Sustainability Report

2 0 22Message from management .......... 1
Charter of Corporate Behavior ...... 2
Our basic perspective on
sustainability ...................................... 4
Environment ....................................... 6
Society ................................................. 12
Gover nance ....................................... 21
Materiality items (priorities) ............ 30

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 in

Our Corporate Philosophy states: By keeping up with

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

the times and carefully responding to the demands of anthat time, when few ports in Japan were open to the outside

ever-changing business environment, we will take on

world, we got our start as a cargo handling organization

challenges one step ahead of today’s needs while striving to

exclusively serving the agency that supervised export/importenhance our corporate value and the stability of ourcargo—in short, the agency performing the equivalent ofmanagement, with the ultimate goal of helping to build antoday’s customs operations. Today, we’ve grown into an

affluent society. We believe our efforts to implement thisintegrated logistics firm that handles operations ranging fromphilosophy will in itself promote the sustainability of both ourwarehouse storage to land transport, heavy cargo transport,

Company and society. In putting this philosophy into practice,and container terminal operations. We’re active in major ports

it is vital that we fulfill our responsibilities to diverse

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

stakeholders and earn their understanding and cooperation.

Japan is an island nation surrounded by water in every

Kamigumi will maintain its course moving forward while

direction. Naturally enough, sea transport plays a key role instressing the fundamentals: providing rewarding work in which

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

our employees can demonstrate their individual abilities innation’s export/import cargo. As a company involved

safety and with peace of mind; delivering services that satisfy

in a sector of such highly public nature, we seek to maintainour customers; building relations of trust with our businessthe important social infrastructure of harbor transport. The

partners; maintaining timely and appropriate disclosure andstability and progress of our business activities contribute tostable dividends to shareholders; fulfilling our duties tothe stability and progress of Japan’s logistics infrastructure.

regulators; building strong ties to local communities; andFor this reason, in addition to maintaining business stability

minimizing our environmental impact.

through debt-free management, we’ve continued to invest inenhancing our facilities and cargo handling equipment and in

Yoshihiro Fukai

tackling the challenge of providing new services. We will

President & Representative Director

remain committed to this approach.

1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 actively
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 therelevant authority and responsibility, 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• 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.

• 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.

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, andshelter. Japan is also a major power in international trade, with various major export industries including motor vehicles and otherindustrial 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 such cargo
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, our mission 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 otherstakeholders and strengthening our consideration for the environment, legal and regulatory compliance, safety, and governance. We
aim to pursue creation of new value capable of further enriching society, keeping in mind the sustainability of both society and theCompany 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, in addition
to complying with all applicable environmental laws,
regulations, and standards in our business activities, wewill take a proactive and voluntary role in activities that
protect the environment.

ENVIRONMENT

1. Enhancing Customer Satisfaction• Environmental management• Environmental Philosophy• Environmental Policies• Rules on Environmental Protection• Preventing global warming• Total energy use and carbon intensity in domestic businesses• 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• Reducing waste generation and ensuring appropriate waste
treatment• Water conservation initiatives• Provision of optimal logistics solutions

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.

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

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

3. Communication Activities
SOCIETY• Communication with shareholders and investors

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

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

4• Health and safety• Basic policy on transport safety• Transport safety management rules•G eneral Safety Manager/safety management organizational
structure• Gaining G-Mark certification as an outstanding safety business• Safety initiatives• Implementing safe-driving training• Implementing periodic health exams and stress checks

Charter of Corporate Behavior

Related items• 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• Employee training and education• Employing those with disabilities• Promoting women in the workplace• Encouraging employees to take childcare leave• Managing working hours to promote work-life balance• Labor management dialogue• Healthy Company Statement

6. Contribution to Local Communities

SOCIETY

We will take an active role in social contribution activities
to ensure harmonious coexistence with local
communities in our role as good corporate citizens.

8. Cooperation with International 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.

7. Response to Antisocial Forces• Coexistence with local communities• Kobe Port facilities experiential tour
• Mori no Sewanin forestry activities• Cleanup activities• Participation in community events• Social contributions• Sponsorship of social contribution activities• Sponsorship of the Kobe YMCA
• Contributing to local communities through international
businesses• Basic stance on exclusion of 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
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 and revise
the Charter accordingly, as well as establish effective
systems throughout the Group and thoroughly
implement the Charter’s provisions.

10. Responsibility of Top Management
GOVERNANCE

In the event of violations of the Charter, the top
management of Group companies must demonstrate,
both internally and externally, their determination to resolve
the problem, identify the cause, and take measures toprevent the recurrence of similar violations. At the sametime, top management must make prompt and full public
disclosure of the incident, thoroughly explain the incident,
and, upon clarifying the relevant authority andresponsibility, 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• Export/import controls• Operation and widespread awareness of the internal
whistleblower system• Internal audits• Business continuity planning (BCP) initiatives• Countermeasures in anticipation of major earthquakes• Deployment of IP transceivers and periodic communication
drills• Responding to COVID-19• Responsible tax payment• 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, 2021 – March 31, 2022
Scope of report: Kamigumi Co., Ltd.

Environmental
management

Preventing global
warming

Effective resource use

7

Environmental Philosophy

10

Environmental Policies

Total energy use and carbon intensity indomestic businesses

11

7

Reducing waste generation and ensuring
appropriate waste treatment

7

Rules on Environmental Protection

10

Managing CFCs

11

Water conservation initiatives

10

Promoting eco-friendly driving

10Adopting energy-conserving and low
pollutant vehicles

10

Energy conservation activities in offices,
warehouses, and other facilities

10

Switching to LED lighting

11

Reducing CO2 emissions through thesolar power business

Disclosures based on
TCFD recommendations
12

Disclosures based on TCFD
recommendations

6

ENVIRONMENTSOCIETY

GOVERNANCE

Environmental management
Environmental Philosophy

tailored to their respective businesses, in conformity with theseRules, thereby pursuing Group-wide environmental activities
on a continuous basis.

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 and protection of
the environment. The Company strives to reduce its environmental
impact through the implementation of environmentally conscious
business practices and to promote continuous Group-wide
environmental protection activities, thereby contributing to society.

Article 3 : Environmental Policy
As a distribution service provider, the Company shall strive tooffer a comprehensive range of environmentally friendly
distribution services, by promoting transportation efficiency
improvement measures and modal shifts. The Company shall
implement environmental management in accordance with thefollowing principles.
(1) Endeavor to protect the global environment, by complying
with laws, regulations, ordinances and rules relating toenvironmental conservation.
(2) Endeavor to make effective use of limited natural resources
and prevent environmental pollution, by promoting resourcesaving, energy saving, recycling, reuse, waste reduction
and proper treatment, and pollution emission reduction.
(3) Endeavor to continually improve its environmental
performance, by setting environmental goals, taking into
account various environmental impacts associated with ourbusiness activities; by implementing planned environmental
activities in a systematic manner to achieve the set targets;and by periodically reviewing our activities.
(4) Implement environmental education, training and internal
publicity activities to raise employees’ understanding andawareness of global environmental issues and increase
their participation in environmental activities, thereby
promoting smooth environmental management.
(5) Disclose the Environmental Policy widely to the publicthrough our website and other means.

Environmental Policies
1. To protect the global environment, the Company shall comply
with laws, regulations, ordinances and rules relating toenvironmental 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 associatedwith our business activities; by implementing planned
environmental activities in a systematic manner to achieve
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 widelyto the public through its website and other means.

Article 4 : Environmental Protection Promotion System
1. The Chief Executive Officer of the Company shall oversee
the environmental management of the Kamigumi Group.
2. The Company’s Chief Executive Officer shall establish theEnvironmental Protection Promotion Headquarters (“theHeadquarters”), composed by members of the Management
Department of the Company’s Registered Head Office, topromote effective environmental management across theGroup. Also Chief Executive Officer must appoint a director
in charge of the Management Department, or an equivalentdirector, to serve as the Chief of the Headquarters (“theHeadquarters Chief ”).
3. The Headquarters Chief shall act on behalf of the Chief
Executive Officer to promote the Group’s environmental
activities. The Headquarters Chief shall establish anenvironmental protection promotion system, as per the
Attachment. The Headquarters Chief shall also, in accordancewith the Environmental Policy prescribed in the precedingarticle, ensure that environmental targets for the entire Groupare set, that environmental activities planned to achieve theset targets are implemented systematically and smoothly,
and that environmental activities are periodically reviewed.

Rules on Environmental Protection
Chapter 1. General Provisions
Article 1 : Purpose
The Rules shall define the matters necessary to implementing
the Company’s environmental philosophy which, based on therecognition that protection of the global environment is a vitalcommon theme to all human beings, seeks to contribute tosociety by minimizing environmental impact through theimplementation of environmentally conscious businesspractices, and by promoting continuous Group-wide
environmental protection activities.
Article 2 : Scope of Application
The Rules shall apply to the Company and its Group companies.
The Company shall require its Group companies to formulate
their own environmental rules (including environmental policies)

7

ENVIRONMENTThe Headquarters Chief shall direct, supervise and oversee
the planning and implementation of the Group’s environmental
protection programs, so as to ensure continuous
improvement in environmental performance.
4. The Headquarters Chief shall establish an Environmental
Protection Promotion Chapter (“the Chapter”) at eachbranch, etc., and appoint the head of each branch, etc.,(including Department Managers at the Registered Head
Office, Branch Managers, Division Managers andrepresentatives of the Group companies) to serve as theChief of the Chapter (“the Chapter Chief ”).
5. To support the duties of the Headquarters Chief, the Chapter
Chief shall cooperate with the Headquarters to manage,
supervise environmental education, and train employees forenvironmental activities at their respective chapters. In
addition, the Chapter Chief shall carry out the duties
described in the following clauses:(1) In the case of a Group company, establish anenvironmental protection promotion system whichmodeled after the Company’s system, and promote
environmental protection activities in cooperation with
the Headquarters.
(2) Every branches has to setup their own businessactivities goals for the achievement of the Group’s goals
based on the advance notification from the HQ. After,
submit the goals to the Headquarters before executing
environmental protection activities.
(3) Summarize the implementation status and results of theenvironmental activities mentioned from Chapter 2 toChapter 5 in “Environmental Reports”, and submit to the
Headquarters either periodically or upon request fromthe Headquarters.
(4) E stablish a system to collect and organize data necessary
to implement continuous environmental protection activities,
and to submit these data to the Headquarters, periodicallyor upon request from the Headquarters.
6. The Headquarters shall review the reports submitted fromeach Chapter, pursuant to the provisions of Clause 3 of thepreceding paragraph, and assess and record each Chapter’s
performance (achievement level against the targets,
implementation status against the plan, and status ofcompliance with legal requirements). The assessment results
shall be submitted to the Headquarters Chief.
7. If nonconformance is detected during the examination of theresults submitted pursuant to the provisions of the preceding
paragraph or if the occurrence of nonconformance is predicted,
the Headquarters Chief must promptly advise the relevant
Chapter to take appropriate remedial or preventive measures.
Based on the assessment results, the Headquarters shallreview the Group’s environmental protection activities andmake improvements, and establish environmental targets
for the next term. The Headquarters Chief shall report thesefacts to the Company’s Chief Executive Officer, whom
oversees the environmental management of the Group.

SOCIETY

GOVERNANCE

Chapter 2. Vehicle-Related Environmental
Protection
Section 1 : Environmental Protection through
Eco-Driving
Article 5 : Promotion of ECO-Driving
The Chapter Chief shall appoint appropriate persons at his/herchapter to serve as Eco-Driving Promoters. The Chapter Chiefshall have the Eco-Driving Promoters conduct education andtraining programs on eco-driving techniques. The Chapter
Chief shall oversee and supervise the implementation of thosetraining programs.
Article 6 : Eco-Driving Methods
Employees of the Company and its Group companies shall apply
the eco-driving techniques listed below, when driving a vehiclewhether it be a company vehicle or a private vehicle, to reduce
environmental impact while driving as well as to save energy.
(1) Idling stop.
(2) Drive at an economical speed.
(3) Avoid jack-rabbit starting and unnecessary acceleration.
(4) Shift up earlier when driving manual transmission cars.
(5) Use engine braking effectively.
(6) Avoid gunning the engine when unnecessary.
(7) Avoid unnecessary parking or stopping.
(8) Do not carry unnecessary luggage.
(9) Reduce the use of air conditioning.
(10) Select a route with the minimum distance.
(11) Receive regular check-ups and maintenance and keep
tire pressure at an appropriate level.

Section 2 : Compliance Efforts for Regulations
on the Types of Vehicles
Article 7 : Development of Vehicle Plan
The Chapter Chief shall develop a plan regarding the introductionof new vehicles, the replacement/retirement of existing vehicles,
etc., taking into account legal restrictions on vehicle types andthe Company’s environmental impact reduction and energy
saving policies. The Chapter Chief shall also manage the vehicles
in the Chapter’s fleet appropriately in accordance with thevehicle plan developed.
Article 8 : Introduction of Low-Emission,
Fuel-Efficient Vehicles
The Chapter Chief shall endeavor to introduce low-emission,
fuel-efficient vehicles with less environmental impact (vehicles
types listed below). In introducing new vehicles, the Chapter
Chief shall take advantage of government incentive programs
such as subsidies and tax-breaks, whenever possible.
(1) Natural gas vehicles(2) Electric vehicles(3) Hybrid vehicles

8

ENVIRONMENT(4) Methanol-fueled vehicles(5) Gasoline-fueled vehicles (fuel-efficient, low-emission)(6) Diesel-fueled vehicles (fuel-efficient, low-emission)

SOCIETY

GOVERNANCE

Article 14 : Separation of Waste
To facilitate proper waste disposal, the Chapter Chiefs shallendeavor to ensure that all waste discharged from theirbusiness sites is separated properly in accordance to the wasterseparation rules of their respective municipalities.

Section 3 : M anagement of Vehicle Inspection &Maintenance and Vehicle Operation Status

Chapter 5. Comprehensive Efficiency
Improvement

 rticle 9 : Inspection and Maintenance of Vehicles
A
The Chapter Chief shall oversee and manage the inspection
and maintenance of Chapter-owned or -operated vehicles.
The Chapter Chief shall endeavor to maintain emissions of air
pollutants within the regulatory limitations through proper
implementation of statutory regular inspections, and daily
pre-work inspections by drivers.

Article 15 : Improvement of Comprehensive Efficiency
In response to the government’s move to advance the integrationand streamlining (“comprehensive efficiency improvement”) ofdistribution businesses, as a distribution company offering acomprehensive range of services-from transportation, storage,
and container handling to distribution processing(“comprehensive distribution company”)-the Company shall, in
cooperation with its customers (refers to shippers, etc.;
hereinafter the same), take various measures to improve
comprehensive distribution efficiency, thereby reducing impact
on the environment. Such measures include: integration oftransportation networks, shared distribution, increasing
loading ratio, promotion of modal shifts, etc., as described in
the subsequent article, and improvement and construction of
distribution base facilities. Furthermore, when it is deemed
possible to apply for the certification of a comprehensive
efficiency improvement plan, as defined in the laws (refers to
the Act on the Advancement of Integration and Streamlining ofDistribution Businesses, etc.), the Company shall make arelevant application in order to receive special treatment,
including a tax break for distribution center facilities.

Article 10 : Management of Vehicle Operation Status
The Chapter Chief shall manage and analyze the operation
status of the Chapter-owned or -operated vehicles. In an effort
to reduce environmental load and save energy, the Company
shall actively implement measures, such as increasing loading
ratio, securing backhauls and minimizing travel distance, andpromote continuous improvement on vehicle operation.

Chapter 3. F acility- and Equipment-Related
Environmental Protection
Article 11 : Energy Saving of Facilities, etc.
1. The Chapter Chief shall strive to promote energy saving of
the facilities (including incidental facilities; hereinafter thesame) that the Chapter owns or operates, through proper
maintenance, management, and improvements (refers to
improvements and repairs of facilities, new installation andreplacement of equipment, etc.). The Chapter Chief shallalso promote rationalization and efficiency improvement of
the relevant facilities.
2. When installing or replacing equipment in a facility which the
Chapter owns or operates, the Chapter Chief shall introduce
the energy-saving equipment most appropriate for the relevant
facility, and for business activities. In introducing new
equipment, the Chapter Chief shall take advantage ofgovernment incentive programs such as subsidies andtax-breaks, whenever possible.

Article 16 : Promotion of Modal Shifts, etc.
As a comprehensive distribution company, the Company shallcooperate with its customers to strive to reduce its
environmental impact by actively promoting modal shifts,
combining truck transport with inland waterways and rail in a
cost-effective and efficient manner, and by increasing the useof larger transport equipment and vehicles in accordance with
the increased cargo volume.

Chapter 6. Revision and Abolition of the Rules
Article 17 : Revision and Abolition of the Rules
The Rules shall be revised or abolished after an affirmative
vote of more than two-thirds of the Headquarters Chief andChapter Chiefs by the approval of the Chief Executive Officerof the Company, who oversees the Company’s environmental
management. When the Rules are revised or abolished, Group
companies shall, accord with the intentions of the revision or
abolition of the Rules, promptly revise or abolish theirenvironmental protection rules, established under Article 2.

Chapter 4. P romotion of Waste Reduction,
Proper Waste Treatment andRecycling, etc.
Article 12 : Waste Emission Reduction, etc.
The Chapter Chiefs shall endeavor to reduce environmental
impact resulting from their business activities by promoting
waste reduction and proper waste disposal.
Article 13 : Efficient Use of Natural Resources
The Chapter Chiefs shall endeavor to make effective use oflimited natural resources, promoting by recycling and reuse ofwaste arising from the business activities.

Supplementary ProvisionArticle 1 : Revision and Abolition of the Regulations
These Rules shall take effect on December 1, 2006.

9

SOCIETYENVIRONMENTGOVERNANCE

Preventing global warming
Carbon dioxide (CO2) emissions and carbon
intensity generated by our domestic
businesses activities

Adopting energy-conserving and low pollutant
vehiclesAs one measure to help prevent global warming, we purchasevehicles characterized by low levels of pollution and fuelconsumption.

We strive to reduce carbon dioxide (CO2) emissions in ourdomestic business activities through efficient use of energy.
We take a proactive approach to promoting initiatives that
reduce our environmental impact.

Energy conservation activities in offices,
warehouses, and other facilities<Formula for calculating carbon intensity>
Numerator: CO2 emissions (t-CO2)
Denominator: Nonconsolidated operating income (millions yen)

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 the wintermonths (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.

CO2 emissions and carbon intensity
CO2 emissions

Intensity（t-CO2）120,000

0.6

92,32487,44290,88980,000Electricity use

0.4

0.367

(10,000 kWh)

0.347

0.358

15,00040,0000.2

14,337.9

14,038.3

13,756.7

2019

2020

2021

12,000

9,000
0

0

2019

2020

2021

(FY)

6,000

Managing CFCs

3,000

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
activities and reports on leak volumes to the relevant authorities.

0(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.

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.

10

ENVIRONMENT

Reducing CO2 emissions through the solar
power business

SOCIETY

GOVERNANCE

Generating power and reducing CO2 emissions
through solar power
Power generation

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 34 million
kWh of electricity—equivalent to the annual power consumptionof some 11,000 typical households. The business helps reduce
CO2 emissions by around 16,800 tons.

CO2 emissions reductions(10,000 kWh)(t-CO2)4,000

25,0003,578.3

3,624.9

17,40017,7003,000

3,434.3
20,00016,80015,0002,000
10,000

1,000
5,000

0

2019

2020

2021

0
(FY)

Effective resource use
Reducing waste generation and ensuring
appropriate waste treatment

Water conservation initiatives
The Company strives to conserve water on a day-to-day basis
to protect and sustainably use water resources. The volume ofwater we used in FY2021 totaled 265,296 cubic meters.

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 generation and 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.

Water usage(m3)
400,000

300,000

296,046

286,929265,296

200,000

100,000

0

11

2019

2020

2021

(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 climatechange to financial markets and disclose information in accordance with therecommendations of the TCFD: governance, risk management, strategy, andindicators and targets.

GovernanceKamigumi has established an Environmental Protection Promotion Headquarters, for which the Director responsible for administrative
sections serves as General Manager, to consider and make decisions on matters related to environmental change. The Environmental
Protection Promotion Headquarters considers and makes decisions on related policies and measures, and reports on importantmatters or refers them as necessary to the Board of Directors for consideration. This Headquarters also manages progress and results
related to the Company’s identified materiality items, including decarbonization targets, and reports to the Board of Directors at least
once a year on the need for improvements and related issues.

Board of Directors
Advising / instruction

Proposals / progress reports

Environmental Protection Promotion Headquarters
General Manager: Director in charge of administration department
Members: Heads of administrative functions
General Managers of General Affairs Dept/Personal Affairs Dept./
Financial Management Dept./Information Systems Dept./
Management & Planning Dept./Internal Audit Dept./Risk Management Dept.
Secretariat: General Affairs Dept.

Raising awareness/promotion

Progress reports

Each business division, branch/office, subsidiary

Risk management
The Environmental Protection Promotion Headquarters plays a central role in Kamigumi’s efforts to identify risks and opportunities
related to climate change over the medium to long term based on both the 2°C and 4°C scenarios. The Environmental Protection
Promotion Headquarters periodically reassesses risks and opportunities thus identified and reports on or submits them forconsideration to the Board of Directors at least once a year.

12

ENVIRONMENTSOCIETY

GOVERNANCE

Strategy
Kamigumi has analyzed the potential financial and business impact of climate change risks and opportunities over the medium to longterm based on various parameters, envisioning a 2°C scenario (under which strong countermeasures to climate change keep thetemperature rise since prior to the Industrial Revolution within 0.9–2.3°C) and a 4°C scenario (under which no further countermeasures
to climate change are taken and the temperature rise since prior to the Industrial Revolution is 3.2–5.4°C).
Impact on profit/loss*(estimated for FY2030)

Anticipated risks and opportunities
Category
Risks

Opportunities

2°C

4°C

Increasing costs due to carbon taxes, etc.
Policies andregulations

Transition
risks

Technologies

Increasing cost of securing certificationof Company emissions targets(e.g., non-fossil-fuel certificates)
Increasing costs of adopting ecofriendly
machinery and equipment
Lower energy costs
Reduced operations due to revisedenergy mix
Increased operations due to efforts
to promote renewable energy

Markets

Increased operations due to efforts
to promote low carbon transport(e.g., for domestic maritime shipping)AcuteService interruptions due to damage caused
by abnormal weather to Company facilities
and longer times required for recovery

Chronic

Increased labor costs accompanying lower
work efficiency as working conditions worsen
in the summertime / rising environmental
improvement costs

Physicalrisks* Impact on profit/loss is indicated by positive (+) or negative (−) symbols. The larger the number of symbols, the greater the impact is expected to be.

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 targets
as 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 achievingcarbon neutrality is a global goal.
Approx.
(Unit: t-CO2)

99,120−8%

Approx.

− 46%

90,88953,545FY2013 actual

FY2021 actual13

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, 2021 – March 31, 2022
Scope of report: Kamigumi Co., Ltd.

Health and safety

Our mission asa logistics businessRespect for human rights

15

Basic policy on transport safety

19

Employee training and education

Transport safety management rules

Reducing CO2 emissions throughthird-party logistics (3PL)

19

15

19

Employing those with disabilities

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

20

Promoting women in the workplace20

Encouraging employees to takechildcare leave

20

Managing working hours to promote
work-life balance

18

General Safety Manager/safety
management organizational structure

1918

Gaining G-Mark certification as an
outstanding safety business

18

Safety initiatives

18

Implementing safe driving training

20

Labor management dialogue

18

Implementing periodic health exams andstress checks

20

Healthy Company Statement

Communication
Activities

Coexistence with local
communities

Social contributions

20

21

Kobe Port facilities experiential tour

22

21

Mori no Sewanin forestry activities

Sponsorship of social contribution
activities

21

Cleanup activities

22

Sponsorship of the Kobe YMCA

21

Participation in community events

21

Contributing to local communities throughinternational businesses

Communicating with shareholders andinvestors

14

ENVIRONMENTSOCIETY

GOVERNANCE

Health and safety
Basic policy on transport safety

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

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.

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) Compliance 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) Planning 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. Organizational 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.

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

Article 8 : A
 ppointing and dismissing the General Safety
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.

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
to transport safety.

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.
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.

Article 17 : M
 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) organizational 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

ENVIRONMENTThe Company regards safety as fundamental to its businessactivities. A responsible representative director serves as theChief Safety Officer. A safety manager is appointed at the head
office and at each branch office. Twice a year, the Company
holds companywide safety conferences. These events areattended by the President, directors responsible for safety,
and safety managers from all branches.
Branch safety activities are implemented by dividing all
branches into five regional groups. In each group, the safety
patrol team visits all sites every three months (quarterly).
In addition, by accumulating experience through sharing
of information among all branches concerning accidents andnear-accidents that have occurred in the individual workplacesof each branch, we strive to prevent similar accidents fromoccurring.
Thanks to such activities, our accident incident rate (anindicator of the frequency of accidents involving death or injury
on the job) over the most recent three years is lower than the
average for all industries.

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

General Safety Manager/safety management
organizational structure

General Safety Manager

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.

Incident rate
Kamigumi

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

Cooperation

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

Secretariat

2.0Internal Audit
Department(Coordinates and manages safety
management operations.)

1.0

Assistant General
Safety Manager
Reports on accidents, injuries

Average for all industries

(%)
3.0

Board of Directors

Central Health and
Safety Council

GOVERNANCE

Safety initiatives

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.

Reporting

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

1.80
0.95

1.95

2.09

0.96
0.42

Internal audits

0

2019

(Handles transport safety administration.)

2020

2021

(FY)

Implementing safe driving training
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

To manage driving safety, the Company is proactively installing
dash cameras on its vehicles. As of May 2022, dash cameras
had been installed on 829 vehicles (a total of 1,089 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
that all 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.

Gaining G-Mark certification as an outstanding
safety business
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 24 of our branches.

Implementing periodic health exams and stresschecksWe provide periodic health exams and stress checks for all
employees to ensure they can continue to work in good
health.

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 toadjoining warehouses. After customs clearance, we manage
the cargo in storage and, upon the order from the shipper,
prepare for delivery (quantity adjustments and packaging) andship the cargo directly to retailers. This reduces transport andindirect 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 transportsystem in which customer cargo that would have been
unloaded at the Port of Tokyo during normal times is unloadedat the Port of Kobe, then transported to the Tokyo area by rail.

Respect for human rights
Employee training and education

Employing those with disabilities

Through various educational and training programs, we support
employee career building and skills development. In particular,
we provide the following training tailored to individual career
stages to convey the knowledge employees should have in lightof the Company’s business activities.

We strive to comply with the business employment obligationsof the 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.

Examples of training programs suited to the Company’s business

Percentage of employees with disabilities

activities(%)• Classroom training for new hires• Safety training• Training on the Warehousing Business Act• Training on the Port and Harbor Transportation Business Act• Compliance training• Training for midlevel managers• Training led by licensed social insurance consultants,
certified public accountants, former customs personnel, etc.
• Training for earning registered customs specialist
qualifications

3.0

2.26

2.33

2.28

2020

2021

2.0

1.0

In addition, as part of compliance training, we’ve adopted theHorei Focus* program at the head office and each branch office.
This compliance support program will make it possible to obtainthe latest information on legal and regulatory amendments.

0* Horei Focus program: Program operated by Dai-Ichi Hoki Co., Ltd. that
automatically sends information on legal and regulatory
amendments to registered email addresses

19

2019

(FY)

ENVIRONMENT

Promoting women in the workplace

SOCIETY

GOVERNANCE

Managing working hours to promote work-lifebalance

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.

Maintenance of a working environment in which employees cancontinue to work with a sense of vitality, in sound mental andphysical health, is vital to sustained and stable businessprogress. In addition to managing working hours to enable
management to target a work-life balance, we also take steps
to ensure the auditing sections of each branch office and thehead office verify related matters from a compliance
perspective.

Encouraging employees to take childcare leave
Labor management dialogue

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.

Seeking to achieve workplaces comfortable for all our workers,
we engage in labor management negotiations with the
Kamigumi Employees’ Labor Union. We strive to reflect theviews of employees in management.

Employees newly taking childcare leave(People)Healthy Company Statement40

36
As part of efforts to be an
outstanding businessenterprise in matters related
to health, we’ve issued astatement pledging to strive
to improve healthcompanywide. Our goal is tobuild workplaceenvironments in which eachand every employee canwork in sound mental andphysical health with a senseof vitality.

30

22
20

20

10

0

2019

2020

2021

(FY)

Communication
Communication with shareholders andinvestors
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.

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.

In addition, the Company seeks to win understanding of its
business conditions, strategies, and other matters throughannual briefings on financial results for institutional investors
and analysts.

(Related information)
Disclosure Policy

20

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 andnorms.

Kobe Port facilities experiential tour

Participation in community events

This initiative strives to help familiarize the children of Kobe
residents with work in the port by guiding them on tours of thecontainer terminal, logistics center, and other facilities.

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)

Mori no Sewanin forestry activities
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.

Community Festa (Fukuyama)

Tug-of-war tournament (Oita)

Contributing to local communities throughinternational businesses
We support improvements to the social infrastructure and dietin Myanmar through our logistics activities.
As it undergoes rapid economic growth together withdemocratization and economic liberalization, Myanmar is seeing
increasing entry of foreign firms, rapid growth in personal
consumption, and Westernization as well as diversification ofits diet and increasing dietary intake.
Myanmar relies on imports for most of its food.
Accordingly, we have established a joint venture with a
Myanmar firm involved in various food-related businesses tohelp build systems that will lead to more stable and lower-cost
imports of food products.

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

21

ENVIRONMENTSOCIETY

GOVERNANCE

Social contributions
Sponsorship of social contribution activities

Sponsorship of the Kobe YMCA

Based on an emphasis on community partnerships, we pursue
various ongoing initiatives to aid society, including donations
that further the social and public good.

We support and sponsor various programs and activities of
the Kobe YMCA, a nonprofit organization that supports youth
through a wide range of initiatives in wellness, language
education, and other spheres.

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 orphansand people from welfare facilities, including facilities serving
mothers and children, via Kobe City and Hyogo Prefecture toview official matches at Vissel Kobe’s home stadium.

22

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

24

Basic concept of corporate governance27

Basic policy on internal controls systems

Compliance structure and state ofoperations

28

24

Business Continuity Planning (BCP)
initiatives

25

Appointing external Directors and Audit &Supervisory Board members

27

Promoting compliance and risk
management activities

28

Responsible tax payment

26

Composition and meetings of the Board of
Directors

27

Export/import controls

27

Operation and widespread awareness of
the internal whistleblower system

27

Internal audits

27

Basic stance on exclusion of antisocial
forcesInformation security

Supply chain

29

29

Information security initiatives

Building equitable trading relationships

23

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.
State of the risk management structure
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 FY2021.)
 tate of initiatives related to securing efficacy andSefficiency in business execution
In FY2021, the Board of Directors consisted of ten members(including two external Directors) and met 15 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 FY2021 to make timely
decisions on business matters.

24

ENVIRONMENTSOCIETY

GOVERNANCE

Appointing external Directors and Audit & Supervisory Board members
External Directors (four 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.

Mitsuo Suzuki

Mr. Suzuki brings considerable knowledge of compliance and organizational management gained from experience in key
positions with various prefectural police departments during his long career in police administration. While he lacks experience
with direct involvement in corporate management in the past, Mr. Suzuki was appointed an external Director in the
expectation that he will contribute to the strengthening and advancement of the Company’s governance through meetings ofthe Board of Directors and other opportunities.
No known conflicts of interest exist between the Company and Mr. Suzuki. 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.

Osamu Hosaka

Mr. Hosaka brings considerable knowledge, primarily related to resupply and transport, gained from experience as ahigh-ranking officer in the Japan Ground Self-Defense Force. While he lacks experience with direct involvement incorporate management in the past, Mr. Hosaka was appointed an external Director in expectations that he 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 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 amanufacturer of 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 theCompany 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
and criteria 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.

25

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 2022, the Board
included 12 Directors (including four external Directors) and four Audit & Supervisory Board members (including three external Audit& Supervisory Board members), for a total of 16 members.
During FY2021, the Board met 15 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

2022

8

4

1

3

2021

8

2

1

3

2020

8

2

1

3

Board of Directors meetings and attendance rates(Results for FY2020)

Name

Position

Board of Directors meetings attended

Masami Kubo

Representative Director

15/15 times (100%)

Yoshihiro Fukai

Representative Director

15/15 times (100%)

Norihito Tahara

Representative Director

15/15 times (100%)

Toshihiro Horiuchi

Representative Director

15/15 times (100%)

Katsumi Murakami

Representative Director

15/15 times (100%)

Koichi Hiramatsu

Director

15/15 times (100%)

Yukihiro Nagata

Director

15/15 times (100%)

Kazuhisa Shiino

Director

15/15 times (100%)

Nobuko Ishibashi

Director (external)

15/15 times (100%)

Mitsuo Suzuki

Director (external)

15/15 times (100%)

Osamu Hosaka

Director (external)–

Harumi Matsumura

Director (external)–

Yasuo Kobayashi

Standing Audit & Supervisory Board member

15/15 times (100%)

Takumi Nakao

Audit & Supervisory Board member (external)

15/15 times (100%)Ai Kuroda

Audit & Supervisory Board member (external)

15/15 times (100%)

Tomokazu Hideshima

Audit & Supervisory Board member (external)

–

Note:
* Directors Osamu Hosaka and Harumi Matsumura, and Audit & Supervisory Board member Tomokazu Hideshima were newly appointed at the 83rd Ordinary General
Meeting of Shareholders on June 29, 2022, so they had not participated in any meetings of the Board of Directors.

26

ENVIRONMENTSOCIETY

GOVERNANCE

Compliance
Compliance structure and state of operations

appropriate export/import customs clearance forinternational cargo. It maintains a management system
based on these programs and goals.
In addition, as an authorized economic operator(AEO) recognized for outstanding compliance structureand security management, the Company was approved asa special bonded warehouse business in June 2011 andauthorized as a certified customs
clearance agent in January 2014.
Special bonded warehousebusiness: Registered bonded storage
location (52 sites nationwide)
Certified customs clearance agent: 37
sites nationwide
AEO warehouse operator(As of July 2022)
AEO customs broker

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
Raising employee awareness of compliance issues
Since FY2010, the Company has published the Risk
Management Bulletin (with the publication of its 325th issue asof the end of July 2022) to keep
employees abreast of various
compliance matters, alongside activities
in which employees read these together
in the workplace. The Risk Management
Bulletin is also used as teaching
Risk Management Bulletinmaterials in internal training.

Operation and widespread awareness promotionof 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 andthe Audit & Supervisory Board serve as whistleblowing contact
points under this system, responsible for investigating andaddressing matters reported. In 2021, eight
incidents were reported under this system.
Also, ensure that all employees areaware of the internal whistleblower system,
we made Pposters and, so all officers andemployees can use the system with peaceof mind, a guidebook, A.B.C. of the
Kamigumi Group Corporate Ethics
Poster for Kamigumi
Helpline, and are working to see to it that
Corporate Ethics
Helpline
the system is operated appropriately.

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, aswell as lessons gained from monitoring the response to risks
and compliance training (mutual checks and balances), to
ensure corporate management characterized by integrity.

Internal audits

Risk Management Periodic
Inspection Records

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

Compliance Textbook

Export/import controls
To maintain security in international logistics and help
facilitate international trade, the Company has establishedvarious programs concerning compliance with applicablelaws and regulations, as well as ensuring security and27

ENVIRONMENT

Basic stance on exclusion of antisocial forces

SOCIETY

GOVERNANCE

audit compliance with such provisions. The Company strives
to help secure order and safety 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 thoroughunderstanding and implementation of this principle throughout
the Group.

The Charter of Corporate Behavior explicitly calls for theCompany to renounce any interactions with antisocial forces.
The Company includes wording on exclusion of antisocial
forces in various contracts and maintains internal systems to

Risk management
Business Continuity Planning (BCP) initiatives

safety of our customers and other stakeholders, ouremployees, and their families.

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, and operations
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 tocheck for any shortfalls in its earthquake readiness measuresand also verifies, by itself, the state of the maintenance ofrelated systems.

Company-wide measures• Ensuring observance of staggered working hours• Implementation of telework for some employees• Wearing of masks, installation of acrylic panels around seats,and disinfection• Utilization of teleconferencing and telephone meetings• Implementation of temperature checks prior to attendance
at work• Voluntary restraint on business travel and visits to business
partners• Decentralization of offices, etc.

 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.

Offices with confirmed COVID-19 cases• Disinfection of work areas under guidance of health center• PCR testing for contacts* The above measures are implemented in addition to “Company-wide measures.”Responsible tax payment
The Company lacks subsidiaries with head offices located in
tax havens.

 esponding to COVID-19
R
As a corporation which supports social infrastructure, theKamigumi Group has implemented a variety of measures led
by the COVID-19 Countermeasures Taskforce. We are striving
to prioritize business continuity by emphasizing the health and28

ENVIRONMENTSOCIETY

GOVERNANCE

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
Standards.

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 forother than 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.

29

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

30

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 measures31

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