strategies and business plans are in conformity with theGroup’s management policy, so as to enhance thetransparency of the management.

3

Our basic perspective on sustainability
Japan depends on imports for a significant share of the goods, energy, and industrial raw materials needed for food, clothing,and shelter. Japan is also a major power in international trade, with various major export industries including motor vehicles andother industrial products. Japan’s total international trade is equivalent to about 1.7 times its national budget (general account).
Since 99.7% of its export/import cargo is transported by sea, activities such as harbor transport and warehouse storage for suchcargo are key infrastructures in livelihoods and industry.
As a leading player in port logistics and accounting for the highest share of cargo handled at Japan’s six largest ports, ourmission is to maintain the continuity and progress of our businesses to maintain the delivery of the goods society needs. Key
factors in doing so include building stronger ties to shareholders, customers, partner companies, employees, local communities,
and other stakeholders and strengthening our consideration for the environment, legal and regulatory compliance, safety, andgovernance. We aim to pursue creation of new value capable of further enriching society, keeping in mind the sustainability ofboth society and the Company at all times.

Our sustainability initiatives involve putting into practice our Charter of Corporate Behavior.
Charter of Corporate Behavior

Related items

5. Promoting Environmental Management
Recognizing that addressing environmental problems isessential to corporate existence and activities, inaddition to complying with all applicable environmental
laws, regulations, and standards in our businessactivities, we will take a proactive and voluntary role inactivities that protect the environment.

ENVIRONMENT• Environmental management principles• Environmental philosophy •Environmental policies• Perspective on preventing environmental pollution• Climate change• Perspective on climate change •Improving resilience• Total energy and carbon dioxide (CO2) emissions related to ourdomestic business• Managing CFCs
• Promoting eco-friendly driving• Adopting energy-conserving and low pollutant vehicles• Energy-conservation activities in offices, warehouses, and otherfacilities• Switching to LED lighting• Reducing CO2 emissions through the solar power business• Effective resource use• Perspective on reducing waste emissions• Reducing waste generation and ensuring appropriate waste
treatment• Water conservation initiatives• Disclosure based on TCFD recommendations• Provision of optimal logistics solutions

1. Enhancing Customer Satisfaction
We will win the satisfaction and trust of our customers
and promote social contributions by offering quality
distribution services based on the experience andknow-how gathered since our establishment.

• Communication with shareholders and investors

3. Communication Activities
We will communicate actively with our stakeholders anddisclose information in timely and appropriate ways.

SOCIETY

4. Creating an Open and Active Corporate
CultureOur perspective is grounded in respect for humanrights. We will not engage in or permit discrimination inor outside the company on the grounds of gender,
creed, physical condition, or social status. We will also
strive to create positive work environments in which
employees can work in comfort and seek fulfillment.

4• Transport safety •Basic policy on transport safety• Transport safety management rules• General Safety Manager/safety management organizational
structure• Gaining G-Mark certification as an outstanding safety business• Implementing safe-driving training• Our mission as a logistics business• Reducing CO2 emissions through third-party logistics (3PL)• Drawing on various modes of transport to contribute tocustomer business continuity planning (BCP)• Respect for human rights• Employing those with disabilities• Promoting women in the workplace• Encouraging employees to take childcare leave

Charter of Corporate Behavior

Related items• Human rights policy• Dealing with bullying and harassment cases • Children’s rights• Preventing child labor and forced labor • Employment and labor• Equal pay for equal work/minimum wage
• Dialogue between labor and management• Managing working hours to promote work-life balance• Training to improve employee skills• Local employment and local sourcing• Health and safety • Occupational health and safety• Occupational health and safety policy and activity structure

6. Contribution to Local Communities
We will take an active role in social contribution activitiest o e n s u re h a r m o n i o u s c o e x i s t e n c e w i t h l o c a lcommunities in our role as good corporate citizens.

• Coexistence with local communities• Sea work experience (Kodomo Waku)• Mori no Sewanin forestry activities• Cleanup activities • Participation in community events• Social contributions • Sponsorship of social contribution activities

8. Cooperation with International Society
SOCIETY

In our international business activities, in addition to fullcompliance with international rules and the laws andregulations of the countries and regions in which we
operate, we conduct business with all due respect for
local cultures and customs, with the ultimate goal ofstrengthening cooperative ties and building mutual trust
within the international community.

2. Fair and Transparent Business Practices• Building equitable trading relationships

We will engage in fair, transparent and free competitionand proper business transactions.

• Basic stance on exclusion of antisocial forces

7. Response to Antisocial Forces
We are committed to resolutely confronting antisocial
forces and organizations that threaten the order andsecurity of civil society.

9. Implementing the Spirit of the Charter

GOVERNANCE

Top management of Kamigumi Group companies must
recognize its leadership role in ensuring that all affiliatedcompanies and business partners are fully aware of andunderstand this Charter. Additionally, top management
must seek to keep abreast of the opinions of those both
inside and outside the corporation at all times andrevise the Charter accordingly, as well as establish
effective systems throughout the Group and thoroughly
implement the Charter’s provisions.

10. Responsibility of Top Management
In the event of violations of the Charter, the top
management of Group companies must demonstrate,
both internally and externally, their determination toresolve the problem, identify the cause, and takemeasures to prevent the recurrence of similar violations.
At the same time, top management must make promptand full public disclosure of the incident, thoroughly
explain the incident, and, upon clarifying the relevant
authority and responsibility, take strict disciplinary action
against those held responsible, including top
management itself.

5• Basic concept of corporate governance• Basic policy on internal controls systems• Appointing external Directors and Audit & Supervisory Board
members• Composition and meetings of the Board of Directors• Compliance structures and state of operations• Promoting compliance risk management activities• Anti-corruption policy and initiatives • Export/import controls• Operation and widespread awareness of the internal
whistleblower system• Internal audits • Business continuity planning (BCP) initiatives• Responsible tax payment • Fines for environmental violations• Information security initiatives

ENVIRONMENTSOCIETY

GOVERNANCEENVIRONMENT
We make efforts to optimize our environmental management and to minimize the environmental impact of our business activities.
Period covered by report: April 1, 2022 – March 31, 2023

Environmental
management

Climate change

Preventing global
warming

7 Environmental philosophy

7 Perspective on climate change

8Perspective on preventing global warming

7 Environmental policies

7 Improving resilience8

Total energy and carbon dioxide (CO2)emissions related to our domestic business8

Managing CFCs

8

Promoting eco-friendly driving

9

Adopting energy conserving and low
pollutant vehicles

9

Energy conservation activities in offices,
warehouses, and other facilities

9

Switching to LED lighting

9

Reducing CO2 emissions through the solar
power business

7 Perspective on preventing environmental
pollution

Effective resource use
10 Perspective on reducing waste emissions
10 Reducing waste generation andensuring appropriate waste treatment

Disclosure based on
TCFD recommendations
11 Disclosure based on TCFD recommendations

10 Water conservation initiatives

6

ENVIRONMENTSOCIETY

GOVERNANCE

Environmental management
Environmental Philosophy

associated with our business activities; by implementing
planned environmental activities in a systematic manner toachieve the set targets; and by periodically reviewing its
activities.
4. The Company shall implement environmental education,
training and internal publicity activities to raise employees
understanding of global environmental awareness issues,and increase their participation in environmental activities,
to promote smooth environmental management.
5. The Company shall disclose this environmental policy
widely to the public through its website and other means.

Recognizing that protection of the global environment is a vital
theme common to all human beings, Kamigumi Co., Ltd.
seeks to achieve harmony between business activities andprotection of the environment. The Company strives to reduce
its environmental impact through the implementation ofenvironmentally conscious business practices and to promote
continuous Group-wide environmental protection activities,
thereby contributing to society.

Environmental Policies

Perspective on preventing environmental pollution

1. To protect the global environment, the Company shallcomply with laws, regulations, ordinances and rules relating
to environmental conservation.
2. The Company shall strive to use limited natural resources
effectively and prevent environmental pollution by promoting
resource saving, energy saving, recycling, reuse, waste
reduction and proper treatment, and pollution emission
reduction.
3. The Company shall strive to continually improve its
environmental performance, by setting environmental
targets, taking into account various environmental impacts

We strive to protect the global environment by complying withenvironmental laws, ordinances, and regulations. Regarding
the above, the Internal Audit Department, which is under the
direct control of the president, constantly checks the situationof each branch office nationwide, and regarding suppressing
the occurrence, reduction, and reduction of impact, etc. ofenvironmental pollution, not only corrects deficiencies but also
provides guidance to aim for better management conditions toprevent environmental pollution.

Climate change
the knowledge gained from past experience such asprotection by shutters, securing of cargo handling equipment,
and securing of containers.
In addition, the Risk Management Department is introducing asafety confirmation system for employees and a system thatcan centrally confirm disaster prediction information aroundeach branch office transmitted from the Ministry of Land,
Infrastructure, Transport and Tourism and municipalities
between the head office and branch offices.

Perspective on climate change
Based on the recognition that the preservation of the global
environment is an important issue for mankind, we strive to
reduce the environmental burden by implementing
environmentally friendly business activities with the aim ofharmonizing our business activities with environmental
preservation. We endorse the recommendations compiled by
the Task Force on Climate-related Financial Disclosures (TCFD)
established by the Financial Stability Board (FSB) in 2015,
analyze and evaluate the risks posed by climate change tofinancial markets, and disclose information in accordance withthe recommendations for "governance", "risk management","strategy", and "indicators and targets".

Improving resilience (adaptation to climate change)
Container securing

In response to natural disasters that are becoming more intense,
especially typhoons, we have been updating ourcountermeasures from times of normality in cooperation withour branch offices to prevent and reduce damage.
Specifically, we work together on how to store and securecargo, and to ensure the safety of employees when performing
unusual work.
For example, at branch offices that are on the path of natural
disasters (especially typhoons), in order to prevent the impact
of strong winds on facilities, we are taking measures based on

Securing cargo handling equipment

7

Close up of the image on the left

ENVIRONMENTSOCIETY

GOVERNANCE

Preventing global warming
Perspective on preventing global warming

Our total energy use (Scope 1, Scope 2 only)
Scope2

Scope1

As one of the materialities (important issues), we will identify
the reduction of environmental impact and actively work on
the control and reduction of CO2 emissions. In addition, we
will actively work to improve, reduce, and curb energy use as
one measure to promote CO2 reduction.

(tkWh)
2,000,000

Total energy and carbon dioxide (CO2)emissions related to our domestic business

1,860,322

1,845,202

1,819,864

2020

2021

2022

1,000,000

We strive to reduce CO2 emissions through the efficient use ofenergy in our domestic business activities. By switching toenergy-efficient equipment, we aim to reduce energy
consumption and reduce Scope 1 and 2 CO2 emissions asfollows compared to 2013.
• Target fiscal year 2026 23% reduction• Target fiscal year 2030 46% reduction

500,000

0

Our total CO2 emissions (Scope 1, Scope 2 only)（t-CO2）

Scope1

Scope2

FY2020

FY2021

FY2022

Scope 1

468,203481,366

457,807

Scope 2

1,392,119

1,363,836

1,362,057

Total

1,860,322

1,845,202

1,819,864

120,000

88,973.91(FY)90,890.12

86,494.45

80,000Managing CFCs
We use refrigeration and freezer equipment to store cargorequiring low temperature management.
Refrigeration and freezer equipment requires CFC gas coolant.
In addition to periodic equipment inspections, we perform
equipment maintenance and repairs in accordance with theprovisions of the Act on Rational Use and Proper Managementof Fluorocarbons. We also submit annual records of these

40,000

0

2020

2021

2022

(FY)

activities and reports on leak volumes to the relevant authorities.
FY2020

FY2021

FY2022

Scope 1

32,055.91

32,969.12

31,356.45

Scope 2

56,918.00

57,921.00

55,138.00

Total

88,973.91

90,890.12

86,494.45

Promoting eco-friendly driving
We promote eco-friendly driving in accordance with our Rules on
Environmental Protection. At all of our branch offices in Japan,
one individual is appointed to promote eco-friendly driving efforts.
This individual administers training and guidance on eco-friendly
driving when employees need to drive company vehicles andchecks tachographs to manage and supervise driving.

8

SOCIETYENVIRONMENTGOVERNANCE

Adopting energy-conserving and low pollutant
vehiclesReducing CO2 emissions through the solar
power businessAs one measure to help prevent global warming, we purchasevehicles characterized by low levels of pollution and fuel

In February 2013, using the roofs of Company warehouses,
we ventured into solar power generation and sales to promoteuse of renewable energy and help reduce CO2 emissions.
To date, we’ve installed solar power capacity of 7,351 kW on
the roofs of six Company warehouses in the Kobe district. We
also operate solar power plants in the cities of Oita (893 kW)
and Kasai (21,253 kW).
Each year, this business generates approximately 36 million
kWh of electricity—equivalent to the annual power
consumption of some 11,600 typical households. The
business helps reduce CO2 emissions by around 17,300 tons.

consumption.

Energy conservation activities in offices,
warehouses, and other facilities
We implement the Cool Biz and Warm Biz activities
recommended by the Ministry of the Environment of Japan toencourage employees to wear clothing that will help us reduceenergy use. We set office thermostats to roughly 28°C during
the summer months (May-September) and to 20°C in thewinter months (November-March).
We also stagger lighting to the extent not to impede business
operations and shut off lights in rooms that are not in use andduring lunch breaks.

Generating power and reducing CO2 emissions throughsolar power
CO2 emissions reductions

Power generation(10,000 kWh)
4,000

Electricity use(t-CO2)

3,624.9(10,000 kWh)
15,00014,038.3

13,756.7

13,752.9

3,000

17,70025,0003,434.3

3,602.6
20,00016,80017,30015,00012,0002,000

10,000

9,000
1,000

5,000

6,000

0

3,000

2020

0

2020

2021

2022

(FY)

Switching to LED lighting
We’re making steady progress toward switching to LED
lighting in our offices and warehouses to conserve energy andreduce CO2 emissions.

9

2021

2022

0
(FY)

ENVIRONMENTSOCIETY

GOVERNANCE

Effective resource use
Perspective on reducing waste emissions

Water conservation initiatives

We strive to protect the global environment by complying withenvironmental laws, ordinances, and regulations. As part of this,we will actively work on reducing waste, improving efficiency, andreducing and avoiding impacts, in addition to responding to

The Company strives to conserve water on a day-to-day basis toprotect and sustainably use water resources. The volume ofwater we used in FY2022 totaled 266,969 cubic meters.

climate change and reducing pollutant emissions.

Water usage(m3)

Reducing waste generation and ensuring
appropriate waste treatment

400,000

In our business activities, we use large volumes of various
materials, including stretch films, cardboard, flexible
containers, lumber, and plastic. To make the most effective
use of limited resources, we seek to reduce waste generationand to reuse and recycle materials.
Waste is disposed of in compliance with all local ordinances.
As required, we retain manifests that clearly indicate volumesof industrial waste and undertake related internal audits.
In addition, the amount of waste in FY2022 was 60,100 tons,
and we aim to improve waste emissions in FY2023 comparedto the previous year. Furthermore, we process our waste
appropriately. Some of it is recycled, and we will promotefurther recycling in the future.

300,000

286,929

265,9296

266,969

2021

2022

200,000

100,000

0

10

2020

(FY)

ENVIRONMENTSOCIETY

GOVERNANCE

Disclosures based on TCFD recommendations
Recognizing protection of the global environment as an important topic for all
humanity, Kamigumi strives to minimize its environmental impact throughbusiness activities that account for the environment. Kamigumi seeks to achieve
harmony between its business activities and environmental conservation.
We support the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), a task force established in 2015 by the
Financial Stability Board (FSB). We analyze and assess the risks presented
by climate change to financial markets and disclose information inaccordance with the recommendations of the TCFD: governance, risk
management, strategy, and indicators and targets.

GovernanceKamigumi has established a Sustainability Committee, for which the President & Representative Director serves as chair, to consider andmake decisions on matters related to climate change. The Sustainability Committee considers and makes decisions on related policies andmeasures, and reports or refers them as necessary to the Board of Directors for consideration. This Committee also manages progress andresults related to the Company’s materiality items, including decarbonization targets, reports to the Board of Directors at least twice a year
on the need for improvements and related issues, and drafts necessary measures.

Risk management
In addition to various risks such as disaster risk, information risk, employment and personnel risk, the Group has also established Risk
Management Rules for environmental risks, and regularly holds the Compliance and Risk Management Committee (hereinafter referred
to as Committee) to manage, improve and strengthen risks. This committee is chaired by the President, and consists of the head officemanagers as members.
In addition, we have set up a Risk Management Department as a permanent department, and there are ten people who specialize insafety, customs clearance, and quality, three of whom are in the operation secretariat of the Committee.
The Sustainability Committee plays a central role in Kamigumi’s efforts to identify risks and opportunities related to climate change overthe medium to long term based on both the 2°C and 4°C scenarios.
The Sustainability Committee periodically reassesses risks and opportunities thus identified and reports on or submits them forconsideration to the Board of Directors at least once a year.

11

SOCIETYENVIRONMENTGOVERNANCE

Strategy
Kamigumi has analyzed the potential financial and business impact of climate change risks and opportunities over the medium to long term
based on various parameters, envisioning a 2°C scenario (under which strong countermeasures to climate change keep the temperaturerise since prior to the Industrial Revolution within 0.9–2.3°C) and a 4°C scenario (under which no further countermeasures to climatechange are taken and the temperature rise since prior to the Industrial Revolution is 3.2–5.4°C).
Potential risks, opportunities

Timing ofappearance

ImpactShort, medium,and long term

Short term

Medium term

2°C

2°C

2°C

Classification

Risks and opportunities
Risk: Increased costs such as carbon taxes

Policiesandregulations Risk: Increased cost of purchasing certificates (such as non-fossil

4°C

4°C

Long term

2°C

Main actions

4°C

Mediumandlong term• Reduction in tax burden due to reduction in
CO2 emissions (28% reduction by 2027, 46%
reduction by 2030 compared to FY2013)[Method]• LED lighting in warehouses• Installation of solar power generationequipment in constant temperature
warehouses• Replace diesel forklifts with battery type

fuel certificates) to achieve our emission targets

Short,
medium,and long
term

Short,
medium,and long
term

Risk: Increased costs of introducing environmentally friendly
equipment and facilities

Short,
medium,and long
term

Short,
medium,and long
term

*2

*2

Opportunity: Reduced energy costs

Mediumterm

Medium
term

*2

*2

Risk: Reduced work due to energy mix review(Reduction of coal-fired power generation due to the Law
Concerning Sophisticated Methods of Energy Supply
Structures and the Energy Conservation Act)

Mediumandlong term• Much of our business is out of scope(the impact is limited because it exceeds
ultra-supercritical power generation (USC))

Opportunity: Increased work due to the spread of renewableenergyMediumandlong term• Increase in facilities and equipment to
respond to increased opportunities for biofuel(wood pellets) storage and cargo handling

Opportunity: Increased work due to the spread of low-carbon
transport (domestic shipping, etc.)

Medium Medium
andandlong term long term

• Response to inland navigation ship loading

Acute

Service outages due to prolonged damage/restoration to own
facilities due to abnormal weather conditions

Mediumandlong term• Work to strengthen port equipment(for port managers)• Insurance for typhoons• Changes in storage methods for cargohandling equipment and stored cargo during
typhoons

Chronic

Increase in labor costs/increase in environmental improvement costs
due to decrease in work efficiency caused by deterioration of working
environment in summer

Mediumandlong term• Implement work style reforms and heat stroke
measures

Technology

Migration
risksMarketPhysical
risks

4°C

Impact on profit and loss*1

Long
term

*1 Short term: until 2027 (less than 5 years) Medium term: 2030 Long term: 2050
*2 As we seek to achieve carbon neutrality by 2050, we will carefully monitor the degree of technological innovation and popularization of equipment for a low-carbon and decarbonized society,and continue to consider emission reduction methods and the degree of impact on financial aspects.

Indicators and targets■ Reducing emissions of CO2 (a greenhouse gas)
Amid the accelerated global movement toward a carbon-zero society, the Japanese government has identified CO2 reduction targetsas
part of efforts to achieve carbon neutrality.
Together with the government targets, Kamigumi has identified the medium-term target to be achieved by FY2030 of reducing
CO2 emissions (domestic Scope 1 + Scope 2 emissions) by 46% vs. 2013 levels.
We will continue to consider long-term targets (FY2050) from the perspective of efficacy, reflecting the understanding that achieving carbon
neutrality is a global goal.

Approx.
(Unit: t-CO2)−13%

Approx.

− 46%

99,12086,49453,545FY2013 actual

FY2022 actual12

FY2030 target

ENVIRONMENTSOCIETY

GOVERNANCE

SOCIETY
Logistics represents a lifeline sector for the economy and livelihoods. In addition to our logistics activities, as a memberof the community, we fulfill our responsibilities to society by addressing various societal issues.
Period covered by report: April 1, 2022 – March 31, 2023

Transport safety

Our mission as alogistics company

Respect for human rights

18 Gaining G-Mark certification as an

18 Reducing CO2 emissions through

19 Promoting women in the workplace

18 Implementing safe driving training

18 Drawing on various modes of transport to

15 Basic policy on transport safety
outstanding safety businessthird-party logistics (3PL)

contribute to customer business continuity
planning (BCP)

19 Employing those with disabilities
19 Encouraging employees to takechildcare leave

20 Human rights policy
21 Dealing with bullying and harassment cases
21 Children's rights
21 Preventing child labor and forced labor

Communication
Activities

Coexistence with local
communities

Social contributions

21 Communicating with shareholders and

22 Sea work experience (Kodomo Waku)

23 Sponsorship of social contribution activities

investorsi

22 Mori no Sewanin forestry activities
22 Cleanup activities
22 Participation in community events

13

ENVIRONMENT

Employment and labor

Health and safety

23 Equal pay for equal work/minimum wage

25 Occupational health and safety

23 Labor management dialogue

26 Occupational health and safety policy and

23 Managing working hours to promote

activity structure

work-life balance

23 Training to improve employee skills
25 Local employment and local sourcing

Various data

14

SOCIETY

GOVERNANCEENVIRONMENTSOCIETY

GOVERNANCE

Transport safety
Basic policy on transport safety

Chapter 2. Business management policies forsecuring transport safetyBasic philosophy

Article 3 : Basic policies
1. Based on the keen understanding that securing transport
safety is a vital part of Company management, theCompany’s Board of Directors will play a leading role intaking action on building internal safety systems while
seeking out and incorporating the viewpoints of the General
Safety Manager and all employees. In addition, over thecourse of the full cycle consisting of implementation,
inspection, and improvement of internal safety
management, all employees will work together as one
under the leadership of the Board of Directors to securetransport safety.
2. To secure transport safety, the Company will prepareCompanywide targets and plans and strive to achieve thesetargets. It will also proactively publish information related totransport safety through the Company website and othermedia.

As an industry-leading integrated logistics firm, the Company
is keenly aware of its role in securing transport safety. Under
the leadership of the Board of Directors and the General
Safety Manager, it strives to strengthen its safety culture
through internal training and education and publicity activities.
In addition, to ensure safe and reliable transportation, it setsshared targets for all employees and implements systematic
safety management in activities toward these targets.
Basic policy
1. We’re committed to complying with all laws and regulations
and internal Company rules related to safety.
2. We’re committed to prioritizing transport safety above all
else in our business operations.
3. We’re committed to implementing safety management inwhich top management plays a leading role.
4. Each business year, we set transport safety targets andimplement systematic safety management toward theirachievement.
5. We analyze various aspects of safety efforts, including
target achievement. We strive at all times to improve thesafety management system.
6. We take steps to confirm that all employees understand thisPolicy and various safety rules and provisions. We disclose
these efforts to the general public in various ways, including
posting them to our website.
Established: December 1, 2006

Article 4 : Priority transport safety measures
1. Based on the basic policy described in the precedingarticle, the following measures will be continually
implemented as priority measures:(1) C ompliance with these Rules and with laws andregulations related to transport safety(2) Proactive investment in transport safety(3) Periodic internal audits and corrective and preventive
measures based thereon(4) Building internal communication and reporting structures
for transport safety and striving to communicate andshare information(5) P lanning and implementing internal training andeducation related to transport safety
2. In cooperation with Company subsidiaries and affiliatecompanies, the Company will strive to secure transport
safety throughout the Company’s entire Group ofcompanies.
3. The Company will refrain from actions that impede thetransport safety of subcontractors to whom it entrusts
business activities.

Transport safety management rules
Chapter 1. General provisions
Article 1 : Purpose
Based on the provisions of Article 16 of the Motor Truck
Transportation Business Act as amended by the Act on partial
Amendment of the Railway Business Act etc. to Improve
Transport Safety, these Rules (“Rules” hereinafter) seek tostimulate initiatives to further transport safety. By clearly
establishing compliance requirements, these Rules advanceefforts to implement and continually update safety
management to further strengthen the Company’s safety
culture and to ensure transport safety.

Article 5 : Targets and plans related to transport safety
1. Companywide targets related to transport safety will be
prepared based on the basic policy under Article 3. In
addition, each branch office will set targets based thereonin accordance with its own specific requirements andconditions.
2. Plans related to transport safety will be formulated toachieve the targets described in the preceding paragraphand to ensure the steady implementation of the priority
measures described in the preceding article.

Article 2 : Scope
1. These Rules apply to business activities related to theCompany’s general truck transportation business.
2. These Rules apply to Company executives, permanent
full-time employees, part-time employees, temporary
employees, and contracted employees.

15

ENVIRONMENTSOCIETY

GOVERNANCE

Supervisors assist the Coordinating Operations Supervisors/
Assistant Coordinating Operations Supervisors and oversee
operations management structures and maintenancemanagement structures at each Company branch office andbusiness site.

Chapter 3. O
 rganizational structure for securingtransport safetyArticle 6 : Duties of the Board of Directors
1. The Board of Directors will bear ultimate Company
responsibility for securing transport safety.
2. The Board of Directors will take all necessary measures inconnection with securing transport safety, including
developing structures, implementing measures, andsecuring budgeting.
3. The Board of Directors will respect the opinions of theGeneral Safety Manager and other employees in securingtransport safety.

Operations Managers/Maintenance Managers

Operations Managers/Maintenance Managers are statutory
managers appointed in accordance with the Motor Truck
Transportation Business Act, Road Transport Vehicle Act, andother applicable legal provisions to manage vehicle operations
and maintenance at each branch office.
A ppointing and dismissing the General Safety rticle 8 : A
Manager
1. A
 Company Director who satisfies the conditions under
Article 2-6 of the Motor Truck Transportation Safety
Regulations will be appointed as the Company’s General
Safety Manager.
2. T he General Safety Manager will be dismissed from theposition of the General Safety Manager if any of thefollowing comes to apply to him or her:(1) The Minister of Land, Infrastructure, Transport andTourism of Japan orders his or her dismissal.
(2) P hysical disability or other such factors make it difficultfor him or her to continue to perform his or her duties.
(3) It is recognized that the continuing undertaking by theGeneral Safety Manager of his or her duties may
impair transport safety, whether due to violations ofapplicable laws and regulations, neglect in confirming
matters related to transport safety, or other such reasons.

 rticle 7 : Internal organization related to transport safety
A
An overview of the Company’s internal organization for
securing transport safety is provided below.
Board of Directors

As described in the preceding article, the Board of Directors
bears ultimate responsibility for transport safety and plays aleading role in securing transport safety.
General Safety Manager

Elected from Directors satisfying statutory requirements, theGeneral Safety Manager will guide and manage measures
implemented to secure transport safety and oversee Company
operations management and maintenance management structures.
Assistant General Safety Manager

Handles operations related to transport safety in place of theGeneral Safety Manager when the General Safety Manager isunable to do so due to unforeseen events.

Article 9 : Duties of the General Safety Manager
1. Under the leadership of the Company Board of Directors,
the General Safety Manager will have the following duties:(1) Work toward the widespread promulgation and thoroughunderstanding of awareness of transport safety among
all Company employees.
(2) Implement and manage basic policies, priority measures,and plans related to transport safety.
(3) D evelop and review internal communication and reporting
structures and organizational structures for securingtransport safety.
(4) Implement internal audits and improvement/corrective
measures for transport safety.
(5) Supervise Operations Managers and MaintenanceManagers.
(6) Plan and implement employee training and education
related to transport safety.
(7) Undertake other coordination and management related

Secretariat

Under the leadership of the General Safety Manager and theAssistant General Safety Manager and staffed by Head Officeadministrative personnel, the Secretariat will handle
administrative operations related to transport safety.

Coordinating Operations Supervisors/Assistant Coordinating
Operations Supervisors

Coordinating Operations Supervisors/Assistant Coordinating
Operations Supervisors oversee operations management
structures and maintenance management structures at each
Company branch office and business site.

to transport safety.
General Operations Supervisors/Assistant General Operations
Supervisors

Chapter 4. Implementation and management ofoperations to secure transport safety

General Operations Supervisors/Assistant General Operations

16

ENVIRONMENTSOCIETY

GOVERNANCE

Manager in cases involving serious accidents or injuries orrecurrence of past accidents or injuries.
4. The General Safety Manager will report to the Board of
Directors on the results of internal audits and propose to
the Board of Directors any due improvement and corrective
measures.
5. The Board of Directors will deliberate on the proposals
described in the preceding paragraph, make decisions on
improvement and corrective measures, and have theGeneral Safety Manager carry out the relevant measures.

Article 10 : Periodic review of rules related to transport
safetyTo ensure that the structures for securing transport safety aresuited to actual current conditions and to the Company at all
times, the Company will periodically review and revise asnecessary its safety management rules, basic policy ontransport safety, priority measures, targets and plans, andorganizational structure.
Article 11 : Implementing priority measures related totransport safety
To ensure transport safety, the Company will set targets andformulate plans related to transport safety as described in
Article 5 of these Rules and, in so doing, implement priority
measures as described in Article 4 of these Rules.

Article 16 : M anaging documents and records to securetransport safety
The Company will establish methods for recording and retaining
and properly retain and manage minutes of meetings in business
operations related to transport safety; related basic policies;priority measures; communication and reporting structures;
reports on accidents and injuries; results of internal audits;and other information concerning transport safety.

Article 12 : Sharing and communicating information
related to transport safety
Based on the organizational structures described in Article 7of these Rules, the Company will secure two-way
communication and information sharing between the Board of
Directors and the General Safety Manager on the one hand
and Company employees on the other. The Company willdevelop structures to secure transport safety that reflect theviews of its employees. Employees who discover and reportany circumstances with safety implications will suffer nodisadvantages for having done so.

 rticle 17 : M
A atters related to release of information
1. The Company will release the information enumerated
below without delay via the Company website inaccordance with the timing stipulated in applicable laws
and regulations:(1) basic policies related to transport safety(2) targets related to transport safety and the state of theirachievement(3) plans related to transport safety(4) priority measures related to transport safety(5) information concerning these Rules and the General
Safety Manager(6) o rganizational structure and command-and-control
structure related to transport safety(7) communication and reporting structure for accidents,
injuries, etc.
(8) accident statistics as described in Article 2 of the Vehicle
Accident Reporting Rules(9) actual budgets for transport safety(10) plans for training and education related to transport
safety(11) results of internal audits related to transport safety andrelated improvements and corrective measures
2. On reporting to the Ministry of Land, Infrastructure,
Transport and Tourism the state of improvements
implemented to secure transport safety following
administrative sanctions, such as measures implemented
after an accident to prevent similar accidents, the Company
will issue notification of such action via the Company website.

Article 13 : Communication and reporting structures for
accidents and injuries
1. Coordinating Operations Supervisor of the branch office orbusiness site will report accidents or injuries occurring at hisor her site to the General Safety Manager via the Central
Health and Safety Council as specified in the internal
communication structure.
2. In the event of an accident, injury, or other incident subject
to the Vehicle Accident Reporting Rules, an appropriate
report will be submitted without delay to the Minister ofLand, Infrastructure, Transport and Tourism in accordancewith those Rules.
Article 14 : Implementing priority measures related totransport safety
The Company will plan and implement training and education
to train the human resources needed to secure transport
safety.
Article 15 : Internal audits of transport safety
1. Under the leadership of the Board of Directors, the General
Safety Manager will conduct periodic internal audits oftransport safety to assess the state of safety management
implementation within the Company.
2. Internal audits will be overseen by the General Safety
Manager jointly with the Internal Audit Department.
3. Emergency internal audits will be undertaken as deemednecessary by the Board of Directors or the General Safety

Chapter 5. Additional provisions
Article 18 : Amendment and abolition of these Rules
1. Amendment and abolition of these Rules will be proposedby the General Safety Manager and deliberated on by the
Board of Directors.

17

ENVIRONMENTGOVERNANCE

Gaining G-Mark certification as an outstanding
safety business

2. The preceding paragraph will also apply to the methods ofreview and amendments of the basic policy, organizational
structures, and other matters under Article 10 of these Rules.

G-Mark certification as an outstanding safety business is a
program established by the Japan Trucking Association torecognize trucking companies that meet specific standards for
traffic safety and other matters. We’re currently in the processof gaining certification under this program as another way tostrengthen transport safety. We’ve already won G-Mark
Certification for 25 of our branches.

Article 19 : Effective date
These Rules will take effect as of December 1, 2006.

General Safety Manager/safety management
organizational structure

Implementing safe driving training

General Safety Manager

To manage driving safety, the Company is proactively installing
dash cameras on its vehicles. As of May 2023, dash cameras
had been installed on 824 vehicles (a total of 1,102 vehicles in
the Group companies). Managers use these devices to review
braking, steering, and other events and to provide guidanceon improving driving safety.
In a key part of operations management, we also confirm thatall drivers without exception are checked for alcohol
consumption in roll calls before and after they drive. The
results of these checks are recorded and the state of theirimplementation confirmed in internal audits.

Pursuant to the provisions of Article 16, Paragraph 2,
Subparagraph 4 of the Motor Truck Transportation Business
Act, the Company has appointed Representative & Managing
Director Toshihiro Horiuchi as the General Safety Manager tooversee the Company’s management of transport safety. The
Company has notified the Ministry of Land, Infrastructure,
Transport and Tourism of his appointment.
* Toshihiro Horiuchi meets the requirements to serve as General Safety Manager
under Article 2-6 of the Motor Truck Transportation Safety Regulations.

Safety management organizational structure
Board of Directors(Bears ultimate responsibility
for safety management.)

ReportingCentral Health and
Safety Council

SOCIETY

Cooperation

General Safety
Manager(Receives reports on accidents, injuries, and other incidents.)

Internal Audit
Department(Coordinates and manages safety
management operations.)

Assistant General
Safety Manager
Reports on accidents, injuries

Secretariat(Assists the General Safety Manager andacts on his or her behalf in the event ofan emergency.)

Internal audits(Handles transport safety administration.)

Branch A

Branch B

Branch C

Branch D

Coordinating
Operations Supervisor

Coordinating
Operations Supervisor

Coordinating
Operations Supervisor

Coordinating
Operations Supervisor

Assistant Coordinating
Operations Supervisor

Assistant Coordinating
Operations Supervisor

Assistant Coordinating
Operations Supervisor

Assistant Coordinating
Operations Supervisor

GeneralOperations Supervisor

GeneralOperations Supervisor

GeneralOperations Supervisor

GeneralOperations Supervisor

Assistant General
Operations Supervisor

Assistant General
Operations Supervisor

Assistant General
Operations Supervisor

Assistant General
Operations Supervisor

Operations Manager

Operations Manager

Operations Manager

Operations Manager

Maintenance Manager

Maintenance Manager

Maintenance Manager

Maintenance Manager

18

ENVIRONMENTSOCIETY

GOVERNANCE

Our mission as a logistics business
Reducing CO2 emissions through third-party
logistics (3PL)

Drawing on various modes of transport tocontribute to customer business continuity
planning (BCP)

After customs clearance, in general, cargo unloaded from a
vessel is transported to a remote warehouse for storage. The
necessary quantity of cargo is delivered from the warehouseto the designated locations in accordance with the order fromthe shipper. At the designated location, the shipper processes
the cargo—by adjusting quantities, packaging, and delivery toretailers for sale to consumers.
We can handle all these processes on the shipper’s behalf. If
so, cargo unloaded from a ship is transported to adjoining
warehouses. After customs clearance, we manage the cargo
in storage and, upon the order from the shipper, prepare fordelivery (quantity adjustments and packaging) and ship thecargo directly to retailers. This reduces transport and indirect
operations, reducing CO2 emissions.

To contribute to business continuity planning (BCP) of ourcustomers and secure supply chain functions in the event of amajor disaster, we can unload cargo in ports across Japanand transport cargo via various modes, including trucking,domestic sea transport, and rail.
We’re currently testing a new state-of-the-art transport system
in which customer cargo that would have been unloaded at
the Port of Tokyo during normal times is unloaded at the Portof Kobe, then transported to the Tokyo area by rail.

Respect for human rights
Employing those with disabilities

Encouraging employees to take childcare leave

Percentageof employees
disabilities
We comply withthe businesswith
employment
obligations of the

To avoid cases in which employees feel they must leave theCompany to care for children, we publicize the details ofchildcare leave programs through internal bulletins to deepen
understanding of our programs not just among those who
may use the programs, but their coworkers.

Act to Facilitate the Employment of Persons with Disabilities.
We properly report on the state of employment activities to
Public Employment Security Offices in accordance withregulations.

Percentage of employees with disabilities

Employees taking childcare leave(%)(People)

3.0

40

2.33

2.28

2.24

2.0

30

1.0
20

0

39
36

2020

2021

2022

(FY)

20

10

Promoting women in the workplace

0

2020

We maintain various programs, including childcare leave andshortened working hours after childcare leave, to ensure theCompany is a welcoming place for women employees and aplace where women can thrive. We also promote these
programs through internal bulletins and other means. Throughthese and other measures, we strive to increase therepresentation of women in management ranks.

19

2021

2022

(FY)

ENVIRONMENT

Human Rights Policy

SOCIETY

GOVERNANCE

4. Compliance with Laws, Regulations, and Norms
Concerning Respect for Human Rights
The Group will comply with all laws, regulations, and norms
concerning human rights that apply in the countries andregions in which it operates. In the event of any difference
between internationally recognized human rights principles
and the laws, regulations, and norms on human rights that
apply in the countries and regions in which it operates, theGroup will defer to the international human rights principles
described under “3. Respect for Human Rights.”

Our Basic Stance on Respect for Human Rights
Kamigumi Group. recognizes that respect for human rights isa social responsibility that a company must fulfill, and has thus
formulated the Kamigumi Group Human Rights Policy (“Policy”
hereinafter) in order to clearly demonstrate our commitment tofulfilling this responsibility. Based on this Policy, the Kamigumi
Group will fulfill its corporate social responsibilities andcontribute to the realization of an affluent society by respecting
the human rights of all stakeholders the Group will be involved
with through its business activities.

5. Human Rights Due Diligence
To fulfill its responsibility to respect human rights, the Groupwill undertake human rights due diligence in its businessactivities. The Group will strive to identify negative effects onhuman rights and to appropriately prevent and mitigate such
effects by developing structures for and continually
implementing human rights due diligence.

Kamigumi Group Human Rights Policy
1. Positioning of the Policy
The Policy has been formulated after gaining approval by the
Board of Directors as an articulation of the Group’scommitment to respect for human rights. The Policy ispositioned as the highest level of policies and rules for theGroup’s efforts to respect human rights.

6. Corrective Measures and Remediation
Should it become clear that the Group’s business activities
have caused or fostered negative effects on human rights,
whether directly or indirectly, the Group will work to correct
and remedy such effects by appropriate means, including
consultations with the corporate ethics helpline or contact
points.

2. Scope
The Policy applies to all executives and employees of theGroup. We also ask that our business partners understand the
Policy and join us in respecting human rights.

7. Dialogue and Discussions with Stakeholders
The Group will strive to responsibly respond to any negative
effects on human rights associated with its business activities
through dialogue and discussions with stakeholders andexperts.

3. Respect for Human Rights
In addition to compliance with laws, regulations, and otherrules on human rights that apply in the countries and regionsin which the Group operates, the Group will support andrespect international norms, including the International Bill of
Human Rights (Universal Declaration of Human Rights andInternational Covenants on Human Rights), which set forth thefundamental human rights of all people, and the International
Labour Organization Declaration on Fundamental Principles
and Rights at Work, which establishes fundamental rights inthe sphere of labor. The Group will also respect human rights
in its business activities as set forth in the United Nations
Guiding Principles on Business and Human Rights.

8. Education and Training
The Group will implement the education and training needed
to ensure that the Policy is understood and firmly establishedin its business activities.
9. Information Disclosure
The Group will disclose information on its initiatives to respecthuman rights in a timely and appropriate manner through its
website, reports, and other means.

The Group will fulfill its responsibility to respect the humanrights of all stakeholders involved in its business activities.
(1) We will not tolerate unfair discrimination based on ethnicity,
nationality, gender, age, religion, physical condition, social
status, sexual orientation, or other characteristics.
(2) We will not tolerate forced labor, child labor, or any other
unethical labor practices.
(3) We will not tolerate any acts of harassment, including
abuse of power and sexual harassment.
(4) We will manage working hours appropriately.
(5) We will provide safe and sanitary working environments.

October 10, 2023
Yoshihiro Fukai
President & Representative Director
Kamigumi Co., Ltd.

20

ENVIRONMENTSOCIETY

GOVERNANCE

consideration needs to be given to their human rights. In the
Kamigumi Group Human Rights Policy, we endorse andrespect the contents of the ILO conventions and do nottolerate forced labor or child labor at all. In addition, respecting
the Convention on the Rights of the Child, the Kamigumi
Group will strive to eliminate child labor in its business activities
and supply chains, and will promote activities to respectchildren's human rights, avoid violations of children's rights,
and realize a society in which children's rights are respected.
As for the activities of the Kamigumi Group, we agree with the
purpose of the Nippon Foundation The Ocean and Japan
Project and Kodomo Waku, and conduct work experienceand workplace tours once a year.

Dealing with bullying and harassment cases stablishment of a consultation system to preventE
harassment
As part of our efforts to create a harassment-free work
environment, we have set up a consultation desk in the
management department of each business site, including Group
companies, to promote mental health promotion plans and to
make it possible for staff to consult with consultation desk
personnel in the event of harassment or witnessing of such acts.
In order to protect the confidentiality of the person who contacts
the consultation desk, in addition to protecting their privacy, we
have clearly stated that there shall be no disadvantageous
treatment due to the consultation, and have prepared a systemthat can ensure an appropriate response such as improving thesituation or taking measures to prevent recurrence.
In addition, in order to respond appropriately to consultation
and reporting on harassment, we are striving to create asystem where employees can consult with peace of mind by
conducting regular education and training for generalemployees as well as managers and personnel in charge ofthe consultation desk. In FY2022, 3,756 people attended
harassment training.

Preventing child labor and forced labor
Basic perspective on child labor and forced labor
The Kamigumi Group will comply with the laws and regulationsof each country and region, comply with international labor
standards and frameworks, and will not tolerate any unfair
labor practices such as child labor and forced labor.
Main initiatives
The Kamigumi Group complies with the Labor Standards Act,
which prohibits child labor and forced labor. In addition, in theunlikely event that there is a suspicion of child labor or forcedlabor, we have established an internal whistleblowing deskcalled the Corporate Ethics Helpline to prevent occurrence.

Children’s rights
The Kamigumi Group recognizes that children are in a position
where their rights are easily violated and that special

Communication
Communication with shareholders and investor
By posting financial highlights and securities reports on thewebsite and by other means, the Company strives tocommunicate information to shareholders and investors in atimely manner.
In addition, the Company seeks to win understanding of its
business conditions, strategies, and other matters throughbi-annual briefings on financial results for institutional investors
and analysts.

The Ordinary General Meeting of Shareholders is held in lateJune of each year. To encourage shareholder participation at
and to review proposals submitted to this meeting, theCompany issues notices of convocation well in advance. We
also maintain a system that enables the exercise of voting
rights via the Internet.
(Related information)
Disclosure Policy

21

ENVIRONMENTSOCIETY

GOVERNANCE

Coexistence with local communities
As a member of the community, we strive to contribute to harmony and coexistence based on profound respect for local culture and norms.

Sea work experience (Kodomo Waku)

Cleanup activities

Through the sea work experience, this program aims at thehealthy growth of children and the development of marine
human resources, and we are working to make people feelfamiliar with “port work”.

We carry out regular cleanup activities at our branch offices
nationwide to improve our community environments.

Mori no Sewanin forestry activities

Participation in community events

Since 2009, we have aimed to prevent soil-related disasters
and develop natural, abundant forests through tree-planting
and preservation activities in Usaginomori Forest, a part of the
Rokko Mountain system in Kobe.

People in our branch offices
nationwide participate inlocal events and festivals, aspart of efforts to help
revitalize, and strengthen ourties to, local communities.
Oshaka Festival (Shibushi)

Community Festa (Fukuyama)22

Tug-of-war tournament (Oita)

ENVIRONMENTSOCIETY

GOVERNANCE

Social contributions
Example of initiatives
Sponsorship of Vissel Kobe’s Social Seats(seats that help contribute to society)We sponsor the Social Seats program (seats that help
contribute to society) for the professional soccer team in ourhome market of Kobe.
The Social Seats program invites earthquake orphans andpeople from welfare facilities, including facilities serving
mothers and children, via Kobe City and Hyogo Prefecture toview official matches at Vissel Kobe’s home stadium.

Sponsorship of social contribution activities
Based on an emphasis on community partnerships, wepursue various ongoing initiatives to aid society, including
donations that further the social and public good.

Employment and labor
will comply with labor laws and regulations in each country
and work to reduce excessive work at each group site,
including overseas.

Equal pay for equal work/minimum wage
The Group advocates compliance with international rules andlocal laws, etc., and complies with the payment of appropriatesalaries to employees under laws and regulations that stipulate
minimum wages in each country and the idea of equal pay for
equal work. In Japan, the main career track positions who areresponsible for core business are divided into national employees
and regional employees, and each uses a salary andcompensation system according to the role, the size of theposition, and performance, etc., so that there is no difference
between genders at the same qualification and same job level.

 ain initiatives
M
We conduct exchanges of opinions and active dialogues
between labor and management on reducing working hours,
and we are working to reduce excessive working hours. For
example, we thoroughly manage working hours as one of ourinitiatives that takes into account work-life balance.
Specifically, we are conducting appropriate management bymaking efforts to standardize work and eliminate over-relianceon specific individuals, introducing a work management
system that helps supervisors understand their employees’
working hours in a timely manner to create a mechanism tosend an alert before an employee works long hours.

Dialogue between labor and management
 asic perspective on dialogue between labor andBmanagement
Kamigumi supports and respects the right to freedom of
association and the right to collective bargaining, and both
Kamigumi and the trade union aim to create a workplace thatis comfortable for everyone and build a stable relationship.

Training to improve employee skills
Training for human resource development
Basic approach
The Kamigumi Group believes that human resources are thesource of value creation and business competitiveness, andsince it is human resources who will practice "responding to
the demands of an ever-changing business environment" and"taking on challenges that are one step ahead of present-day
needs" in the corporate philosophy, we will aim tocontinuously cultivate human resources with the will andexecution ability to boldly take on challenges in response tochanges. In addition, we consider the following for humanresource development.
• Develop human resources to not only improve corporate
performance, but also improve employees' abilities andmotivate them by feeling a sense of personal growth• The fundamentals of human resource development are OJT,
job rotation, and self-development• Off-JT is carried out to create a foundation as a businessperson at each level and to acquire knowledge and skills
that are difficult to obtain completely in OJT• The guiding principle of development common to all levels is
the realization of the “type of human resource sought” as acompany employee

Main initiatives
In order to ensure smooth management and businessdevelopment, and to improve the working conditions of union
members, we listen to different opinions depending on the job
type, and hold labor-management negotiations three times ayear. In addition, when implementing the introduction andchange of various systems, we have established a place fordiscussion of high-impact items each time, and haveestablished a system that allows employees' opinions to bereflected in management.

Managing working hours to promote
work-life balanceBasic perspective on reducing excessive working hours
In order to develop our business in a sustainable and stablemanner, we are working to reduce excessive working hours
under the idea that it is important to maintain a working
environment where employees can continue to work in a healthy
and lively manner both mentally and physically. In addition, we
23

SOCIETYENVIRONMENTGOVERNANCE(3) Training by Job level
We provide step by step training to allow employees to learn
the ideas, knowledge, and skills they need to lay thefoundation as a business person at each level. In particular,
we have intensified training as a follow-up period for young
employees up to the third year of joining the Company.

<Type of human resource sought>(1) Persons who continue to expand their professional fields toincrease the intervening value to customers and relatedparties(2) Persons who grow themselves and the people aroundthem by engaging with the people around them whilechallenging themselves to be aggressive(3) Persons who not only focus on the short term, but also grasp,plan, and execute things from a long-term perspective(4) Fair and equitable evaluation system
We have introduced a management system based on goals,
and we hold goal setting interviews, interim interviews, andend-of-year evaluation interviews. We believe that the evaluation
system should not be only used for judging fair treatment, salary
increases, and promotions, but should also play a role in humanresource development through the process of achieving goals.
We aim to balance employee growth and organizational
performance improvement by aligning our organizational goals
with individual goals and working to achieve them. In addition,
we have introduced evaluator training so that evaluators canproperly evaluate, and provide feedback and guidance.

Structure
The Human Resources Department of the head office plansand operates common education and training for the Group,
such as training by each level starting with young employees
and training of global human resources. We plan and implement
education and training in each business unit for the acquisition ofknowledge and skills specific to each business field.
Initiatives(1) OJT
Based on the logistics know-how we have cultivated since ourfounding and our domestic and international logistics
networks, we will cultivate human resources with expertiseand diversity through our experience in a wide range ofbusiness fields that handle a variety of cargoes, from small
parcels to huge heavy goods.networks, we will cultivate
human resources with expertise and diversity through ourexperience in a wide range of business fields that handle avariety of cargoes, from small parcels to huge heavy goods.

(5) Overseas training system
In principle, we dispatch employees who have been in the
Company for more than five years to overseas local
subsidiaries for half a year to carry out practical training. We
strive to develop human resources who can respond to
globalization by cultivating knowledge, skills, and aninternational sense through experiencing overseas locations,
physical objects, and stakeholders.
(6) Development of next-generation management humanresources
With the acceleration of the pace of change in the businessenvironment, we aim to develop management personnel with
foresight, leadership, and a sense of mission. From the
management level, we will also focus on selective educationthat aims to cultivate managers intentionally in the medium- tolong-term timeline, such as allowing talented people to gaindifficult experiences at an early stage.

(2) On-site training for new employees
In principle, we conduct on-site training for new graduate main
career track employees for six months to experience working
at the forefront of the site of their assigned branch office. While
allowing these employees to experience the on-site capabilities
that are our strength, we strive to promote understanding of
on-site work, foster safety awareness, and cultivate main career
track employees that can be candidates for future executives.
Main training programs

1 month after
joining

10 months after
assignment

OJT

Follow up after
operation

Young/
mid-career

Head officelectureOn-site training

Sales

New employees
meeting

Overseas training

On-site tour

Registered customs
specialist training

Customs
clearance

Personal meeting

Relocation

Business manner

Various get
licensedogistics
operations

Online meeting

Trade PracticeManagement
Various e-Learning

24

Management

Evaluator training

Training by Job level

ENVIRONMENTSOCIETY

GOVERNANCE

contribute to the development of the local community, and declarethat we will promote corporate activities that take into account theregion. Based on this recognition, we will contribute to thedevelopment of local communities by conducting social
contribution activities that contribute to the improvement andexpansion of the economic and social infrastructure of the region.

Local employment and local sourcing
The Kamigumi Group demonstrates its cooperation with theinternational community and its contribution to the local
community in its Charter of Corporate Behavior. In our action
policy, we respect the culture and norms of the local community,

Health and safety
Occupational health and safety

Chugoku, Kyushu), and under this umbrella, each branch officemakes plans to develop health and safety activities.

Basic approach and policy
KIn our Group, which has many labor-intensive businesses,
we recognize that in addition to our efforts to ensure the healthand safety of our employees, it is important to ensure the safety ofall stakeholders who work together with us for the sustainablegrowth of our Company. In order to protect the safety of all
stakeholders involved in the Group's business activities and tosupport the maintenance of the mental and physical health ofGroup employees, we comply with relevant laws and regulations
such as the Industrial Safety and Health Act. In the Group Charterof Corporate Behavior, we have set a policy to improve the healthand safety system to eliminate occupational accidents. In addition,
we have declared that we will work to promote health throughout
our offices (Healthy Company Statement), and we strive to createa work environment where everyone can work safely, in a healthy
and lively manner both physically and mentally.

Occupational health and safety policy andactivity structure
The Central Health and Safety Council Secretariat sets the healthand safety activity policy of each branch office every year, with anannual slogan, key goals, and key implementation items, andeach block and each branch office plans annual health and safety
activities based on the activity policy. As an activity, at the all-branch
office meeting hosted by the Central Health and Safety Council,
we confirm the progress of each block, analyze the causes ofaccidents and occupational accidents, and share measures toprevent recurrence. In each block, health and safety conferences
are held four times a year with patrols as the main axis. The
secretariat conducts safety patrols for business sites with
deficiencies in the safety system such as branch offices with many
accidents. Depending on the results of the patrols, the safety
management systems, including the systems of the partnercompanies of the business site, are corrected according to theimprovement guidance document. In addition, during national
activities such as National Safety Week, the results of thesafety activities of each branch office are reported to thesecretariat, and the secretariat evaluates the activities.

Management system
KWe have established the Central Health and Safety Council
as an organization that promotes and manages accident
prevention and health promotion in the Group. Under this council,
the country is divided into 5 blocks (Kanto, Chubu, Kansai,
Health and safety management system
Central Health and Safety Council Chairperson

Central Health and Safety Council Vice-Chairperson
Central Health and
Safety Council Secretariat
Blocks (Kanto, Chubu, Kansai, Chugoku, Kyushu)

Sites(Branches, Business Headquarters, Divisions)

Branch Health and Safety Council
General Safety Manager of Each Site
(Branch General Manager, Business Headquarters
General Manager, Division General Manager)
Industrial Physician
Safety Manager of Each Site

Health Manager of Each Site

25

ENVIRONMENT

Initiatives
1. Initiatives related to ensuring safety

Non-consolidated
Reference) Transportationand postal industry average

FY2020

FY2021

FY2022

0.96%

0.42%

0.76%

3.31%

3.31%

4.06%

4. Initiatives related to health management and healthpromotion(1) Measures for prevention and control of infectious diseases(i) Assistance for influenza vaccination costs
In order to promote vaccination and reduce the burden of
vaccination, we partially subsidize the costs of influenza
vaccination at medical institutions for our employees anddependents in cooperation with the Sunny-Pier Health
Insurance Association, which is the health insurance
association of our Company.
(ii) Workplace vaccination with COVID-19 vaccine
In 2021, as a response to the COVID-19 pandemic that has
raged in various countries around the world, we implemented
the COVID-19 vaccination in the workplace for company
and group employees who wished to take it.
• Achievement: 202 people*1 The number of casualties caused by occupational accidents per million
working hours, expressed as the frequency of occupational accidents.

Frequency rate =number of casualties causedby occupational accidents
total actual working hours

× 1,000,000(2) Severity rate*2
Scope
Non-consolidated

Reference) Transportationand postal industry average

FY2020

FY2021

FY2022

0.04%

0.02%

0.01%

0.13%

0.22%

0.21%

5. Mental health measures(1) Implementation of stress checks and provision of interview
opportunities for those who wish to have them
In accordance with the law, we conduct stress checks forall employees who wish to take them. In addition, we have
prepared an environment so that employees who wish tohave an interview with an industrial doctor after receiving
the results of their stress test can receive one.
(2) Implementation of training for employees in line with theplan for the promotion of mental healthIn order to advance the plan for the promotion of mental
health, we conduct training on the themes of harassment
prevention and mental health for all employees.

*2 The total number of working days lost per 1,000 working hours,
expressed as the severity of the accident.
Severity rate =total working days lost
total actual working hours

GOVERNANCE

similar accidents by disseminating the case studies horizontallyat each branch office and using them for safety education.

(1) Frequency rate*1
Scope

SOCIETY

× 1,000

2. Pre-emptive safety based on KY and risk assessment(1) We estimate the risks of daily work by KY (hazard prediction),
implement changes in work methods according to risks,and strive for pre-emptive safety.
(2) At times such as new work and introduction of new
equipment, a risk assessment is conducted, a work
standard document specifying the work method for the tool
to be used is prepared, and workplace rules are thoroughly
communicated via the work standard document.

6. Others(1) Implementation of the Hyogo Health Company Declaration
Focusing on health management and with a view toobtaining certification as a Health & Productivity Management
Outstanding Organization in the future, we issued a HealthCompany Declaration in 2020, as the first step.

3. Implementation of safety education(1) In order to make new employees understand thecharacteristics of the port work site, we conduct health andsafety training for new employees on topics such asaccident case study education, hazard prediction training,risk assessment training, and audio-visual education
through safety videos.
(2) We have established a mechanism to report monthly
accidents and near-miss incidents that did not result inaccidents within the Group and a system to share it within
the Group. We strive to prevent recurrence and prevent

Number of employees who have taken health andsafety training
Training program name
Health and safety training for new employees

26

FY2022
43

Abuse of authority training

3,713

Mental health training

3,713

ENVIRONMENTSOCIETY

GOVERNANCE

Various data
Employee status
Item

Scope

Number of employees *1

Breakdown

Consolidated *2

Non-consolidated

Average age

Non-consolidated

Average length of service

Non-consolidated

Number of recruits(new graduates)

Non-consolidated

Number of recruits (mid-career)Non-consolidated

Units

Fiscal 2020

Fiscal 2021

Fiscal 2022

Overall

People

4,335

4,261

4,206

Male

People

3,681

3,619

3,543

FemalePeople

654

642

663

Percentage of females

%

15.1

15.1

15.8

Overall

People

3,779

3,719

3,674

Male

People

3,263

3,206

3,145

FemalePeople

516

513

529

Percentage of females

%

13.7

13.8

14.4

Overall

Years

39.2

39.7

40.5

Male

Years

40.3

40.8

41.5

Female

Years

33.2

33.7

34.4

Overall

Years

15.3

15.7

16.4

Male

Years

16.2

16.7

17.4

Female

Years

9.7

10

10.7

Overall

People

109

85

77

Male

People75

5645

FemalePeople34

29

32

Overall

People

61

53

41

Male

People53

44

32

FemalePeople899Ratio of women in managerial positions

Non-consolidated

–

%

1.5

1.5

1.8

Non-regular employee ratio

Consolidated *2

Overall

%

15.0

15.6

15.1

Non-consolidated

Overall

%

15.7

16.3

15.6

Consolidated *Overall

%

–

–

3.6

Non-consolidated

Overall

%

2.8

3.9

3.4

Consolidated *Overall

%

–

–

2.19

Non-consolidated

Overall

%

2.33

2.28

2.24

Turnover rate (at own convenience)

Hiring people with disabilities rate *

2

3

2

Diverse work styles
Item

Scope

Units

Fiscal 2020

Fiscal 2021

Fiscal 2022

Average days of annual paid leave taken

Non-consolidated

Overall

Days

9.7

10.6

11.2

Percentage of annual paid leave taken

Non-consolidated

Overall

%

57.3

58.4

60.7

Number of users of childcare leave system

Non-consolidated

Overall

People

20

36

39

Male

People4

723FemalePeople

16

29

16

Male

%

3.0

5.0

15.0

Female

%

100

100

100

Fiscal 2020

Fiscal 2021

Fiscal 2022

Rate of employees taking childcare leaveNon-consolidated

Breakdown

Human resource development
Item

Scope

Education and training time (total time) *4

Consolidated *2

Overall

Hours

–

–

29,960Non-consolidated

Overall

Hours

–

–

29,031

Consolidated *2

Overall

Hours

–

–

6.4

Non-consolidated

Overall

Hours

–

–

7.1

Education and training time (per person) *4

Breakdown

Units(Notes) *1 The Company and its domestic and overseas consolidated subsidiaries.
*2 The number of employees is as of the end of each fiscal year. The number of employees does not include non-regular employees.
*3 The consolidated figures include consolidated subsidiaries that are required to submit reports on the employment status of people with disabilities.
*4 Including non-regular employees (excluding temporary employees).

27

ENVIRONMENTSOCIETY

GOVERNANCE

GOVERNANCE
In accordance with our Corporate Philosophy, we strive to enhance our management structures to ensure sustained, stable growth.

Corporate governanceCompliance

Risk management

29 Basic concept of corporate governance

32 Compliance structure and state of operations

34 Business continuity planning (BCP) initiative

29 Basic policy on internal controls systems

32 Promoting compliance risk management

34 Responsible tax payment

30 Appointing external Directors and Audit &Supervisory Board members

31 Composition and meetings of the Boardof Directors

activities

32 Anti-corruption policy and initiatives
33 Export/import controls
33 Operation and widespread awareness of theinternal whistleblower system

33 Internal audits
33 Basic stance on exclusion of antisocial forces

Information security

Supply chain

34 Information security initiatives

34 Building equitable trading relationships

28

34 Fines for environmental violations

ENVIRONMENTSOCIETY

GOVERNANCE

Corporate governance
Basic concept of corporate governance ystems to ensure the propriety and status of GroupS
business operations
Under the Affiliate Company Management Rules, importantmatters related to Group management are deliberated on orreported to the Company’s Board of Directors and meetingsof other internal management bodies. The Company’s Internal
Audit Department audits major subsidiaries in accordance withaudit plans to ensure the propriety of Group business operations.

We strive to enhance and strengthen corporate governanceunder a basic policy that calls for establishing efficientmanagement systems to realize stable long-term growth
founded on swift and appropriate decision-making andbusiness execution, with the interests of diverse stakeholders
in mind at all times, including shareholders. To ensure Group
member companies are managed in accordance with laws
and regulations under consolidated management, we’vedeveloped an internal controls system based on the
management of various risks in business operations. Theseare part of our good-faith efforts to fulfill our corporate social
responsibility.

Initiatives related to ensuring the efficacy of auditing by
Audit & Supervisory Board members
The Company’s Audit & Supervisory Board members attend
meetings of the Board of Directors and other important meetings.
Board members also meet regularly with the Representative
Director to ensure opportunities for the exchange of opinions
concerning management. Board members receive important
reports and materials from related Company sections, including
reports from the Internal Audit Department on the results ofinternal audits. They review reports and materials from Group
member companies as needed and periodic reports from theaccounting auditor concerning audit results. Board members
check with the accounting auditor regarding audit status, as
needed. These activities help ensure the efficacy of audits
overseen by Audit & Supervisory Board members.

Basic policy on internal controls systems
In line with our management philosophy, we seek to realize
sustained growth and fulfill our social responsibilities as anintegrated logistics provider. We’ve established a basic policy
on internal controls systems under which we develop andoperate related systems and structures and periodically review
and improve them.

 tate of the risk management structure
S
以降未対応
The Kamigumi Group has established Risk Management Rules
to identify various risks in everyday business execution and toprevent potential problems. In accordance with these rules,
the Compliance/Risk Management Committee meets regularly
to ascertain risks in the Group and to draft and implement
measures to address them. (The Compliance/Risk
Management Committee met 12 times in FY2022.)
 tate of initiatives related to securing efficacy andSefficiency in business execution
In FY2022, the Board of Directors consisted of 12 members(including four external Directors) and met 16 times. The four
Audit & Supervisory Board members (including three external
Auditors) also attended these meetings. Board meetings are
generally characterized by a lively exchange of opinions oneach of the motions submitted. We seek to ensure the efficacy
of its decision-making and oversight.
We have also adopted an executive officer system.
The Board of Executive Officers, attended by all Company
executive officers, met 12 times in FY2022 to make timely
decisions on business matters.

29

ENVIRONMENTSOCIETY

GOVERNANCE

Appointing external Directors and Audit & Supervisory Board members
External Directors (three Directors)
Name

Reasons for appointment

Nobuko Ishibashi

Ms. Ishibashi brings wide-ranging experience and extensive knowledge as an attorney. While she does not have experience withdirect involvement in corporate management except as an external director, she was appointed an external Director in the
expectation that she will provide valuable advice, mainly from a compliance perspective, and will contribute to the strengthening
and advancement of the Company’s governance through meetings of the Board of Directors and other opportunities.
No known conflicts of interest exist between the Company and Ms. Ishibashi. Her appointment as an external Director reflects
the fact that she satisfies the independence criteria of the stock exchange and criteria established by the Company for
determination of independence.

Osamu Hosaka

Mr. Hosaka brings considerable knowledge, primarily related to resupply and transport, gained from experience as a highranking officer in the Japan Ground Self-Defense Force. While he lacks experience with direct involvement in corporate
management in the past, Mr. Hosaka was appointed an external Director in expectations that he will help strengthen andadvance Company governance through meetings of the Board of Directors and other opportunities.
No known conflicts of interest exist between the Company and Mr. Hosaka. His appointment as an external Director
reflects the fact that he satisfies the independence criteria of the stock exchange and criteria established by the Company
for determination of independence.

Harumi Matsumura

Ms. Matsumura brings considerable knowledge based on her experience in managing a snacks maker and a manufacturerof residential equipment. Ms. Matsumura was appointed an external Director in expectations that she will help strengthen
and advance Company governance through meetings of the Board of Directors and other opportunities.
No known conflicts of interest exist between the Company and Ms. Matsumura. Her appointment as an external Director
reflects the fact that she satisfies the independence criteria of the stock exchange and criteria established by the Company
for determination of independence.

External Audit & Supervisory Board members (three members)Name

Reasons for appointment

Takumi Nakao

Mr. Nakao was appointed an external Audit & Supervisory Board member based on the judgment that he willcontribute to the strengthening and advancement of the Company’s governance through various activities, including
audit implementation and viewpoints expressed at meetings of the Board of Directors and other opportunities,
reflecting his high degree of independence vis-a-vis the Company and experience gained from a long career as aprosecutor and expertise as an attorney.
No known conflicts of interest exist between the Company and Mr. Nakao. His appointment as an external Audit &Supervisory Board member reflects the fact that he satisfies the independence criteria of the stock exchange andcriteria established by the Company for determination of independence.

Ai Kuroda

Ms. Kuroda brings considerable experience and extensive knowledge as an attorney, as well as practical experience incorporate law, including experience with the Companies Act and work in overseas offices. While she lacks experience withdirect involvement in corporate management, she was appointed an external Audit & Supervisory Board member in the
expectation that she will contribute to overall audits of business activities as an external Audit & Supervisory Board memberof the Company, which engages in business activities in global markets, and to the strengthening and advancement of theCompany’s governance through meetings of the Board of Directors and other opportunities.
No known conflicts of interest exist between the Company and Ms. Kuroda. Her appointment as an external Audit &Supervisory Board member reflects the fact that she satisfies the independence criteria of the stock exchange and criteria
established by the Company for determination of independence.

Tomokazu Hideshima

Ms. Kuroda brings considerable experience and extensive knowledge as an attorney, as well as practical experience incorporate law, including experience with the Companies Act and work in overseas offices. While she lacks experience withdirect involvement in corporate management, she was appointed an external Audit & Supervisory Board member in the
expectation that she will contribute to overall audits of business activities as an external Audit & Supervisory Board memberof the Company, which engages in business activities in global markets, and to the strengthening and advancement of theCompany’s governance through meetings of the Board of Directors and other opportunities.
No known conflicts of interest exist between the Company and Ms. Kuroda. Her appointment as an external Audit &Supervisory Board member reflects the fact that she satisfies the independence criteria of the stock exchange and criteria
established by the Company for determination of independence.

30

ENVIRONMENTGOVERNANCE

SOCIETY

Composition and meetings of the Board of Directors
To achieve swift and appropriate decision-making on important management issues and on the oversight of business execution in
Company business activities, the basic policy on the composition of the Board of Directors calls for membership to include internal
Directors who are highly familiar with each of its business fields, as well as multiple external Directors who are capable of offering
opinions on improving management efficiency and governance from diverse stakeholder perspectives. As of July 2023, the Board
included 8 Directors (including three external Directors) and four Audit & Supervisory Board members (including three external Audit& Supervisory Board members), for a total of 12 members.
During FY2022, the Board met 16 times. The following table gives the attendance of each Director in Board meetings.
Numbers of Directors and Audit & Supervisory Board members
Directors

Audit & Supervisory Board members

Fiscal year
Internal

External

Internal

External

2023

5

3

1

3

2022

8

4

1

3

2021

8

2

1

3

Attendance to meetings of the Board of Directors and Audit & Supervisory Board (April 1, 2022 to March 31, 2023)(Results for FY2022)

Name

Position

Number of Board of Directors
meetings attended

Number of Audit & Supervisory
Board meetings attended

Masami Kubo

Representative Director

16/16 times (100%)–

Yoshihiro Fukai

Representative Director

16/16 times (100%)–

Norihito Tahara

Representative Director

16/16 times (100%)–

Toshihiro Horiuchi

Representative Director

16/16 times (100%)–

Katsumi Murakami

Representative Director

16/16 times (100%)–

Koichi Hiramatsu

Director

16/16 times (100%)–

Yukihiro Nagata

Director

16/16 times (100%)–

Kazuhisa Shiino

Director

16/16 times (100%)–

Nobuko Ishibashi

Director (external)

16/14 times (87.5%)–

Mitsuo Suzuki

Director (external)

16/16 times (100%)–

Osamu Hosaka

Director (external)

13/13 times (100%)–

Harumi Matsumura

Director (external)

13/13 times (100%)–

Yasuo Kobayashi

Audit & Supervisory Board member

16/15 times (93.8%)

11/11 times (100%)

Kuniharu Saeki

Audit & Supervisory Board member––

16/16 times (100%)

11/11 times (100%)

16/13 times (81.3%)

11/9 times (81.8%)

13/13 times (100%)

8/8 times (100%)

Takumi Nakao
Ai Kuroda
Tomokazu Hideshima

Audit &
Supervisory Board member (external)
Audit &
Supervisory Board member (external)
Standing Audit &Supervisory Board member

Note:* Directors Osamu Hosaka and Harumi Matsumura, and Audit & Supervisory Board member Tomokazu Hideshima were appointed at the 83rd Ordinary General Meeting of
Shareholders on June 29, 2022, so the number of meetings attended and total number of meetings above are based on the Board of Directors and Audit & Supervisory Board
meetings held after their appointment.
* Kuniharu Saeki, the current Audit & Supervisory Board member, replaced Yasuo Kobayashi, the Audit & Supervisory Board member who resigned on March 31, 2023, and was
appointed as the Audit & Supervisory Board member from the position of Substitute Audit & Supervisory Board member on April 1, 2023, so the number of attendances at Board of
Directors and Audit & Supervisory Board are not stated.

31

ENVIRONMENTSOCIETY

GOVERNANCE

Compliance
Compliance structure and state of operations

Developing effective compliance systems
To promote risk management, the Company’s Compliance/
Risk Management Committee (at the head office) and its
subsidiary local committees (organized in each branch office)carry out continual training with the goal of improving ethicalstandards within the organization and awareness of various
risks. Monthly activities are based on Risk Management
Periodic Inspection Records
and Compliance Textbooks,
as well as lessons gained
from monitoring the response
to risks and compliancetraining (mutual checks andbalances), to ensurecorporate management
characterized by integrity.
Risk Management Bulletin

The Company’s Compliance/Risk Management Committee ischarged with establishment and promotion of internal controls
systems and with ensuring a thorough understanding ofcompliance with regard to internal rules and applicable laws
and regulations in local committees through various means,including the Company’s internal bulletin board andnewsletters. It also receives periodic self-inspection reports
from local committees and pursues various ongoing measures
to strengthen compliance based on the results of these efforts.

Promoting compliance and risk management
activities
 aising employee awareness of compliance issues
R
Since FY2010, the Company has published the Risk
Management Bulletin (with the publication of its 340th issue asof the end of September 2023) to keep employees abreast ofvarious compliance matters, alongside activities in which
employees read these together in the workplace. The Risk
Management Bulletin is also used as teaching materials ininternal training.
In addition, we promote the use of the compliance promotion
portal site (internal portal) and aim to further strengthen thegovernance system by improving employee complianceawareness.

Risk Management Periodic
Inspection Records

Compliance Textbook

Anti-corruption policy and initiatives
The Group prohibits corrupt practices such as bribery,embezzlement, and bid-rigging. In the Charter ofCorporate Behavior, we set forth Fair and Transparent
Business Practices, and make clear statement such as"We do not collude in bidding." "We conduct transactions
with clients on an equal footing, based on the contract
agreed upon.” and the “Anti-Corruption Policy” formulated
based on these ideas is applied to the officers andemployees of the Group.
In addition, as well as confirming the risks related tobribery and corruption with officers and employees basedon the compliance system, we are striving to penetrate
the anti-corruption policy by distributing compliance texts
and the Risk Management newsletter (internal newsletter)through the Company’s portal site as content to translate
the anti-corruption policy into individual actions.
The number of dispositions and dismissals of officers andemployees due to violations of the anti-corruption policy in
FY2022 was 0.

Compliance promotion portal site

Please check our anti-corruption policy from the following URL.
https://www.kamigumi.co.jp/english/news/2023/000289.html

32

ENVIRONMENTSOCIETY

GOVERNANCE

Export/import controls
To maintain security in international logistics and help facilitate
international trade, the Company has established various
programs concerning compliance with applicable laws andregulations, as well as ensuring security and appropriate export/
import customs clearance for international cargo. It maintains
a management system based on these programs and goals.
In addition, as an authorized economic operator (AEO)
recognized for outstanding compliance structure and security
management, the Company was approved as a special
bonded warehouse business in June 2011 and authorized asa certified customs clearance agent inJanuary 2014.
Special bonded warehousebusiness: Registered bonded storage
location (53 sites nationwide)
Certified customs clearance agent: 37
sites nationwide
AEO warehouse operator(As of September 2023)

Excerpts from A.B.C. of the Kamigumi Group Corporate
Ethics Helpline.

Internal audits
The Internal Audit Department, an independent organization under
the direct supervision of the President & Representative Director,
handles internal audits. These audits are the department’s sole
responsibility.
The Department prepares an audit plan for each fiscal year andaudits various aspects of Company business operations, including
accounting (to ensure reliability of financial reports) and asset
management (to verify legal and regulatory compliance), as well as
the effective function of internal controls systems needed toensure the propriety of business operations at the head office andall branch offices.
Immediately after the audit, an audit report is prepared andsubmitted to those responsible for management. Follow-up
activities address the current status of corrective measures for
issues identified in the audit.

AEO customs broker

Operation and widespread awarenesspromotion of the internal whistleblower system
The Kamigumi Corporate Ethics Helpline is as an internal
whistleblower system designed to swiftly detect and prevent
violations of laws and regulations, improprieties, and similar issues
and to improve the Company’s internal self-governing functions.
The Compliance/Risk Management Committee and the Audit &Supervisory Board are responsible for reporting matters that
violate the Company Articles of Incorporation and compliancerules such as compliance violations, harassment, and corruption,
including bribery, and ensure the anonymity of whistleblowers andinvestigators when investigating reported matters. In FY2022,
twelve incidents were reported under this system.
Also, in addition to employee training
on the internal whistleblower system,to ensure that all employees areaware of the system, we put up
posters in workplaces and, so that
all officers and employees can use
the system with peace of mind,
made a guidebook, A.B.C. of the
Kamigumi Group Corporate Ethics
Helpline, and are working to see to itthat the system is operated
Poster for Kamigumi
appropriately.
Corporate Ethics Helpline

Basic stance on exclusion of antisocial forces
The Charter of Corporate Behavior explicitly calls for the Company
to renounce any interactions with antisocial forces. The Company
includes wording on exclusion of antisocial forces in various
contracts and maintains internal systems to audit compliance withsuch provisions. The Company strives to help secure order andsafety in civil society by advocating the principle of the “Three No’s(no fear, no monetary payment, no use)” vis-a-vis antisocial forces
and by ensuring thorough understanding and implementation ofthis principle throughout the Group.

33

ENVIRONMENTSOCIETY

GOVERNANCE

Risk management
Business Continuity Planning (BCP) initiatives

Responsible tax payment

Countermeasures in anticipation of major earthquakes
The Company prepared a BCP manual in anticipation of major
earthquakes, including the projected Tonankai and Nankai
Trough earthquakes. All sections, branch offices, andoperations have developed their own individual emergency
response measures to ensure business continuity.
In addition, once a year, the Risk Management Department
requests each branch office to carry out a self-inspection to checkfor any shortfalls in its earthquake readiness measures and also
verifies, by itself, the state of the maintenance of related systems.

The Company lacks subsidiaries with head offices located in
tax havens.

Fines for environmental violations
There were no environmental violations during FY2022. In
addition, fines were 0 yen.

 eployment of IP transceivers and periodicDcommunication drills
In addition to the need to collect information rapidly for
purposes such as checking on staff safety and ascertaining
damage in the event of large-scale disasters, the reliable
delivery of instructions and communications from the disastertask force are vital. Based on experiences with pastearthquakes, the Company has deployed IP transceivers at
each facility in Japan. IP transceivers can be used forcommunication even in cases such as power failures or
restricted telephone service. Periodic communication drills
ensure all employees know how to use the IP transceivers.

Information security
Information security initiatives
In addition to complying with various laws and regulations
concerning the protection of personal information, theCompany has established its own Information Security
Stndards.

Personal information and other information concerning third
parties is rigorously managed under the leadership of the Chief
Privacy Officer to safeguard against leaks and use for otherthan intended purposes.

Supply chain
Building equitable trading relationships
In accordance with the Act Against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors, which restricts
misuse of positions of advantage as described in the Act on
Prohibition of Private Monopolization and Maintenance of Fair
Trade, the Company fully complies with its obligations underthe Act to exchange documents and specify payment

deadlines in transactions with subcontractors.
By auditing payments and document retention, an
independent internal auditing section and the Financial
Management Department ensure that related operations are
implemented in compliance with the Act.

34

Materiality items (priorities)

Environment
Materiality item(subcategory): Lessening environmental impact

Topic

KPI(s)● Reducing CO2 emissions

Switching warehouse lighting to LED
Renewable power generation(Installation of solar panels at
controlled-temperature warehouses)
Switching from diesel- to battery-powered
forklifts
Use of electricity from renewableenergy sources● Promoting environmental management

Numerical target

Emissions reduction rate

46% reductions(vs. FY2013; reduction volume :45,575t-CO2)

Percentage of Company warehouses
transitioned to LED lighting

100% (end of FY2030)

Percentage of Company controlled-temperature
warehouses equipped with solar panels

100% (end of FY2030)

Percentage of sub-4t forklifts converted
to battery power
Electricity from renewable energy sources
as a percentage of all power used
Earning ISO 14001 certification* Emissions target for end of FY2030: 53,545 t-CO2

100% (end of FY2030)
30% (end of FY2030)
ISO 14001 certification earned at multiple
facilities, including head officeSociety
Materiality item(subcategory):

Creating attractive workplace environments in which
diverse human resources can thrive

Topic

KPI(s)

Numerical target● Promoting health management

Rate of use of paid vacation time

65% (end of FY2025)● Enhancing human resource development

Enhancing employee training by level
Women as a percentage of thosein management positions
Number of women officers and employees(including managerial positions)
Number of officers promoted from midcareerhires (including managerial positions)
Percentage completing training on
unconscious bias (managerial positions)

Enhancing the menu of training programs

Percentage of men taking childcare leave

100% (end of FY2024)● Respect for human rights and diversity

4% (end of FY2035)
20% increase vs. end of FY2022(at end of FY2025)
20% increase vs. end of FY2022(at end of FY2025)
10% (end of FY2025)

Materiality item(subcategory): Safety initiatives as a responsible enterprise● Accident prevention and mitigationin business● Enhancing resilience

Promoting earning the “G Mark”
for trucking safety

Earned at all sites

Number of serious accidents

Maintained at zero

Number of traffic accidents

30% reduction (YoY)

Number of workplace accidents

Workplace accident indicators
Frequency: 0.80 or lower
Severity: 0.03 or lower

Percentage of vehicles equipped withdrive recorders

100%

Business Continuity Plan (BCP) development
Number of facilities with IP wirelessphones installed

Completion of BCP formulation at all facilities

Drills for serious disasters

Once/year

Installation of emergency power supplies
or largecapacity batteries

Installed at major facilities (head office,Tokyo Office,Nagoya Branch, Fukuoka Branch)(end of FY2030)
Number of employees × 1.1 × 3 days’ supply

Stocking of emergency supplies

35

All facilities (end of FY2030)* Subject facilities: 27(number of facilities located in regions subject to promotionof countermeasures to Nankai Trough earthquake)

Materiality item(subcategory): Enhancing joint activities with local communities● Expanding corporate citizenship activities

Number of social contribution activities
implemented
Expanding contributions to athletics andcultural education(Growing)(Growing)

Materiality item(subcategory): Promoting business activities to meet society’s needs● Responding to customer needs andPromoting transport for facilities related tosocial infrastructures● Promoting digital transformation (DX)

Expanding DX measures adopted

social issues* Growing track record on transport for facilities
related to new energy/mobility infrastructure−−

GovernanceMateriality item(subcategory): Enhancing governanceTopic● Maintaining and developing optimal

KPI(s)

Numerical target

Percentage of principles of the amended
Corporate Governance Code complied with100%

Efforts related to assessing and improving theefficacy of the Board

One assessment completed by an external
agency by FY2025● Enhancing the oversight functions of the

Implementing sustained efforts to enhancethe oversight functions of the Board of Directors

Establishing an advisory committee pertaining tonomination and remuneration
Pursuing an appropriate structure for the Boardof Directors● Enhancing and improving the transparency

Enhancing and improving the transparency of
disclosures to improve understanding among
stakeholders

Enhancing and improving the transparencyof disclosuressystems for the Company● Improving the efficacy of Board of
Directors and audit functions
Board of Directorsof disclosures related to corporate
governanceMateriality item(subcategory): Thorough compliance● Raising awareness of compliance among

all employees● Preventing inappropriate behavior andinteractions in corporate activities● Awareness and use of compliance hotline

Number of serious compliance violations

0/yearEnhancing compliance education

Measures such as implementing compliancetraining using e-learning and other means

Awareness rate based on compliance surveys

Risk management in business office units
Preventing similar errors by sharing informationinternally
Using compliance textbooks and assessing
their effectivenessImproving awareness rates

Number of cases handled by hotline

Disclosure of number of cases

Reducing operational risk
Fostering understanding of businesscompliance

Materiality item(subcategory): Risk management● Enhancing information security

Number of times information security
training held
Number of incidents(e.g., information leaks, service downtime)
Promoting information security measures36

5-10 times/year
0/year
Disclosing details of promotional efforts(currently being examined chiefly by the
Cybersecurity Committee)

Certifications
Minato SDGs Partner Registration

G-Mark Certification as an Outstanding Safety
Business

We have registered with the Minato SDGs Partner Registration
System, a certification system for port-related companies led by the

G-Mark certification as an outstanding

Ministry of Land, Infrastructure, Transport and Tourism. We will strive
to become a more sustainable company by promoting the SDGs andsafety business is a program establishedtheir initiatives in our business activities, and by raising awareness ofby the Japan Trucking Association torecognize trucking companies that meet

the SDGs among our employees.

specific standards for traffic safety andother matters. We’re currently in theprocess of proactively gaining
certification under this program as
another way to strengthen transport
safety. We’ve already won G-Mark
Certification for 25 of our branches.

Healthy Company Statement
As part of efforts to be an outstanding
business enterprise in matters related
to health, we have issued a statement
pledging to strive to improve healthcompanywide. Our goal is to build
workplace environments in which
each and every employee can workin sound mental and physical healthwith a sense of vitality.

Kawasaki SDGs Gold Partner
We are pleased to announce that wehave been certified as a Kawasaki SDGs
Gold Partner, a registration andcertification system for companies andorganizations in Kawasaki City. The
certification allows us to participate in the
Kawasaki SDGs Platform. Through these
efforts, we will continue to enhance ourcorporate value and contribute to the
local community.

Halal Certification
We have acquired halal certificationfor our warehousing operation at
PT. Kamigumi Logistics Indonesia,
which is now handling halal healthfood products. We are committed
to meeting the rapidly expanding
demand for halal products.

AEO
As an authorized economic operator (AEO) recognized for outstanding
compliance structure and security management, the Company wasapproved as a special bonded warehouse business in June 2011 andauthorized as a certified customs clearance agent in January 2014.

ISO Acquisition Status
In order to enhance the effectiveness of environmental management,
we will promote the acquisition of ISO14001 certification, aninternational standard for environmental management. We will
monitor, measure, and analyze through regular internal audits toensure the effectiveness of our improvement activities.

37

Certification nameAcquisition ratio

Number ofcertified sites

ISO14001

5.1%

2/39