Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Relationship between Business Activities and the SDGs

SDGs and the business activities of the SENKOGroup, which fosters professional development
and supports consumers’ lifestyles

Priority
SDG
themes of
the
SENKO
Group

Logistics consulting / IT solutions / Contact center
operations / Temping services / Hotel operations /Real estate, etc.

Trade / Oil sales / Sales of
convenience goods, food, andalcoholic beverages, etc.

Living Support

Nursing and housework services /Fitness / General wholesale andretail / Childcare / Restaurant
operations / Agriculture, etc.

Crefeel Koto

Business Support

Trading &Commerce

The SENKO Group aims to resolve social challenges
and create new value through its businesses, basedon the core approach that economic activities can beachieved with a healthy global environment and agood relationship with local communities.

Traffic safety / Human
resources training / Children’s
Traffic Park, etc.

Priority
SDG
themes of
the
SENKO
Group

Logistics business
Shipping / Storage /In-factory operations /Economic level

Society level

Providing new value for society through business operations

Businesses that nurture people and support their daily lives

Promoting green
logistics in partnershipwith customers

Providing resilient
logistics service thatcan withstand natural
disasters

Developing a Living
Support business thatoffers nursing care,childcare, and healthservices

Logistics processing /International logistics, etc.

Fostering community
development throughagriculture andrevitalizing local
industry

Through our businessactivities, we look toresolve social issues
through initiatives thatinterconnect withsustainability
measures and tocontribute to therealization of abarrier-freesociety.

We promote dialog and cooperation with the local community and various stakeholders
associated with the SENKO Group to build a good relationship with society.

Human resources andorganization as the foundation

Sustainability
Safety initiatives
Health initiatives
Social initiatives

Sustainability of the global environment

17

SENKO INTEGRATED REPORT 2022

Reducing the energy use and carbon dependency ofshipping infrastructure (Introducing CNG-powered
vehicles and electric trucks)

Using recycledplastic pallets

Promoting healthmanagement
throughout the Group

Fostering thedevelopment of people
and business through
SENKO University

Traffic safety classes
for children atbusiness sites

Offering logistics
safety education andprofessional driver
training at Crefeel
Koto

Environmental level
Sustainability

Installing solar powerand energy-saving
equipment at PD
centers

Cooperation with society

Cooperating with the
Osaka Bay
Environment
Restoration Project

Environmental
measures

Minimizing the environmental impact of business activities
Recognizing our responsibility for energy consumption and greenhouse gas
emissions as a logistics company, we’re working to maximize understanding
and related reductions.

SENKO INTEGRATED REPORT 2022

18

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

A Message from the President

Becoming a group that delivers new value
to people and society around the theme ofconnectedness
SENKO Group Holdings Co., Ltd.
President and Representative Director
Chairperson, Sustainability Promotion Council

The SENKO Group exists to leverage logistics strengths

In addition to directly addressing issues faced bysituated at the center of the supply chain to create newcustomers’ businesses thanks to our in-house trading

value both upstream (in manufacturing) and downstream

functions, we can incorporate elements of operations(in sales), in line with a system of values that focuses onsuch as our Living Support business, which integrates

changing society for the better.

closely

with

consumers’

daily

lives

and

local

communities. I believe that marshaling all of its resources
The Group Philosophy adopted in 2017 describes ourto treat social issues as business opportunities andhighest mission as “continuously challenging efforts toembrace the challenge of resolving such issues throughcreate services and products as a corporate groupits business activities will be the key to the Group’s future

supporting people’s lives.” Our goal is to operate in thegrowth.

vicinity of lifestyles that consumers embrace as a matterof course by supporting not only business and industry,
but also people’s everyday lives through the developmentof businesses that support logistics as well as the needsof an aging society, health, food, and daily life.

On the publication of this Integrated Reportrefining the design of the report in the future so that it

In this way, we’ll work to realize ongoing growth by

To date, we’ve disclosed information about thecan serve as a communication tool for fostering

delivering new value to people and society while

importance of key issues for stakeholders and theWe’ve decided to publish the SENKO Integrated

constructive dialog with stakeholders by communicating

resolving social issues through involvement with people’s

Company from the perspective of CSR management

Report 2022 in place of the previous Annual Report andour initiatives for creating value in a sustained manner.

lives and industry.

along with associated initiatives as “key CSR measures.”

CSR Report.
The report provides a comprehensive picture ofmanagement strategies, financial information, andnon-financial content such as information about ESG

19

Evaluating materialities based on thecharacteristics of all the Group’s businesses
and investors’ perspective

In publishing this new Integrated Report, which

Operating in the vicinity of lifestyles
embraced as a matter of course

The Group’s strengths: Green logistics and adiverse array of business platforms thatconnect it to consumers and society

incorporates what you might call an integrated mindset,

businesses and assess materialities, including from thewe conducted an analysis of materialities while referringto international standards so that we could understandinitiatives in order to help shareholders, investors, andOur corporate slogan of “Moving Global” guides another stakeholders understand the SENKO Group’s

effort to go beyond logistics, make the world go round,

Although Logistics comprises the SENKO Group’s core

medium- and long-term value creation story. The Groupand revolutionize business. This approach signals ourbusiness platform, our active pursuit over many years ofis implementing sustainable management for its flagshipintention to pursue growth by developing businesses

not only truck logistics, but also a modal shift that

I believe that the work we've done to identify

Logistics business as well as other businesses. To helpthat augment logistics with additional services even as

combines in-house ships and other domestic marine

materialities has served to clarify the entire Group’s

readers understand value creation throughout thewe undertake business activities worldwide and moveshipping and rail elements and low-environmental-impact

materialities. In the Logistics business, which among ourGroup, this report incorporates ample illustrations,

the world’s goods, for example by entering thegreen logistics is a key strength of the Group. More thanbusiness segments plays a particularly important role,

photographs, and other visual elements in what we hope

distribution and manufacturing sectors in addition toanything else, these environmentally friendly logistics

decarbonization is a major theme. The Logistics businessis an easy-to-understand introduction to the SENKO

logistics, offering services that combine logistics withsolutions are a major asset that we can bring to bear in ourhas a direct impact on not only our own efforts to reduceGroup’s medium- and long-term growth strategies andsales,

business activities as society makes a concerted effort togreenhouse gas (GHG) emissions in our corporate

other aspects of its operations. We look forward to

manufactured ourselves.

realize decarbonization.

activities, but also on our customers’ GHG emissions,

SENKO INTEGRATED REPORT 2022

andtransporting

products

that

we’ve

the characteristics of the Group’s diverse portfolio ofperspective of investors.

SENKO INTEGRATED REPORT 2022

20

Strategies for Sustained Growth

Overview of the SENKO Group

Foundation for Growth

Data Section

A Message from the President

Pursuing business activities and growtharound the theme of connectedness

and moving forward with decarbonization in this domain
will have favorable impacts on society as a whole. To that
end, the entire Group will redouble its efforts to realize agreen transformation. I believe that human capital is thesource of the Group’s growth. As Japan’s population
continues to shrink, labor shortages have alreadybecome a challenge for the entire country. While it’s
critical to create a healthy, motivating work environment,
we’ll also work to boost productivity through such means
as developing employee skills and pursuing laborsavings, automation, and a digital transformation (DX)strategy in a variety of operations by utilizing ICT androbotics. We're also planning to develop businessfacilities that contribute to the health of both employees
and local residents and to community development, forexample through sports and childcare facilities at large
logistics centers.

The economic environment is expected to recovergradually in the future, despite concerns about issues
such as the situation in Ukraine, rising resource prices,and the direction of monetary policy in the U.S.
Against this backdrop, the Group formulated a new
Medium-Term Business Plan covering the five-year
period starting in FY2023. Under this plan, we’ll work toconnect supply chains, businesses, the next generation,and the world under the overriding theme ofconnectedness. To that end, strengthening humancapital and ensuring female employees can flourish
professionally will be major priorities.
We’re planning total investments of 290 billion yen
during the plan’s five years. The plan also envisions
manufacturing as new tentpole capability as we look to
tap more multifaceted sources of revenue apart fromlogistics. We’ll work to establish a successful track record

For more information about our materiality analysis, please see page 32.

Inputs (capital and strengths of the Group)

so that we can maintain a dividend payout ratio of 30%
while ensuring financial stability.
During FY2027, the final year of the plan, our goal is toachieve revenue of 1 trillion yen and operating profit of
45 billion yen.

Realizing sustained growth while working to
improve corporate value
The COVID-19 pandemic continues to affect supply
chains and consumer demand, and there continues to bea sense of uncertainty concerning the future direction of
the economy, including geopolitical risk, for example withregard to the situation in Ukraine, as well as exchange
rate and financial trends. Nonetheless, the Group willcontinue to work in a concerted manner to operate its
businesses, which comprise key infrastructure, while
giving priority to employee health and safety andcontinued employment.
We will also continue to precisely accommodate therequirements of international trends like the SDGs and
ESG governance, to actively incorporate new technologies
and the digital transformation (DX), and to strive to adopt
the latest corporate management practices.
We consider returning profits to investors andshareholders to be a key management priority. We pay a
performance-linked dividend in addition to a stable,
long-running dividend, and we will continue to strive toenhance shareholder returns while working to further
improve the payout ratio. The year-end dividend for the
fiscal year ended March 31, 2022, was 34 yen, reflecting
the Group’s solid performance during the year. We will
also redouble efforts to improve communication withinvestors.
The Group will continue to realize sustained growth
while treating changes in the business environment asopportunities, embracing the challenge of new fields andtechniques, and working to improve corporate value sothat it can meet the expectations of investors andshareholders.

Value creation process

Delivering new value to people and society
Six types of capital owned by the Group
Employee skills, experience, and appetite for innovation● Number of drivers and operators: 12,237 (up 98 from the previous fiscal

year)● Total assets

2,217 (up 940 from the previous fiscal year)● 19 consecutive fiscal years of rising revenue, 13 consecutive● Number of participants in educational and training programs at Crefeel

fiscal years of rising ordinary profit

Koto: 637 (down 35 from the previous fiscal year)● Cumulative number of graduates of SENKO University: 98 (up 13 fromthe previous fiscal year)

Assets the organization can use to produce
products or provide services

Financial

Human● Group companies: 161 (up 19 from the previous fiscal year)● Number of companies operating Living and BusinessSupport businesses: 21 (down 1 from the previous fiscal
year)● Total storage floor space: 4.06 million m2 (up 140,000 m2

Manufacturingfrom the previous fiscal year)

Socialrelationship● Total number of group vehicles (tractor head): 6,727 (up498 from the previous fiscal year)● Number of ships under management: 69 (unchanged fromthe previous fiscal year)

NaturalAll renewable and non-renewable environmental resources andprocesses for providing the goods and services that serve as thefoundation for the organization’s past, current, and future success● Modal shift rate: 76.1% (corresponding quarter of the previous fiscal year:

74.9%)● Number of solar power installations: 24 (up 2 from the previous fiscal year)● Solar power generation: 18,990 kWh (up 488 kWh from the previous fiscal

year)● CO2 emission reductions: 4,306 t-CO2 (up 1,011 t-CO2 from the previous

fiscal year)

21

SENKO INTEGRATED REPORT 2022

LivingSupport● Number of employees in the Living and Business Support businesses:● Equity ratio

Intellectual

Individual communities, stakeholders, groups, andother networks or their internal institutions andrelationships, and ability to share information inorder to increase individual and collective happinessMoving Global

Business

Go beyond logistics
Make the world go roundsuppor

Trading
Comme &
rce

Revolutionize business● Cumulative number of visitors to Crefeel Koto Children’s

Traffic Park: 158,613 (up 14,649 from the previous fiscal
year)● Number of annual participants in traffic safety classes:
306 (up 162 from the previous fiscal year)

Logistics
Materialities
ESG +HBusiness

baseOrganizational intellectual-based intangible assets● Logistics expertise (Crefeel Koto, an in-house training facility)● Consulting and system proposal capabilities (200 information SEs, 100

logistics SEs)

OUTCOMENew
businesses● Number of employees: 20,725 (up 1,531 from the previous fiscal year)

Capital that can be used to further business activities

INPUT

The Group’s unique values and capitaltw
Ne insamdoResolving social issues

ed
as l
e
r
Inc ocia ct
s
pa
im

n
tio
da wthnu
Fo r grofods
an ioning unctn
he f fgt t od f
ren men al an on o
t
S ce
s ati
o
n
p
ha Pro ent gies
enlemratep
im st[Long-term social value]●Realization of healthy, fulfilling
lifestyles●Development of resilient social andindustrial infrastructure●Contributions to the realization of asustainable society[Short- and medium-termsocial value]
Contributions to the SDGs andcarbon neutrality●Realization of connections between
businesses●Design based on new values●Realization of connections with theworld (society) towards a better
futureSENKO INTEGRATED REPORT 2022

22

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

New Medium-Term Business Plan
Overview of the new Medium-Term Business Plan

Looking back on the previous Medium-Term Business Plan
During the five years covered by the previous Medium-Term Business Plan, revenue rose 167.7 billion yen, or 36.8%,

The Group formulated a new Medium-Term Business Plan covering the five-year period starting in FY2023. Under thewhile operating profit rose 7.69 billion yen, or 45.0%. Performance failed to achieve the plan's targets due to factors

basic policy of “striving to achieve sustained growth by supplying new value to people and society through theincluding the application of revenue recognition accounting standards and the effects of the COVID-19 pandemic.

deepening and creation of businesses,” the Group will address five key issues under the plan: (1) expanding anddeepening existing businesses, (2) creating and fostering the development of growth businesses, (3) implementing
ESG+H (health) management, (4) practicing more sophisticated management, and (5) increasing motivation andPrevious Medium-Term Business Plan: Targets and results
FY2017

realizing personal growth among employees.

FY2022Difference(1) Results(2) Medium-TermBusiness Plan target(3) Results

Revenue

Hundreds ofmillions of yen

4,554

7,000

6,231

Operating profit

Hundreds ofmillions of yen

170.8

280.0

247.7

(3)-(1), vs. FY2017(3)-(2), vs. target

1,677

(769)

36.8%

76.9

(32.3)

45.0%

Operating profit margin

%

3.8

4.0

4.0

0.2

—

ROE

%

9.5

10.5

10.8

1.3

0.3

0.58

0.64

0.95

0.37

0.31

35.1

40.2

30.6

(4.5)

(9.6)

Net D/E ratio
Equity ratio%

Logistics center storage area

Number of company vehicles[Tractor head]

FY2017FY2017

3.22

4,426

13,915

FY2022

4.06
million m2

Connecting supply chains

Connecting the world

Go beyond logistics
Connecting supply chainsby moving beyond the framework of
conventional logistics businesses

Make the world go round
Becoming an international business thatconnects the world by undertaking
business activities worldwide

Connectedness

Number of employees

FY2017

million m2

New Medium-Term Business Plan slogan

Connecting all businesses

Connecting to the next generation

Revolutionize businessConnecting all businesses in the world sothat we can provide new value

Passing the baton
Becoming a business where the next generation of
employees, who will be responsible for the future,
can grow and flourish professionally

Key issues identified by the new Medium-TermBusiness Plan
FY2022

6,727

FY2022

20,725

Expanding and deepening existing businesses
Creating and fostering the development ofgrowth businesses
Implementing ESG+H (health) management

SENKO INTEGRATED REPORT 2022

Revenue(hundreds of millions of yen)

Operating profit(hundreds of millions of yen)

10,000

450

6,231
248

Practicing more sophisticated management
Increasing motivation and realizing personal
growth among employees

23

Overall numerical targets under the new
Medium-Term Business Plan

FY2022
Results

FY2027
TargetFY2022
Results

FY2027
Target

SENKO INTEGRATED REPORT 2022

24

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

New Medium-Term Business Plan

Targets and key measures by business under the new Medium-Term Business Plan
Expanding and deepening existing businesses

Creating and fostering the development of growth businesses● Expanding existing business domains ● Further globalizing operations

Logistics business● Further expanding the Living Support and Business Support businesses ● Embracing the challenges of new businesses (manufacturing, etc.)

capabilities and the stability of our directly operated approach

Revenue(hundreds of millions of yen)

Operating profit(hundreds of millions of yen)
Operating profit margin

346

6,450

● Strengthening logistics facilities and vehicle structures andpursuing M&As

Cold logistics

800

FY2027
TargetFY2022
Results

48
6.0%

5.4%
FY2027
Target

Health domain

COVID-19 pandemic and expanding the number of outlets weoperate● Pursuing M&As in the health, lifestyle, and food domains

-7
-2.4%

● Increasing our market share by increasing the amount of

FY2027
TargetFY2022
Results

FY2022
Results

FY2027
Targetshipping space

Trading & Commerce

1,950

Revenue(hundreds of millions of yen)

Operating profit(hundreds of millions of yen)
Operating profit margin

38

1,461

FY2022
Results

FY2027
TargetRevenue(hundreds of millions of yen)

500

26

Operating profit(hundreds of millions of yen)
Operating profit margin20

products we offer

Household paper wholesaling

4.0%

8.4%

Commerce

2.0%
FY2027
Target300

Operating profit(hundreds of millions of yen)
Operating profit margin

77

6

8.5%

FY2022
Results

FY2027
Targetand increasing market share

1.7%
FY2022
Results

Product sales

Other businesses● Strengthening EC sales and expanding the range of unique● Streamlining operations at our three wholesale companies

25

Food domain● Realizing a fast recovery from the downturn caused by theBusiness Support

Revenue(hundreds of millions of yen)Lifestyle domain

288● Establishing a global network by expanding our facilities

Marine shipping
FY2022
Results

Operating profit(hundreds of millions of yen)
Operating profit margindelivery network

International logistics

5.4%

Revenue(hundreds of millions of yen)

● Accelerating facility development and further expanding our

238

4,406

Living Support

Domestic logistics● Expanding orders based on comprehensive proposal● Maintaining and increasing trademarks through operation of a

joint venture with a Chinese electronics material trading
company

FY2027
TargetFY2022
Results

Real estate, information, staffing, etc.

FY2022
Results

FY2027
TargetFY2022
Results

FY2027
Target● Entering new fields● Realizing a fast recovery from the downturn caused by the

COVID-19 pandemic● Pursuing M&As, for example in the staffing business

Revenue targets by segment

Distribution
Logistics(Unit: Hundreds of millions of yen)

FY2022

FY2027

Amount of increase

Rate of increase

Food logistics

822

1,150

328

39.9%

Chain store logistics

837

1,250

413

49.3%

Fashion logistics (including EC logistics)

495

650

155

31.4%

398

750

352

88.4%

2,552

3,800

1,248

48.9%

Chemical logistics

848

1,300

452

53.2%

Housing logistics

617

750

133

21.5%

Logistics business

Other logistics
Subtotal

Other logistics, etc.
Subtotal

388

600

212

54.6%

4,406

6,450

2,044

46.4%

1,461

1,950

489

33.4%

Living Support

288

800

512

177.8%

Business Support

77

300

224

292.2%

500

500

—

6,231

10,000

3,769

60.5%

Logistics business

436

770

334

76.8%

Trading & Commerce

321

430

110

34.2%

756

1,200

444

58.7%

Trading & Commerce

Other businesses
Total
International
revenue*
Subtotal

Key measures in ESG and groupmanagement
Specific CO2 emissions(land transport business)

Reduce 10% compared to FY2021

Percentage of management
positions held by females

At least 15%● Implementing in-house environmental measures andpromoting model shift● Reforming programs to take advantage of a diverse workforce

and expanding employment opportunities● Introducing advanced technologies to realize automation andlabor savings● Practicing health management through sports and culturalactivities
We will pay a performance-linked dividend in addition to astable dividend, and we will strive to enhance shareholder
returns while working to further improve the payout ratio.

*Included in above figures. *FY2022 figures have been restated to reflect the application of changes in segment accounting standards made in FY2023.

25

SENKO INTEGRATED REPORT 2022

SENKO INTEGRATED REPORT 2022

26

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

FeatureThe SENKO Group’s
Decarbonization
Strategy
Strategic decarbonization
themes in the Logistics businessApproach to decarbonization
Reflecting our commitment to helping achieve thecommitment made by Japan to the global community
to reduce CO2 emissions by 35.0% from 2013 levels by
2030, the SENKO Group is working to improve its
environmental performance so that it can contribute tocustomers and local communities.
As a leading environmental business, we will actively work tovisualize our environmental measures.

Strategy

Energy savings
We’re working to realize more efficient andeffective use of electrical power as we look toswitch to LED lighting and install alternative HVAC
systems at multiple large facilities.

Renewable energy
Having launched a solar power businessdesigned to promote adoption of renewableenergy in FY2014, the Group supplies electricity
to multiple power companies. Going forward, we
will accelerate use of renewable energy at
logistics centers.

Clean procurement
The Group is undertaking initiatives to realize acircular economy which reduces new resource use
and encourages the recycling and reuse of existing
resources.
Although our logistics centers have previously
discarded the stretch film used to secure freight
as industrial waste, all such film is now used tomake recycled garbage bags as part of a joint
initiative with a recycling processor, realizing
cyclical use.

27

SENKO INTEGRATED REPORT 2022

2

We’re working in a systematic manner towards decarbonizationin strategic investments and services in our Logistics segment.

Groupwide

Building and making environmental improvements at logistics centers andother facilities through green bond funding

Strategy

1

Greenification of facilities and equipment

Decarbonization in
the Logistics businessGreenification of in-house shipping
equipment and logistics facilities
We’re introducing environmentally friendly
trucks with reduced CO2 and NOx emissions, forexample electric and hybrid trucks. By leveraging
the environmental advantages of these vehicles,
specifically their lack of soot and sulfur oxide
emissions, we’re meeting customers’ desire forlow-carbon shipping.

Promotion of modal shift
The Group began promoting and implementing
green logistics, an approach characterized by areduced environmental footprint, early on. We've
won praise for initiatives designed to realize adecarbonized society, including a modal shiftcombining rail and marine shipping, introduction oflarger trucks, and consolidation of logistics facilities.

Risk analysis and feedback to businesses
As part of the transition to the Prime Market in
FY2023, we've been disclosing information related
to climate change in accordance with the Task
Force on Climate-Related Financial Disclosures(TCFD). In FY2023, we also launched a
Sustainability Promotion Department
anddisclosed
information
about materialities.

We’ve been issuing green bonds using a public subscription model in the domestic market. As we streamline logistics
and promote green logistics while helping reduce greenhouse gas emissions, we’ve worked to more clearly demonstrate
our commitment to the global environment by issuing green bonds to fund PD center construction.
These green bonds were used to fund the cost of building the Gifu Hashima PD Center and Wangan Yatomi PD Center,
which opened in May 2021. In addition to reducing CO2 emissions associated with shipping by streamlining customers’
logistics through operation of these two PD centers, we’ve reduced our own, in-house CO2 emissions by realizing energy
savings and use of renewable energy at the facilities. Through these initiatives, we’re striving to realize even greener
logistics.
Strategic decarbonization
themes in the Logistics business

Modal shift

Helping streamline shipping and reduce CO2 emissions
Transporting goods by rail and ship is more energy-efficient than using cargo vehicles, which both helps cut CO2
emissions and prevent air pollution.
The SENKO Group operates its own fleet of ships, and it’s provided more efficient shipping service through a modal
shift to rail and marine transport. Similarly, we’re working to reduce environmental impacts and shorten driver working
hours through a modal shift to rail shipping, which generates significantly less CO2 emissions–and uses lessenergy–than shipping by truck.

A group leading the way to a modal shift
The SENKO Group, which has actively promoted amodal shift, has earned a variety of awards, including
the Logistics Environment Award.
In June 2022, SENKO Co., Ltd.; Runtec Corporation;and Saitama-minami SENKO Lodge Co., Ltd. earned
three special prizes at the 23rd Logistics Environment
Awards, hosted by the Japan Association for Logistics
and Transport. The award program was created in June
2000 to recognize companies that contribute to thedevelopment of the logistics industry, for example
through exceptional environmental protection activities,
environmental awareness-raising, or development ofpioneering technologies. Runtec was recognized forhelping reduce CO2 emissions and driver workload
associated with small-/mixed-lot transport (refrigerated
and frozen food products) by switching from truck to rail
for shipments from Miyagi Prefecture to Hyogo

Prefecture and by consolidating two shipping routes(Fukuoka Prefecture to Hiroshima Prefecture, andFukuoka Prefecture to Hyogo Prefecture) into a single
run using larger vehicles by switching from 13.5-ton
refrigerated trucks to 20-ton trailers. We’ve also earned
the right to display the “Eco Ship” and the “Eco Rail”
marks as a logistics company that uses environmentallyfriendly marine and rail shipping for a certain
percentage of shipments, and we continue to propose
environmentally responsible logistics services andshipping channels other than truck transport.

SENKO INTEGRATED REPORT 2022

28

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Feature The SENKO Group’s Decarbonization Strategy

Case study

1 SENKO Sennan PD Center2 Tandem tractor-trailers

Case study

Launching a logistics facility leasing businessHelping reduce both driver working hours and CO2 emissions

SENKO Sennan PD Center, which was completed in March 2022, was built by SENKO Group Holdings Co., Ltd. andAn increasingly serious labor shortage caused by the aging of truck drivers and legal changes to cap driver overtime

leased to SENKO Co., Ltd. becoming the Group’s first leased logistics facility. The facility also began self-consignment of

to 960 hours a year in 2024 are expected to make smooth delivery of freight to destinations difficult using current

power generated by its solar panels. The center enjoys easy accesslong-distance transport methods, possibly causing an economic bottleneck.

for deliveries in the Kansai region, particularly downtown Osaka,

To address this challenge, SENKO Co., Ltd. began operating tandem tractor-trailers, which allow one driver toand it’s located ideally for processing imports and exports oftransport two trailers’ worth of cargo, for long-distance shipments in January 2021. After departing SENKO’s facility,international freight. Its location is not part of any danger areas on

tandem tractor-trailers carrying two large trucks’ worth of separately collected cargo are driven by a single driver for theflooding, landslide, or tsunami hazard maps, and it maintains along-distance part of their journey on expressways, with driver changes at tandem tractor-trailer docking stations along

business continuity plan (BCP).

the route. The new driver drives the trailers to the location at which they’re scheduled to be separated, where theassembly is split into a large truck and a semi trailer using a method known as the dolly method*. The trailers are thenWe’re using the facility to launch a logistics facility leasing
business, with the goal of providing higher-quality, lower-cost

driven to their respective destinations, helping reduce both driver working hours and CO2 emissions.

leases to the SENKO Group. We plan to build more such facilities in*Dolly method: A method for connecting and disconnecting trailers using a dolly. Tandem tractor-trailers consist of a trailer connected behind a 10-ton truck using a dolly.

the future while working to ensure they provide an attractive
exterior design and an appealing, employee-friendly environment,
for example by incorporating break areas where workers can relax.
Sennan PD Center

Streamlining operations and contributing to the realization of a decarbonized society
Thanks to the introduction of a solar power purchase agreement model for private consumption*1, the Sennan PD
Center began using power from solar panels covering its roof (682.5 kilowatts) as of April 1, 2022, while employing aself-consignment scheme*2 to share surplus power with other SENKO Group companies in partnership with Kansai
Electric Power Co., Inc. The initiative is the first in Japan*3 to use a self-consignment scheme to share power with threefacilities in the same group: two logistics facilities operated by SENKO Co., Ltd. in Hyogo Prefecture and a commercial
facility operated by Terauchi Co., Ltd. in Osaka.
The SENKO Group plans to streamline operations and contribute to the realization of a decarbonized society by
expanding the initiative to the entire group.
Tandem tractor-trailers

PPA model for solar power private
consumption and self-consignment
Renewable electricity(Surplus power)
Location of generating system(Sennan PD Center)

Power transmission network operated
by a power transmission company

Renewable electricity

Location of demand (2 sites in
Hyogo Prefecture and 1 site in Osaka)

Development of next-generation, long-distance shipping on core routes while
addressing environmental issues
Enlisting the cooperation of Asahi Kasei
began shipping freight for the two companies
using tandem tractor-trailers. The initiative isthe first of its kind in Japan to separate tandem
tractor-trailers midway along a route so that

Renewable electricity(Private consumption)
Solar power generation
On-site service
Provision of selfconsignment support service

SENKO INTEGRATED REPORT 2022

Reduction in driving time
Hours driving per year

Supply of power
to cover any shortfall

484.8 t-CO2

3,908

different customers.
shortagewhile

helping

realize

generation, long-distance shipping on core

BEFORE

AFTER

About
%
Reduction in
driving time

Tandemtractor-trailers
Compared to previous
approach163.2 t-CO2

40adecarbonized society by developing next-

321.6 t-CO2

Tandemtractor-trailers
Compared to previous
approach

2,532

Going forward, SENKO will help address thedriver

CO2 reduction
CO2 emissions per year

6,440

the trailers can be delivered simultaneously to*1 PPA model for private consumption: The supply, for a fee, of power generated by equipment installed by a company that owns and manages generating
equipment (the PPA business) in space, for example on a roof, provided free of charge by that facility.
*2 Self-consignment: An arrangement in which a company uses the power transmission network to send power generated from solar panels it has installed to otherfacilities it operates.
*3 Per research by Kansai Electric Power.

29

Benefits of introducing tandem tractor-trailers

Homes Corporation and Fujitec Co., Ltd., we

30

BEFORE

AFTER

About
%
Reduction inemissionsroutes through increased use of tandem
tractor-trailers.

SENKO INTEGRATED REPORT 202230