DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2

Strengthening of Sustainable Management
At a time when society as a whole is facing many urgent issues that must be addressed, such as climate change, the declining workforce, human rights, and inequality, it is becoming increasingly important that all corporations also respond to such social issues.
Based on these circumstances, the Yamato Group is promoting sustainable management with the aim of realizing the improvement of
medium- to long-term corporate value and a sustainable society.

Vision for the Environment and Society
Environmental Vision

Material Issues

Refine Choices for Material Issues

STEP1

Based on risks and opportunities in the Yamato Group’s businesses,
we identified important material issues that contribute to realizing asustainable society and improving medium- to long-term corporate
value. Among these issues, we recognize that Energy & Climate,
Labor, Human Rights & Diversity, and Data Utilization & Security havea particularly significant impact on the Group’s sustainability. As
such, we are promoting initiatives in conjunction with business structure reforms.

Hold Stakeholder Dialogues (November 2019)

STEP2

STEP3

Connect. Deliver the future via green logistics
The Yamato Group will further promote its vision of “Connect. Deliver the future via green
logistics.” By leveraging cutting-edge connections between data, people, and resources, wewill increase the efficiency of transportation and provide delivery services that are betterfor the planet, our customers’ lifestyles, and the economy. We will also support a strong,smart society by striving toward virtually zero GHG emissions*1 and by creating businessmodels based on sustainable resource use and consumption.

Material Issues

Themes of Initiatives

Atmosphere

Through co-creation and fair business activities,
help create a society that “leaves no one behind”*2
As a social infrastructure company, the Yamato Group will contribute to improving thequality of life of various people, including employees and customers, by reducing and eliminating various inequalities and obstacles in society. We will do this by delivering goods
and value to everyone through fair and efficient business processes.
By promoting digital innovation and our strengths offline, as well as co-creation with various partners, we will be a leader in solving social challenges and creating a society thatleaves no one behind.

Resilience ofCompanies & Society

Labor

Human Rights &Diversity*2 To leave no one behind: A basic philosophy of the SDGs
Safety & Security

Sustainability Promotion System
The Yamato Group discusses and makes decisions on sustainability matters at the Management Committee meetings and Board of
Directors meetings. To promote sustainable management, the Yamato Group Environment Committee and Yamato Group Social
Promotion Committee, which are chaired by the president and comprise the executives (including senior managing executive officers
and managing executive officers) of Yamato Transport, meet once a year to discuss and make decisions on issues related to sustainability. Further, four subcommittees in the environmental field (energy, climate, and pollution; resources and waste; management andcollaboration; and products and services), and three subcommittees in the social field (human rights and diversity; supply chain management; and local communities) each meet three times a year, considering measures and implementing progress checks.

Data Utilization &Security

Supply Chain
Management

Community

Identifying Material Issues (January 2020)
At the same time as identifying material issues, we formulated thetransformation plan “YAMATO NEXT100” as a grand design for management
reform over the medium to long term.

Risk/Opportunity

Mitigate climate change

Risk

Clean up the skies(prevent air pollution)

Pursue transportation that reduces the effects of
air pollutants emitted by vehicles and cleans up
skies in local communities

Risk

Drastically reduce our environmental burden andpromote the use of technology and creation ofopportunities for minimizing environmental
impact

Risk

Opportunity

Support a society that
combats environmental
changes

Collaborate with diverse partners to increase theresilience of stakeholders and local communities
and create environmental value

Risk

Opportunity

Create a work
environment where
employees can thrive

Implement a high-value-added model labor andpromote “decent work”

Risk

Opportunity

Create a corporate culturethat respects humanrights and diversity

Respect human rights, recognize diversity, andcreate a framework for human rights due
diligence

Risk

Opportunity

Create initiatives to carryout business in a safe andsecure manner

Maintain traffic and labor safety and provide
reliable service

Risk

Create an information
security infrastructure

Create an information security infrastructure andbusinesses that utilize data to resolve social
issues

Risk

Opportunity

Develop a common
understanding withstakeholders

Build a stable business infrastructure throughsound, resilient supply chains

Risk

Opportunity

Create corporate
citizenship activities thatare rooted in local
communities and create aframework for businesscreation

Establish corporate citizenship activities that are
unique to the Yamato Group.
Create a business model that revitalizes local
economies

Promote resource
conservation and reduce
Resource Conservationwaste& WasteSocial Vision

VisionWe invited experts from universities, international institutions, and securities
companies and exchanged opinions on material issues and the expected roleof the Yamato Group in solving environmental and social issues.

Reduce GHG emissions by using electricity
generated via renewable energy sources,enhancing transportation efficiency through theutilization of digital technology, and reducing theuse of dry ice, etc.

Energy & Climate*1 In-house emissions of consolidated companies in Japan and Swan Co., Ltd. (Scope 1 & Scope 2)

Based on international frameworks, such as the GRI Standards, the Sustainability
Accounting Standards Board (SASB), ISO 26000, and the Sustainable
Development Goals (SDGs), as well as ESG research items that investors consider to be of high importance to the Group’s business, we considered therisks and opportunities of the Group’s business and narrowed down candidates for material issues.

Related SDGs

Opportunity

Opportunity

Yamato Holdings Board of Directors
Yamato Holdings Management Committee
Yamato Group Environment Committee

Yamato Group Social Promotion Committee

Yamato Group Environment Subcommittee

Yamato Group Social Subcommittee

Key Initiatives to Strengthen Sustainable Management
2020

2021

2022

2023

Formulation of vision for the environment and society and long-term targets
GeneralFormulation of Sustainable Medium-Term Plans 2023
Creation of Sustainability Promotion System

Yamato Transport

Group Companies

Environment Committee

Environment Committee

Environment

Regional Environment Committee
Regional Branch Office Environment Committee evelopment of Environmental Management
D
System (EMS) ormulation of Yamato GroupF
Environmental Policy

Announcement of mid-term targets for reducing GHG emissions by 2030
Announcement of third-party verification related to performance in reducing GHG emissions
Announcement of support for TCFD recommendations and results of scenario analysis

Formulation of Yamato Group Human Rights Policy
SocialFormulation of Yamato Group Responsible Procurement Policy

 ormulation of Yamato Group HumanF
Resources Management Policy

Formulation of Yamato Group Business Partner Guidelines

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Part 2

DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Sustainable Medium-Term Plans 2023

Part 2

Details on Sustainable Medium-Term Plans 2023 can be found on our corporate website.
https://www.yamato-hd.co.jp/english/csr/

In order to promote sustainable management, the Yamato Group has set out specific actions to address material issues in Sustainable
Medium-Term Plans 2023. In the fiscal year ended March 31, 2023, the second year of these plans, we announced our mid-term environmental targets for reducing GHG emissions by 2030 and are engaging in measures to reduce GHG emissions such as through the introduction of
EVs and solar power generation equipment. Regarding social aspects, we are developing an environment that respects diverse humanresources and enables employees to play an active role. At the same time, we are engaging in measures to promote addressing social issues
and community development through co-creation.

For ESG-related numerical results, please see “ESG Data.”
https://www.yamato-hd.co.jp/english/csr/esg/performance.html

Medium-Term Environmental Plan 2023
Material Issues

Energy & Climate

Mitigate climate change

Atmosphere

Clean up the skies (prevent air pollution)
Resource Conservation & Waste

Promote resource conservation
and reduce waste
Resilience of Companies & Society

Support a society that combats
environmental changes

Targets for the Fiscal Year Ending March 31, 2024

Progress in the Fiscal Year Ended March 31, 2023

Examples of Initiatives• Introduction of EVs (868 vehicles as of March 2023)• Introduction of solar power generation equipment (11 units as of March 2023)•S witch to a menu of electricity generated via renewable energy sources• L aunch of construction for systems related to optimization of EV operations, standardization of
charging, and flexible inter-base power distribution• Improvement of loading efficiency per vehicle based on data visualization• Implementation of a modal shift•C onsolidation of TA-Q-BIN sales offices• Introduction of LEDs (1,241 locations as of March 2023)

 educe GHG emissions 10% compared with the fiscal year ended
R
March 31, 2021*1

7% decrease educe GHG emission intensity 10% compared with the fiscal year
R
ended March 31, 2021*1,*2

6% decrease chieve 30% usage rate of electricity generated via renewable energyAsources*3

22% usage rate

 educe NOx and PM emissions from vehicles 25% compared with theRfiscal year ended March 31, 2021*4

NOx emissions: 23% decrease/PM emissions: 22% decrease • Holding of discussions and continuation of technical checks on automated mobility with suppliers

Introduce vehicles that emit fewer air pollutants

Introduction of environmentally-friendly vehicles

 se 55% renewable resources and recycled materials for paperUmaterials*5

63%Reduce landfill disposal rate (final disposal rate) to 5% or less*7%

 rovide products utilizing recycled materials and resource savingPmaterials

Switch to recycled materials and resource saving materials inall 19 applicable materials

Advance green logistics in collaboration with our business partners

 romotion of developing an environment for calculating theP
GHG emissions of our transportation partners

 ollaborate with society to improve environmental resilienceC(verify and share information about mitigating climate change) iscussions regarding development and utilization of carD
tridge batteries for EVs

Provide environmentally friendly products and services*7

Launch of development of tools to visualize GHG emissions

6

that contribute to low-carbon transportation and the prevention of air pollution• Introduction of environmentally friendly vehicles (36,902 vehicles, including EVs, as of March 2023)•E xpansion of renewable resources and recycled materials for containers andpackaging material utilization• Improvement of methods for waste treatment and separation• L aunch of development of materials for reuse and common reusable materials• L aunch of data collection to calculate GHG emissions of transportation partners• Implementation of studies aimed at standardization and commercialization of removable andportable cartridge batteries for EVs• L aunch of development for tools to visualize GHG emissions based on the international standard ISO 14083:2023*9

Medium-Term Social Plan 2023
Material Issues

Labor

Create a work environment where
employees can thrive

Human Rights & Diversity

Create a corporate culture that respects
human rights and diversity

Safety & Security

Create initiatives to carry out businessin a safe and secure manner

Data Utilization & Security

Create an information security
infrastructure
Supply Chain Management

Develop a common understanding
with stakeholders

Targets for the Fiscal Year Ending March 31, 2024

11.2% increase educe overtime for employees 20% compared with the fiscal year
R
ended March 31, 2021

7% decreaseAchieve 90% annual paid leave utilization

98.1%

Achieve 100% attendance at human rights training for all employees

100%Ensure percentage rate of employees with disabilities is 2.5%

2.9%


Doublethe number of women in management (executives) compared with the fiscal year ended March 31, 2021, and ensure 10% of
all managers are women1.1 times (369 women)/5.7%

 chieve zero serious traffic accidents (fatal traffic accidents for whichA
the Company is responsible)*3

Zero educe number of traffic accidents (where bodily injury occurs) 50%
R
compared with the fiscal year ended March 31, 2020*3

16% decrease (216 accidents)

Achieve zero serious occupational diseases (work-related deaths)*3

Zero educe frequency of lost workday injuries*8 by 20% compared withR
the fiscal year ended March 31, 2020*3

8.9% increase evelop an infrastructure for creating businesses that utilize data toDresolve social issues

 evelopment of infrastructure for creating businesses thatDutilize data to resolve social issues

Achieve zero serious information security incidentsZero nsure 100% deployment of information security managers at major
E
organizations and 100% implementation of training for information
managers*4

 nsuring 100% deployment of information security managE
ers at major organizations and 100% implementation oftraining for information managers

 omplete development and demonstration of monitoringC
framework*4

Implementation and completion of monitoring tests andverification for key suppliers

Community

Create corporate citizenship activities thatare rooted in local communities and createa framework for business creation

Progress in the Fiscal Year Ended March 31, 2023

Improve operating revenue per employee (compared with the growthrate for the fiscal year ended March 31, 2021)

 omplete development of a framework to measure effectiveness ofC
corporate citizenship activities and business in resolving social issues

Examples of Initiatives• Implementation of workplace discussions for all business managers at Yamato Transport•C ompletion of formulating definitions of duties for occupations and roles•R evision of development system for regular university graduate hires•F ormulation of Yamato Group Human Resources Management Policy•C ompletion of development for multi-lingual tools, such as documents related to recruitment
and health and safety and training manuals• Implementation of training programs for female employees aiming to become sales officemanagers• L aunch of creating manuals for standardizing methods for recruiting and retaining people withdisabilities•P rovision of coaching through ride-along guidance and dashcam videos• Implementation of safety training and skill tests for safety experts• Introduction of vehicle safety equipment (electric parking brakes and wide-angle rear cameras)•C reation of occupational health and safety management system• L aunch of operation for contact points that utilize data
• Information security training for all employees at Yamato Transport (100% attendance rate)• Implementation of on-site and internal audits aimed at continued ISMS certification• Implementation of monitoring tests for key suppliers at 28 companies•D ecision on how to advance monitoring in the fiscal year ending March 31, 2024 (standards forselecting key suppliers, methods for implementing monitoring, and structure for contracts andpromotion)

 xamination of deploying people to promote corporateE
citizenship activities within the Company•E xamination of creating a mechanism to encourage employee participation incorporate citizenship activities
Examination of mechanisms and in-house support structures • C ompletion of creation of support system aimed at creating an in-house environment to create
for creating businesses that resolve social issues, contributing projects on local (social) issues

to business growth*1 In-house emissions of consolidated companies in Japan and Swan Co., Ltd. (Scope 1 & Scope 2) *2 tCO2e/operating revenues of ¥100 million*3 For consolidated companies in Japan and Swan Co., Ltd. *4 For Yamato Transport *5 Paper materials refer to cardboard for shipping, pickup and delivery materials, etc.
*6 Equivalent to reduction by half compared with the past *7 Products and services with environmental value and a low burden on the environment*8 Number of work-related fatalities and injuries per million working hours *9 Standards for calculating and reporting GHG emissions from transportation

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DESTINATION OF ONE YAMATODESTINATION OF ONE YAMATO

Part 2

Part 2

Measures That Support Sustainable Growth
Community

Safety Initiatives
Based on its stance of respecting human life and ensuring safety, as laid out in the Group Corporate Philosophy and Corporate Stance,
the Group thoroughly adheres to its philosophy of placing safety first and business second in the workplace, positioning respect forhuman life as a priority at all times. Our partner companies and business partners also share our philosophy of respecting human lifeand ensuring safety and endeavor to ensure safety in all of their business activities.

The Yamato Group conducts business activities deeply rooted in communities by developing a logistics network across Japan.
Co-existence and co-prosperity with members of local communities are vital for sustainable growth and we aim to create social value
and economic value by resolving social issues at the same time as collaborating and co-creating with partners.

TOPICS

Initiatives for Ensuring Safe Transportation
The Safety Department of the Corporate Division at the head
office of Yamato Transport is at the center of promoting initiatives for ensuring even greater safety. We are taking steps toimprove the frontline working environment through efforts
including the creation of a system for training safety experts andthe enhancement of safety training. At the same time, we arepromoting the integration of Groupwide standards and frameworks for safety management. We share key points for safe driving and other information by releasing safety communication
tools for transportation partners.
We are also continuing to work on hardware aspects, such as
introducing vehicle safety equipment connected to preventing
traffic accidents, in addition to software aspects, such asenhancing the skills of drivers. For example, we have been introducing various equipment to Yamato Transport pickup anddelivery vehicles, including electronic parking brakes that aim toprevent accidents involving vehicles moving when unattended,Introduction rate for vehicle safety equipment

wide-angle rear-view cameras that reduce accidents whenreversing by vertically and horizontally widening the driver’s fieldof view, and brakes that reduce collision damage by detecting
obstacles, sounding an alarm to alert drivers, and assisting withbraking operations. These innovations will lead to reducing thenumber of accidents. Furthermore, we have decided to purchase
only new automatic vehicles for pickup and delivery, aiming to
reduce the burden of driving operations and address the recruitment and retention of new drivers, mainly young people.
To develop an environment in which Yamato Group and partner company employees can carry out loading and unloading
operations more safely, in conjunction with the consolidationand enlargement of TA-Q-BIN sales offices in the structuralreform of networks and operations, we are promoting measures
including the installation of arrival berths and introduction of lift
tables for large size vehicles to avoid the use of forklifts atnewly developed large-scale bases.

Wide-angle rear-view cameras

Contributes to safety by showing an even wider view from behind vehicles(130° vertically and 170° horizontally)

Scope: Yamato Transport pickup and delivery vehicles

2020/3 2021/3 2022/3 2023/3
Electronic parking
brakesNumber of units

4,645

6,469

9,887 11,375

Introduction rate

10.9%

15.1%

22.6%

Brakes that reduce
collision damage

Number of units

2,323

5,619

8,924 11,237

Introduction rate

5.4%

13.1%

20.4%

25.3%

Wide-angle­rear-view cameras

Number of units

—

—

—

2,323

Introduction rate

—

—

—

5.2%

Automatic vehicles

25.6%

Number of units

22,582 23,742 27,687 29,370

Introduction rate

52.9%

55.3%

63.3%

Conventional verticalangle 70–100°

66.1%

Conventional horizontal angle 117°

170°
130°

For details related to safety and security, please see ourcorporate website.
https://www.yamato-hd.co.jp/english/csr/society/safety/

Creation of Solid Relationships with Business Partners
The Yamato Group operates its businesses with the support ofnumerous business partners and is promoting supply chain
management, recognizing that co-existence and co-prosperity
with business partners are vital for achieving sustainable growth.
In recent years, in addition to changes to the external environment such as decreases in Japan’s working population andrising energy prices, workstyle reform has become a serious
issue for drivers in the entire logistics industry following theapplication of a cap on overtime work to vehicle operation from
April 2024.
In light of these issues, the Yamato Group clarified its policy topromote fair, equitable, and honest business transactions withpartners through the Yamato Group Responsible Procurement
Policy in 2021 and the Declaration of Partnership Building(Yamato Transport) in March 2023. The Partnership Promotion
Office established at Yamato Transport is taking the lead on providing continuous employee training for proper business transactions, holding regular discussions with partners, and supportingtransportation partners based on the 2024 problem.
Furthermore, we are working to build partnerships by promoting
improvement activities through regular surveys of our partners
and will continue to contribute to realizing a sustainable society
by enhancing added value across the entire supply chain.

1

Provision of Monitoring Services that
Utilize IoT Lightbulbs and Our
Nationwide Network

Recently, the aging population and increasing burden of labor shortages for local governments and welfare-related businesses havebecome issues in monitoring older people who live alone and we
needed to create a new monitoring system. Kuroneko Monitoring
Service: HelloLight Visitation Plan is a monitoring service provided by
Yamato Transport that utilizes our nationwide network with close
relations to local communities and can be used by simply replacing
household lightbulbs with IoT lightbulbs. Following the launch of thisservice, we have promoted its introduction to bodies including local
governments and real-estate businesses not only for use by individual
customers with elderly family members but also to be utilized as gifts
sent in return for furusato nozei (hometown tax donations).

2

Initiatives that Support Shopping
Environments in Collaboration with
Satudora Holdings

In July 2023, Yamato Transport Co., Ltd. formed a basic partnershipagreement with Satudora Holdings Co., Ltd. to realize a sustainable
society in Hokkaido. There have been concerns about the serious
social issues of the falling birth rate and aging and shrinking population in Hokkaido and the fragility of logistics due to factors such as
heavy snow, particularly in some areas. Leveraging both of ourstrengths, we will contribute to providing a fulfilling shopping environment for local residents by working together to pick up parcels from
Satudora stores and deliver products bought at stores to customers’
homes. We will also utilize Yamato Transport’s transportation anddelivery network to deliver products to stores in an even more effective and stable manner and sell Satudora products within Yamato
Transport sales offices and mobile sales vehicles.

3

Kuroneko Monitoring Service: HelloLight Visitation Plan service flow

Mobile sales vehicles

Inside of vehicles

Collaboration with Local Governments to Resolve Furusato Nozei Issues

The number of furusato nozei donors has been increasing annually since its creation in 2008, with the nationwide donation
amount reaching a record ¥965.4 billion. Gifts sent in return to donors have been linked to spreading a region’s appeal and sustainably growing local industries. Meanwhile, challenges have also arisen, such as complication of operations for local governments, increase in outsourcing costs, and the burden of shipping operations for businesses providing these gifts. Yamato
Transport is working to resolve such issues through collaboration with local governments by utilizing the local community connections and diverse management resources we have built up to date.
Working together with Nakatsu, Oita, we are supporting the resolution of operational issues by helping local businesses participate in providing gifts, in addition to support for streamlining operations related to furusato nozei, such as management ofspecial sites, payments, and understanding the shipping capacity of gifts.
We also collaborated with local partner companies in Kamo, Shizuoka, and commenced initiatives to comprehensively support businesses that provide gifts, from gift promotion to shipping and delivery, with the aims of communicating the appeal of
local products and sustainably growing local industries.

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