Feature 1
Food Logistics—supporting people
in their daily lives with "Food"

Feature 2
CSR initiatives in Trading & Commerce

Contact

Public Relations Office531-6114
Tower West 14F, Umeda Sky Bldg. 1-1-30 Oyodonaka, Kita-ku, Osaka
TEL.06-6440-5156 FAX.06-6440-5148
URL https://www.senkogrouphd.co.jp
Official instagram senko_group.official

CSR REPORT

2021
Environmental Measures;
Safety Initiatives; Health
Initiatives; Social InitiativesⒸShanti Volunteer Association / Yoshifumi Kawabata"The Very Hungry Caterpillar," Author & Illustrator: Eric Carle, Japanese Translation: Hisashi Mori (Kaiseisha Ltd.)"The Three Little Pigs," English Nursery Rhyme, Illustrator: Saburo Yamada, Japanese Translation: Teiji Seta (Fukuinkan Shoten)"The Round Circle Twins," Author: Yumie Inukai, Illustrator: Mitsunori Yabe (Kyouikugageki)"Willie's Walk to Grandmama," Author: Margaret Wise Brown, Illustrator: Akiko Hayashi, Japanese Translation: Ikumi Tsuboi (Penguin Sha)

Feature 3
Supporting the sense of fulfillment
and motivation for employees

Easier to read and understandwith the use of universal design font.

Published June 2021

Go Beyond Logistics,
Make the World Go Round,
Revolutionize Business

Contents

SENKO Group Holdings

MovingGlobalS E N K O
C S R
R E P O R T
2 0 2 1Business overview

3

Medium-term management plan and CSR policy

5

Relationship between business activities and SDGs

7

Feature ① Food Logistics—supporting people intheir daily lives with "Food"

9

Feature ② CSR initiatives in Trading & Commerce

12

Feature ③ Supporting the sense of fulfillment andmotivation for employees

15

Environmental measures
Environmental measures digest

17

Environmental Report

19

Safety initiatives
Safety initiatives digest

23
25

Our "Safety initiatives" continued our efforts forsafety training and education, including remotemeetings in response to the COVID-19 pandemic, as
well as rolling out new types of technology likeinstalling obstacle detection sonars on trucks.
Our "Health initiatives" not only focused on
improving lifestyles and actively encouraged club
activities, but also resulted in being selected as a
"2021 Certified Health and Productivity Management
Outstanding Organization" for the fourth consecutiveyear.
For our "Social activities," we continued runningtraffic safety classes for children and cleanup activities
while also making every effort to prevent the spread of
COVID-19. And the "Pear Owner System" that we are
implementing in Tottori Prefecture was awarded by the
Ministry of Agriculture, Forestry and Fisheries as thebest case study for maximizing the potential of

Health initiatives
Health initiatives digest

27

Social activities
Social activities digest

29
31Social Report

Helping contribute to developing a sustainable society
as a corporate group that supports people in their daily lives

1

1

Safety Report

Message from the President

In April 2017, the SENKO Group made the transition
to a holding company structure, and is currently
focusing on "Senko Innovation Plan 2021 (SIP21)," thefive-year medium-term business plan in its final year in
FY2021.
One of the management policies of SIP21 is to"emphasize corporate social responsibility (CSR)" withinitiatives being put in place for the environment, safety,
health and society while clarifying the relationship with"sustainable development goals (SDGs)."
We implemented numerous initiatives throughout
FY2020. "Environmental measures" involved greater
effort to move away from carbon such as continuing
existing modal shifts and introducing the use ofenvironmentally friendly vehicles, which have beenpraised as successful efforts for environmental
conservation by the Ministry of Land, Infrastructure,
Transport and Tourism and other organizations.

Message from the President

agricultural villages.
Our group signed up with the "UN Global Compact,"
an initiative advocated by the United Nations that aims
to achieve sustainable growth worldwide, and we wereregistered as a participating company in October
2020.
As a corporate group that nurtures people andsupports them in their daily lives, the SENKO Group asa whole will continue to promote CSR management togain the trust of all our stakeholders and contribute todeveloping a sustainable society.
SENKO Group Holdings Co., Ltd.
President and Representative Director
CSR Promotion Committee Chairman

Yasuhisa Fukuda

Corporate Governance33

ESG highlights

35

Corporate data37

■ Editing policy and scope of reporting
The SENKO Group established the CSR Promotion Committee
and since FY2008, has published the "CSR Report" covering
topics such as "environmental conservation" and "road safety"
that have always been given top managerial priority.
The editing policy is as outlined below.
(1) CSR activities characteristic to the SENKO Group during thereporting period are presented as "Features."(2) The scope of the report covers activities of the SENKOGroup.
(3) Reports cover activities conducted from April 2020 throughMarch 2021, with some covering activities conducted after
April 2021.
(4) Environmental reports are made in accordance with the"Environmental Report Guidelines (2018)" issued by theJapanese Ministry of the Environment.

C S R

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2

SENKO Group business domains

Trading & Commerce Business Group

4 core business domains of
SENKO GroupAs a corporate group which nurtures people and supports them in their daily lives, the SENKOGroup is always determined to create new trends in services and products.
* Number of group companies current as of end of March 2021

104

Logistics GroupWe have expanded our logistics to support customers in industries
relating to housing and construction materials and chemical products, inaddition to retail industries encompassing general supermarkets,
drugstores, home improvement stores, and apparel.
Furthermore, for the food sector we have freezing and refrigeration
warehouses as well as a nationwide low-temperature (both chilled andfrozen) logistics network which uses methods including refrigerated
trucks and railway containers.
We also have business centers outside Japan (local companies, etc.)
to create a multimodal transportation system between Japan and theworld, and for our global logistics center business.

■ Salescomposition

group
companies

We are involved in business related to oil sales, commercial trading, and international trade. We
sell fuel, logistics-related commercial materials like logistics equipment and supplies, everyday
items, packaging materials, foodstuff, liquor, and more.
We also cover international trade, such as importing and exporting customers’ raw materials
and products, as well as other international transactions.
Major companies

SENKO SHOJI CO., LTD. / AST CORPORATION / SMILE CORP. / AZFIT Co., Ltd. /Marufuji Co., Ltd., etc.

billion yen
142 groupcompanies

Operating revenue 161.8 billion yen

67.7%

Housing logistics

Major companies

SENKO Co., Ltd. / Runtec Corporation / Tokyo Nohin DaikoCo., Ltd. / SENKO A LINE AMANO Co., LTD. / ACROSS
TRANSPORT Co., Ltd., etc.

Other business groups
Living Support

10 companies
group

Operating revenue
229.5 billion yen

Total

12.8%
Sales composition

Operating revenue
73.5 billion yen

3

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2 0 2 1142 groupcompanies

10.2%

4.0%

Operating revenue
58.3 billion yen

Operating revenue 23.2 billion yen
Homebuilder products,
associated materials, etc.

Other logistics

4.6%
Operating revenue
26.1 billion yen

11 group
companies

We operate a logistics consulting business and an information system business fordeveloping and managing IT solution systems, to create an optimum logistics system tomeet the diverse needs of our customers.
We also have a contact center business serving our customers in the real-estatedevelopment, hotel sectors, personnel service sectors, and online shopping businesses.

Sales composition

Resin materials, resin molded
products, processed goods,
etc.

billion yen

Housing logistics

Business Support
Chemicals logistics■ Sales composition

572.4

Major companies

Sales composition

Mass merchandisers,
retailers, food, fashion, etc.

21

group
companies

We have developed businesses to support the everyday life of consumers, such as nursing
care, fitness, housework services, general warehousing, and childcare businesses.
"SENKO School Farm TOTTORI" also uses closed-down schools for welfare-based
agriculture to grow and sell leafy vegetables and mushrooms.

KEIHANNA helper station Co., Ltd. / Blue Earth Japan Co., Ltd. / Venus Co. Ltd. /Terauchi Co., Ltd. / Procare Co., Ltd. / SENKO School Farm Tottori Co., Ltd., etc.

40.1%

572.4

billion yen

28.3%

Total

Operating revenue 387.4 billion yen

Sales composition

Total

Retail productlogistics

Chemicals
logistics

Retail product logistics■ Sales composition

142 groupcompanies

572.4

Other logistics

16 group
companies

Major companies
Logistics other thandistribution, residential andchemicals

Logi Solution Co., Ltd. / SENKO INFORMATION SYSTEM Co., Ltd. / Senko Real
Estate Co., Ltd. / S-TAFF Co., Ltd. /Senko Business Support Co., Ltd. / SENKO Creative Management Co., Ltd., etc.

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4

SENKO Group Medium-term Management Plan and CSR Policy

Enhancing corporate value andhelping to create a better future society
Implementing CSR management as a united group
SENKO Group growth strategy"SIP21"The SENKO Group launched the five-year medium-termbusiness plan "SIP21" in April 2017.
One of those policies was "Emphasize corporate social
responsibility (CSR)."

Group Strategy Direction

Medium-Term Business Plan
1 Expand business areas

Unite as a group to drive
economic and social
innovation in and out of Japan.
Group Medium-Term Business Targets
FY2021 Goal

● Operating revenue 700.0 billion yen● Operating profit● Operating profit ratio

28.0 billion yen● Return on equity (ROE)● Equity ratio
5

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4.0%
10.5%
40.2%

3 Improve employee satisfaction (ES)Through the creation and active utilization ofdiverse programs, boost employee satisfaction
to attract diverse personnel, help them to grow,a n d in c re a s e t h e v a lu e of t h e ir wo r k i n genvironment.

Emphasize corporate social
4 responsibility (CSR)
Grow alongside society, while preserving
and fostering industry, culture, and nature ineach area.

5 Gain trust from capital markets
Work to maximize the corporate value of theentire Group, while strengthening financial
soundness.

Committee Chairman: President

CSR Promotion
Committee

2 Safety Initiatives① Establish a health and safety management system that caters to thecharacteristics of group companies.
② Utilize big data to centralize various types of safety-related systems.
③ Actively install (active safety) technologies to prevent accidents fromoccurring.
④ Create opportunities to share and learn about safety technologies.

3 Health Activities① Manage the health information of all group employees to promote theimportance of staying healthy.
② Enhance health management to eliminate accidents caused by healthproblems.
③ Conduct stress checkups to develop management systems forpreventing mental health problems.
④ Work with health insurance unions to strengthen health promotion
activities.

4 Social Activities① Hold traffic safety classes and local clean-up drives to contribute to the
local community.
② Organize volunteer activities, such as education support programs
outside Japan.

Compliance Committee

Go beyond logistics, Make the world
go round, Revolutionize business① Focus on meeting energy-saving targets as a Specified Corporation② Make improvements related to "Reduce with energy-saving," "Recycling
rate" and "Green product procurement rate" and contribute to a
recycling-oriented society.
③ Organize environment-related information of group companies, and aim
to achieve the same environmental targets.
④ Actively install fixtures with a low environmental impact, such as LED
lighting and low-emission vehicles.
⑤ Increase use of alternative energy sources, such as installing solar panels
on new facilities and increasing the number of large CNG vehicles.
⑥ Actively promote modal shift to customers as a way of implementing
green logistics.

Individual committees for "Compliance,""Corporate Ethics," "Risk Management,""Environmental Promotion" and "Social
Contribution Promotion" are in charge ofrunning various CSR activities in order tofulfill our social responsibility across a
broad scope.
The CSR Promotion Committee, which ischaired by the president of SENKO Group
Holdings Co., Ltd., supervises each ofthese committees.

Corporate Ethics Committee

Realization of Moving Global

Consolidate the Group’s overall strength,deliver "services that surprise and delight," andevolve from "customer satisfaction" (CS) to"customer delight" (CD).

1 Environmental Measures

Promotion System of CSR

Risk Management Committee

2 Enhance brand value

Priority Measures

Environmental Promotion Committee

Accelerate international business expansion,
further enhance existing domestic businesses,
and enter new business areas, such as Living
Support and Business Support.Also, actively
promote business partnerships and M&As to
support the above.

The SENKO Group as well as its suppliers and business partners are striving to place a greater emphasis oncompliance and CSR.

Social Contribution Promotion Committee"SIP21" (Senko Innovation Plan 2021) is our
growth strategy for supporting industry anddaily living, to challenge ourselves to create new
trends while unlocking another 100 years ofbusiness.

Medium-Term Policy of SENKO Group CSR

Operating companies

Signing the UN Global Compact
SENKO Group Holdings Co., Ltd. signed up with the "UN Global
Compact (UNGC)" initiative, and was registered as a participating company
in October 2020.
The UNGC is an initiative advocated by the United Nations that aims toachieve sustainable growth worldwide, and participating companies
support its principles related to protecting human rights, eliminating
improper labor practices, conserving the environment and preventing
corruption with activities that contribute to achieving those goals. By
signing up to the initiative, we will be placing a greater emphasis on these
activities throughout the SENKO Group, and through our businesses aim toresolve social problems and create new value, and help contribute todeveloping a sustainable society.

C S R

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6

SENKO Group Relationship between business activities and SDGs
The SENKO Group aims to resolve social
challenges and create new value through its
businesses, based on the core approach that"economic activities" can be achieved with a"h e a l thy gl o b a l e nviro n m e nt" a n d a "g o o drelationship with local communities."

SENKO Group—nurturing people andsupporting them in their daily lives—
business activities and SDGs

Living Support
Nursing & housework services /Fitness / General Wholesale andRetail / Childcare / Restaurants /Agriculture, etc.

Crefeel Koto

Trading &Commerce

Business Support
Logistics consulting / IT solutions / Contact center /Staffing services / Hotels / Real estate, etc.

Commerce / Oil sales / Salesof daily commodities, foodstuff, alcohol, etc.

Priority
themes of
SENKOGroup's
SDGs

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

Priority
themes of
SENKOGroup's
SDGs

Logistics
Transportation / Storage /Logistics processing /In-factory operations /International logistics, etc.

Economic level
Delivering new value to society through businesses

Feature 1

Businesses that nurture people
and support their daily lives

Harnessing business activities with theaim of resolving social challenges throughinitiatives linked to CSR policies, as wellas contributing to greater barrier-freeaccessibility in society.

Food Logistics—
supporting people in their
daily lives with "Food"

Society level

CSR
Safety Initiatives
Health Initiatives
Social Initiatives

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

See P9 for details▶

Providing logistics
services that arehighly resilient tonatural disasters

Developing the Living
Support business thatcovers nursing, childcare,health services, and more

Global environment sustainability
Spent tires New rubber

CSR initiatives in
Trading & Commerce

7

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Lower energy and lower carbon use oftransportation infrastructure (use of CNG
vehicles, electric trucks)

Using retreaded tires

Cooperation with the
Osaka Bay Environment
Restoration Project

Traffic safety class forchildren at businesssites
See P15 for details▶

Logistics safety
education andprofessional driver
training

Environmental level
CSR

Tire casing

Solar power generation andenergy efficient facilities
installed at PD centers

Promote healthmanagement
throughout the entire
group

See P12 for details▶

Retreadedtires

Cooperation with society

Supporting the sense offulfillment and motivationfor employees

Feature 2
Promoting green
logistics bycooperating withcustomers

Feature 3

Environmental
Measures

Minimizing the environmental impact of business activities
Recognizing the responsibility for "energy consumption" and"greenhouse gas emissions" as a logistics company, and working tomaximize understanding and related reductions.

C S R

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Large-scale logistics sites for
24/7 uninterrupted "Food"logisticsltimate temperature
control for optimum frozen
and cold goods quality

Warehouses that operate non-stop ever y
day are continuously performing related work
like loading, storage and sor ting as well as
t r a n s p o r t a t i o n. T h e K a n s a i B r a n c h h a s astorage capacity for 55,000 t of goods, andfeatures all the latest equipment and techno lo g y to e nsu re s afe a nd s p e e d y loading
and storage operations. Cross-docking truck
ber ths (inbound and outbound docks) allow
a simple, one-way movement of goods, andthe introduction of a voice-directed picking
system help to ensure that operations within
the warehouse are more ef ficient and safer.
Vibration control structure automated freezer
warehouses and emergency power generator
are also available in preparation of emergencies, with the aim of achieving uninterrupted
logistics of "food" under any situation.

A total of 50 truck berths, 21 on the east and 29 on the west, cater to inbound and outbound goods

Spacious 2-story storage and sorting floor

Feature 1

Food Logistics—supporting people
in their daily lives with "Food"
Frozen and cold transportation
protecting food sector infrastructure

temperature control for optimum
U ltimatefrozen and cold goods quality

Automatic control of temperature and humidity throughout the entire warehouse is employed to maintainthe quality of frozen and cold goods. Positive pressure air-conditioning is used on the ground floor to prevent
outside air flowing inside and maintain temperature at a constant +5°C, while desiccant dehumidifiers provide
constant dehumidification. A -25°C automated freezer warehouse is also in operation. Automation allows forquick transfers of goods to help maintain product quality.
Initiatives

Runtec Corporation operates transportation services for frozen and cold fresh foods
and processed foods. Warehouses and logistics sites play an important role toensure that logistics continue uninterrupted during any type of situation.

Energy-efficient initiatives withsolar power generation

Relationship with SDGs
As a transportation specialist for frozen and cold
goods, Runtec Corporation has developed a system
built around warehousing and transportation services
for uninterrupted logistics for the "food" sector, andsupports people in their daily lives with "food."

Runtec Corporation
Director
Sales HQ. for Kansai andChushikoku Region

Solar panels have been installed on theroof of the Kansai Branch.
With a power generation capacity of 1,000
kW, solar power covers approximately 17%of the branch's entire electricity consumption. Utilizing renewable energy reduces
the amount of electricity used, and contributes to reducing our environmental impact.

Akira Tamagawa

untec's frozen and cold transportation, protecting food sector

R infrastructure and supporting people in their daily lives
Food logistics is an essential lifeline for the daily lives of so many
people. Runtec recognizes the large responsibility it has for delivering"food" in a "safe and secure" manner, and places the utmost focus on
maintaining quality of its products. We focus in particular on temperature
management, preventing shipment and deliver y mistakes, andpreventing contamination by foreign objects, by implementing strict
company-wide management practices. We have also developed acomprehensive system for logistics sites and transportation to ensurethat logistics continue uninterrupted. As part of these efforts, we opened
the new Kansai Branch in July 2019. We will continue to keep up withdemand in the growing sector for food logistics as part of our goal to
become the "Only one frozen and cold logistics company."

9

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Voice-directed picking system for greater
work efficiency

Capacity for 10,000 electric movable racks
throughout entire warehouse
Automated freezer warehouse with storage for 7,000 racks
C S R

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nhanced relay functions for

E greater transportation efficiency
Runtec's forte is with its ability to cover every stepo f t h e p r o c e s s , f r o m l o a d i n g a n d s to r a g e a twarehouses to transportation. The opening of the
Kansai Branch provides enhanced functionality as arelay center connecting Kyushu to branches in the
Kanto region and further north throughout Japan. Up
to 10,000 cases of goods are relayed through thecenter every day. The Kansai Branch not only allows
for a greater number of trucks to arrive and leave, but
its functionality as a relay center also enhances
companywide operating efficiency.

Kansai Branch~Dedicated & Charter Services ~No. of services ⇒ 80 trucks/day

Quantity relayed ⇒ 9,000 to 10,000 cases/day
No. of mainline routes ⇒ 43 routesⒸShanti Volunteer Association / Yoshifumi Kawabata
THE VERY HUNGRY CATERPILLAR Published by KAISEI-SHAⒸShanti Volunteer Association / Yoshifumi Kawabata"The Gigantic Turnip" Written by A. Tolstoy Illustrated by Churyo Sato
Translated by Risako Uchida Published by Fukuinkan Shoten Publishers, Inc.

Kansai
Branch★

Change in quantity of relayed fresh delivery services

Change in No. of storage racks

Approx. 7,700
Approx. 9,000
cases/day →cases/day

2,800 racks → 17,221 racks

Feature 2

CSR initiatives in Trading & Commerce
Old Branch"F

New Branch

Old Branch

New BranchWorldwide commercial distributor SENKO Group's
responsibility for the global community

resh delivery service" collecting and delivering
34,000 cases of constant temperature less thancontainer loads bound for the Kansai region

SENKO Group develops commercial distribution on a global level that extends beyond the scope of logistics.
It is focusing on contributing to the global community to fulfill its responsibility as a company with businesses
worldwide.

Our constant temperature less than container load service for freshdelivery was designed to meet a broad scope of requests from
customers shipping goods in a range of sizes. Today, some 5,300
client companies are making use of this "fresh delivery service". The
new Kansai Branch significantly increased the number of freshdelivery services operating. Around 80 trucks collect and deliver
some 34,000 cases every day from across all of Hyogo Prefecture,northern Osaka Prefecture and the southern and northern areas of
Kyoto Prefecture.

Flow of collection and delivery
for fresh delivery services
ShipperCollection/deliveryorder

11

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"Fresh delivery
service"collection
centerEach(outboundshipper
shipment)
Collection

Relationship with SDGs
SENKO Group's Trading & Commerce business domain iscommitted to lowering the environmental impact of eachof its group companies, as well as supporting children's
education in poverty and conflict-affected regions.

T"Fresh delivery
service" delivery
centerEach delivery
destination

Collection request

Order"Fresh delivery
service" delivery
centerEach delivery
destination"Fresh delivery
service" delivery
centerEach delivery
destination

rading & Commerce provides goods
essential for day-to-day life, from optimum
sources around the world

SENKO Group's Trading & Commerce business domain
comprises of core companies like SENKO Shoji Co., Ltd., AST
C o r p o r a ti o n a n d S m i l e C o r p., a n d c ove r s w h o l e s a l e
distribution of household paper items, packing materials and awide range of other lifestyle goods, sales of fuel cards that canb e u s e d at g a s stati o ns a ro u n d Ja pa n a n d d i e s e l fo r
commercial use, as well as the business of sourcing andwholesale of af fordable wines from various countries.
International trade is another area that is covered, and includes
impor ting and expor ting customers’ raw materials andproducts, as well as other international transactions.

SENKO Shoji Co., Ltd.

SENKO Group

Fuel

Construction materials

Logistics equipment

Logistics materials

Trading &Commerce
Business Domain(3 core companies)

Smile Corp.
Packing materials

Wine

Lifestyle goods

Foodstuff

AST Corporation
Paper products

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Feature 2

Initiative 1

CSR initiatives in Trading & Commerce

Initiative 2Contributing to customers' plastic-freelifestyles with eggshells

Delivering picture books to children in Asia
Related SDGs

Related SDGs

T

urning to new materials madefrom eggshells to help reduce plastic

SENKO Shoji Co., Ltd. recognizes the importance ofassisting customers' environmentally friendly efforts, by
supplying them with eco-friendly products. Customers
were seeking ways to reduce their plastic consumption,
and with efforts being made to develop new products andm ate r i a l s, S EN KO S h o j i fo c u s e d o n i n n ovati ve
bio-materials made by mixing eggshells with resin or
paper. Utilizing eggshells that are normally discarded asindustrial waste helps to reduce the amount of plastic andpaper used, and also cuts down the amount of CO₂
emissions and industrial waste.

S

upplying SENKO Group with new products
made with lower paper and plastic content

These efforts first began by commercializing business cards
made with paper mixed with eggshells. These cards are not onlyused at SENKO Shoji, but are also increasingly being supplied
throughout the SENKO Group. Future plans include increasing therange of products that were previously made using plastic, likeprinted sheet protectors. Efforts are also being made to develop
new products using such bio -mate r ials. A ra nge of new
eco-friendly products will be developed and supplied to meet theneeds for customers.

Staff comment

Supplying products to help customers reduce plastic
Eiichi Sakai SENKO Shoji Co., Ltd. Director of Solutions Department
Reducing the amount of plastic we use is a challenge that the entire world is focusing on,
and many of our customers are also making an effort to reduce their consumption. Our role asa trading company is to help customers run activities that are more environmentallyconscious, by supplying them with new product concepts. Right now we are working withnumerous partner companies to develop goods transportation pallets made of new materials
using eggshell compounds. Developing new products that are functional and have a lower
environmental impact over the product lifecycle is one way we are aiming to help customers
reduce their plastic consumption.

13

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mployees taking part to deliver picture

E books to children in Asia

SENKO Shoji Co., Ltd. considers it impor tant that ever y
employee thinks carefully about society and the ways they canhelp to make improvements. One of the social activities that
employees take part in is the "Campaign to Deliver Picture Books"(organized by the Shanti Volunteer Association (SVA)) for children
in Asia who had no opportunity to receive an education due to
conflicts, pover ty or other causes. The project involved 25
employees applying stickers with translations to 20 picture books,
and delivering them to refugee camps in Myanmar and Laosthrough the services provided by SVA.
ⒸShanti Volunteer Association / Yoshifumi Kawabata"Guri and Gura's Surprise Visitor" Written by Rieko Nakagawa Illustrated by Yuriko Yamawaki
Published by Fukuinkan Shoten Publishers, Inc.

oosting awareness of SDGs as issues

B related to everyone

Af ter the picture books were delivered, the children who
received were overjoyed, with comments like "We look forward toreading the picture books at our school library." Participating inthis campaign not only played a role in enriching the children's
future, but also helped to boost awareness of SDGs amongst
e m p l oye e s a s i s s u e s th at th ey c a n b e c o m e i nvo l ve d i n.
Employees will continue taking part in the project, with the aim ofsending 30 books in FY2021.

Staff comment

Becoming more familiar with problems occurringaround the world
Kasumi Ishii SENKO Shoji Co., Ltd. Corporate Management Division
I was involved in applying stickers with Burmese, Karenic and Lao language translations
into Japanese picture books. Taking part in this project helped me discover more about
conflicts and related problems occurring around the world, and made me realize just how
lucky we are here. While I was not very familiar with conflicts and poverty around the world,
this experience made me think more about how such problems are relevant to myself. I plan
to become more involved in the future, and also inform people around me of the importanceof these projects.

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Golf clubC
Basketball clubCompany band sessions

Surf and flats fishing club

Feature 3

Dance club

Hobby club

Yoga club

H

SENKO Group supporting employees with their activities
We are focusing on creating a fun, healthy and fulfilling environment to work in for employees at the SENKOGroup, and are helping to build an affluent community and society by providing opportunities to participate incultural and sports activities.

We actively support efforts that create asense of fulfillment and promote health for
employees at the SENKO Group, by
encouraging cultural and sports activities.

I am involved in developing delivery networks for small
packages and marketing the light freight business. My roleis rewarding as it is vital for expanding business into the
future, and I eagerly await the challenges that each day
brings. When it comes to golf competitions, our goal for thisyear is take first place in the all-Japan
corporate golf competition "20th RELOCLUB A ll-Japan Competitive Golf
Tournament Recruit CUP 2021 Summer
Team Match," while my personal goal is to
win the "Nippon Shakaijin Golf
Championship." I am determined to takepart in these competitions and play a rolein boosting the corporate image of the
SENKO Group.

Judo club

Supporting the sense of fulfillment andmotivation for employees

Relationship with SDGs

reating a challenging and rewarding
environment, for work and golfromoting and supporting cultural and sports activities

P to improve employees' physical and mental healthoning mental, physical and technical abilities with thecompany's understanding and support, with the aimof representing JapanSENKO Co., Ltd. Business Policy Promotion HQ.
Automotive Business Promotion Div.

Kazuma Miyako

Track & Field club

SENKO Women's Track &Field club established in
April 2021

After working for around five hours everyday on my office duties at thesales branch, I then focus on practice and training for 3-4 hours. It is thanks
to the understanding and support of everyone at the sales branch that I am
able to perform so well at Judo. I am always grateful for the way everyone isgetting behind me. It is so rewarding when I learn a new skill for work and I
am able to help out at the office. My goal is to achieve results on the global
stage. I am fully committed to both my work and judo, and am working to
improve my mental, physical and technical abilities as a professional.

We operate businesses that support people in their daily lives, and at the
SENKO Group we believe that this was only possible with our skilledemployees. In April 2021, the "Responsible for Culture & Sports Promotion"and "Responsible for Health Promotion" were established within the head
office, and tasked with promoting and supporting cultural and sports
activities so that employees can live a healthy life.

Tennis club

Promoting health andboosting communication
with tennis

SENKO Co., Ltd. Tokyo Supervising Branch,
Hino Sales Branch

Marathon club

15

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Futsal club

Go club

Volleyball club

Katsuma Yonemura

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Initiatives in FY2020

SENKO Group

Directly linked to SDGs.
SENKO's widely praised "Green Logistics"

Making modal shift to rail transportation for

Shipping rail containers from
Nagoya PD Center to plantin Niigata Prefecture

Excellent Business
Entities Working on
Modal Shift (Effective
Utilization Division)case study

marine transportation using trailer units to boost efficiency

Transportation of products such as foodstuff, resins and medical supplies between Kansai
and Kyushu was switched to round trip marine transportation using trailer units. This involved (1)"Consolidating cargo at hub center" and "Arranging deliveries when cargo arrives" (2) Developing
mainline transportation routes with mainline unmanned transportation using ferries (3) Developing
an emergency transportation system using cross-docking if ferry services are canceled.

Certificates issued after collection to show
total amount recycled

Use of truck wash systems
save 100 m3 of water
annually

Unmanned transportation oftrailer units via large ferries
bound for Kyushu

Received the "Eco Ship / Modal Shift Excellent Businesses MLIT
"Maritime Bureau Director Award"

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Repacked bydeliverydestination）

Amagasaki City,
Hyogo
Prefecture

Farms
in Kyushu

2

Farms
in Kansai

Moji Port
Port of
NagoyaTomakomai Port

Plant in Chitose City,
Hokkaido

Modal shift from long-distance truck transportation toutilizing trailer units and
RORO ships

Eco-Ship mark75 to 78% reduction in CO emissions
Fukuoka City,
Fukuoka
Prefecture

KyushuDelivery using
internal
collection anddelivery network

CSR VOICE

Making a modal shift from long-distance truck transportation to utilizing trailers and RORO
ships for transporting products from machinery manufacturers in Hokkaido bound for Kansai andKitakyushu achieved a significant reduction in CO2 emissions.
Making modal shift utilizing ship transportation

Consolidate
cargo at hubs
using internal
collection anddelivery network

Kansai hub

Recycling uniforms properlywith the BRING Uniform
project

Plant, etc.

Kansai region

Operating two of the first hanger-rack
body type electric trucks in Japan

Modal shift approx. 573 km

Plant, etc.

2

Modal shift approx. 510 km

Minami-Nagaoka
Freight Terminal

Making a modal shift from truck transportation to rail transportation for hydrous pulp
shipped from Mie Prefecture to Niigata Prefecture cut back CO2 emissions by 177.1 t, andalso reduced the driving time of drivers by 60%. Focus then shifted to containers used forone-way transportation from Niigata Prefecture, with mixed cargo loaded on the return leg toachieve a container round use system.

Switching to

52% reduction in CO emissions

2

Plant in Niigata Prefecture

From right: Tokyo Nohin Daiko Co.,
Ltd. President Hiroyuki Ito, Ministry ofLand, Infrastructure, Transport andTourism Vice Minister Shigeki Iwai

44.6% reduction in CO emissions

Fukuoka or Oita hub

Use of first hangar-rack body type electric truck in Japan

Logistics Environmental
Conservation Activity
Award case study

Nagoya Freight Terminal

Received the "MLIT Minister's Award for Companies Contributing toEnvironmental Conservation in the Transport Industry"In July 2019, Tokyo Nohin Daiko worked with customers to roll out one of thefirst hangar-rack body type electric trucks in Japan, leading to a 26% reductionin the amount of CO 2 emissions per truck (compared to diesel models). Other
intensive measures to move away from carbon, like introducing CNG trucks thatuse natural gas as fuel, ensuring environmentally friendly driving styles andoperating management by using planned dispatching and operating efficientroutes, and educating truck drivers, were also highly recognized and led to thereceipt of this award.
The company also implements a number of other eco-friendly measures suchas recycling uniforms by endorsing the "BRING Project" and using water-saving
truck wash systems.

* Received by multiple logistics companies supporting customers

Excellent Business Entities Working
on Modal Shift awards ceremony
held on Wednesday, November 11,
2020

Niigata
Freight
Terminal

Addressing driver shortages
Reducing long driving hours

SENKO Nagoya PD Center

Reducing CO₂
emissions

Plant in Mie Prefecture

Responding todisaster risks(roads cut off)

We take a proactive stance for making modal shifts with the aim of reducing
CO2 emissions and streamlining logistics, and the SENKO Group is ranked highly
in various award systems held by the Japan Association for Logistics andTransport (JALoT).
In FY2020, we received the "Logistics Environment Awards*" and "Special
Award" in the 21st Logistics Environment Awards. The SENKO Group was also
recognized in the "Implementation Division" and "Effective Utilization Division" of
the 18th Award for Excellent Business Entities Working on Modal Shift."

Shinmoji Port, Oita Port,
Beppu Port

Contributing to developing a sustainable
society through business

From very early on, we developed and have been promoting "Green
Logistics" that reduces the impact that the SENKO Group has on theenvironment. Initiatives aimed at achieving a carbon-free society—modal
shifts with a combination of rail and marine transportation, promoting theuse of larger trucks, and consolidating logistics sites—have been widely
praised by the Ministry of Land, Infrastructure, Transport and Tourism
and organizations like the Japan Association for Logistics and Transport.
In FY2020, we have again been recognized for our remarkableachievements with our initiatives related to environmental conservation.

"Environmental Measures" at a Glance!

Received Four Awards from Japan Association for Logistics and Transport in FY2020

Port of Osaka, Port of Kobe,
Izumiotsu Port

Environmental
initiatives digest

Implementing even more policies towardachieving "Carbon Neutral"
We have entered an age where the SENKO Group is at risk of being overlooked by society, ourcustomers and even our own employees unless we are implementing a well-defined set of policies
on a company-wide scale covering areas such as environmental conservation, measures to reduce
CO2 emissions, and the use of next-generation energy sources. We are focusing on incorporating an
increasing number of policies within the SENKO Group's new medium-term management plan for
the next fiscal term aimed at achieving "Carbon Neutral," with examples including maximizing the useof renewable energy sources by installing solar power generation systems at each company site,
incorporating advanced trials of next-generation fuels, and developing community-based renewableenergy BCP measures by working with local governments.

Kenji Nakabayashi
SENKO Co., Ltd.
Director of Safety, Quality &Environment Administration Dept.
and Manager of Environmental
Activities Promotion Gr.

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Environmental Report

Environmental Policy

Environmental policy of SENKO Group

Environmental Philosophy
The SENKO Group is aiming to become an "environmentally advanced corporation" to ensure that the planet
we leave behind for future generations continues to be blessed with an abundance of nature. We achieve this byactively and voluntarily adopting ongoing environmental conservation measures like activities that reduce ourenvironmental impact and that promote more efficient use of resources, as we play our role for the future andmeeting our obligations toward society.

Basic Policy
1. Strive to comply with legislations, rules, agreements and internal regulation related to the environment, andimplement environmental conservation activities continuously and in a proactive manner as a "good corporate
citizen."
2. Top management defines its own "environmental targets," establishes an environmental activity promotion
system and develops environmental management regulations, and strives to implement ongoing efforts toenhance environmental performance.
3. In addition to supporting efficient, low environmental impact logistics for customers "from procurement todisposal," strive to conduct activities that reduce environmental impact from a product life cycle perspective
through trading, information and other associated businesses.
4. Strive to make all SENKO Group employees and contracted partner companies aware of these "environmental
targets" and provide the relevant education.
Also strive to disclose information on environmental measures to stakeholders in a proactive manner.

Environmental targets and achievements
Reduce CO₂ and Achievements
We track energy consumption and CO₂ emissions from business activities of the SENKO Group, and update ourenvironmental measures with these results. We have continued a range of measures aimed at reducing ourenvironmental impact, and we aim achieve the CO₂ reduction targets in our five-year medium-term management plan,
which began in fiscal year 2017 (a reduction of at least 8,310 tons over the five years non-consolidated by SENKO).
SENKO Group CO₂ Emissions by Energy Source
ＯＵＴＰＵＴＩＮＰＵＴElectricity
Consumption

million kWh

Fuel Consumption*1(kℓ)

Electricity(t-CO2)

Fuel(t-CO2)Total(t-CO2)

SENKO Co., Ltd. (including SENKO Line Co., Ltd.)

72.9

24,16034,21064,18098,390Group (excluding SENKO Co., Ltd.)

79.25

95,56737,794

256,853294,647152.15

119,727

72,004

321,033

393,037

Total*1 The amount of fuel consumption is converted to crude oil (kl)

SENKO Group CO₂ Emissions■■■ CO₂ emissions (t)*2 ● CO₂ emissions per million yen operating revenue (t)*3

SENKO Co., Ltd.*4
1.21

1.15

1.10

1.03

1.01

Group total*5

Reduction ratio in CO₂emissions per million yen
operating revenue
compared to FY2016■ New target companies(11 companies)■ Existing target companies(70 companies)

Target94,276

95,336

98,02096,926

98,3908.2%▲

Achievement

Promotion of Environment Management System and disclosureof information related to CDP2020 climate change
SENKO Co., Ltd. has acquired "ISO14001," the international certification for environmental management
systems, has obtained "Green Management Certification" from the Foundation for Promoting Personal Mobility andEcological Transportation operating under the Ministry of Land, Infrastructure, Transport and Tourism, and isdeveloping activities to reduce the impact on the environment as required by each of these certifications.
From 2020 it also started responding to surveys regarding climate change run by CDP*. It achieved a C ranking(out of A to E) in the 2020 results.
* CDP is an international not-for-profit charity based in the UK that runs surveys and assessments for major companies around the world to help
them manage their risks and opportunities on climate change, water security and deforestation.

19

ISO14001

ISO14001● Certified organization
4 branches of SENKO Co., Ltd.
Sankyo Freight Co., Ltd.
● Certification No.
JQA-EM1492● Certifying institution
JQA (Japan Quality Assurance
Organization)● Certified organization
SMILE CORP.
● Certification No.
JQA-EM7663● Certifying institution
JQA (Japan Quality Assurance
Organization)

Green Management Certification● Certified organization
Harcob Co., Ltd.
● Certification No.
EMS542855● Certifying institution
BSI Group Japan● Certified organization
9 business sites at SENKO Co., Ltd., SENKO Line Co., Ltd.,
Atsugi Senko Transport Co., Ltd., Minami Osaka Senko Transport Co., Ltd.,
Chushikoku Logistics Co., Ltd., Eikichi Kaiun Co., Ltd., Minami Kyushu Senko Co., Ltd.,Tokyo Nohin Daiko Co., Ltd., Kitanihonunyu Corporation● Certifying institution
Foundation for Promoting Personal Mobility and Ecological Transportation

2017

2018

2019

2020(FY)

16.5%▲

122,652

269,876

270,385

0.72

0.72

2019

2020(FY)*2 Amount of emissions are aggregate of Scope 1 and 2 *3 Operating revenue calculated from main businesses corresponding to Scope 1 and 2*4 Including SENKO Line Co., Ltd. (split into separate companies in April 2018)*5 Total of 81 companies = 53 logistics companies + 6 Trading & Commerce companies + 22 other companies, including SENKO Co., Ltd., SENKO Line Co., Ltd.
and SENKO Group Holdings Co., Ltd.

FY2020 CO₂ Reduction Targets and Achievements (SENKO Co., Ltd. and 80 group companies)* Including SENKO Group Holdings Co., Ltd.

SENKO Co., Ltd. (including SENKO Line Co., Ltd.)Group (excluding SENKO Co., Ltd.)
Total

FY2020 CO₂ Reduction Target

Results (Achievement Rate)

1,782

1,711 （96%）

1,475

1,584（107%）

3,257

3,295（101%）(Unit: t）

CO₂ Reduction
Priority Implementation Measures

Company Category
SENKO Co., Ltd.

Total

Group

(including SENKO Line Co., Ltd.) (excluding SENKO Co., Ltd.)① Switching to power companies with low CO₂ emissions

Energy② Upgrading to energy-saving equipment (LED lighting, air conditioning)conservation
Company
Initiatives

ISO14001

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2016

393,037③ Using renewable energy sources such as solar power generation① Upgrading facilities for advanced environmentally friendly trucks(EV, natural gas, hybrid)
Fuel
conservation ② Installing environmentally friendly devices such as idling stop
assist systems

Socialrecycling① Promoting recycling of waste wooden pallets and waste plastic② Promoting the use of retreaded tires
Total

CO₂ toCustomers

Green
logistics① Implementing modal shifts② Proposing environmentally friendly efficiency (larger vehicles,
collaborative deliveries, consolidating sites)

1,000

417

1,417

603

1,014

1,617

108

153

261

1,711

1,584

3,295

884

125

1,009

Modal shift ratio 75%

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Environmental Report

Measures to reduce environmental impact■ Utilizing logistics center rooftops as a solar power businessMeasures to reduce environmental impact

The SENKO Group began its solar power generation business from FY2013 to prepare for the increasing uptakeof renewable energy, and supplies power to various power companies. In FY2020, a 618 kW scale solar power
generation system for on-site consumption and a large 60 kWh storage battery system was installed at Runtec
Corporation's Moji Branch, which are used to supply clean energy even during rain or at night time. Installation of
the first large solar power generation system for on-site consumption (1.051 MW power output) for SENKO Co.,
Ltd. is being planned in FY2021 for its Gifu Hashima PD Center, and utilization of renewable energy sources isincreasing at general logistics centers.

■ Promoting the implementation ofenvironmentally friendly trucks
We are encouraging the use of environmentally friendly
trucks throughout the SENKO Group such as electric trucks
and hybrid trucks with lower CO₂ and NOx emissions. We
first introduced large natural gas trucks in the Kansai region
in FY2020. Compared to diesel models, these trucks have
10% or lower CO₂ emissions, 70% or lower NOx emissions,and are environmentally beneficial in that they have no blacksmoke or sulfur dioxide emissions, so they are being used tomeet customer demand for low-carbon transportation.

618 kW from FY2019
We are now generating 17.1 MW from 22 sites
Power output up

Large natural gas truck used by
Osaka Senko Transport Co., Ltd.

across Japan* Based on figures confirmed by the Ministry of Economy, Trade and Industry■ Switching over to energy-saving lighting
An increasing number of logistics centers are being
switched over to high-efficiency lighting such as LED, whichhave around 75% less energy consumption (compared toconventional mercury lamps), with the amount of energy
saved the equivalent of 360 t-CO₂ annually. Multiple large
business sites were switched over to large-scale LED lighting
during FY2020, and the use of even more efficient andeffective energy sources are also being planned.

Runtec Corporation's Moji Branch began
operating from April 2020

SENKO Group's Japanese sites withsolar power generation (FY2021)
23 sites in Japan withsolar power generation(of which, three withon-site consumption)

Kita-Kanto Logistics
Center (left) andKumamoto PD Center(right) with large-scale
upgrades made to LED
lighting

SENKO Co., Ltd. 21 sites
Runtec Corporation 2 sites

Sites in operation
Second half of FY2021
Operation of solar power generation is planned at Gifu
Hashima PD Center from the second half of FY2021[Installation Plans for FY2021]■ Supporting the "Bottle to Bottle Tokyo Project"
We have pledged our support for the "Bottle to Bottle
Tokyo Project," a joint initiative run by the Tokyo Metropolitan
Government and soft drink industry groups (the Japan Soft
Drink Association). We installed new collection bins,
designed to make separating PET bottles easier, at the
Shiomi SIF Building and Heiwajima PD Center andcooperated and participated in a demonstration test to
check users' sorting behavior.
We will continue making efforts to raise the recycling rate
throughout the SENKO Group by encouraging separating
PET bottles into three types of plastics.

■ Re-utilizing discarded stretch film as recycled
garbage bags
We are implementing measures aimed at achieving a"circular economy" at the SENKO Group, by reducing theamount of new resources used and encouraging the reuse
and recycling of existing materials.
Even at logistics centers, stretch film that is used for
securing cargo had previously been discarded as industrial
waste, but we turned the film into 100% recycled garbage
bags in a joint initiative with a recycling processing business.

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Gifu Hashima PD Center

Site Name

Timing of Operation

Generating Capacity

SENKO Co., Ltd.
Gifu Hashima PD Center

Second half of FY2021

1,051kW■ "Light Down" Campaign
The "Light Down" campaign was designed so that people recognize thei m p o r t a n c e o f re s o u rc e s a n d e n e r g y a n d t o b o o s t a w a re n e s s o fenvironmental conservation, by reminding them to turn off lights at facilities
and at home.
During FY2020, the SENKO Group ran Light Down activities on fourdays—on the summer solstice, Tanabata, winter solstice, and Christmas—at
a total of 40 business sites, as well as employee homes.

New PET bottle separationcollector (Heiwajima PD Center)* Currently removed after
completion of the demonstration
test

Stretch film to prevent
cargo collapsing

SENKO Group Holdings
Co., Ltd. headquarters
before lights turned off(top row) and after(bottom row)

Used discarded
stretch film

New initiatives for biodiversity conservation
Returned tocompanies in Japan
Discarded stretch film used tomake recycled garbage bags
(Higashi-Oogishima PD Center)
Recycled resin-derived
garbage bag

Recycled resin raw
material

Collected regularly
in JapanResource-recycled
at plant in JapanWe are continuing the initiatives for biodiversity conservation that began at
the SENKO Group from FY2019. Seven branches of SENKO Co., Ltd. andten group companies joined in the "Environmental Tree Planting" initiative
during FY2020, where young trees are planted around the grounds oflogistics centers. This initiative ensures that areas of "green" will be available
for future generations, and helped to boost communication throughout
workplaces and strengthened ties with local communities.
We also cooperated with the "Osaka Bay Environment Restoration Project"
together with local environmental conservation groups. As part of this project,eelgrass seaweed was grown and then returned to the ocean to create aliving environment for marine animals. In FY2020, 70 sets were handed out tobe grown at employee households.

Taking part in the"Environmental
Tree Planting" at
a SENKO Group
logistics center

Eelgrass seaweed

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Safety programs digest

Initiatives in FY2020

Group-wide Health and Safety initiatives
To s t re n g t h e n i n i t i a t i v e s a i m e d a t e n s u r i n gcompliance by logistics companies within the SENKOGroup, we hold staff and manager training with
content including regulations to be adhered to as acargo vehicle transportation operator and internal
company regulations.

SENKO Group

Enhanced educationand training"Safety Initiatives" at a Glance!

Introduction of advanced
technologies

Ride-along instruction for younger staff

Arch lighting

Strengthening responses toeliminating accidents by younger staff

Installation of arch lighting system
to alert workers of nearby forklifts

Arch lightingrs

3 green colo
Face-to-face on-site practical training for local managers

Nationwide management system for dangerous goods
We have assigned "Dangerous Goods Supervisors" around the country who share various types of informationand focus on building up knowledge on dangerous goods, using remote conferences during the COVID-19
pandemic. Education and training on handling dangerous goods are also held to ensure a proper response is takenin the event of an emergency and to minimize damage, as a way of enhancing safety and quality awareness.
We are making every effort to create a safer workplace environment by holding special training sessions if
required due to changes in legislation.

Ride-along instruction with a trainer

Avoids collisions between forklifts and walking workers

Regional training

Truck sonars

Industry and operation-specifictraining held in each region

Reversing obstacle detection sonar installed
to alert driver of obstacles behind the truck
Sonar mounting positions: 2 at top, 4 at bottom

Training in progress
Coordination meeting held remotely

Truck sonar mounting positions (2 top, 4 bottom)

Special training for fall safety equipment

CSR VOICE
Focusing efforts on safety programs to fulfill
our responsibility as logistics operators
Safety programs were significantly affected during FY2020 due to the COVID-19
pandemic. Employees usually gather from around the country to participate in practicaland safety training sessions, but this year videos were used for training sessions and staff
from various regions connected to TV conferences. We also ran many training sessions
with small groups as another way of preventing the spread of infections. We also rolled
out new technologies, such as installing truck sonars to help prevent accidents. Despite
these circumstances, we are maintaining our focus on safety and fulfilling our CSR as alogistics operator.

Safety & Quality Handbook
Oil leak response training

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Takami Ito
SENKO Co., Ltd.
Safety, Quality and Environment
Administration Dept.
Manager of Administration Gr. for
Safety and Health

Practicing correct usage procedures of fall safety equipment

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Safety Report

Safety policy, safety management
Achievement of Safety Goals (FY2020)

SENKO Group Safety Policy

As not all goals were achieved, we will formulate and implement new measures.

Safety Philosophy

FY2020 Goal

The SENKO Group will "achieve an eventual goal of zero workplace accidents" basedon the spirit of respect and by prioritizing safety over everything else.
1. We can and must prevent all accidents and disasters.
2. Managers are responsible for the safety of employees.
3. Every employee must believe in "eliminating all accidents."

FY2020
Achievement

Vehicle accident
frequency rate

0.30 or lower

0.57

Occupational
accident
frequency rate

0.92 or lower

1.77

4. Safety ensures high quality and high productivity.

Basic Approach◎ The SENKO Group deeply recognizes the social mission of the logistics business and promotes efforts
that all employees understand correctly and that contributes to the improvement of safety by ensuring● Vehicle accident frequency rate (on-road accidents)◎ The top management will actively lead the field from the bottom to the top to unite and strive to securesafety and improve safety in business activities.

Priority Measures
1. We comply with relevant laws and regulations and fulfill our social responsibilities.

● Implement effective prevention measures based on various
accident analyses● Improve safety standards further through coordination within
the logistics group● Create an environment where safety can be substantially
improved and introduce leading-edge technology based on theverification of results● Improve implementation and increase checks of various safety
management systems to strengthen safety initiatives
performance systems

Medium-Term Safety Goals (FY2017–FY2021)

safety in business activities is the basis of our business.

◎ The basis of safety is to be strongly conscious of each person working in the SENKO Group to be healthymentally and physically, to practice proper health management.

<Priority measures>

FY2020 Achievement

Aim to reduce by half
vehicle andoccupational accidents
from FY2016 level0.59／0．
51(Logistics Group)(SENKO Co., Ltd.)

3. We prevent health problems by enhancing health management system and promoting independent health.

FY2020 Achievement(Logistics Group)

4. We actively disclose information on safety and health initiatives.

0.25

or lower(SENKO Co., Ltd. and Logistics Group)● Occupational accident frequency rate
(occupational accidents with at least four lost workdays)

1.85／1.60

2. We thoroughly carry out risk assessment and reduce all safety risks.

FY2021 Goal

(SENKO Co., Ltd.)FY2021 Goal

0.95

or lower(SENKO Co., Ltd. and Logistics Group)* Figures for the Logistics Group do not include recently acquired companies.

Acquiring "Safety Excellence Workplace" certification
Promotion of Safety Management System
We conduct "Safety Skills
Evaluations" (internal audits)every year in accordance withlegislation, and publish theprogress of improvements asimprovement ranking charts
which are distributed to branchmanagers and presidents ofgroup companies. We apply the
specific results to managementin each region, and run a PDCA
cycle for resolving issues toensure safety.

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[Safety Skills Evaluation Operating Cycle]● Implementationof safety skills
evaluation system

Feedback

A

P

Act

Plan

● Assess improvement
activities● Regional branch orgroup company Healthand Safety Committee
checks improvement
progress

C

Check

D

Do

● Feedback is provided tobranch managers and groupcompany presidents by theregional branch or groupcompany Health and Safety
Committee● Set branch index andtarget, and decide on
safety activity plans● Conduct and promote
improvement activities under
the responsibility of the safety
manager

As part of safety programs in line with thesafety management system, the SENKOGroup is aiming to have all workplacesacquire "Safety Excellence Workplacecertification."
As of the end of March 2021, 98% of all
workplaces have acquired certification (1%decrease compared to previous year).

98% of all SENKO Group
workplaces have acquired
certification* Safety Excellence Workplace certification:
Certification acquired from the Japan Trucking
Association for workplaces with traffic safety andother initiatives that are deemed to meet specificstandards.

G-Mark issued by
the Japan Trucking
Association

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Health initiatives digest

Initiatives in FY2020

Recognized for the fourth consecutive year as"Certified Health and Productivity Management
Outstanding Organization (White 500)"
The SENKO Group has made the "SENKO Group Holdings Health Management
Declaration" available inside and outside the company and has long encouraged activities
aimed at promoting health management, as the health of employees is considered a key
management issue. For the fourth consecutive year, we were recognized for these initiatives on
March 4, 2021 with the "Certified Health & Productivity Management Outstanding
Organizations Recognition Program 2021 (also called White 500)" jointly run by the Ministry of
Economy, Trade and Industry and the Nippon Kenko Kaigi that honor outstanding enterprises
engaging in efforts to advance health and productivity management.

Aiming to be a company promoting health management with Change and Challenge"Health Initiatives" at a Glance!

High praise for "health management" activities held at group companies
Senko Information System Co., Ltd. is a new company certified in the Large Enterprise Category of "Excellent
Organization of Health & Productivity Management 2021." In addition to Toyohashi Senko Transport Co., Ltd. and Harcob
Co., Ltd. being certified for the third consecutive year in the SME Category, six new companies, Fuji Senko Transport
Co., Ltd., Hanshin Senko Transport Co., Ltd., Esaka Logistics Service Co., Ltd., Hanshin Transportation Co., Ltd., Tokai
Senko Transport Co., Ltd., and Tokyo Nohin Daiko Co., Ltd. were also certified in the category.
We will continue supporting and expanding health promotion initiatives for employees so that even more groupcompanies are certified in the future.

Companies certified in the SME Category of "Excellent Organization of
Health & Productivity Management 2021"
Events usually related to health management were difficult to hold due to the COVID-19 pandemic, but our groupcompanies took a more multi-faceted approach to health management than normal, by preventing the spread of
infections and planning new measures that have no risk of infections.

Tokyo Nohin Daiko Co., Ltd.

Tokai Senko Transport Co., Ltd.

Visualization of fat and sugar content in food items

Campaign to measure body weight for three months

To raise health awareness amongst employees, a"visualization" of the amountof fats in food or sugar indrinks was set up and put
on show next to the periodic
h e a l t h c h e c k u p w i n d o w.
Drivers were also provided
with smartwatches, which areused for health management. "Visualization" of the amount of fat

A new 3-month campaign was held for measuring
b o d y w e i g h t . Ta k i n g d a i l ymeasurements makes employees
more aware of their body weight,
and helps to encourage them to
eat proper diets without snacks
as well as exercising. Participants
who successfully measured theirbody weight for three months
were presented with a certificate Participant receiving a certificate
of completionof completion.

● Use of original health app

Toyohashi Senko Transport Co., Ltd.

Harcob Co., Ltd.

"New Healthy Activities" that canbe used even during the COVID-19
pandemic have been available fromMay 2021 on the SENKO Group's
original health app "Chareco(Challenge + Recording)." In additiona step meter, the app records a
range of data related to lifestyle
habits (such as body weight, diet,sleep, alcohol consumption,s m o k i n g , fi t n e s s h a b i t s ) a n dincreases user awareness to help
them improve their lifestyle habits.

Tough measures to prevent infections

Strengthening existing initiatives

A range of measures were gradually implemented,
such as doing warmup exercises at morning meetings
while ensuring social distancing, installing splash guards
to prevent infectious diseases, measuring temperatures
when drivers checked in, disinfecting, and encouraging
no smoking.

Improvements were made to initiatives, like introducing
d ays off an d n o over tim edays twice a month. Somebranches also set up
thermal cameras capableo f re c o g n i z i n g f a c e s a n dmeasuring body temperature,with the aim of healthmanagement during the
Thermal camera in operation
pandemic.

Main initiatives for health management
Promoting healthy lifestyles at all ages
● Health lectures and seminars
The "Mental Health Training" for newly appointed
division managers and section managers, "Health
Literacy Lecture" for female employees andmanagement positions, and "Lifestyle Disease Seminar"for people who are concerned about their health, were
all held online in FY2020.

"Chareco" health app● Promoting mental and physical health withsportsIn addition to judo, golf, swimming, kendo, and Go, a
new women's tennis club and track & field club havebeen established. The four new tennis courts built at theTokyo headquarters are being fully utilized, and the
men's tennis club also uses the courts for training.

Tennis training

We have assigned 22 nurses (occupational health and general
nurses) to the main areas around the country who coordinate theirefforts with 102 health promotion supervisors to provide a range ofhealth-related advice to employees.
From FY2020, we created a system to implement company-wideplans and policies more effectively, by enlisting "corporate occupational
physicians" (Dr. Kobayashi and Dr. Odagami) to oversee theoccupational physicians (78) and nurses in each area. Last fiscal year inparticular, when measures were required to combat COVID-19, specificstandards were put in place to ensure a balance for employees tomaintain health and perform their business activities.
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2 0 2 1or sugar in foods and drinks

CSR VOICESENKO Group's health promotion system

27

SENKO Group

Ramping up health initiatives and aiming to become
a company with even better health management
With employee health considered the foundation of management, we have enhanced
health initiatives throughout the entire group based on the "SENKO Group Holdings
Health Management Declaration." This year we are using our original app "Chareco" tofurther enhance our efforts.
We also coordinated our efforts with health promotion supervisors, nurses, corporate
occupational physicians, and other specialists around Japan while implementing work
style reforms and measures to achieve a work-life balance. Meanwhile, we are also rollingout cultural and sports activities as part of efforts toward even better health management.
Occupational nurses assigned around Japan

Yoshihisa Moriguchi
SENKO Group
Holdings Co., Ltd.
Executive Officer, Supervisor of Culture &Sports Promotion(and) Supervisor of Health Promotion (and)Manager of Health Promotion Dept.

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Health initiatives digest

Initiatives in FY2020

Rewarding outstanding social contribution activities
within the group

Runtec Corporation and Saitama Senko Logiservice Co., Ltd.
selected for "Excellence Award"
The SENKO Group established the "Social Contribution Activities Commendation" program in FY2016 torecognize and reward social contribution activities submitted by each group company. After being screened by the"Social Contribution Promotion Committee," two teams were selected for the Excellence Award in FY2019.

Runtec Corporation

School visit workshops for traffic safety to protect
local children

Excellence Award

The SENKO Group's logistics companies visit elementary schools to run its "Traffic Safety Class for Children," butat Runtec Corporation, dangerous areas were examined and studied beforehand, so that detailed explanations
could be provided during the class. As a vital activity protecting the lives of children, these workshops have beenpraised by the local community and schools, and have even been covered on TV.
Examining "dangerous areas"
beforehand

Explaining traffic safety in a fun and simple way

Saitama Senko Logiservice Co., Ltd.

Holding workplace orientation and work experience
to support independence training for younger people

29

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2 0 2 1Work experience"Health Initiatives" at a Glance!

Helping to boost local industry"Pear Owner System" received award from Ministry ofAgriculture, Forestry and Fisheries, Chugoku-shikoku
Regional Agricultural Administration Office
SENKO School Farm Tottori Co., Ltd.

Praised as a success story for maximizing the potential of rural areas
SENKO School Farm Tottori Co., Ltd. focused on the issue of decreasing number of farms producing pears—
considered a specialty in the region—by launching the "20th Century Pear Owner System" to appeal to a broad
range of people to become owners in an attempt to promote agriculture as well as the tourism industry. This
popular system was recognized and selected by the Ministry of Agriculture, Forestry and Fisheries,
Chugoku-shikoku Regional Agricultural Administration Office as a success story of rejuvenating communities andraising income levels by maximizing the potential of rural areas to achieve a "stronger agriculture, forestry, andfishery sector" and "create beautiful and vibrant rural areas."
The reasons for selection are given below. The number of owners has increased every year, and we are planningto continue running activities that contribute to local communities.
① Halted the decrease in cultivated land for 20th Century Pears, and helped to re-establish pear production areas② Contributed to local communities where pears were selected as "gifts for donation to municipality tax incentives"
together with local hot spring accommodation and hands-on pear cultivation workshops
Helpedto foster training for new farmers③

Interview at the awards ceremonyAwards ceremony commemorative photo

Excellence Award

Saitama Senko Logiservice Co., Ltd. worked with the Fukaya Youth Support Station non-profit organization
providing workplace orientation and work experience to support independence training for younger people
between 15 and 39 years old who are not working or studying.
These efforts resulted in eight people being hired in each region, and played a role in address the social problem
of assisting people who struggle to find employment.
Workplace orientation

SENKO GroupCSR VOICE
Pro-active measures contributing to the developmentof communities and society
Based on the Standards of Business Conduct of "As a good corporate citizen, the
SENKO Group will be pro-active in participating in social activities, and will create aspiritually affluent society and contribute to the development of society and the local
community by promoting cultural, arts and sports activities and independent social
contribution activities," we are coordinating efforts with the local community with the aimof contributing to development of society. The effects of the COVID-19 disease still remain
through FY2020, but we responded to requests from local communities to continue
holding traffic safety sessions, cleanup activities and blood donation drives that arecommon throughout the group while ensuring measures to prevent infections, andactively focused on promoting sports and culture.

Makoto Yamazaki
SENKO Co., Ltd.
Executive Officer and Senior
Manager of General Affairs Dept.

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Social Report

With Our Employees, With the Regional Community

Social contribution activities held at group companies

Working with Local Communities■ Dance classes held at elementary schools and kindergartens (Blue Earth Japan Co., Ltd.)■ Continuing with "Delivering picture books to children in Asia"

Blue Earth Japan Co., Ltd. operates general sports clubs in Yamanashi, Tokyo, Kanagawa, Shizuoka, andNagano prefectures, and has responded to requests from local governments to hold dance classes for elementary
schools and kindergartens. This is one way we are supporting people's healthy lifestyles.

Activities involving delivering picture books to children is a continuation of the "Picture books as presents for kids
in areas affected by the Great East Japan earthquake" initiative, and in FY2020 was held from October 22 to
December 4. There were 1,499 books donated from throughout the group, which was a significant increase overthe 508 books donated the previous year.
Picture books cherished by others in the past were delivered to facilities like kindergartens and nursing homes,
where the recipients were overjoyed. Children were seen choosing their favorite picture books from the many
delivered, with others heard saying "Our new facility has a shortage of picture books, so it is great to receive somany" and "The picture books are all so clean and of such high quality, and we want to let children read them assoon as possible."
Activities delivering picture books will continue being held as part of CSR efforts throughout the SENKO Group.

Request from Kofu City Board of Education
In Kofu City, spare elementary school rooms after classes finish or on weekends are being used to provide
children the opportunity to take part in additional study, sports, cultural arts, and interaction with local communities.
Blue Earth Japan Co., Ltd. Aeon Town Yamanashi Chuo Branch participated in activities aimed at creating anaffluent and vibrant environment for children in the local community. Staff visited Ishida, Kokubo, Maizuru, Chizuka
and other elementary schools to run dance classes in a fun, interactive setting.

Request from Minami-Alps City
Minami-Alps City in Yamanashi Prefecture holds
a range of activities with the aim of "gaining as
many experiences as possible" as part of children's
lifelong education. Blue Earth Japan Co., Ltd.
endorses these activities and runs dance classes
at local kindergartens (such as Hyakuta, Hatta andShirane-higashi kindergartens). This activity has beenrunning for 15 years, with many children participating
during that time. In this way, we are helping to provide
children with a wealth of information.

1,499 picture books were donated!

Children at the "Kitanakamoto Kindergarten"
where the books were delivered

Residents of the special care nursing home
"Seikazoku no Ie"

Children's smiles all around during the dance classes■ Truck with Minamata City tourism wrapping
As part of tourism marketing efforts in Minamata City, Minami Kyushu Senko Co., Ltd. began running a truck
wrapped with illustrations and local tourist sites (such as Yunoko beach park and Ecopark Minamata Rose Garden)
drawn by Minamata cartoonist Hisashi Eguchi.
The departure ceremony was held by Minamata City on September 12, with approximately 60 guests
participating in the event. The wrapped truck will tour around Japan. We will be taking an even more professional
approach to our work while also playing a role in rejuvenating local communities.

Wrapped truck will promote Minamata City around Japan31

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Corporate GovernanceCorporate Governance Approach and System

Enhancing the Risk Management System

With businesses that nurture people and involves highly public work that supports people in their daily lives, the
SENKO Group believes that all corporate activities should thoroughly comply with laws as a way of fulfilling its
corporate social responsibility and earning trust from society. To achieve this, more efforts are being made to honethe system that places corporate governance as one of the highest priority for management.

We have developed a system for responding to possible risks associated with business, with preparations incase of emergency situations prioritizing human life, reducing physical damage, restoring business operations
quickly, maintaining the trust of society, and contributing to the local community.

General Meeting of Shareholders
Appointment/Dismissal

Accounting
Auditors

ReportAudit

Board ofCorporate Auditors

Accounting
Audit
Audit

ReportAssist/Report

Auditing Dept.

Legal Counsel

Audit

AdviceAppointment/Dismissal

Appointment/Dismissal

ReportBoard of Directors

Executive Officers

Selection/Supervision

DialogReportReportPresident andRepresentative
Director

ReportInternal Controls
Committee■ Revisions to the Risk Guidebook■ Tsunami Evacuation Training

Revisions have been made to the "Risk Guidebook"that includes case studies of past risks, examples
from other companies, and key points for risk
management.
This information is used to better understand thedangers associated with running businesses, and forrisk training to ensure that those risks do not escalate
further.

Branches near coastal areas of Kyushu held
evacuation training in preparation of fires andtsunamis that are expected after an earthquake
strikes. In preparation for the expected Nankai troughmegathrust earthquake, training will continue beingorganized to ensure quick evacuations in the event of
a disaster.

■ Development of Business Continuity Plan (BCP)
Instruct

CSR Promotion
Committee

ReportOperating companies
Subsidiaries directlyCore companies
supervised by holding
company
Runtec Corporation
Living Support
SENKO SHOJI Co., LTD. SENKO
Business Support
AST CORPORATION
Co., Ltd.
Affiliated companies
SMILE CORP.

Supervise Report

ReportEach committee

Compliance with the Corporate Governance CodeThe Financial Services Agency and the Tokyo Stock Exchange, Inc. released the "Japan's Corporate GovernanceCode" that entered into force in June 2015, incorporating the fundamental principles for corporate governance. We
have disclosed all the elements of the Corporate Governance Code on the Company’s website to clarify ourposition on working to enhance corporate governance based on this code.

Every Group location has established a business
continuity plan (BCP) in order to swiftly recoverbusiness in the event of a disaster. In an emergency,
support and recovery activities will be carried out
promptly under the direction of the head office and the
manager of the department taking countermeasureson the ground using the BCP.
When data centers are affected by a disaster, abackup data center will restore systems within 30
minutes, even if the core system shuts down toensure that business systems can be maintained.
We have also developed our own system so if
disaster strikes, employees can use their smartphones
or other devices to report on their safety, to allow us toquickly check how the disaster may have affected
employees. We also hold mock training for all group
employees twice a year to ensure that they can all
quickly report on their status in the event of an actual
disaster.

Backup data center

Customer

See the website below for details.

Ordinary
operation

Public line

● Report on Corporate Governance ● Initiatives for the Corporate Governance Code principles

https://www.senkogrouphd.co.jp/ir/governance/

Send, receiveand processdata

Emergency

Switchover

Compliance-Based Management
Compliance-based management, which complies with laws and regulations and engages in ethical businessactivities, is the base for a company to fulfill its social responsibility and earn the trust of stakeholders.
The SENKO Group has established, based on a thorough understanding of the Group’s social obligations, the
SENKO Standards of Business Conduct which prescribes all items that executives and employees must observefor every aspect of their jobs.
33

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Firefighting training using water fire extinguisher

Each business site
Internal
network

Osaka Center

Each business site

(Osaka Prefecture)

Backup Center(Miyazaki Prefecture)
Backup System

Ordinary
operation

Each business site

Backup data

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34

ESG highlights

Current as of December 4, 2020

See Web for details

E nvironment
CO₂ emissions*1

570

2,010
t-CO2

269,876

267,228

492.1

Energy conservation Fuel conservation

billion yen

t-CO2

t-CO2

t-CO2

3,616

37.4%

2019

Renewable energy solar power
generation achievements

Green Logistics
modal shift ratio

Eco-friendly vehicle
ownership ratio*2(Senko Co., Ltd. non-consolidated)
Unit: 1,000 kWh

Unit: %

Unit: %

18,342
15,573

Total

2018

254

7.0%
Fuel conservation
1,352

2017

1,352

Social recycling

Social recycling
254

570

529.6

See P20 for details of
FY2020 achievements

Unit: t-CO₂

Unit: billion yen

269,876
264,630

CO₂ Reduction
Activity Achievements

Consolidated
operating revenue

Unit: t-CO₂

70.0

thousand kWh

18,057

18,342

2018

2019

%

66

%

Energy conservation
2,010

55.6%

2017

(FY)

(FY)

*1: Total of Scope 1 + Scope 2*2: Excludes private non-profit vehicles

S ocial
Occupational accident
frequency rate*3
Unit: Frequency rate

Occupational accident
strength rate*3

See P26 for details of
FY2020 achievements

2.235

2017

1.455

2018

0.130

(FY)

Cleanup activities

14,619

0.130

0.065

2019

Unit: people

Unit: Strength rate

2.235

1.707

Social contribution activities

2017

Traffic safety
activities

1,922

Blood donation drive

1,129

Ratio of Female
New Recruits

Ratio of Female
Management Positions

Unit: %

Unit: %

46.4

%

9.1

%

Ratio of Female Directors
Unit: %

18.2

%

0.053

2019

2018

(FY)

*3: Applicable scope (SENKO Co., Ltd., SENKO Group logistics companies)

G overnance

External assessment

Ratio of External Directors

Ratio of External Auditors

Unit: %

Unit: %

27%

50

Selected ESG Indexes

Certified as Outstanding Healthand Productivity Management
Organization (White 500)%
2021 CONSTITUENT MSCI JapanESG Select Leaders Index
2020 CONSTITUENT MSCI Japan Empowering
Women Index (WIN)35

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Corporate data

Current as of March 31, 2021
(Group Total)

Company overview
Trade NameSENKO Group Holdings Co., Ltd.

Capital26,564 million yen

Established

September 1916

Incorporated

July 1946

Headquarters

Shiomi SIF Bldg., 2-8-10 Shiomi, Koto-ku, Tokyo 135-0052

Representative

Yasuhisa Fukuda, President and Representative Director

Business Sites

633 in Japan; 64 overseas

Employees

19,755

Vehicles

7,538 (including trailers)

Consolidated operating revenue

Current as of March 31, 2021

Main logistics centers that began operations during FY2020(billion yen)
600
500

Business sites in Japan (633 sites)

455.4

492.1

529.6

570

572.4
Hokkaido

11 sites

400
Runtec Corporation Moji Branch

SENKO Co., Ltd.
Tachikawa Logistics Center

300

SENKO Co., Ltd.
Kurihashi PD Center

Tohoku20 sites

200

Kinki

100

Controlled Vessels 69

0

Logistics Centers 3.92 million m2

191 sites

Chushikoku

2016

2017

2018

2019

73 sites

2020 (FY)

Kanto

188 sites■

KyushuConsolidated ordinary profit

Consolidated net income(billion yen)(billion yen)

25

20

19.9
17.3

20.7

22.2

15

9

10

6

5

3

0

0

2016

2017

2018

14.2
11.7

2019

2020 (FY)

9.0

Chubu

79 sites

15

12

17.3

71 sites

12.1■ SENKO Group Holdings Co., Ltd.
Headquarters (Tokyo)

Business sites overseas (64 sites)

Current as of March 31, 2021

Main logistics centers that began operations during FY2020

9.5

Sinotrans SENKO International
Cold Logistics (Shanghai) Co., Ltd.
Shanghai Low-temperature
Logistics Center

2016

2017

2018

2019

2020 (FY)

North America

Kazakhstan

ChicagoWinchester
Los Angeles

Almaty■ Local subsidiaries andoverseas business sites

Germany
Düsseldorf

Total logistics center floor area

Vehicles (including trailers)■■(million m2)
4

3.22

3.42

3.66

3.87

3.92

3

(Vehicles)
8,000

6,000

2

■

China

■

7,538
5,914

6,412

6,840

Mexico■■■Beijing

Querétaro
Veracruz
San Luis Potosí

5,180

■

DalianQingdao
Zhangjiagang

Guangzhou■

37

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2017

2018

2019

2020 (FY)

0

■

2016

2017

2018

2019

2020 (FY)■

Vietnam■

Pho Noi
Ho Chi Minh■

Hong Kong

Seoul
Busan

Singapore

NantongShanghai
Changshu

2,000

2016

■
■

■

■

■
■■
■

Suzhou

0

■

■

■

4,000

1

Korea

■
■

■

■

MyanmarIndonesia

YangonJakartaThailand
BangkokLaem Chabang

Australia
Ingleburn

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